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Grow Your Local Economy With GovTide Technology

ByAdvanced Internet Technologies, Inc.

http://www.AIT.com

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AIT, Inc. Overview• Privately-held Fayetteville, North Carolina based firm started in 1995• Specializes in Internet-based products and services, web hosting, domain

registration and IT solutions• Service-disabled veteran-owned business• One of the largest web hosting firms in the world

– 200,000 active domain businesses for clients– 137 countries around the globe

• Data Center located in Fayetteville, NC • In-house design and development staff,

not outsourced to any other location or company

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What GovTide IS NOT!

ProcurementWaste & Abuse

Missing Federal and State Contracts

Poor online Payment E-Commerce Systems

No meaningful ReportsData is everywhere

Missed Revenue Opportunities

No Asset Management

Confusing Customer Service

Failure to Recruit & Retain Businesses

Problems•Unnecessary Duplication•Wasted Resources•Lacks Interoperability•Little Transparency•Confuses Users•Misses Opportunities•Ineffective Reporting

The Proverbial Puzzle Palace of Government

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So What is GovTide?

1. E-Procurement transparency, savings, local 3. Federal and State

Contract Feeds Targeted to Community

6. E-Commerce to Process Transactions

9. Option to Create Local Social Network

8. Custom Analytics &Intelligence Reports

5. Advertising ModuleTo Self-Fund or Increase

Revenue Inflows

2. Asset Management once Assets are Procured

7. Provides Superb Customer Service

Experience

4. Recruit, Retain & Invest in NC Business

Economic Development

Engine

A Fully Integrated, Hosted, Economic Development System w/Centralized Data To

Implement Effective Public Policy & Programs.

In short, GovTide is a Government –to-Business-to- Employment Portal (GBE).

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Working TogetherThe number of governments in the U.S. in 2012 was 89,004.

1 Federal, 50 State, and 88,953 Local governments.

Federal government spending was 35% of GDP in 2010.

State and local government spending was 20% of the U.S. GDP in 2010.

The federal, state and local governments in the U.S. spend approximately 55% of the GDP.

So what’s the bottom line? Businesses and Government must do Business Together

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First Implementation of GovTideMatchForce.org• Run by the State of NC via NCMBC• Started in 2004• State of North Carolina has spent

over $4M in enhancements, but yielded $3.5B in Federal contracts

• Goal: Keep Federal contract dollars within the state through NC Businesses.

• Over 50,000 users

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“GovTide has been absolutely essential to engaging nearly 20,000 businesses in the federal market, connecting them daily to federal opportunities and to helping them win over 1,650 contracts – worth at least $3.5 billion. These contracts have generated over $275 million in State tax revenue, generated a 28:1 return on investment in the NCMBC, expanded our tax base statewide and generated better quality of life for all citizens in North Carolina. GovTide is a winner.” Scott Dorney, Director North Carolina Military Business Center

Testimonials

“It’s working in North Carolina and it can work in any other state. GovTide is a smart use of technology for economic expansion. What sets GovTide apart is the ability it gives small business, the heart of this nation’s economic structure, to beat faster and stronger. For the unfamiliar, the federal contracting process can be daunting. For small business, it can mean a significant investment of time with little return. Business can’t succeed and grow without a chance. GovTide gives them that chance.”

Representative Robin Hayes (R) NC District 8 1999-2009United States House of Representatives

“I believe so strongly in the GovTide technology that it was a critical component of an economic development bill I sponsored last year. The mission is to help our state’s small and mid-sized businesses compete for and win federal contracts. GovTide is going to prove a tremendous means of creating new jobs and expanding the tax based for communities across North Carolina.”

Senator Anthony E. Rand (D)Cumberland, Senate District 24 2001-2009North Carolina General Assembly

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Can you answer these?• Which vendors are within the community? Outside of the

community?• What ones are small business? Service-disabled veteran owned

business? Minority-owned business? Women-owned business?• How much savings did we gain from using an online system?• What is our strongest industry?• What is our weakest industry and where are we missing federal,

and state contracts?• Are there synergies or partnerships in your community that can be

used to benefit the community? (e.g. 8a partner with Remington)

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Government Features & BenefitsSolicitation Posting (Request for Proposal and Reverse Auction)Benefit: Transparency, Competition, and Savings of 9 to 11%*

Custom Analytics & Intelligence ReportsBenefit: Powerful analytics to make smart economic development decisions

Already successful with MatchForce.org for State of NCBenefit: $3.5B* in federal contracting dollars directly to NC businesses

4th Patented PPC Advertising Module IncludedBenefit: Help promote local businesses, and potentially self fund

*VentureStats & GovTide installs

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User Levels / DashboardsLocal GovernmentAdmin User

•View Industry Strengths and Weaknesses & other Analytics

•Search for opportunities

•Create requirements for purchasing

•Local Procurement Online

•Federal & State Contract Feeds

•Federal Grant Feeds

•Revenue Share Back to Community

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Business User

•Find Local, State and Federal Contracts

•Team with other Businesses

•Post Jobs and Search for Employees

User Levels / Dashboards

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Purchasing Agent /Contracting Officer

•Post RFP Bids

•Post Reverse Auction Bids

•Search for Businesses

•Receive Matches to Bids

User Levels / Dashboards

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Individual / Job Seeker

•Post Resume

•Search for Jobs

•Match to Job Postings

User Levels / Dashboards

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Smart Economic DevelopmentSmart Economic Development Recognizes Every

Community is Unique– Robust Economy = Sustained Growth, Industry Diversity &

Constant Innovation– Local Development = Vertical + Horizontal leveraging

existing strengths. Constant evolving, relevant business data

– Job Creation = Retention, Attraction & Adaptation through Training & Education

Grassroots Economic Development From the Bottom Up

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Growth, Economic Diversity, and SWOTInternal Contracts (Outflow) Year 1 Year 2

Local Business (Retain) 25% 35%

Outside Businesses (Recruit) 75% 65%

Growing a Diverse and Prospering Economy

Economically Stagnant

Economically Diverse

Year 3 Year 4 Year 5

45% 55% 60%

55% 45% 40%

Economic Development Arm:“Drive more businesses within these industries to move to the City.”

Benefits:• Increase in tax base• Decrease in contracts given to outside businesses

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Economic Impact of Local Purchases

For every dollar spent on local businesses…The local economy gets $.73 back.

For every dollar spent on non-local businesses…The local economy gets only $.38 back.Less than ½ the original investment.

Source: Robert Ware, Business Awareness

52%Advantage for local business

NC Senate Bill 232 – Local Preference

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Economic Impact Example

Vendor ALocal businessBids $125 for a

contract for 10 rakes

Vendor BNon-Local businessBids $100 for a

contract for 10 rakes

Vendor A should win due to being local, and having a 52% advantage for boosting local economy.

Government issues contract for 10 rakes to be purchased…

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Advertising Revenue Options

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Hire, Train, Deploy VetsIncluded FREE with GovTide:• 2 hour training for vendors/businesses• 2 hour training for government staff, and

management (train the trainer)• 2 hour training for purchasing agents

Veterans hired as Trainers/Account Managers– Constant pipeline of skilled workers (MOS to ACE to Employed)

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Next Steps

Economic Development

Engine

G

B

E

Federal, State and Local Procurement feeds

Business Registration with NAICS and Keywords

Individual resume and job skills; Employment Security Commission

Results

Accurate & Evolving Economic Modeling, Analytics to Support

Smart Policy Decision

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GovTide and AlwaysOn

“AlwaysOn is committed to plugging its network of venture capital and private equity firms looking to fund growth opportunities into the GovTide.com network”Tony Perkins, Founder, CEO & Editor, AlwaysOnFounder, Red Herring

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Hidden Costs of “Software”Competitive Client/Server

Pricing Model

25% ImplementationCustomization & Training

75%Subscription Fee

9%Software Licenses

HIDDEN COSTS

43%

26%

14%

8%

Customization &Implementation

Hardware

IT Personnel

Maintenance & Training

Source: IDC

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Live Demo