Grow Your Local Economy With GovTide Technology

1. Grow Your Local Economy With GovTide Technology By Advanced Internet Technologies, Inc. http://www.AIT.com

2. 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

3. What GovTide IS NOT! No Asset Management No meaningful Reports Data is everywhere Confusing Customer Service • Problems • Unnecessary Duplication • Wasted Resources • Lacks Interoperability • Little Transparency • Confuses Users • Misses Opportunities • Ineffective Reporting Missing Federal and State Contracts Failure to Recruit & Retain Businesses Procurement Waste & Abuse Poor online Payment E-Commerce Systems Missed Revenue Opportunities The Proverbial Puzzle Palace of Government

4. So What is GovTide? • In short, GovTide is a Government –to-Business-to- Employment Portal (GBE). 1. E-Procurement transparency, savings, local 2. Asset Management once Assets are Procured 3. Federal and State Contract Feeds Targeted to Community 9. Option to Create Local Social Network Economic Development Engine 8. Custom Analytics & Intelligence Reports 4. Business (Recruit & Retain) Building Tax Base 7. Provides Superb Customer Service Experience 5. Advertising Module To Self-Fund or Increase Revenue Inflows 6. E-Commerce to Process Transactions A Fully Integrated, Hosted, Economic Development System w/Centralized Data To Implement Effective Public Policy & Programs.

5. Working Together • The United States GDP in 2011 was approximately $15.9 trillion. • The number of governments in the U.S. in 2012 was89,004. • Federal government spending in the U.S increased from 7% of GDP in 1902 to 35% of GDP in 2010.   • State and local government spending increased to $3.1 trillion in 2010 or 20% of the U.S. GDP. • Local governments derive 75% to 85% of their inflows from sales, property and personal income tax. • 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 * According to U.S. Census Bureau

6. First Implementation of GovTide • MatchForce.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

7. Testimonials • “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 “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 2001-2009 North Carolina General Assembly “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 1999-2009 United States House of Representatives

8. 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? • 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?

9. Government Features & Benefits Solicitation Posting (Request for Proposal and Reverse Auction) Benefit: Transparency, Competition, and Savings of 9 to 11%* • Custom Analytics & Intelligence Reports • Benefit: Powerful analytics to make smart economic development decisions Already successful with MatchForce.org for State of NC Benefit: $3.5B* in federal contracting dollars directly to NC businesses 4th Patented PPC Advertising Module Included • Benefit: Help promote local businesses, and potentially self fund this project *VentureStats & GovTide installs

10. User Levels / Dashboards Local Government Admin 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

11. User Levels / Dashboards Business User • Find Local, State and Federal Contracts • Team with other Businesses • Post Jobs and Search for Employees

12. User Levels / Dashboards Purchasing Agent /Contracting Officer • Post RFP Bids • Post Reverse Auction Bids • Search for Businesses • Receive Matches to Bids

13. User Levels / Dashboards Individual / Job Seeker • Post Resume • Search for Jobs • Match to Job Postings

14. Smart Economic Development Smart 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

15. Growth, Economic Diversity, and SWOT Economically Stagnant Economically Diverse 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 Growing a Diverse and Prospering Economy

16. Economic Impact of Local Purchases 52% Advantage for local business NC Senate Bill 232 – Local Preference 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

17. Economic Impact Example Government issues contract for 10 rakes to be purchased… Vendor A Local business Bids $125 for a contract for 10 rakes Vendor B Non-Local business Bids $100 for a contract for 10 rakes Vendor A should win due to being local, and having a 52% advantage for boosting local economy.

18. Federal Contracts Did you know… • Over 400,000 North Carolina jobs - close to one in 12 - are related to the defense sector, which makes up seven percent of our gross domestic product. • NC got $4 billion in defense contracts in 2011 alone, and in 87 out of our 100 counties, not just counties with big military installations.

19. Hidden Costs of “Software” Competitive Client/Server Pricing Model 75% Subscription Fee 9% Software Licenses Implementation Customization & Training Customization &Implementation 43% 25% 26% Hardware 14% IT Personnel Maintenance & Training 8% HIDDEN COSTS Source: IDC

20. Advertising Revenue Options • Features: • Additional revenue stream for Premium Ads on search results • Outsource to local media company(s) for management • Ads delivered to Business Users and Gov’t Users • Works with Keyword, PPC or CPM models • Rich media interactive advertising • Provides standard and custom reports with GUI

22. FREE Training Included 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

23. Next Steps G Federal, State and Local Procurement feeds Results B Business Registration with NAICS and Keywords Accurate & Evolving Economic Modeling, Analytics to Support Smart Policy Decision Economic Development Engine E Individual resume and job skills; Employment Security Commission

24. Pricing Model No Risk 60 to 90 day FREE trial. There is no risk and no obligation to buy. We stand behind the product, and believe you’ll see the value too. Free Flat Monthly Fee option After the trial period, select one of 3 tiered pricing options that fit your community’s budget. Revenue Share If a community achieves enough transactions, we share the revenue back to the communities.

25. Live Demo