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Selling to the State & Winning Grant Dollars. Presenters: Peggy Lane, BlueStar Jeff Webster, INPUT. Agenda. BlueStar Overview Government Program at BlueStar INPUT Government 101: Selling to the State and Winning Grant Dollars. BlueStar Overview.
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Selling to the State & Winning Grant Dollars • Presenters: • Peggy Lane, BlueStar • Jeff Webster, INPUT
Agenda • BlueStar Overview • Government Program at BlueStar • INPUT Government 101: Selling to the State and Winning Grant Dollars
BlueStar Overview • BlueStar is a “dba” for United Radio, Inc, a Kentucky Corporation • Corporate Headquarters - Hebron, KY • Founded 1929, Privately held • 19 Offices serving the Americas • 300 Plus Employees • Primary Niche Markets - Retail/Hospitality/POS - AIDC/Mobility/RFID • Average Compound Growth of 28 % per annum since 1992
BlueStar’s Services • FUSION – End-User Demand Generation Campaigns • Dedicated one-to-one sales rep for each customer • Online catalog and ordering at http://www.bluestoreinc.com • Same-day shipping • Online order verification and tracking • Integration Services at BlueStar Warehouses - Hardware & peripheral configuration and testing - Loading/flashing of all software - One master carton repacking - “Open Me First” documents • Unlimited Pre- & Post-Sale Support in English, French, and Spanish via Internet or 1-800 support lines
Government at BlueStar • Monthly Government ISV Webinars • Qualified and End-User validated ISVs showcase and demonstrate their solution to no less than 75 partner at each webinar • Verticals include e-citation & code enforcement, K-12 and higher Ed, Security Screening and Mobile Data Access, First Responder Accountability and Inspections and Maintenance • Dedicated Federal ,S&L Business Development Resources • Contract Vehicle Consulting and Bid Support/Lookup • Bid Opportunities for all Federal, State and Local • Partner Coaching on best solution/matchmaking • Government and Grants 101 Webinar series • Solutions Demo Pool • Large Demo Pool available through BlueStar • Motorola has a 70% Demo Program through BlueStar for its partners • Marketing Support • Demand Gen webinars • Just signed contract with INPUT to efficiently search opportunities • Sales Books created detailing solutions offerings for qualified partners
Leasing Options Through BlueStar • Our flexible and convenient leasing/financing solutions are designed to give our reseller’s end customers the ability to stay current with the most innovative technology solutions with no upfront costs. • A variety of custom leases can be structured for our resellers including but not limited to: • 0% Financing leases, with $0 down-Fair Market Value Purchase option* • $1.00 Buy Out Leases or 10% Purchase Options • Leases with Seasonal Financing • Deferred Payment Leases • Operating and Capital Lease Structures *Subject to credit, documentation and equipment approvals. 30% soft cost allowance*
Visit BlueStar at the Motorola Partner Expo! Motorola Partner Channel Expo Las Vegas, NV Aria Resort March 7 - 9
Government 101: Selling to the State and Winning Grant Dollars Jeff Webster Senior Analyst INPUT October 23, 2014
Agenda • State and Local Budget Process • Governor’s Priorities • Impact of the Federal Stimulus • State and Local Procurement Process • Selling to the Government • State and Local Grant Process • Best Practices and Tips for Applying/Using Grants • Grant Forecast • Market conclusions
Typical Budget Timeline Executive Branch Legislative Branch Budget guidelines sent to agencies Agency requests submitted to governor Agency requests reviewed by budget office Governor finalizes budget recommendations Governor submits budget to legislature Legislature holds agency budget hearings Legislature adopts budget
Total State General Fund Deficits Closed, FY 2009 National average = 8.2% Source: Center for Budget and Policy Priorities
Vertical Popularity Percentage, 2007-09 Source: INPUT
Highlights of ARRA Impact on S&L IT • $205 billion in funding with allowable (not guaranteed) S&L technology spending • INPUT estimate: $5.7 billion in ARRA-driven S&L IT spending • FY09: $0.9 billion • FY10: $2.25 billion • FY11: $1.25 billion • FY12 and later: $1.3 billion • Funding for technology, science and research, infrastructure improvements, education, energy, healthcare, and training • Mostly distributed via long-standing S&L grant programs
2008 S&L Spending vs. ARRA of 2009 “ARRA” = American Recovery & Reinvestment Act The stimulus represents about 10%-15% of one year of state and local spending, and its impact is spread out over 2 to 5 years, depending on the particular funding stream within the stimulus. Source: U.S. Bureau of Economic Analysis, Recovery.gov, and INPUT
Estimated ARRA Spending by INPUT Vertical Source: CBO, INPUT
Procurement Cycle Develop Business Case Get Funding Analyze Requirements Develop and Advertise Solicitation “Cone of Silence” Evaluate Proposals Negotiate Contract Announce Award Deliver Solution
Purchasing Process • Every State has Its Own Procurement Code • “How to do business with the State” document or website • Primary goals of procurement are to achieve best value through a fair and open competition. • Know your Customer • Familiar with past contracts • Budget cycle • Study procurement code • Open records • Register
Procurement of Technology Equipment and Services WA VT ME MT ND NH MN OR MA WI ID SD NY RI WY MI CT IA PA NV NE OH NJ IN IL UT CO WV DE VA KS MO KY CA MD NC TN AZ OK NM AR SC GA MS AL AK TX LA FL HI IT Division Agencies Central Purchasing
Preference Programs • Set Asides • Defined by each state • Some purchasing “set-aside” for special types of businesses • Bidder Preferences • Gives weight in bid evaluations to vendors with in-state presence SB = Small Business MBE = Minority Business Enterprise WBE = Woman-owned Business Enterprise DBE = Disadvantaged Business Enterprise HUB = Historically Underutilized Business
Focus and Replicate • You Can’t Be All Things to All Governments • Over 87,000 governments • Some responsible for specialized services • Over 700 programs per state • Generally less for localities • State & Local Fortunes Built a Few Million at a Time • Look for project wins you can replicate from government to government • Federally funded • Functions all governments perform
Grant Classifications & Sources of Information How does the federal grant process work? • Grant Classifications • Direct • Pass-Through • Further Classifications • Competitive • Formula • Sources of Grant Information • INPUT’s Grants Database • Grants.gov • Federal Register • Monthly Treasury Statements for Grants Funding • Catalog of Federal Domestic Assistance
Best Practices • Do not judge a grant by its title • Your project is important • look for a variety of funding sources • Keep focused • Goal of project • Outcome of project • “Multi” projects • Grant management • Be realistic, clear, and specific
Tips for applying • Get support from local officials • Read over previously awarded applications • Address goals • Short term • Long term • Place the most important information at the top of the application • Editing mistakes can be deadly • MEET DEADLINES!
Federal Grants to State & Local Government The Obama Administration projects that spending on federal grants to state and local governments will decrease to $638b in FY2014 from $652b in FY2010. Spending will spike and peak in FY2010 due to stimulus funding. Source: INPUT and Budget of the U.S. Government, FY 2010
Grants to State & Local Governments by Functional Area Source: INPUT Budget of the U.S. Government, FY 2010
S&L Market Conclusions • The business cycle is long and strenuous • Resources are stretched thin; agencies need help acquiring outside funds • The market is diverse and fragmented with a variety of different needs • The S&L market lags behind the Federal market when it comes to technology
Questions? Peggy Lane 800-354-9776 x3313 plane@bluestarinc.com Tom Goldsmith 800-354-9776 x4217 tgoldsmith@bluestarinc.com Kelly Luken 800-354-9776 x3293 kluken@bluestarinc.com Matt McKinzie 800-354-9776 x3242 mmckinzie@bluestarinc.com