Federal Market Outlook

MSC Industry Day

Bill Gormley

May 25th & 27th, 2010

2

Overview

• Federal Market

• Schedule Tips

• MSC Auburn Snapshot

• MSC BD Opportunities

• Strategic Takeaways

Federal Market

Federal Market

• Fiscal year selling – October 1 to September 30• Largest buyer of services & products in the world• 4.5 million full time employees • Offices all over the world• FY2010 budget $756.4B (Addressable obligations) • $545.6 billion in other direct obligations• FY2011 budget $720.1B (Addressable obligations)• $599.9 billion in other direct obligations

4

GFY 2009 (47% addr)

GFY 2010 (58% addr)

GFY 2011 (55% addr)

GFY 2012 (56% addr)

GFY 2013 (56% addr)

GFY 2014 (56% addr)

CAGR GFY

10-11

CAGR GFY

10-14

Contractor-addressable obligations $715.2B $756.4B $720.1B $698.5B $709.0B $727.4B -4.8% -1.0%Other direct obligations $797.8B $545.6B $599.9B $545.5B $556.0B $571.6B 9.9% 1.2%

$0B

$200B

$400B

$600B

$800B

$1,000B

$1,200B

$1,400B

$1,600B

Fede

ral O

blig

ation

s (Sp

endi

ng)

Federal Addressable Market

Source: WMG analysis of GFY2011 President’s Budget, based on net contractor addressability and future outlays; does not include investments, loans, interest, or grants

The new equilibrium is

subtle, but real

$100B drop in OCO$200B drop

in ARRA

5

GFY 2009

GFY 2010

GFY 2011

GFY 2012

GFY 2013

GFY 2014

CAGR GFY 10-

11

CAGR GFY 10-

14

Prof services (incl R&D) $123.3B $129.6B $109.8B -15.2%Other white collar services $114.9B $116.2B $123.3B 6.1%Blue collar O&M services $93.4B $95.8B $106.2B 10.9%Medical services $22.4B $28.3B $29.6B 4.7%Telecomm $11.7B $14.5B $15.1B 4.3%Consumable products $145.0B $169.8B $156.6B -7.8%Investment products $162.5B $160.3B $146.5B -8.6%Real Property $42.0B $42.0B $33.0B -21.5%Totals $715.2B $756.4B $720.1B $698.5B $709.0B $727.4B -4.8% -1.0%

$0B

$100B

$200B

$300B

$400B

$500B

$600B

$700B

$800B

Cont

ract

or-a

ddre

ssab

le s

pend

ing

Federal Addressable Market

Source: WMG analysis of GFY2011 President’s Budget, based on net contractor addressability6

Schedule Tips

Schedule Tips

Atlanta 40+Baltimore 40+Boston 30+Chicago 60+

Cleveland 20+Dallas 20+Denver 20+Detroit 20+

Honolulu 20+Houston 20+

Kansas City 20+Los Angeles 50+Minneapolis 20+

New York City 60+Norfolk area 20+

Oakland 20+Oklahoma City 20+

Philadelphia 50+Pittsburgh 20+St Louis 20+

SLC/Ogden 20+San Antonio 30+San Diego 30+

San Francisco 20+Seattle 20+

Washington, DC 330+

There

are 26 cities

in the U.S.

with more than

20,000 Federal Employees

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Schedule Tips

• Research Pays Off• Goal…identify agency prospects that buy/need

what you sell• Resources

Agency websites Government market focused periodicals Market intelligence portals Trade shows Agency Industry Days

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Schedule Tips

• Agencies, in general, are risk averse when it comes to new vendors/solutions. The best strategy for winning government business is to prepare your case. List of user references Agency users (Federal, State or Local) Awards or certifications received Project overviews that can detail reduced costs,

increased value or validate efficiencies

10

MSC - Auburn Snapshot

MSC Schedules

Total MSC Schedules $ales FY09

Schedule FY05 FY06 FY07 FY08 FY09

Growth from Previous

Year

874 $3,099,178,356 $3,493,207,862 $3,835,955,800 $4,276,135,028 $4,578,638,816 7%

871 $2,340,409,251 $2,728,884,158 $2,822,056,139 $2,774,294,764 $2,946,654,659 6%

874 V $449,649,884 $593,534,975 $648,179,147 $736,751,314 $876,942,514 19%

CORP $1,013,115,062 $963,106,000 $880,395,686 $929,440,347 $856,394,205 -8%

899 $380,471,726 $358,419,414 $338,483,883 $376,953,107 $380,042,962 1%

738 II $123,421,942 $145,078,595 $145,309,801 $109,047,575 $126,601,754 16%

Total $7,406,246,221 $8,282,231,004 $8,670,380,456 $9,202,622,135 $9,765,274,910 6.11%

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MOBIS SIN Sales Trend FY09

SIN SIN Description FY07 FY08 FY09Growth from

Previous Year

874 1 Consulting Services $2,940,132,871 $3,247,924,917 $3,313,727,821 2.03%

874 2 Facilitation Services $94,973,226 $95,601,401 $103,278,004 8.03%

874 3 Survey Services $112,469,158 $119,542,148 $176,497,894 47.64%

874 4

Training Services: Instructor Led Training, Web Based Training and Education Courses,

Course Development and Test Administration

$89,262,866 $63,488,146 $105,637,229 66.39%

874 5 Ancillary Supplies and/or Services $8,858,820 $6,037,355 $11,268,622 86.65%

874 6 Acquisition Management Support $38,748,711 $44,808,429 $55,680,407 24.26%

874 7 Program and Project Management $318,849,351 $396,309,823 $551,136,396 39.07%

874 8 DAU and FAI Certified DAWIA and FAC

Acquisition Workforce Training for GS-1102 and non-1102 Personnel

n/a n/a $1,649,362 n/a

874 9 Off-the-Shelf and Customizable Print, Audio,

and Visual Instructional Training Devicesn/a n/a $19,115,504 n/a

874 99 New Services $2,753,868 $992,185 $1,512,416 52.43%

27 100 Teaching Machines/Devices $67,127,126 $76,470,652 $70,115,599 -8.31%

27 200 Prepared Printed Instructional Material $2,055,820 $3,702,186 $2,957,927 -20.10%

27 300 Prepared Audio & Visual Instructional Material,

Multi-Media Program Kits$14,520,794 $19,431,917 $18,568,478 -4.44%

27 400 Instructor Led Training $111,487,996 $131,592,402 $82,878,513 -37.02%

27 500 Course Development and Test Administration $28,063,778 $53,512,159 $58,646,297 9.59%

27 600 Acquisition Training for 1102's $4,194,848 $4,822,946 $5,968,347 23.75%

Grand Total $3,833,499,233 $4,264,236,666 $4,578,638,816  +7.37%

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MOBIS SIN $ales Trend FY09

Source: SSQ and WMG Analysis

Consulting Services$3,313,727,821

72.37%

Facil itation Services$103,278,004

2.26%

Survey Services$176,497,894

3.85%Training Services

$105,637,2292%

Ancil lary Supplies and/or Services

$11,268,6220.25%

Acquisition Management Support

$55,680,4071.22%

Program and Project Management$551,136,396

12.04%

DAU/FAIand FAC Acquisition Workforce Training

$1,649,3620.04%

OTS & Customizable Print, A/VInstructional Training

Devices$19,115,504

1%

New Services$1,512,416

0.03%

Other SINS$239,135,161

5.22%

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PES SIN $ales Trend FY09

SIN SIN Description FY07 FY08 FY09Growth from

Previous Year

871 1 Strategic Planning for Technology

Programs/Activities$732,762,926 $741,591,517 $738,155,468 -0.46%

871 2 Concept Development and requirements

Analysis$272,162,586 $277,091,889 $238,799,389 -13.82%

871 3 System Design, Engineering and Integration $804,011,868 $904,897,075 $1,059,326,593 17.07%

871 4 Test and Evaluation $260,013,714 $233,188,952 $187,294,670 -19.68%

871 5 Integrated Logistics Support $239,471,451 $190,578,838 $219,763,469 15.31%

871 6 Acquisition and Life Cycle Management $407,640,865 $418,260,175 $481,138,427 15.03%

871 7 Construction Management   $15,544 $22,176,643 142570.12%

871 99 Introduction to New Products/Services $0 $0 $0 0.00%

Grand Total $2,716,063,410 $2,765,623,990 $2,946,654,659  +6.55%

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Strategic Planning for Technology

Programs/Activities$738,155,468

25%

Concept Development and requirements

Analysis$238,799,389

8%

System Design, Engineering and

Integration$1,059,326,593

36%

Test and Evaluation$187,294,670

6%

Integrated Logistics Support

$219,763,4698%

Acquisition and Life Cycle Management

$481,138,42716%

Construction Management$22,176,643

1%

Introduction to New Products/Services

$00%

PES SIN $ales Trend FY09

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LOGWORLD SIN $ales Trend FY09

SIN SIN Description FY07 FY08 FY09Growth from

Previous Year

874 501 Supply and Value Change

Management$278,829,981 $347,349,180 $479,752,319 38.12%

874 502 Acquisition Logistics $37,941,139 $14,495,656 $20,285 -99.86%

874 503 Distribution and Transportation

Logistics Services$92,890,967 $122,990,813 $122,886,177 -0.09%

874 504 Deployment Logistics Services $50,443,212 $48,791,337 $46,090,341 -5.54%

874 505 Logistics Training Services $9,572,353 $13,718,224 $14,563,069 6.16%

874 506 Ancillary Supplies and/or

Services$344,200 $487,381 $511,559 4.96%

874 507 Operations & Maintenance

Logistics Management and Support Services

$176,190,856 $184,947,381 $213,118,764 15.23%

874 597 Ancillary Repair and Alterations n/a n/a $0 n/a

874 599 Introduction of New Services $884,812 $0 $0 0.00%

Grand Total $647,097,520 $732,779,972 $876,942,514  +19.67%

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LOGWORLD SIN $ales Trend FY09

Supply and Value Change Management

$479,752,31954.71%

Acquisition Logistics$20,285

0.00%

Distribution and Trnsportation Logistics

Services$122,886,177

14.01%

Deployment Logistics Services

$46,090,3415.26%

Logistics Training Services$14,563,069

1.66%

Ancillary Supplies and/or Services

$511,5590.06%

Operations & Maintenance Logistics Management and

Support Services$213,118,764

24.30%

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Environmental SIN $ales Trend FY09

SIN SIN Description FY07 FY08 FY09Growth from

Previous Year

899 1 Environmental Consulting $196,487,859 $201,608,415 $205,997,761 2.18%

899 2* Environmental Compliance Services $38,610,065 $42,912,879 $36,564,739 -14.79%

899 3 Environmental Training Services $4,293,431 $5,512,982 $8,740,454 58.54%

899 4* Waste Management Services and

Software$20,833,460 $13,894,499 $14,026,390 0.95%

899 5 Materials and Waste Recycling and

Disposal Services$1,966,190 $4,618,683 $3,890,425 -15.77%

899 6* Remote Advisory Services $1,675,569 $2,320,443 $3,268,118 40.84%

899 7 Geographic Information (GIS)

Services$18,653,432 $22,932,476 $26,990,598 17.70%

899 8 Remediation and Reclamation

Services$48,390,711 $81,825,478 $80,211,005 -1.97%

899 99 New Technology $9,072,800 $579,870 $353,472 -39.04%

Grand Total $339,983,517 $376,205,725 $380,042,962 +1.02% 

           

*SINS 899-2, 899-4 and 899-6 are reserved for deletion. No offers will be accepted for these SINS. Any services previously sited under these SINS has been consolidated with any or all of the remaining SINS under this Schedule.

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Environmental SIN $ales Trend FY09

Environmental Consulting$205,997,761

54.20%

Environmental Compliance Services

$36,564,7399.62%

Environmental Training Services

$8,740,4542.30%

Waste Management Services and Software$14,026,390

3.69%

Materials and Waste Recycling and Disposal

Services$3,890,425

1.02%

Remote Advisory Services$3,268,118

0.86%

Geographic Information (GIS) Services$26,990,598

7.10%

Remediation and Reclamation Services

$80,211,00521.11%

New Technology$353,472

0.09%

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Language SIN $ales Trend FY09

SIN SIN Description FY07 FY08 FY09Growth from

Previous Year

382 1 Translation Services $42,667,398 $33,273,261 $38,496,711 15.70%

382 2 Interpretation Services $97,307,579 $70,690,918 $77,676,448 9.88%

382 3 Training and Education Materials $4,577,328 $5,405,007 $9,142,932 69.16%

382 4 Comprehensive Linguistic Analytical

Support Services (CLASS) n/a n/a $1,151,229 n/a

382 5 Services for the Visual and Hearing

Impairedn/a n/a $984 n/a

382 99 New Item Technology $124,788 $114,118 $133,450 16.94%

Grand Total $144,677,093 $109,483,304 $126,601,754  +15.64%

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Language SIN $ales Trend FY09

Source: SSQ and WMG Analysis

22

Translation Services$38,496,711

30.41%

Interpretation Services$77,676,448

61.35%

Training and Education Materials$9,142,932

7.22%

Comprehensive Linguistic Analytical Support Services

$1,151,2291%

New Item Technology$133,450

0.11%

MSC BD Opportunities

GSA Schedule Sales

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Overall Schedules Market Potential

2009 Percentage Growth

Auburn 5%

Crystal City 11%

Ft. Worth 3%

Kansas City .5%

New York 1%

Philadelphia 1%

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MSC Schedule Market Potential

2009 Percentage Growth

874- MOBIS 7%

871 - PES 6%

874V LOGWORLD 19%

899-ENVIRONMENTAL SERVICES 1%

738 II - LANGUAGE 16%

CORP -8%

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$60B GSASchedule Potential,

41%

$85B MSCPotential,

59%

2011 Budget Schedule Market Potential

• Operations and Maintenance – NAVY (874 – BD Opportunity) Blue collar services, supplies and materials for contingency operations Net addressability for FY11 - $26.4M

• National Oceanic and Atmospheric Administration – DOC (899 – BD Opportunity)

White collar services to expand the National Environmental Satellite, Data, and Information Service and other NOAA programs

Net addressability for FY11 - $1.1M

• Flood Control Systems – USACE (899 – BD Opportunity) Equipment purchases and facilities improvements Net addressability for FY11 - $1.1B

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2011 Budget Schedule Market Potential

• National Nuclear Security Administration – DOE (899 - Opportunity) Blue collar services to support reduction of surplus fissile

materials in U.S. and Russia Net addressability for FY11 - $2.7M

• Flood Control and Coastal Emergencies – USACE (899 – BD Opportunity) Equipment purchases for restoring flood control measures;

facilities improvements in flood control and hurricane systems Net addressability for FY11 - $1.1M

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2010 Opportunities

PRE-RFP• The US Army Intelligence and Security Command (INSCOM) Directorate of • Contracting (DOC) has a requirement for Department of Defense Language Interpretation and Translation

Enterprises (DLITE) • Solicitation Number: W911W410R0011 Estimated Value: $15M • Responses Due: 7/1/2010 (est.) POC: Sung Park (703-428-4674)

PRE-RFP • The Government intends to negotiate an indefinite quantity/indefinite delivery type contract for supply chain

management services and material utilizing a third party logistics (3PL) provider in support of Fleet and Industrial Supply

• Solicitation Number: N0018910R0012 Estimated Value: Unavailable• Responses Due: 7/29/2010 (est) POC: Marlene Chambley (757-443-1362)

PRE-RFP • The National Institutes of Health (NIH), NIH Business System (NBS) is seeking project management

organization services to improve the NBS Program Management Office (PMO) accountability, transparency and compliance with DHHS/NIH Enterprise Performance Life Cycle (EPLC) requirements applicable for all NIH Business System initiatives.

• Solicitation Number: NLM10115RSH Estimated Value: Unavailable• Responses Due: 6/28/10 (est.) POC: Raymond Hawkins (301-496-6546 )

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2010 Opportunities

PRE-RFP

• The US Department of Housing and Urban Development, Office of Public and Indian Housing has a requirement for project management of a program administrator of the Disaster Housing Assistance Program (DHAP) Program.  Services will be provided through an Indefinite Delivery, Indefinite Quantity (IDIQ) contract. Enterprises (DLITE)

• Solicitation Number: A2010PB0018 Estimated Value: $8M

• Responses Due: 8/13/2010 (est.) POC: Anna Loyd 202-402-7426

PRE-RFP

• The National Institute of Standards and Technology (NIST) will be acquiring Contractor Support services in connection with Health Information Technology (HIT) Project Management, Outreach Methods and Material and Program and Project Support.

• Solicitation Number: SB134110RQ0039 Estimated Value: Unavailable

• Responses Due: 7/31/2010 (est.) POC: Peter Staples (301-975-6219)

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2011 Opportunities

EARLY STAGE • Requirement to provide interpretation of discussions and translation of documents to the U.S. Environmental

Protection Agency (USEPA) for management and staff during meeting between the USEPA personnel and international personnel

Solicitation Number: RFQDC1000138 Estimated Value: Unavailable Responses Due: Undetermined POC: Kelly Easterling (202) 564-8421

EARLY STAGE • The Department of Health and Human Services may have a requirement for a multi-media outreach campaign

to Spanish-speaking persons with Medicare and their health care influencers. Solicitation Number: Spanishadcampaign100232 Estimated Value: 2.62M Responses Due: Unavailable POC: Jason Forrester: (410) 786-

9088

EARLY STAGE • The Department of Veteran Affairs has a requirement for Supply (Value) Chain Transformation Program.

Solicitation Number: VA79810RI0068 Estimated Value: Unavailable Responses Due: Unavailable POC: Russel Grabill (301) 619-3011

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2011 Opportunities

EARLY STAGE • The Department of Interior (DOI), US Geological Survey (USGS), might have a need for a contractor to provide

project management support for the geospatial line of business E-Gov initiative. • Solicitation Number: Unavailable Estimated Value: $5M • Responses Due: Unavailable POC: Melissa Gill: (703) 648-7368

EARLY STAGE • The National Science Foundation (NSF) has an ongoing requirement for Arctic Research Support and Logistics

Services.  The contractor will work with NSF, principal investigators (researchers), other state and federal agencies, international organizations, and organizations that own/manage logistics resources and facilities in the Arctic, to develop operational plans and provide support services to research projects.

• Solicitation Number: Unavailable Estimated Value: $93.3M• Responses Due: 10/31/2011 POC: Mary Rouse (703) 292-4588

EARLY STAGE • Warner Robins Air Logistics Center (WR-ALC) has a requirement for Global Positioning System (GPS)

Engineering Services.  This contractual effort will provide engineering services, logistics services, and program management to the Joint Service Support 407 SCMS/GULB team.

• Solicitation Number: KB09GPSENGMKTRSH Estimated Value: Unavailable• Responses Due: Unavailable POC: Ken Burke (478)926-5871

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Strategic Takeaways

Strategic Takeaways

• The market is still wide open for MSC Schedules.

• GSA/Industry customer training.

• Acquisition cycle times are a “game changer” to increase market share.

34

35

Thank You!Bill Gormley, President & CEO

The Washington Management Group & Fedsourcesbgormley@washmg.com

202.833.1120www.washmg.com

www.fedsources.com

Questions?