The Stimulus Plan. Our Perspective. Al Gordon Chief Executive Officer, NSI.

Transcription

1 The Stimulus Plan Our Perspective Al Gordon Chief Executive Officer, NSI

2 Who we are What we do: Leverage Opportunity in State & Local NSI is a nationally recognized consulting firm providing companies with the strategy and insight to increase revenue, create new markets and protect market share within the state and local government market. Established in 1996, NSI has generated over $6.5 billion in revenue for clients representing early stage to Fortune 100 companies wanting to do business with state and local governments. 2

3 Stimulus Overview: Our Perspective Private Sector Plays an Enormous Role Under the Obama Administration s Stimulus Plan, 90 percent of the jobs to be created from the investment are targeted for the private sector. In its broad sense, the Stimulus Plan specifies that: 3

4 Stimulus Overview: The Stimulus Plan focuses on 8 broad streams Highlighted streams are key funding areas. 4 Source: Recovery.gov

5 Stimulus Overview: The Highlights Implemented by wide range of federal, state and local government entities Accelerated timetable-money available until September 30, 2010 Preference to projects that can be started quickly with goal to use at least 50% of funds on projects that can be started within 120 days of enactment of legislation (Feb. 17 th ) Distribution of funds through new grant programs, programs parallel to existing funding mechanisms, new regulations Incredible transparency and scrutiny-dedicated to oversight Significant reporting requirements Some Buy American provisions 5

6 Tax Relief for companies: $51 Billion Highlights 6

7 Key Funding Area Subcategory Infrastructure Highlights 7

8 Key Funding Area Subcategory Protecting the Vulnerable Highlights 8

9 Key Funding Area Subcategory Health Care and Medicaid Highlights 9

10 Key Funding Area Subcategory Education Highlights 10

11 Key Funding Area Subcategory Energy Highlights 11

12 Helping companies understand how to leverage the stimulus plan effectively is KEY. Companies must: Be well-organized Align strategy to spending and priorities Be agile and able to move quickly Have established internal process to meet reporting requirements 12

13 Understanding the Requirements It is imperative companies understand the following principles: 13

14 Buy America Provision No funds can be used for construction, alteration, maintenance or repair of a public building or public work unless all of iron, steel and manufactured goods used in project are produced in the US Public works is broad-roads, bridges, clean energy projects, broadband But, does not apply if: Inconsistent with public interest Not enough iron, steel or manufactured goods to meet need Will increase cost by more than 25% by only using US iron, steel or manufactured goods Also-must be consistent with US obligations under international agreements Bottom line-likely to be grey areas! 14

15 So what s next? Strategy development, oversight and transparency will be critical Must develop strategies/steps to access the dollars for this unique and historic opportunity 12 recommendations to developing a strategy to capture stimulus dollars 15

16 12 Recommendations 16

17 Recommendation 1 Track and follow the dollars Determine the pots of money relevant for your company Learn how these pots of money will be distributed and by whom at the federal and state levels Determine your geographic footprint-national, regional, selected states Conduct extensive research to create list of relevant proposed and funded projects 17

18 Recommendation 2 Use government affairs resources to ensure relevant projects are funded Once relevant projects are identified, create plan to influence funding decisions at a state level Plan should focus on macro issues (funding for priority projects) and micro issues (win the project) 18

19 Recommendation 3 Prioritize your customers Spending will be moving quickly prioritization is critical Focus your efforts minimize waste and maximize resources 19

20 Recommendation 4 Build Relationships Once you decide where to focus, learn about the particular targets and their key decision makers Fast research and information-gathering are essential Develop relationships with all appropriate decision makers at each entrée point in State or Local Governments-this includes executive and legislative branches 20

21 Recommendation 5 Learn about the potential customers expected procurement process and timeline The projects will move quickly you need to know how quickly and through what process and procedures 21

22 Recommendation 6 Find your niche Are you approaching the Government as a prime contractor, subcontractor or vendor? Do you need to assemble a team of partners? Would the addition of a local partner help your chances of winning the project? Identify the best route it may not necessarily be the easiest one 22

23 Recommendation 7 Validate your product, service or technology Government does not usually like to take risks with transparency around the Stimulus Plan, this is heightened Find ways to distinguish your product or service Case studies and references are always useful Best practices 23

24 Recommendation 8 Develop and execute a strategic plan 24 A detailed and focused plan is necessary for success (accessing stimulus dollars) The plan should focus on both short and long term goals (leveraging stimulus activity into a broader relationship) Execution of the plan, with necessary alterations, is as important as the development of the plan

25 Recommendation 9 Tailor marketing materials for the government This will be a fast moving market, so leave-behind materials and collateral will be more important than ever 25

26 Recommendation 10 Talk to the Right People at the Right Time Transparency is going to be critical in the disbursement of the funds Follow the procurement rules and process carefully 26

27 Recommendation 11 Be aware of the Government opportunities and goals for disadvantaged businesses Some preferences for: Small businesses Minority-owned businesses Women-owned businesses 27

28 Recommendation 12 Ensure transparency, reliability and accountability in your reporting and financial systems Get your firm s ERP, financial and procurement/contracting systems ready. Work with your CFO and budget officer to ensure stimulus spending can be tracked apart from normal budget. Ensure performance management can align spending and performance reporting to different stakeholders. Maximize BI tools for monitoring and detecting improper payments or fraud Examine grants management systems because significant stimulus funds will be made available via federal and block grants. 28

29 Challenges and Opportunities Strict reporting requirements Oversight of any project delays Media attention to specific projects and overall value Scrutiny of cost overruns Enhanced public understanding of needs Chance for media attention for wellmanaged projects Highlights unmet needs Significant growth/revenue opportunities 29

30 NSI CONTACTS Al Gordon CEO (202) Robert Cotton Vice President, Business Development (202) Colleen Gerald National Network and Channels Manager (202)