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  • Route1 Awarded Supply Arrangement With Canadian Government

1st March 2012

Route1 Awarded Supply Arrangement With Canadian Government

route1Security and identity management company Route1 Inc. has announced that it has been awarded a Supply Arrangement by the Government of Canada to facilitate the government’s procurement of required software products including but not limited to security, identity management and remote access solutions. The Company has also provided a review and update on the status of its business development initiatives and priorities since 2010.

As of January 1, 2012, the Canadian government put in place a new, comprehensive approach for the procurement of all software products – Software and Shared Systems and Procurement Directorate’s New Method of Supply, the Software Licensing Supply Arrangement (SLSA). SLSA officially replaced the software departmental individual standing offers.

The SLSA is a two-phased procurement process. The first phase consists of suppliers qualifying through the SLSA Request for Supply Arrangement permanently posted on GETS. Once qualified, as Route1 now is, suppliers list their products and ceiling prices in the publicly available SLSA Catalogue. Based on the information in the SLSA Catalogue, the second phase consists of the approved Public Works and Government Services Canada service providers competing their requirements via request for quotations, simplified bid solicitations or through sole sourcing.

Route1’s Supply Arrangement number is EN578-100808/071/EE. The period of the Supply Arrangement is February 29, 2012 through to and including December 31, 2014. There is no minimum or maximum dollar amount attached to the Supply Arrangement.

“We know the government of Canada requires much stronger identity management and data security tools, and that their leadership is becoming much more aware of the data security risk,” said Tony Busseri, Chief Executive Officer of Route1. “Through our local sales partners and business advisors we have been able to increase awareness of our approach to this comprehensive and serious issue, and are very pleased to have been awarded the Supply Agreement, which we believe will lead to additional business.”

The Company’s business development objectives through calendar 2010 and mid 2011 were focused on (a) stabilizing and improving core client relationships, and (b) opening up new client opportunities within the U.S. government including the U.S. Navy, and the U.S. Fish and Wildlife Service.

Since mid 2011, Route1 has been aggressively working to complete the following business development initiatives:

  • Leverage the success of core U.S. government accounts to initiate pilots with related U.S. government departments and agencies,
  • Focus on non-government enterprise verticals that highly value data security,
  • Establish a larger presence with Canadian based governmental entities, and
  • In a broader sense, create brand awareness around the principles of “protecting the fortress” – data should stay behind enterprise firewalls, and “authenticate the person, not the device”.

“We believe we have made material progress in building a deep, diversified pipeline that will result in significant paid, active user growth. Account diversification is not only within the U.S. government’s civilian and defense departments and agencies, but also through the growth of enterprise clients in the banking, investment management, insurance and healthcare verticals,” said Brian Brunetti, President of Route1.

The chart below provides an overview of Route1’s new account and organic growth business development pipeline as of today’s date. The chart’s contents are dynamic and change frequently. The Company will provide quarterly updates in a similar format.

Demo Pilot Roll Out
Phase 1 Phase 2 Phase 3
Client <10 <50 <500 <2.5k <10k Opp.
Client Description No. Type users users users users users Sizing
Government U.S. 1 Defense X 700k (a)
2 Defense X (a)
3 Defense X (a)
4 Defense X 3k
5 Defense X 26K
6 Civilian X 70k (b)
7 Civilian X (b)
8 Civilian X (b)
9 Civilian X 20k
10 Civilian X 2k
11 Civilian X 109k
12 Defense X 2k
Government Other 13 Civilian X 2k
14 Civilian X 70k
15 Civilian X 1k
16 Civilian X 10k
Enterprise 17 Healthcare X 10K
Enterprise 18 Banking X 5k
19 Banking X 1K
20 Investment X 2k
Enterprise 21 Other X 1k
22 Other X 1k
23 Other X 100k
Total 13 8 1 1 0 Approx. 1 M

The table above does not include business development opportunities that have not started a demonstration or have completed a demonstration but as of today’s date not yet initiated a pilot.

It should be noted that the U.S. government is a large and profoundly complex organization with more than five million employees, contractors and military personnel across its legislative, judicial and executive branches, encompassing more than 300 agencies, sub agencies and branches.

“Although full procurement within certain civilian agencies and branches of defense does take a good deal of time given the complexity of the organization, we are extremely excited about Route1’s continued penetration with the U.S. government and look forward to increase organic growth throughout 2012 and beyond,” added Mr. Brunetti.

This entry was posted on Thursday, March 1st, 2012 at 10:36 am and is filed under Business News, Government, National News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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