Shubnum provides innovative services supported by technical tools to provide outstanding returns on investment of the taxpayer dollar, meeting socioeconomic goals and adding an economic stimulus to the economy. Please review samples of the acquisition savings and collateral savings noted in the section on 'Results' and 'Return on Investment' in the narrative for 'Overview'. In addition please review the section on 'Benefits' in the overview for VMOBIS™.

The products and services, noted below, may be acquired independently or in a combined cluster.

A. Strategic Value Management™

Over the years, Shubnum has managed and implemented a variety of acquisitions that ranged from simple to complex and large acquisition transactions. The Strategic Value Management™ support included:

• Acquisition Strategy Planning
• Coordination and assistance with technical and front-end documentation
• Integrating 'Collaborative Contracting' with separate and/or combined buyers from one or more agencies, procuring baskets of similar goods and/or services
• Conducting large, small and micro transactions of goods, works and services under optimized contracts for sellers and buyers
• Conducting separate and/or combination of types of goods, works and services in one or more baskets
• Conducting separate and/or combination of methods of procuring goods, works and services in one or more baskets in one or more transactions under one or more contracts
• Conducting concurrent bundling and unbundling of contracts to derive benefits of both, while complying with all FAR's, OMB Circulars, laws and Executive Orders.

Such services, though complex, offer substantial benefits in creating Best Value to the end-user.

B. Competitive Procurement™

Competitive Procurement™ is optimized to be set-up and conducted rapidly over a large market in rapidly changing market conditions. The products and processes comply with the FAR's and DoD 5000. They provide for full and open competition. Such competitive procurement includes but is not limited to automated competitive techniques for selection and implementation of

sealed bids, open bids, quotes, proposals, competitively negotiated open-ended contracts and direct purchases. The products and processes apply to individual procurement of a product, commodity, works or service. The product and processes provide documentation and accountability.

Even a small procurement need not be sole-sourced because of unknown resources, unavailable resources or lack of time to procure via competitive techniques.

The process includes competitive procurement from within the suppliers with scheduled contracts such as contractors with MAS or GWACS.

C. Central Procurement™

Central Procurement™ is optimized and value engineered for procuring centrally. This may consist of small and large routine purchases on a periodic basis, with supporting documentation and accountability. Such central procurement includes competitive procurement with automated competitive techniques for selection and implementation of sealed bids, open bids, quotes, proposals, competitively negotiated open-ended contracts and direct purchases. The products and processes apply to a collection of procurements of product/s, commodity/ies, work/s or service/s. The set-up and repeat period for a new central procurement may be as short as a few minutes to a longer daily period. Documentation and accountability is provided for each individual procurement.

D. Targeted Resourcing™

Resourcing is conducted in targeted vertical markets with an emphasis on meeting a diverse socioeconomic participation in specific market conditions with supporting documentation and accountability. The techniques include the use of the client's listed resources.

E. Soliciting Targeted Resources™

The targeted resources are marketed to, with the assistance to the resource to participate in the acquisition. Such marketing includes documentation and accountability. The techniques include the use of the client's listed resources.

F. Central Acquisition™

Central Acquisition™ is a much broader and intense application of VMOBIS™. It includes B, C, D and E above.

Activities — This includes participating in activities prior to and after purchasing and procurement such as planning, budgeting, and contract management.

Participants - This includes the facilitating of the participants in one or more series and parallel relationships of the supply chain (sellers) and demand chain (buyers) at multiple tiers. The acquisition may include several agencies facilitating Inter Service Support Agreements (ISSA).

Contents — This includes the facilitation of the contents (subject matter) at multiple tiers in diverse vertical markets.

Techniques — This includes one or more techniques of consummating the transaction for different contents and phases of the acquisition. It includes competitive procurement with automated competitive techniques for selection and implementation of sealed bids, open bids, quotes, proposals, competitively negotiated open-ended contracts and direct purchases.

Disaggregate Contracts Consolidation™ DCC™

This is a unique system of concurrently deriving the benefits of contract bundling and contract unbundling. The system is value managed to consolidate appropriate contracts but then to disaggregate the consolidation so as to provide multiple contracts suitable for multiple resources of small business. Value is managed, with documentation and accountability; to achieve both objectives. The number of disaggregated contracts let out, generally exceed the number of original contracts prior to the consolidation. However, the completed transactions maintain the integrity of the original contracts in content, form, function and quality.

The system complies with and promulgates the current laws, FAR's and Executive Orders.

G. Spend Management

Shubnum provides follow-up support to organize, account-for and make transparent detail analysis of procurement activities. Such Spend Management includes ABC Activity Based Costing systems to assist in acquisition management functions

H. Acquisition Transparency and Oversight

I. Capital Efficacy™

Shubnum provides assistance in improving the Capital Efficacy ™ of an organization.

Capital Efficacy is an integrated process to create capital, use capital, monitor the flow of capital and provide an oversight of capital. Capital efficacy is also a measure. It measures the effect of capital when created, used, monitored and overseen in an integrated and seamless continuum. Shubnum™ uses Capital Efficacy™ in conducting business, trade and commerce. Capital Efficacy™ uses specific tools such as those described in the sections A, B, C, D, E, F, G and H above.

Outreach

Several new small business participants participated in the above acquisition, including a two-person women owned business who received her first successful contract with State government.

Economic Stimulus, Jobs Creation

Shubnum's new services and supporting products provide work to more individuals and small businesses domestically and provides them opportunities to reach their targeted markets worldwide.

Price Structure

These services offer outstanding monetary and socioeconomic returns on investment. They may be procured individually or in combination of 'Options' noted below.

Option 1
An initial assessment based on a firm fixed price of Price Schedule 3, allows both parties to evaluate the scope and duration of the assignment for each of the product categories A through H. Thereafter, Option 2, 3 or 4 may be selected.

Option 2
Following the use of Option 1, for product category A and product category F, there are no additional charges. Shubnum is paid further, based on Schedule 4 (as an incentive share of the cost savings), only if it creates value in the form of such cost savings to the client.

Option 3
The product categories B, C, D, E, G and H are designed to be used on a recurrent basis, by the government; individually or in combination, after exercising Option 1, receiving training based on Schedule 2 and paying a recurrent use license fee per use based on Schedule 5, for whichever product category is used.

Option 4
Product Categories A, B, C, D and E are all consolidated in Product Category F which is offered based on Option 2.

In addition, this option includes product category G and product category H based on Schedule 5 (Recurrent use rates) if Options 1 and Option 2 are procured.

All of the product categories are very competitively priced. Please refer to the subsection titled 'Results' and 'Investment Return Analysis' in the 'overview' section of VMOBIS™ for a sample of savings and outstanding returns on investment.

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