DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Microsoft Enterprise Agreement
SUMMARY:
This action will authorize the City to utilize the State of Texas Department of Information Resources (DIR) contract DIR-TSO-4092 with SHI Government Solutions, Inc. in an amount not to exceed $14,728,471.88 for the Microsoft Enterprise Agreement for a term of five years. Funding in the amount of $2,546,432.25 for year one of this contract is available from the FY 2019 Information Technology Services Department Adopted Operating Budget.
BACKGROUND INFORMATION:
Microsoft Windows and Microsoft Office are integral to the City’s critical Public Safety and business systems including CAD, SAP, 311, BuildSA, HIPAA and Credit Card systems. The City’s current license position with Microsoft is stand-alone licenses that are limited to older versions of Microsoft desktop and server products. Some of these versions are ten years old and will be phasing out of support starting next year. In order for the City to stay compliant with state and federal requirements and remain compatible with newer business processes and applications, the City must update its licensing for Microsoft products.
ITSD has negotiated pricing with Microsoft through a third-party reseller, SHI Government Solutions, Inc., for two agreements to support all of the Microsoft products utilized by the City. The Microsoft Enterprise Agreement (EA) for State and Local Governments covers end user and desktop products including Windows 10 for desktops and laptops as well as Microsoft Office. The Server Cloud Enrollment (SCE) is a separate agreement tailored for datacenter products such as Microsoft Server and Microsoft SQL Server for data bases. ITSD has secured reduced pricing for a five year term with annual payments. In order to secure these savings, ITSD executed the agreement citing City Council Ordinance 2017-11-09-0893. The action approved through this ordinance will authorize the full cost of the contract at $14,728,471.88.
The EA and SCE subscriptions will provide licensing and support for all Microsoft products currently used by the City. Also included are extended use rights including installation of Microsoft Office on mobile devices as well as cloud services. Most City employees will also have access to limited home use rights for Microsoft Office as well as access to Office 365 via a web application. By maintaining current licenses, the City can ensure systems are up to date with the latest secure versions and updates to maintain compliance.
ISSUE:
The action to be approved by this ordinance will provide ITSD with authorization to utilize the State of Texas Department of Information Resources (DIR) contract DIR-TSO-4092 in an amount of up to $14,728,471.88 for the Microsoft Enterprise Agreement. Pursuant to Texas Government Code § 2054.0565, the City is not required to conduct its own competitive bidding when utilizing contracts procured by Texas Department of Information Resources.
The Small Business Economic Development Advocacy (SBEDA) Ordinance requirements were waived due to the lack of small, minority, and/or women businesses available to provide these goods and services.
This contract is an exception to the Local preference Program.
The Veteran-Owned Small Business Preference Program Ordinance does not apply to non-professional service contracts, so no preference was applied to this contract.
ALTERNATIVES:
Should this action not be approved, ITSD would have to rely on the City Council Ordinance 2017-11-09-0893 and encumber $14,728,471.88 of the previously approved $42,813,792.00.
FISCAL IMPACT:
Funds are not encumbered by this ordinance. All expenditures will be in accordance with the City’s adopted capital and operating budgets approved by City Council. The expenditures approved by this ordinance are not to exceed $14,728,471.88, and future fiscal years are subject to annual appropriation by City Council.
|
FY 2019 |
FY 2020 |
FY 2021 |
FY 2022 |
FY 2023 |
Total |
|
$ 2,546,432.25 |
$ 2,943,962.63 |
$ 3,073,693.94 |
$ 3,082,191.53 |
$ 3,082,191.53 |
$ 14,728,471.88 |
RECOMMENDATION:
Staff recommends approval of this action to authorize the City to utilize the State of Texas Department of Information Resources (DIR) contract DIR-TSO-4092 with SHI Government Solutions, Inc. in an amount not to exceed $14,728,471.88 for the Microsoft Enterprise Agreement for a term of five years.
This contract was procured by means of cooperative purchasing and a Contracts Disclosure Form is not required