DATE: October 9, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Human Resources Department
TITLE: MICROSOFT ENTERPRISE LICENSING AGREEMENT FOR WINDOWS AND OFFICE SOFTWARE
RECOMMENDATION
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Staff recommends that the City Council approve a three-year Microsoft Enterprise Licensing Agreement, in the amount of $1,939,068, for Windows and Office software; approve a Purchase Order to CDW-G for the full amount of that agreement; appropriate $96,356 from the Information Services Reserve Fund; authorize the City Manager to execute the agreement; and authorize the Financial Services Director, or designee, to execute the purchase order.
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BACKGROUND AND ANALYSIS
The City’s Information Technologies (IT) Division is responsible for procuring, deploying and supporting the hardware and software used throughout the City for staff workstations and servers. Microsoft products are used for a variety of solutions including operating systems, productivity software, security software and other compliance and archiving tools. Every three years the City renews its Enterprise Agreement with Microsoft, and staff have the opportunity to adjust licensing levels and types.
Staff have worked diligently to ensure that the City has the proper mix of licensing options available in order to provide the most cost-effective solution. Despite Microsoft being the sole manufacturer of the computer programs that the City uses on a daily basis, IT staff have various options for ensuring the appropriate licensing is procured based on the use case of the individual user. By working with City departments to understand the ways in which users take advantage of various pieces of software available to them, IT staff can group users in tiers for ease of deployment and to reduce costs.
Licensing is provided through the City’s distribution partner, CDW-G. CDW-G responded to a competitive Request for Qualifications (RFQ) from the County of Riverside, and was selected as one of ten eligible Licensing Solution Providers (LSP) for providing Microsoft licensing due to its low mark-up. Staff is leveraging this Master Agreement (No. 8084445,) as a cooperative purchasing vehicle for this procurement.
FISCAL IMPACT
The total cost of the three-year agreement is $1,939,068, which includes a 10% contingency to cover additions to services or to annually adjust the number of licenses. This expense will be charged to the Information Technologies Network Infrastructure account 155162841.5355.0009. Staff is requesting the use of software reserves in the amount of $96,356 to cover the increase over what was previously budgeted for year one costs. Information Services Software Reserve Fund 841.3100.0039 has an available balance of $2,949,295; therefore, sufficient funds are available. Funding for future years will be requested through the normal budget process.
|
Microsoft Enterprise Agreement |
|
CDWG |
|
|
|
FY24-25 Microsoft Year 1 |
$ 646,356 |
|
|
FY25-26 Microsoft Year 2 |
$ 646,356 |
|
|
FY26-27 Microsoft Year 3 |
$ 646,356 |
|
|
Total Purchase Order Amount |
|
$ 1,939,068 |
|
|
|
|
|
Year 1 Cost Appropriation from Reserves |
|
$ 96,356 |
|
Current Reserve Balance |
|
$ 2,949,295 |
|
Reserve Balance After Appropriation |
|
$ 2,852,939 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Chris Freeman, Information Technologies Procurement Analyst
Reviewed by: Rob O’Brien, Deputy City Manager
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Microsoft Agreement