M.
MS Office 365 Software Licensing Subscription Upgrade – First Amendment Recommendation
:
Authorize
the
City
Manager
to
execute
Agreement
No.
2021-178A
based upon CompuWave Quote 95693 and sign change orders as needed.
Camarillo City Council
AGENDA REPORT
Date: February 22, 2023
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: John Thomas, Assistant Administrative Services Director Subject: MS Office 365 Software Licensing Subscription Upgrade – First Amendment
BACKGROUND
On July 22, 2022, the Council authorized a three-year agreement (Agreement No. 2022- 178 beginning July 1, 2022, through June 30, 2025) for the purchase of Microsoft Volume Licensing through CompuWave in the amount of $137,392.50 plus a 7% contingency of $9,617 for a total amount of $147,009.50.
The Volume Licensing Agreement allows the City to work with authorized resellers to purchase products or services, at fixed costs, through the applicable initial or renewal Enrollment term. The products and services include commonly used applications such as Word, Excel, PowerPoint, Access, Project, and Outlook. The licensing cost is based upon Microsoft’s annual subscription cost. The Microsoft Volume License agreement requires True-Up orders to account for changes in product usage and added users during the enrollment period and an annual True-Up Order or update statement must still be submitted during the annual order period.
DISCUSSION
Recently, Information Systems Division increased the number of users requiring full Microsoft licensed accounts to include all field staff who now have access to their own laptop devices along with associated emails, the City Council with official city email accounts, several hired interns requiring accounts, and 10 spare accounts to accommodate future recruitments. In total the number of user accounts has increased this year from 178 to 208.
Also, as part of the city’s ongoing effort to increase cybersecurity, staff recommends upgrading the Microsoft Volume License agreement from a M365 G3 level to M365 G5 that will enable security features for all users including Multi-Factor Authentication, Microsoft’s Intune used to protect organizational data, end-user access management,
First Amendment - MS Office 365 Software Licensing Subscription Upgrade February 22, 2023
1 1
6 2
and support for users working from remote locations. This level upgrade cannot be handled under the existing True-Up order process and requires an amendment to the original agreement.
CompuWave’s quote utilizes contract pricing discounts under the County of Ventura Contract #8926 allowing the upgrading of licenses from M365 G3 to M365 G5 Unified subscription and includes the increased number of users for the remaining term of the agreement. For FY 2022/2023, the cost increase is $17,406 and payment is due with the order.
The table below shows the annual cost per Fiscal Year and includes contingency if needed for annual True-Up Orders.
CompuWave FY 2022/23 FY 2023/24 FY 2024/2025 Total
Annual Quote (original) $45,797.50 $45,797.50 $45,797.50 $137,392.50 Upgrade to G5 Subscription $17,406.00 $34,416.00 $34,416.00 $86,238.00 Total Annual Cost $63,203.50 $80,213.50 $80,213.50 $223,630.50 Contingency 7% (annual) $4,425.00 $5,615.00 $5,615.00 $15,655.00 Total with contingency
(not to exceed) $239,285.50
First Amendment to Agreement 2022-178 will authorize upgrading Microsoft Volume Licensing from M365 G3 to M365 G5 subscription services.
FISCAL IMPACT
Funds for Microsoft Office 365 Software Licensing Subscription upgrade are included in the Fiscal Year 2022/23 Information Systems Fund budget, Administration Account No. 530-5330-453.32-01. Future years will be budgeted accordingly.
RECOMMENDATION
Authorize the City Manager to execute Agreement No. 2021-178A based upon CompuWave Quote 95693 and sign change orders as needed.
ATTACHMENTS
CompuWave Quote 95693
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None
CC Agreement No. 2022-178A