DATE: December 17, 2024
TO: Mayor and City Council
FROM: Acting CIO/Director of Information Technology
SUBJECT: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Cooperative Procurement Contract with Dell Technologies for Microsoft Software, Subscriptions, and Services for a Three-Year Contract in an Amount Not-to-Exceed $412,341.90 annually, and 5% contingency of $61,851.28 for a Total Contract Amount of $1,298,876.98
RECOMMENDATION
That Council adopts the attached resolution (Attachment II) authorizing the City Manager to negotiate and execute a three-year cooperative procurement contract between the City and Dell Technologies for the acquisition of Microsoft Software, Subscriptions and Services for an amount not to exceed $1,298,876.98, which includes a 5% contingency of $61,851.28, for a term of three years, effective March 1, 2025 through February 28, 2028 under the terms of the contract.
SUMMARY
The City’s current Microsoft Enterprise License Agreement (ELA) for Microsoft Enterprise Software Licenses will expire on February 28, 2025. This agreement includes licensing for Windows 11, Office 365, servers, other Microsoft applications, and professional services that are critical to the daily operations of the city. Staff is in negotiations to continue these services and is requesting authorization to fund the contract at the conclusion of negotiations.
BACKGROUND
The City’s core software infrastructure is based on Microsoft desktop, server, collaboration, and development products. The execution of this contract will ensure the continuity of current services provided by Microsoft, primarily the annual licenses necessary for Office 365 that provides the city-wide email services, SQL servers, SharePoint, a cloud infrastructure that helps the City share and organizes content and applications, and critical applications, such as Teams, Word, Excel and PowerPoint.
The City is receiving the best pricing available through the City of Riverside Enterprise Agreement (EA) ITARC-00934 (8084445), which was the best fit for the City. Dell Technologies has extended the pricing model and terms of the Riverside EA. As a result, staff is requesting authorization to negotiate and execute a new agreement with Dell Technologies under the pricing and terms of the Riverside EA. The Riverside EA is a cooperative purchasing program that was renegotiated.
DISCUSSION
The City’s core software infrastructure is based on Microsoft desktop, server, collaboration, and development products. The ELA positions the City to benefit from the next generation of Microsoft platform products seamlessly through ownership of Software Assurance. Specifically, this agreement ensures that the City has access to the latest version of software for government and the technical support that is available. The current agreement term expires on February 28, 2025. The term of this agreement is three years and the price of these licenses remains constant throughout the term of the agreement which assists in financial planning of future years. The maximum term available for the ELA is three years.
These agreements have saved the City money through volume purchasing and greatly simplified licensing by requiring a single transaction to acquire licenses for the City. This agreement includes software assurance which will provide the City with the legal right to continue to receive the current version of Microsoft products used by the City, including the MS Office suite of products.
ECONOMIC IMPACT
There is no economic impact resulting from this action.
FISCAL IMPACT
Payments will be distributed over a three-year period in equal installments. Funding for this initiative has been allocated from the General Fund, aligning with the original budget projections based on the prior contract amount. As a result, no additional funding is required.
Payments
Year 1
$412,341.90
Year 2
$412,341.90
Year 3
$412,341.90
Total
$1,237,025.70
STRATEGIC ROADMAP
This agenda item is a routine operational item and does not relate to any of the six priorities outlined in the Council’s Strategic Roadmap.
SUSTAINABILITY FEATURES
Upgrades to server software licensing allow for consolidation of servers and increased storage capacity to storage area networks and cloud storage with products such as Microsoft’s cloud storage products OneDrive and SharePoint. These moves increase the City’s goal of reducing energy consumption within City buildings and maintaining an environmentally sound information technology infrastructure.
PUBLIC CONTACT
Not applicable.
NEXT STEPS
Following approval, staff will execute an agreement with Dell Technologies, to procure and provide the Microsoft licensing recommended for the City.
Prepared by: Maritza Vargas, Information Technology Manager Recommended by: Lisa Bolger, Acting CIO / IT Director Approved by:
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Dustin Claussen, Interim City Manager