CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 3 Section Name: {{section.name}} Account Number: 10-2131 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Information Technology Department
MEETING DATE: January 16, 2024
SUBJECT:
Microsoft Enterprise Agreement – Agreement
RECOMMENDATION:
Adopt a Resolution to approve an alternative purchasing procedure and award an agreement with CDW-Government, LLC for a three-year renewal of the City's Microsoft Enterprise Agreement for software licensing, cloud hosting, upgrades, and technical support in the amount of $765,737; and authorize the Director of Information Technology to execute the agreement in substantially the form presented.
BACKGROUND:
The City established its Enterprise Agreement (EA) relationship with Microsoft in March of 2007 and last renewed it in 2020. Since that time, the City has benefited from entitlements to regular software upgrades of Office versions, Windows desktop operating systems, and server products including Exchange, SharePoint, and MS SQL Server.
In November 2014, the City converted its conventional desktop software licenses to Microsoft Office 365, a subscription- based suite of remotely-hosted software and services. At the end of each year of the agreement, the City will adjust its annual payment in consideration of any licenses added or removed during the year.
Office 365 enables employees to work with data and applications from virtually anywhere and on virtually any device. It affords the city the unique benefit of seamless data recovery and will assist in continuity of government in the event of a regional disaster. Through Microsoft Teams, the city also enjoys the ability to interact with external partners and the public using familiar, commonly available instant messaging and video conferencing. Microsoft sells these services at several cost and feature tiers and staff recommend renewal at the lowest tier, G3. In the current market, there are no viable competitors to Microsoft 365.
San Mateo Municipal Code section 3.60.070(h)(3) provides that the City may use any purchasing procedures approved by the City Council if the City Council makes a finding concurrent with the award of the contract that the procedures are in the best interest of the City. Microsoft licensing throughout the State of California is based on pre-negotiated prices from the County of Riverside’s Microsoft Enterprise License Agreement (MELA)# PSA-0001522 RFQ# RIVCO-2020-RFQ-0000048 that has a term from November 1, 2019 through October 31, 2024, and leverages the cooperative buying power of state and local government agencies and assures participating agencies the lowest-cost for Microsoft products. CDW Government LLC (CDW-G) is a provider of information technology services to business, government, education and healthcare customers and is a participant, and authorized reseller of Microsoft licenses pursuant to the MELA. Entering into an agreement with CDW-G on the same terms and conditions of the MELA is in the best interest of the City because it ensures the best pricing for Microsoft products and services, avoiding costs normally associated with the development of highly technical bid specifications, while assuring that competitive prices were received.
CITY OF SAN MATEO
Based on the above, staff recommends approving an agreement with CDW-Government, LLC for a three-year renewal of the City's Microsoft Enterprise Agreement for software licensing, cloud hosting, upgrades, and technical support in the amount of $765,737.
BUDGET IMPACT:
No impact to the budgeting process is expected from this action. Monies have been allocated in the City IT Department’s operational budget (Computer Software Subscriptions).
ENVIRONMENTAL DETERMINATION:
This agreement is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - Enterprise Agreement Terms & Conditions
Att 3 - Sales Quote, City of San Mateo EA Renewal
Att 4 – Software Cooperative Agreement, California Department of General Services
STAFF CONTACT
Steve Engle, Systems and Network Manager
[email protected]
(650) 522-7062