City Council Agenda Report
Meeting Date: October 1, 2024
From: Daniel Calleros, Interim City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Senior Administrative Assistant Subject
Additional Funds for Contract No. 20230086 with Insight Public Sector (Insight) Recommendation
A. Approve $27,000 in additional funds for Contract No. 20230086 with Insight for the purchase of additional Microsoft Office 365 cloud-based software application licenses; and B. Approve additional funds with Insight in the amount of $73,000 for additional purchases of software and equipment as may be necessary from this vendor through September 30, 2025.
Background
On December 20, 2022, Council approved Contract No. 20230086 with Insight in the amount of $426,149.64 for a three-year period for the purchase of Microsoft (MS) Licenses. Contract No. 20230086 is the only currently active IT contract for all MS volume licenses that serve the City's entire computer infrastructure, including project management, telecommunications, applications, and phone and field support. Over the past two years, IT has gradually transitioned City staff from MS Office to MS Office 365 and is now requesting additional funding to cover the cost of MS Office 365 licenses procured through the duration of Contract No. 20230086.
The Office 365 system is a subscription-based software platform that allows City staff to store files in a secure cloud-based environment, which then allows multiple users to access data simultaneously from various devices like mobile phones, tablets, desktop computers, and laptops. The Office 365 system has enhanced collaboration with applications like Exchange Online, Microsoft Teams, and MS Sharepoint, and incorporates all essential applications such as Word, Excel, and Outlook which are operational online without the need to install software on individual machines. Additionally, all necessary software upgrades are performed automatically by Microsoft.
Over the past two years, the IT Division has purchased over 200 MS Office 365 licenses as necessary to transition City staff to this software. Once a license is purchased, it is automatically linked to Contract No. 20230086, and billing is prorated from the date of the purchase to the October 1st anniversary date of the contract. On October 1st, the City is invoiced for all MS licenses by Insight, which presents all licenses along with any additional subscription-based purchases that were processed since the previous anniversary date. Accordingly, the total for current invoices due is $196,115.93. Due to the purchase of MS Office 365 licenses after the anniversary date, Contract No. 20230086 has available funds in the amount of $169,838.58, and additional funds are needed to cover the invoices due. The attached quotes with the highlighted amounts reflect the $26,277.35 the IT Division is seeking in order to make payment to Insight.
Pursuant to Section 3.32.030 (A) of the Vernon Municipal Code (VMC), City Council approval is required for all contracts with a total value over the lifetime of the contract of up to $100,000.
VMC Section 3.32.030 (B) also requires Council approval, if, in the 12 months preceding the effective date of a proposed new, renewed, or otherwise amended contract, the City has paid or awarded the proposed vendor more than $100,000 pursuant to contract(s) with the vendor.
Since this threshold would be surpassed with the additional funds requested, staff is also requesting City Council approve additional funds for other necessary upcoming purchases from Insight. As a re-seller of various software and equipment utilized by IT that consistently provides competitive pricing and/or offers government pricing, it is very likely that IT may need to make future purchases from Insight. Therefore, the IT Division is requesting approval of additional funds with Insight in the amount of $25,000 for any additional volume licenses for City personnel that may be necessary and an additional $48,000 for potential equipment or software purchases from Insight as needed. IT anticipates that $73,000 should suffice to cover such purchases of any other necessary equipment or software purchases from this vendor through the remaining year of the contract with Insight. Any such purchases made in this manner would be procured in compliance with the City’s established purchasing processes.
Fiscal Impact
The total fiscal impact of funds requested is $100,000. The amount needed for MS Office licenses is $27,000 (Quotes 227525994 and 227526163) for year three of Contract No. 20230086, and $73,000 in additional funds for added volume licenses with Insight for City personnel and other purchases as may be necessary from this vendor. Sufficient funds for the amounts requested are available in the General Fund, Information Technology Department, Repair and Maintenance - IT Account No. 011-010-110-529110 for the current fiscal year and will be budgeted in subsequent year.
Attachments
1. Insight Quotation #0227525994
2. Insight Quotation #0227526163