SUBJECT/RECOMMENDATION:
Title
Approve a purchase order with SHI International Corp. of Somerset, NJ, for Microsoft software, telephony and security licensing, software maintenance, and cloud storage services for a three-year term beginning July 1, 2026 through June 30, 2029, in the not-to-exceed amount of $4,127,548.17 pursuant to Clearwater Code of Ordinances Section 2.563(1)(c), piggyback, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City provides office productivity software and related technology services to employees across more than 75 service locations. Under Microsoft’s licensing model, the City is required to annually review and adjust license subscriptions and associated subscription fees based on user counts and operational needs.
This agreement includes Microsoft software licensing, telephony and security licensing, software maintenance, and cloud usage fees for the three-year contract term. The cloud usage fees are variable and are estimated at approximately $150,000 annually, primarily related to security logging, data transfer activities, changes in user licensing requirements, and professional support services.
The City has standardized Microsoft Office solutions, and SHI International Corp. is an authorized reseller of Microsoft products and services. Authorization is requested to purchase this solution through competitively procured Sourcewell Contract No. 121923-SHI, which is valid through February 27, 2028, with three additional one-year renewal options available.
APPROPRIATION CODE AND AMOUNT:
Funds are budgeted and available in the Information Technology Admin Services budget for the current support year, FY26. The Information Technology department is funded by revenues from the Administrative Services Fund, an internal service fund of the city responsible for the administration of city-wide technology services. Funds for the out-years, FY27- FY29, will also be requested by Information Technology as part of the annual budgeting process and included in their services charge back to user departments in the respective Information Technology Admin Services budget line items.
STRATEGIC PRIORITY:
This purchase will support all the objectives of a High-Performance Government, as well as Superior Public Service.
