SUBJECT/RECOMMENDATION:
Title
Approve a contract increase and updated License and Services Agreements with Microsoft, Inc. of Redmond WA, for a five-year term, from July 1, 2018 through June 30, 2023, in the not to exceed amount of $1,875,000 for cloud office management software licensing, software maintenance, cloud storage, cloud services and professional services, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City migrated to Microsoft’s Office 365 Cloud Services in 2017. The terms of the Microsoft services and licensing model requires that the City annually review and update license subscriptions and adjust subscription fees for each user accessing the MS Office Suite products via the internet.
The contract modifications include the consolidation of two separate license agreements, an agreement approved in 2015 for 65 user licenses used for testing and demonstration of service provision, and the enterprise agreement approved in 2017 for migration of approximately 1,650 user accounts across the City. The consolidation of software licensing and maintenance and contingency expenses will result in a contract increase of $292,885.10 over the five-year term (prior authorization for $1,670,000 for a six-year term from 2017-2023 was provided in June 2017).
This increase will cover all software licensing and maintenance for the contract term and includes a 5% contingency of approximately $92,524.35 for any additional licensing, changes in user licensing requirements, and professional services in support, maintenance and system administration over the same term.
Vendor selection is in accordance with Sec. 2.564(1) (d), Code of Ordinances - Other government bid. The City will piggyback on the State of Florida Contract # 43230000-15-02 Licensing Solutions Providers (LSP) of Microsoft Software and Services. Microsoft licensing is offered from SHI International, Inc., of Summerset, NJ, via State Contract # 43230000-15-02, and is the State’s sole provider of Microsoft Licensing.
APPROPRIATION CODE AND AMOUNT:
Funds are budgeted and available in the Information Technology Admin Services budget for the current support year (June 2018-June 2019). Funds for the out years, 2019-2020 and 2020-2021, will also be included and charged back to user department in the respective Information Technology Admin Services budgets.