sr-111009-1bCity Council Meeting: Date
Agenda Item: ~~
To: Mayor and City Council
From: Jory Wolf, CIO
Subject: Renewal of Microsoft Enterprise Agreement
Recommended Action
Staff recommends that the City Council:
Authorize the City Manager to negotiate and execute a contract with DELL
MARKETING L.P. for the purchase of Microsoft software licenses, software
license upgrades, and license tracking services over a period of five years in an
amount not to exceed $1,279,422 including applicable sales tax; and
2. Authorize four additional one-year renewal options at an estimated annual
expenditure of $255,885
Executive Summary
The Microsoft Enterprise Agreement (EA) is a comprehensive volume licensing program
designed for enterprise organizations like the City that have standardized on the latest
Microsoft technology. Through the EA program, Microsoft offers substantial cost savings
over standard license pricing based on a five-year agreement. The EA offers the City
simplified license and budget tracking with a single agreement for more control over our
software investment. It also supports better management of the City's overall software
costs through software assurance, which allows the City to upgrade to the latest
versions of Microsoft's products at no additional cost throughout the life of the
agreement. Funds are available in the Information Systems Department budget in the
Information Technology Replacement and Services Fund. Annual funding requirements
will be requested in future budget submittals.
Discussion
On October 31, of 2004 the City entered into a five year agreement with DELL
MARKETING L. P. for our existing EA. The City's desktops and server computers utilize
Microsoft's products as their base operating system. and the Microsoft Office suite is the
most utilized set of applications in the Gity. To keep the City's software infrastructure
intact, staff recommends renewing the EA agreement for an additional five-year term.
Contractor/Consultant Selection
Staff requested proposals from six authorized EA resellers. The City received five
proposals. A selection committee comprised of staff from the Information Systems
Department evaluated the five proposals submitted and found that, DELL MARKETING
L.P. was the most responsive bidder with the lowest price. DELL offered the best price
on the City's most commonly used applications and license tracking service through
Microsoft's Volume Licensing web-based system.
Financial Impacts & Budget Actions
The cost for the software license and services will not exceed $1,279,422 over the next
five years. For FY 2009/10 funds of $255,885 are available in the Information
Technology Replacement and Services Fund at account 055000310.589000: Future
purchase and maintenance costs will be determined by the amounts appropriated by
Council in fiscal years, 2010/11, 2011/12, 2012/13 and 2013/2014. Annual funding
requirements will be requested in each fiscal year's proposed budget and will be subject
to Council review and approval. If the necessary funds for a subsequent fiscal year are
not appropriated by City Council, the agreement will allow for termination of further
services without penalty at the sole discretion of the City.
Prepared by: AI Dave, Software Services Division Manager
.Approved:
Information Systems
Forwarded to Council:
l
P. ~ont Ewell
City Manager
2
Reference Contract No.
9147 (CCS).