HomeMy WebLinkAboutItem 5k. Approve a 3 year Contract Renewal for Microsoft Office 365 Government Plan Subscription Lincenses Item 5k
Department: Information Technology
Cost Center: 1101
For Agenda of: 6/21/2022
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Rebecca Cox, IT Administrative Analyst
SUBJECT: APPROVE A THREE-YEAR CONTRACT RENEWAL FOR MICROSOFT
OFFICE 365 GOVERNMENT PLAN SUBSCRIPTION LICENSES
RECOMMENDATION
1. Approve a three-year contract renewal for Microsoft Office 365 Government Plan
subscription licenses; and
2. Per Municipal Code 3.24.060E, authorize waiver of formal bids to purchase
Microsoft Office 365 subscription licensing through the cooperative agreement
under the County of Riverside Master Agreement – PSA – 0001524, Enterprise
Agreement (EA) - 8084445; or below the cooperative purchasing net cost within
the same terms and conditions; and
3. Authorize the City Manager to approve related Purchase Order Requisitions
through the duration of the agreement.
DISCUSSION
Background
Microsoft Office 365 productivity software is one of the City’s most critical systems and
includes Microsoft Access, Excel, Exchange, OneDrive, OneNote, Outlook, PowerPoint,
Publisher, SharePoint, Teams, and Word. In 2016, Council approved the City migration
to Microsoft Office 365 cloud-based platform subscription, renewing in 2019 for a three-
year term which is due to expire June 30, 2022. Throughout this period the cloud-based
subscription service has allowed the City to leverage new products as they are released,
such as Microsoft Forms and Teams without incurring additional costs. Subscription
based licensing ensures the City’s business use of the Office suite will evolve in real time
with enhancements and maintenance to the software. In the proposed renewal the Office
365 Government Plan G3 licenses now include Audio Conferencing services; previously,
this service was an additional cost outside of licensing fees.
Since the 2019 agreement, the City has increased the overall license count by 30 licenses
to align with the growth of City staffing and resource needs. The proposed renewal
(Attachment A) includes a total of 570 licenses for a three-year term with annualized
payments of $189,126.
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Item 5k
Previous Council or Advisory Body Action
The current license subscription expiring June 30, 2022 was approved for purchase as
part of the Consent Agenda at the May 21, 2019, City Council Meeting.
Policy Context
Per the City’s Financial Management Manual, City Council approval is required for
purchases of this type that are over $200,000 through the duration of the contract. Utilizing
the County of Riverside Master Agreement allows the City to waive formal bidding as set
forth in Municipal Code 03.24.060 Bidding procedures – use of, not required and when;
“when the purchase will be made cooperatively with one, or more, other units of
government or from a local dealer within the city limits that can provide the same brand,
model and configuration of item(s) identified in the cooperative purchase agreement(s) at
or below the cooperative purchasing net cost within the same terms and conditions,” and
compliant with the purchasing policy, Section 204, No -Bid Purchasing – Cooperative
Agreement Purchasing.
Public Engagement
This item is on the agenda for the June 21, 2022 City Council meeting and will follow all
the required posting and notification. The public may comment on this item at or before
the meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-22
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $162,723 $162,723
Water Fund $13,200 $13,200
Sewer Fund $13,200 $13,200
State
Federal
Fees
Other:
Total $189,126 $189,126
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Item 5k
Funding for the current fiscal year was approved through the 2021-23 Financial Plan, and
2022-23 budget appropriation. Water and Sewer Enterprise Funds contribute directly to
their license fees as budgeted in the Financial Plan.
ALTERNATIVES
Do not renew subscription. This action is not recommended by staff; Migrating
infrastructure back into the City and returning to Microsoft Office Suite (non-cloud based)
would require CIP upgrades on a five year replacement cycle. Additionally, the
organization would not receive big feature updates made available to subscription
holders.
ATTACHMENTS
A - Quote from Dell for Microsoft Enterprise Agreement Renewal 05 -16-19
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Sam Andrews
sam.andrews@dell.com
512.720.4469
Customer: City of San Luis Obispo
Contract: Riverside County Master Agreement - PSA-0001524 (8084445)Date of Issue:5/16/2022
Microsoft Enterprise Agreement (EA) #: TBD/ Future (effective 7/1/22)Quote Expires:6/30/2022
Product Description Mfg#Quantity Months Unit Price Ext. Price
Enterprise Online Services Products
O365 G3 GCC Sub Per User AAA-11894 570 12 $19.25 $131,670.00
EntMobandSecE3Full GCC ShrdSvr ALNG SubsVL MVL PerUsr AAD-32907 570 12 $8.40 $57,456.00
$0.00
Additional Online Services Products
Audio Conferencing Select Dial Out GCC Sub Add-on NYH-00001 570 12 $0.00 $0.00
$0.00
$0.00
$0.00
Annual Payment $189,126.00
Notes:Total Annual Payment Yr 1 $189,126.00
Microsoft Enterprise Agreement (EA) Master#: 8084445 Total Annual Payment Yr 2 $189,126.00
Microsoft Enterprise Agreement (EA) Enrollment#: Future/TBD Total Annual Payment Yr 3 $189,126.00
Previous Enrollment# 7799072 (expires on 6/30/2022)Total of 3 years of Payments $567,378.00
Notes:
Quote prepared by: Chris A Johnson
Monthly Subscriptions
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