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City
Council Report |
City Council Meeting: Date
Agenda Item: 1-B
To: Mayor and City Council
From:
Subject: Renewal of Microsoft Enterprise
Agreement
Recommended Action
Staff recommends that the City
Council:
1.
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 City. 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 C55000310.589000. 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:
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Approved: |
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Forwarded to Council: |
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Name |
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City Manager |