REPORT TO THE CITY COUNCIL March 18, 2021 FROM: BRYON HORN, Chief Information Officer Information Services Department BY: FRANK D. VAWTER, Computer Services Division Manager Information Services Department SUBJECT ..Title Approve a three-year Agreement with Dell Marketing L.P. to renew Microsoft Enterprise licensing for the City in the amount of $3,189,931.83 in accordance with purchasing procedures from cooperative purchase agreements as set forth in Administrative Order 3-1. ..Body RECOMMENDATION Staff recommends Council authorize the Chief Information Officer to enter into a three-year Agreement with Dell Marketing L.P. to renew Microsoft Enterprise licensing for the City in the amount of $3,189,931.83 in accordance with purchasing procedures from cooperative purchase agreements as set forth in Administrative Order 3-1. EXECUTIVE SUMMARY The Information Services Department (ISD) has maintained an Enterprise Agreement to cover the support and licensing of Microsoft software products. The total amount of the three-year contract is $3,189,931.83, spread evenly over the three-year term at $1,063,310.61 annually. The licensing shall be priced and purchased using a cooperative purchase agreement as set forth in Administrative Order 3-1. ISD will be using the County of Riverside Agreement to complete this purchase. In addition, ISD procured four bids from those vendors who are authorized to provide licensing from the Riverside Agreement and chose the lowest bidder. Pricing changes during the contract period are subject to the licensing needs and requirements of the City. In addition to Microsoft software, such as Windows and Office that run on desktop and laptops, the City also uses a variety of Microsoft products. These software products comprise most of the software that runs the City's technology operations. Entering into this agreement with Microsoft will assure that the City maintains its investment in software, via the Software Assurance program, and stays current on the licensing and support for productivity products. BACKGROUND It is common for large organizations to enter into Enterprise Agreements with Microsoft. These agreements allow organizations to leverage their volume for improved pricing on a variety of Microsoft products, as well as establish access to Software Assurance. Software Assurance is a program that allows organizations to maintain the rights and privileges of previously purchased licenses for a fraction of the cost of the original license. ISD maintains the licensing for Microsoft products in the City. Included in this agreement are licenses for Windows, Office, SharePoint, Teams, as well as core technology functions like file and application servers, database servers, email servers, Intune, and Azure Active Directory. The City's Enterprise Agreement is set to expire April 30, 2021. ISD has examined multiple offers from a variety of vendors on this agreement. We have identified Dell Technologies as the vendor with the lowest current, and lowest predicted future, costs. ENVIRONMENTAL FINDINGS The approval of this purchase is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference does not apply because a cooperative purchase agreement is being used through another governmental entity. FISCAL IMPACT Funding for this expense is appropriated in the Fiscal Year 2021 Budget in the Information Services Department's (ISD) Systems Acquisition Maintenance Fund (54001). The cost for the first year of the enterprise agreement is $1,063,310.61. ISD currently collects yearly appropriations to pay for the remainder of the Agreement over the 3-year term. No additional fiscal impact is expected. Attachments: Enterprise Agreement Enrollment Volume Licensing Dell Quote Vendor Score Card Riverside County Enterprise Agreement 2019-2021