Title
Resolution to Approve Renewal of a Multi-Year Enterprise Agreement with Microsoft Corporation and Related Multi-Year Payment Plan and Sales and Service Agreement with CDW Government, LLC ($867,616.42)
Memorandum
The attached resolution seeks authorization to approve the third renewal of a three-year Enterprise Agreement with Microsoft Corporation, payable in three annual installments, for FY2019, FY2020 and FY2021 in the amount of $347,001.86 in FY2019 and $260,307.28 in FY2020 and FY2021 (each year), to CDW Government, LLC (“CDW”), totaling $867,616.42, in accordance with CDW’s quote. The resolution also authorizes the approval of a related sales and service agreement with CDW.
Fiscal/Budget Impact: This expenditure is planned for and budgeted in the FY2019 Information Technology Services Fund proposed budget. The expenditures will be planned for and budged in the FY2020 and FY2021 Information Technology Services Fund budget.
The City of Ann Arbor received three quotations for renewal of the Microsoft Enterprise Agreement. CDW submitted the lowest quotation.
The renewal of the Enterprise Agreement provides the City access to current software licenses, upgrades and maintenance for Microsoft Windows Desktop Operating Systems, Office365, Windows Server Client Access Licenses, Exchange Mail Client Access Licenses, SQL Server, SharePoint Server Client Access Licenses, server terminal server licenses, Visio, Project, PowerBI, and Azure hosting.
The multi-year payment plan and service agreement with CDW provides the City of Ann Arbor the ability to spread the payments over a three year timeframe, continues to provide City employees access to enhanced technical support, technical training vouchers, and provides annual strategic consulting services.
Funds for this expense are budgeted in the proposed FY2019 Information Technology Service Fund Budget; funds will be planned and budgeted in the FY2020 and FY2021 IT Fund Budgets. Authorization of the payment plan will allow for the issuance of a Purchase Order in the amount of $347,001.86 for FY2019, as well as the authorization of payment of the balance by purchase orders of $260,307.28 in both FY2020 and FY2021, subject to and subsequent to annual budget approvals in each fiscal year.
Staff
Prepared by: Jennifer Grimes, Senior Infrastructure Lead, ITSU
Reviewed by: Tom Shewchuk, IT Director, ITSU
Tom Crawford, Financial Services Administrator and CFO
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor requires that Microsoft Client Access Licenses for Office365, Windows Server, Exchange Mail, SQL Server and SharePoint Server be maintained to efficiently and effectively operate and sustain the City’s network computing environment and continue to enhance the level of city service delivery;
Whereas, The City of Ann Arbor requires that Microsoft Windows Desktop Professional Client Access Licenses be maintained for the effective management, operation and protection of the City’s desktop and laptop operating systems;
Whereas, CDW Government, LLC (“CDW”) is an approved reseller under the Microsoft Enterprise Agreement;
Whereas, Renewal of the Microsoft Enterprise Agreement, including approval of the related CDW multi-year payment plan and Product Sales and Service Projects Agreement, provides the City of Ann Arbor the flexibility of spreading the payments for the purchase and maintenance of these licenses over three fiscal years;
Whereas, Funding for this expenditure is planned and budgeted for in the proposed FY2019 Information Technology Budget; and
Whereas, Funding for this expenditure will be planned and budgeted for in the FY2020 and FY2021 Information Technology Fund Budget;
RESOLVED, That City Council approve renewal of a three-year Enterprise Agreement with Microsoft Corporation and the related three-year payment plan and Product Sales and Service Projects Agreement with CDW for a total of $867,616.42, subject to annual budget appropriations during the term of the agreements;
RESOLVED, That City Council approves a purchase order in the amount of $347,001.86 for FY2019 to CDW for year one of the agreements; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this Resolution regardless of fiscal year, including the execution of any renewal documents required by Microsoft or CDW after approval as to form by the City Attorney.