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 Dell Marketing L.P. ($1,650,000.00)
Memorandum
The attached resolution seeks authorization to approve a three-year Enterprise Agreement with Microsoft Corporation, payable in three annual installments, for FY2025, FY2026 and FY2027 in the amount of $530,000.00 in FY2025 and $550,000.00 in FY2026 and $570,000.00 in FY2027 (each year), to Dell Marketing L.P., totaling $1,650,000.00.
Budget/Fiscal Impact: This expenditure is planned for and budgeted in the FY2025 Information Technology Services Fund proposed budget. The expenditures will be planned for and budged in the FY2026 and FY2027 Information Technology Services Fund budgets.
This bid was generated through MiDEAL, a consortium procurement source used regularly by the City.
The renewal of the Enterprise Agreement provides the City access to current software licenses, upgrades and maintenance for Microsoft Windows Desktop Operating Systems, Microsoft 365, Windows Server Client Access Licenses, Exchange Mail Client Access Licenses, SQL Server, SharePoint Server Client Access Licenses, Terminal Server Licenses, Visio, Project, and PowerBI. Funds are being requested above the license quote to cover mid-year additions.
Funds for this expense are budgeted in the FY2025 Information Technology Service Fund Budget; funds will be planned and budgeted in the FY2026 and FY2027 IT Fund Budgets. Authorization of the payment plan will allow for the issuance of a Purchase Order in the amount of $530,000.00 for FY2025, as well as the authorization of payment of the balance by purchase orders of $550,000.00 in FY2026 and $570,000.00 in FY2027, subject to and subsequent to annual budget approvals in each fiscal year.
Staff
Prepared by: Jen Grimes, Infrastructure and Cybersecurity Manager, ITSU
Reviewed by: Josh Baron, Interim IT Director, ITSU
Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City of Ann Arbor requires that Microsoft Client Access Licenses for Microsoft 365, 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, Dell Marketing L.P. is an approved reseller under the Microsoft Enterprise Agreement;
Whereas, Renewal of the Microsoft Enterprise 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 budgeted for in the FY2025 Information Technology Budget; and
Whereas, Funding for this expenditure will be planned and budgeted for in the FY2026 and FY2027 Information Technology Fund Budget;
RESOLVED, That City Council approve renewal of a three-year Enterprise Agreement with Microsoft Corporation for a total of $1,650,000.00, subject to annual budget appropriations during the term of the agreements;
RESOLVED, That City Council approves a purchase order in the amount of $530,000.00 for FY2025 and $550,000.00 for FY2026 and $570,000.00 for FY2027 to Dell to for the agreement; 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 Dell after approval as to form by the City Attorney.