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. ($1,370,000.00)
Memorandum
The attached resolution seeks authorization to approve a three-year Enterprise Agreement with Microsoft Corporation, payable in three annual installments, for FY2022, FY2023 and FY2024 in the amount of $450,000.00 in FY2022 and $450,000.00 in FY2023 and $470,000.00 in FY2024 (each year), to Dell Marketing L.P., totaling $1,370,000.00.
Budget/Fiscal Impact: This expenditure is planned for and budgeted in the FY2022 and FY2023 Information Technology Services Fund proposed budgets. The expenditures will be planned for and budged in the FY2024 Information Technology Services Fund budget.
This bid was generated against the Midwestern Higher Education Compact (MHEC) to provide fair prices to the public sector.
The renewal of the Enterprise Agreement provides the City access to current software licenses, upgrades and maintenance for Microsoft Windows Desktop Operating Systems, Office 365, Windows Server Client Access Licenses, Exchange Mail Client Access Licenses, SQL Server, SharePoint Server Client Access Licenses, Terminal Server Licenses, Visio, Project, PowerBI, and Azure hosting. Funds are being requested above the license quote to cover mid-year additions and on demand pricing for Azure services.
Funds for this expense are budgeted in the FY2022 and FY2023 Information Technology Service Fund Budgets; funds will be planned and budgeted in the FY2024 IT Fund Budgets. Authorization of the payment plan will allow for the issuance of a Purchase Order in the amount of $450,000.00 for FY2022, as well as the authorization of payment of the balance by purchase orders of $450,000.00 in FY2023 and $470,000.00 in FY2024, subject to and subsequent to annual budget approvals in each fiscal year.
Staff
Prepared by: Jen Grimes, Infrastructure and Cybersecurity Manager, ITSU
Reviewed by: Tom Shewchuk, IT Director, ITSU
Jennifer Richards, Assistant City Attorney
Approved by: Tom Crawford, City Administrator
Body
Whereas, The City of Ann Arbor requires that Microsoft Client Access Licenses for Office 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 FY2022 and FY2023 Information Technology Budgets; and
Whereas, Funding for this expenditure will be planned and budgeted for in the FY2024 Information Technology Fund Budget;
RESOLVED, That City Council approve renewal of a three-year Enterprise Agreement with Microsoft Corporation and for a total of $1,370,000.00, subject to annual budget appropriations during the term of the agreements;
RESOLVED, That City Council approves a purchase order in the amount of $450,000.00 for FY2022 and $450,000.00 for FY2023 and $470,000.00 for FY2024 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.