Title
Consider approving Resolution No. 2013-080 authorizing the City Manager to enter into a Microsoft Enterprise Software License Agreement and take appropriate action.
Body
BACKGROUND:
The City utilizes Microsoft Windows operating system and Microsoft Office suite in its daily operations. In addition, Microsoft SQL databases and servers are being used to run many of the systems and tools utilized by City Administration and the public. Some of these systems include: Vision Public Safety CAD/RMS, SunGard Financial System and LaserFiche Document Management System.
In the past, the City has made one time purchases of Microsoft software, typically as a single use license. Since this procurement model does not allow for upgrades, new software purchases have to be made each time the City needs to upgrade to a newer version. The requirement to make a large software purchase every few years delays necessary upgrades. This creates challenges for Information Services having to handle inherent support and compatibility issues associated with supporting multiple versions of software, some of which are obsolete. Having multiple versions, purchased at various times makes license compliance challenging.
DISCUSSION:
City Administration evaluated various purchasing options and concluded that the most effective and economical model for the City is to enter into a multi-year agreement with Microsoft to provide software licenses at an enterprise level, rather than managing individual software licenses. This type of agreement, known as an Enterprise Agreement, allows the City to purchase perpetual rights to the licenses and in essence pay annual maintenance fees (Software Assurance), which is very similar to how the City handles other software packages, such as the Vision CAD/RMS system utilized by the Police and Fire Departments or the SunGard/HTE Financial package utilized city wide.
Participating in the Enterprise Agreement allows the City to receive significantly discounted pricing and allows the City to always run the most current version of the Microsoft products. Other benefits to the agreement include:
1) Predictable recurring expense with flexible payment terms over multi-year periods
2) Easy license management
3) 24x7 software support from Microsoft
4) Training vouchers for Information Services and interactive e-learning for all City Administration
5) Home use program that gives City Administration the right to obtain a copy of Office for home use for about $20
6) Structured planning services from Microsoft
The anticipated cost of the Enterprise Agreement is $ 129,164 per year, for a period of three years. After the initial three year term, the City would have perpetual rights to the licenses and would then enter into an agreement for software maintenance (Software Assurance) at a reduced rate (approximately 30-40% less). The Enterprise Agreement will be purchased from SHI Government Solutions, under the cooperative contract of the Texas Department of Information Resources (DIR), contract # DIR-SDD-2503.
Year one costs for the Microsoft Licensing Agreement are included in the Information Services Division budget for fiscal year 2013-2014.
RECOMMENDATION:
City Administration recommends approving the three-year Microsoft Licensing agreement at a cost of $129,163.80 for year one of a three year agreement, utilizing the State of Texas catalog purchasing procedures.
ACTIONS:
1) Motion to approve Resolution No. 2013-080 authorizing the City Manager to enter into a three year Microsoft Enterprise Licensing agreement at a cost of $ 129,163.80 for the first year.
2) Motion to deny Resolution No. 2013-080 authorizing the City Manager to enter into a three year Microsoft Enterprise Licensing agreement at a cost of $ 129,163.80 for the first year.
3) Motion to modify Resolution No. 2013-080 to meet the needs of the Council
4) Motion to table the issue for further study or take no action.
ATTACHMENTS:
1. License Agreement quote from SHI Government Solutions
2. Resolution No. 2013-080
3. Microsoft Enterprise License Agreement
4. Enterprise Enrollment Document
5. Enterprise Enrollment Amendment