Agenda Item: 7(c)
Prepared By: Jose Duran, Director
Business: Consent Agenda Item
Department: Information Technology
Subject:
Title
Authorize the City Manager to Renew the Microsoft Enterprise Agreement for an Additional 3-Year Term in the Amount of $162,748.54 Per Year - Jose Duran, Director, Information Technology
Body
BACKGROUND:
In September of 2023, the City of Marco Island entered into a follow-on three-year Enterprise Agreement with Microsoft and its reseller, CDW-G using State negotiated contract pricing. The contract consisted of Microsoft software licensing for Personal Computers (PCs) and included all updates and upgrades for Microsoft Office 365, SQL (database engine), Microsoft Visio, Microsoft Project, Microsoft CoPilot, Windows Server and Client Access Licenses. This agreement is set to expire and staff is asking the City Council to approve a three-year extension, subject to budget appropriations.
Our current platform is Office 365, Exchange Mail and several other services are Cloud based on Microsoft Azure. The main benefits to the city remaining on cloud services are less reliance on City owned hardware, business continuity, and enhanced security.
The city uses Microsoft Office 365 Enterprise Mobility Suite G3 and G5 licenses which would continue to be paid for in three annual installments of $162,748.54 per fiscal year for 310 licenses to cover the current number of actual active user accounts. Any additional licenses added due to department needs beyond this base 3-year agreement, are billed according to an annual true up schedule.
After having it quoted out by several vendors, CDW-G was the lowest bidder and most competitive bid. Additionally, per Sec. 2-255 of the Purchasing Ordinance, software purchases are exempt from the competitive bidding.
FUNDING SOURCE / FISCAL IMPACT: Based on the actual number of licenses, this expense is split between General Fund 0015160-525225, Building Services Enterprise Fund 1015240-5252...
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