Report to Mayor and City Council
Tuesday, July 16, 2024
Consent
SUBJECT:
Title
CONSIDERATION OF APPROVAL OF CONTRACT FOR MICROSOFT SOFTWARE LICENSES, MAINTENANCE, AND SUPPORT WITH SHI INTERNATIONAL, CORP. (CITY COUNCIL)
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I. SUMMARY
The City requires Microsoft software licenses, maintenance, and support for office productivity software for employee computer users and infrastructure, including; Microsoft 365 G3 licenses, Office 365 G1 licenses, Enterprise Mobility and Security licenses, Microsoft Teams, Enterprise E3 licenses for email, archiving, information protection, storage, and Windows Server licenses for the City’s servers.
Section 2611(g) of the City’s Municipal Code allows City, through its Purchasing Manager, to dispense with competitive bidding processes to purchase materials, supplies, equipment, or services by utilizing a cooperative purchasing program engaged in by any local, county, State, or Federal public entity or entities, provided that the Purchasing Manager makes a determination that the proposed procurement complies with the requirements of Section 2611(g) after engaging in certain due diligence requirements.
The County of Riverside is part of a cooperative purchasing program through which it entered into a contract with Consultant referred to as RIVCO-20800-001-11/19 after engaging in a competitive bidding process, whereby it now receives cloud-based Microsoft Office 365 subscriptions at a significantly discounted rate. The City’s Purchasing Manager has determined that the competitive bidding or proposal process utilized by the County complies with the requirements outlined in Section 2611(g).
Staff is requesting City Council to consider approval of a Contract with SHI International, Corp. to provide Microsoft software licenses, maintenance and Office 365 services under the Microsoft Riverside County Cooperative Purchasing Program, for a total amount of $864,607.74 over a 3-year term, with an annual amount of $289,534.82 the first year, and $287,536.46 for the remaining two years.
II. RECOMMENDATION
Recommendation
1. APPROVE a contract with SHI International, Corp. for software licenses, including maintenance, and support for a total contract amount not to exceed $864,607.14, for a term of 3 years; and
2. AUTHORIZE the Mayor to execute the contract after approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The City requires Microsoft Software Licenses for office productivity software for employee computer users and infrastructure, including; Microsoft 365 G3 licenses, Office 365 G1 licenses, Enterprise Mobility and Security licenses, Microsoft Teams, Enterprise E3 licenses for email, archiving, information protection, storage, and Windows Server licenses for the City’s servers.
Section 2611(g) of the City’s Municipal Code allows City, through its Purchasing Manager, to dispense with competitive bidding processes to purchase materials, supplies, equipment, or services by utilizing a cooperative purchasing program engaged in by any local, county, State, or Federal public entity or entities, provided that the Purchasing Manager makes a determination that the proposed procurement complies with the requirements of Section 2611(g) after engaging in certain due diligence requirements.
The County of Riverside is part of a cooperative purchasing program through which it entered into a contract with Consultant referred to as RIVCO-20800-001-11/19 after engaging in a competitive bidding process, whereby it now receives cloud-based Microsoft Office 365 subscriptions at a significantly discounted rate. The City’s Purchasing Manager has determined that the competitive bidding or proposal process utilized by the County complies with the requirements outlined in Section 2611(g).
On June 10, 2024, the City obtained a quotation from SHI International, Corp. for Microsoft Software Licenses based upon the number of computer users with different requirements, and the number of Microsoft Windows servers. The quotation is priced in accordance with the County of Riverside cooperative purchasing contract. The City and SHI International, Corp., seek approval from City Council of a contract for total amount not to exceed $864,607.74 for a term of three (3) years.
V. FISCAL IMPACT
The cost associated with the 3-year contract with SHI International, Corp. is not to exceed the amount of $864,607.74. The first-year costs for software licenses, including maintenance and support, is for a total of $289,534.82.
The total cost of $289,534.82 for the initial year of software licensing, including maintenance, and support is included in the current Information Technology & Security Department FY2024-25 budget. Software licensing, maintenance and support will be included in the proposed FY2025-26 and subsequent fiscal year budgets.
Fiscal Year |
Amount |
Account Number |
FY2024-25 |
$289,534.82 |
101-54-520-101-6004 |
FY2025-26 |
$287,536.46 |
101-54-520-101-6004 |
FY2026-27 |
$287,536.46 |
101-54-520-101-6004 |
Total |
$864,607.74 |
101-54-520-101-6004 |
VI. EXHIBITS
1. Contract with SHI International, Corp.
2. Purchasing Waiver
Prepared by: Gary Carter, Director, Information Technology&Security Department