To approve the purchase of Microsoft software licenses for a three (3) year term to be paid annually for Technology Services in the estimated annual amount of $1,372,871, for an estimated total amount of $4,118,613, from SHI Government Solutions, Inc. through an existing contract; and authorizing the City Manager to execute all necessary documents.  (DIR Contract No. DIR-TSO-4092) Approved

Technology Services department is recommending the approval of a three-year renewal of the Microsoft Enterprise Agreement (EA) Contract with annual payments to SHI Government Solutions, Inc.

SHI Government Solutions, Inc. is authorized to provide this licensing through the State of Texas Department of Information Resources under the contract DIR-TSO-4092. The estimated annual amount for years one (1), two (2), and three (3) will be $1,372,871 per year. The total estimated amount awarded over the three year period will be $4,118,613. These amounts are estimated per year and during the term require an annual true-up that may result in additional costs for additional license usage.

The Microsoft Enterprise Agreement is a comprehensive volume licensing program designed for organizations like the City. Through the EA program, Microsoft offers substantial cost savings over standard license pricing.

The Microsoft Enterprise Agreement and the associated software assurance provide software licenses, software maintenance and cloud services along with other benefits to the City including reduced pricing for home use of selected Microsoft software, the ability to upgrade or downgrade licenses based on specific business needs and problem resolution resources. During the life of the City’s Microsoft Enterprise Agreement, the City has saved money through volume purchasing and greatly simplified licensing that required only a few annual transactions to acquire licenses for the City.

In March 2019 the City renewed the current Enterprise Agreement with Microsoft which will expire on February 28, 2022. If we do not renew our Microsoft Enterprise Agreement, the City of Plano will have to purchase licenses for all the Microsoft products that are currently being used at list prices, an increase of 15%-20%. This cost for procuring all these licenses would be substantially more than the renewal cost of the EA.

The City is authorized to purchase from the State Contract list pursuant to Chapter 271 Subchapter D of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (DIR-TSO-4092 / City of Plano Internal Contract No. 2022-0286-OR)

Funding for this item is available in the 2021-22 Technology Services Infrastructure Budget.  This request is to approve the purchase of Microsoft software licenses for a three-year term to be paid annually for an estimated total amount of $4,118,613 from SHI Government Solutions, Inc.  The initial payment, in the estimated amount of $1,372,871, will leave a remaining balance of $1,900,565 in the 2021-22 Technology Services Infrastructure Budget for other maintenance expenditures.  Future year expenditures, in the annual estimated amount of $1,372,871, will be funded in the 2022-23 and the 2023-24 Technology Services Infrastructure Budgets.  All future year expenditures will occur within Council approved appropriations.   

Approval of this item supports the City's Strategic Plan Critical Success Factors of Excellent, Innovative, and Accountable City Government.