CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 23-300, Microsoft Enterprise Agreement, to Dell Marketing, LP for an amount not to exceed $2,184,984.59 and for a three-year term
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DEPARTMENT: Information Technology
SUBMITTED BY: Jacqueline Nguyen, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City of Naperville has used an Enterprise Agreement (EA) to license and manage Microsoft software since 2005. The EA is offered through Microsoft and administered by vendors to sell Microsoft products because Microsoft does not sell directly to the public. Under the EA that expired on December 31, 2020, staff consolidated Microsoft EA purchases under one Citywide contract. The City's current EA was renewed for a three-year term beginning in January 2021 and is expiring on December 31, 2023.
An EA streamlines license management within the City, simplifies purchasing, and provides for predictable payments throughout the agreement. Under an EA, the costs for both maintenance and new purchases are distributed over the three-year term and prices are locked for the entirety of the contract. During the contract, additional software licenses may be added as needed. These are either purchased during the year or paid for with a true-up order at the end of a year. Additions may be necessary due to growth in users, adoption of new tools such as PowerBI, or the need to acquire new software and applications. Any such additional spending beyond current best estimates will be addressed through change orders.
Regular software updates are included in the EA at no additional cost through the Microsoft Software Assurance program. The program provides for technical support, training, and planning services.
The State of Illinois holds a Microsoft Large Account Reseller Statewide Master Contract which provides pricing levels on all Microsoft products. The state contract is awarded to Dell USA, LP (Dell), a Microsoft Licensin...
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