CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the Award of Change Order #2 to the Third Three-Year Extension to Contract 06-106, Microsoft Office Enterprise Agreement, to CDW-Government (CDWG), Inc. for an amount not to exceed $185,357.77 and a total award of $1,211,296.33.
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DEPARTMENT: Information Technology
SUBMITTED BY: Jeff Anderson, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City has utilized a Microsoft Enterprise Agreement (EA) since 2005 for the purchase and maintenance of our Microsoft products. On December 16, 2014, City Council approved the award of the third and final three-year extension to Contract 06-106, which is valid from December 16, 2014 through December 31, 2017.
Prior to 2015, the City had two EAs - one for the Electric Utility and another for the remainder of the City. Under this current three-year agreement, the City began consolidating the two EAs into one contract.
On June 21, 2016, the City Council approved Change Order #1 for an amount of $25,000 to add Microsoft "Azure Cloud Services" to increase reliability and decrease complexity of the cost of City IT services.
DISCUSSION:
During the term of an EA, the City can add and adjust users, devices, products, and services at any time without having to place individual purchase orders to account for changes made throughout the year. The true-up pricing is then an annual inventory adjustment of all products, services, users and devices changed during the course of the year on the existing EA.
This change order is being requested to complete the true-up for the term of this contract since we are nearing the contract end date. The 2017 true-up amount due is $185,357.77, which includes the addition to the EA of Visio client licenses, Project client licenses, Server operating systems, SQL Standard, SQL Enterprise licensing along with their associated Microsoft maintenance ("Software Assurance") costs.
This true-up cost is higher than previous year...
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