From
Keshnel Penny, Chief Information Officer
Title
Purchase of Microsoft Office 365 User Licenses, Migration, and Implementation Services in the amount not-to-exceed $230,000 through SHI Government Solutions, Inc., an approved Microsoft certified vendor, through a state interlocal agreement with DIR, with an estimated annual renewal amount of $230,000 with 5% annual increase for one year with the option to renew for three additional one-year periods totaling approximately $690,000 if all extensions are exercised, and authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Presenter
Keshnel Penny, Chief Information Officer
Recommended Action
Approve
Analysis
City of Grand Prairie utilizes Microsoft Active Directory, Microsoft Exchange and Microsoft Office 2010 and 2016 with on premise licensing. These resources at critical to the City’s operations. The IT department has successfully utilized this on premise licensing model of technologies for over a decade. However, Microsoft and many other enterprise software companies are migrating to cloud and online solutions, and eventually the products available to the City will be limited.
As many other cities and organizations are moving more towards cloud based solutions, The IT Department has begun to identify new functionality of applications, services, time and cost effective benefits to the migration off on premise Microsoft Exchange for emails to a cloud based Office 365 platform. This also will provide the City of Grand Prairie with a uniform industry standard and address the risk of multiple different versions in our city. Also, Microsoft Office 365 platform includes Active directory, Microsoft exchange and Microsoft Office in one single solution which eliminates the need of extra resources.
As a cloud provider, Microsoft invests significantly in security so one can have a reduced risk of losing data with the satisfaction of high availability of 99.9% as compared to the on premise email exchange server that is prone to failure and attacks. The cost of the Microsoft Office 365 migration and implementation is a fixed cost annually as opposed to the current on premise cost which varies with updates or upgrades that need to be made as one needs to consider the physical hardware and software platform that constantly has to be changed to facilitate the on premise technology in addition to its high level constant administration. The pay-as-you-go pricing provides predictability and flexibility for future licensing purchases and so under this the city only pays for licenses that it will be actively using which can further lower costs if there are changes in staffing.
By switching to a cloud based solution there will be long term savings compared to a stand-alone on premise solution which we currently utilize. The number is calculated by adding stand-alone license purchases for both software and hardware that comprise of desktops and servers needed to implement these technologies onsite.
Contract# DIR-TSO-4056 began January 17, 2018 and its current term will expire January 17, 2020, with two renewals remaining extending the contract expiration date through January 17, 2023.
Chapter 271.102 of the Local Government Code authorizes local governments to participate in a cooperative purchasing program with another local government or local cooperative organization. In lieu of competitive bidding, items and services may be purchased through such agreements as the agreements have already been bid by the sponsoring entity or agency. The City of Grand Prairie has master inter-local cooperative agreements with various entities including DIR.
DIR provides statewide leadership and oversight for management of government information and communications technology. DIR has served in a leadership role to facilitate the state’s economic competitiveness through its ability to deliver quality information resources commodities and services at the lowest prices and best value for state and local government as well as the K-12 public and higher education systems.
Financial Consideration
Funding for the purchase of Microsoft Office 365 licenses and services in the amount of $230,000 is available in the IT Capital Projects Fund (153210), WO #02001303 (FY20 Support Services). Funding for future fiscal years will be paid from that year’s approved budgets.