TO: LINDA REICH, CITY MANAGER
FROM: RYAN SHUMWAY, INFORMATION TECHNOLOGY MANAGER
SUBJECT
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Microsoft Enterprise Agreement with Dell Marketing LP.
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RECOMMENDATION
1) Approve a three-year Microsoft Enterprise Agreement with Dell Marketing LP to provide the necessary Microsoft software licenses, including Outlook and Microsoft 365; 2) approve the annual amount of up to $429,076.08 for a total 3-year cost no to exceed $1,287,228.24; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
There are sufficient funds in the adopted Fiscal Year 2024-25 Operating Budget and will continue to be budgeted in the next two budget cycles.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Superior Customer Service
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
• Effective Technology
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Expenditure: 6102050-43070 |
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BACKGROUND
The City of Chino relies on Microsoft software across its desktop computers, servers, and cloud-based services. This includes Office 365, Windows operating systems, productivity tools, and SQL database licenses. To effectively manage its technology environment and cloud computing strategies, it is essential for the City to maintain its Enterprise Agreement.
ISSUES/ANALYSIS
The Microsoft Enterprise Licensing Agreement, negotiated by Riverside County through a competitive solicitation process, has been utilized by other organizations across California. By piggybacking on Riverside County’s Microsoft Master Enterprise Agreement with Dell Marketing LP, the City of Chino can secure more favorable pricing compared to establishing an independent agreement. Dell has agreed to extend the same pricing and terms to the City, ensuring current lower rates are locked in for the next three years. The annual payment for the agreement, covering the period from September 1, 2024, to August 31, 2025, is $399,076.08.
Additionally, staff is requesting an extra $30,000 as a contingency for any unforeseen license needs that may arise. This ensures uninterrupted operations across departments. Any additional licenses or overages during the contract term will be purchased at the agreed-upon rate.
Under the provisions of the City of Chino Municipal Code Section 3.32.070 (D)(2), the City Council is authorized to acquire this licensing agreement through a cooperative purchasing agreement. The City’s Purchasing Manager has reviewed the request and concurs that leveraging Riverside County’s agreement, which is utilized by numerous California public agencies, would be more cost-effective than an independent agreement.
Funding for this three-year agreement has been budgeted within the Administration Department’s FY 2024-25 Budget and will be included in future budget requests for FY 2025-26 and FY 2026-27.
Staff recommends that the City Council approve the award of a three-year Microsoft Enterprise Software Licensing Agreement to Dell Marketing LP, leveraging Riverside County’s statewide competitively awarded Microsoft Enterprise Agreement. The total amount will not exceed $1,287,228.24 for the period of September 1, 2024, through August 31, 2027.
Attachments - Microsoft Agreement
Dell - Microsoft Quote
County of Riverside Agreement