Title
Possible Approval of Contract for General Services, Agreement No. AGR27-808 with SHI International Corporation, as the Authorized Reseller, for Enrollment and Execution of the Three-Year Microsoft Enterprise Enrollment Agreement (EA), in an Amount Not-to-Exceed $2,500,000.00 Plus Applicable Gross Receipts Tax
Recommended Action
I move that Council approve agreement no. AGR27-808 with SHI International Corporation, as the authorized reseller, Microsoft Corporation, for enrollment and execution of the three-year Microsoft Enterprise Enrollment Agreement (EA) , in an amount not-to-exceed $2,500,00.00 plus applicable gross receipts tax.
County Manager's Recommendation
The County Manager recommends that Council approve AGR27-808 with SHI International Corporation for enrollment in the three-year Microsoft Enterprise Enrollment Agreement (EA), as requested.
Body
Attachment A outlines the Microsoft Enterprise Agreement (EA) enrollment, which secures Microsoft 365 Enterprise subscriptions for a three-year term. This agreement provides access to Microsoft Software Assurance, Office 365, Enterprise Mobility Suite, Teams Calling, Azure, and AI software licensing. The procurement is conducted through a cooperative purchasing arrangement between NASPO ValuePoint (contract #80-00018-00046BA) and SHI International Corporation, in accordance with Sec. 31-3(b)(4), permitting purchases via established cooperative contracts with other public entities.
SHI International Corporation will deliver Microsoft Software Assurance Enterprise Subscription services, including Desktop Operating System, Office Suite, and Client Access Licenses, over the three-year period. The detailed quote for this term is attached (Attachment B). Annually, the County must submit the Microsoft True-up document (Attachment C) to confirm all licenses in use have been purchased at the time of activation; licenses are not used prior to purchase.
Microsoft Office Suite remains integral to County operations, with Excel, Word, and PowerPoint serving as core applications for staff. In combination with Azure and the Enterprise Mobility Suite, these tools provide comprehensive computing services for employees and residents, accessible via PC or Microsoft Cloud (Office 365). Features include email, shared calendars, document collaboration, instant messaging, and video conferencing. The EA also includes Teams Calling licenses, facilitating the transition from the legacy Cisco VoIP system.
The Microsoft EA, with Software Assurance and Office 365, enables staff to access applications and documents remotely. Enhanced mobile device management allows Information Management to unify productivity tools under one platform, ensuring data security and compliance with encryption requirements.
Additional funding beyond the quoted cost is allocated within the not-to-exceed amount to support planned expansion of AI software licenses and increased utilization of Azure cloud services for network and storage, as detailed in quote #27018736.
Alternatives
Purchase individual Office 365, client access, Windows Operating System, Teams Calling, Copilot, and in Tune Mobile Device Management Licensing as required. Recurring costs for this methodology would be a significant increase over the annual cost of the bundled licensing.
Fiscal and Staff Impact/Planned Item
The Microsoft EA year one was included in Information Management's approved FY27 budget, with annual budget requests in future fiscal years to total the amount of this agreement plus applicable gross receipts tax.
Attachments
A - AGR27-808 SHI International Corporation for Microsoft Enterprise 3-year agreement #84228462
B - SHI Quote #27018736
C - Microsoft True-up Signed Documentation EA #84228462