HomeMy WebLinkAboutFCS-17-034 - Microsoft Enterprise Agreement and Microsoft Select Agreement
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-02-27
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Buyer, 519-741-2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2017-02-13
REPORT NO.: FCS-17-034
SUBJECT: Microsoft Enterprise Agreement and Microsoft Select
Agreement
___________________________________________________________________________
RECOMMENDATION:
That the City of Kitchener piggyback on the Region of Peel Tender 2016-596T
Microsoft Enterprise Agreement, with CDW Canada Corp., Etobicoke, Ontario, at
their proposed unit prices for a three (3) year period, with no options for renewal.
That the City of Kitchener piggyback on the Ontario Ministry of Government and
Consumer Services, Vendor of Record (VOR) Number OSS_00519307 for
Microsoft Select Reseller, with Softchoice LP, Toronto, Ontario, at their proposed
unit prices for a four (4) year period, with no options for renewal.
BACKGROUND:
The City’s Information Technology division purchases and manages all required
Microsoft software licenses on behalf of the organization. Microsoft software is used on
all of the City’s computer systems and licenses are purchased for:
• Desktop / Laptop and Server Operating Systems
• Back office server systems supplied by IT such as email and database systems
• Office productivity software (Word, PowerPoint, Excel, Access, Visio)
Two volume licensing programs are available to procure Microsoft software. In both
cases, volume licensing pricing has been negotiated by the lead agency and extended
to the broader public sector agencies providing the best value to the City.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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The volume licensing programs are:
Microsoft Enterprise – this volume purchasing program is designed for large
organizations (500+) with a standard software deployment across the organization.
This program locks in the pricing for three years and spreads the cost of the software
licensing equally across the three year period. An annual license “true-up” process
reduces software license management. All software purchased through the Enterprise
Agreement must be purchased with “Software Assurance” which allows perpetual
access to software upgrades. The Enterprise Agreement licensing also offers a much
easier path to transition to cloud based services in the future. The majority of Microsoft
software used at the City is purchased through the Enterprise Agreement.
Microsoft Select – the Select volume program is a legacy volume license program that
is only offered to government agencies and allows the purchase of individual software
licenses at predetermined pricing. The Select agreement does not require the purchase
of “Software Assurance”. This is the preferred method of buying software licenses
where there is no need to stay current with new versions and offers the city the best
value in those instances.
Having the option to purchase from either volume license program is a necessity and is
consistent with past practice.The current Microsoft volume purchase agreement expires
on March 31, 2017.
The City’s estimated spend against these contracts for a three year period is
$1,150,000. The actual spend will depend on the level of activity throughout the term of
the contract.
REPORT:
In the fall of 2016, the Region of Peel issued a Request for Tender for a Microsoft
Enterprise Agreement for the Peel Regional Police. The tender was awarded to CDW
Canada Corp. with an effective date of October 1, 2016.
In the winter of 2016, the Ontario Ministry of Government and Consumer Services
issued a Request for Proposal for a Vendor of Record for a Microsoft Select Reseller.
The proposal was awarded to Softchoice LP with an effective date of October 1, 2016.
Broader public sector organizations can take advantage of the terms and pricing offered
within these agreements. As a result, the City engaged in dialogue with Softchoice LP
and CDW Canada Corp., who provided the City with the software list and the terms and
pricing offered within the agreement. Through a review of the agreements, as well as
current costs gathered through historical competitive processes facilitated by the City,
staff have assessed that the cooperative tender and the vendor of record offers the best
value for the City.
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The agreement was reviewed by D. Murray, Director of Technology Innovation and
Services, C. Hassarajani, Manager of Client Services and R. Scott, Buyer, who concur
with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this contract (A), is fair and reasonable for a project of this scope and
the upset limit is within the budget allowance (B) provided within the budget. Funding
for this contract is included within the approved capital budgets. The estimated surplus
(D) will remain within the capital account to fund future upgrades/purchases.
FCS-17-034
Microsoft Enterprise Agreement and Microsoft Select Agreement
Estimated Cost for this Contract
Microsoft Enterprise and Select Agreement costs including HST 1,239,372.00
less: HST rebate on Contract (123,279.13)
Net Cost Being Awarded 1,116,092.87 A
Projected Additional Costs -
Total Estimated Cost for this Contract $ 1,116,092.87 C
Budget for this Contract
Computer Software Capital Account
Existing Balance 109,618.74
2017 Capital Budget 313,283.00
2018 Capital Budget 387,729.00
2019 Capital Budget 360,486.00
Total Budget for this Contract $1,171,116.74 B
Estimated Surplus for this Contract (B - C) $55,023.87 D
The above figures represent the known costs for the Enterprise Agreement software
purchase. Entering these volume purchase agreements will establish the purchase
sources for Microsoft software licenses for a three year period. Software will be
purchased as needed from these contracts in accordance with the purchasing bylaw.
These purchases could be related to growth (new PCs or staff) or by specific project
requirements and will be funded by various project and divisional budgets as
appropriate.
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COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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