HomeMy WebLinkAboutFIN-20-044 - FPO20-088 Microsoft Enterprise AgreementREPORT TO:Committee of the Whole
DATE OF MEETING:2020-06-22
SUBMITTED BY:Ryan Scott,Manager of Procurement, 519-741-2200 ext. 7214
PREPARED BY:Brad Kowaleski,ProcurementSpecialist, 519-741-2200 ext. 7063
WARD (S) INVOLVED:N/A
DATE OF REPORT:2020-03-23
REPORT NO.:FIN-20-044
SUBJECT:Emergency Procurement -Microsoft Enterprise Agreement
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RECOMMENDATION:
For Information Only
BACKGROUND:
software licenses on behalf of the organization. Microsoft software is used moston
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)
Cloud based services such as Office365for email, security and collaboration
The City plans to use the Microsoft Enterprise Agreementvolume licensing program to purchase
this software. The licensing pricing has been negotiated by the Ontario government and
purchase agreement terms set by the lead agency and extended to the broader public sector
agencies providing the best value to the City.
Microsoft Enterprise Agreementthis 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-
management. The Enterprise Agreement licensing also facilitatesthe transitionof services to
online cloud-basedoptions for Office 365 which the City is in the process of deployingin 2020.
AllMicrosoft software used at the City is purchased through theEnterprise Agreement.
iscontract for a three-yearperiod is $1,500,000. The actual
spend will depend on the level of activity throughout the term of the contract.
***This information is available in accessible formats upon request. ***
Please call 520-741-2345 or TTY 1-866-969-9994for assistance.
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In the fall of 2019, 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
th
an effective date of October 29, 2019.
Broader public sector organizations can take advantage of the terms and pricing offered within
this agreement. As a result, the City engaged in dialogue with CDW Canada Corp., who provided
the City with the software list and pricing offered within the agreement. Through a review of the
agreement, as well as current costs gathered through historical competitive processes facilitated
by the City, staff have assessed that thistender offers the best value for the City.
REPORT:
A recommendation for award of the Microsoft Enterprise Agreement to CDW Canada Corp. was
planned for the March 23rd Council meeting. The previous agreement was set to expire on
March 31st. As the COVID-19 emergency unfolded in mid-March, Microsoft offered a 60 day
extension to the existing agreement and the renewal was put aside to focus on the needed
response to facilitate staff working from home. As we approached the original agreement expiry
date, additional details were provided from Microsoft and the reseller on our ability to manage
ability to maintain critical technology services through the COVID-19 pandemic. The City relied
heavily on our Microsoft investments through this state of emergency and our ability to manage
and administer all aspects of the technology was essential. On March 31st it was communicated
that there would be no opportunity to bring this forward on April 6th as intended and most likely
not in April at all.On April 1st, a decision was made to enact clause 170.9 Emergency
Procurement of the Purchasing By-law 2017-106 to prevent disruption to essential City services.
As an information only report, this report was not brought forwardon the May 11th Special
Council meeting as selected critical reports were still being brought forward. As we await a
return to the regular Council meeting schedule, this report is being brought forward before a
summer recess.
As per clause 170.9.1of the Purchasing By-law 2017-106, it states,Notwithstanding any other
provisions of this By-law and provided time does not permit the use of a Standard Procurement
process, Goods, Services, Construction and Consulting Services may be purchased on an
Emergency basis where they are required as a result of an unforeseensituation or event occurs
that is a threat to any of the following:
b.the maintenance of essential City services or to prevent the disruption of
essential City services;
As per clause 170.9.3 of the Purchasing By-law 2017-106, it states
the provisions of By-law 93-200 (now 2017-
rector
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of Supply Services or a Deputy CAO shall authorize any required purchases. For amounts
exceeding $100,000., the Director of Supply Services shall issue an information report to
The City proceeded to piggyback on the Region of Peel Tender 2019-677T 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.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The
the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a purchase of this scope and is within
thebudget allowance (B) provided. As this is a three-yearcontract, the budget shown represents
amounts for 2020 to 2022. The estimated surplus (E) will be returned to the Tax Capital Reserve
account upon completion of the three-year contract.
FCS-20-034
Microsoft Enterprise Agreement
Estimated Cost for this Work
Microsoft Enterprise Agreement costs including HST1,500,000.00
less: HST rebate on tender(149,203.47)
Net Cost Being Awarded1,350,796.53 A
Projected Costs-
Total Estimated Cost for this Work$1,350,796.53 C
Budget for this Work
TIS Capital Budget (2020-2022)1,398,724.00
Total Budget for this Work$1,398,724.00 B
Estimated Surplus/(Deficit)$47,927.47E
The above figures represent the known costs for the Enterprise Agreement software purchase.
Software will be purchased as needed from these contracts in accordance with the purchasing
by-law.
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 ith the agenda in advance of the
council / committee meeting.
ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
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