HomeMy WebLinkAboutFCS-11-063 - T11-011 - Microsoft Enterprise Licensing
REPORT TO:
Committee of the Whole
DATE OF MEETING: 2011-03-28
SUBMITTED BY: Larry Gordon, Director of Supply Services, 2214
PREPARED BY: Michelle Palmer, Buyer, 2216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2011-03-18
REPORT NO.: FCS-11-063
SUBJECT: T11-011 -Microsoft Enterprise Licensing
www.kitchenerca
RECOMMENDATION:
That Tender T11-011 -Microsoft Enterprise Licensing, be awarded to CDW Canada Inc.,
Etobicoke, Ontario, at their adjusted tendered price of $955,847.16, plus H.S.T. of $124,260.13,
for a total of $1,080,107.29 for a three year term with an option to renew for one (1) additional
three (3) year period; and further,
That the Director of Supply Services be authorized to execute an agreement satisfactory to the
City Solicitor.
BACKGROUND:
Information Technology requires this licensing to upgrade to the Windows 7 /Office 2010
software platform. Software platform upgrades are required on a periodic basis in order to ensure
that computer hardware and software is compatible with current technology and to ensure that
the computer systems can be kept secure and supportable. The current Windows XP/Office
2003 environment has now been in use for seven years. The upgrade to Windows 7 /Office
2010 has been strategically planned and is an important step in keeping the City's computer
systems up to date and operating effectively.
The Ontario Ministry of Government Services, I & IT Procurement Branch maintains Master
Business Agreements with Microsoft that are negotiated on behalf of all Broader Public Sector
(BPS) entities within the province. This allows all Ontario municipalities, regardless of size, to
acquire the software licenses at the lowest cost possible.
The City has leveraged this opportunity for the past decade and has been able to obtain Microsoft
software at significant discounts. The City utilizes these Master Agreements negotiated by the
Ontario government, coupled with a tendering process to obtain the deepest discounts vendors
can provide to obtain the lowest possible cost.
On April 1, the Ontario government master purchase agreements with Microsoft are being
renewed. Software licensing costs will rise 15% with the new agreements in order to standardize
pricing with other provinces in Canada.
S~a~'Re~port
finance and Corporate Services department
ivi) - 1
Staff Re~p~r~
I~~rc~~nT~~ Finance and Corporate Services 1~eparfinent
REPORT:
Tenders were advertised publicly in The Record,
through the Ontario Public Buyers Electronic
potential bidders downloaded tender documents,
2011, six (6) tenders had been received.
www.kitchenerca
on the City of Kitchener website and the Internet
Tendering Information System. Fourteen (14)
and by the closing date of Thursday March 10,
The following tenders were received:
CDW Canada Inc.
SHI Canada ULC
Compugen Inc.
CompuCom
Onx Enterprise Solutions
Dell Canada Inc.
Etobicoke, ON
Orangeville, ON
Guelph, ON
London, ON
Cambridge, On
North York, ON
Rid Price
$1, 080,107.20
$1, 089, 880.56
$1,104,176.07
$1,105, 902.56
$1,118, 974.01
$1,123,912.90
Adjusted
$1,080,107.29*
$1,104,176.08
$1,106, 459.42
$1,124, 004.39
The tenders received from CDW Canada Inc., Compugen Inc., CompuCom and Dell Canada Inc.
included mathematical errors that have been subsequently corrected.
Tenders were reviewed by D. Murray, Information Technology, and M. Palmer, Supply Services,
who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Theme: Financial Management
Strategic Direction: Ensure responsible use of public funds within a supportive policy framework.
The City of Kitchener's purchasing policies and practices ensure openness, fairness and
transparency in the procurement of goods and services.
FINANCIAL IMPLICATIONS:
Funding will be provided from the Software Capital Accounts 52000201 and 56000131
Financial report is attached.
Annual budget estimate is $320,000.
Any balance in this account will be used to fund future software expenses
COMMUNITY ENGAGEMENT:
Not applicable
Dan Chapman, Deputy CAO & City Treasurer, Finance and Corporate
ACKNOWLEDGED BY: Services
iVl~ - 2
z ~ ~ ~
0
m
o
~ ~ c
~
~ o.
~ o
~' ~.
o x ~
N ~ ~
~ r•
~' ~
o o ~ a
'
'
~ ~
D ~
u a ~
m=
CD u m
m
m ~
~
~
~ m
~ ~~
Q~ N~ Q ~
CD ~~~~
N
Q Q ~
~'
~ W ~ m .-. ~
m ~ W
~, c ~,
~ Q _
X n ~
~ ~ ~ ~ ~ ~
ci
~
~ ~
~l p~
N ~
~
N N n~
~
C7 C'f C
~ ~
~ ~ CD ~ ~ ~ ~ ~ ~ N
Q ~ N N ~ ~ `-' ~ O ~ ~ f.3~ ~
CD
.-. ~ N n CD ~
~-. CD
y CD
.-. ~ ~ O
(7 ~ 0
~ O C ~
(A
~ .-.
Q ~
~ ~ (A ~
~ N ~ n
C1
~ ~ ~ ~ O
~ ~
rt
O ~ ~ p 00
~ O p1
~
.G ~
Q ~
~ n W N
~ ~ O ~ O
~ ~ ~
CD -~ ~ O
O
N
~ C
D
N O
~
A
O
~ ~
~ ~ ~ p1
~
N N ~ ~
Q
~
~ O CD ~
W G7
67
O
,~
(~A ~ N
C7 ^ ~
~ N O
O N
~ O ~
~
~ ~ ~
_ ~ ~
~ N
O O
CD W
C7 ~''
N
.-.
~ ~ {-f-
N N CO N ~I W ~
~ N ~ ~ Cii ~ W O W
C3i C3i ~I O C3i C3i ~ O ~
N N N OD OD N O O N
O ~
OD OD CO N ~
~~ W ~I ~
W O O ~
O O W
~~
o~
_N
Q
~D
O
N
O
~1
C'f
~D
_N
(C
ivi) - 3