HomeMy WebLinkAboutFIN-2023-130 - NSP23-063 Microsoft Enterprise Agreement
REPORT TO: Committee of the Whole
DATE OF MEETING: March 20, 2023
SUBMITTED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
PREPARED BY: Brad Kowaleski, Procurement Specialist, 519-741-2200 ext. 7063
WARD(S) INVOLVED: N/A
DATE OF REPORT: March 14, 2023
REPORT NO.: FIN-2023-130
SUBJECT: NSP23-063 Microsoft Enterprise Agreement
RECOMMENDATION:
That the City
U8364444 - Microsoft Enterprise Agreement, with Microsoft Canada, Toronto, Ontario,
for a three (3) year period, with no options for renewal, provided a satisfactory contract
is executed.
REPORT HIGHLIGHTS:
The purpose of this report is to obtain approval to proceed with a non-standard
procurement in accordance with Procurement By-law 2022-109;
The City has leveraged enterprise agreements for these products for ten (10)+ years;
This report supports the delivery of core services.
BACKGROUND:
Technology Innovation and Services Division purchases and manages all required
Microsoft software licenses on behalf of the organization. Microsoft software is used on all of
the Cit
Desktop / Laptop and Server Operating Systems
Back office server systems supplied by IT such as email and database systems
Cloud services such as Office 365, Visio, Project
It is the intent to continue to utilize the Microsoft Enterprise Agreement, a volume licensing
program to purchase this software.
Microsoft Enterprise Agreement 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 software licensing cost equally
across the three--
management. The Enterprise Agreement licensing also offers a much easier path to
transition to more cloud-based services. The majority of Microsoft software used in the City
is purchased through the Enterprise Agreement.
total estimated spend against this contract for a three-year period is $3,300,000.
The actual spend will depend on the level of activity throughout the term of the contract.
REPORT:
The Ministry of Public and Business Service Delivery (Supply Chain Ontario) established a
framework of Microsoft agreements and their various programs under which non-provincial
entities including municipalities can procure products and services. These agreements fall
under Master Business agreement U8364444. This Master Business Agreement (MBA) with
Microsoft was originally signed in 2004 and amended in 2015
The City can take advantage of the terms and pricing offered within this agreement and sign
its own agreement with Microsoft. Through a review of the agreement and current costs
gathered through historical competitive processes, staff have assessed that leveraging this
agreement would continue to provide best value.
REPORT:
In accordance with the Procurement By-law 2022-109, Section 15 Non-Standard
Procurement, as the total value of the deliverables for this non-
standard procurement exceeds the delegated authority.
A non-standard procurement is the acquisition of goods, services or construction through a
process or method other than the process and method normally required for the type and
value of the required deliverables, as identified below:
Requirement Procurement Procurement Approval
Value Excluding Process Authority
Taxes
Goods, Services or $30,001 - Non-Competitive or Chief Procurement
Construction under the $120,000 Limited Competition Officer
circumstances included in
Goods, Services or $120,001 or more Non-Competitive or Council
Construction under the Limited Competition
circumstances included in
In accordance with the Procurement By-law 2022-109Goods, services and
construction may only be acquired through a non-standard procurement process under the
following circumstances: Item 2 - Where only one supplier is able to meet the requirements
of a procurement in order to:
a) ensure compatibility with existing products;
b) recognize exclusive rights, such as exclusive licenses, copyright and patent rights
The documentation was reviewed by D. Murray, Director of Technology Innovation and
Services, C. Hassarajani, Manager of Digital Infrastructure and Support and B. Kowaleski,
Procurement Specialist, who concur with the above recommendation.
STRATEGIC PLAN ALIGNMENT:
The recommendation
through the delivery of core service.
FINANCIAL IMPLICATIONS:
The net cost for this tender (A), is fair and reasonable for a purchase of this scope but the
upset limit exceeds the budget allowance (B) provided within the budget. As this is a three
year contract, the budget shown represents amounts for term of the contract (Apr 2023 to
Mar 2026). The estimated surplus (E) will be returned to the Tax Capital Reserve account
upon completion of the three year contract.
NSP23-063 Microsoft Enterprise Agreement
Estimated Cost for this Work
Microsoft Enterprise and Select Agreement costs including HST 3,729,000.00
less: HST rebate on tender (370,919.84)
Net Cost Being Awarded 3,358,080.16 A
Projected Costs -
Total Estimated Cost for this Work 3,358,080.16 C
Budget for this Work
Software Capital Budget (2023-2026) 3,359,000.00
Total Budget for this Work 3,359,000.00 B
Estimated Surplus/(Deficit) 919.84 E
The above figures represent the known costs for the Enterprise Agreement software
purchase. Entering this agreement will establish the purchase source for Microsoft software
licenses for a three-year period. The software will be purchased as needed in accordance
with the procurement 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.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-20-044 - Emergency Procurement - Microsoft Enterprise Agreement
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department