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TO: Mayor Thomas J. Weisner
FROM: James Dahl. MIS Director
DATE: January 19, 2015
SUBJECT:
Request authorization to enter into a three year agreement for the purchase of Microsoft Enterprise License renewals for the MIS Division under the State of Illinois Central Management Services contract with CDW-Government, Inc. in the amount of $112,646.01 annually.
PURPOSE:
The MIS Division requests authority to purchase a three year renewal of Microsoft Enterprise and Select licenses from CDW-G, Inc. This Microsoft Enterprise Agreement purchase will include licenses and software assurance for currently licensed copies of:
Previously Covered Applications:
- 600 Microsoft Office
- 600 Microsoft Windows PC Operation Systems
- 600 Core CAL's for access to databases
Systems Added to Plan:
- System Configuration Manager Server
- Server Operating Systems
- SQL Server
This purchase will renew Microsoft desktop operating system licenses for PCs currently utilized by City staff, providing upgrade protection going forward for both desktop and laptop operating systems. Also included in this purchase is Microsoft enterprise licensing for Client Network Access licenses (CAL's), SQL Database licenses and System Configuration Manager licensing. The Microsoft System Center Configuration Manager allows for remote updating of PCs, which allows MIS staff to update all PCs without physically visiting each PC.
BACKGROUND:
The MIS Division has utilized Microsoft's Software Assurance Enterprise Agreement for the past nine years. The first agreement was priced at market value, subsequent years are priced at a 40% discount.
This agreement is required for upgrades to city-owned Microsoft software and systems with no additional cost. Without this agreement licenses cannot be upgraded to new versions. Upgrading systems would require all licenses to be repurchased at full market value.
Each year the City is required to perform a software audit and "true up" process to identify any additional Microsoft licenses that are in use, and pay for them to be brought under the agreement.
DISCUSSION:
The State of Illinois Central Management Services negotiated a volume licensing agreement with Microsoft which allows Illinois municipalities to purchase licenses at highly discounted rates. Licenses are priced as if the City of Aurora were purchasing a quantity of 40,000 renewals.
The State's Microsoft Enterprise license agreement is managed thru Microsoft's Large Account Reseller CDW-G, Inc. The agreement number is CMS2595580.
Purchasing Microsoft licenses thru the Enterprise license agreement will be cost effective in the long term and creates a more stable annual budget allocation for subsequent years. .
Funds are available for this purchase in MIS account 101-1232-419.38-11.
IMPACT STATEMENT:
There is no impact on the General Public, or other departments and divisions, or any outside agencies. However, the agreement does offer significant cost savings to the city.
RECOMMENDATIONS:
I request approval to enter into a three year agreement for the purchase of Microsoft Enterprise Licenses for the MIS Division under the State of Illinois Central Management Services' contract with CDW-Government in the amount of $112,646.01.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the purchase of a three year Microsoft Enterprise License renewal From CDW-G, Inc. for the MIS Division under the State of Illinois Central Management Services contract in amount the amount of $112,646.01 annually.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the State of Illinois has entered into contracts with various products and server vendors throughout Illinois based on a statewide bidding procedure; and under said contract, political subdivisions of the State many purchase items under the terms established by the State; and
WHEREAS, CDW-G, Inc was the chosen bidder for the State of Illinois contract with Microsoft, and is authorized to sell to the City its Microsoft License Renewals under the Enterprise Agreement with Microsoft; and
WHEREAS, the MIS Division desires to renew the licensed maintenance of Microsoft Products from CDW-Government, Inc., in the amount of $112,646.01 annually under the State of Illinois Enterprise Agreement with Microsoft; and
WHEREAS, the 2015 MIS budget provides sufficient funds in account 101-1232-419.38-11; and
WHEREAS, under Section 2-335 (a) (5) of the Aurora code of Ordinances, competitive bidding procedures and requirements may be dispensed with when using any agreement involving acquisition of service, equipment or article entered into with another government entity.
WHEREAS, if required your last whereas statement should reference the section of code that allows your action (i.e. pursuant to Aurora Code Section 2-335(a)(3) the desired product is provided by only one source in this situation; and)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: The City authorizes the purchase of Microsoft Enterprise License renewals for the MIS Division under the State of Illinois Central Management Services contract with CDW-Government, Inc. over a three year term in the amount of $112,646.01 annually, and does hereby further authorize its Purchasing Director to issue the necessary orders to implement purchase of same.