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TO: Mayor Richard C. Irvin
FROM: Shanita Thompson, Director IT Operations
DATE: March 6, 2018
SUBJECT:
Request authorization to enter into a three year agreement for the purchase of Microsoft Enterprise License annual renewals for the Information Technology Division under the State of Illinois Central Management Services contract with CDW-Government, Inc not to exceed $294,264 annually.
PURPOSE:
The Information Technology 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 previously covered applications and Office 365.
This purchase will renew Microsoft desktop operating system licenses for PCs currently utilized by City and APD 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 (both for CAD/RMS and Non-CAD), SharePoint Server, Data Center and System Configuration Manager licensing.
BACKGROUND:
The Information Technology Division has utilized Microsoft’s Software Assurance Enterprise Agreement for the past twelve years. 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 the City's software at $294264 would require all licenses to be repurchased at full market value at the cost of $344,289, which is 17.58% higher than the price quoted.
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. This is also the first year that both APD and City software has been combined and bought together. The City of Aurora has also been on two different email platforms. By combining them and going to Office 365, it will allow gained efficiencies. Having one uniform email and platform can prevent email issues that the city's IT department has been recently been experiencing. Communications between both entities will improve. Last year each EA renewal was done separately, $128,000 for the city side and $68,000 for the APD. This was without Office 365.
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. The State of Illinois Software Contract (attached copy) provides customers a 17.58% discount off Estimated Retail Price.
The State’s Microsoft Enterprise license agreement is managed thru Microsoft’s Large Account Reseller CDW-G, Inc. The agreement number is CMS6945110. Funds are available for this purchase in IT account 101-1380-419.38-11 from a decision package that was approved for Office 365 in the 2018 budget in the amount of $159,200 and in 101-1380-419.64-10 for $6,000. For the remaining products we already had Microsoft renewal money budgeted each year in account 101-1380-419.38-11 in the amount of $129,264.
IMPACT STATEMENT:
There is no impact on the General Public, or other departments and divisions, or any outside agencies.
RECOMMENDATIONS:
It is recommended that the approval to enter into a three year agreement for the purchase of Microsoft Enterprise Licenses for the Information Technology Division under the State of Illinois Central Management Services’ contract with CDW-Government in the amount of $294,263.88 annually.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorization to enter into a three year agreement for the purchase of Microsoft Enterprise License annual renewals for the Information Technology Division under the State of Illinois Central Management Services contract with CDW-Government, Inc not to exceed $294,264 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 Information Technology Division desires to renew the licensed maintenance of Microsoft Products from CDW-Government, Inc., in the amount of $294,264 annually under the State of Illinois Enterprise Agreement with Microsoft; and
WHEREAS, the 2018 Information Technology budget provides sufficient funds in account 101-1380-419.38-11; 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 Information Technology Division under the State of Illinois Central Management Services contract with CDW-Government, Inc. over a three year term in the amount of $294,264 annually, and does hereby further authorize its Purchasing Director to issue the necessary orders to implement purchase of same.