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TO: Mayor Thomas J. Weisner
FROM: Andrew D. Feuerborn, Police Technical Services Director
DATE: December 4, 2014
SUBJECT:
Request a resolution authorizing the purchase of Microsoft Enterprise License renewals for the Aurora Police Department under the State of Illinois - Central Management Services' contract with CDW-Government, Inc. over a three year term for an amount not to exceed $58,260 annually.
PURPOSE:
The Police Technical Services Division of IT requests permission on behalf of the Police Department to purchase the renewal of Microsoft Enterprise and Select licenses from CDW-G. This Microsoft Enterprise Agreement purchase will include licenses and software assurance for copies of:
Microsoft Office Professional
Microsoft Windows Professional
System Configuration Manager Server
Core CAL Licenses
SQL Server
This purchase will renew Microsoft desktop operating system (OS) licenses for PCs currently utilized by the Police Department 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 "patch server" license referred to as the System Center Configuration Manager assesses, deploys, and updates servers, clients, and devices across physical, virtual, distributed, and mobile environments to keep them current with features enhancements and security updates/patches.
BACKGROUND:
Microsoft's Enterprise Agreement provides a means by which the City can spread the cost of purchasing Microsoft licenses over the lifetime of the products. The first three years of the product usage fees in effect pay for the purchase of the original license. The purchase of the majority of the Police Department's licenses occurred between 2011 and 2014. From 2014 forward the Police Department licenses are simply renewed unless additional licenses are acquired. On year four and subsequent years the City is charged a lesser amount to renew maintenance and upgrade protection on the licenses. This entitles the City to use any future versions released by Microsoft for the previously purchased software without having to re-purchase the software when a new version is released. For example, the agreement entitled the City to upgrade from Windows XP to Windows 7 without having purchase Windows 7 at the full product price.
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 allows the City to be flexible in their use of additional licenses over the course of the year, but can also result in an increase to the renewal costs in subsequent years. As a result, it is requested that the resolution authorize for the slow growth of Microsoft licenses over the three years of the agreement in the amount of 5% per year starting with a renewal amount of $52,841.73 in 2014, approximately $55,484 in 2015 and increasing up to $58,257 in 2016. It is therefore requested that the resolution authorize the purchase of Microsoft licenses for an amount not to exceed $58,257.
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's Microsoft Enterprise license agreement is managed thru Microsoft's Large Account Reseller (LAR) CDW-Government, Inc. The agreement number is CMS2595580.
The Microsoft Enterprise licensing model amortizes the purchase price of the license across the first three years. Subsequent year's fees are greatly reduced due to the license having been paid for in the first three years and years four and beyond are simply license maintenance fees. The greatest savings for Microsoft licenses purchased under the Enterprise agreement are experienced in years four and beyond when the license maintenance fees would be approximately 25% to 40% off the original purchase price depending on the software being licensed.
Purchasing Microsoft licenses thru the Enterprise license agreement is expected to be more cost effective in the long term and creates a more stable annual budget allocation for the subsequent years' licensing fees. The State of Illinois contract is effective thru 2015 after which it is expected that the State would renegotiate terms of the contract with Microsoft allowing the City to continue purchasing under the State's purchasing power.
Should this purchase not be approved and paid by December 26, 2014, the City would need to re-purchase the Microsoft licenses at their full price. This could cost City an additional $20,000 to $30,000 dollars.
Sufficient funds are available for this purchase in the SHAPE fund accounts 255-1233-419.38-11 and 255-1233-419.64-10 as well as the General fund account 101-1233-419.38-11 and 101-1233-419.64-10.
IMPACT STATEMENT:
There is no known impact on the General Public, or other departments and divisions, or any outside agencies.
RECOMMENDATIONS:
I request approval of a three year resolution authorizing the Police Technical Services Division to procure Microsoft Enterprise License renewals for the Aurora Police Department under the State of Illinois - Central Management Services' contract with CDW-Government in the amount of $58,257.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the purchase of Microsoft Enterprise License renewals for the Aurora Police Department under the State of Illinois - Central Management Services' contract with CDW-Government, Inc. over a three year term for an amount not to exceed $58,260 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, the Police Technical Services Division desires to renew the licensed maintenance of Microsoft Products from CDW-Government, Inc., for an amount not to exceed $58,260.20 annually for the Aurora Police department under the State of Illinois Enterprise Agreement with Microsoft; and
WHEREAS, CDW-Government, 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 2014 City budget provides sufficient funds for this project in the SHAPE fund accounts 255-1233-419.38-11 and 255-1233-419.64-10 and the General Fund accounts 101-1233-419.38-11 and 101-1233-419.64-10; 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: The City authorize the purchase of Microsoft Enterprise License renewals for the Aurora Police Department under the State of Illinois - Central Managment Services' contract with CDW-Government, Inc. over a three year term for an amount not to exceed $58,260 annually, and does hereby further authorize its Purchasing Director to issue the necessary orders to implement purchase of same.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
Price Quotation Aurora PD EA 12-1-14.pdf, Aurora PD EA Renewal Enrollment Form.doc, State of IL Contract PBC 59558.pdf