APPROVE spending authority in the amount not to exceed $60,124,498.65 for Purchase of Enterprise Agreement Licenses (EA), Server Cloud Enrollment Licenses (SCE) and Related Software Maintenance through the Texas Department of Information Resources for Houston Information Technology Services and Various Departments, from SHI GOVERNMENT SOLUTIONS, INC - Through September 30, 2028 - Central Service Revolving and Other Funds

SR1706153899 - Approve a motion for spending authority in the amount not to exceed $60,124,498.65 for the purchase of Enterprise Agreement Licenses (EA), Server Cloud Enrollment Licenses (SCE), and related software maintenance from SHI Government Solutions, Inc., through the Texas Department of Information Resources (DIR) for Houston Information Technology Services (HITS) and various departments.

Specific Explanation:

The Chief Information Officer and the Chief Procurement Officer recommend that City Council approve a motion for spending authority in the amount not to exceed $60,124,498.65 for the purchase of enterprise agreement licenses, server cloud enrollment licenses, and related software maintenance through the Texas Department of Information Resources (DIR) and that authorization be given to issue purchase orders, as necessary, to the DIR vendor SHI Government Solutions, Inc., for Houston Information Technology Services (HITS) and various departments. This request is expected to sustain the City’s Microsoft licenses and the necessary software maintenance through September 30, 2028.

This request will allow the City to purchase Microsoft enterprise agreement licenses and essential software maintenance for a full range of Microsoft products and services. This includes but is not limited to Microsoft 365, including Outlook, PowerPoint, Word, Excel, Teams as well as security solutions. The purchase will also allow the City to have flexibility to acquire key software such as Windows Server, SQL Server, SharePoint, and Microsoft System Center. These tools are critical for maintaining server performance, enabling virtualization of the City’s physical server environment, and reducing hardware and support costs. Additionally, this purchase ensures the City remains compliant with software licensing requirements while enhancing security and data protection across all City departments.

This is a multi-year agreement to purchase licenses and software maintenance for the fleet of the City’s computers. This agreement supports the ongoing modernization of the City’s technology to current software standards including the capability to utilize Azure, Microsoft’s trusted cloud platform, and ensuring that the City remains in compliance with software licensing requirements.

This recommendation is made pursuant to subsection 271.102(c) of the Texas Local Government Code, which provides that "a local government that purchases goods or services from a cooperative purchasing program or organization satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services.”

M/WBE Participation:

M/WBE Zero Percentage Goal document approved by the Office of Business Opportunity.

Hire Houston First:

This procurement is exempt from the City’s Hire Houston First Ordinance. Bids/proposals were not solicited because the department is utilizing an Interlocal/Cooperative Purchasing Agreement for this purchase.

Fiscal Note:

Funding for this item is included in the FY2026 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policies.

________________________________________         _______________________________

Jedediah Greenfield, Chief Procurement Officer        Lisa Kent, Chief Information Officer

Finance/Strategic Procurement Division                     Houston Information Technology Services

$55,151,354.88 - Central Service Revolving Fund (1002)

$  4,191,837.42 - HAS Revenue Fund (8001)

$     781,306.35 - W & S System Operating Fund (8300)

$60,124,498.65 - Total