SHI GOVERNMENT SOLUTIONS, INC for approval of spending authority in an amount not to exceed $2,041,842.90 for Microsoft Server Cloud Enrollment Licenses and Maintenance through the Texas Department of Information Resources for the Houston Information Technology Services - 3 Years - HITS Central Services Chargeback and Equipment Acquisition Consolidation Funds

This item should only be considered after passage of Item 36 above

S17-H25972 - Approve the spending authority for the purchase of a Microsoft Server Cloud Enrollment for SQL licenses and maintenance in an amount not to exceed $2,041,842.90 for Houston Information Technology Services.

SPECIFIC EXPLANATION:

The Interim Chief Information Officer and the Chief Procurement Officer recommend that City Council approve the spending authority to purchase a Microsoft Server Cloud Enrollment agreement (SCE) for Structured Query Language (SQL) licenses and maintenance for a term of three years in an amount not to exceed $2,041,842.90 through Texas Department of Information Resources (DIR) for HITS.  Additionally, it is also recommended that authorization be given to issue purchase orders, as necessary, to the DIR Go Direct vendor, SHI Government Solutions, Inc. 

The Server Cloud Enrollment includes all SQL applications, licenses and maintenance for both the Microsoft Windows Server operating system, as well as the entire suite of products included in Microsoft System Center.  Microsoft System Center is a vital management component that allows proactive monitoring of system performance, maintenance of servers and permits virtualization of a large portion of the physical server environment, thereby reducing hardware and other support costs. Additionally, it is used to deploy upgrades to PCs, Laptops, Servers, and mobile devices. 

SQL is used to communicate with a database. According to ANSI (American National Standards Institute), it is the standard language for relational database management systems.

The SCE will consolidate different agreements, which will simplify licensing management through standardization, making it easier to plan, administer, and adapt. By consolidating to one agreement, some of the smaller initial license purchases will benefit from increased or “stepped-up” services.  Additionally, HITS will “true up” or ensure license compliance with this agreement to include Azure.  Azure is a computing platform and infrastructure created by Microsoft in a remote data center, cloud hosting; providing data center space diminishing on premise hardware cost for storage and servers.   

The SCE provides new flexible terms for Microsoft Azure, better Azure pricing, application license mobility to the cloud through Software Assurance, new System Center benefits for managing Azure resources, and new subscription options. Packaging these benefits in a single enrollment provides more options than ever for operating in a dynamic and hybrid environment. 

M/WBE Participation:

Zero-Percent Goal Document Approved by the Office of Business Opportunity

PAY OR PLAY:

This procurement is exempt from the City’s Pay or Play Ordinance. Bids/proposals were not solicited because an Interlocal/Cooperative Purchasing Agreement is being utilized for this purchase.

HIRE HOUSTON FIRST:

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

Fiscal Note:

Funding for this item is included in the FY2017 Adopted Budget.  Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.

____________________________________              ___________________________________

John J. Gillespie, Chief Procurement Officer           Department Approval Authority Signature

Finance/Strategic Procurement Division

$1,616,842.90 - HITS Central Services Chargeback Fund (1002)

$  425,000.00  -  Equipment Acquisition Consolidation Fund (1800)

$2,041,842.90 -  Total