S17-H25973 - Approve spending authority for the purchase of enterprise Microsoft software licenses and software maintenance in an amount not to exceed $7,430,569.00 for Houston Information Technology Services.
Specific Explanation:
The Interim Director of Houston Information Technology Services and the Chief Procurement Officer recommend that City Council approve spending authority for the purchase of enterprise Microsoft software licenses and software maintenance for the fleet of City desktops through a consolidated Enterprise Agreement and for the purchase of Microsoft® Office 365™ licensing in an amount not to exceed $7,430,569.00 through Texas Department of Information Resources (DIR) for various City of Houston departments. Additionally, it's also recommended that authorization be given to issue purchase orders, as necessary, to DIR Go Direct vendor, SHI Government Solutions, Inc.
While the City would like to negotiate directly with Microsoft for these licenses/services, Microsoft has stated that they do not sell directly to government entities so the City is required to go to a third party vendor for this transaction. SHI, while one of several resellers, is the current DIR vendor and Houston Information Technology Services and the Chief Procurement Officer have verified that the pricing through DIR provides the best value and lowest pricing available to the city.
The Enterprise Agreement would include the access to and use of the following software and services: Windows 10 including Internet Explorer; Microsoft Office including Outlook, Word, Excel, and Lync; SharePoint; and OneDrive. This action would include all departments except Houston Airport System, Houston Police Department, and Houston Public Library. Council will be asked to take separate action on those departments.
In 2009, HITS on behalf of the City of Houston, negotiated and entered into a tiered, multi-year Microsoft Enterprise License Agreement to purchase licenses and software maintenance for the fleet of city PCs. The purpose of this agreement was to continue the process of updating the City’s technology to current software standards and ensure that the City remains in compliance with stringent software licensing requirements. This agreement was divided into 5 separate tiered agreements and has now been consolidated into one Master Enterprise Agreement to help better manage the City’s needs. This request will ensure the FY17 and FY18 payments.
M/WBE Participation:
M/WBE 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.
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John J. Gillespie, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division
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Estimated Spending Authority
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DEPARTMENT
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FY2017
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OUT YEARS
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TOTAL
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Houston Information Technology Services
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$3,772,779.00
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$3,658,151.00
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$7,430,569.00
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