Title
MOTION TO APPROVE AN ENTERPRISE AGREEMENT WITH MICROSOFT AND THE PURCHASE OF VARIOUS ESSENTIAL MICROSOFT SOFTWARE PRODUCTS FOR THE CITY OF PEMBROKE PINES, FROM INSIGHT PUBLIC SECTOR, INC., IN AN AMOUNT NOT TO EXCEED $739,747.27 A YEAR FOR A THREE-YEAR PERIOD, PURSUANT TO SECTION 35.18(C)(7)(I) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS.”
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(7)(i) states, “Software licensing and maintenance with the company from which the software was purchased, or its authorized representative;”
- Section 35.21 of the City's Code of Ordinances is regarding "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval.”
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The City of Pembroke Pines seeks to enter into a Microsoft Enterprise Agreement (EA) with Microsoft Corporation to support the technology infrastructure of the City. The EA will provide volume licensing for essential Microsoft software products, including Microsoft 365 (encompassing the desktop operating system and Office 365), Windows Server, CoPilot, and Microsoft SQL Server.
Implementing the Microsoft EA will enable the City of Pembroke Pines to establish a standardized technology platform, streamlining the management and support of all Windows-based desktops, laptops, and servers. By consolidating software licensing under a single agreement, the City can ensure greater efficiency, consistency, and cost-effectiveness.
2. Microsoft representatives Carolina Gomez, Ashley Johnson and Tiffany Lewis informed the City’s Director of Technology Services of recent changes to the Microsoft Master Agreement. The Microsoft representatives stated that the City’s current Master Agreement is outdated and the City’s current provider, Crayon, is no longer an authorized reseller.
The Microsoft representatives further directed the City’s Director of Technology Services to reach out to authorized resellers CDW Government LLC, SHI International Corp., and Insight Public Sector, Inc.to obtain quotes.
3. The Procurement Department requested quotes from all three authorized resellers. Quotes were received from the following vendors:
|
Vendor |
Total |
|
Insight Public Sector, Inc. |
$2,219,241.81 |
|
SHI International Corp. |
$2,292,870.69 |
|
CDW Government LLC |
$2,299,184.61 |
4. Microsoft had previously clarified with the City’s Director of Technology Services that new agreements are only available for a minimum of three-year terms, and that the City would not be able to enter into an agreement for a one-year period as was the previous practice. The cost of the three-year agreement quoted above will be split evenly per year for an annual amount of $739,747.27.
5. Request Commission to approve an enterprise agreement with Microsoft and the purchase of various essential Microsoft Software Products for the City of Pembroke, from Insight Public Sector, Inc., in an amount not to exceed $739,747.27 a year for a three-year period, pursuant to section 35.18(C)(7)(i) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $739,747.27 annually for a three-year-period.
b) Amount budgeted for this item in Account No: Funds are available in account # 001-513-2002-552652-0000-000-0000 (Non-capital Software & License)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project: Not Applicable.
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Expenditures |
$739,747.27 |
$739,747.27 |
$739,747.27 |
$0 |
$0 |
|
Net Cost |
$739,747.27 |
$739,747.27 |
$739,747.27 |
$0 |
$0 |
e) Detail of additional staff requirements: Not applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable