Description: AGENDAHED.JPG
 

Item No:                    5K.

 

Meeting Date:           November 26, 2012

 

From:                          Mike Thornton, Purchasing Manager for

                                    Stan Carter, Director of Information Technology

 

Subject:                      Resolutions approving a three year agreement for Microsoft Volume Licensing of computer software

 

 


Staff Recommendation:

Staff recommends approval of the resolutions allowing the Mayor to sign Microsoft Volume Licensing program forms and approval of the three year term for a total of $318,449.10 paid in annual installments of $106,149.70 paid to SHI.

 

Analysis:

The City of Leesburg uses various desktop and back office Microsoft computer software products in the various day-to-day operations of the City.  The City is required to own a software license for each of the products used for each employee using that product.  This purchase is for those licenses through Microsoft Volume or Enterprise License program.  The City is purchasing the licenses through SHI which is a Florida State Contract reseller of Microsoft products.

 

The City will be purchasing licenses for the following Microsoft products in the quantities listed:

 

Item Description

Quantity of Licenses

Annual Cost per License

Extended Annual Cost

Microsoft Office Standard (Word, Excel, etc)

400

$   109.00

$43,600.00

Windows Upgrade 7 & 8

400

$     43.00

$17,200.00

Core Client Access License (CAL)

450

$     69.00

$31,050.00

Exchange Server-Standard (e-mail)

1

$   313.95

$     313.95

SharePoint Server

1

$2,325.75

$  2,325.75

SQL Server Standard

4

$1,642.00

$  6,568.00

Core Infrastructure Server Site

1

$2,892.00

$  2,892.00

Software Assurance Open License Program

1

$2,200.00

$  2,200.00

Total Annual Cost

$106,149.70

 

The initial term of this agreement is three years.  Following the initial term the City will have the option of extending the agreement an additional three years.  It is during this additional three year term the City will realize savings from the Microsoft Software Assurance Program.  During the additional term the annual cost will be reduced to $63,549.50 for the same licensed items previously listed.  The total three  year cost on the second term will be $190,648.50.  This decrease will result in an annual savings of $42,600.20 and a total savings over three years of $127,800.60.

 

This agenda item is an all or none.  All three attached resolutions must be approved or all three must not be approved.  No one resolution can stand on its own for this project.

 

SHI is an authorized Microsoft reseller and an awarded vendor on the State of Florida contract for IT software.

 

Options:

1  Approve each of the resolutions required for the City to enter into this agreement with Microsoft

   Corporation and SHI; or

2. Such alternative action as the Commission may deem appropriate.

 

Fiscal Impact:

The current budget includes this year’s annual payment, year two and three will be included in subsequent budgets.  The IT division is 90% allocated to the Utilities so the General Fund will only pay 10% a year or $10,614.97.

 

Submission Date and Time:    11/21/2012 7:11 PM____

 

Department: _Information Technology___

Prepared by:  _Mike Thornton_______                     

Attachments:         Yes____   No __X___

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _001-1633-513-5210___

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________