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Consent

Brentwood City Commission Agenda

Meeting Date:	04/09/2018
Approval of Contract Documents with Microsoft Corporation and Dell Inc. for Licensing of Office 365 and Purchase of Related Products and Services
Submitted by:	Michele Kramer, Technology
Department:	Technology

Information

Subject

Resolution 2018-26 - Authorizing Approval of Contract Documents with Microsoft Corporation and Dell Inc. for Licensing of Office 365 and Purchase of Related Products and Services

Background

In 2015, the Technology Department recommended changing the type of licensing for Microsoft Office from a traditional localized software model to an Internet (cloud) based model called Office 365. The City Commission approved a three-year agreement (Resolution 2015-15) in March 2015 providing for purchase through a state contract held by Dell Inc.

The three-year term is expiring, therefore a new three-year agreement for the purchase of Office 365 is required. Dell Inc. is the City's current vendor that provides licenses for Office 365. However, to renew the Office 365 licenses, the City will still be required to execute separate product purchase and licensing documents. The annual cost for the proposed Office 365 plan varies based on level of subscription. There are three levels of subscriptions and are as follows:

Type of License	Use	Qty	Per Year	Total
E1 License	Friends of the Library	9	$75.72	$681.48
E3 License	All City Employees	272	$198.84	$54,084.48
F1 License	Used for Shared Calendars	22	$37.92	$834.24
Total Annual Cost				$55,600.20
Total 3 Yr Contract Amt				$166,800.60

The annual cost is $55,600.20, and is budgeted by each department for their respective employees. The total number of users can be adjusted during the three-year term and there is a final reconciliation or “true up” at the end of the term. This year we added three additional licenses. The total anticipated cost over the life of the agreement is $166,800.60. See attached spreadsheet for cost breakdown per department.

Please contact the Technology Director with any questions.

Staff Recommendation

Staff recommends approval of the accompanying contract documents for the purchase of Office 365.

Fiscal Impact

Amount :	$166,800.60
Source of Funds:	General Fund/Water & Sewer/ECD
Account Number:	Multiple

Fiscal Impact:

The annual cost for licensing is $55,600.20, and is budgeted by each department for their respective employees. The total number of users can be adjusted during the three-year term and there is a final reconciliation or “true up” at the end of the term. The total anticipated cost over the life of the agreement is $166,800.60. See attached spreadsheet for cost breakdown per department.

Attachments
Resolution 2018-26
2018 O365
2018 O365-2
2018 O365-3
2018 O365-4
2018 O365-5
Cost by Department
Signed Resolution