Title
Microsoft Enterprise Agreement
History
The Village previously purchased its Microsoft desktop, server, database, and email software as a one-time perpetual license either as an OEM from the hardware manufacturer or under a Select Agreement with Microsoft. This enabled the Village to continue to use these licenses for years until they decided to budget to purchase the upgrades for these licenses. Microsoft is moving its customers to subscription-based licensing from the older perpetual based licenses. Microsoft has built-in version obsolescence into its licensing program and will not provide security updates to customers who are using older unsupported versions of their software. The Microsoft Enterprise Agreement (EA) will consolidate the Village's licenses and provides software assurance to give the staff access to the latest version of these Microsoft software licenses, enabling the Village Microsoft software to be updated and secure. The EA includes software licenses for System Center Configuration Manager for automating software deployment; Exchange email; Microsoft Office; Windows desktop and server operating systems; Azure cloud storage; as well as SharePoint and Teams which will facilitate communication, collaboration, and mobility between village staff.
The Microsoft Enterprise Agreement would be purchased from CDW-G through the State of Illinois CMS (Central Management Services) contract joint purchase. Only CDW-G is authorized to sign up EA enrollments under the State's Master Agreement with Microsoft. The State's Master Agreement with Microsoft consists of negotiated terms between the State of Illinois and Microsoft to meet state procurement laws and the Federal Burea of Investigation Criminal Justice Information System (CJIS) requirements. Microsoft will only negotiate one Master Agreement per state which includes CJIS. CJIS certification is a necessary requirement for the Village plans to move more of its applications and server infrastructure to the Microsoft Azure Cloud. Staff is recommending this item for approval by the Technology, Innovation, and Performance Improvement Committee and the Board of Trustees on the same night so that staff could more quickly implement software (included in this purchase) that automates the pushing security updates to workstations as well as setup single sign on for the new UltiPro software.
This agenda item is being considered by the Technology, Innovation, and Performance Improvement Committee and the Village Board of Trustees meeting on the same night. Village Board approval will be contingent upon receiving an approval recommendation at the Technology, Innovation, and Performance Improvement Committee meeting.
...Financial Impact
Approval of the Microsoft Enterprise Agreement will require annual payments of $185,958 to CDW-G for the term of the three (3) year agreement. Although this purchase was not included in the Fiscal Year 2019 Budget, excess funds are available in the BIS Online Services account due to the delayed implementation of Tyler Technologies Work Management and Energov. Funding for the payment due in 2020 will be included in the proposed Fiscal Year 2020 Budget. Payment is due within thirty days of signing the agreement.
Recommended Action/Motion
I move to recommend to the Board to approve procurement of a three (3) year Microsoft Enterprise Agreement from CDW-G with annual payments of $185,958 for a period of three years, plus a 5% contingency for each of the three (3) years.