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Home My WebLink AboutV(L) Approval and Authorization for Mayor and City Clerk to Execute Enterprise Agreement with Microsoft for Server Software and Licenses Agenda 9-02-2003 Item V L Page 1 of 2 S. ScoMayorVandrift �reCeoter of Good L1`` Commissioners anny Howell,District 1 tt Anderson,District 2 City Manager Johnson,District 3 Jim Gleason s J.Parker,District 4 STAFF REPORT TO: The Honorable Mayor and City Commissioners FROM: Brian Ross,Information Systems Director DATE: July 16, 2003 RE: Waive formal bid process for purchase of Microsoft server software and enroll in an Enterprise Agreement(EA). ISSUE Should the Mayor and Commission authorize the purchase of Microsoft server software from the state contract instead of going through the City's formal bid process and enroll in the Microsoft Enterprise Agreement(EA)for a 4-year term? BACKGROUND/DISCUSSION This year,Information Systems is upgrading the City's file servers to provide additional features, increased speed, and additional disk space. To make the servers functional, software is required. Each server needs a copy of Windows 2003 Server for its operating system. Also, some servers require additional software to provide e-mail, Internet, intranet access, databases, management, and data collaboration services. The City currently uses Microsoft products for these services and has invested much time and money to train staff in the use, support, and maintenance of these products. Using Microsoft's latest server products eases the transition of the servers by enabling connectivity between the old and new servers while the migration is taking place. This easy migration reduces the amount of downtime for the City's servers since desktops and servers can be upgraded while the system is active. It also enables Information Systems to transfer all existing data and e-mail without having to maintain the older system for public records requests and document retention requirements. Microsoft has a tiered pricing plan based on the volume of software purchased. Due to the small amount of software needed to serve the City's computer systems, we can not obtain a lower price than that offered on the state contract 255-001-01-1 which pools all the government entities' licenses within the state to obtain the lowest price possible. Software House International (SHI)holds this state contract for Microsoft licenses and will charge the City a yearly fee of$7,620.45 for server software and $13,400 for client access licenses for 3 years and $166.64 for media for a three year total of$63,227.99. If a new version of software is forthcoming in the fourth year, we will exercise our option to continue the agreement for the fourth year at the same rate. Only one other vendor, CDW-G, would quote the City for the same software because resellers cannot sell to us at the same price level for purchases less than 250 computers. CDW-G quoted the City $74,769.62 for straight local government licensing and $65,346 for GSA contract pricing for the same software licenses and media,however the payment is due up front and not spread out over the three years of the contract. Both quotes include Microsoft Software Assurance, which provides the City the rights to all future product releases during the term of the three-year agreement. If the City chose to forgo purchasing Software Assurance and bought just the licenses as the new versions were released,the City would pay an additional $60,000 over the next file://C:\Documents%20and%20Settings\bross\My%20Documents\Staff%20Reports\SR_20030902 Wai... 8/26/2003 Page 2 of 2 three years for the same software. Access to Microsoft Servers and enterprise services requires a client license for each desktop. If the City enrolls in an Enterprise Agreement including the Enterprise Agreement Addendum with Microsoft through Software House International,the City receives the rights to update the client access licenses to the latest server software and services licensed by the City for the next three to four years. Without enrolling in the Enterprise Agreement,the City must purchase new applicable client access licenses for each PC every time we upgrade a Microsoft application or operating system on the servers. Such purchases would cost the City an extra$45,000 over the next three years. RECOMMENDATION Staff recommends approval for waiving the City's formal bid process and purchasing Microsoft server software through Software House International as the holder of the Florida State Contract 255-001-01-1 and authorize the Mayor and City Clerk to execute all documents necessary to finalize the purchase of and enrollment into the Microsoft Enterprise Agreement. file://C:\Documents%20and%20Settings\bross\My%20Documents\Staff%20Reports\SR 20030902 Wai... 8/26/2003 SHI Quote#523017 Page 1 of 1 SHIPricing Proposal Quotation#:523017 software house international Quote Valid Until:6/30/2003 City of Ocoee SHI Account Exec Brian Ross Robert Sueter 150 North Lakeshore Dr. 705 Creekwater Terrace#215 Ocoee,FL 34761 Lake Mary,FL 32746 Phone:407-905-3100 x1522 Phone: 407-324-0556 Fax:407-656 7835 Fax: 407-324-0376 AN Prices are in US Dollar(USD) Product Qty Retail Your Price Total 1 Exchange Svr Ent LicAdv Addy Product 1 240100 1567 11 1567.11 Mfg Part#:395-01313 2 SharePoint Portal Svr LicAdv Add't Product License 1 2,401.00 1,525.06 1,525.06 Mfg Part#:H04-00167 3 ISA Server LicAdv 1 Processor Add/Product License 1 779.00 507.84 507.84 Mfg Part#:E84-00229 4 SQL Svr Stnd Edtn UcAdv 1 Processor Add/Product License 1 2,568.00 1,873.37 1,873.37 Mfg Part#:228-01372 5 Sys Mgmt Svr Ent Ed LicAdv Add/Product 1 276.00 176.22 176.22 Mfg Part#:271-00674 6 Windows Svr 2003 LicAdv Add/Product 7 476.00 281.55 1,970.85 Mfg Part#:C11-01043 Total 7,620.45 Additional Comments To process your order,you can e-mail your request to floridateam@shi.com.You can also fax it to 732-868-6055. Please include a contact e-mail address on all orders,as this is required by most vendors Thanks! Please note that this quote reflects your 1st year cost only on these additional licenses.You will be required to make 3 annual payments.Please multiply your total by 3.Also,each license includes 3 full years of Software Assurance Protection to coincide with your Core Cal EA.. file://C:\Documents%20and%20Settings\bross\My%20Documents\Stai'%20Reports\SR_20030902 Wai.._ 8/26/2003 May 09, 2000 Page 1 of 1 June 1, 2003 City of Ocoee Attention of: Brian Ross RE: Microsoft Enterprise Agreement Dear Brian, Software House International is excited about the opportunity to partner with the City of Ocoee on the implementation of the Microsoft Enterprise Agreement. As you will see from this analysis the City of Ocoee will realize tremendous savings in comparison to the select level pricing that your volume would normally qualify. This Component Enterprise Agreement is comprised of the following products: Core CAL'S, which include the following: Windows Cal's SMS Cal's Exchange Cal's SharePoint Portal Cal's Please keep in mind that under EA terms you must license for your entire Enterprise, which we have discussed as consisting of approximately 300 seats. Also,all server licenses are excluded from this agreement and would need to be purchased via the current Select Agreement or as additional product licenses to be added to this EA. A"per desktop"cost will be applied to the 300 desktops that make up your Enterprise. An annual cost for those desktops will be locked in for three(3)years, with an option for a 4th year. Any new desktops added to the Enterprise must be reported on the anniversary dates for the 2nd, 3rd and possibly the 4th year. Your costs are summarized as follows: 1st Year Annual Payment 2/5/2003 200 $67.00 $13,400.00 2nd Year Annual Payment 2/5/2004 200 $67.00 $13,400.00 3rd Year Annual Payment 2/5/2005 200 $67.00 $13,400.00 Total 3 yr Committment $40,200.00 4th Year Annual Payment optional 2/5/2006 200 $67.00 $13,400.00 Total 4 yr Committment $53,600.00 New Desktops added in Year 1(67.00x2.5) 2/5/2003 TBD $167.50 New Desktops added in Year 2(67.00x2.0) 2/5/2004 TBD $134.00 New Desktops added in Year 3 (67.00x1.5) 2/5/2005 TBD $100.50 New Desktops added in Year 4(67.00x1.5) 2/5/2006 TBD $100.50 TBD-Customer Reports the #ofnew Desktops during the year Please feel free to contact me with any questions. Sincerely, Robert S. Sueter Account Executive fil e://C:\Documents%20and%20Settings\bross\My%20Documents\Staff%20Reports\SR_20030902 Wai... 8/26/2003 SHI Quote#550760 Page 1 of 1 SHI Pricing Proposal Quotation#:550760 software house international Quote Valid Until:7/31/2003 City of Ocoee SHI Account Exec Brian Ross Robert Sueter 705 Creekwater Terrace#215 Phone:407-905-3100 Lake Mary,FL 32746 Fax: Phone: 407-324-0556 Fax: 407-324-0376 All Prices are in US Dollar(USD) Product Qty Retail Your Price Total 1 Exchange Server Enterprise 2000 English Disk Kit MLF 1 27.00 20.83 20.83 Mfg Part#:395-02308 2 SharePoint Portal Server 2001 English Disk Kit MLF 1 27.00 20.83 20.83 Mfg Part#:H04-00168 3 Internet Security&Accel Server 2000 English Disk Kit a MLF 1 27.00 20.83 20.83 Mfg Part#:E84-00261 4 SQL Svr Standard Edition Disk Kit 1 27.00 20.83 20.83 Mfg Part#:228-01265 5 System Management Server Enterprise Ed 2.0 Engksh Disk Kit MLF 1 27.00 20.83 20.83 w/SP2 Mfg Part#:271-00898 6 Windows Server Standard 2003 English Disk Kit MLF 3 27.00 20.83 62.49 Mfg Part#:P73-03156 Total 166.64 Additional Comments To process your order,you can e-mail your request to floridateam@shi.com.You can also fax it to 732-868-6055. Please include a contact e-mail address on all orders,as this is required by most vendors Thanks! MS Contract#255-001-01-01 For EA's under quantity 250 all cd's for server products must be purchased separately..Installation key codes will be listed on the cd case and no registration is necessary file://C:\Documents%20and%20Settings\Bross\My%20Documents\Staff%20Reports\SR_20030902 Wai... 8/26/2003 Quotes Page 1 of 2 • Home I About CDWG I Customer Support I View Cart I Log Off jpMt I ligkilithiffitee : : : : : 1 NOSAIvir SmartSearch•" I 14 searoh Contracts Brands Hardware Software Networking Accessories Services 800 328 4239 ►RESOURCES Find Your QuotesBrian Ross • Order Status • My Organization YourQuotes Quote# x Find It • My Account Quote Details ❑ •Account Team •Tradeshows Quote Information • E-Newsletters x • Solutions Library Quote #: KF19349 Need Help? I►MY ORGANIZATION Status: Open } Contact • Accounts Payable Quote Date: 7/16/2003 Marcus • Asset Management Contact: BRIAN ROSS Phone: (866) 224-1240 .. Fax: (312)705-9463 • Software License Description: MICROSOFT QUOTE E-Mail quote to Leigh Tracker #: • Quotes Billed From Address Billing Address • Online Chat CDWG Inc. BRIAN ROSS 200 N. Milwaukee Ave ATTN: CITY OF OCOEE Vernon Hills, IL 60061 150 N. LAKE SHORE DR ONLINrHILP OCOEE, FL 34761 (800) 594-4239 caw•a SITE Mur (407) 905-3100 PRINTABLE VERSION Shipping Address Payment Method CITY OF OCOEE Select payment method during checkout. ATTN: BRIAN ROSS 150 N. LAKE SHORE DR Shipping Method OCOEE, FL 34761 Drop Ship Ground Product Contract CDW Mfg Part# Qty Price Ext,Price MS MBG ISA SRVR LIC/SA 358309 E84-00280 1 1 $1,715.00 $1,715.00 CPU Microsoft Gov Open Licens MS Exchange Server 2000 346125 395-02391 1 $5,325.00 $5,325.00 Enterprise Edition Licens Microsoft SQL Server Standard License&Software Assurance 339561 228-01480 1 $6,350.00 $6,350.00 Microsoft Gov Open Licens MS SharePoint Portal Server 469124 H04-00223 1 $5,030.00 $5,030.00 License&software as Microsoft Core Client Access License, License&Software 365462 W06-00013 200 $250.00 $50,000.00 Assurance MS MEDIA WWF W2003 SRVR STD 482617 P73-00156 1 $24.00 $24.00 MS MEDIA WWF EXCH SRV 2000 482704 312-01977 1 $24.00 $24.00 MS MEDIA WWF SOL SRV STD 2000 482875 228-01265 1 $24.00 $24.00 MS WWF SHARE PORTAL SRV 482811 H04-00168 1 2001 MEDIA $24.00 $24.00 file://C:\Documents%20and%20Settings\bross\My%20Documents\Staff%20Reports\SR 20030902 Wai_.. 8/26/2003 Quotes Page 2 of 2 Standard MS MBG WIN SRV STD LIC/SA Pricing 481797 P73-00452 6 $940.00 $5,640.00 MS WWF ISA SRV 2000 MEDIA 482784 E84-00261 1 $24.00 $24.00 MS WWF SYS MGM SRV 2 482891 271-00898 1 $24.00 $24.00 MEDIA W/SP2 Microsoft Gov Open Licens MS Standard Systems Management Server Pricing 332468 271-01024 1 $560.00 $560.00 S ver. 2.0 ) Sub-Total $74,764.00 Shipping: $5.62 *Tax: $0.00 Grand Total $74,769.62 *Tax may change if this quote is amended. 0 Copyright 2003 CDW Government,Inc. Terms and Conditions of Use I Terms and Conditions of Sate I Legal Disclaimer I Privacy Pledge file://C:\Documents%20and%20Settings\bross\My%20Documents\Stait%20Reports\SR 20030902 Wai... 8/26/2003 Quotes Page 1 of 2 ?! 1'irlfiSltligk Home About 5). iNfMwr SmartSearch'" r- Contracts Brands Hardware Software Networking Accessories Services 800 328 4239 ___ J Find Your QuotesBrian Ross ►RESOURCES !Quote Details� • � Order Status Quote# . n Find • My Organization J Your Quotes`1 • My Account Quote Information 1:1 • Account Team Quote #: KF65433 Need Help? • Tradeshows Status: Open rx1[j Employee Contact Ph Quote Date: 7/17/2003 oto Leigh Marcus • E-Newsletters Contact: BRIAN ROSS Phone: (866) 224-1240 Fax: (312) 705-9463 • Solutions Library Description: GSA QUOTE E-Mail quote to Leigh Billed From Address Billing Address j►MY ORGANIZATION CDWG Inc. BRIAN ROSS • Accounts Payable 200 N. Milwaukee Ave ATTN: CITY OF OCOEE Vernon Hills, IL 60061 150 N. LAKE SHORE DR • Asset Management (800) 594-4239 OCOEE, FL 34761 (407)905-3100 • Software License Tracker Shipping Address Payment Method CITY OF OCOEE Select payment method during checkout. • Quotes ATTN: BRIAN ROSS 150 N. LAKE SHORE DR • Online Chat OCOEE, FL 34761 Shipping Method Drop Ship Ground f ONLINEHELP Product Contract CDW Mfg Part# Qty Price Ext.Price cow•a SITE MAP Microsoft Select Internet [aim Security and Acceleration 369268 E84-00307-3 1 $1,510.00 $1,510.00 Server License&SA la PRINTABLE VERSION Microsoft Select Exchange 2000 Enterprise Server Level D 258870 395-01743 1 $2,666.00 $2,666.00 Microsoft Select SQL Server Standard&Software Assurance 375735 228-01469-3 1 $5,559.00 $5,559.00 MS GSA SHAREPOINT PORTAL SRVR LIC/SA 374718 H04-00231-3 1 $4,525.00 $4,525.00 Microsoft Select Core Client Gsa Access License, License& Schedule 377485 W06-00002-3 200 $228.00 $45,600.00 Software Assurance MS WWF W2003 SRVR STD MEDIA 482617 P73-00156 1 $24.00 $24.00 MS WWF EXCH SRV 2000 MEDIA 482704 312-01977 1 $24.00 $24.00 MS WWF SQL SRV STD 2000 MEDIA 482875 228-01265 1 $24.00 $24.00 file://C:\Documents%20and%20Settings\bross\My%20Documents\Staf%20Reports\SR_20030902 Wai... 8/26/2003 Quotes Page 2 of 2 MS WWF SHARE PORTAL SRV 482811 H04-00168 1 $24.00 $24.00 2001 MEDIA Gsa MS GSA WIN SRV STD UC/SA Schedule 483301 P73-00205-3 6 $839.00 $5,034.00 MS WWF ISA SRV 2000 MEDIA 482784 E84-00261 1 $24.00 $24.00 MS WWF SYS MGM SRV 2 482891 271-00898 1 $24.00 $24.00 MEDIA W/SP2 Microsoft Select Systems Gsa Management Server V2.0 Level Schedule 197789 271-00432 1 $302.00 $302.00 D Sub-Total $65,340.00 Shipping: $5.62 *Tax: $0.00 Grand Total $65,345.62 *Tax may change if this quote is amended. 0 Copyright 2003 CDW Government, Inc. Terms and Conditions of Use I Terms and Conditions of Sale I Legal Disclaimer I Privacy Pledge file://C:\Documents%20and%20Settings\bross\My%20Documents\Staff%20Reports\SR 20030902 Wai... 8/26/2003