| Item Title: | Information Technology Department - Contract No. 2018-0833 | SHI Government Solutions - Microsoft Enterprise Enrollment Agreement No. 16185426 / Software License & Maintenance / Volume Licensing | | Submitted By: | Christopher Stathis, Chief Technology Officer, Information Technology Department (915) 546-2041 | | Subject: | Approve and authorize the County Judge to sign the three year software license agreement with SHI Government Solutions, Inc. Funding is available in GF-ITD-MAINT/REP-SOFTWARE. Further, approve the re-allocation of funding from GF-GADM-OPS CONTINGENCIES, GF-ITD-SALARY-FT REGULAR, and GF-ITD-MAINT/REP-SOFTWARE to GF-ITD-MAINT/REP-SOFTWARE. (Contract No. 2018-0833) | | Background: | The County of El Paso has standardized the use of Microsoft software for its desktop, office suite, and infrastructure needs. The Information Technology Department maintains a 3-year contract with Microsoft that provides for a “true-up” mechanism whereby the County self-reports increased license use. In the past, increases to our licenses count was estimated. During fiscal year 2019 budget hearings, a budget of $930,000 for this contract was allocated. In 2018, Microsoft provided a software tool that “audited” actual usage of their products. This audit revealed that ITD’s actual usage was 30% greater than our estimates. This increase in usage has resulted in an unbudgeted, unanticipated substantial increase in licensing costs for the current year and previous years of the contract. In order to utilize the volume pricing, support, maintenance and upgrade features of our enterprise agreement for Microsoft products, we are required to renew this agreement on an annual basis to include licensing audits.
This maintenance agreement is between SHI Government Solutions and the County of El Paso for the renewal of the Software Licenses for Microsoft Enterprise products. As Microsoft does not contract directly with its enterprise clients, we are required to purchase through a Microsoft partner (SHI Government Solutions).
The Texas Department of Information Resources (DIR) Price Schedule was used for volume discount prices and is available for use by State and Local governments.
This maintenance agreement is for a three year term with effective dates from 01-01-2019 to 12-31-2019 under State DIR-TSO-4092 with SHI Government Solutions to be invoiced $1,281,024.08 through the Microsoft Enterprise Enrollment Maintenance Agreement for Year 1. SHI’s pricing is through the State of Texas DIR contract DIR-TSO-4092 from January 1, 2019 to December 31, 2019.
Legal Review was required and has been completed by the County Attorney’s office dated November 27, 2018.
Contingent upon approval from the Purchasing Review Board this agreement will be considered executed.
| | Fiscal Impact: | Funds are available in GF-ITD-MAINT/REP-SOFTWARE (COGF-1000-0000000-431-10-11140-0001-00000-600654) for a total of $1,281,024.08 for a one year term.
Furthermore, approve the transfer of re-allocation funds of $351,025 as outline below:
GF-GADM-OPS CONTINGENCIES (COGF-1000-0000000-431-10-10000-0001-00000-690000-): ($222,000) note: this was previously reserved for ATT O/S amounts that was resolved with prior year utility analysis available funding
GF-ITD-SALARY-FT REGULAR (COGF-1000-0000000-431-10-11140-0001-00000-510011-): ($88,861)
GF-ITD-MAINT/REP-SOFTWARE (COGF-1000-0000000-431-10-11140-0001-00000-600654-): ($40,164)
To
GF-ITD-MAINT/REP-SOFTWARE (COGF-1000-0000000-431-10-11140-0001-00000-600654): $351,025
PROJECTED 3 YEAR FISCAL IMPACT
The fiscal impact forecasted over the next 3 years totals $4,872,175.71
• Year 1 - $1,281,024.08
• Year 2 - $1,775,584.71
• Year 3 - $1,777,136.20
| | Recommendation: | Approve and authorize the County Judge to sign the three year software license agreement with SHI Government Solutions, Inc. Funding is available in GF-ITD-MAINT/REP-SOFTWARE. Further, approve the re-allocation of funding from GF-GADM-OPS CONTINGENCIES, GF-ITD-SALARY-FT REGULAR, and GF-ITD-MAINT/REP-SOFTWARE to GF-ITD-MAINT/REP-SOFTWARE. (Contract No. 2018-0833) | | Prior Action: | No prior court action. | | Strategic Plan: | .. | | Strategic Plan Information: | |
| |