HomeMy WebLinkAbout10 Microsoft M365 G5 Procurement 2022 AGENDA ITEM # 10
TRUCKEE DONNER
Public District
MEETING DATE: October 5, 2022
TO: Board of Directors
FROM: Scott Crow, IT Director / CIO
SUBJECT: Consideration for Renewal of the Microsoft Enterprise Licensing
Agreement with CDWG
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Authorize the General Manager to execute an annual contract with CDWG for a 3 year
term for the District's Microsoft Enterprise Licensing Agreement of $72,224.53 annually
for a 3 year total of $216,673.59.
BACKGROUND:
Microsoft offers their Enterprise Licensing Agreements only in 3 year terms. The District's
current 3 year Microsoft agreement expires 10-31-2022 and only provides licensing for
Windows operating system, on-premise servers and client access, email virus scanning,
and Microsoft Office Suite products.
ANALYSIS:
After much discussion with District employees about their computing needs and digital
workspaces including an evaluation of the current state of the IT infrastructure, it was
determined that moving to the Microsoft 365 G5 licensing model would allow the District
the best opportunity to enhance utility operations, customer service, and security. The
District's previous and current Microsoft licensing model is an ala carte method of paying
for individual Microsoft product licenses while the Microsoft 365 G5 model is a buffet style
approach of being offered many if not all of the Microsoft products within Windows
operating system, Office 365 products, and mobile and security suite products allowing
the District to utilize any and all at a single cost. Based on the District's needs, this method
is more cost efficient and will allow the District to build out a modern workforce computing
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model in a secure and productive manner with best-of-breed tools including an advanced
suite of security offerings.
Another considering factor is we are also starting to see our current Electric and Water
software manufacturers moving to cloud based mechanisms for providing service which
is another reason for moving to the Microsoft 365 licensing model as it will allow the
District to more securely accommodate these moves to the cloud.
Section 3.08.060 of District Code allows vendors to Joint Purchase with the State of
California and Other Public Agencies. Due to TDPUD employee count being under 250,
the expiring contract as well as the new contract is under the state of California master
contract and priced using the city of Riverside, CA contract # PSA-0001522.
OBJECTIVES & GOALS:
This item is in support of the following goals and objectives:
1.05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient and fiscally responsible manner.
1.05.030 Goals:
1.4 Develop and implement high standards of customer service.
1.5 Develop and implement high operational standards, procedures, and Codes of
Conduct.
6.1 Utilize modern, cost effective work methods and equipment.
FISCAL IMPACT:
The three year total of $216,674 will be amortized to operating expense over the
contract's applicable 36 months and equates to an annual cost of$72,225. Cost charged
to Information Technology cost center's 9.920.00.483 Licensing, Maintenance & Support
account code.
To date, the District has been purchasing various Microsoft software licenses on an a la
cart basis, and for the most recent annual cycle a total cost of $30,188. The subject
contract has an annual cost of $72,225, which is $42,037 greater.
The Information Technology cost center (IT) has an annual operating costs (non-payroll
related) budget in 2022 of $1,288,800 and is forecasted to be under-budget for 2022 by
19% or $257,800. The 2023 budget for annual operating costs (non-payroll related) is
$1,306,264. Including the subject incremental $42,037, annual operating costs are
forecasted to be at or below budget in 2023. In total for 2022, including payroll, IT is
running YTD 11% below budget and is forecasted to end the year 10% or $250,000.
With this new enterprise licensing agreement with Microsoft, staff estimates over the next
18-24 months, certain non-Microsoft related operating costs will be reduced, ie not
renewed. At this time the amount of savings is not readily forecastable. The impact of
subject contract for FY24 & FY25, as well as any identified savings referenced in previous
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paragraph, will be included in the summer/fall of 2023 budget cycle for FY24 & FY 25
Budget.
ATTACHMENTS:
None
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