The initial Microsoft Enterprise Agreement was approved in July 2003. This agreement allowed the city to standardize on the Microsoft Office Suite of products including Word, Excel, PowerPoint, Outlook and also Microsoft Server and Applications such as Windows Server, Exchange Email Server, SharePoint Intranet Server, and SQL Database Server. Virtualization has changed the way servers are licensed.  This cycle Microsoft is converting to "user based licensing" for all desktop products.  IT is in the process of moving all users to the Office 365 Government Cloud.  This move allows us to use the Office 365 Suite of products on up to 5 devices per user including tablets, phones and desktop.  Moving to user based licensing will cost an additional $30,051.84 per year.

While working with our Microsoft account representative, we also realized that we needed to add additional licenses for a number of products to stay in compliance with the Enterprise Agreement.  This includes changing the way our central SQL Database Servers are licensed for future upgrades.  These changes added an additional $52,813.64 to the annual cost.

The advantages of a Microsoft Enterprise Agreement are:

1. Standardization – all city computer users have a common set of software products that are widely used by both government and business in the region and across the globe than can be used on up to five devices per user including PCs (Windows and Mac), Tablets and Smartphones.

2. License Management - all full time city employees legally have a copy of the Microsoft Office 365.  We are also licensing a number of users as "email only" as they do not use a computer on a daily basis but do need to have access to city email.  There is a provision for an annual “true-up” to add additional servers and we can add new users as needed on a monthly basis.

3. Budget – The city has budgeted this operational cost for this year and will be able to budget the same amount for FY 17 and FY 18 at the same amount. Additional Office 365 users can be added at any time during the 3 year agreement for the number of months left on the agreement.

4. Upgrades – Microsoft releases major MS Office upgrades and server software every couple of years. By having all software on the Enterprise Agreement, the city can take advantage of the new versions without additional expense.

5. NRS Chapter 33.2 115(h) exempts computer software items from competitive bid. However, this purchase utilizes the joinder provision allowed under NRS 332.195 wherein the source contract quoted by EnPointe is one awarded by the State of Nevada and NASPO ValuePoint Contract (formerly known as the Western States Contracting Alliance or WSCA).

EnPointe Technologies has provided excellent services over the past 13 years. Staff recommends that the city exercise the 3 year agreement through September 2018.

The City Council could not approve the Microsoft Enterprise Agreement renewal and direct staff to pursue other alternatives.

I move that the City Council approve the Microsoft Enterprise agreement and authorize staff to finalize the purchase through EnPointe Technologies as outlined in the agenda item.