The initial Microsoft Enterprise Agreement was approved by City Council 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 new agreement will consolidate all user licenses under the "Microsoft 365" banner and will allow us to move to the Azure Local and Cloud Security Server and add new mobile funcitionality. Microsoft converted the city to "user based licensing" for all desktop products during the last agreement cycle.  During the past three years, IT moved all users to the Office 365 Government Cloud.  This move allowed the city to use the Office 365 Suite of products on up to 5 devices per user including tablets, phones and desktop.

While working with CDWG, the city's new Microsoft vendor, we realized that moving to the new Microsoft 365 licenses will actually save the city over $91,600 over the new three year contract.

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 the current fiscal year will be able to budget the same amount for FY20 and FY21 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 CDWG is one awarded by the State of Nevada and NASPO ValuePoint Contract (formerly known as the Western States Contracting Alliance or WSCA).

CDWG has provided excellent service for other IT purchases and we are pleased to have them as our new Contract Account representatives with Microsoft.  Staff recommends that the city exercise the 3 year agreement through September 2021.

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

I move to approve the Microsoft Enterprise agreement and authorize the IT Manager to finalize the purchase through CDWG.