Item Description:
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Neg Agmts with Microsoft Corporation for Microsoft volume licensing, 01/01/27-12/31/29; Agmt M57026 with Insight Public Sector, Inc. for the purchase of Microsoft products and services, 06/11/26-02/20/30, NTE $42,000,000
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate with Microsoft Corporation for Microsoft volume licensing, during the period January 1, 2027 through December 31, 2029; that following review and approval by the County Attorney’s Office, the County Administrator be authorized to sign Microsoft Enterprise Agreement enrollments and other volume licensing documents on behalf of the county; and
BE IT FURTHER RESOLVED, that Agreement M57026 with Insight Public Sector, Inc. serving as a reseller for Microsoft products and services, during the period of June 11, 2026 through February 20, 2030, in an amount not to exceed $42,000,000, be approved; that the Chair of the Board be authorized to sign the Agreement on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
Hennepin County has had a Microsoft Enterprise Agreement since 2011 to provide a unified and centrally managed foundation for enterprise technology. The Enterprise Agreement supports the county’s use of productivity applications, cloud services, security capabilities, developer tools, and remote access systems. Microsoft remains the county’s largest provider of business-critical software used every day by staff, contractors, volunteers, and library patrons.
The county’s current Enterprise Agreement expires at the end of 2026. Board authorization is required to continue licensing Microsoft products and services for the 2027-2029 term. Renewing the Enterprise Agreement ensures continuity for essential operations and maintains compatibility with internal systems and external partners.
The Enterprise Agreement provides consistent pricing, standardized licensing, and predictable costs over the three-year term. As a government entity, the county receives the highest level of programmatic discounts available, and prices remain locked throughout the contract period. This structure simplifies license management and ensures access to the most updated versions of Microsoft software.
The Enterprise Agreement supports enterprise-wide productivity tools used by staff, volunteers, and contractors, including Microsoft Word, Excel, PowerPoint, Outlook, Teams, and SharePoint. These tools also support public-facing devices, such as library workstations, kiosks, and virtual desktops, giving residents modern and accessible tools to complete essential tasks.
The Enterprise Agreement secures the county’s collaboration and communication platforms, including Microsoft Teams, which has become a core tool for remote work, virtual meetings, cross‑department communication, and service delivery. Security and compliance services provided through Microsoft 365 support data protection, identity management, threat detection, and regulatory compliance across county systems.
The Enterprise Agreement includes the Power Platform - Power Apps, Power Automate, Power Pages, and Power BI - which enables rapid development of digital forms, workflows, dashboards, and department-specific applications. These tools support modernization efforts and allow business areas to create efficient solutions without custom development.
The Enterprise Agreement also includes Azure, which is Microsoft’s cloud computing platform. Azure continues to expand the county’s ability to deliver digital services reliably and securely. Each application is individually evaluated on a case-by-case basis to determine whether Azure cloud hosting or on-premises hosting is the better fit. By using Azure, the county will avoid an estimated $8 million in on-premises costs over the upcoming three-year term.
Infrastructure licensing covered under the Enterprise Agreement, including Windows Server, SQL Server, GitHub for Copilot, and Visual Studio, supports the county’s development teams’ mission-critical service delivery, and ensures compatibility for hundreds of internal applications.
Microsoft provides Enterprise Agreement licensing to local governments through authorized resellers. In 2026, the county completed a competitive process to select a reseller available under cooperative purchasing agreements. Insight Public Sector, Inc. was selected based on lowest pricing and demonstrated experience supporting government organizations.
The Enterprise Agreement directly supports the county’s disparity reduction, digital equity, and sustainability goals. Library patrons benefit from free access to Microsoft Office applications, enabling job searches, homework support, resume creation, and essential digital literacy. Accessibility tools within Microsoft products support individuals with visual, hearing, motor, and cognitive challenges. Moving workloads from county data centers to Azure cloud services also advances sustainability goals by reducing energy use and lowering carbon emissions.
This technology request has been reviewed and approved by the office of the Hennepin County CIO.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval