Item Description:
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Neg agmts with Microsoft Corporation for Microsoft volume licensing, 01/01/24-12/31/26; Agmt PR00005687 with SHI International Corp. for Microsoft products and services, 11/17/23- 02/19/27, NTE $38,000,000; Neg agmts with Microsoft Corporation for Unified Enterprise Support services, 01/01/24-12/31/26, combined NTE of $3,400,000.
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate agreements with Microsoft Corporation for Microsoft volume licensing, during the period January 1, 2024 through December 31, 2026; that following review and approval by the County Attorney’s Office, the County Administrator be authorized to sign Microsoft agreements and other volume licensing documents on behalf of the county; and
BE IT FURTHER RESOLVED, that Agreement PR00005687 with SHI International Corp., serving as a reseller for Microsoft products and services, during the period of November 17, 2023 through February 19, 2027, in an amount not to exceed $38,000,000, 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; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate agreements with Microsoft Corporation for Unified Enterprise Support services, during the period January 1, 2024 through December 31, 2026, in a combined amount not to exceed $3,400,000; that following review and approval by the County Attorney’s Office, the County Administrator be authorized to sign Microsoft Enterprise Services Work Orders, Amendments, and other Unified Enterprise Support contract documents on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
The county signed its first Microsoft Enterprise Agreement to centralize enterprise applications in 2011. Since then, the county has continued to use the Microsoft platform to streamline its approach to productivity tools, infrastructure, security, developer tools, remote access, and compatibility with internal and external business partners. Microsoft is currently the largest provider of business-critical software used by county staff, which includes:
• Microsoft 365 licensing and productivity technology
• Enterprise mobility and security
• Endpoint management
• Enrollment for Microsoft Windows and SQL Servers, including development tools
• Azure cloud services
The county uses Microsoft professional services to maximize value from Microsoft products. Microsoft Unified Support provides the following services:
• 24/7 technical support
• Technical training
• Cloud support
• Enhanced solutions to provide specific guidance for major business priorities
The county’s current Microsoft Enterprise Agreement and Unified Support agreements expire at the end of 2023. This request seeks contracting authority for a Microsoft Enterprise Agreement and Unified Support covering 2024 - 2026.
The Microsoft Enterprise Agreement provides a single, organization-wide agreement for cloud services and on-premises software for a three-year period. By entering into the Enterprise Agreement, the county will commit to purchasing selected products and services. The Enterprise Agreement with Microsoft provides the county with:
• Discounted pricing- as a governmental entity, the county receives the highest level of programmatic discounts
• Locked-in prices throughout the contract term
• Access to latest versions of software
• Simplified license management
The county benefits from purchasing the following products covered under the Microsoft Enterprise Agreement:
• Productivity tools for 10,600 employees, volunteers and contractors, including SharePoint, Outlook, Word, PowerPoint, Excel. Licensing also covers public-facing devices at the libraries, kiosks and virtual desktops. End client licensing will grow by approximately 1000 licenses for the upcoming Enterprise Agreement term.
• Microsoft Teams video conferencing, which supports improved collaboration and remote work.
• Security tools including data protection, compliance capabilities, identity and threat protection.
• Power Platform, which is a suite of low-code tools that support rapid solution development, aggregate data and create internal and external dashboards, and help make data-driven decisions. This suite includes Power Apps, Power Business Intelligence, Power Pages, and Power Automate.
• Cloud services, which supports digital delivery of resident services. Use of cloud resources will result in approximately $12 million in on-premises cost avoidance over three years.
• Infrastructure licensing for Windows Operating System and SQL Server to support servers, development, and county applications.
Microsoft sells local government its Enterprise Agreement offerings through resellers called Licensing Solution Providers. In spring of 2023, the County reviewed all three (3) authorized Licensing Solutions Providers that were available to the county under cooperative agreements. SHI International Corp. was selected because it offered the lowest pricing and demonstrated experience in proactively managing government accounts.
Microsoft Unified Enterprise Support provides the county with expert guidance and tailored support to modernize the county’s capabilities and services.
Microsoft’s Unified Enterprise Support offerings include:
• Reactive Support- problem resolution for the organization on an unlimited, as-needed basis.
• Proactive Support
o On-demand learning for Microsoft products.
o Enhanced Support Services, including Designated Support Engineer (DSE) engagements that provide specific guidance for major business priorities.
Strategic benefits to be gained through Unified Support include:
• Staying current on the latest technological developments, which allows the county to be an early adopter and informs the county’s technology roadmap.
• Helping the county optimize its technology stack to ensure we are obtaining maximum value for money.
• Increasing IT and end user productivity with the Microsoft toolset.
• Helping the county advance its cybersecurity posture through security-optimized assessments, support, and education.
This action supports the county’s disparity reduction, digital equity, and sustainability efforts by:
• Providing all library patrons with use of Microsoft standard business applications such as Word, Excel and PowerPoint
• Providing the most up to date, industry standard accessibility tools and features for people with visual, hearing, motor and cognitive challenges
• Reducing CO2 emissions by diverting workloads from county data centers to the Azure cloud
This technology request has been reviewed and approved by the office of the Hennepin County CIO.
recommendation
Recommendation from County Administrator: Recommend Approval