Water and Power Conservation... a way of life
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1 ANTONIO R. VILLARAIGOSA Mayor Commission LEE KANON ALPERT, President THOMAS S. SAYLES, 11ce-Presiclent ERIC HOLOMAN CffiUSTINA E. NOONAN JONATHAN PARFREY BARBARA E. MOSCHOS, Secoetmy AUSTIN BEUTNER General Manager RAMAN RAJ ChiefOperr11ing Officer November 4, 2010 The Honorable City Council City of Los Angeles Room 395, City Hall Los Angeles, California Honorable Members: Subject: Amendment No. 1 and Ratification to Agreement No with Microsoft Corporation Pursuant to Charter Section 373, enclosed for approval by your Honorable Body is Resolution No , adopted by the Board of Water and Power Commissioners (Board) on November 2, 201 0, approved as to form and legality by the City Attorney, which approves Amendment No. 1 and Ratification to Agreement No with Microsoft Corporation for technical support of Microsoft products. The Amendment increases contract amount by $894,053 and extends the contract three additional years. As directed by the Board, transmitted to you are supporting documents. If there are any questions regarding this item, please contact Ms. Winifred Yancy, Manager Government and Neighborhood Relations, at (213) , or Ms. Cecilia K.T. Weldon, at (213) Sincerely, Barbara E. Moschos Board Secretary BEM:oja Enclosures: LADWP Resolution Board Letter CAO Report Amendment No. 1 and Ratification to Agreement No Water and Power Conservation... a way of life Ill North Hope Street, Los Angeles, Califomia Mailing address: Box 51111, Los Angeles Telephone: (213) Cable address: DEWAPOLA r0f) flecydal:oe and!moo!rom~ wasle. DQ'
2 c/enc: Mayor Antonio Villaraigosa Councilmember Jan C. Perry, Chair, Energy and the Environment Committee Mr. Gerry F. Miller, Chief Legislative Analyst Mr. Miguel A. Santana, City Administrative Officer Mr. Rafael Prieto, Legislative Analyst, CLA Mr. William R. Koenig, Chief Administrative Analyst Ms. Winifred Yancy Ms. Cecilia K.T. Weldon
3 RESOLUTION NO. 0_1_1_1_2_0 WHEREAS, on Aug 11, 2005, the Los Angeles Department of Water and Power (LADWP) entered into Agreement No with Microsoft Corporation for technical support of Microsoft products used by LADWP ; and WH EREAS, the LADWP proposes to extend Agreement No with Microsoft Corporation for an additional period of three (3) years from August 10, to August 9, 2013, for a new amount not-to-exceed $2,751,542; and WHEREAS, the term of the orig inal Agreement No exceeds the total Contract time period set by ord inance and in accordance with City Charter Section 373, City Council approval is required; and WHEREAS, it is requ ired that the Board of Water and Power Commissioners approve and ratify Agreement No to allow payment to Microsoft for services rendered after the contract expired to avoid ~ lapse in service. NOW, THEREFORE BE IT RESOLVED that Amendment No. 1 to Agreement No , approved as to form and legality by the City Attorney, and fi led with the Secretary of the Board, between the LADWP and Microsoft Corporation, is approved; and BE IT FURTHER RESOLVED that pursuant to Charter Section 1022, that such services can be performed more feasibly and economically by Microsoft Corporation than by City employees; and BE IT FURTHER RESOLVED that the President or Vice President of the Board, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the acting Secretary of the Board be and they are hereby authorized and directed to execute sa id Amendment No. 1 to Agreement No for and on behalf of the LADWP upon approval by the Los Angeles City Counci l pursuant to the City Charter Section 373; and BE IT FURTHER RESOLVED that the Ch ief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the Power Revenue Fund for 70 percent and on the Water Revenue Fund for 30 percent, in payment of the obligations arising under Amendment No. 1 to th is Agreement No I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of a Resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held NOV ~Jxufi~~ Secretary
4 TO: BOARD OF WATER AND POWER COMMISSIONERS DATE: October 12, 2010 SUBJECT: \ \ RAMA ChiefOper: 1 t I v UL i-l.a- Ki"LJ ~ CECILIA K.T. WELDON Chief Administrative Officer General Manager Amendment No. 1 and Ratification to Agreement No between the Los Angeles Department of Water and Power and Microsoft Corporation for Technical Support of Microsoft Products FOR COMMISSION OFFICE USE: RESOLUTION NO CITY COUNCIL APPROVAL REQUIRED: Yes [g) NoD IF YES, BY WHICH CITY CHARTER SECTION: 373 PURPOSE The attached Resolution recommends to the Los Angeles City Council approval and ratification of Amendment No. 1 to Agreement No between the Los Angeles Department of W ater and Power (LADWP) and Microsoft Corporation (M icrosoft) for technical support of Microsoft products. The pu rpose of Agreement No was to create a consolidated Enterprise Agreement with Microsoft providing Premier Support to LADWP. Previously, Microsoft support was provided by two technical support contracts: one managed by the Water System (WS) to add ress WS support needs, and one managed by Information Technology Services Division (ITS D) for the Power System and all other Divisions (formerly Business Un its). The new enterprise Agreement is managed by ITSD. Microsoft products have been adopted by the LADWP as the standard for server, desktop, and network solutions. This new Agreement provides the LADWP with a contract for 24/7 techn ical support on al l Microsoft products uti lized by LADWP. The LADWP expects \O continue with the Microsoft solutions for at least the next three (3) years. The length of Agreement No with Microsoft Corporation exceeds the time period set by ord inance and, according ly, City Council approval is required.
5 Board of Water and Power Comm issioners Page 2 October 12, COST AND DURATION Agreement No extends the contract three (3) years from August 10, 2010 to August 9, 2013 and increases funds by $894,053. Total cost of this Agreement is $2,751,542 for eight (8) years. Maximum additional expenditures under this Agreement is $894,053 to be expensed over the additional three (3) year period as fol lows: 8/10/2010-8/9/2011 Account Management Assistance Support Microsoft Developer Network Universal Subscriptions 8/10/2011-8/9/2012 Account Management Assistance Support Microsoft Developer Network Universal Subscriptions 8/10/2012-8/9/2013 Account Management Assistan ce Support Microsoft Developer Network Un iversal Subscriptions Problem Resolution Support TechNet Plus Subscription Unlimited User Access to Premier Online Website Problem Resolution Support TechNet Plus Subscription Un li mited User Access to Premier On li ne Website Problem Resolution Support TechNet Plus Subscription Unlimited User Access to Premier Online Website $278,097 $297,563 $318,393 TOTAL $894,053 BACKGROUND Microsoft products are widely used as standard software to provide information technology to the LADWP. Their products include the LADWP's personal computers and servers, Windows operating systems, ema il systems, internet browsers, word processors, spreadsheets, ACCESS database, and many other tools and applications essential to the operation and productivity of the LADWP. The Agreement No consolidated previously separate contracts into a single Contract administered by ITSD. This provides an overall savings to the LADWP due to reductions in lower adm inistration costs and opportunities to leverage volume price discounts. The request to amend was delayed due to negotiations with Microsoft to decrease the total number of hours for the contract. The negotiations produced a net savings of $145,000 per year. However, the delay has resulted in the need to ratify the contract to enable the LADWP to pay Microsoft for essential services rendered after the contract expired.
6 Board of Water and Power Commissioners Page 3 October 12, 2010 Los Angeles City Council approval is requ ired ; according ly, the City Adm inistrative Officer report dated September 21, 2010, is attached. METHOD OF SELECTION D Competitive D Cooperative Purchase [g] Sole Source Microsoft Prem ier Support is a service that is only available through direct purchase from Microsoft. RECOMMENDATION It is requested that your Honorable Boa rd adopt the attached Resolution recommending the Los Angeles City Council's approval of Amendment No. 1 to Agreement No be executed as authorized in the Resolution. BL:clg/rp Attachments e-c/att: Austin Beutner Raman Raj Richard M. Brown A ram Benyam in James B. McDaniel Cecili a K.T. Weldon Lorraine A. Paskett Ann M. Santilli Anselmo G.-Collins Maria Sison-Roces Matthew M. Lampe Brian K. Lee
7 AMENDMENT N0.1 TO TECHNICAL SUPPORT OF MICROSOFT PRODUCTS AGREEMENT NUMBER BETWEEN THE LOS ANGELES DEPARTMENT OF WATER AND POWER AND MICROSOFT CORPORATION THIS FIRST AMENDMENT to Contract Number is made and entered into by and between the City of Los Angeles, a municipal corporation acting by and through the Los Angeles Department of Water and Power, (hereinafter referred to as the "LADWP") and Microsoft Corporation.(hereinafter referred to as Microsoft). WITNESSETH WHEREAS, the LADWP and Microsoft entered into a contract wherein Microsoft agreed to extend their Technical Support of Microsoft Products Contract for an additional three (3) years, effective August 10, 2010, which together with all Amendments and supplements thereto hereinafter shall be referred to as the Contract; and WHEREAS, the Contract provides for Amendments; and WHEREAS, the LADWP and Microsoft are desirous of amending the Contract for the purpose of increasing the total contract amount by $894,053 for a new not-to~exceed limit of $2,751,542 and extending the term of the Agreement to August 9, 2013; and WHEREAS, the Amendment is necessary and proper to continue or complete certain activities authorized under the Contract; NOW, THEREFORE, the LADWP and Microsoft agree that the Contract be amended effective August 10, 2010 as follows: AMENDMENTS 1. EXHIBIT A (Master Agreement page 7 of 1 0), item 11, Term & Termination, first sentence is amended to read as follows: "This Master Agreement will rema in in effect until August 9, 2013." 2. Exhibit B (page 1 of 1 0) Microsoft Premier Support Services Description. Term is amended to extend the Contract an additional three (3) years, and read as follows: 1 "This Schedu le will commence on August 10, 2005 (the "Commencement Date") and will expire on August 9, 2013 (the "Expiration Date") or the date we conclude the Services, which ever is later." 1
8 3. Exhibit B (page 6 of 1 0) Microsoft Premier Support Services Description Schedule: Fee and Named Contacts, Term, is amended to read as follows: "The Schedule will commence on August 10, 2005 and will expire on August 9, 2013 (the "Expiration Date"). 4. The following tables are added as attachments to EXHIBIT B (page 7 of 10) Microsoft Premier Support Services Description Schedule: Fee and Named Contacts, Item 1, PREMIER SUPPORT SERVICES AND FEES, and read as follows: August 10, 2010 through August 9, 2011 )~~.~:,' "'LAOWP'PoW.er arlc;j;;water afld, Joi~Jt _.;;,:o:escri'ption of s~..;.m;es :~s.'h~ : Support Account Management included Up to 600 Hours Support Assistance Support Up to 200 Hours for Problem Resolution Support 3 TechNet Plus Subscriptions 3 Microsoft Developer Network Universal Subscriptions Unlimited User Access to Premier Online Website Total Due From Customer: $278,097 August 10, 2011 through August !:t. "~r._:.ib;a.dwp "Pow(i.t ancfwatar and J_oint,+:~ D~scfi.pti'o~n -of" Se-rvic_Qs c"~- f ~" ~ Support Account Management included Up to 600 Hours Support Assistance Support Up to 200 Hours for Problem Resolution Support 3 TechNet Plus Subscriptions 3 Microsoft Developer Network Universal Subscriptions Unlimited User Access to Premier Online Website Total Due From Customer: $297,563 August 10, 2012 through August 9, 2013 """ )'.. ~~"':"':t::.adwp.. Power and.wafer arid..1_olrtt~oe$ 'cr1ption of Services:~; :w"'. Support Account Management included Up to 600 Hours Support Assistance Support Up to 200 Hours for Problem Resolution Support 3 TechNet Plus Subscriptions 3 Microsoft Developer Network Universal Subscriptions Un limited User Access to Premier Online Website Total Due From Customer: $318,393 I 2
9 2. Except as herein amended, all other terms and conditions shall remain in full force and effect. 3. Th is Amendment is executed in three (3) duplicate originals, each of which is deemed to be an original. This Amendment consists of three (3) pages. IN WITNESS THEREOF, the parties hereto have executed this Amendment No. 1 to Agreement No on the date indicated. Dated: THE CITY OF LOS ANGELES by and through DEPARTMENT OF WATER AND POWER By BOARD OF WATER AND POWER CO MM ISSIONERS OF THE CITY OF LOS ANGELES By: And: Secretary Dated: MICROSOFT CORPORATION By: -- ~- ;;. = &. APPROVED AS TO FORM G/o David Gallag her, Director of Contracts Dated: / ~MOl() City Business License Number: Internal Revenue Service ID Number: Board Resolution Number: Contract Number:
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