Council Communication April 7, 2015, Business Meeting
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- Marsha Manning
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1 Council Communication April 7, 2015, Business Meeting Contract with SHI, Inc. for Microsoft Office 365 FROM Mark Holden, director of information technology and electric department, SUMMARY This is a request to approve the purchase Government Microsoft Office 365 Licenses (MS365) on a three year contract. The purchase is from a Microsoft certified provider, SHI Inc. The purchase is through the Oregon Procurement Information Network (ORPIN) contract award system as provided for in AMC (I)(1). The total contract value exceeds $100,000 and therefore requires Council approval per AMC (A)(1). Funding for the first year is contained in the current, approved budget. Funding for the additional two years is included in the budget request for the next biennium. The contract can be canceled on either of the two contract anniversary dates (the start of either year two, or year three). The requested licenses provide new standardized , collaborative, and cloud services, as well as state of the art desktop software tools (e.g., Word/Excel/Outlook). The MS365 licenses provide the City with current and future updates/releases for the duration of the contract. The installation of both modern, standard productivity software applications ( , intranet, and cloud storage) and modern personal desktop software tools support and enhance personal productivity and efficiency in city operations. BACKGROUND AND POLICY IMPLICATIONS: Background: The City intends to replace its outmoded system, add collaboration applications, and install consistent current versions of desktop personal productivity software. The key applications and software included in MS365 are: Exchange , calendar and task management SharePoint collaboration; data, calendar, file sharing; group and individual data sharing OneDrive for Business Cloud based, secure data storage Word word processing, mail merge, document processing Excel spreadsheet, financial modeling Outlook , calendar, task management PowerPoint presentations Access database, data collection, and data analysis OneNote productivity, collaboration, notes, links Publisher desktop publishing, pamphlets, communication materials Page 1 of 4
2 For a complete list and brief explanation of the applications and productivity software included in MS365 please see the attached (edited and rearranged) Microsoft Office 365 Government: What is Included. This information is also available (original form) at the following link: The contract is for the following licenses: License Quantity Total Functionality Government, G1 100 $7,103/year Limited License - full ($5.92/user/month) Collaboration services - read access only Personal productivity tools - online only, no local installations Government, G3 150 $30,133.50/year Full License All services and software ($16.74/user/month) Alternatives: 1. MS365 MS365 provides current technologies for , collaboration and desktop productivity tools, using government-grade security. In addition, MS365 provides all future releases of these technologies as long as the licensing is maintained. The government version of this product ensures that data is encrypted during transit and stored domestically, while providing continuous compliance for evolving security standards and applicable regulations (ISO 27001, HIPAA BAA, FISMA, CJIS). Controls include government archiving, ediscovery, legal hold, and data loss prevention. Provides current technology for enhanced communications. Provides the retention and retrieval capabilities necessary to meet user needs. Prevents user downtime due to corrupted accounts and reduces the support effort needed to restore corrupted accounts. Provides enterprise-grade spam and antivirus filtering. Collaborative applications: Provides tools and a single site for communications and collaboration within the City. Benefits gained through collaboration are: o Secure single internal communications center o HR designed and implemented information, forms and file center o Capabilities to easily implement departmental and cross departmental information, project and file sharing (e.g. procurement process/documentation) Desktop Productivity Tools: Provides users with the most up-to-date desktop software tools including integration with collaborative applications. Provides the City a uniform set of user productivity tools. The use of the same tools across the City ensures compatibility between Page 2 of 4
3 departments, outside services and individual users. A uniform version empowers departmental cross training and results in the need for fewer customer service calls. 2. In-House Services This option procures the hardware and software necessary to run MS365 in-house. This option does provide the same , collaborative applications and desktop software productivity tools as described in number 1 above. While providing the benefits of the MS365 alternative, this is the highest cost alternative. 3. Status quo Continuing to operate in the current environment will continue to aggravate the issues presented below. The current system is outdated, performs poorly, and does not readily provide the retention and retrieval capabilities needed by Finance and Accounting, Risk Management and other groups. Current boxes are subject to corruption, requiring time and effort to restore user productivity. The third tier spam/virus integration will continue to lead to a rising volume of spam and viral infections. Collaboration: The existing complex directory structure will remain in place. The current mechanism will not provide the additional efficiencies available through a collaborative information sharing system. Benefits lost by maintaining the status quo are: o Secure internal communications center o HR-designed and implemented information, form and file center o Capabilities to implement departmental and cross departmental information, project and file sharing (e.g. procurement process/documentation) Desktop Productivity Tools: The current mix of versions creates incompatibilities among departments, outside services and individual users. The mixed environment leaves users of older software without manufacturer support and the enhanced features of current software. The current environment does not facilitate cross training and results in more and varied customer service needs. The current environment does not support the use of collaboration applications. Relevant Policy: Section Public Contracting Officer Authority A. Except as otherwise provided by this code, the Public Contracting Officer shall have authority to: 1. Purchase and contract for all materials, supplies, equipment, services and public improvements for which funds have been appropriated by the City Council and the contract price does not exceed $100,000; Section Exemptions from Formal Competitive Selection Procedures All Public Contracts shall be based upon Competitive Sealed Bidding (Invitation to Bid) or Page 3 of 4
4 Competitive Sealed Proposals (Request for Proposal) pursuant to ORS 279A 279C and the Model Rules except for the following: I. The following classes of contracts are hereby specifically exempted from the Oregon Public Contracting Code and Model Rules pursuant to ORS 279A.025(t): 1. Contracts for the purchase of materials where competitive bids for the same materials have been obtained by other public agencies or the federal government whose processes for bid and award are substantially equivalent to those set forth herein, and the contract is to be awarded to the party to whom the original contract was awarded as long as no material change is made to the terms, conditions, or prices of the original contract. FISCAL IMPLICATIONS: Year 1 (billed immediately upon purchase): $37, Year 2 (billed on 1 st anniversary of agreement): $37, Year 3 (billed on 2 nd anniversary of agreement): $37, Total 3-Year Contract Value: $111, Annual licensing costs are based on the number and type of licenses required. Any changes (plus or minus) to the number of licenses or type of licenses will be reflected in the annual cost at the beginning of the next contract year. In the current year (FY2015), the initial cost is included in the approved Information Systems (IS) Division budget. The contract is for a three year period. The second and third year costs are budgeted by IS in the upcoming biennium (FY2016, FY2017). The contract can be cancelled without penalty at either of the two annual renewal anniversaries. STAFF RECOMMENDATION AND REQUESTED ACTION: Staff recommends the approval of the MS365 licensing contract. Should the licensing need to be adjusted upward during the three-year life of the contract, staff is asking for the authority to exceed the face contract amount by a maximum of fifteen percent ($16,756) for a potential contract value of $128,466. SUGGESTED MOTION: I move approval of a three-year contract between SHI, Inc. and the City of Ashland for MS Office 365 licenses in the amount of $111, I move approval of granting staff the authority to exceed the contract amount by up to $16,756 for adjustments in the number and type of licenses during the contract period. ATTACHMENTS: SHI Inc., Quotation # , dated 03/31/2015 Office 365 Government: What is Included? Page 4 of 4
5 Attachment 1 Pricing Proposal Quotation #: Created On: 3/31/2015 Valid Until: 10/28/2015 City of Ashland OR Dan Hendrix 90 N. Mountain Avenue Ashland, OR United States Phone: (541) Fax: dan.hendrix@ashland.or.us Brandon Barkley Phone: Fax: Brandon_Barkley@shi.com All Prices are in US Dollar (USD) Product Qty Your Price Total 1 O365GovE1 ShrdSvr ALNG SubsVL MVL Microsoft - Part#: U4S Note: Year 1 of $71.03 $7, O365GovE3 ShrdSvr ALNG SubsVL MVL Microsoft - Part#: U7S Note: Year 1 of $ $30, Subtotal $37, Shipping $0.00 *Tax $0.00 Total $37, *Tax is estimated. Invoice will include the full and final tax due. Additional Comments Pricing and purchase per PA All pricing above represents the annual cost to be billed over a three year term. Payments will be as follows: Year 1 (billed immediately upon purchase): $37, Year 2 (billed on first anniversary of agreement start): $37, Year 3 (billed on second anniversary of agreement start): $37, THREE YEAR TOTAL COMMITMENT: $111, Purchase of the above Microsoft licensing requires enrollment under a Microsoft Enterprise Agreement. Paperwork will be supplied separately from quote but must accompany your intial order. If you have questions about this quote, you can reach me directly at If you would like to make a purchase, you can do so by ing your order to the team at TeamOregon@shi.com, faxing your order to the team at , or mailing your order to the team at 290 Davidson Ave, Somerset, NJ Remit-Only Address: SHI, PO Box , Dallas, TX Tax ID: The Products offered under this proposal are subject to the SHI Return Policy posted at unless there is an existing agreement between SHI and the Customer.
6 Attachment 2 Office 365 Government: What is Included? and Calendars Business-class using Outlook at the desktop or remotely via a web browser (Outlook Web App) 50 GB mailbox per user. Attachments up to 25 MB Advanced Capabilities Archiving and legal hold capabilities, unlimited storage to meet compliance needs Data loss prevention (DLP) policies for additional compliance enforcement Office Suite Always provides the latest versions of: o Word, Excel, PowerPoint, Outlook o OneNote, Publisher, and Access Office on PCs, Tablets, and Phones Full version of Office installs across PCs, ipad, Android, and Windows tablets, and most mobile devices User licensing allows installation of Office on up to 5 PCs, 5 tablets (ipad, Android, and Windows), and 5 phones Office Online Create and edit Word, Excel, PowerPoint, and OneNote documents from any modern browser Team Sites Provides focused collaborative information sharing on projects and among work groups with team sites that help keep related documents, notes, tasks, and conversations organized File Storage and Sharing 1 TB per user of OneDrive cloud storage, syncs with City desktop for offline access Shares documents through Office or SharePoint Mobility ios, Android or Windows devices can: o Sync , calendar, and contacts o Access SharePoint sites (collaboration sites) o Edit Office documents with Office Online using native Office or browser based apps Search and Discovery Search and discover content across Office 365 applications Page 1 of 2 03/31/ :40
7 Attachment 2 Office 365 Government: What is Included? Online Conferencing Online meetings with audio and video using one-click screen sharing, HD video conferencing, and virtual whiteboard Administration Admin portal provides IT detailed configuration options for user services Reliability Services are available with a guaranteed 99.9% uptime, with a financially backed service level agreement (SLA) Security Leading-edge protection with multiple layers of security and proactive monitoring help keep City data safe Privacy City data belongs to the City Microsoft does not scan s or documents for advertising purposes Up to Date Upgrades and updates are included in the subscription New features are rolled out to Office 365 users in an IT-configurable time-frame Active Directory Integration Single sign-on and synchronization using City credentials and permissions from the existing City Active Directory Support 24/7 phone support for critical IT issues Business day support for non-critical issues Page 2 of 2 03/31/ :40
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