TO: Communication, Technology & Information Systems Committee
FROM: Chris Sternal, Director of IT
SUBJECT:
title
Award of Contract to SHI for a Three Year Microsoft Enterprise Licensing Agreement in an Amount not to Exceed $1,278,214.47
end
BACKGROUND:
The City relies on Microsoft 365 for essential productivity and communication tools. This year, we conducted a formal RFP process for our three-year enterprise licensing renewal, resulting in a proposed partnership with SHI International Corp. After negotiations, we finalized a budgetary quote that includes per-unit costs for the contract term, with annual true-ups at contract rates.
Unlike the previous cycle, which used a state purchasing contract, this renewal was competitively bid to ensure transparency and favorable pricing. Approval is requested for funding not to exceed $1,278,214.47, covering all required licenses and services for 2026-2029.
CONCLUSION:
Approval is requested for funding not to exceed $1,278,214.47 for the three-year Microsoft Enterprise Licensing contract with SHI. This contract is payable annually at the City’s true-up, with the following annual breakdown:
• 2026: $410,109.09
• 2027: $426,071.49
• 2028: $442,033.89
These amounts cover all required licenses and services for 2026-2029, ensuring continued access to essential productivity and security tools at locked-in pricing.
For year one (2026), sufficient funds exist utilizing the Information Technology Admin Contractual Services budget (Org 04001000, Object 524200, $410,109.09). Funding will be appropriately budgeted in subsequent years.
RECOMMENDATION:
recommendation
It is recommended that this item be forwarded to City Council with a recommendation to approve.
end