TO: Mayor and City Council
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
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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.
This item was recommended for City Council approval by the Communication, Technology and Information Systems Committee at the August 5, 2026 meeting.
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
Based on the above, it is recommended that the Mayor and City Council award a contract to SHI for a three year Microsoft Enterprise Licensing agreement in an amount not to exceed $1,278,214.47.
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