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, [email protected]
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 2.50.090(I)(1). The total contract value exceeds $100,000 and therefore requires Council
approval per AMC 2.50 070(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 email, 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 (email, 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 email system, add collaboration applications, and install
consistent current versions of desktop personal productivity software. The key applications and
software included in MS365 are:
• Exchange – email, 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 – email, calendar, task management
• PowerPoint – presentations
• Access – database, data collection, and data analysis
• OneNote – productivity, collaboration, notes, links
• Publisher – desktop publishing, pamphlets, communication materials
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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:
http://products.office.com/en-us/government/office-365-web-services-for-government#a
The contract is for the following licenses:
License
Quantity
Total
Government, G1
100
$7,103/year
($5.92/user/month)
Government, G3
150
$30,133.50/year
Functionality
Limited License
• Email - full
• Collaboration services read access only
• Personal productivity tools
- online only, no local
installations
Full License
• All services and software
($16.74/user/month)
Alternatives:
1. MS365
MS365 provides current technologies for email, 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 email archiving, eDiscovery, legal
hold, and data loss prevention.
Email: Provides current email technology for enhanced communications. Provides the retention
and retrieval capabilities necessary to meet user needs. Prevents user downtime due to
corrupted email accounts and reduces the support effort needed to restore corrupted email
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
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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 email, 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.
Email: The current email 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 email 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 2.50.070
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 2.50.090
Exemptions from Formal Competitive Selection Procedures
All Public Contracts shall be based upon Competitive Sealed Bidding (Invitation to Bid) or
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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): $37,236.50
Year 2 (billed on 1st anniversary of agreement): $37,236.50
Year 3 (billed on 2nd anniversary of agreement): $37,236.50
Total 3-Year Contract Value: $111,709.50
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 $111,709.50.
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 #9443415, dated 03/31/2015
• Office 365 Government: What is Included?
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Attachment 1
Pricing Proposal
Quotation #: 9443415
Created On: 3/31/2015
Valid Until: 10/28/2015
City of Ashland OR
Dan Hendrix
Brandon Barkley
90 N. Mountain Avenue
Ashland, OR 97520
United States
Phone: (541) 552-2441
Fax: Email: [email protected]
Phone:
Fax:
Email: [email protected]
All Prices are in US Dollar (USD)
Product
Qty
Your Price
Total
1 O365GovE1 ShrdSvr ALNG SubsVL MVL
Microsoft - Part#: U4S-00002
Note: Year 1 of 3
100
$71.03
$7,103.00
2 O365GovE3 ShrdSvr ALNG SubsVL MVL
Microsoft - Part#: U7S-00008 Note: Year 1 of 3
150
$200.89
$30,133.50
Subtotal
$37,236.50
Shipping
$0.00
*Tax
$0.00
Total
$37,236.50
*Tax is estimated. Invoice will include the full and final tax due.
Additional Comments
Pricing and purchase per PA 2590. 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): $37,236.50
Year 2 (billed on first anniversary of agreement start): $37,236.50
Year 3 (billed on second anniversary of agreement start): $37,236.50
THREE YEAR TOTAL COMMITMENT: $111,709.50
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
503-569-8183.
If you would like to make a purchase, you can do so by emailing your order to the team at [email protected], faxing your order
to the team at 732-564-8547, or mailing your order to the team at 290 Davidson Ave, Somerset, NJ 08873.
Remit-Only Address: SHI, PO Box 952121, Dallas, TX 75395-2121
Tax ID: 22-3009648
The Products offered under this proposal are subject to the SHI Return Policy posted at www.shi.com/returnpolicy, unless there is
an existing agreement between SHI and the Customer.
Attachment 2
Office 365 Government: What is Included?
Email and Calendars
•
•
Business-class email 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 Email 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 email, 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
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03/31/2015 16:40
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 emails 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
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