REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order for a Three-year Subscription for Microsoft Office O365 (F17-034)
Report
REPORT IN BRIEF
Approval is requested to issue a Purchase Order to Softchoice Corporation of San Francisco in the amount of $683,100 for the purchase of a three-year subscription for Microsoft Office 365 G3 and BridgeCAL licenses. Approval is also requested to authorize the City Manager to renew the licenses subscription for two additional one-year periods, not to exceed budgeted amounts.
EXISTING POLICY
Chapter 2.08 of the Municipal Code requires Council approval for transaction greater than $100,000.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
On September 20, 2016, Council approved the implementation of Microsoft Office 365 (O365) in order to provide the City with traditional technology tools such as email, calendaring, collaboration, instant messaging, and video conferencing (RTC No. 16-0903). In that RTC, staff discussed that the cost of the necessary Microsoft licenses was offered by authorized resellers for $240,000 annually, which was more than the expected pricing under a cooperative procurement agreement through Riverside County. Therefore, staff decided to decouple the purchase of the O365 implementation services from the license contract in order to negotiate better pricing. As pricing options were being evaluated, staff discovered that the absolute best pricing from the Riverside County agreement was not available to Sunnyvale because that pricing is only available to jurisdictions who have executed an Enterprise Agreement (EA) with Microsoft (Riverside County ...
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