HomeMy WebLinkAboutExhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: July 14, 2026
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract with SHI Government Solutions, Inc., through the Texas
Department of Information Resources (DIR) Cooperative Contract No. DIR-CPO-5237, for the purchase
of Microsoft Licensing, Products & Related Services for the Technology Services Department; providing
for the expenditure of funds therefor; and providing an effective date (File 9068 – awarded to SHI
Government Solutions, Inc., with a term ending September 30, 2031, in the not-to-exceed amount of
$7,001,117.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
Microsoft Corporation requires that organizations that use their software maintain legal, paid licensing for
computer and server operating systems, applications, and desktop software. Microsoft offers an Enterprise
Agreement (EA) that is used by large organizations to bundle select products and services into a single
program that gives flexibility and control to optimize software licensing needs in support of Information
Technology (IT) services throughout the organization.
The City’s EA grants the ability to remain current on software products across departments and maintain
industry standards for Microsoft computing, which the City standardized on in 2013.
The City's Enterprise Agreement is a comprehensive licensing and technical support model that provides a
variety of benefits, including:
• Regular software upgrades for all new releases of Office 365 software, Windows desktop operating
systems, server operating systems, SharePoint, and other specialized software at no additional cost
during the term of the agreement;
• Fixed pricing provides the ability to predict annual budgetary impacts over multiple years.
• Ability to globally manage products, licensing entitlements and services in the City's environment
using system management and deployment tools;
• Streamlined license purchasing process to ensure timely delivery of IT projects; and
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
• Allowing the City to add or remove various products at any time as technology needs evolve through
an annual "true-up" process using discounted pricing established at the start of the agreement.
Examples of licenses:
• Windows Server Operating Systems
• SQL Server Database Systems
• Microsoft Teams and other Collaboration Tools
• SharePoint and Power BI for Analytical Presentations
• Desktop Operating Systems, i.e., Windows 11
• Microsoft Office Suite
• User Security
• Secure Data Storage and Retention
Microsoft Contract Term Estimated Annual Spend
Year 1 $1,187,408.28
Year 2 1,211,156.44
Year 3 1,295,937.39
Year 4 1,321,856.14
Year 5 1,348,293.26
Contingency 636,465.49
Total $7,001,117.00
Since 2022, the City’s growing workforce has increased the demand for Microsoft O365 and other related
Microsoft licenses. The cost of licensing has also increased since 2022. As a result, additional spending
authority is required earlier than initially anticipated to ensure uninterrupted service before the contract’s
expiration.
Pricing obtained through the Department of Information Resources (DIR) Cooperative Purchasing Network
has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On January 28, 2020, City Council approved the interlocal agreement with the Texas Department of
Information Resources Purchasing Network (Ordinance 20-196).
RECOMMENDATION
Award a contract with SHI Government Solutions, Inc., for the purchase of Microsoft Licensing, Products
& Related Services for the Technology Services Department, in a not-to-exceed amount of $7,001,117.
ESTIMATED SCHEDULE OF PROJECT
This contract expires on September 30, 2031. This DIR contract expires on September 22, 2029.
FISCAL INFORMATION
These items and services will be funded through Technology Services’ Infrastructure operating budget
830200.7803. Funding is budgeted annually to align with the contract terms and expenditures. These
products and services will be utilized on an as-needed basis. The City will only pay for items purchased and
is not obligated to pay the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Cooperative Pricing
Exhibit 3: Presentation
Exhibit 4: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Michael Deegan, 940-349-7823.
Legal point of contact: Leah Bush at 940-349-8333.