Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
DCM: David Gaines
DATE: July 26, 2022
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 Purchasing Network Contract Number DIR-TSO-
4092 for Microsoft Licensing, Products & Related Services; providing for the expenditure of funds therefor;
and providing an effective date of September 23, 2022 (File 8051 – awarded to SHI Government Solutions,
Inc., in the five (5) year not-to-exceed amount of $4,500,000.00).
INFORMATION/BACKGROUND
Microsoft Corporation requires that organizations who 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 the 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The City’s EA grants the ability to replace outdated and incompatible software products across departments
and to adopt industry standards for Microsoft computing, which the City standardized on in 2013. The last
renewal of the EA was executed in 2019 and is scheduled to expire on September 23, 2022.
The City's Enterprise Agreement is a comprehensive licensing and technical support model that provides a
variety of benefits, including:
• Regular software upgrade for all new releases of O365 Productivity 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;
• Streamlines the license purchasing process to ensure timely delivery of IT projects; and
• Allows the City to add or remove various products at any time as technology needs to evolve through
an annual "true-up· process using discounted pricing established at the start of the agreement.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Contract Term Estimated Annual Spend
Year 1 $869,483.23
Year 2 $869,483.23
Year 3 $869,483.23
Year 4 $869,483.23
Year 5 $869,483.23
Contingency $152,583.85
Total $4,500,000.00
Pricing obtained through the Texas Department of Information Resources (DIR) Cooperative Purchasing
Network has been competitively bid and meets the statutory requirements of Texas Local Government Code
271.102.
RECOMMENDATION
Award a contract with SHI Government Solutions, Inc., for Microsoft Licensing, Products & Related
Services, in a five (5) year not-to-exceed amount of $4,500,000.
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract, with an effective date of September 23, 2022. This DIR contract expires on
February 21, 2024.
FISCAL INFORMATION
These items and services will be funded through Technology Services operating Infrastructure budget
830200.7804. Requisitions will be entered on an as-needed basis. The budgeted amount for this item is
$4,500,000. The City will only pay for services rendered and is not obligated to pay the full contract amount
unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Sheet
Exhibit 3: Presentation
Exhibit 4: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Leisha Meine, 940-349-7823.
Legal point of contact: Marcella Lunn at 940-349-8333.