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AGENDA ITEM TYPE: |
Procurement Contract/Change Order |
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RECOMMENDATION: |
Authorize the Executive Director to execute the 3-year not to exceed blanket Purchase Order Agreement and associated disbursements for Office 365 subscriptions with SHI International. This action will enable UTA to acquire Office 365 subscriptions for all remaining employees who were not part of initial Office 365 pilot group. |
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BACKGROUND: |
In 2019, UTA implemented a pilot program to use Microsoft’s Office 365 productivity suite of tools to determine if a subscription-based model of Office 365, that could be accessed from anywhere, had value to the business. Currently 400+ Office 365 subscriptions have been assigned to employees. In 2020, based on the results of that pilot, the Board approved budget to migrate all UTA employees to Microsoft’s Office 365 product suite. The benefit of this solution will enable an employee to access Outlook, OneDrive, and the Office 365 productivity tools from anywhere. Based on the lessons learned from the pilot, it was also decided to move from the Office 365 Government Cloud (reduced features) to the more feature enriched Office 365 Commercial cloud. The Executive Team confirmed that direction in the Spring of 2021. |
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DISCUSSION: |
The requested Board action will allow the procurement of additional Microsoft Office 365 subscriptions, using Utah State Contract AR-2488 for cloud services, for all employees who were not part of the pilot group. (Employee roles will determine what Office 365 subscription they will be assigned.) UTA will issue a not to exceed purchase order to SHI International (Microsoft reseller) for this action. This action will allow UTA to add approximately another 2100 employee Office 365 subscriptions. Funds for this subscription expense will come from the annual operating budget. The agreement will be in place for 3 years. On the anniversary of the contract, all subscriptions activated in the prior 12 months will be reconciled and paid in arrears for the previous contract period. The total value of the Microsoft Office 365 agreement is valued not to exceed $1,763,566 worth of subscriptions over the 3-year period. The annual estimated cost increase is based on an estimated 2% growth factor in either number of subscriptions or upgrading subscription features. The cost of a given subscription feature is fixed for the contract period. Procurement is based on State of Utah Contract # AR-2488 for cloud services and it will use SHI International as the Microsoft reseller. The annual not to exceed subscription pricing is listed below:  |
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CONTRACT SUMMARY: |
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Contractor Name: |
Microsoft through reseller SHI International |
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Contract Number: |
UTA Contract #21-03426, State of Utah Contract #AR 2488 |
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Base Contract Effective Dates: |
5/28/2021 - 5/31/2024 |
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Extended Contract Dates: |
n/a |
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Existing Contract Value: |
n/a |
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Amendment Amount: |
n/a |
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New/Total Amount Contract Value: |
$1,763,556.00 |
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Procurement Method: |
Utah State Contract AR2488 |
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Funding Sources: |
Local |
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ALTERNATIVES: |
An RFP / RFQ would be issued. |
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FISCAL IMPACT: |
The budget for the software is already in the annual OPEX budget. |
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ATTACHMENTS: |
1. UTA Blanket Not to Exceed PO #2103426 to SHI International 2. Link to State of Utah Contract AR2488, https://utah-das-contract-searchsp.s3.amazonaws.com/full_contract_AR2488_AR2488Full.pdf |