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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Alisha Garrett, Chief Enterprise Strategy Officer |
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PRESENTER(S): |
Kyle Brimley, IT Director |
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Tom Smith, IT Network Support Mgr |
TITLE:
title
Contract: Microsoft Azure Cloud Services (SHI International Corp.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute the purchase order and associated disbursements with SHI International Corp. under a State of Utah cooperative contract for pay-as-you-go usage of Microsoft Azure services for the calendar years 2024 - 2027 in the amount of $3,179,600. Execution of contract services beyond September 15, 2026 are contingent upon renewal of the vendor’s underlying state contract.
BACKGROUND:
This request aims to ensure the continuation of our critical services hosted in Microsoft Azure.
Several years ago, the UTA Executive Team authorized rebuilding the aging Transit Management System. During this process, the Executive Team embraced innovative cloud-based technologies, which led to the selection of Microsoft Azure as our cloud platform, and entered into an Enterprise Agreement with Microsoft. This choice has allowed us to modernize our operations, increase efficiency, and better serve our community.
Over time, with several more critical systems and data lake services, UTA hosts its rideuta.com website in the Azure environment. This strategic decision has allowed for greater scalability, reliability, and security for our public-facing website, enhancing the overall user experience and ensuring continuous service availability.
DISCUSSION:
Because the underlying State of Utah contract expires on 9/15/2026, the contractor is not authorized to proceed beyond that date without an Authorization to Proceed from UTA which shall be provided once the state contract is extended, renewed or replaced.
UTA utilizes Microsoft Azure, a pay-as-you-go service with a monthly billing cycle. UTA pays for only services used each month. The Azure environment supports internal operations and plays a crucial role as we host several critical systems, from the CAD/AVL system to our data lake services, providing data reporting capabilities and EFCX (Electronic Fare Collection System) services.
This request funds the month-to-month spending from April 2024 through December 2027.
A new request to fund further Azure usage for 2028 - 2031 will come to the board in early 2027 with the renewal of the third Microsoft Enterprise Agreement.
CONTRACT SUMMARY:
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Contractor Name: |
SHI INTERNATIONAL CORP. |
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Contract Number: |
UTA PO 24-03833, State Contract AR2488 |
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Base Contract Effective Dates: |
April 1, 2024 - December 31, 2027 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
NA |
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Amendment Amount: |
NA |
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New/Total Contract Value: |
$3,179,600.00 |
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Procurement Method: |
Utah State Contract AR2488 |
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Budget Authority: |
Approved FY2024 Operating Budget |
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ALTERNATIVES:
If the request for funds is not approved, the following consequences may occur:
• Transit Management Systems and other critical hosted applications will cease to function.
• Ongoing and future projects may experience delays.
The IT Director will seek interim funding through an emergency allocation or other funding source. This interim measure would ensure the continuity of our operations on a month-to-month basis. At the same time, UTA must seek alternative systems, procure, and implement them, and minimize any significant impact on UTA's daily operations.
FISCAL IMPACT:
The expected total 4-year Azure spend is $3,179,600. All funds will come from the Contract Services operating expense line item in the Department of Information Technology yearly budget 5200.50353.92. These budget allocations align with UTA's 10-year IT strategic plan, prioritizing investments in innovative cloud-based technologies to modernize operations and improve service delivery.
2024 Budgeted Total: $760,000 included in approved budget
2025 Funding Request: $782,800.
2026 Funding Request: $806,300.
2027 Funding Request: $830,500.
Expected 4-year Azure spend: $3,179,600
ATTACHMENTS:
1. UTA ORDER 2403833 SHI INTERNATIONAL CORP
2. Utah State Contract #AR2488 <https://statecontracts.utah.gov/Contract/Details/AR2488-IT-Technology%7C73951ce4-4f2e-4559-a823-660b64d8a8df>