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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): |
Tom Smith, IT Network Support Manager |
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TITLE:
title
Contract: Microsoft Azure Software - Additional Hosting Services (SHI International Corp.)
end
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute the contract and associated disbursements with SHI International in the amount of $525,000 to cover Microsoft Azure services as stated.
BACKGROUND:
The purpose of this request is to ensure the continuation of our critical services and to provide UTA with sufficient time to initiate a broader procurement process for Microsoft services and products.
Several years ago, the UTA Executive Team authorized the rebuild of the aging Transit Management System. During this process, the decision was made to embrace innovative cloud-based technologies, which led to the selection of Microsoft Azure as our cloud platform. This choice has allowed us to modernize our operations, increase efficiency, and better serve our community.
On April 26, 2023 the board approved a contract/purchase order for Azure hosting services in the amount of $245,000, which was intended to provide services through April 2024. That contract has now been exhausted due to unexpected growth and increased demand for services from the agency. Work being done by the new data strategies team and in-house developed applications supporting the Transit Management System are utilizing these pay-as-you-go services more than previously anticipated.
DISCUSSION:
To address this, the Department of Information Technology is requesting approval of an additional contract/purchase order with SHI International to cover the current open invoices and future usage of Azure services until the end of the current Microsoft Enterprise Agreement on April 30, 2024. Funds from the Transit Management System capital project ICI217 are available and provide budget authority for this new contract.
In preparation for a more sustainable, long-term solution, the next step in our plan is to continue to implement cost controls and release a Request for Proposal (RFP) for a Microsoft Enterprise Agreement for services and products. The RFP process and board presentation is anticipated to be completed by April 2024 to coincide with the current Microsoft Enterprise Agreement expiration, allowing for a more structured and comprehensive approach to our IT service needs.
These services are being procured for a period of one year under State of Utah Cooperative Contract which has an expiration date of September 15,2026.
CONTRACT SUMMARY:
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Contractor Name: |
SHI International Corp. |
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Contract Number: |
UTA PO 17121, State Contract AR2488 |
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Base Contract Effective Dates: |
9/1/2023 thru 12/31/2024 |
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Extended Contract Dates: |
NA |
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Existing Contract Value: |
$245,000 (previous purchase order) |
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Amendment Amount: |
$525,000 (new purchase order 17121) |
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New/Total Contract Value: |
$770,000.00 (combined purchase orders) |
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Procurement Method: |
State of Utah Contract AR2488 |
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Budget Authority: |
2023-2027 Capital Plan |
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ALTERNATIVES:
If the contract is not approved, alternative courses of action will be considered to maintain service continuity. This includes but is not limited to:
Downscale and Delay Projects
FISCAL IMPACT:
Funds for this Azure contract are available in the Transit Management System capital project ICI217. Future funding for Azure services will be included in the IT operating budget.
ATTACHMENTS:
UTA ORDER 17121 SHI International Corp
State Contract AR2488 - Contract Details (utah.gov) <https://statecontracts.utah.gov/Contract/Details/AR2488-IT-Technology%7C73951ce4-4f2e-4559-a823-660b64d8a8df>