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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 Enterprise Agreement (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. for a Microsoft Enterprise Agreement (EA) in the amount of $3,605,593, using the State of Utah Cooperative Contract AR2488. Execution of this contract past September 15, 2026 is contingent upon the vendor’s renewal of the underlying state contract.
BACKGROUND:
This request is to enter into a second three-year term Microsoft Enterprise Agreement. The original Microsoft Agreement ends on April 30, 2024.
Several years ago, the UTA Executive Team embraced innovative cloud-based technologies and authorized transitioning from on-premises services to services offered by Microsoft Azure and the Microsoft 365 product family. This strategic decision modernized our operations and aligned us with industry-leading productivity software, collaboration tools, and cloud-based services. By leveraging a Microsoft EA agreement, we can continue to access and utilize these transformative tools and services efficiently and cost-effectively.
DISCUSSION:
Because the underlying State 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.
The Microsoft EA agreement will cover on-premises licensing for:
1. Visual Studio development tools
2. Windows desktop and server operating systems
3. Microsoft SQL Server
4. All Client access licensing
Additionally, the Microsoft EA agreement covers the following cloud services:
1. Azure DevOps
2. Microsoft Azure (subscription agreements only)
3. Office 365 services, including email messaging, Teams, Sharepoint
4. Mobile device management
5. PowerBI premium instances
The agreement is from May 1, 2024, to April 30, 2027. Microsoft EA provides cost savings and enhances operational efficiency, collaboration capabilities, and access to the latest technologies. This agreement will support UTA's technology objectives and recommend its approval.
A new request to enter into a third three-year term of a Microsoft Enterprise Agreement will come to the board in early 2027.
CONTRACT SUMMARY:
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Contractor Name: |
SHI INTERNATIONAL CORP. |
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Contract Number: |
UTA PO 24-03832, State Contract AR2488 |
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Base Contract Effective Dates: |
May 1, 2024 - April 30, 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: |
$3,605,593.00 |
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Procurement Method: |
Utah State Contract AR2488 |
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Budget Authority: |
Approved 2024 Operating Budget |
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ALTERNATIVES:
If the request for funds is not approved, the following consequences may occur:
• Interruption of critical services: Transit Management Systems and other hosted applications, including email services, may cease functioning, disrupting operations and service delivery.
• Project delays: Ongoing and future projects reliant on Microsoft Azure services may experience delays, impacting timelines and deliverables.
• Increased costs: The IT Director may need to seek interim funding through emergency allocations or other sources, potentially leading to higher costs and budgetary challenges.
• Operational impact: UTA would need to quickly seek alternative systems and procure and implement them to ensure continuity of operations. This process would require significant resources and could disrupt daily operations.
• Information security and license compliance financial risk: UTA may face financial penalties for non-compliance with licensing agreements without the Microsoft Enterprise Agreement. Additionally, the absence of Microsoft's robust security features could increase the risk of data breaches and other security incidents, leading to potential financial and reputational damage.
FISCAL IMPACT:
The 2024 approved budget includes $1,143,725 for the Microsoft EA agreement. Projected funding requests for 2025 and 2026 will be $1,200,911 and $1,260,957, respectively. The total 3-year Microsoft EA total is estimated to be $3,605,593. The IT budget requests the allocated funds to cover these expenses, including a small buffer for potential growth each year to satisfy any true-up due at the beginning of each yearly term. 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, which emphasizes investments in technology infrastructure to enhance operational efficiency, collaboration, and innovation.
2024 Budgeted Total: $1,143,725
2025 Budget Request: 1,200,911
2026 Budget Request: 1,260,957
Expected 3-year Microsoft EA spend: $3,605,593
ATTACHMENTS:
1. UTA ORDER 2403832 SHI INTERNATIONAL CORP
2. Utah State Contract #AR2488 <https://statecontracts.utah.gov/Contract/Details/AR2488-IT-Technology%7C73951ce4-4f2e-4559-a823-660b64d8a8df>