DEPARTMENT: Information Technology
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contracts With SHI International Corp. For Three-Year Microsoft Software Renewal
end
PURPOSE/ACTION REQUESTED
Authorize the Deputy County Manager to execute contracts with SHI International Corp. (SHI Corp.) to renew three-year licensing agreements for Microsoft software and cloud services.
SUMMARY
Dakota County maintains a Microsoft Enterprise Agreement and Secure Computing Environment Agreement to provide access to user software such as Windows, Office, and Teams, and server platforms such as Exchange and SQL Server. These agreements are purchased through SHI Corp. under Minnesota State Cooperative Purchasing Contract #CTR060028.
The current Microsoft Enterprise Agreement and Secure Computing Environment Agreement began on May 1, 2023, and expires on April 30, 2026. The final cost of those agreements over the three-year term was $2,992,759.40.
The renewed agreements will extend from May 1, 2026, through April 30, 2029. The total cost of these agreements paid over the three-year term will be $3,403,114.92.
The renewal cost increase of $410,355.52 is primarily due to changes in Microsoft’s pricing.
Annual Costs
• May 1, 2026 - April 30, 2027: $1,134,371.64
• May 1, 2027 - April 30, 2028: $1,134,371.64
• May 1, 2028 - April 30, 2029: $1,134,371.64
Pricing for the agreement term is fixed.
RECOMMENDATION
recommendation
Dakota County IT staff recommend that the Board authorize the Deputy County Manager to enter into contracts with SHI Corp. to renew the three-year Microsoft Enterprise Agreement and Secure Computing Environment Agreement for Microsoft software products in an amount not to exceed $3,403,114.92 for the period of May 1, 2026, to April 30, 2029.
end
EXPLANATION OF FISCAL/FTE IMPACTS
The total cost of the proposed Microsoft Enterprise Agreement and Secure Computing Environment Agreement is $3,403,114.92 for the three-year term and will be paid annually.
The costs for the first year of these agreements are included in the 2026 Information Technology budget in the General Fund and are funded by levy. Future expenses related to these contracts will be included in the County Manager’s recommended budget.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, Dakota County requires continued services from Microsoft Inc. to provide staff with software tools to complete tasks for daily county business; and
WHEREAS, staff recommends executing a contract with SHI International Corp. for the purpose of renewing a three-year Microsoft Enterprise Agreement and Secure Computing Environment Agreement for Microsoft software products; and
WHEREAS, the projected total cost of the proposed contracts is $3,403,114.92 for the period of May 1, 2026, to April 30, 2029.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to execute contracts with SHI International Corp. to renew the three-year Microsoft Enterprise Agreement and Secure Computing Environment Agreement for Microsoft software products in an amount not to exceed $3,403,114.92 from the period of May 1, 2026, to April 30, 2029, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes up to a 5% contingency or $170,155.75 for additional licenses that may be needed over the three-year term of the agreement.
end
PREVIOUS BOARD ACTION
23-147; 4/11/23
ATTACHMENTS
Attachment: EA Quote
Attachment: SCE Quote
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Tony Gomes
Author: Ed Kranz and Dave Miland