DEPARTMENT: Information Technology
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contracts With SHI International Corp. For Three-Year Microsoft Software Renewal
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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.
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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...
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