
Subject
title
Award and authorize the City Manager to Execute a Rider Agreement for the purchase of Microsoft 365 Enterprise licenses and components to SHI (SHI International, Corp.) of Somerset, New Jersey in the amount not to exceed $179,435.44 for the first term of the Rider Agreement with authorization for the City Manager to execute renewals, subject to available funding, for the term, including renewals, of the underlying OMNIA Contract.
end

Department
IT

Recommendation
Staff recommends the Mayor and Council award and authorize the City Manager to Execute a Rider Agreement for the purchase of Microsoft 365 Enterprise licenses and components to SHI of Somerset, New Jersey in the amount not to exceed $179,435.44 for the first term of the Rider Agreement with authorization for the City Manager to execute renewals, subject to available funding, for the term, including renewals, of the underlying OMNIA Contract.

Discussion
In early March 2015, the City of Rockville entered into a three-year Enterprise Agreement with Microsoft for the purchase of Microsoft Office 365 components and licenses. The purchase was necessary as the Department of Information Technology migrated from Lotus Notes to Microsoft 365. The three-year agreement was renewed in March 2018 and again in April 2021. The current contract will expire on April 30, 2024, and a new contract needs to be awarded to continue the services.

Mayor and Council History
This is the first time this agenda item has appeared before the Mayor and Council.

Procurement
The City of Mesa, Arizonia (“Mesa”), issued RFP #201811 on September 20, 2017, to establish a national cooperative contract for information technology and services to be used by Mesa and other government entities. Mesa acted as the lead agency to issue this RFP on behalf of the National Intergovernmental Purchasing Alliance (“National IPA”) now known as OMNIA National Partnership, a national cooperative purchasing entity (“OMNIA”).
OMNIA and the Mesa Master Agreement is effective through February 28, 2025. The City is an active member of OMNIA.
Pursuant to Rockville City Code Sec. 17-71(b), “Cooperative Procurement Authorized,” the Mayor and Council is authorized to contract with any contractor who offers goods, services, insurance, or construction on the same terms as provided other state or local governments or agencies thereof who have arrived at those terms through a competitive procurement procedure similar to the procedure used by the City.
SHI (SHI International Corp.) is a Minority, Female, Disabled or Veterans (MFD-V) business.
To view the draft contract, please see Attachment A.
To view all contract documents, click the link below:
<https://www.swisstransfer.com/d/48990583-0fc0-4856-8c71-20d6cfb9c95b>

Fiscal Impact
There are adequate funds in the General Fund IT Operations budget (110-750-0100-0214) to support this award. Payments are made annually for each year of the Rider Agreement, subject to authorized budget appropriations.

Next Steps
Upon Mayor and Council approval, the Procurement Division will complete the execution of the Rider Agreement with SHI of Somerset, New Jersey for the purchase and renewal of Microsoft 365 components and licenses.
