Explanation
BACKGROUND:
This ordinance authorizes the City Auditor to modify and extend the existing contracts with Microsoft Corporation and Dell Marketing LP and provide funding for the support, hosting (including monthly Azure usage), and maintenance of Microsoft Dynamics 365 Finance and Operations (D365) and authorizes the expenditure of up to $999,648.00, from the Department of Technology operating fund for a total expenditure of $999,648.00. D365 serves as the city’s official system of record for financial operations, including the recording of revenue, issuance of purchase orders, and processing of invoice payments and is essential for continuity of city services.
The original contract included annual renewal provisions for licensing, hosting, maintenance, and support for the Dynamics 365 system manufactured by Microsoft with services provided through Microsoft Corporation. In addition, Microsoft Unified support will provide access to a global network of specialists. Support is available on a 24 x 7 basis from a single point of contact. The service includes personalized support for all Microsoft products, assigned service delivery management, on-demand risk assessment tools, service update management, on-demand videos, interactive labs, and webcasts, and expert-led, scenario-specific support services.
This legislation authorizes the City Auditor to modify and extend the contract authorized by Ordinance no. 1051-2021. The cost for this renewal is estimated as follows:
Dynamics 365 Fees 2025
Licensing
(add 30 D365 licenses to account for increase in number of users) 751,401.00
Tier 1/Tier 2 Sandbox Dev/Test 70,347.00
Visual Studio development licenses 3,000.00
Power Platform Licensing/Azure Usage
(PowerBI, PowerPages, PowerApps, CoPilot) 94,000.00
O365 Licensing (Outlook/Email) 650.00
Entra ID Plan 1 250.00
Unified Support 80,000.00
TOTAL through 6/15/2026 $999,648.00
FISCAL IMPACT:
Funding for this planned contract renewal was included in the 2025 operating budget and is available in the Info Services Operating fund, Dept of Technology Operating subfund.
CONTRACT COMPLIANCE: The vendor number is 010030 and expires 10/12/2025.
EMERGENCY DESIGNATION: Emergency action is requested to ensure uninterrupted access to D365, the city’s system of record for financial operations, thereby vital for maintaining continuity of necessary city services. Additionally, the vendor has indicated they must receive a purchase order by June 15, 2025, to honor the current pricing and avoid a scheduled price increase on July 1, 2025, thus saving the city additional funds on an essential service.
Title
To authorize the City Auditor to modify the existing contracts with Microsoft Corporation and Dell Marketing LP and provide funding for the support, hosting (including monthly Azure usage), and maintenance of Dynamics 365; to authorize the expenditure of up to $999,648.00, from the Department of Technology operating fund; and to declare an emergency. ($999,648.00)
Body
WHEREAS, Microsoft Dynamics D365 Finance and Operations (D365) serves as the city’s system of record for financial operations, including the recording of revenue, issuance of purchase orders, and processing of invoice payments; and
WHEREAS, it is necessary for the City Auditor to modify the existing contracts with Microsoft Corporation and Dell Marketing LP to continue yearly maintenance, hosting, and support services for D365 for the City of Columbus necessary for 2025 operations; and
WHEREAS, it is necessary to authorize the expenditure of up to $999,648.00 to ensure continued functionality of D365, as necessary to facilitate the uninterrupted delivery of essential city services; and
WHEREAS, the vendor has notified the city that a purchase order must be issued no later than June 15, 2025, in order to receive the quoted pricing and avoid a scheduled price increase on July 1, 2025; and
WHEREAS, an emergency exists in the usual daily operation of the City Auditor's Office, in that it is immediately necessary to authorize the City Auditor to enter into a contract with Dell Marketing LP to prevent any interruption in services for D365, thereby preserving the continuity of financial operations necessary for essential city services and preventing additional expense to the city, for the immediate preservation of the public health, peace, property, safety and welfare; and NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized to modify existing contracts with Microsoft Corporation and Dell Marketing LP for yearly licensing, maintenance, hosting (including monthly Azure usage) and support services for Dynamics 365 for the City of Columbus.
SECTION 2. That the sum of $999,648.00 is hereby authorized to be expended from Fund 5100 and subfund 510001 Dept/Div 47-02, Object Class 03, main account 63945, program IT005 per the accounting codes in the attachment to this ordinance.
SECTION 3. That the sum of $999,648.00 is for licensing, maintenance, support, and hosting of Dynamics D365.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby authorized for expenditure and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding contract or contracts associated with the expenditure of the funds.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.