Explanation
Background:
This ordinance authorizes the appropriation of $1,241,801.55 within the Special Income Tax Fund and authorizes the Director of the Department of Technology to establish a contract/purchase order with Software House International Corp. (SHI), utilizing the State of Ohio Multiple Award Contract (MAC) 0A07004, with an expiration date of 6/30/2012, authorized for the City's use by Ordinance No. 582-87, for acquiring Microsoft enterprise software licensing. Microsoft Office is the City's technology standard for desktop computing software, currently utilized by 6,000 city employees to conduct their daily business. The City also utilizes Microsoft software to support a number of enterprise applications, including City intranet sites utilizing SharePoint. This ordinance will enable the City to cost-effectively obtain the latest versions of Microsoft software utilizing a single agreement for the entire City.
The term of the proposed agreement is for three years: January 1, 2012 to December 31, 2014. The passage of this ordinance will authorize the funds to pay for the first year, at a cost of $1,241,801.55 to come from the Special Income Tax Fund. Payment for the next two subsequent annual terms (January 1, 2013 to December 31,2013 and January 1, 2014 to December 31, 2014), estimated at $1,402,269.76 per year, is contingent on available funding and approval of proper City authorities. The proposed enterprise agreement enables the City to cancel the agreement, without penalty, in the event that funds are not appropriated to pay for future annual terms.
EMERGENCY DESIGNATION:
Emergency action is requested to expedite authorization of this contract and establish a purchase order by 12/22/2011 in order to initiate services on 01/01/2012 from the supplier at the price offered.
Fiscal Impact:
In 2009 and 2010, the Department of Technology on behalf of the Department of Public Utilities (DPU) expended $370,561.80 and $424,999.00 respectively for the purchase of Microsoft (MS) Office - Licenses and Software Assurance (SA) from Software House International Corp The cost associated with this legislation is $1,241,801.55 for the first year (January 1, 2012 to December 31, 2012) of a three year Microsoft enterprise software licensing. The next two subsequent annual terms (January 1, 2013 to December 31, 2013 and January 1, 2014 to December 31, 2014), estimated at $1,402,269.76 per year, is contingent on available funding and approval of proper City authorities. The estimated aggregate total for all three years is $4,046,341.07. Funds to cover the first year term cost have been identified and will come from the Special Income Tax Fund.
Contract Compliance: Software House International Corp. (SHI) CC#: 22-3009648; Expiration Date: 11/16/2013
Title
To appropriate $1,241,801.55 within the Special Income Tax Fund; to authorize the Director of the Department of Technology, to establish a contract/purchase order for year one of a three year term agreement for Microsoft enterprise software licensing from Software House International Corp. (SHI), from a State Term Schedule; and to authorize the expenditure of $1,241,801.55 or so much thereof as may be necessary from the Special Income Tax Fund for the Department of Technology, and to declare an emergency.($1,241,801.55)
Body
WHEREAS, these funds totaling $1,241,801.55 must be appropriated within the Special Income Tax Fund; and
WHEREAS, this legislation also authorizes the Director of the Department of Technology, to establish a contract/ purchase order for year one of a three year term to acquire Microsoft enterprise software licensing from Software House International Corp. (SHI) utilizing the State of Ohio Multiple Award Contract (MAC) 0A07004, with an expiration date of 6/30/2012; and
WHEREAS, the use of the Ohio Department of Administrative Services Cooperative Contract is authorized for the City's use by Ordinance Number 582-87; and
WHEREAS, the term of the proposed agreement is for three years: January 1, 2012 to December 31, 2014, with the first year ( January 1, 2012 to December 31, 2012)at a cost of $1,241,801.55 and payment for the next two subsequent annual terms (January 1, 2013 to December 31, 2013 and January 1, 2014 to December 31, 2014),
estimated at $1,402,269.76 per year, is contingent on available funding and approval of proper City authorities.
WHEREAS, the proposed enterprise agreement enables the City to cancel the agreement, without penalty, in the event that funds are not appropriated to pay for future annual terms.
WHEREAS, an emergency exists in the usual and daily operation of the Department of Technology, on behalf of the city, in that it is immediately necessary to authorize the Director of the Department of Technology to establish a contract/ purchase order with Software House International Corp. (SHI), from a State Term Schedule for year one of a three year term agreement to acquire Microsoft enterprise software licensing, for the preservation of the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the sum of $1,241,801.55 be and hereby is appropriated from the unappropriated balance of Fund 430, the Special Income Tax Fund, and from all monies estimated to come into said Fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2011, to Department 47-01, Department of Technology, Object Level One Code 03, Object Level Three Code 3358 and OCA code 471430.
SECTION 2. That the monies appropriated in Section 1 shall be paid upon order of the Technology Director and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 3. That the Director of the Department of Technology, is authorized to establish a contract /purchase order for year one of a three year term agreement to acquire Microsoft enterprise software licensing from Software House International Corp. (SHI) utilizing the State of Ohio Multiple Award Contract (MAC) 0A07004, with an expiration date of 6/30/2012 with year one term from January 1, 2012 to December 31, 2012 at a cost of $1,241,801.55 and payment for the next two subsequent annual terms (January 1, 2013 to December 31,2013 and January 1, 2014 to December 31, 2014), estimated at $1,402,269.76 per year, is contingent on available funding and approval of proper City authorities. That the proposed enterprise agreement enables the City to cancel the agreement, without penalty, in the event that funds are not appropriated to pay for future annual terms.
SECTION 4. That the expenditure of $1,241,801.55 or so much thereof as may be necessary is hereby authorized to be expended from Fund 430, the Special Income Tax Fund, Department No. 47-01, Department of Technology, Object Level One Code 03, Object Level Three Code 3358, and OCA code 471430.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.