Explanation
BACKGROUND:
This ordinance authorizes the appropriation of $1,771,378.76 within the Special Income Tax Fund and authorizes the Director of the Department of Technology to renew and modify an agreement with Software House International Corp. (SHI), utilizing the State of Ohio Multiple Award Contract (MAC) 0A07004, with an expiration date of 9/30/2013, authorized for the City's use by Ordinance No. 582-87, for acquiring Microsoft enterprise software licensing. The original agreement (EL012318) was authorized by ordinance 2075-2011, passed December 5, 2011. This ordinance will authorize funding for the second year of the agreement, January 1 to December 31, 2013, at a cost of $1,402,269.76. This ordinance will also authorize a true-up modification to the agreement in the amount of $369,109.00, bringing the total cost for the second term to be $1,771,378.76.
This modification is needed to incorporate additional Microsoft licenses that were not accounted for in the original agreement. The need to add additional licensing was not anticipated at the time of the original agreement. To take advantage of the most favorable pricing available for Microsoft software licenses, it is in the City's best interests to utilize the existing agreement with SHI, instead of utilizing alternative procurement methods. The price of the additional software licenses reflects the pricing available to all public sector organizations in Ohio through the State of Ohio MAC.
EMERGENCY DESIGNATION:
Emergency action is requested to expedite authorization of this contract and establish a purchase order by 12/14/2012 in order to process payment due on licenses by 01/01/2013 from the supplier at the price offered.
Fiscal Impact:
In 2011 the Department of Technology legislation $1,241,801.55 under ordinance 2075-2011 for the first year (January 1, 2012 to December 31, 2012) of a three year Microsoft enterprise software licensing. The next ( second) subsequent annual ter...
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