Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO REVISE THE PROFESSIONAL SERVICES CONTRACT WITH VIRTUAL DATAWORKS FOR THE ANNUAL MICROSOFT GOVERNMENT COMMUNITY CLOUD (GCC) SUBSCRIPTION RENEWAL FOR THE CITYWIDE USE OF MICROSOFT 365, AND DECLARING AN EMERGENCY.
Brief Description: This Resolution is for approval to amend the service agreement with Virtual Dataworks to account for the annual renewal of the Microsoft 365 Government Community Cloud (GCC) subscription. This will be an amendment to the original contract with Virtual Dataworks but for the best pricing we intend to commit to a 1-year term. The total price for this renewal will be $94,593.11.
Body
Legislative History
Resolution 23-45
Resolution 22-78
Resolution 21-60
Purpose & Explanation
The City’s annual Microsoft 365 GCC licensing renewal is required to maintain secure, compliant, and uninterrupted access to essential productivity and collaboration tools. Microsoft has announced a 5% price increase effective with this renewal, which is significantly lower than the 12.5%-15% increases seen across most other customers. Additionally, we were able to retain a 5.45% discount on higher-value SKUs, helping mitigate overall cost impact. Updated pricing will take effect April 1, 2026.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for three consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
X Professional Services
Other [provide explanation]
Fiscal Impact
X Currently Budgeted (Account #101-7510)
Supplemental Appropriation Required
Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes [Obtaining updated pricing took longer than expected, so the emergency clause will ensure that there is no loss of service.]
No
Recommendation
Suggested Action
Staff recommend that City Council approve this Resolution authorizing the City Manager to proceed with the Microsoft 365 GCC licensing renewal and amend the contract with Virtual Dataworks accordingly.
Submitted by,
Thomas Sheridan, City Manager
Jeff Knoblauch, Assistant City Manager - Finance
Paul Leedham, CIO - IT Director