File #: 2024-3899    Version: 1 Name:
Type: Consent Status: Passed
File created: In control: ADMINISTRATION COMMITTEE
On agenda: 11/13/2024 Final action: 11/13/2024
Title: CONTINGENCY INCREASE FOR ANNUAL TRUE-UP OF MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) FOR MICROSOFT ENTERPRISE SOFTWARE LICENSES
Sponsors: Wally Ritchie
Attachments: 1. Agenda Report
Related files: 2021-1988, 2024-3940
FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance

SUBJECT:

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CONTINGENCY INCREASE FOR ANNUAL TRUE-UP OF MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) FOR MICROSOFT ENTERPRISE SOFTWARE LICENSES
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GENERAL MANAGER'S RECOMMENDATION

recommendation
RECOMMENDATION: Recommend to the Board of Directors to:

Approve a contingency increase of $525,748 (36%) to the existing Contract for annual true-up of the Microsoft ELA for a new total contingency amount of $746,322 (51%).
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BACKGROUND

The Orange County Sanitation District (OC San) relies on various Microsoft product licenses for essential components of its software architecture, including Windows desktop and server operating systems, email and chat communications, Office suite, databases, cyber defense software, and conference room integrations. While we strive to accurately project Microsoft licensing needs to support our business needs over the three-year agreement, new technologies and unforeseen circumstances may arise, necessitating unplanned technologies and licenses. Therefore, we request contingency as part of the original approval.

RELEVANT STANDARDS

* Protect OC San assets
* 24/7/365 treatment plant reliability
* Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard

PROBLEM

During the three-year period of this ELA, three projects have increased our Microsoft Enterprise Licensing beyond our contingency. The projects listed below have raised the number of servers on the Industrial Control System and Office networks, necessitating additional Microsoft licenses:

* J-117 - Ocean Outfall System Rehabilitation
* J-120 - Process Control System Upgrade (SCADA Upgrade)
* IT Hardware for Enterprise Server Refresh and Upgrade

The computing systems implemented by each of these projects were not in place at the time this Microsoft ELA was initiated; however, the cost of the licensing is included in th...

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