PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
5f
Date of Meeting
December 13, 2011
DATE: December 5, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Peter Garlock, Chief Information Officer
SUBJECT: Microsoft Enterprise Software License Agreement
Three-Year Amount: $2.5 million Source of Funds: ICT expense budgets
Amount This Request: $2.5 million State and Local Taxes: $210,000
ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to execute appropriate
contract documents to renew our existing Microsoft enterprise software license
agreement for another three years, through December 31, 2014, at a cost not to exceed
$2.5 million.
SYNOPSIS:
Approval of this request will allow the Port to continue receiving Microsoft software
upgrades, licensing discounts, and maintenance support for Microsoft systems and
applications used throughout the Port of Seattle enterprise, through December 31, 2014.
The Port will use the Washington State Department of Enterprise Services Microsoft
purchasing agreement to obtain more favorable pricing than otherwise would be
available.
BACKGROUND:
The Microsoft enterprise software license agreement is a purchasing contract that
provides upgrades and maintenance support of Microsoft system and application software
used by all Port of Seattle employees. Microsoft’s enterprise software license agreement
provides the Port of Seattle with discounted pricing on software upgrades, service packs,
security updates, Microsoft training, and customer support services. This agreement also
enables the Port of Seattle to purchase additional software licenses at discounted prices as
needed. Renewal of this agreement will provide continued support of our currently
installed Microsoft products for the next three years (2012 - 2014).
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
December 5, 2011
Page 2 of 2
Our Microsoft enterprise software license agreement will be purchased through the
Washington State Department of Enterprise Services (formerly the Department of
Information Services [DIS]) Microsoft purchasing agreement. By using this agreement,
the Port of Seattle obtains favorable pricing by leveraging the State of Washington’s
combined purchasing power for such services.
FINANCIAL IMPLICATIONS:
Total renewal costs (including sales tax) for the three year period are estimated below:
License Costs (2012-2014) $2,290,000
Sales Tax (9.5%) $ 210,000
Total Renewal Costs $2,500,000
SOURCE OF FUNDS:
This is not a request for funding. The 2012 expense is included in the Information and
Communication Technology (ICT) annual budget. Future years will also be budgeted in
ICT.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:
None.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
On January 6, 2009, the Commission authorized a three-year renewal of the Microsoft
enterprise agreement for the period 2009-2011 at an estimated cost of $2.045 million.
