Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  22-000748

 

MEETING DATE:

09/13/22

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

KC Roestenberg (714) 567-5075 

 

 

Clyde Gamboa (657) 222-3735

 

 

Subject:  Approve Contract for Microsoft Unified Support Services

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost: See Financial Impact Section

Annual Cost: See Financial Impact Section

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: N/A

  Funding Source: OCIT Countywide Services, Fund 289: 100%

County Audit in last 3 years: No

 

 

    Prior Board Action: N/A

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize the County Procurement Officer or Deputized designee to execute contract with Dell Marketing L.P. for Microsoft Unified Support Services, effective October 20, 2022, through October 19, 2025, in an amount not to exceed $831,462.

 

2.

Pursuant to Contract Policy Manual Section 3.3-113, authorize the County Procurement Officer or Deputized designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the contract amount for the first year of the contract, for the entire term of the contract, including renewals, and within the scope of work set forth in the contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Office.

 

 

 

 

SUMMARY:

 

Approval of the contract will provide critical proactive and reactive technical support to help ensure ongoing availability of the County’s investment in Microsoft products.

 

 

BACKGROUND INFORMATION:

 

Since 2015, Orange County Information Technology (OCIT) procured Microsoft Premier Support Services (MPSS) to provide extended support for existing Microsoft-based products. MPSS provides critical proactive and reactive technical support with a dedicated technical account manager to help ensure ongoing availability of the County’s investment in Microsoft products, including, but not limited to, the County’s enterprise intranet (IntraOC/SharePoint Online), cloud computing environment (Azure) and ongoing assistance with Office 365 deployments. MPSS is purchased in allotments of hours for problem resolution, support assistance, support account management and on-site visits.

 

In 2019, Microsoft introduced the Microsoft Unified Support Services (MUSS) model and announced that they would retire the MPSS model but would allow the County to continue with MPSS to assess the funds needed to support the unified model. Under MUSS, the base support cost includes the MPSS services on an as-needed basis and eliminates the need to calculate a specific number of hours for issues that the County may not be able to foresee.  In 2021, OCIT moved to MUSS which allows the department to engage Microsoft on an as-needed basis for any 24/7 problem resolution support, critical issue escalation management, advisory support, assessments and technical training. In addition, the contract includes proactive credits for engineering support for ad hoc project work throughout the contract term.

 

Over the past six (6) years, OCIT has utilized the County of Riverside Cooperative Agreement to procure MPSS and MUSS through Microsoft’s Value-Added Resellers (VARs). The VARs act as a pass-through provider and markup the cost for the services passed down from Microsoft. OCIT requested quotes from several VARs and received 4 quotes back from Dell Marketing L.P. (Dell), Insight Public Sector, Abelgov and Crayon. Dell submitted the lowest quote with no markup. Provided in the table below is pricing that was obtained from Microsoft as well as the 4 VARs for cost comparison.

 

 

Microsoft

Dell

Insight

Ablegoy

Crayon

Year 1

 $194,671.00

 $194,671.00

 $196,617.51

 $198,239.00

 $200,822.72

Year 2

 $253,927.00

 $253,927.00

 $256,466.01

 $258,582.00

 $260,078.72

Year 3

 $382,864.00

 $382,864.00

 $386,692.25

 $389,882.00

 $389,015.72

Total

 $831,462.00

 $831,462.00

 $839,775.77

 $846,703.00

 $849,917.16

Additional Pass-Through Cost

 $0

$0

 $8,313.77

 $15,241.00

 $18,455.16

 

This contract contains pass-through limitation of liability and indemnification provisions from Microsoft that deviate from the County's standard terms and conditions. County Executive Office of Risk Management has reviewed these provisions and has determined the risk to be acceptable for these services. Risk Assessment or Modification of Insurance Terms form is attached as Attachment B.

 

This contract, due to the nature of services, could require the addition of subcontractors. See Attachment C for the Contract Summary Form.  In order to add subcontractor(s) to the contract, the provider/contractor must seek express consent from the department. Should the addition of a subcontractor affect the scope of work and/or contract amount, the department will bring the item back to the Board of Supervisors for approval.

 

This contract is being awarded based on a cooperative agreement. Pursuant to Contract Policy Manual Section 4.7-107, the Orange County Preference Policy is not applicable to this contract award.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for this contract are included in the FY 2022-23 Budget for Fund 289, OCIT Countywide Services, and will be included in the budgeting process for future years.

 

FY 2022-23: $194,671

FY 2023-24: $253,927

FY 2024-25: $382,864

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A – Contract MA-017-23010189
Attachment B – Risk Assessment Form
Attachment C – Contract Summary Form