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Agenda Item
ASR
Control 08-000848 |
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MEETING DATE: |
04/22/08 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
Sheriff-Coroner
(Approved) |
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Department contact
person(s): |
Executive Director Rick Dostal (714) 647-1803 |
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Captain Michael James (714) 834-6450 |
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Subject:
Agreement with Microsoft Corp.
for Consultant Services
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ceo Concur |
County
Counsel Review |
Clerk of the Board |
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Concur |
Approved Agreement to Form |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: Yes |
Current Year Cost:
$66,196 |
Annual Cost:
N/A |
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Staffing Impact: No |
# of Positions:
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Sole Source:
Yes |
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Current Fiscal Year Revenue: N/A |
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Funding Source: Proposition
172: 100% |
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Prior Board Action: N/A
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RECOMMENDED ACTION(S)
Approve and authorize the Purchasing Agent to issue Price Agreement N1000009813, which consists of a Microsoft Services Agreement with general terms and conditions as well as the Microsoft Consulting Services Work Order pertaining to this specific project, for consultant services related to Microsoft Exchange Server software, in an amount not to exceed $66,196.
SUMMARY:
The Sheriff-Coroner requests authorization for the Purchasing Agent to issue a sole source price agreement with Microsoft Corporation, consisting of a Microsoft Services Agreement with general terms and conditions as well as the Microsoft Consulting Services Work Order pertaining to this specific project, for consultant services related to Microsoft Exchange Server software, in an amount not to exceed $66,196.
BACKGROUND INFORMATION:
Sheriff's Support Services requires a sole source contract with Microsoft Corporation for consultant services and support related to upgrading the Sheriff's Microsoft Exchange Server software, used for Department email services. Microsoft Corporation is the manufacturer of the software and they are the only vendor with the specialized resources necessary for a successful migration from the current software to the Microsoft Exchange Server 2007, the latest version from Microsoft Corporation. Although there are Microsoft partners in the market providing the same type of service, because their experience and resources are limited there is a high rate of failure, leading to inoperable or dysfunctional email systems. These email systems are crucial to the Department's internal and external communications. The price quoted by Microsoft Corporation is very competitive, because the Department already has an annual Premier Support Contract with the company. The project is estimated to be completed within a four-month period.
The proposed price agreement contains language that deviates from the County's standard terms and conditions. In order to do business with Microsoft Corporation, Microsoft requires the County to accept and enter into a generic Microsoft Services Agreement, which delineates the general terms and conditions of the contract and which will be effective for the next five years unless terminated by either party. For this project, and any subsequent projects, the parties enter into a separate “Work Order.” For future projects, if the Sheriff's Department utilizes the underlying Microsoft Services Agreement, it will comply with Orange County policies and requirements regarding the necessity of Board approval for those subsequent contracts.
Some of the substantial variations from the usual County terms include a limitation of liability clause that limits liability for direct damages to the amount paid under the contract. The County standard insurance provision has been replaced by Microsoft’s standard provision. Microsoft’s insurance policy covers commercial general liability for up to $2,000,000 per occurrence. In addition, the County's standard indemnification clause is absent. However, Microsoft has a separate provision indemnifying the County regarding patent, copyright and trademark infringements.
These language modifications are typical for the industry. The revised terms and conditions still ensure the County's right to any insurance recovery available under the policies set forth in the contract. CEO/Risk Management has reviewed and approved the non-standard terms and conditions.
A copy of the price agreement is available for review in the office of the Clerk of the Board.
FINANCIAL IMPACT:
Funding for this contract is available in the Sheriff's FY 2007-08 budget.
STAFFING IMPACT:
N/A
EXHIBIT(S):
Price Agreement
ATTACHMENT(S):
Sole Source Justification