2022-12-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            6 DECEMBER 2022


3    CONTRACT AWARD –               CN00271     MICROSOFT       ENTERPRISE       AGREEMENT
     SOFTWARE LICENSING

Author           ICT Manager, Justin Thomas
                 Corporate Services Department

Index            ECM/Subject/30.04 Licenses

Attachments      Nil

EXECUTIVE SUMMARY
The Microsoft Enterprise Agreement is a discounted volume licensing program for Microsoft
software with a three-year term for organisations with more than 500 users. Council has licensed
the Microsoft Enterprise Agreement from the Microsoft Licensing Solution Provider Data#3 Pty
Ltd (Data#3) since 2014. The current three-year agreement expires on 1 January 2023.
The execution of a contract is required to ensure continued licensing of Microsoft software
including Microsoft Office 365 (including email and telephony) and Microsoft Windows used on
over five hundred computers at Council including public computers in libraries, mobile workers,
and office computers.

RECOMMENDATION
That Council note the report by the ICT Manager to the Services & Organisation Committee
Meeting dated 6 December 2022 and award contract CN00271 for Microsoft Enterprise
Agreement Software Licensing to Data#3 Pty Ltd at an annual cost of $535,997.26 (ex GST),
and a total contract cost for a three-year term of $1,607,991.78 (ex GST), in accordance with
Section 234 – Exception for LGA arrangement of the Local Government Regulation 2012.

REPORT
Council uses Microsoft software through a three-year Microsoft Enterprise Agreement including:
•   Desktop Windows operating systems
•   Server Windows operating systems
•   Database systems
•   Office 365 Email, cloud storage (Microsoft OneDrive) and telephony (Microsoft Teams)
•   Project management
•   Security including malicious logon prevention and anomalous activity detection.
Data#3 has whole-of-government arrangements with both the Commonwealth and Queensland
State Governments for the supply of Microsoft licensing. Council received advice from the State
advising the Queensland whole of government Provision of Microsoft Products and Associated
Licensing Solution Partner Services (ICTSS.1308) arrangement is strictly for the use of budget-
funded State departments only, with councils being unable to access.
Data#3 are also a supplier on Local Buy arrangement ICT solutions, Products, Services and
New Tech (LB308) which enables Council to engage their services directly under the
appropriate exception (Section 234) of the Local Government Regulation 2012. To demonstrate
sound contracting principles, the following are addressed:

1.   Value for Money
•    Data#3 is a whole of government sole supplier of Microsoft Enterprise Agreement
     contracts for the Commonwealth government (Whole of Government Microsoft Volume
     Sourcing Arrangement VSA5) and has been a whole-of-government supplier for the
     Commonwealth for Microsoft licensing for more than ten years;

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