2022-12-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                               6 DECEMBER 2022


•        Data#3 is the whole-of-government supplier for the Queensland Government for Microsoft
         Products and Associated Licensing Solution Partner Services (ICCTSS.13.08) and
         Microsoft Products (including Online Services) (ICTSS.13.05);
•        Data#3 has provided the Microsoft Enterprise Agreement to Council since January 2014
         with effective account management helping ensure Council does not breach licensing
         copyright and proactively recommended changes to reduce costs; and
•        Data#3 has worked with Microsoft and ICT branch to restructure Council’s licensing to
         provide new security capabilities while reducing costs compared to retaining the existing
         licensing.

2.       Development of competitive local business and industry
The recommended supplier Data#3 is a Queensland company based in Brisbane, providing
state-based employment opportunities.

3.       Open and effective competition
Data#3 were placed on the Local Buy ICT Solutions, Products, Services and New Tech (LB308)
arrangement as a pre-qualified supplier having undergone an open/public tender process
conducted by Local Buy, constituting a Local Government Association (LGA) Arrangement
under the Local Government Regulation 2012.

4.       Ethical behaviour and fair dealing
Data#3 would be sourced as a pre-qualified supplier from a Local Buy Panel Arrangement.
Establishment of this panel was completed by Local Buy via a competitive tendering process.
Data#3 has an Ethics and Compliance Framework including annual staff training, a sustainable
environmental, social and governance (ESG) framework and is an accredited Family Inclusive
Workplace.

Previous Council Consideration
Nil

Finance
The Microsoft Enterprise Agreement is over a three-year term with annual costs of $535,997.26
and a total contract cost of $1,607,991.78. The adopted budget includes a budget of $539,884
for Microsoft licensing.

                                     2023 – Year 1     2024 – Year 2         2025 – Year 3
    Description
                                     Value (ex GST)    Value (ex GST)        Value (ex GST)
    Microsoft Licensing              $535,997.26       $535,997.26           $535,997.26
Table 1 – Contract cost over three years.

Most of the licenses (94%) used by Council are licensed by the number of users (staff requiring
the Microsoft software). If additional users are employed during the term of the agreement,
individual licences for those users are added from that year. If users leave, licences are
available for redeployment to other users. The remaining 6% of licensing is by device (physical
phone handset or computer processor).

Risks & Opportunities
Council’s Microsoft licensing includes subscription licensing for email and telephony that does
not permit continued use after the expiry of the licensing agreement. To continue using Microsoft
licensing without loss of service or breaching copyright, Council must renew the Microsoft
licensing before the expiry of the existing agreement on the 1 January 2023.


                                                                                   Page 16 of 38