AGENDA CAPTION:
Title
Consider approval of Resolution 2026-131R, approving a one-year extension of the contract with SHI Government Solutions, Inc., through the State Department of Information Resources, for Microsoft Enterprise Agreement Licenses in the amount of $600,000.00; authorizing the City Manager, or her designee, to execute the appropriate documents on behalf of the city; and declaring an effective date.
Body
Meeting date: August 18, 2026
Department: Information Technology
Amount & Source of Funding
Funds Required: Not to Exceed $600,000
Account or Project Number (C = CIP funds): 30131280-52397
Funds Available: Click or tap here to enter text.
Account Name: ISF - Software as a Service
Fiscal Note:
Prior Council Action: Resolution No, 2023-157R approved a three-year agreement on October 2, 2023.
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Background Information:
The City Council originally authorized a three-year agreement with SHI Government Solutions, Inc. for the Microsoft Enterprise Licensing Agreement for a term of 2023-2026, however, because payment of the initial year occurred after October 1, 2023, Microsoft rolled the contract term period to show our three-year agreement running from 2024-2027. By accepting and approving the 1-year extension of the current contract, the City is able to take advantage of the previously agreed upon pricing and avoid the current market increases that will come from a new agreement. This action will not modify the scope, deliverables, or service levels - it will only modify the original approved contract term set forth by Resolution No. 2023-157R to align with Microsoft’s contract terms.
The Microsoft Enterprise Licensing Agreement contract renewal is the City’s primary licensing agreement that ensures all employees have access to the essential Microsoft technologies used every day to run City operations. This agreement provides licensing for Microsoft Office applications, server and desktop operating systems, and Structured Query Language (SQL) database systems. These tools support email, document creation, secure data storage, business applications, and the software infrastructure behind many of the City’s internal and public facing services.
Day to day, staff rely on these Microsoft services to send and receive email, create documents, manage data, run departmental applications, and maintain critical systems that support service delivery to the community. The agreement also includes important security and update features that keep City systems protected and functioning reliably.
Renewing the Microsoft Enterprise Licensing Agreement is essential because it maintains continuity of core technology services across all departments. Without this contract, many foundational systems-including email, business applications, databases, and server operations-would be disrupted, significantly affecting the City’s ability to operate and serve residents. This renewal ensures the City remains secure, functional, and equipped with the tools necessary to perform daily operations effectively.
The not-to-exceed amount of $600,000 is intended to cover our current licenses under contract plus the additional licenses and support required for onboarding Emergency Medical Services (EMS) staff and their software needs. We are finalizing additional server licenses and support requirements. The not-to-exceed amount provides sufficient capacity to add further licenses once all licensing requirements are confirmed.
Please be advised that the attached quote does not reflect the final dollar amount, as the final licensing numbers are still being determined. The quote represents our annual contracted amount excluding EMS licenses.
This purchase will continue a pre-existing contract with SHI Government Solutions, Inc., on the Texas Department of Information Resources cooperative contract #DIR-CPO-5237 related to Microsoft Enterprise Licensing Agreement. The City is authorized to utilize cooperative purchasing programs, including the Texas Department of Information Resources program, by Local Government Code, Chapter 271.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommend approving a one-year contract extension with SHI Government Solutions, Inc. of the Microsoft Enterprise Licensing Agreement, which will include the addition of licensing for EMS staff.