That the Corporate and Finance Services Committee recommend to City Council:
Whereas Purchasing By-Law 80-2020 requires Council approval to award single source contracts greater than $100,000; and,
Whereas funding for Microsoft licences are approved in the annual operating budget; and,
Whereas our current contract for Microsoft licences (includes licences, maintenance and subscriptions for Microsoft products and services including Microsoft Azure, Windows Server, Microsoft 365 services (Office, Exchange Online, Teams, etc.) and additional Microsoft products and services) expires February 28, 2026; and,
Whereas Microsoft is changing its discount structure on Microsoft licences effective November 1, 2025; and,
Whereas the City currently utilizes the Ontario Education Collaborative Marketplace “O.E.C.M.” buying group’s pre-established supplier, Softchoice Canada Inc. to supply Microsoft licences; and,
Whereas to ensure the City continues to receive a discount on Microsoft licences, a signed contract is required with Microsoft, facilitated through Softchoice Canada Inc. to procure licences prior to October 28, 2025, for the renewal date of March 1, 2026; and,
Whereas staff are working with the City’s existing supplier, Softchoice Canada Inc., to establish a contract quickly with existing discounts for a minimum three (3) year term to potentially a five (5) year term; and,
Whereas it is estimated that a five (5) year term for Microsoft Licences will cost approximately $4,200,000 including non-rebateable H.S.T.; and,
Whereas by establishing a contract prior to October 28, 2025 the City will save approximately $500,000 over the five (5) year term;
Therefore that pursuant to Item CF-25-52 the Manager, Procurement be authorized to award a single source contract to Softchoice Canada Inc. and execute all necessary agreements.