PILLAR: Fiscally Sound
AGENDA DATE: October 28, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Procurement Services
PRIORITY: Government Efficiency
______________________________________________________________________
SUBJECT
Title
Authorize a three-year cooperative purchasing agreement for Microsoft Government Enterprise licenses, operating systems, production suite, and support for the Department of Information and Technology Services with SHI GOVERNMENT SOLUTIONS, INC through Texas Department of Information Resources cooperative agreement - Estimated amount of $25,386,117.39 - Financing: Data Services Fund (subject to annual appropriations)
Body
BACKGROUND
This action does not authorize or encumber funding. The service price agreement establishes pre-negotiated pricing and contract terms for a specified period of time. Actual expenditures will occur only when services are requested and are supported by available departmental appropriations. The estimated amount represents the maximum anticipated value based on all potential usage scenarios during the contract term and is provided for planning purposes only. Actual expenditures may vary significantly and will be driven by operational needs. For reference, the City's average annual expenditure for these services over the past two years has been approximately $8,900,000.00 per year.
This cooperative purchasing agreement will provide for Microsoft Government Enterprise licenses, operating systems, production suite, and support for Department of Information and Technology Services. This agreement allows the City to maintain uninterrupted access to critical Microsoft software and cloud services and provides security updates, product enhancements, and vendor support. This agreement will also preserve compliance with Microsoft enterprise licensing requirements and improve operational efficiency and cybersecurity.
The Texas Department of Information Resources cooperative agreement is authorized by Chapter 791 of the Texas Government Code and Subchapter F, Chapter 271, Texas Local Government Code. Section 271.102 of the Texas Local Government Code which authorizes a local government to participate in a Cooperative Purchasing Program with another local government or a local cooperative organization.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 24, 2018, the City Council authorized a five-year master agreement for the purchase of various software including perpetual, fixed term, subscription and software as a service, software maintenance, support, and implementation services for the Department of Communication and Information Services with SHI Government Solutions, Inc., Mobile Wireless, LLC, and Carahsoft Technology Corporation through the State of Texas Department of Information Resources cooperative agreement by Resolution No. 18-1518.
On November 13, 2024, the City Council authorized a two-year cooperative purchasing agreement for Microsoft Government Enterprise Agreement for licenses, operating systems, production suite, and support for the City of Dallas provided by SHI Government Solutions, Inc. through the Texas Department of Information Resources cooperative agreement by Resolution No. 24-1635.
On June 10, 2026, the City Council authorized Supplemental Agreement No. 3 to increase the cooperative purchasing agreement for additional software licenses through the Microsoft Government Enterprise Licensing Agreement with SHI Government Solutions, Inc. by Resolution No. 26-0961.
FISCAL INFORMATION
|
Fund |
FY 2027 |
FY 2028 |
Future Years |
|
Data Services Fund |
$8,462,039.13 |
$8,462,039.13 |
$8,462,039.13 |
BUSINESS PARTICIPATION
|
Prime |
Status |
Workforce % |
|
SHI GOVERNMENT SOLUTIONS, INC |
Non-local |
0.00% |
PROCUREMENT INFORMATION
Method of Evaluation for Award Type:
|
Cooperative Purchasing Agreement |
• Cooperative purchasing agreements enable the City to associate with State agencies, other local governments, or local cooperative organizations comprised of other state and local governments, to leverage market buying power and enable the City to purchase goods or services at lower prices |
|
|
• The cooperative purchasing agreement is an alternative method of meeting the requirements for competitive bidding or competitive sealed proposals, not an exception from that requirement |
OWNER/EXECUTIVE
SHI GOVERNMENT SOLUTIONS, INC
3828 Pecana Trail
Austin, TX 78749
Thai Lee, Chief Executive Officer