Item - 2019.GL10.10

The General Government and Licensing Committee recommends that:

1.  City Council, in accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), grant authority to:

a.  extend the term of existing Blanket Contract Number 47020547 with Softchoice LP for the supply of Microsoft Select Plus licenses, as required on a pay-as-you-go basis, for a period of nine months from December 31, 2019 to September 30, 2020, to align with the term of the Province of Ontario's Microsoft Select Plus Agreement which expires on September 30, 2020; and

b.  increase the contract amount by $2,922,234 net of Harmonized Sales Tax ($2,973,666 net of Harmonized Sales Tax recoveries), revising the total contract amount from $5,277,746 ($5,370,634 net of Harmonized Sales Tax recoveries) to $8,199,980 net of Harmonized Sales Tax ($8,344,300 net of Harmonized Sales Tax recoveries).

The City of Toronto technology strategy enables continuous availability of technology tools. A key aspect entails ensuring staff are provided with Microsoft Office tools for email, word processing, spreadsheet, and PowerPoint functionality utilized for business operations, collaboration, and productivity.

The City of Toronto leverages the Province of Ontario's contractual agreement with Microsoft through a Vendor of Record reseller organization (Softchoice). To maintain the business investment and continuity of the best available pricing from Microsoft, staff are requesting authority to amend Blanket Contract Number 47020547 with Softchoice. The amendment extends the term for a period of nine months from December 31, 2019 to September 30, 2020. It also increases the contract amount by $2,922,234 net of Harmonized Sales Tax ($2,973,666 net of Harmonized Sales Tax recoveries), increasing the total contract value from $5,277,746 to $8,199,980 net of Harmonized Sales Tax.

In December 2016, City Council granted staff the authority to leverage the Provincial Agreement with Microsoft, resulting in a City Blanket Contract with Softchoice. This authority will expire in December 2019 but the Provincial Agreement expires in September 2020. To continue receiving the Provincial maximum Microsoft maximum discount pricing, the City needs to extend the Blanket Contract to expire at the same period as the Provincial Agreement. 

City Council approval is required in accordance with the City of Toronto Municipal Code Chapter 195, Purchasing By-law. The Code outlines where the current non-competitive procurement request exceeds the Chief Purchasing Officer's authority of the cumulative five-year commitment limit under Article 7, Section 195-7.3D of the Purchasing By-law. The Code also outlines where procurement request exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority. This is as per the City of Toronto Municipal Code Chapter 71, Financial Control By-law, Section 71-11A.