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CC SR 20211207 K - DELL Microsoft Enterprise Agreement Additions CITY COUNCIL MEETING DATE: 12/07/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to approve the acquisition of additional licenses to the existing Microsoft Enterprise Agreement with Dell. RECOMMENDED COUNCIL ACTION: (1) Authorize increasing the initial Dell annual cost limit for Microsoft Enterprise Agreement from $62,875 to $75,000 to acquire additional Microsoft licenses related to cyber security and remote access. FISCAL IMPACT: No additional budget appropriation is needed since $75,000 has been budgeted for FY 2021-22 (year 2 payment). Amount Budgeted: $75,000 Additional Appropriation: N/A Account Number(s): 101-400-1470-5201 (General Fund - IT Repair and Maintenance Services) ORIGINATED BY: Lukasz Buchwald, IT Manager REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. December 15, 2020, Staff Report B. June 15, 2021, Staff Report C. Dell Microsoft Enterprise Agreement – Year 2 Quote (page C-1) D. Dell Defender for Endpoint Quote (page D-1) E. Dell Windows Remote Licenses Quote (page E-1) BACKGROUND AND DISCUSSION: On December 15, 2020, the City Council authorized the City Manager to enter into an agreement (Attachment A) with Dell Technologies for a three-year Microsoft Enterprise Agreement (EA) through Riverside County in the amount of $188,625, equating to $62,875 per year (Attachment C). 1 As part of the City’s continuous efforts to protect its information technology (IT) infrastructure, data integrity, and provide secure online services to its constituents and businesses, Staff is looking to expand the cyber security protection by adding specialized monitoring tools from Microsoft. The procurement process for the necessary licenses requires that the following additions to the Microsoft Enterprise Agreement be made: • Advanced Anti-Virus and Threat-Monitoring (Microsoft Defender for Endpoint) (Attachment D) • Remote Access Licenses (Terminal Licenses) (Attachment E) The additional visibility provided by this advanced monitoring and response solution is invaluable to IT Staff in identifying and addressing potential vulnerabilities thereby proactively minimizing possible attack vectors, and should an incident still occur, detecting it early to minimize the impact and recovery cost. As an additional benefit, the City’s existing security-as-a-service vendor (Arctic Wolf) can be integrated with Microsoft Defender for Endpoint telemetry data to ensure that the City has a 24/7/365 visibility, monitoring, and alerting for all protected devices. As a result of advanced endpoint protection, the City could also be eligible for additional cyber security insurance coverage. The annual cost of purchasing Microsoft Defender for Endpoint licenses for the entire organization is $7,267.80 (Attachment D). Additional licenses might need to be purchased if the quantity of protected devices changes. The addition of terminal licenses (Attachment E) would ensure that the back-end server(s) can be upgraded to the latest available and most secure operating system version and ensure that the City meets the licensing requirements from Microsoft. The one-time cost for 20 remote desktop services (RDS) licenses is $3,031.40. Additional licenses can be added in the future as needed, or an alternative remote access solution might be implemented based on then-current business needs. CONCLUSION: To meet the current cyber security standards and improve remote access for employees, Staff recommends the City Council approve increasing the annual cost limit of the Microsoft Enterprise Agreement with Dell to $75,000 to acquire additional Microsoft licenses. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 2 1. Do not approve adding licenses to the existing Microsoft Enterprise Agreement with Dell and direct staff to seek alternatives solutions to be considered by the City Council at a future meeting. 2. Take other action, as deemed appropriate. 3 Dell Customer Communication - Confidential# Quote for your Year-2 Annual Billing Microsoft Enterprise Agreement City of Rancho Palos Verdes Date Updated Enrollment #Start Date End Date Due Date 11/18/2021 7344259 1/1/2021 12/31/2023 12/23/2021 PO Number Scheduled Bill Date Part Number Description Quantity Price Extended Amount Coverage Start Date Coverage End Date Usage Country 1/1/2022 076-01912 Prjct Std ALNG SA MVL 6 $114.57 $687.42 1/1/2022 12/31/2022 United States 1/1/2022 228-04433 SQLSvrStd ALNG SA MVL 2 $143.87 $287.74 1/1/2022 12/31/2022 United States 1/1/2022 359-00961 SQLCAL ALNG SA MVL UsrCAL 75 $33.46 $2,509.50 1/1/2022 12/31/2022 United States 1/1/2022 3GU-00001 Defender O365 P1 GCC Sub Per User 220 $17.88 $3,933.60 1/1/2022 12/31/2022 United States 1/1/2022 3NS-00003 ExchgOnlnP2GCC ShrdSvr ALNG SubsVL MVL PerUsr 80 $71.28 $5,702.40 1/1/2022 12/31/2022 United States 1/1/2022 9EA-00278 WinSvrDCCore ALNG SA MVL 2Lic CoreLic 36 $123.39 $4,442.04 1/1/2022 12/31/2022 United States 1/1/2022 9EM-00270 WinSvrSTDCore ALNG SA MVL 2Lic CoreLic 8 $17.39 $139.12 1/1/2022 12/31/2022 United States 1/1/2022 AAD-34700 M365 E3 FromSA GCC Unified ShrdSvr ALNG SubsVL MVL PerUsr 120 $280.32 $33,638.40 1/1/2022 12/31/2022 United States 1/1/2022 AAD-34704 M365 E3 GCC Unified ShrdSvr ALNG SubsVL MVL PerUsr 20 $335.40 $6,708.00 1/1/2022 12/31/2022 United States 1/1/2022 AAF-21855 WinE5StpFrmWinE3 GCC ALNG SubsVL MVL 5 $51.72 $258.60 1/1/2022 12/31/2022 United States 1/1/2022 D86-01253 VisioStd ALNG SA MVL 4 $50.62 $202.48 1/1/2022 12/31/2022 United States 1/1/2022 MQM-00001 AzureActiveDrctryPremP1GCC ShrdSvr ALNG SubsVL MVL PerUsr 80 $53.52 $4,281.60 1/1/2022 12/31/2022 United States 1/1/2022 QEK-00001 VSProSubw/GHEnt ALNG LicSAPk MVL 1 $343.60 $343.60 1/1/2022 12/31/2022 United States Annual Billing Total $63,134.50 NOTE: This year-2 billing includes the 12 month value of the 5 WinE5 StepUps that have already been reserved (you're paying for the 1 month with credit card) The accompanying quote for the 115 additional WinE5 StepUps will need to be ordered in December, and will give you a total of 120 WinE5 StepUps going into Year-2 C-1 Sam Andrews sam.andrews@dell.com 323-428-8121 Microsoft Enterprise Agreement (EA) #: 7344259 Date of Issue:11/18/2021 Customer: City of Rancho Palos Verdes Quote Expires:12/25/2021 Product Description Mfg#Quantity Months Unit Price Ext. Price WinE5StpFrmWinE3 GCC ALNG SubsVL MVL AAF-21855 115 12 $4.31 $5,947.80 Defender for Endpoint Server GCC SubVL 7JI-00001 25 12 $4.40 $1,320.00 (Assumes you place the order in December 2021 - this pays for the licenses starting Year-2 of your EA - you will have access to them in December though) Note - you will really have a total of 120, but this order for the additional 115, we have to place separately in the Microsoft system from the Year-2 installment quote. Total Year 2 Payment (1/1/2022 to 12/31/2022)$7,267.80 This is the amount due next month in December Future Year-3 cost (for illustration purposes - will be part of your Year-3 quote next year) WinE5StpFrmWinE3 GCC ALNG SubsVL MVL AAF-21855 120 12 $4.31 $6,206.40 Defender for Endpoint Server GCC SubVL 7JI-00001 25 12 $4.40 $1,320.00 (Your complete Year-3 quote/bill will actually be for 120 WinE5 stepups (includes those 5 you're about to pay for that were reserved) Total Year 3 Payment (1/1/2023 to 12/31/2023)$7,526.40 Notes: Payment due now (December 2021) $7,267.80 Please write your PO for this amount Notes: Quote prepared by: Chris A Johnson Monthly Subscriptions D-1 Sam Andrews sam.andrews@dell.com 323-428-8121 Microsoft Enterprise Agreement (EA) #: 7344259 Date of Issue:11/22/2021 Customer: City of Rancho Palos Verdes Quote Expires:12/31/2021 Product Description Mfg#Quantity Months Unit Price Ext. Price WinRmtDsktpSrvcsCAL ALNG LicSAPk MVL UsrCAL, Added in Year 1 of EA 6VC-01252 20 NA $151.57 $3,031.40 $0.00 $0.00 Total Payment $3,031.40 Notes: Total Payment $3,031.40 Notes: Quote prepared by: Chris A Johnson Monthly Subscriptions E-1