To: Board of Supervisors
From: Marc Shorr, Information Technology Director
Report Title: Approve and authorize a purchase order for Microsoft Licensing and Enterprise Enrollment Agreement
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, on behalf of the Chief Information Officer, to execute (1) a purchase order with Microsoft reseller Insight Public Sector, Inc., in an amount not to exceed $22,000,000; and (2) a Microsoft Enterprise Enrollment Agreement for Microsoft enterprise software applications for the period of April 1, 2026, through March 31, 2029.
FISCAL IMPACT:
The cost for this purchase will be paid in three annual installments and will be charged to user departments on a per license basis. (100% User Departments).
BACKGROUND:
Contra Costa County relies on Microsoft 365 enterprise licensing to support secure email, collaboration, document management, cybersecurity protections, identity management, and cloud-based productivity tools across County departments.
As part of the Department of Information Technology’s (DoIT’s) strategic initiative to centralize and standardize enterprise technology procurement, the Department is consolidating Microsoft licensing across additional County departments, including Health Services, under a single enterprise-wide agreement. This approach improves purchasing efficiency, enhances governance, strengthens security posture, and ensures consistent licensing compliance across the organization.
The renewal through Insight Public Sector leverages a competitively awarded public sector purchasing vehicle that provides volume-based pricing, streamlined license administration, enterprise-wide standardization, improved forecasting and cost transparency, and enhanced security and compliance capabilities. By consolidating Microsoft licensing under DoIT’s oversight, the County strengthens enterprise governance, reduces fragmented procurement practices across departments, and ensures uninterrupted access to critical Microsoft services while maintaining full licensing compliance.
Microsoft’s master agreement number 8084445 contains a limitation of Microsoft’s liability to the County for any claim arising out of the agreement to the amount the County paid for the online service during the twelve (12) months before the incident. Under the agreement, the County must defend and indemnify Microsoft from any claims that County’s data in the Microsoft hosted system violates a third party’s intellectual property rights, or third-party claims arising from County’s use of the online services in a manner that violates the law or damages a third party.
This purchase is being made via sole source justification, which has been approved by County Purchasing.
CONSEQUENCE OF NEGATIVE ACTION:
If this purchase is not approved, the County risks interruption of essential Microsoft services, loss of enterprise security protections, potential licensing non-compliance, and increased costs associated with fragmented or short-term procurement solutions.