Broken Arrow City Council
Meeting of: 05-19-2026
Title:
title
Approval of and authorization to accept a proposal for a new Enterprise Enrollment Agreement and relevant Amendment with Microsoft Corporation for Microsoft software, products, and licenses through SHI
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Background:
The City continues to use Microsoft Server and Office products and enrolled in the Microsoft Enterprise program. The Enterprise Agreement allows Staff to simplify the Microsoft licensing process while providing city employees with the latest software products that Microsoft has to offer.
While we are currently in year 2 of our 3-year MS agreement, the City has been utilizing more Microsoft Copilot licensing to bring efficiencies to daily operations. The City currently has 52 licenses, and would like to continue rolling this out across departments. Microsoft has offered a stronger discount plan to accomplish such a fuller rollout at a reduced license rate if a new 3-year term is accepted. Accepting this proposal would also allow the City of Broken Arrow to be designated a Microsoft Copilot Frontier City, eligible for specific Microsoft funding grants to be used for projects using artificial intelligence. Such funding would help offset Microsoft costs.
Currently the City pays for a Copilot license of $30.52/month per employee. Microsoft’s proposal would discount that to $19.84/month per employee. The proposed pricing would provide an overall savings of $81,009.60 for a more full rollout of Microsoft Copilot over current pricing rates.
Further, Microsoft will be raising their product subscription pricing by 10% on July 1st. Accepting a new 3-year Microsoft proposal would hold all Microsoft license pricing at the proposed rates for 3 years before the City of Broken Arrow would face the pending increases. This would realize a savings of over $63,000.
This proposal covers the remaining period of our existing Microsoft agreement and introduces a new 3-year agreement that provides discounted pricing over the course of the term as follows:
Year 1 (Sep 01 2026 - Aug 31 2027): $496,135.72
Year 2 (Sep 01 2027 - Aug 31 2028): $519,578.92
Year 3 (Sep 01 2028 - Aug 21 2029): $531,297.32
The proposed new agreement will not renew (or continue in effect) in any subsequent year that the City Council fails to appropriate and encumber funds for this specific purpose. Also, it is anticipated there are sufficient unencumbered funds available to pay the entirety of this agreement if necessary.
Section 2-27 of the Broken Arrow Code of Ordinances provides exceptions to formal competitive bidding. It provides for the purchase of supplies, materials, equipment or contractual services when purchased at a price not exceeding a price set by the state purchasing agency or any other state agency authorized to regulate prices for things purchased by the state or from purchasing consortiums. This purchase meets those criteria. Staff recommends that the Council approve the proposed Enterprise Enrollment Agreement and the relevant Amendment and authorize its execution.
Cost: $496.135.72
Funding Source: Department Budgeted Maintenance Funds
Requested By: Scott Carr, IT Director
Approved By: City Manager’s Office
Attachments: Attached
Recommendation:
recommend
Approve and authorize to accept a proposal for the Enterprise Enrollment Agreement and relevant Amendment with Microsoft Corporation for Microsoft software, products, and licenses through SHI
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