Primary Department: Universal Services
Primary Department Head/Elected Official: Sindhu Menon, Executive Director & CIO
Secondary Department
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Financial Authorization
Project ID (if applicable):
Vendor/Entity Legal Name (if applicable):
MWBE Contracted Goal (if applicable):
MWBE Current Participation (if applicable):
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable):
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
title
Request for approval of supplemental budget for Microsoft enterprise products and services for Harris County in the amount of $4,678,550.
end
Background and Discussion:
Request submitted to Purchasing to execute a renewal with SHI Government Solutions, Inc. for Microsoft
Enterprise products and Microsoft Unified Enterprise Support Services for Harris County for the period of April 1, 2026 - March 31, 2027 for the March 19, 2026 court.
While Universal Services was able to identify and realize approximate $2 million license savings in the Enterprise Agreement from inactive users, dormant users (licenses not assigned), duplicate licenses, and right-sizing licenses, overall Microsoft costs increased due to higher usage of Microsoft server and cloud services, and Azure web services, final migration of HCSO staff to Microsoft 365 licenses as well as the initial procurement of M365 AI Copilot licenses.
This is the final year of the SHI - Microsoft Contract. Universal Services will be working with Purchasing and other departments to renegotiate a new agreement. Also, effective July 2026, Microsoft is implementing significant, widespread price increases across most commercial, business, enterprise, and frontline Microsoft 365 suites, subscription prices will rise by 5% to 33%.
Expected Impact:
Approval of this renewal will allow the awarded vendor to continue providing Microsoft Enterprise Products
for current and future projects with the same level of quality of service already being provided.
Alternative Options:
Alternative option would be to not approve this renewal, which would impact the purchase of current and
future Microsoft Enterprise Products as well as regular county operations.
County Strategic Plan Goal: 5. Minimize the impact of climate change and disasters.
County Strategic Plan Objective: R: Enhance disaster preparedness, response, recovery, and resiliency.
Justice/Safety Initiative (Goal 1): Choose an item.
Infrastructure Initiative (Goal 2): Choose an item.
Economy Initiative (Goal 3): Choose an item.
Health Initiative (Goal 4): Choose an item.
Climate/Resilience Initiative (Goal 5): Choose an item.
Housing Initiative (Goal 6): Choose an item.
Additional notes related to the Strategic Plan:
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
3/26/2024 |
670 |
Microsoft Enterprise Products for Harris County Award |
|
3/27/2025 |
390 |
Microsoft Enterprise Products for Harris County Approval to Renew |
|
5/08/2025 |
469 |
Microsoft Enterprise Products for Harris County Amendment 1 approval |
Location:
Address (if applicable):
Precinct(s): Choose an item.
|
Fiscal and Personnel Summary |
|
Service Name |
Microsoft Enterprise Products for Harris County |
|
|
|
Current Fiscal Year Cost |
Annual Fiscal Cost |
|
|
Labor |
Non-Labor |
Total |
Recurring Expenses |
|
Funding Sources |
|
|
Existing Budget |
|
|
|
|
|
1000 - General Fund |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Existing Budget |
$ |
$ |
$ |
$ |
|
Additional Budget Request (Requires Fiscal Review Request Form) |
|
|
1000 - General Fund |
$ |
$4,678,550 |
$4,678,550 |
$6,000,000 |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Choose an item. |
$ |
$ |
$ |
$ |
|
Total Additional Budget Request |
$ |
$4,678,550 |
$4,678,550 |
$6,000,000 |
|
Total Funding Sources |
$ |
$4,678,550 |
$4,678,550 |
$6,000,000 |
|
Grants - Proposed Budget (For Grants Items only) |
|
|
Labor |
Non-Labor |
Total |
No. of Grant Years |
|
Local Match Source - Existing Budget: Choose an item. |
$ |
$ |
$ |
|
|
Local Match Source - Additional Budget Request: Choose an item. |
$ |
$ |
$ |
|
|
Grant Funds Applied for/Awarded (Total) |
$ |
$ |
$ |
|
|
Personnel (Fill out section only if requesting new Position Control Numbers (PCN)s) |
|
|
Current Position Count for Service |
- |
- |
- |
- |
|
Additional Positions Request |
- |
- |
- |
- |
|
Total Personnel |
- |
- |
- |
- |
|
County Attorney’s Office Legal Review (for Harris County Code Items only) |
|
CAO Reviewer Name and Title |
|
CAO Review Completion Date |
Click or tap to enter a date. |
Anticipated Court Date: 5/14/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Choose an item.
Contact(s) name, title, department: Heather Merkel, Budget Director, HCUS
Attachments (if applicable):