SUBJECT
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Consideration to approve the renewal of licenses from Microsoft Inc. for the Microsoft Office 365 productivity, collaboration, and communications suite, a cloud-based solution, through SHI Government Solutions, a Microsoft partner, in the amount of $668,652.00 for year two, with an option to renew for year three, under DIR contract #DIR-CPO-5237. Funding is available in the IST Administration Division line-item 595-5505-512-0700.
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PREVIOUS COUNCIL ACTION
Year one was approved by the City Council on 05/19/25.
BACKGROUND
In May 2025, the City of Laredo engaged SHI International Corp. to support a phased migration from the City’s on-premises Microsoft Exchange environment to Microsoft Exchange Online. The initial year of the project focused on assessment, planning, and configuration of the new cloud-based environment to ensure security, continuity of operations, and minimal disruption to City services.
Configuration is now complete, and SHI is actively migrating all on-premises mailboxes and public folders to Exchange Online, with completion expected in early Q2.
The project includes migrating:
2,480 mailboxes (2,300 user mailboxes and 180 resource mailboxes)
and
20 public folders currently residing on an Exchange 2010 server to SharePoint.
Sales Order GS00921158 in the amount of $668,652.00 represents the renewal of Microsoft Office 365 licenses for year two, supporting continued system availability and user access during and following the migration.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends approval.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: Budgeted funds
Account #: 595-5505-512-0700
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Funding is available in the IST Administration line item #595-5505-512-0700.