COMMISSION 
AGENDA MEMORANDUM                Item No.       6d 
ACTION ITEM                   Date of Meeting    October 24, 2017 
DATE:    October 16, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Peter Garlock, Chief Information Officer 
SUBJECT:  Microsoft Enterprise Software License Agreement 
Amount of this request:          $2,700,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute appropriate contract
documents for the purpose of renewing the Port's Microsoft Enterprise Software License
Agreement through December 31, 2020, at a cost not to exceed $2.7 million. 
EXECUTIVE SUMMARY 
Approval of this request will allow the Port to continue receiving security patches, software
upgrades, licensing discounts, and maintenance support for Microsoft systems and applications
used throughout the Port of Seattle through December 31, 2020. 
Microsoft's Enterprise Software License Agreement provides the Port of Seattle with
discounted pricing on software upgrades, service packs, security updates, Microsoft training,
and customer support services. This agreement also enables the Port of Seattle to purchase
additional software licenses at discounted prices as needed. Renewal of this agreement will
provide continued support of our currently installed Microsoft products for the next three years
(2018 - 2020). 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not renew support. This would mean we would no longer receive critical
security updates and upgrades for Microsoft enterprise software (Windows, Exchange,
SharePoint, SQL, etc.). In addition, we would not receive assistance with any problems arising
in the software. Our Microsoft applications would rapidly become outdated, and the risk of
extended downtime due to software failure will increase.
Cost Implications: The significant costs related to a major security breach or operational failure
due to unresolved software bugs cannot be determined. 
Pros: 
(1)   Operating expense funding initially lower. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6d                       Page 2 of 3 
Meeting Date: October 24, 2017 
Cons: 
(1)   We would not receive updates and upgrades and security patches for Microsoft
enterprise software (Windows, Exchange, SharePoint, SQL, etc.) 
(2)   We would not receive assistance with any problems arising in the software. 
(3)   Without receiving updates and upgrades, we would have to purchase the current
software again in a few years at an unknown cost, but almost certainly higher. 
This is not the recommended alternative. 
Alternative 2  Renew the support agreement to provide for another three years of support.
Cost Implications: $2,700,000 
Pros: 
(1)   Receive updates and upgrades and security patches for Microsoft enterprise software
(Windows, Exchange, SharePoint, SQL, etc.) 
(2)   Receive assistance with any problems arising in the software. 
Cons: 
(1)   Commits an operating expense over a period of three years. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                            $0    $2,700,000    $2,700,000 
AUTHORIZATION 
Previous authorizations                        0           0           0 
Current request for authorization                  0    $2,700,000    $2,700,000 
Total authorizations, including this request            0    $2,700,000    $2,700,000 
Remaining amount to be authorized             $0         $0         $0 
Annual Budget Status and Source of Funds 
Annual amount expensed in Information & Communication Technology expense budget. 
Financial Analysis and Summary 
Project cost for analysis         $2,700,000 
Business Unit (BU)            Corporate 
Effect on business performance   n/a 
(NOI after depreciation) 
IRR/NPV (if relevant)           n/a 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6d                       Page 3 of 3 
Meeting Date: October 24, 2017 
CPE Impact                n/a 

ATTACHMENTS TO THIS REQUEST 
None 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 4, 2014  The Commission authorized a three year renewal of the Microsoft
Enterprise Agreement for the period (2015-2017) at an estimated cost of $2.5 million 
December 13, 2011  The Commission authorized a three year renewal of the Microsoft
Enterprise Agreement for the period (2012-2014) at an estimated cost of $2.5 million. 













Template revised September 22, 2016; format updates October 19, 2016.