Item 11a Memo

PORT OF SEATTLE
MEMORANDUM 

COMMISSION AGENDA            Item No.         11a
Date of Meeting     January 13, 2009
DATE:   January 8, 2009
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Peter Garlock, Chief Information Officer
Kim Albert, Senior Manager, ICT Business Services

SUBJECT: Request Port Commission authorization for the Chief Executive Officer to
execute a three year renewal of our existing Microsoft Enterprise Agreement for
software licensing and services.

BACKGROUND
The Microsoft Enterprise Agreement is a purchasing contract that provides upgrades and
maintenance support of Microsoft system and application software used by all Port of Seattle
employees. Microsoft's Enterprise 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 (2009 - 2011).
Our Microsoft Enterprise Agreement will be purchased through the Washington State
Department of Information Services (DIS) Microsoft purchasing agreement. By using this
agreement, the Port of Seattle obtains favorable pricing by leveraging the Sate of Washington's
combined purchasing power for such services.
FINANCIAL IMPLICATIONS 
Total renewal costs (including sales tax) are estimated to be $2,045,000 over the following three
year schedule:
Year 1 (2009)     $650,000
Year 2 (2010)     $680,000
Year 3 (2011)     $715,000 
Total   $2,045,000

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer
January 8, 2009
Page 2 of 2

SOURCE OF FUNDS 
The 2009 expense is included in the Information and Communication Technology (ICT) annual
budget. Future years will also be budgeted in ICT.
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION 
1.  Alternative mechanisms for purchasing Microsoft products were considered, however,
the Microsoft Enterprise Agreement purchased through the Washington State DIS
purchasing agreement with Microsoft is the lowest cost option.
2.  We recommend renewal of our existing Microsoft Enterprise Agreement. This action will
ensure that the Port of Seattle remains in full compliance with all Microsoft software
licensing requirements, and has up to date security and software support. In addition, this
agreement will help ensure the lowest total cost of ownership as new Microsoft products
and functionality become available and required by Port of Seattle business units.

REQUESTED ACTION 
Request Port Commission authorization for the Chief Executive Officer to execute a three year
renewal of our existing Microsoft Enterprise Agreement for software licensing and services.








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