QPA Purchase - Dell, Inc. - Microsoft Dynamics 365

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INTEROFFICE .MEMORANDUM Department of Innovation & Technology City of South Bend 227 W Jefferson Blvd TO: Board of Public Works, Linda Martin CC: Dan O'Connor, Jennifer Hockenhull, Michael Schmidt, Sandi Kennedy, Ben Dougherty, Shawn Delahanty FROM: Matt Coats SUBJECT: QPA Purchase of Microsoft D365 for Finance and Operations DATE: 9/18/2018 Linda and Members of the Board We are submitting for review and approval the QPA purchase of 1 each of certain licenses required to install and implement Microsoft Dynamics 365 for Finance and Operations, the system that will replace Naviline's finance, procure -to -pay, and inventory elements. Innovation and Technology has discovered that the license costs of Dynamics 365, the system to be implemented by Crowe LLP (the ERP implementation partner the City is currently engaging in contract negotiations), will increase starting this October. To retain lower pricing through a Dell QPA, Microsoft recommended purchasing 1 each of every license the D365 system would need to lock in these prices for the next 3 years. Assuming a 2% increase in licensing costs, the City should expect to spend $4,661.81 less over the next three years by locking prices now than it would by waiting to purchase licenses. While this purchase does not indicate an award to Crowe LLP yet, IT feels the negotiations with Crowe have been successful and will continue to be so. As such, IT calculates that the risk of these licenses, in the amount of $8,798.69 becoming unnecessary is very low and worth the pursuit of savings as described. Thank you. Matt Coats