Committee backs $55 million Microsoft reseller agreement for citywide enterprise products

The committee voted to forward to the Board a resolution authorizing a new agreement with Zones LLC to provide Microsoft enterprise products to most city departments (excluding MTA) for a three‑year term with a not‑to‑exceed amount of $55 million. Hao Hsieh (Department of Technology, strategic sourcing manager) described the agreement as sized to historical spend (about $46 million) plus $9 million for upgrades and noted DT negotiated complimentary licenses and will manage license lifecycle and a recurring license cleanup to control costs.

BLA staff reviewed the procurement and budget breakout and recommended approval. Supervisors asked about MTA’s separate procurement authority and DT said MTA runs its own contracts and resellers (CDW) and that departments commonly use Office 365 and related products. The committee forwarded the item to the full Board with a positive recommendation.