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HEALTH SERVICES AGENCY - Interim Executive Director Michelle Schmidt
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Requested Action(s)
recommendation
a) Adopt the finding that the County of Riverside Agreement #PSA-0001522 with CDW-Government for the renewal of 200 Microsoft 365 G5 GCC user licenses including Teams with audio/video conferencing, 200 Microsoft 365 G5 Security licenses, Power App Suite (including 24 Power Automate, 5 Power BI Premium, 20 Power Apps), 5 Microsoft Planner & Project licenses, 9 Microsoft Visio licenses, 25 SQL Server Standard licenses and Azure Monetary Commitment Provision for Microsoft Cloud usage is included as part of the package. The Riverside Agreement meets all Tehama County bidding criteria and allows the County to take advantage of the special low pricing without the time and expense involved with conducting the formal bid process
b) Find it to be in the best interest of the County to waive the formal bid process for the software renewal based on the above finding
c) Request authorization for the Purchasing Agent to issue a purchase order to CDW-Government for 200 Microsoft 365 G5 user licenses including Teams with audio/video conferencing, 200 Microsoft 365 G5 Security licenses, Power App Suite (including 24 Power Automate, 5 Power BI Premium, 20 Power Apps), 5 Microsoft Planner & Project licenses, 9 Microsoft Visio Licenses, 25 SQL Server Standard licenses and 12 Azure Monetary Commitment Provision for Microsoft Cloud usage in the amount of $186,065.49 for FY 7/1/26 to 6/30/27
d) Request authorization for the Purchasing Agent to issue a purchase order to CDW-Government for 200 Microsoft 365 G5 user licenses including Teams with audio/video conferencing, 200 Microsoft 365 G5 Security licenses, Power App Suite (including 24 Power Automate, 5 Power BI Premium, 20 Power Apps), 5 Microsoft Planner & Project licenses, 9 Microsoft Visio Licenses, 25 SQL Server Standard licenses and 12 Azure Monetary Commitment Provision for Microsoft Cloud usage in the amount of $186,065.49 for FY 7/1/27 to 6/30/28
e) Request authorization for the Purchasing Agent to issue a purchase order to CDW-Government for 200 Microsoft 365 G5 user licenses including Teams with audio/video conferencing, 200 Microsoft 365 G5 Security licenses, Power App Suite (including 24 Power Automate, 5 Power BI Premium, 20 Power Apps), 5 Microsoft Planner & Project licenses, 9 Microsoft Visio Licenses, 25 SQL Server Standard licenses and 12 Azure Monetary Commitment Provision for Microsoft Cloud usage in the amount of $186,065.49 for FY 7/1/28 to 6/30/29
f) AGREEMENT - Request approval & authorization for the Interim Executive Director to sign the Volume Licensing Program Signature Forms for the Microsoft Enterprise Software Assurance Agreement which includes the agreement to make annual installments for various Microsoft products at the locked price of $186,065.49 per fiscal year for FY 26-27, FY 27-28, and FY28-29
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Financial Impact:
The cost of software licensing is included in the Fiscal Year 2026-27, 2027-28 and 2028-29 budgets in account #53220, Office Supplies and allocated to each Tehama County Health Services Agency (TCHSA) budget unit as follows:
Clinic Budget Unit 40251 - $31,407.85
Drug & Alcohol Budget Unit 40171 - $27,481.88
Mental Health Budget Unit 40131 - $73,793.57
Public Health Budget Unit 40121 - $53,382.19
Total Annual Amount Allocated in Budget Units: $186,065.49.
These costs are allocated to all programs within each budget unit allowing for reimbursement from 1991 Health Realignment, 1991 Mental Health Realignment, 2011 Behavioral Health Realignment, Federal and State program allocations and grant allocations. No General Fund dollars are requested. Purchasing through the Software Assurance Program will fix the cost for 3 years at a significantly reduced price.
Background Information:
Tehama County Health Services Agency (TCHSA) has updated our computer network infrastructure to ensure compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) as well as other regulatory requirements. TCHSA utilizes Microsoft Windows servers and Microsoft Office Suite for all our daily operations. Additionally, our Electronic Medical Record (EMR) systems require us to utilize Microsoft SQL Server. Therefore, only the requested software will run the servers and allow continued functionality of our existing environment. TCHSA is asking to renew the Microsoft Enterprise Software Assurance agreement for all our Microsoft licensing which is cost effective and simplifies the management and compliance for licensing. Some of the benefits of this Microsoft Enterprise Software agreement are:
• Flexibility and scalability - As demands for licenses increase or decrease TCHSA has the flexibility to adapt the number of licenses to meet the changing needs on a real time basis.
• Budgeting- The Enterprise agreement allows TCHSA to easily budget for annual licensing by fixing the cost for 3 years at a significantly reduced cost.
• Upgrade from Microsoft 365 G3 to Microsoft 365 G5, which includes all Office 365 features plus Windows 11 Enterprise and Enterprise Mobility.
• Meets the requirement of continued integration for our Microsoft Server Configurations.
• Facilitates the Windows operating system, Email/Exchange, Office Suite, Teams Communications and Conferencing, SharePoint, Visio, Power Apps and more.
• Security- This agreement will allow us to upgrade immediately to the latest software versions, with no additional cost, which helps TCHSA meet best practice standards in the Information Technology (IT) industry for security.
• Upgrades Security to G5 which enhances threat protection, automated email phishing investigations, compromised user account detection and recommendations for mitigation, and advanced user identity and access management for all TCHSA systems including the network.
• Technical and End-User Training- A benefit of this agreement is training vouchers for technical training and online end-user training.
This agreement allows the agency to utilize a hybrid blend of licensing. It will migrate the agency to Microsoft 365 G5 user and server licenses while upgrading to G5 Security features. These features include:
• Automated investigation and responses for phishing emails and compromised user accounts.
• Compromised user detection and recommendations for mitigation.
• Attack simulation and training.
• Reporting on campaigns targeting the agency.
• Threat explorer and threat trackers for trending security threats.
• User access reviews and management.
• User identity protection (capture risky sign-ins, risky users, leaked credentials).
• Advanced hunting for threats.
• Vulnerability management.
• Evaluation lab for testing threats and attacks.
If TCHSA does not move forward with the requested action for software updates through the Microsoft Enterprise program including Volume Licensing and Server and Cloud Enrollment services, we will incur a higher cost to renew or upgrade our current Microsoft licensing. Additionally, this will leave the agency more vulnerable to cyber-attacks due to outdated software thereby creating the potential for HIPAA compliance issues.