HomeMy WebLinkAboutBudget Extension - Technology ServicesMarch 31, 2022
For Board of County Commissioner approval,
Grant County
Department of Technology Services
35 C. St. NW
Suite 308
71�5 e � �
PO Box 37
�:��,� Ephrata, WA 98823
509.766.3190 -Phone
Grant County was randomly audited by Deloitte LLP, at the request of Microsoft. The audit focused on the
County's use of all Microsoft volume licensed software. The audit began in May of 2021 and has recently been
finalized. It was determined after extensive investigation, in cooperation with Deloitte LLP, that the County
had inadvertently installed more software than we were licensed to use. We were able to trace this back as far
as 2008.
Much of this is attributed to general misunderstandings of how Microsoft accounts for its licensing. Microsoft
does not activate software in the same way as other software manufactures. Nearly all software (other than
Microsoft), you need to have different levels of licensing to activate certain features. When activating
Microsoft operating systems or applications like SQL Server, you are automatically given full access, and are
never prompted to add licensing to additional features. This leads the installer to believe that adequate
licensing has been applied.
As a result of this shortfall, Grant County is obligated to "true -up" our licensing. The cost of this is
$155,443.51. (See attached quote). The terms of acquisition of the "under licensed" products are also
attached. Grant County is being extended the courtesy of paying discounted rates for the shortfall until May
30th, 2022.
Microsoft has also graciously offered to provide free training on Microsoft licensing to ensure that we never
have a situation like this occur again. We are in the process of scheduling that training now.
I recommend that a budget extension in the amount listed above be applied to the Technology Services
Software Maintenance budget line 501.179.00-0000.51880-3506, to cover the cost.
Respectfully,,
Josep Carter
Assistt Director
Grant 11ounty Technology Services
"TO MEET CURRENT AND FUTURE NEEDS, SERVING TOGETHER WITH PUBLIC AND PRIVATE ENTITIES,
WHILE FOSTERING A RESPECTFUL AND SUCCESSFUL WORK ENVIRONMENT."
Grant County Technology Services
35 C ST NW, Suite 308
EPHRATA, WA 98823
Vendor
SHI International Corp. (SHIIC)
290 Davidson Ave.
Somerset, NJ 08879
Date
P.O. No.
3/302022
406
APR 0 5 2022
Item
Description
Qty
Rate
Amount
Software Mainten ...
Microsoft SQL Server 2019 Enterprise License - 2 cores -
4
95348.25
37,393.00
Select Plus - linux, Win -Single Language
Software Mainten ...
Microsoft SQL Server 2019 Standard License - 2 cores -
36
2,437-89
87,764.04
volume - linux, Win -Single Language
Software Mainten ...
Win Svr Std Core 2022 Sngl 2 Lic Core Lic
12
91.96
103.52
Software Mainten ...
Win Server CAL 2022 Sngl UCAL
547
31.33
l7j337.51
Software Mainten...
Sales Tax
143,398.07
0.084
12,045.44
Quote #21808804 Microsoft Audit True Up
To be charged to account: 501.179.00.0000.518803506.
MAR 31
7
c 0 11 t"Inl
"J.
Total $155,443.51
TS Approval
BOCC Approval
Pricing Proposal
Quotation #: 21808804
Created On: 3/29/2022
Valid Until: 4/29/2022
County of Grant Inside Account
Executive
Joseph Carter
Ty Pellot
35 C ST NW Suite 310
290 Davidson ave,
Ephrata, WA 98823
Somerset, NJ 08879
United States
Phone: 732-652-3080
Phone: 509-766-3190 ext 3360
Fax: 732-652-3099
Fax:
Email: Ty_Pellot@shi.com
Email: jcarter@grantcountywa.gov
All Prices are in US Dollar (USD)
Product Qty Your Price Total
1 Microsoft SQL Server 2019 Enterprise - License - 2 cores - Select Plus - Linux, Win - 4 $9,348.25 $37,393.00
Single Language
Microsoft - Part#: 7JQ-01631
2 Microsoft SQL Server 2019 Standard - License - 2 cores - volume - Linux, Win - 36 $2,437.89 $87,764.04
Single Language
Microsoft - Part#: 7NQ-01588
3 Win Svr Std Core 2022 Sngl 2 Lic Core Lic 12 $91.96 $1,103.52
Microsoft - Part#: 9EM-00832
4 Win Server CAL 2022 Sngl UCAL 547 $31.33 $17,137.51
Microsoft - Part#: R18-06495
Subtotal $143,398.07
*Tax $12,045.44
Total $155,443.51
*Tax is estimated. Invoice will include the full and final tax due.
Additional Comments
SHI SPIN: #143012572
SHI-GS SPIN (For Texas customers ONLY): #143028315
For E -rate SPI orders, applicant shall be responsible for payment of any outstanding or ineligible costs if USAC rejects
reimbursement claim in whole or in part.
Please note, if Emergency Connectivity Funds (ECF) will be used to pay for all or part of this quote, please let us know as we will
need to ensure compliance with the funding program.
Hardware items on this quote may be updated to reflect changes due to industry wide constraints and fluctuations.
Thank you for choosing SHI International Corp! The pricing offered on this quote proposal is valid through the expiration date listed
above. To ensure the best level of service, please provide End User Name, Phone Number, Email Address and applicable Contract
Number when submitting a Purchase Order. For any additional information including Hardware, Software and Services Contracts,
please contact an SHI Inside Sales Representative at (888) 744-4084. SHI International Corp. is 100% Minority Owned, Woman
Owned Business. TAX ID# 22-3009648; DUNS# 61-1429481; CCR# 61-243957G; CAGE 1 HTFO
The Products offered under this proposal are resold in accordance with the SHI Online Customer Resale Terms and Conditions.
unless a separate resale agreement exists between SHI and the Customer.
Joseph W. Carter
From: Lara Raimondo (International Supplier) <v-Iraimondo@microsoft.com>
Sent: Monday, March 28, 2022 8:41 AM
To: Joseph W. Carter; Keith Conley; John Martin
Cc: Roderick O'Connor; Dan McCarthy
Subject: Microsoft Software Compliance Review I County of Grant I Closing email
Importance: High
Dear County of Grant,
Thank you for your time and support during the compliance process. This email provides a summary of the findings and next steps
toward closing out the inspection.
On March 4th, County of Grant, Deloitte, and Microsoft reviewed the Professional Service Firm's final findings in the Effective License
Position ("ELP") report. The table below summarizes the Microsoft Product licensing shortfall identified in the updated ELP report.
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After considering Customer's position as to the licensing shortfall products ("Shortfall Products") identified in the ELP report,
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SQL Server - Enterprise 2 -Core 2019 4
4
SQL Server - Standard 2 -Core 2019 36
36
Windows Server - Standard 2 -Core 2022 12
12
Windows Server - User CAL 2022 547
547
The License Agreement provides that, in the event under -licensing is found more than 5%, Customer must purchase licenses to cover
that under licensed use at the pricing set forth in the License Agreement rather than using associated volume licensing discounts.
However, Microsoft has agreed to allow County of Grant to purchase the Shortfall Products through the volume licensing channel if
purchase is made by May 30th, 2022 (5:00pm Redmond Time), allowing Customer to benefit from any discount pricing available
under associated volume licensing agreements. Please do complete the purchases by ordering relevant SKUs under an eligible
volume licensing agreement.
As required pursuant to the License Agreement, Customer is required to reimburse Microsoft for the Professional Services Firm fees
incurred in connection with the verification of compliance process. However, Microsoft has decided to allow Customer to waive this
payment.
County of Grant will receive a Closing Letter once the compliance purchase is complete. Receipt of signed Closing Letter will satisfy
all the requirements of this engagement and the Microsoft License Contract Compliance Review process will be officially closed.
Your Microsoft account manager Dan McCarthy has been copied on this email and will assist with the purchasing process, as
necessary.
Regards,
Lara Raimondo
Microsoft License & Contract Compliance
Working for Microsoft North America Finance Ops
Email: vdraimondo microsof .co �
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