Contra Costa Health Services (CCHS) needs have changed and now require the use of Microsoft G5 license. Currently CCHS utilizes the G3 license which lacks specific security, active directory and business intelligence tools that are now required. In 2021, the California Department of Technology entered into an agreement with Microsoft authorized reseller Crayon Software Experts LLC (Crayon) that allows all public agencies to purchase Microsoft G5 licenses at the lowest available cost. CCHS will procure Microsoft 365 (M365) licensing through a California Department of Technology (CDT) negotiated, competitively bid contract with Crayon. Crayon is one of a handful of Microsoft Licensing Solutions Providers (LSPs) that are authorized to transact software/subscriptions via a Microsoft Enterprise Agreement licensing program. Crayon is the LSP that was selected by the California Department of Technology, after a competitively bid Request for Offer Process, to manage the CDT M365 G5 Agreement. The CDT contract with Crayon began on April 1, 2021 and runs through March 31, 2026 and will allow the County to reserve the required licenses by using an online application process through CDT.  
  
As a party to CDT’s Service Catalog General Terms and Conditions, which offers volume licensing discounts, with projected annual savings up to $900,000.00 for CCHS compared to purchasing G5 licenses under our current Microsoft Enterprise Agreement. CCHS will utilize the contract starting on April 1, 2022 and participate for the remaining 4 years of the contract which ends on March 31, 2026.  
  
CDT has negotiated M365 licensing through a competitive bid process which starts at a 25% discount off of current pricing in year-one with discounts that decrease in % over the five years. CDT will charge administrative fees of approximately 3.5% to broker/manage the statewide Enterprise Licensing Agreement (ELA).  
  
The CDT contract with Crayon means that the County will be a Microsoft enrolled affiliate under the Enterprise Agreement between Microsoft and Riverside County. Microsoft contracts with a local agency in the state (previously San Bernardino, and now Riverside), and then permits other local agencies in the state to enroll under that agreement as affiliates. The CDT agreement obligates the County to defend and indemnify the CDT for third party claims caused by the County’s violation of software licenses, copyrights, trademarks, trade names or any proprietary data, information or materials designated as confidential and supplied under the agreement. Under the Microsoft agreement the County is obligated to defend Microsoft for third party claims caused by the County’s misappropriation of trade secrets or other rights of third parties or use of the Microsoft product in violation of law.  
  
Approval of this purchase order will enable CCHS to continue to meet the demands of a fully integrated health system and improve the quality of services provided to our residents and businesses and reduce our cyber risks.  

If this purchase order is not approved, CCHS will lose ELC Grant funding which will have a negative impact on the IT Division to meet the demands of the department.