F2. Award Microsoft Office License AgreementCITY OF
KALISPELL
TO: Jarod Nygren, City Manager
FROM: Erika Billiet, Information Technology Director
SUBJECT: Recommendation to Award Office 365 Agreement
MEETING DATE: January 5, 2026
BACKGROUND: The City has allocated funds to renew Office 365 licenses.
The City advertised a request for proposal (RFP) due December 22, 2025, for an agreement to
renew the Microsoft Office 365 licenses for the City of Kalispell tenant.
The City requested proposals to renew the Office 365 licenses for Defender, Entra ID, Exchange
Online, Exchange Archive, G3, M365 Apps, and Teams Dial Out with a three-year term
agreement. Licenses are assigned on a per user basis and are maintained for services the City
staff use already. The Office 365 agreement includes licensing that provides cloud hosted email,
email archive, discovery, communication, and security functions. The 2026 — 2028 renewal of
the licenses is the first time in the Office 365 renewal history with the City, the Microsoft
agreement term has exceeded costs and requires an RFP based on procurement policies.
Four vendors submitted proposals. The proposals were reviewed and scored based on the RFP
criteria.
RECOMMENDATION: Staff is recommending SHI be awarded the Office 365 agreement for
enrollment 59200866 for the three-year agreement. Annual billing is at $99,157.94.
ACTION REQUESTED: Motion to select SHI as the firm to proceed with the Office 365
agreement renewal.
FISCAL EFFECTS: Funding for the Office 365 renewal are budgeted in the Information
Technology line item 9 6030-403-410585-358.
ALTERNATIVES: As suggested by the City Council.