The Department of Premier and Cabinet (DPC) manages an enterprise agreement (EA) with Microsoft, which was originally implemented in April 2014 and expired in 2017.
DPC and Microsoft agreed to extend the term of this EA to 31 March 2020. As part of the extension, a substantial number of terms and conditions were renegotiated and the revised EA was implemented via a Deed as Variation 3 to the contract.
The EA is for the provision of Microsoft products and services. The EA terms, licensing rules, scope of supply and discount arrangements are captured in this revised strategic contractual arrangement. It provides participating departments and agencies with a mechanism for the discounted procurement of software assurance (SA) for their existing Microsoft assets and for new Microsoft licenses or service offerings as well as various other rights and benefits.
As Microsoft does not sell directly to government agencies, DPC also implemented a state purchase contract (SPC) which appointed Data#3 as the sole licensed solutions provider (LSP) to transact all sales under the EA, to coordinate the annual true-up activity and assist agencies with licensing advice.
Data #3 was appointed at the new LSP for a three year term from 30 June 2016 to 30 June 2019.
Data#3 will also undertake a managed software asset management (SAM) function for participants in this EA.
Key EA benefits
The contract aligns to the government’s better financial management strategies and supports stronger industry policies. This is achieved by having:
- a common desktop across the Victorian Government;
- flexibility in licensing for transfers or headcount changes;
- supporting the option of increased mobility and the use of multiple devices per individual;
- improved identity management and information security;
- enabling collaboration via Yammer Enterprise; and
- approved online service terms for cloud based products.
Department of Premier and Cabinet
Conditions of Use
Who can access this SPC?
Departments and agencies which are participants in the EA may procure from this contract.
Agencies not participating in the EA may consult the category manager to confirm eligibility.
Departmental Contract Managers
During the life of the contract the category manager will be responsible for performance and compliance within the following areas:
- ensuring the contract continues to provide a value for money outcomes;
- reviewing compliance to key performance indicators;
- assessing and monitoring industry and benchmark data and trends;
- tracking and reporting spend and savings;
- monitoring utilisation of the agreement;
- ensuring compliance to the terms of the EA;
- analysing consumption patterns and evaluating demand profiles;
- validating discount compliance;
- identifying and managing risks;
- resolving matters of dispute between vendors and participants; and
- assessing and containing contract leakage.
What you can buy from this SPC
The EA's scope is discussed below.
- The EA covers both enterprise products (Office 365 and variants, Windows, etc) and additional products (SQL server, Windows Server, Project, Visio, etc.).
- Enterprise products: These include both the standard Office 365 E3 and E5 versions, and the secure productive enterprise (SPE) product which is an Office 365 product with additional security features to assist users to meet data security and privacy obligations and provides two types of offering (84 KB).
- Users: There are over 38,000 users across 29 enrolled departments and agencies participating under the EA. Over 16,000 subscribe to the SPE.
- The EA also allows certain other eligible agencies to renew their separate EA’s upon expiry using the terms and discounts of this Agreement.
- Yammer: The EA provides Yammer Enterprise for effective collaboration within and across departments.
- Deployment Model: Cloud-based “Click to run” deployment model may be implemented to deploy Office 365 products.
- Enrollments: With a couple of exceptions, all enterprise enrollments are held in DPC's name.
- Tenant: Each agency has a designated web space called a tenant, and an agency employee must be nominated as online services manager to support and download products on behalf of the agency. The tenants will be in the name of that agency.
Microsoft is currently revising a frequently asked questions (288 KB) document for stakeholder reference and will be posted once completed.
Outline of the EA contract
The original contract with Microsoft was extended by mutual agreement from 1 April 2017 through 31 March 2020. It was originally meant to expire on 31 March 2017.
The following variations to that contract is discussed below.
- Variation 2 amended the rights and obligations relating to the expenditure of certain investment funding.
- Variation 3 formalised the extension of the contract term for a further three years through 31 March 2020 and introduced a number of changes to contract terms and conditions.
RULES OF USE: How to use this SPC
The agency’s online services manager is to be contacted should departments and agencies wish to procure enterprise desktop products “as a service” as well as other “as a service” subscription products. The latter will usually generate additional costs, and may need to be approved via the usual approval process for your agency.
The online services manager will be able to advise you regarding the “as a service” products to which your department/agency is entitled under the EA and to arrange download via your agencies’ tenant.
The LSP should be contacted for the procurement of items defined as Additional Products (as they perpetual licensed products).
Microsoft Enterprise Agreement Licensing Solutions Provider registered users are automatically granted access to the confidential section of this contract and need not re-register.
Confidential contractual information is available to approved users.
A new confidential systemhas been established and users are to complete an online registration form. A step-by-step process is provided to interested users. These instructions are detailed in the State Purchase Contracts Registration Guide (126 KB).
Please note confidential information may only be accessed and used for the purpose of joining the EA and procuring under the EA.