Microsoft Licence Procurement

March 17, 2026 Cabinet (Cabinet collective) Key decision Approved View on council website

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Summary

...approved the procurement of a new Microsoft Enterprise Agreement, including M365 licences via direct award through the KCS Procurement Services framework, and delegated contract award authority to the Executive Director: Communities.

Full council record

Purpose

To procure core Microsoft User and
Infrastructure licences

Decision

RESOLVED that
 

i.     
the procurement of a new Microsoft Enterprise Agreement is
approved, including M365 licences via direct award through the KCS
Procurement Services: Y23065 –Software Products and
Associated Services framework.
 

ii.    
Authority is delegated to contract award to support the services
outlined in 3.1. of the report, to the Executive Director:
Communities, in consultation with the Cabinet Member for Leisure,
Culture, Public Protection.

Reasons for the decision

i.     
Microsoft licensing underpins the council’s core operational
systems, including productivity tools, security tooling, and
communication platforms. Any interruption would compromise service
delivery and place the council at legal and operational risk.
 

ii.    
The current Microsoft Enterprise Agreements end on 30th June 2026.
Microsoft licenses are available for purchase through approved
licensing partners only, rather than directly from Microsoft.
Switching Microsoft Licensing Partners yields minimal savings,
since government frameworks set the pricing for public sector
organisations. The Y23065 framework was procured under PCR 2015 and
enables compliant direct award under Regulation 33(8)(a).
 

iii.   
Microsoft sets national pricing, leaving resellers unable to
negotiate discount levels. Therefore, further competition would not
result in improved pricing.

Alternative options considered

i.     
Alternative licensing platforms (including Google Workspace and
other productivity suites) were reviewed but did not meet
organisational requirements in terms of feature set, integration,
device management capability, or security.
 

ii.    
Competing frameworks (e.g., Crown Commercial Services) have also
been reviewed; however, they do not align with timescales and would
not deliver any commercial advantage due to fixed Microsoft
pricing.

Related Meeting

Cabinet - Tuesday, 17 March 2026 - 6.30 pm on March 17, 2026

Supporting Documents

Cabinet Microsoft EA agreement procurement report.pdf

Details

OutcomeRecommendations Approved
Decision date17 Mar 2026
Effective from25 Mar 2026
Expected date17 Mar 2020
Originally due17 Mar 2020
Subject to call-inYes