REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 9, 2026
FROM
JOSIE GONZALES, Assessor-Recorder-County Clerk
SUBJECT
Title
Purchase Orders with Zones LLC for Microsoft Corporation Enterprise Licenses
End
RECOMMENDATION(S)
Recommendation
1. Authorize the Purchasing Agent to issue Purchase Orders to Zones LLC, for Microsoft Corporation enterprise licenses, against the California County Information Service Directors Association Enterprise Agreement No. 25-645, in a total not-to-exceed amount of $1,000,000, for the period of July 1, 2026, through June 30, 2029.
2. Authorize the Purchasing Agent to execute any licensing program enrollment forms required by the Microsoft Corporation or Licensing Solution Partner, subject to County Counsel review.
(Presenter: Josie Gonzales, Assessor-Recorder-County Clerk, 382-3204)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). The costs for Microsoft Corporation (Microsoft) enterprise licenses, within the enterprise environment, will not exceed $1,000,000, from July 1, 2026, through June 30, 2029. The estimated annual amount is $269,274, or $807,823 for the three-year period. A contingency amount of $192,177 has also been included because the annual estimated amount may fluctuate during the three-year period depending on department usage overages, add-ons, and the need for additional licenses. The costs of the licenses are billed annually with a single invoice per year. Annual fluctuations (known as true ups) could necessitate additional invoices. Adequate appropriation and revenue have been requested in the Assessor-Recorder-County Clerk’s (ARC) 2026-27 budget (3111001000 and 3110002340) and will be included in future recommended budgets.
BACKGROUND INFORMATION
ARC utilizes numerous computer systems that rely on Microsoft operating systems and related software products such as Microsoft 365 for email, documents, SharePoint, and Active Directory for managing user access. The County can purchase Microsoft enterprise licenses at a reduced cost by participating in the California County Information Service Directors Association Enterprise Agreement (CCISDA EA) between Riverside County and Microsoft. The County has leveraged this process for many years to govern the use of its enterprise licenses.
On August 19, 2025 (Item No. 30), the Board of Supervisors (Board) authorized County departments to participate in the CCISDA EA, approved as Agreement No. 25-645, including non-standard terms, between Riverside County and Microsoft, governing the use of enterprise licenses, for the period beginning June 30, 2026, and continuing until terminated by either party.
ARC recommends authorizing the Purchasing Agent to issue Purchase Orders to Zones LLC, for the purchase of Microsoft enterprise licenses, leveraging the CCISDA EA for greater cost savings, in a not-to-exceed amount of $1,000,000, from July 1, 2026, through June 30, 2029.
PROCUREMENT
The CCISDA EA negotiated between Microsoft and Riverside County was established in 2019 using a competitive Request for Proposal (RFP) process that adheres to County guidelines and is available to all public entities. The Purchasing Department supports the use of the CCISDA EA as competitive justification.
The CCISDA EA allows for lower enterprise pricing levels for Microsoft products through approved Licensing Solution Partners (LSP) selected through the CCISDA EA RFP process. An LSP is a highly specialized, certified partner authorized by Microsoft to manage complex volume licensing agreements. They serve as the intermediary handling contracts and orders, often functioning as an external sales team for Microsoft. County departments utilizing the CCISDA EA are required to obtain competitive bids from at least three of the seven LSPs and award the responsive and responsible bidder with the lowest cost, then select and complete the authorized licensing program enrollment forms with the LSP, to be executed by the Purchasing Agent, subject to County Counsel review. The seven LSPs are as follows:
• CDW Government LLC
• Crayon Software Experts LLC
• Dell Marketing LP
• Insight Public Sector Inc.
• SHI International Corp.
• SoftChoice Corporation
• Zones LLC
ARC solicited bids via email from three of the LSPs listed above and received quotes as follows:
|
Vendor |
Location |
Total |
|
Crayon Software Experts LLC |
Dallas, TX |
$799,865.94 |
|
Dell Marketing LP |
Round Rock, TX |
$808,205.70 |
|
Zones LLC |
Auburn, WA |
$807,823.41 |
These quotes were evaluated based on costs. Crayon Software Experts LLC provided the lowest cost quote, however, due to the unresponsive nature of this vendor, Zones LLC is recommended for Purchase Orders to provide all services listed in the quote as the second lowest bidder. County Policy No. 11-04 requires departments to obtain Board approval for procurement of services that exceed $200,000 annually.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Kenneth Brown, Deputy County Counsel, 387-5455) on June 1, 2026; Risk Management (Noël Cantrell, Administrative Supervisor, 386-8890) on May 14, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on June 1, 2026; Innovation and Technology Department (Don Le, Interim Chief Information Officer, 388-5501) on May 14, 2026; and County Finance and Administration (Garrett Baker, Administrative Analyst, 387-3077) on June 1, 2026.