Title
District Attorney's Office recommending the Board:
1) Approve and authorize the continuation of perpetual Agreement 6126 with GFI Digital (previously Karpel Computer Systems, Inc.) through October 27, 2029 for Microsoft Office and M365 licenses in the estimated annual cost of $70,627.20; and
2) Approve and authorize the Chair to execute Amendment VI to Agreement 6126 with GFI Digital (previously Karpel Computer Systems, Inc.) updating the compensation section of the agreement and incorporating the transition of Karpel’s iNSIGHTbyKarpel (iNSIGHT), the company’s Information Technologies Management Services Division, to GFI Digital, contingent upon County Counsel and Risk Management approvals.
FUNDING: General Fund.
Body
DISCUSSION / BACKGROUND
On November 16, 2021, with Legistar file 21-1766, the Board authorized the department to enter into a perpetual software agreement (Agreement 6126) with Karpel Computer Systems, Inc. (Karpel) in an initial annual amount of $53,820 for the procurement of 75 Microsoft Office/M365 licenses, as well as one-time cost for migration services from G-Suite to M365.
On April 19, 2022, with Legistar file 22-0041, the Board approved Amendment I to Agreement 6126 to include ongoing as-needed support services and increased the annual total compensation amount of the contract for a new total not to exceed $63,820 for the first year of the agreement, as amended.
On June 6, 2023, with Legistar file 23-0842, the Board approved Amendment II to Agreement 6126 to increase the number of M365 licenses from 75 to 85 and add the Microsoft Office 365 G5 Compliance Government Community Cloud (GCC) license with an estimated annual cost of $153.60. The G5 Compliance GCC license is used to assist with the high volume of Public Request Act (PRA) inquires. The estimated annual license renewal fees totaled $47,890.
On July 16, 2024, with Legistar file 24-0925, the Board approved Amendment III to Agreement 6126 to update the compensation section language and annual Microsoft 365 license fees, increasing the existing license fee from $14.80/month to $16.30/month for a total increased annual cost of $1,530. The estimated annual license renewal fees totaled $49,420.
On February 25, 2025, with Legistar file 24-2087, the Board approved Amendment IV to Agreement 6126 to add one Exchange Online Plan 1 GCC license at $4.80 per month, for an annual amount of $57.60. The estimated annual license renewal fees totaled $49,478.
On June 17, 2025, with Legistar file 25-0444, the Board approved Amendment V to Agreement 6126 to increase the as-needed support services rate from $140/hour to $175/hour, document the increase of the M365 unit price from $32/month to $36/month, add an additional Microsoft Office 365 G5 Compliance GCC license for a total quantity of two, and add language stating there is a 5% fee increase if not paid in full annually. Additionally, Article XII, D, Termination or Cancellation without Cause, was amended to allow the County to be refunded the prorated cost of the annual license payment, should the County issue a notice of termination. The estimated annual license renewal fees totaled $53,711.
The proposed Amendment VI to Agreement 6126 will include the following changes: amend Article III, Compensation for Services, to increase the number of M365 licenses from 85 to 90, add one MS 365 GCC G5 license at $720 per year, add Office 365 File Storage GCC NCE at $2.40 per gigabyte (GB), add Microsoft Copilot Studio GCC NCE at $2,400 per year, and incorporate Microsoft Visio Online (Plan 2) at $180 per year for a total of five licenses, which is currently held under perpetual Agreement 8042 with Karpel Computer Systems.
The estimated annual license renewal fees total $70,627.20. Karpel’s Information Technologies Management Services Division was acquired by GFI Digital (GFI) on June 1, 2026. Amendment VI incorporates the transition of Karpel’s iNSIGHTbyKarpel (iNSIGHT) to GFI.
ALTERNATIVES
Should the Board opt not to approve and execute Amendment VI to perpetual agreement 6126 with GFI Digital, previously Karpel Solutions, Inc., the office would need to explore alternatives for ongoing M365 and support.
PRIOR BOARD ACTION
Legistar file 21-1766 - 11/16/2021 - Approval of the District Attorney’s perpetual Karpel agreements.
Legistar file 22-0041 - 04/19/2022 - Approval of Amendment I to perpetual contract 6126, adding ongoing as-needed support services and increasing the not-to-exceed of the contract to $63,820.
Legistar file 22-0489 - 05/24/2022 - Approval of the District Attorney’s perpetual agreements in May 2022.
Legistar file 22-1087 - 06/28/2022 - Approval of amended Exhibit A-1 associated with Amendment I to perpetual Agreement 6126 with Karpel Computer System, Inc in order to validate the fully executed amendment for the Microsoft M365 Migration Project.
Legistar file 23-0842 - 06/06/2023 - Approval of Amendment II to perpetual Agreement 6126 to increase the number of M365 licenses from 75 to 85 and add the Microsoft Office 365 G5 Compliance GCC license with an annual cost of $153.60.
Legistar file 24-0923 - 06/25/2024 - Approval of the District Attorney’s perpetual agreements in June 2024.
Legistar file 24-0925 - 07/16/2024 - Approval of Amendment III to Agreement 6126 to update the compensation section language and annual Microsoft 365 license fees, increasing the existing license fee from $14.80/month to $16.30/month for a total increased annual cost of $1,530.
Legistar file 24-2087 - 02/25/2025 - Approval of Amendment IV to Agreement 6126, adding the Exchange Online Plan 1 Government Community Cloud (GCC) license at $4.80 per month for an annual amount of $57.60, updating the overall annual license fees to $49,477.20.
Legistar file 25-0444 - 06/17/2025 - Approval of the District Attorney’s perpetual agreements in June 2025, and approval of Amendment V to Agreement 6126 increasing the as-needed support services rate from $140/hour to $175/hour, documenting the increase of the M365 unit price from $32/month to $36/month, adding an additional Microsoft Office 365 G5 Compliance GCC license for a total quantity of two, and adding language stating there is a 5% fee increase if not paid in full annually. Additionally, Article XII, D, Termination or Cancellation without Cause, was amended to allow the County to be refunded the prorated cost of the annual license payment, should the County issue a notice of termination.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Procurement & Contracts
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost. Sufficient appropriations are included in the District Attorney’s Fiscal Year 2026-27 budget and will be included in future years’ budgets.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Forward one executed copy of Amendment VI of Agreement 6126 to the Chief Administrative Office Central Fiscal Division, Attention: Kelley Lawrie.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Vern Pierson, District Attorney