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Department: Technology Solutions
Director: Roger Wright, Chief Information Officer
Agenda Item: ChatGPT Enterprise Solution
Recommended Action: Purchase from an Existing Contract
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Item Summary
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To approve the purchase and implementation of ChatGPT Enterprise Solution for Technology Solutions from Carahsoft Technology Corporation in the amount of $190,000 (DIR-CPO-5683), Microsoft Enterprise from SHI Government Solutions, Inc. in the amount of $10,000 (DIR-CPO-5237), Darwin AI from Carahsoft Technology Corporation in the amount of $150,000 (DIR-CPO-5687), and an additional $40,000 that will remain available for approved increases in license demand, usage capacity, implementation needs, and other costs within the authorized scope in the not-to-exceed amount of $390,000 through an existing contract; and authorizing the City Manager to execute all necessary documents.
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Background
City departments are increasingly using or requesting artificial intelligence (AI) tools for drafting, research, analysis, document summarization, and meeting follow-up. A Citywide approach will provide employees with approved tools under consistent security and data-handling requirements while allowing the City to manage adoption, cost, and risk, and reduce fragmented purchasing.
Following a review of operational needs and information security requirements, Technology Solutions recommends three complementary solutions:
1. ChatGPT Enterprise as the City’s standard general-purpose generative AI platform. It provides enterprise security, administrative controls, usage monitoring, and the flexibility to support a broad range of City work within a centrally managed environment.
2. Microsoft Teams Premium for employees with an approved need for AI-generated meeting recaps, notes, recommended tasks, or enhanced meeting controls.
3. Darwin AI as the City’s AI governance platform to identify and monitor AI tools in use, enforce City policies, protect sensitive information, and maintain records supporting compliance and oversight.
These tools are expected to reduce time spent on appropriate administrative and analytical work and allow employees to devote more time to service delivery, problem-solving, and work requiring human judgment. Expected benefits include faster preparation of resident communications, more timely responses to inquiries, reduced time summarizing meetings and documents, more consistent information, and quicker analysis supporting operational decisions.
Implementation will be supported by City policies and procedures, required employee training, defined data-handling requirements, human review of AI-generated work, access approval processes, and ongoing governance. Technology Solutions and participating departments will monitor adoption, remove or reallocate unused licenses, document effective use cases, and evaluate whether the tools improve service delivery, processing time, or the quality and consistency of City work.
The City will begin with ChatGPT Enterprise’s minimum purchase of 150 licenses, estimated at $57,024 annually, with up to $190,000 allocated for additional licenses and usage capacity as departments demonstrate need.
Microsoft Teams Premium costs approximately $10 per user per month. Up to $10,000 will be allocated, with licenses assigned only to employees with an approved business need for its enhanced AI or meeting-protection capabilities. Teams Premium is not required to record a standard Teams meeting.
Darwin AI is estimated at $150,000 for licensing and implementation.
An additional $40,000 will remain available for approved increases in license demand, usage capacity, implementation needs, and other costs within the authorized scope. Specialized AI solutions outside this scope will continue to require the City’s established review and approval process.
If this initiative is not approved, the City will lack a standardized enterprise approach for the growing use of generative AI. Departments may continue seeking individual solutions to meet operational needs, increasing the likelihood of fragmented purchasing, inconsistent security and data-handling practices, limited visibility into AI use, and duplication of costs. Approval establishes a controlled, measurable framework for AI adoption rather than allowing its use to develop independently across departments.
The City is authorized to purchase from the State Contract list pursuant to Chapter 271 Subchapter D of the Texas Local Government Code and by doing so satisfies any State Law requiring local governments to seek competitive bids for items. (DIR Contract No. DIR-CPO-5683, DIR-CPO-5237, and DIR-CPO-5687 / City of Plano Contract No. 2026-0672-O)
Financial Summary/Strategic Goals
This request is to approve the purchase and implementation of Artificial Intelligence Enterprise Solutions in the estimated total amount of $390,000. Funding for this item is available in the estimated amount of $240,000 in the 2026-27 Technology Solutions Fund and $150,000 in the 2026-27 Technology Fund.
Approval of this item will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.