Resolving Issues with Microsoft Software Orders to Educational Resources, Inc. – Update Oct 13, 2009

This is a notice with instructions below about Microsoft Select software orders usually fulfilled by Education Resources under a statewide Master Agreement with the Monterey County Office of Education through the CalSAVE program.

Long-time CalSAVE vendor Educational Resources, Inc. (ER), which sells Microsoft Academic Select Licenses to California school districts, went through an asset sale on Friday, October 9. That means that another company came in to buy those portions of Educational Resources’ business which had value and which the buyer saw as viable business units.

The new investor did not pick up the ER business of selling Microsoft licenses to California school districts. CalSAVE’s prices for Microsoft products through the Monterey County Office of Education and Educational Resources were extremely low, and the business for Educational Resources was a very low-margin business for the company.

When disclosure of the pending asset sale was made known to Microsoft, the giant software publisher suspended Educational Resources from further selling Microsoft licenses, worrying that it may not be paid for any licenses sold by Educational Resources.

With Educational Resources not able to fulfill requests for Microsoft licenses, Educational Resources technically went into default with its purchasing contract with the Monterey County Office of Education, who holds the Master License Agreement with Microsoft and the purchasing contract with Educational Resources.

Microsoft only qualifies a handful of Large Account Resellers (LARs) to provide low-priced cooperative-based pricing for Microsoft Academic Select Licenses.

Today, Tuesday, October 13, the Monterey County Office of Education announces that it has negotiated with CDW-G, another authorized LAR, to replace Educational Resources and to fulfill current and future Microsoft orders on a temporary basis. All existing orders not yet fulfilled and originally sent to Educational Resources will be honored at existing prices bid by Educational Resources.

CDW-G already has an existing, competitively bid purchasing contract with Monterey County Office of Education, so all purchases through CDW-G will have piggybackable bid protection.

If you are getting this notice by e-mail, it is because we have identified your district as having a pending, unfilled order from Educational Resources. To have your order for Microsoft Select Licenses filled by CDW-G, you will need to void your purchase order with Educational Resources and issue a new purchase order to CDW-G for the same amount and quantity.

Make your PO out to CDW-G, 230 N. Milwaukee Avenue, Vernon Hills, IL 60061. Fax your new purchase orders to (866) 488-3729.

If you originally sent a purchase order for Microsoft licenses directly to Educational Resources and not to CalSAVE, we may not know about your order, and you should follow the same instructions.

The temporary agreement with CDW-G will be in place for 90 days. In the meantime, MCOE will be deciding whether to formally go to bid to find a permanent replacement for Educational Resources.

Any school district that has already received a license number from Educational Resources has a valid license, and it need not worry about the validity or authenticity of the license. It has been registered with Microsoft and is in effect and any open invoices should be paid to Educational Resources.

Education Resources also has contracts with MCOE for Adobe and Filemaker software. Orders for these products through Educational Resources will be honored until December, 2009. MCOE will be bidding for replacements for these products lines in the immediate future.

Any more news and updates will be posted on the CalSAVE web site at www.CalSAVE.org. If you have any questions, we have set up a special e-mail address for these issues. Please write to ERissues@epylon.com.