Overview of Data Know-how Undertaking Proposals

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The 2023-24 Price range

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Introduction

This submit offers an outline of the knowledge expertise (IT) tasks within the Governor’s proposed 2023-24 price range. We first present related background data on the California Division of Know-how (CDT) and the phases of an IT venture. We then determine every of the price range proposals to plan, develop, and implement IT tasks. We offer our evaluation of matters frequent to a number of IT project-related proposals and provide choices for legislative consideration. (We don’t present in-depth evaluation of any particular person price range request within the submit, however hyperlink to different IT project-related analyses in different publications organized by price range space.)

Background

Function of CDT. CDT is an entity throughout the Authorities Operations Company with broad authority over all facets of expertise in state authorities. This submit focuses on two of the division’s obligations: (1) to evaluate and approve IT tasks proposed by state entities, and (2) to supervise improvement and implementation of permitted tasks till accomplished.

Phases of an IT Undertaking. A state IT venture goes via three distinct phases: (1) planning, (2) improvement and implementation (D&I), and (3) upkeep and operations (M&O). Most state IT tasks within the planning section (known as proposed tasks) are required to finish CDT’s Undertaking Approval Lifecycle (PAL)—the state’s IT venture approval course of. Some proposed tasks, akin to low price and/or low danger tasks, are delegated again to entities to plan, develop, and implement with out direct approval and oversight by CDT. Different proposed tasks are decided to be exempt from PAL, for instance, minor upgrades to present IT methods. As soon as permitted via PAL (known as permitted tasks), state IT tasks start D&I. As soon as D&I is accomplished, state entities start M&O of the IT system. We describe every section in additional element under:

• Planning (PAL). The PAL course of divides state IT venture approval into 4 phases: (1) enterprise evaluation, (2) alternate options evaluation, (3) resolution evaluation, and (4) venture readiness and approval. Every stage within the PAL course of requires entities to submit an related planning doc to CDT for its approval. Collectively, the planning paperwork from the 4 phases present a whole venture plan together with the associated fee, schedule, and scope of the venture. Determine 1 offers a graphical depiction of the PAL course of.
• D&I. As soon as CDT approves a proposed IT venture, state entities can begin venture D&I. Tasks can strategy D&I in a number of methods: (1) the normal “waterfall” strategy, (2) the “agile strategy,” or (3) some mixture of conventional and agile approaches. Utilizing the normal strategy, entities develop all the scope of the venture earlier than it’s applied. Utilizing the agile strategy, in contrast, entities develop among the venture scope (typically known as modules) and implement it whereas the remainder of the scope is being developed. A mix of the normal and agile approaches may develop venture scope as modules, however mix the modules into a number of discrete releases for implementation to cut back the frequency of consumer testing and coaching.
• M&O. As soon as IT venture D&I is accomplished, a venture turns into an IT system and enters M&O. M&O contains actions and prices related to a state entity’s ongoing repairs and persevering with use of a system.

Related Adjustments to IT Undertaking Procurement and Oversight. Two current modifications to state IT venture procurement and oversight are related to this submit.

• Problem-Based mostly Procurements. In January 2019, Governor Newsom signed an govt order (EO N-04-19) directing CDT and the Division of Basic Companies to develop new procurement approaches that outlined an issue for bidders to unravel and requested them to show their capacity to unravel it via demonstrations, proofs of idea, and prototypes. We usually refer to those new approaches as challenge-based procurements within the submit. The purpose of challenge-based procurements is to permit extra bidders to supply options to the state’s complicated issues, quite than requiring the state to pre-define options with detailed requirements-based solicitations.
• Enterprise Modernization Efforts. Giant state entities such because the Division of Well being Care Companies (DHCS) and the Employment Growth Division (EDD) are utilizing an enterprise venture administration strategy (that’s, managing a lot of concurrent and sometimes associated IT efforts and tasks) to modernize their applications and/or providers. As particular person IT tasks progress via completely different phases, CDT tries to offer oversight not solely of the person IT venture but additionally of all the enterprise portfolio of IT efforts and tasks. Key examples of this strategy are DHCS’ Medi-Cal Enterprise Methods (MES) Modernization and EDD’s EDDNext modernization effort.

Governor’s 2023-24 Price range

Governor’s IT Undertaking Proposals Whole $641 Million ($432 Million Basic Fund) and 275.2 Positions. In keeping with CDT and the Division of Finance (DOF), 40 price range proposals within the Governor’s 2023-24 price range are associated to IT venture proposals (Determine 2). These proposals request a complete of $641 million ($432 million Basic Fund) and 275.2 positions. A few of these proposals comprise non-IT project-related funding and/or positions, as we’re unable to separate IT project-related and non-IT project-related prices in every proposal.

IT Undertaking-Particular Work Merchandise

We don’t present in-depth evaluation of any particular person price range request on this submit, however we’ve coated the California Division of Corrections and Rehabilitation (CDCR) BIS Migration to S/4 HANA venture in a earlier publication The 2023-24 Price range: The California Division of Corrections and Rehabilitation—Migration of Enterprise Data System to Up to date Software program Platform (2/16/2023).

Evaluation

Elevated Use of Problem-Based mostly Procurements With out Analysis. Various the IT venture proposals within the Governor’s 2023-24 price range used challenge-based procurements (such because the State Water Assets Management Board’s Water Rights Modernization Continuation proposal) or are planning to make use of stated procurements. Some procurements could require upfront funding from the state for demonstrations, proofs of idea, and prototypes (such because the Division of Meals and Agriculture’s Rising Threats Data Administration System proposal). Nonetheless, we’ve seen no analysis carried out by the administration of challenge-based procurements to find out whether or not, for instance, further planning prices for these demonstrations, proofs of idea, and prototypes led to improved venture D&I outcomes.

Giant Enterprise Modernization Efforts Make Legislative Oversight Extra Difficult. Two IT venture proposals within the Governor’s 2023-24 price range—DHCS’s MES Modernization proposal and EDD’s EDDNext Modernization proposal—are enterprise modernization efforts that comprise a lot of IT tasks in several phases of PAL, D&I, and M&O. For each of the efforts, the Legislature permitted quarterly reporting necessities and, for MES Modernization, CDT began portfolio-level unbiased venture oversight reviews to trace IT efforts and tasks which might be a part of the bigger modernization effort. In each instances, we discover these oversight instruments to be inadequate to watch complicated and dear modernization efforts with important programmatic results. For instance, whereas particular person efforts and tasks are tracked throughout the portfolio, what efforts or tasks are most crucial to the success of the modernization effort and/or pose probably the most danger if they don’t seem to be profitable usually is unclear. Additionally, programmatic results should not all the time evident, as particular person efforts and tasks is perhaps centered on modernization of technical features inside IT methods (akin to claims processing or drawing down federal funds) quite than sure applications and/or providers. Understanding how a lot a fancy, giant modernization effort will price and over what timeframe is also troublesome for the Legislature to supervise because the scope of the hassle just isn’t all the time recognized on the outset.

Tasks More and more Use Mixed Agile and Conventional D&I Approaches With Combined Outcomes. We discover that extra IT venture administration employees are aware of the agile strategy to venture D&I. We additionally discover that extra tasks acknowledge the realities each of the annual legislative price range course of and of state entities’ continued programmatic obligations that necessitate some parts of the normal strategy to venture D&I. Combos of agile and conventional approaches to venture D&I, due to this fact, have gotten extra frequent. For instance, for the Division of Social Companies’ Baby Welfare Companies – California Automated Response and Engagement System venture, the venture D&I strategy modified to a mixture of agile and conventional approaches as a result of county eligibility staff wanted to restrict the quantity of consumer testing and coaching required. Discrete releases of latest functionalities, quite than steady implementation of latest functionalities, permits staff to proceed to concentrate on their main workload. Nonetheless, we discover that new oversight instruments from CDT for agile or mixed agile and conventional tasks are inadequate. For instance, CDT launched an annual iterative venture report (IPR) for permitted IT tasks utilizing an agile or mixed agile and conventional strategy to permit, for instance, reprioritization of modules with out a Particular Undertaking Report (SPR). (An SPR is a report required for tasks that deviate from their baseline price, schedule, and scope by roughly 10 %.) Nonetheless, the IPR as launched could compromise legislative oversight if the venture price, schedule, and scope change on an annual foundation with out clear measures of success.

Choices for Legislative Consideration

Direct CDT and DOF to Lead Analysis of Problem-Based mostly Procurement Adjustments. We suggest the Legislature undertake supplemental report language (SRL) that directs each CDT and DOF to guage, at a minimal, whether or not further planning prices requested by state entities for challenge-based procurements have led to improved venture D&I outcomes. DOF may use quarterly venture planning expenditure reviews for proposed IT tasks to tell their evaluation. We additionally suggest the Legislature request this report no later than April 1, 2024 to tell the 2024-25 price range course of.

Direct CDT and DOF to Work With Legislature on Oversight of Enterprise Modernization Efforts and Tasks Utilizing Agile Method. We suggest the Legislature undertake SRL that directs CDT and DOF to work with legislative employees on choices to enhance oversight of enterprise modernization efforts and tasks utilizing an agile strategy or mixed agile and conventional approaches to venture D&I. The report may contemplate, for instance, whether or not new standardized reviews for these efforts and tasks, each to CDT and the Legislature, are warranted. The report additionally may contemplate whether or not modifications in CDT’s PAL course of are wanted to constantly plan these efforts and tasks. We additionally suggest the Legislature request this report no later than April 1, 2024 to tell the 2024-25 price range course of.

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