Overview of Info Know-how Venture Proposals

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The 2023-24 Price range

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Introduction

This publish gives an summary of the knowledge expertise (IT) initiatives within the Governor’s proposed 2023-24 funds. We first present related background info on the California Division of Know-how (CDT) and the phases of an IT challenge. We then determine every of the funds proposals to plan, develop, and implement IT initiatives. We offer our evaluation of subjects frequent to a number of IT project-related proposals and supply choices for legislative consideration. (We don’t present in-depth evaluation of any particular person funds request within the publish, however hyperlink to different IT project-related analyses in different publications organized by funds space.)

Background

Function of CDT. CDT is an entity inside the Authorities Operations Company with broad authority over all features of expertise in state authorities. This publish focuses on two of the division’s duties: (1) to evaluate and approve IT initiatives proposed by state entities, and (2) to supervise improvement and implementation of accepted initiatives till accomplished.

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

• Planning (PAL). The PAL course of divides state IT challenge approval into 4 levels: (1) enterprise evaluation, (2) options evaluation, (3) answer evaluation, and (4) challenge 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 levels present a whole challenge plan together with the fee, schedule, and scope of the challenge. Determine 1 gives a graphical depiction of the PAL course of.
• D&I. As soon as CDT approves a proposed IT challenge, state entities can begin challenge D&I. Initiatives can strategy D&I in a number of methods: (1) the standard “waterfall” strategy, (2) the “agile strategy,” or (3) some mixture of conventional and agile approaches. Utilizing the standard strategy, entities develop your entire scope of the challenge earlier than it’s carried out. Utilizing the agile strategy, in contrast, entities develop among the challenge scope (generally known as modules) and implement it whereas the remainder of the scope is being developed. A mix of the standard and agile approaches would possibly develop challenge scope as modules, however mix the modules into just a few discrete releases for implementation to cut back the frequency of consumer testing and coaching.
• M&O. As soon as IT challenge D&I is accomplished, a challenge 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 Venture Procurement and Oversight. Two latest modifications to state IT challenge procurement and oversight are related to this publish.

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

Governor’s 2023-24 Price range

Governor’s IT Venture Proposals Whole $641 Million ($432 Million Normal Fund) and 275.2 Positions. In response to CDT and the Division of Finance (DOF), 40 funds proposals within the Governor’s 2023-24 funds are associated to IT challenge proposals (Determine 2). These proposals request a complete of $641 million ($432 million Normal 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 Venture-Particular Work Merchandise

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

Evaluation

Elevated Use of Problem-Based mostly Procurements With out Analysis. Quite a few the IT challenge proposals within the Governor’s 2023-24 funds used challenge-based procurements (such because the State Water Sources Management Board’s Water Rights Modernization Continuation proposal) or are planning to make use of mentioned procurements. Some procurements might require upfront funding from the state for demonstrations, proofs of idea, and prototypes (such because the Division of Meals and Agriculture’s Rising Threats Info Administration System proposal). Nonetheless, now we have seen no analysis carried out by the administration of challenge-based procurements to find out whether or not, for instance, extra planning prices for these demonstrations, proofs of idea, and prototypes led to improved challenge D&I outcomes.

Massive Enterprise Modernization Efforts Make Legislative Oversight Extra Difficult. Two IT challenge proposals within the Governor’s 2023-24 funds—DHCS’s MES Modernization proposal and EDD’s EDDNext Modernization proposal—are enterprise modernization efforts that comprise quite a few IT initiatives in several phases of PAL, D&I, and M&O. For each of the efforts, the Legislature accepted quarterly reporting necessities and, for MES Modernization, CDT began portfolio-level unbiased challenge oversight studies to trace IT efforts and initiatives which are a part of the bigger modernization effort. In each instances, we discover these oversight instruments to be inadequate to watch advanced and expensive modernization efforts with vital programmatic results. For instance, whereas particular person efforts and initiatives are tracked inside the portfolio, what efforts or initiatives are most important to the success of the modernization effort and/or pose essentially the most danger if they don’t seem to be profitable typically is unclear. Additionally, programmatic results usually are not all the time evident, as particular person efforts and initiatives could be centered on modernization of technical features inside IT methods (akin to claims processing or drawing down federal funds) slightly than sure applications and/or companies. Figuring out how a lot a posh, massive modernization effort will value and over what time-frame is also troublesome for the Legislature to supervise because the scope of the trouble shouldn’t be all the time identified on the outset.

Initiatives More and more Use Mixed Agile and Conventional D&I Approaches With Blended Outcomes. We discover that extra IT challenge administration employees are aware of the agile strategy to challenge D&I. We additionally discover that extra initiatives acknowledge the realities each of the annual legislative funds course of and of state entities’ continued programmatic duties that necessitate some parts of the standard strategy to challenge D&I. Mixtures of agile and conventional approaches to challenge D&I, subsequently, have gotten extra frequent. For instance, for the Division of Social Companies’ Baby Welfare Companies – California Automated Response and Engagement System challenge, the challenge D&I strategy modified to a mix of agile and conventional approaches as a result of county eligibility employees wanted to restrict the quantity of consumer testing and coaching required. Discrete releases of latest functionalities, slightly than steady implementation of latest functionalities, permits employees to proceed to give attention to their main workload. Nonetheless, we discover that new oversight instruments from CDT for agile or mixed agile and conventional initiatives are inadequate. For instance, CDT launched an annual iterative challenge report (IPR) for accepted IT initiatives utilizing an agile or mixed agile and conventional strategy to permit, for instance, reprioritization of modules with out a Particular Venture Report (SPR). (An SPR is a report required for initiatives that deviate from their baseline value, schedule, and scope by roughly 10 %.) Nonetheless, the IPR as launched might compromise legislative oversight if the challenge value, 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 advocate the Legislature undertake supplemental report language (SRL) that directs each CDT and DOF to guage, at a minimal, whether or not extra planning prices requested by state entities for challenge-based procurements have led to improved challenge D&I outcomes. DOF might use quarterly challenge planning expenditure studies for proposed IT initiatives to tell their evaluation. We additionally advocate the Legislature request this report no later than April 1, 2024 to tell the 2024-25 funds course of.

Direct CDT and DOF to Work With Legislature on Oversight of Enterprise Modernization Efforts and Initiatives Utilizing Agile Method. We advocate the Legislature undertake SRL that directs CDT and DOF to work with legislative employees on choices to enhance oversight of enterprise modernization efforts and initiatives utilizing an agile strategy or mixed agile and conventional approaches to challenge D&I. The report might think about, for instance, whether or not new standardized studies for these efforts and initiatives, each to CDT and the Legislature, are warranted. The report additionally might think about whether or not modifications in CDT’s PAL course of are wanted to persistently plan these efforts and initiatives. We additionally advocate the Legislature request this report no later than April 1, 2024 to tell the 2024-25 funds course of.

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