Overview of Data Expertise Undertaking Proposals

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The 2023-24 Funds

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Introduction

This submit offers an outline of the data expertise (IT) initiatives within the Governor’s proposed 2023-24 funds. We first present related background data on the California Division of Expertise (CDT) and the phases of an IT mission. We then establish every of the funds proposals to plan, develop, and implement IT initiatives. We offer our evaluation of subjects widespread 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 funds request within the submit, however hyperlink to different IT project-related analyses in different publications organized by funds space.)

Background

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

Phases of an IT Undertaking. A state IT mission 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 section (known as proposed initiatives) are required to finish CDT’s Undertaking Approval Lifecycle (PAL)—the state’s IT mission 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 accredited by PAL (known as accredited 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 section in additional element under:

• Planning (PAL). The PAL course of divides state IT mission approval into 4 levels: (1) enterprise evaluation, (2) alternate options evaluation, (3) answer evaluation, and (4) mission 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 mission plan together with the fee, schedule, and scope of the mission. Determine 1 offers a graphical depiction of the PAL course of.
• D&I. As soon as CDT approves a proposed IT mission, state entities can begin mission D&I. Initiatives can method D&I in a number of methods: (1) the standard “waterfall” method, (2) the “agile method,” or (3) some mixture of conventional and agile approaches. Utilizing the standard method, entities develop your entire scope of the mission earlier than it’s applied. Utilizing the agile method, against this, entities develop among the mission scope (typically known as modules) and implement it whereas the remainder of the scope is being developed. A mixture of the standard and agile approaches would possibly develop mission scope as modules, however mix the modules into a couple of discrete releases for implementation to scale back the frequency of consumer testing and coaching.
• M&O. As soon as IT mission D&I is accomplished, a mission turns into an IT system and enters M&O. M&O consists of actions and prices related to a state entity’s ongoing maintenance and persevering with use of a system.

Related Modifications to IT Undertaking Procurement and Oversight. Two latest modifications to state IT mission 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 Providers to develop new procurement approaches that outlined an issue for bidders to unravel and requested them to display their capability to unravel it by demonstrations, proofs of idea, and prototypes. We usually refer to those new approaches as challenge-based procurements within the submit. The objective of challenge-based procurements is to permit extra bidders to supply options to the state’s advanced issues, reasonably 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 Providers (DHCS) and the Employment Growth Division (EDD) are utilizing an enterprise mission administration method (that’s, managing a variety of concurrent and sometimes associated IT efforts and initiatives) to modernize their applications and/or companies. As particular person IT initiatives progress by totally different phases, CDT tries to supply oversight not solely of the person IT mission but in addition of your entire enterprise portfolio of IT efforts and initiatives. Key examples of this method are DHCS’ Medi-Cal Enterprise Techniques (MES) Modernization and EDD’s EDDNext modernization effort.

Governor’s 2023-24 Funds

Governor’s IT Undertaking Proposals Complete $641 Million ($432 Million Basic Fund) and 275.2 Positions. Based on CDT and the Division of Finance (DOF), 40 funds proposals within the Governor’s 2023-24 funds are associated to IT mission proposals (Determine 2). These proposals request a complete of $641 million ($432 million Basic Fund) and 275.2 positions. A few of these proposals include 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 funds request on this submit, however we’ve lined the California Division of Corrections and Rehabilitation (CDCR) BIS Migration to S/4 HANA mission in a earlier publication The 2023-24 Funds: 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 mission 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 Data Administration System proposal). Nevertheless, we’ve 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 mission D&I outcomes.

Giant Enterprise Modernization Efforts Make Legislative Oversight Extra Difficult. Two IT mission proposals within the Governor’s 2023-24 funds—DHCS’s MES Modernization proposal and EDD’s EDDNext Modernization proposal—are enterprise modernization efforts that include a variety of IT initiatives in several phases of PAL, D&I, and M&O. For each of the efforts, the Legislature accredited quarterly reporting necessities and, for MES Modernization, CDT began portfolio-level unbiased mission oversight studies to trace IT efforts and initiatives which can be a part of the bigger modernization effort. In each circumstances, we discover these oversight instruments to be inadequate to observe advanced and expensive modernization efforts with important 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 will not be all the time evident, as particular person efforts and initiatives is perhaps targeted on modernization of technical features inside IT methods (akin to claims processing or drawing down federal funds) reasonably 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 hassle will not be all the time identified on the outset.

Initiatives More and more Use Mixed Agile and Conventional D&I Approaches With Combined Outcomes. We discover that extra IT mission administration workers are conversant in the agile method to mission 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 tasks that necessitate some components of the standard method to mission D&I. Combos of agile and conventional approaches to mission D&I, subsequently, have gotten extra widespread. For instance, for the Division of Social Providers’ Baby Welfare Providers – California Automated Response and Engagement System mission, the mission D&I method 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, reasonably than steady implementation of latest functionalities, permits employees to proceed to deal with their major workload. Nevertheless, 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 mission report (IPR) for accredited IT initiatives utilizing an agile or mixed agile and conventional method to permit, for instance, reprioritization of modules with no Particular Undertaking Report (SPR). (An SPR is a report required for initiatives that deviate from their baseline value, schedule, and scope by roughly 10 p.c.) Nevertheless, the IPR as launched might compromise legislative oversight if the mission 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 Modifications. 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 mission D&I outcomes. DOF might use quarterly mission 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 Strategy. We advocate the Legislature undertake SRL that directs CDT and DOF to work with legislative workers on choices to enhance oversight of enterprise modernization efforts and initiatives utilizing an agile method or mixed agile and conventional approaches to mission D&I. The report might contemplate, 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 contemplate 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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