Overview of Data Expertise Mission Proposals

The 2023-24 Funds

Introduction

This submit supplies an summary of the knowledge expertise (IT) initiatives within the Governor’s proposed 2023-24 price range. We first present related background data on the California Division of Expertise (CDT) and the phases of an IT challenge. We then determine every of the price range proposals to plan, develop, and implement IT initiatives. We offer our evaluation of matters widespread 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 price range request within the submit, however hyperlink to different IT project-related analyses in different publications organized by price range space.)

Background

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

Phases of an IT Mission. 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 Mission Approval Lifecycle (PAL)—the state’s IT challenge approval course of. Some proposed initiatives, corresponding to low value and/or low threat 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 current IT programs. As soon as permitted by PAL (known as permitted 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 beneath:

• Planning (PAL). The PAL course of divides state IT challenge approval into 4 levels: (1) enterprise evaluation, (2) alternate 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 supplies 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 all the scope of the challenge earlier than it’s carried out. Utilizing the agile strategy, in contrast, entities develop a number of the challenge 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 may develop challenge scope as modules, however mix the modules into a couple of discrete releases for implementation to cut back the frequency of person 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 maintenance and persevering with use of a system.

Related Modifications to IT Mission Procurement and Oversight. Two latest adjustments to state IT challenge 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 Common Companies to develop new procurement approaches that outlined an issue for bidders to resolve and requested them to show their capability to resolve it by demonstrations, proofs of idea, and prototypes. We typically 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 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 various concurrent and sometimes associated IT efforts and initiatives) to modernize their applications and/or providers. As particular person IT initiatives progress by totally different phases, CDT tries to offer oversight not solely of the person IT challenge but in addition of all the enterprise portfolio of IT efforts and initiatives. Key examples of this strategy are DHCS’ Medi-Cal Enterprise Techniques (MES) Modernization and EDD’s EDDNext modernization effort.

Governor’s 2023-24 Funds

Governor’s IT Mission Proposals Complete $641 Million ($432 Million Common Fund) and 275.2 Positions. In line with CDT and the Division of Finance (DOF), 40 price range proposals within the Governor’s 2023-24 price range are associated to IT challenge proposals (Determine 2). These proposals request a complete of $641 million ($432 million Common 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 Mission-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 challenge 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. Quite a lot of the IT challenge 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 mentioned 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). 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 challenge D&I outcomes.

Massive Enterprise Modernization Efforts Make Legislative Oversight Extra Difficult. Two IT challenge 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 include various IT initiatives 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 challenge oversight studies to trace IT efforts and initiatives which can be a part of the bigger modernization effort. In each instances, 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 throughout the portfolio, what efforts or initiatives are most crucial to the success of the modernization effort and/or pose essentially the most threat 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 is perhaps targeted on modernization of technical features inside IT programs (corresponding to claims processing or drawing down federal funds) slightly than sure applications and/or providers. Realizing how a lot a fancy, giant modernization effort will value and over what timeframe is also troublesome for the Legislature to supervise because the scope of the hassle will not be all the time recognized 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 workers are conversant in the agile strategy to challenge D&I. We additionally discover that extra initiatives acknowledge the realities each of the annual legislative price range course of and of state entities’ continued programmatic tasks that necessitate some parts of the standard strategy to challenge D&I. Combos of agile and conventional approaches to challenge D&I, due to this fact, have gotten extra widespread. For instance, for the Division of Social Companies’ Youngster Welfare Companies – California Automated Response and Engagement System challenge, the challenge D&I strategy modified to a mixture of agile and conventional approaches as a result of county eligibility employees wanted to restrict the quantity of person testing and coaching required. Discrete releases of recent functionalities, slightly than steady implementation of recent functionalities, permits employees to proceed to concentrate on their main 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 challenge report (IPR) for permitted IT initiatives utilizing an agile or mixed agile and conventional strategy to permit, for instance, reprioritization of modules with no Particular Mission 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 could 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 Modifications. We suggest 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 may use quarterly challenge planning expenditure studies for proposed IT initiatives 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 Initiatives Utilizing Agile Method. We suggest 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 strategy or mixed agile and conventional approaches to challenge D&I. The report may take into account, for instance, whether or not new standardized studies for these efforts and initiatives, each to CDT and the Legislature, are warranted. The report additionally may take into account whether or not adjustments in CDT’s PAL course of are wanted to persistently plan these efforts and initiatives. We additionally suggest the Legislature request this report no later than April 1, 2024 to tell the 2024-25 price range course of.