Report 2022-114 Recommendation 12 Responses

Report 2022-114: California Department of Technology: Weaknesses in Strategic Planning, Information Security, and Project Oversight Limit the State's Management of Information Technology (Release Date: April 2023)

Recommendation #12 To: Technology, California Department of

To improve the effectiveness of the PAL process at ensuring the success of projects, CDT should take the following actions:
Revise the PAL process to promote the use of modern approaches, such as modular or agile, when developing new systems. Further, CDT should maintain awareness of new development approaches and update its approval process to encourage their use, whenever feasible.

Annual Follow-Up Agency Response From April 2025

On February 21, 2025, CDT released a new planning process called the Project Delivery Lifecycle. The Project Delivery Lifecycle prioritizes an iterative, value-driven approach to GenAI project planning, leveraging Proofs of Concept (POCs) and/or Minimum Viable Products (MVPs) and iterative phasing to reduce risks and confirm business value before scaling into production. Currently the effort is in its soft launch period and will scale up to replace the current PAL process.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

CDT provided us with documentation describing its process for approving IT projects utilizing Generative Artificial Intelligence. Full implementation is pending CDT's formal update of its project approval process to promote modern development approaches, such as modular or agile, when developing new systems.

1-Year Agency Response

The California Department of Technology (CDT) Office of Statewide Project Development (OSPD) continues to make progress on the Project Services Modernization (PSM) effort as reflected in the chart previously provided to the CSA in January 2024 response. In addition, this improvement effort continues to progress as expected with no challenges towards implementation of policy and procedure updates this year.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

OSPD continues to evaluate changes to the Project Approval Lifecycle (PAL). Some changes have been implemented in the last six months. Other changes intended to further improve and streamline the planning and oversight processes are underway. For example, Financial Analysis Worksheets (FAW) were updated in May 2023 to allow for tracking operational, M&O costs within the project lifecycle. Another FAW project effort also kicked off to modernize the FAW from using manually populated spreadsheets to an improved digital solution enabling better cost planning and tracking for modern development methods.

OSPD has also initiated the Project Services Modernization effort and created a roadmap for improvements to the planning, procurement, and project oversight processes.

OSPD is also engaged in another pilot effort with departments to enhance project change and reporting mechanisms to allow for modern development methods using an Iterative Project Report (IPR) similar in nature to the Special Project Report (SPR) but designed to enable adaptive project development methods (agile, iterative, incremental, etc.).

Finally, Departments are now required to identify their implementation approach in the planning documentation submitted to OSPD and check points have been added to the project approval and oversight processes.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

In the next year, CDT/OSPD will have updated PAL policies, procedures, and processes to identify opportunities for the greater use of modular or agile development approaches. OSPD will enhance its project-approach monitoring including performance trends and project outcomes. Annually, OSPD will assess new modern approaches and partner with PDAC and ITEC to determine if the state should adopt.

CDT's Office of Statewide Project Delivery (OSPD) initiated a review and identified changes to the project approval lifecycle (PAL) and will also review policy for possible changes. OSPD will also determine funding/resource availability during this time period. CDT, as appropriate, will establish processes to require state entities to include their implementation approach in their planning alternatives. CDT will add the necessary checkpoints in its portfolio and project approval and oversight processes over the next few months.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2022-114

Agency responses received are posted verbatim.