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4.8 Contract ManagementIntent: Ensure that all goods/services/products are incompliance with the terms and conditions in the contract andmeet expectations.Outcome: Increased likelihood of project success with propercontract management.42

4.8 Contract Management43

Essential Practices4.8 Contract ManagementContract management activities beginwith assigning a contract manager andonboarding and properly training thecontract management staff early.The State Contract manager isresponsible for administering thecontract and monitoring contractorrequirements, disputes, KeyPerformance Indicators (KPIs), andadherence.The contract management role is criticalfor protecting the State’s IT investment.The contract manager should be activelyinvolved and have knowledgeablebackup resources.44

Review Criteria: 4.8 Contract Management Has a Contract Manager been identified andtrained on responsibilities? Has a date been scheduled for the post-award andkickoff meeting? Has a plan been created and put in place to collectand assess contractor and project performance ona regular basis?45

4.9 Organizational ReadinessIntent: Confirm the readiness of the Agency/state entity to begindesign, development, implementation and project activities inongoing support of the solution.Outcome: Confirm the organization is ready to execute, support,and adopt, the project into their organization.46

4.9 Organizational Readiness47

Essential Practices4.9 Organizational ReadinessDepartment of Technology Tools.Organizational Change Management andBusiness Process ReengineeringFrameworks will be developed andreleased in Summer 2017.Project Org Chart. Ensure alignment withFinancial Analysis Worksheets.Impact. Project team members shouldhave an understanding of how thisproject will impact the entireorganization.48

Review Criteria: 4.9 OrganizationalReadiness Does the test management plan align with theenterprise architecture and information securityneeds of the organization? Is there planning in place to train and shareinformation amongst project team members? Have dedicated resources been identified forbusiness process improvement or reengineeringactivities?49

4.10 Project ReadinessIntent: Identify Agency/state entity’s methodology andreadiness to begin project design, development andimplementation activities.Outcome: Confirm that the project has the necessary processes,methodologies, and staffing in place.50

4.10 Project Readiness51

Essential Practices4.10 Project ReadinessDocument Strategy. IdentifyAgency/state entity’s previousexperience with system development.Document how staff have been trainedor will receive training.Validate Resources. Take steps toensure staff will be available now thatthe project is ready to begin.Service Request. If CDT projectoversight services are required, a CDTService Request must be submitted.52

Review Criteria: 4.10 Project Readiness Does the resource strategy align with the solutiondevelopment methodology? Has the Evaluation and Selection Report beenapproved? If applicable, partner with your Office ofTechnology Services (OTech) representative forplanning purposes.53

4.11 Requirements BaselineIntent: Identify any solution requirement changes as a result ofthe solicitation process and vendor responses.Outcome: Evaluate and understand the impact, properly logrequirement changes, and verify that the solution requirementsstill align with business objectives, as a result of solutionrequirements changes.54

4.11 Requirements Baseline55

Essential Practices4.11 Requirements BaselineReasonableness. Calculate thepercentage of requirement change.Baselining. The requirementsvalidated during Stage 4 are therequirements baseline for the project.56

Review Criteria: 4.11 Requirements Baseline Do the final requirements align with the businessobjectives identified in Stage 1? Have any of the mid-level or detailed solutionrequirements been modified since approval ofStage 3 Solution Development? Can we validate the requirements traceabilityartifacts have been updated?57

4.12 ScheduleIntent: Update the project schedule by identifying high leveldates and project tasks and document the rationale for whychanges have occurred.Outcome: The final baseline schedule for the project.58

4.12 Schedule59

Essential Practices4.12 ScheduleBest Practices for SchedulingValidate your roles and responsibilitiesto make sure scheduled tasks areassigned with appropriately skilledresources.Be complete. The vendor tasks andresources identified in their proposedschedule should be aligned with thehigh level master schedule.Communicate changes and true upinformation. Partner with your PALmanager about which projectdocuments and FAWs to update.60

Review Criteria: 4.12 Schedule Does the high level schedule align with the vendorschedule? Is the high level schedule realistic? Does the project resources align to the schedule?61

4.13 Cost BaselineIntent: Revaluate the cost estimate using vendor bid responses,state resourcing costs and selected vendor costs and documentthe rationale for why changes have occurred.Outcome: The final baseline cost for the project.62

4.13 Cost Baseline63

PAL Funding Strategy64

Financial Analysis Worksheet Process65

Total Project CostIn Stage 4 (after bids are evaluated)My total project costs are equal toor less than my Stage 2 estimates.Action?No Action Necessary.AdminActionProject approvedbased on finalproject cost.ResultAwardcontract.My total project costs are within20% or 5 million (whichever isless) of Stage 2 estimates.Revise PAL deliverables to reflectproject cost changes (may includeupdated budget action for increasedfunding to specific budget years,redirected funds, etc.)Project approvedbased on finalproject cost.Awardcontract.My total project costs exceed 20%or 5 million (whichever is less) ofStage 2 estimates.1. Determine cause of variance andviability of project.2. Negotiate with vendor to reduceproject costs to within 20% or 5million of Stage 2 estimates.3. Revise PAL deliverables to reflectnegotiation results (changes toscope).Project is notapproved and ison hold pendingadditional analysison the project’sviability.Proposal onhold.66

Essential Practices4.13 Cost BaselineValidate the FAWs Ensure they reflectthe planned project activities and anyservices or contracts associated withthe project. Ensure there is analignment between the FAWs and anyBCP action.Total Project Cost. Differencesbetween estimated and actual costsshould include a justification for thechange.67

Review Criteria: 4.13 Cost Baseline What were the cost estimates in Stage 2? What are the baseline final project costs? For differences between your cost estimates andthe baseline final project costs– Provide the rationale– Ensure the BCP is reflective of the final proposal BCP(s) must align to the FAWs68

4.14 Project Management PlanningIntent: Ensure the project management planning is sufficient toeffectively manage the project.Outcome: CDT can gain confidence that the project has thoughtthrough how to effectively manage the project and reduce risk.69

4.14 Project Management Planning70

Essential Practices4.14 Project Management PlanningReminders: Align plans with a project managementframework (e.g. PMBOK, CA-PMF) Make sure the project plans areappropriate for the scope of the project Completion of planning may be acondition of Stage approval.Finish Line. The scalability of yourproject is a component in determiningwhich project plans are required to becompleted prior to project approval.71

Review Criteria: 4.14 Project ManagementPlanning Have the project management plans and artifactsbeen identified? Do the “Not Applicable” plans include a reason whyit is not needed? Do the plans marked “No” include a status?72

4.15 Risk RegisterIntent: All project risks and risk response strategies have beenidentified and are documented.Outcome: Increased likelihood of project success with properrisk management.73

4.15 Risk Register74

Essential Practices4.15 Risk RegisterEnsure your risk register is kept up todate. Use proper project managementpractices when managing your riskprocess.Accountability is key. Assign a singleperson to be accountable for the riskmanagement process.75

Review Criteria: 4.15 Risk Register Is the risk register attached and current? Does it include all project risks continuing intoproject execution?76

Solicitation and PALContractSignedStage 3S3 ApprovalLetterSolicitation isreleased withapproval of Stage 3Stage 4S4 ApprovalLetterAgency reportssolicitation outcomes inStage 4 ProjectReadiness & Approval77

Next Steps Transition to Oversight Per State Administrative Manual Section (SAM) 4819.2,“Project Oversight” is: “An independent review andanalysis to determine if the project is on track to becompleted within the estimated schedule and cost, andwill provide the functionality required by thesponsoring business entity. Project oversight identifiesand quantifies any issues and risks affecting theseproject components.” See SIMM 45 for more information78

IT Project OversightThrough the Office of Statewide Project Delivery(OSPD), the CDT is responsible for the approval andoversight of IT projects, including:-Project Approval Authority-Project Oversight Authority-Analysis and Advice-Oversight Protocol79

80In Flight Project RequirementsDocumentTimeframeProject Status Report (PSR)5th business day of monthIndependent Project OversightReport (IPOR)10th business day of monthSpecial Project Report (SPR)3rd Monday in July (Fall)2nd Monday in January (Spring)Anytime – no budget action

81Closing Project RequirementsDocumentTimeframePost ImplementationEvaluation Report (PIER)Within 18 months ofproject close out

Additional Next Steps Manage the established Project baseline– Completion of Project Status Reports– Special Project Reports (SPR)– Budget requests (post approval, if applicable)– Post Implementation Evaluation Report (PIER)82

What We Covered Today This training covered– PAL’s role in IT Project Delivery– Role of “Critical Partners” and “Core Team” inPAL– Stage 4 Preliminary Assessment– Stage 4 Project Readiness and Approval– Transition to Oversight83

Stage 4 Q&AQuestions?Ask The Exper ts84

Q&AThank You!PA L Tr a i n i n g Te a mContact Us @CIOPALTraining@state.ca.gov85

Appendix 1To o l s & R e s o u r c e s86

Tools & Resources 1Tool NameProject Approval Lifecycleforms and instructions(SIMM 19)IT Project Reporting ProcessFlow (SIMM 10)ReferencesForm SectionNote or LinksAllhttps://cdt.ca.gov/policy/simm-19/AllGate 4 Collaborative ReviewGuidelines (SIMM 19D.6)AllCDT Technology loads/2017/03/SIMM 10 Document Description and Process ttps://cdt.ca.gov/tech-alerts/87

Tools & Resources 2Tool NameReferencesForm SectionNote or LinksStage 4 Project Readinessand Approval Instructions –SIMM 4/D.1-Preparation-Instructions.pdfStage 4 mm-19/Understanding AgileAllCA-PMF Sample e/Link to California Project Management FrameworkTemplates page (including DED & DAD Templates)https://cdt.ca.gov/policy/simm-19/88

Tools & Resources 3Tool NameReferencesForm SectionNote or /07/F.1-PreparationInstructions.pdfSIMM 19F Financial AnalysisWorksheets F.2 - croll down to bottom of page until you locate theresource.State Contracting ManualVolume s/SCM3.aspxSIMM 19F Financial AnalysisWorksheets F.1 –Preparation Instructions89

Tools & Resources 4Tool NameReferencesForm SectionNote or LinksEvaluation and SelectionReport r 4.B5.9Government Code 11545and codes displayText.xhtml?lawCode GOV&division 3.&title 2.&part 1.&chapter 5.6.&article SIMM 17 CA-PMF Templates4.14http://capmf.cio.ca.gov/90

Appendix 2Roles & Responsibilities91

Program Program team members should be Subject MatterExperts (SMEs), in the program areas that have thebusiness need.– This person should know the resources and functions ofthe program, including program policy and processes. Resources the Program person should bring tothe team include:– Procedural manuals– Relevant policy interpretations– A working knowledge of the business process flows92

Administration & Procurement Administration is a broad area that captures a widerange of functions. Common areas that may betapped include:––––AccountingFacilitiesContract ManagementHuman Resources The Administration team members would bringknowledge and resources such as:– Organizational charts– Duty statements– Contract management knowledge93

Administration & Procurement Procurement is a specialized area that capturesfunctions and duties related to:––––Conducting market researchDetermining procurement approachDeveloping solicitationsOverseeing overall procurement activities The procurement team members would bringknowledge and resources such as:––––Market research assistanceProcurement approach optionsCosting modelsEvaluation methodology94

Project Management The Project Management team member isresponsible for:– Documenting the analysis and planning activities that theproject team is doing, including mapping out a schedule– Creating methods and processes to manage the proposaldevelopment and the project CDT expects that a Project Manager be a core teammember from S2AA onward, where organizationalcapacity exists.95

IT System Support IT System Support is the custodian of the existing datasystems.– IT is on the Core Team and at the table, but the Programarea drives the effort. IT System Support team members are responsible for:Serving as SMEs for the technical solutionBringing documentation of the existing systemServing as the liaison with the Statewide Data CenterAssisting in estimating IT related project costs fordevelopment and infrastructure– Maintaining the new solution––––96

Information Security Information Security has both a business andtechnical focus. Information Security– Oversees and validates the security and privacy handlingof information by the state entity.– Ensures security controls are suitable for the informationclassification.97

Enterprise Architecture Enterprise Architecture (EA) focuses on thebusiness and ways technology may be used tomeet business needs. The EA team member is expected to bringknowledge of:–––––The businessBusiness requirementsState entity EA practice and policiesStatewide EA Practice and ProgramAppropriate governance and standards98

Budget Office The Budget Office team member serves as lead inthe development of the Financial AnalysisWorksheets (FAWs) included in PAL Stage 2. The Budget Office team member will bringknowledge of:– State budget processes– Budget timelines– Cost estimation methodologies99

4.8 Contract Management . Contract management activities . begin with assigning a contract manager and onboarding and properly training the contract management staff early. The State Contract manager is responsible . for administering the contract and monitoring contractor requi