Independent Project Oversight Report (IPOR) Rating

7100-222 EDDNext: Integrated Claims Management System / Integrated Data Management (ICMS/IDM)

The Employment Development Department (EDD) proposes to modernize the EDD’s benefit systems (Unemployment Insurance, Disability Insurance, and Paid Family Leave) by implementing a single, integrated benefit system that provides customers with a consistent, single portal into EDD’s services, and that lowers the cost to maintain via more agile and responsive solution for deployment of enhancements. The CDT and the EDDNext team have jointly determined that the EDDNext modernization BCP contains three non-delegated IT projects: - EDDNext Project (data platform, UI/DI legacy system replacement, OCR solution, et al.) aka as the “core EDDNext Project” - The Shared Portal Enhancement Project (considered to be a “non-core” EDDNext effort). - The Employer Portal Update Project (considered to be a “non-core” EDDNext effort). The EDDNext Project is required to go through all four stages of project approval lifecycle planning with the CDT. The Shared Customer Portal Enhancement is a delegated project. The Employer Portal Update is a candidate for delegation back to the EDD following receipt of corresponding S1BA’s and PDR submissions.

Project Details

IPOR Reporting Period	Overall IPOR Rating
09/01/2026 - 09/30/2026	Yellow

Independent Project Oversight Dashboard

Key Questions

Is the project on track to satisfy the customer's business objectives?Yes

Is the project on track to achieve the objectives in the approved timeframe?Uncertain

Is the project on track to achieve the objectives within the approved budget?Yes

Project Overall Health

Comments

Yellow

o Schedule & Development: Story readiness has improved; however, the required sprint velocity, integration planning, and remaining story approvals present risks to Release 1 delivery. o Requirements: Requirements burndown remains low at 8.5%, and end-to-end traceability requires further validation. o Deliverables: Overlapping deliverable reviews continue to present stakeholder capacity and quality risks. o Resources & Governance: Potential resource contention and insufficient decision-making criteria require continued attention. . o Cost: Cost burndown is 12% versus 28% schedule completion; SI Vendor invoice timing limits visibility into actual cost performance

Focus Area/Rating	Comments
Governance Yellow	o The updated Governance Management Plan (GMP) defined the decision-making process. o The GMP needs additional criteria applied to the decision-making process. o The IPO Manager identified decisions that need clarity and rationale.
Time Management Yellow	o The IPO recommends incorporating individual point-to-point integrations into the schedule to improve dependency tracking and schedule impact analysis. o The average readiness rate improved from 5.8 to 11.3 stories per week, while the Ready backlog increased from 10 to 117 stories, improving near-term sprint planning capacity throughput. o The IPO Manager estimates approximately 5,126 story points for Release 1. Completing the remaining estimated work would require an average of 459 story points per sprint, significantly exceeding demonstrated velocity. The IPO recommends a detailed velocity and schedule assessment. o The schedule performed satisfactorily against most DCMA quality metrics and passed the Critical Path Test.
Cost & Contract Management Yellow	o The increasing complexity of contractual deliverable reviews creates a risk that review capacity may become constrained, resulting in schedule-driven rather than quality-driven reviews; Risk #168 remains under monitoring. o As of September 30, 2026, the Project reported $70.7 million in expenditures (12%) against its $578.5 million approved budget, compared with 28% schedule completion as of August 28.
Scope Management Yellow	o The IPO Manager observed that the pace of development could impact the Release 1 Go-Live Date. The IPO Manager recommends the ICMS Project Team complete an analysis. o The IPO Manager recommended standardized end-to-end requirements traceability reporting.
Resources Yellow	o Potential resource contention between ICMS and DMS remains a risk pending portfolio-level validation of shared resource availability against the project’s updated schedules. o The IPO Manager recommends a Resource Analysis once the DMS Schedule is approved.
Quality Green	o No quality concerns to report for the month of September.
Risk And Issues Green	o IPO continues to actively identify, assess, and monitor project risks and issues through the weekly Risk and Issue Management meetings. o In September 2026, the IPO Manager will assess the Project’s risk and issue management practices for consistency with the approved Risk and Issue Management Plan and report any significant findings.
Transition Readiness Yellow	o Key Release 1 dependencies and technical readiness activities remain unresolved, potentially affecting integration and delivery. o The IPO Manager recommends completing remaining environments and establishing clear readiness milestones in the schedule.
Conditions For Approval Green	o The IPMS was submitted on June 5, 2026, approximately four weeks after the required May 8, 2026, deadline.
Corrective Action Blue	Comments about Corrective Action Plan Items N/A