Independent Project Oversight Report (IPOR) Rating

Green
- Satisfactory, no corrective action necessary.
Yellow
- Caution, risks/issues exist. There may be a need for corrective action in the near future.
Red
- Escalated for immediate corrective action. There is a significant risk to the health of the project.
Blue
- Not enough data is available to make a determination about the project health.
No Report Available - Indicates that a Report is not available for publishing for the reporting period.

5180-213 Facility Management System (FMS)

The California Department of Social Services proposes leveraging a new licensing system to meet the business needs of the other licensing programs, providing an integrated system that ensures full licensing functionality.

Project Details

Agency / State Entity	Health and Human Services / Social Services, Department of
Total Cost	$59,274,293
Last Approved Start Date	06/06/2026
Last Approved Finish Date	06/30/2027
Criticality Rating	Medium

IPOR Reporting Period	Overall IPOR Rating
08/01/2026 - 08/31/2026	Yellow

Independent Project Oversight Dashboard

Key Questions

Is the project on track to satisfy the customer's business objectives?No

Is the project on track to achieve the objectives in the approved timeframe?No

Is the project on track to achieve the objectives within the approved budget?No

Project Overall Health	Comments
Yellow	The project completed its first system production milestone with the completion of FMS Release 1 last August 17,2026. However, the project’s overall health remains in cautionary status pending development completion and testing of two more remaining releases which will most likely not be completed within the June 2027 PAL Stage 4 approved end date. Planned SPR will most likely be submitted as a result of the delay to address impact in fulfilling the remaining two planned releases. Fulfillment of other implementation activities have been completed which includes (1) completion of Go-Live readiness activities, (2) planned 8th formal Change Control Board meeting (3) SPR preparation activities and (4) Release 2 design and preparation activities. Six focus ratings in the area of governance, resources, time, quality and scope remain in cautionary status.

Project Overall Health

Comments

Yellow

The project completed its first system production milestone with the completion of FMS Release 1 last August 17,2026. However, the project’s overall health remains in cautionary status pending development completion and testing of two more remaining releases which will most likely not be completed within the June 2027 PAL Stage 4 approved end date. Planned SPR will most likely be submitted as a result of the delay to address impact in fulfilling the remaining two planned releases. Fulfillment of other implementation activities have been completed which includes (1) completion of Go-Live readiness activities, (2) planned 8th formal Change Control Board meeting (3) SPR preparation activities and (4) Release 2 design and preparation activities. Six focus ratings in the area of governance, resources, time, quality and scope remain in cautionary status.

Focus Area/Rating	Comments
Governance Yellow	The FMS team actively fulfilled all remaining Release 1 activities that led to the implementation of its first series of Go Live last August 17,2026. Executive Steering Committee support is evident based on series of key decisions and approvals leading to Release 1 implementation. Over-all governance remains in cautionary status pending submission of the planned October-November 2026 SPR to address delay and potential cost increase in fulfilling the remaining two major release for this project. Governance alignment will need to be reviewed with the last approved Stage 4 artifacts as a result of the delay to ensure alignment and threshold in preparation for the SPR submission. Key governance activities occurred: Change Control Board meeting, completion of all Go Live Readiness and Preparation activities. Major SI deliverable observed for this reporting period including completion of various change requests in support of Release 1. Heightened awareness is recommended for the on-going configuration to support remaining requirements and change requests.
Time Management Yellow	The re-planned Release 1 Go Live date of August 17,2026 has been completed for this reporting period as part of FMS milestone. This completion represents 1 out of 3 planned releases for FMS. Latest schedule shows 66% overall work time completion for this project. * Completed Requirements/Planned: 553/554 * Completed Sprints Vs Remaining: 13 out 13 sprints * Completed User Stories/Planned: 670/676 Rating remains in cautionary status due to the planned October-November 2026 SPR submission to address the completion of the remaining two releases which will not meet the baselined June 2027 completion date under the last approved Stage 4 PAL.
Cost & Contract Management Yellow	Rating remains in cautionary status pending submission of Special Project Report (SPR) due to potential cost increase as a result of Release 1 completion delay impacting remaining releases. Overall time delay is currently in assessment by FMS project to cover remaining releases which will trigger potential project cost increase. Supersede Stage 4 Approval Letter was issued for this project last 12/23/2025 based on meeting the Conditional Approval that was set from the prior 6/5/2025 Stage 4 Approval. Cost re-alignment resulted in an overall reduced total project cost of $347,928. FMS new total project cost baseline is now set at $59,27,293. Potential cost increase will most likely occur well above the 10% cost threshold based on latest FMS Steering presentation estimated between $7M-$10M. CDT will validate pending the new planned October/November 2026 SPR formal submission. Project cost usage is still within the approved cost baseline. Cost-to-date usage is 54% ($31.9M) 39% ($23M) expended from planning and execution activities. Significant increase in cost amount usage observed primarily due to SI vendor’s 1st major system delivery including maintenance & operation (M&O), approval of SI’s 6 work orders to support Release 1, 25% reimbursement of amount withheld for 15 prior completed SI’s deliverables, ancillary invoices and state staffing costs. Contract management is in place with the employment of key contract tracking mechanisms such as the Deliverable Expectation Document (DED) and the Deliverable Acceptance Document (DAD) for key contract services. 1 DAD, 1DED approved for IV&V including 1 major DAD for SI vendor’s system delivery under Release 1. In addition, 11 Change Requests (CRs) approved under the existing SI contract for unanticipated tasks have been completed and still within threshold: $464K approved vs $2.1M budget (21% cost usage) Overall external contract cost planned for this project is $32.4M with a reported 51% ($16.4M) actual contract cost usage to date. This significant increase is expected as part of SI vendor’s major delivery for FMS 1st system release.
Scope Management Yellow	Rating changed from corrective to cautionary based on completion of Release 1 requirements. Release 1 Requirements Cumulative Summary Progress: * Number of identified requirements: 552 * Done: 552 * Completion Rating: 100% Release 1 User Stories Cumulative Summary Progress: * Overall Planned User Stories: 670 * Overall Completed User Stories: 570 * Overall Resolved Bugs: 428 * Cancelled: 147 11 out of 23 Change Requests (CRs) have been approved for Work Order Authorization issuance and accepted. This brings the total of SI deliverables from 27 to 38. Major delivery of the actual 1st system release occurred for this reporting period and was formally accepted by product owner and sponsor.
Resources Yellow	Rating remains in cautionary status due to observed shortage in critical positions including contract legacy service gap and potential SI existing contract service limitation vs new requirements. • Shortage observed for State staffing covering First Tier, Core Project Team and SMEs with the submitted PAL artifacts to continue the stable progression of required staffing at the critical stage of implementation. Replacement via active recruitment and back-up identification in-progress. Vacancy rate assessed at 25% for this reporting period. • Other key external consulting and professional services progressing as scheduled but will need active resolution to address contract service gaps for legacy systems prior to full implementation. This includes review of all contract services based on revised implementation master schedule submission for impact identification. * Planned SPR submission will attempt to address potential gap in primary and contract services including staffing due to schedule delay and scope impact. * Recommendations: (1) Review of state resource balancing between post Release 1 Go Live and Release 2 design as this will most likely occur simultaneously using key resources. (2) Over-all resources will need to be revisited after submission of an updated master schedule to address completion of remaining two releases. (3) Review of resource-related risks and issues to provide pro-active support and mitigation unavailability – ex risk #47 translated form prioritization or descoping estimated count 400+ .
Quality Yellow	Improvement observed in Accessibility Testing for Release 1. Rating remains in cautionary status due to several quality observations that IV&V highlighted for caution in the area of design, configuration & development, performance and security testing. Interface implementation and other testing observations will be updated as Release 2 work is completed. Additional IV&V recommendations are provided in the area of realistic timelines, resource focus, and scope risk. Communication, configuration, interface implementation observations were also added including performance and security bugs outcomes in the software development collaboration tool, Azure Dev Ops (ADO).
Risk And Issues Green	No risk and issue meetings occurred for this reporting period pending re-planning efforts for a potential revised implementation timeline: Total Risks and Issues: 51 Total Open Risks & Issues: 26 Total Closed Risks & Issues: 25 Total New Risks & Issues: 5 Downgraded Risk/Issues: 1 Majority of open risks and issues are the in the area of integration, stakeholder review, contracts, resources and data management specific to migration and backporting. The FMS team has started replanning efforts for Release 2-3, which could potentially address the issues/risks indicated for this reporting period.
Transition Readiness Green	Go Live readiness preparation activities have concluded as project completed one out of three full implementation releases for this reporting period. OCM-BPR activities that supported the first production implementation have been completed including Post-Go Live user adoption and support.
Conditions For Approval Green	Update the Planning Costs section of the Financial Analysis Worksheet to reflect actual Full-Time Equivalent positions through FY 2024-25 by September 1, 2025, or earlier. Status: CLOSED Final FAW submitted approved by the CDT and DOF for this reporting period. Supersede Stage 4 Approval Letter issued on December 23,2025 resulting in reduced over-all total project cost by $347,000.
Corrective Action Green	No Corrective Action Plan identified.

Project Approval Documents