Key Questions

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

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

Red

During the September 2025 assessment period, the project’s overall health remains red based on observations and analysis of the project’s governance, time management, cost/contract, scope, resources, quality, and risk focus areas. All areas are red except for Risks/Issues. Phase 1 OL: the team continued the CC/IM design work to incorporate OL changes needed as a result of new CC/IM functionality. Phase 2 VR: there were escalated contractual disputes with the prime contractor, four Corrective Action Plan (CAP) requests and four Cure Notices. The contractor responded to the CAP requests, but not with corrective action plans. The Schedule focus area is Red due to paused E2E UAT, lack of dependencies, and no realistic schedule. Cutover remains a concern. Phase 3 DL: DMV submitted SPR #2 on April 18, 2025, to address DL scope, schedule, cost and methodology changes. The CDT responded with comments in August and DMV submitted a revision on September 19, 2025.

Focus Area/Rating	Comments
Governance Red	During the September 2025 assessment period, the project’s Governance Management health remains red, based on observations and analysis of the project’s governance processes. • At the end of September, there were fifty-two escalation-related letters between the DMV and the prime contractor. • DMV issued four requests for Corrective Action Plans (CAPs), which the prime contractor has not provided. • The DMV provided a revision to SPR #2 on 9/19/25. • CDT recommends that DMV make VR-related adjustments to SPR #2 ASAP.
Time Management Red	During the September 2025 assessment period, the project’s Time/Schedule Management health remained red based on observations and analysis of the Project Schedule Milestones and Deliverables. • DMV rejected the prime contractor E2E SIT results, and paused the start of E2E UAT. • With E2E UAT paused, there is uncertainty around the Go-Live date. • Fourteen DMV-owned workstreams have incomplete development, and eight have not finished design. Two of four non-SI contractor-owned workstreams have incomplete design. However, progress is being made. • The CC/IM team reports that the 11/17/25 Go-Live date is not achievable (CC/IM contractor Weekly Status 9/4/25). • There is no agreement about when most DMV-owned workstreams will be system tested. • For Phase 3-DL, DMV submitted the SPR #2, which requested to slip the overall project schedule thirty-nine (39) months from the planned finish date of 6/30/2026.
Cost & Contract Management Red	During the September 2025 assessment period, the project’s Cost & Contract Management health remained red, based on observations and analysis of the project’s costs and contracts. • Escalated contract negotiations may affect project cost. • All detailed CR estimates have not been provided by the prime contractor, which adds to uncertainty. • The revised draft of SPR #2 requested an increase to total project costs of 76%. An updated Financial Analysis Worksheet (FAW) was also submitted.
Scope Management Red	During the September 2025 assessment period, the project’s Scope Management health is red, based on observations and analysis of the project’s scope and related processes. • UAT testing continues to turn up gaps beyond the approved design, which relates back to the contractual dispute of whether or not that scope should be considered a defect or a change request. (Project Risks/Issues: 29780, 37760.) • Some DMV Scope Workstreams are pending scope resolutions which are not reflected in the schedule (Weekly Status Report 9/19/25). • Per DMV, over two hundred disputes related to CR vs defect classification are open (ESC open meeting 8/8/25). • CC/IM Scope and scope for IA: Lien Sales over 4K continue to be refined (Weekly Status Report 9/19/25). • Several CR’s are with the prime contractor for review and bottom-up estimations.
Resources Red	During the September 2025 assessment period, the project’s Resources health remained red. • The SI contractor rolled off some development resources. • Multiple workstreams have noted resources as blockers. • One of the AAMVA mod phases (PDPS) has requested the schedule slip about a year, to August of 2026, due to a resource constraint.
Quality Red	During the September 2025 assessment period, the project’s Quality Management health is red based on observations and analysis of Quality metrics and performance. CDT observes that quality is being monitored and metrics reported. • The prime contractor reported E2E SIT completed, meeting all exit criteria including no Severity 1 or 2 defects and a 98% pass rate. DMV did not agree all exit criteria were met and rejected the results. • As of the Weekly Status Report of 9/19/25, for the prime contractor’s scope, there were 34 open Sev 1 and Sev 2 defects in development and 30 in retesting. • DMV continued to defer the start of E2E UAT. • Two CAP requests were for Quality: one for code quality and one for the quality of training materials. • DMV retesting of Iteration 2-4 continued in September with the number of new defects trending down.
Risk And Issues Yellow	During the September 2025 assessment period, the project’s Risk and Issue health is yellow based on observations and analysis of the project’s risks, issues, and associated processes. • There remain a large number of open issues escalated to leadership. • CDT sees the biggest risks at this time as contractual disagreements, DMV-owned scope development delays, incorporating late CRs, code quality issues, external dependencies such as business partners, technical cutover data challenges, and the Phase 3 DL funding, schedule, and cost
Transition Readiness Red	During the September 2025 assessment period, the project’s Transition Readiness health is red based on observations and analysis of the Transition activities performed and plans for VR cutover. • DMV made a No-Go decision regarding the prime contractor’s Early Access Training (EAT), originally scheduled for 8/4/25. • Training activities remain TBD until new training dates are established by DMV. • Joint rollback planning is underway. • The second conversion mock run, which is testing out the cutover approach, completed in September.
Conditions For Approval Green	The CDT Project Approvals and Oversight (PAO) team observed that the DXP Team previously completed all three approval conditions for DXP Phase 1 – OL. With the SPR #1 approval, two new Conditions for Approval of DXP Phase 2 - VR, CC/IM were required by CDT. Both conditions have been met.
Corrective Action Green	PAO has issued no corrective actions for the project.

• Special Project Report 1 (pdf)
• Stage 4 Project Readiness and Approval Phase 2 (pdf)
• Stage 4 Project Readiness and Approval (pdf)
• Stage 3 Solution Analysis (pdf)
• Stage 3 Solution Analysis (pdf)
• Stage 3 Solution Analysis (pdf)
• Stage 3 Part B Solution Development (pdf)
• Stage 3 Part A Solution Development (pdf)
• Stage 2 Alternative Analysis (pdf)
• Stage 1 Business Analysis (pdf)