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
07/01/2026 - 07/31/2026	Yellow

Independent Project Oversight Dashboard

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
Yellow	The Project Overall Health remains in cautionary status pending development completion and testing of all remaining requirements to address not meeting the planned June 2026 Release 1 Go Live impacting remaining releases. To date, the project is at 93% requirements completion rate. New Go-Live date of August 2026 has been re-planned to address remaining requirements. Potential SPR will most likely be submitted as a result of the delay to address impact in fulfilling remaining two planned releases. Fulfillment of other implementation activities is progressing as scheduled which includes (1) planned Go-Live readiness activities, (2) planned 7th formal Change Control Board meeting (3) completion of Sprint 13th development activities and (4) schedule review. Five focus ratings in the area of governance, resources, time and quality remains in cautionary status, while scope remains in corrective status.

Project Overall Health

Comments

Yellow

The Project Overall Health remains in cautionary status pending development completion and testing of all remaining requirements to address not meeting the planned June 2026 Release 1 Go Live impacting remaining releases. To date, the project is at 93% requirements completion rate. New Go-Live date of August 2026 has been re-planned to address remaining requirements. Potential SPR will most likely be submitted as a result of the delay to address impact in fulfilling remaining two planned releases. Fulfillment of other implementation activities is progressing as scheduled which includes (1) planned Go-Live readiness activities, (2) planned 7th formal Change Control Board meeting (3) completion of Sprint 13th development activities and (4) schedule review. Five focus ratings in the area of governance, resources, time and quality remains in cautionary status, while scope remains in corrective status.

Focus Area/Rating	Comments
Governance Yellow	Governance remains in cautionary status due to observed delay in the planned Release 1 Go Live that will have a high likelihood of impacting remaining releases. The needed requirements essential to complete Release 1 were not met, thus, extending Release 1 Go-Live from June 2026 to August 2026. This 3-month delay will most likely increase pending completion of various change requests identified for Release 1 and associated testing activities. The FMS team actively fulfilling remaining Release 1 activites which could potentially address the issues/risks indicated for this reporting period. Go-Live readiness activities are also in progress for planning which will occur by next reporting period. 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 and potential submission of an SPR. Key governance activities occurred: Change Control Board meeting, completion of 4 new additional sprints added for Planning and Development including Integration and Data Migration. No major SI deliverable observed for this reporting period. Heightened awareness is recommended for the on-going configuration to support remaining requirements and change requests. Improvement observed in completion of requirements that are planned for Release 1 but remains to be sustained by ensuring critical dependencies are addressed and supported.
Time Management Yellow	Overall 62% work completion after review and submission of an updated master schedule. Revised Release 1 implementation to production changed from June to August 2026. Rating changed from corrective to cautionary status based on likelihood of meeting the new 8/17/2026 Release 1 target due to improved requirements completion: * Completed Requirements/Planned: 521/562 * Completed Sprints Vs Remaining: 13 out 13 sprints * Completed User Stories/Planned: 565/670 (97%) Release 1’s 85% work completion is based on the updated master schedule to reflect new Release 1 target and other milestones. Please note that these information are a point in time and will change by next reporting period. Oversight will continue to validate the information gathered from the automated tracking system. Release 2-3 is still pending for review and submission.
Cost & Contract Management Yellow	Rating remains in yellow pending submission of Special Project Report (SPR) due to potential cost increase as a result of Release 1 delay impacting remaining releases. New Release 1 target will be August 2026, 3-month delay from the original June 2026 target date. 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 39% ($23M) expended from planning and execution activities. Slight increase in cost amount usage observed as the project enters 2nd year software licensing cost with additional users. Nevertheless, cost % usage remains minimal with just 3% increase from last report and remains align with all cumulative vs cost estimated data. 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 for IV&V and new OCM contract identified for this reporting period. Eleven Change Requests (CRs) approved under the existing SI contract for unanticipated tasks but still within the threshold: $495K approved vs $1.6M budget (23% cost usage) Overall external contract cost planned for this project is $32.4M with a reported 25% ($8.2M) actual contract cost usage to date. This will most likely increase either by next reporting or the following pending August 2026 Release 1 Go Live as part of SI vendor’s major delivery.
Scope Management Red	Rating remains corrective status due to key deliverables rescheduling and multiple change requests to meet FMS scope resulting in potential 6-month overall schedule increase triggering SPR. Completion rate to of 93% for DEL 13-R1 (1st Production Release) was not enough to meet the original target of June 1, 2026. New target of August 17, 2026 has been set. Close monitoring is needed based on other key dependencies vs remaining requirements and status clarity: Release 1 Requirements Cumulative Summary Progress: * Number of identified requirements: 562 * Done: 521 * Completion Rating: 93% Release 1 User Stories Cumulative Summary Progress: * Overall Planned User Stories: 670 * Overall Completed User Stories: 565 * Remaining User Stories: 9 * Overall Identified Bugs: 611 * Overall Resolved Bugs: 462 * Remaining Bugs: 17 11 out of 23 Change Requests (CRs) have been approved for Work Order Authorization issuance. This brings the total of SI deliverables from 27 to 38. Two SI deliverables for planning updates have been observed for this reporting period. Major delivery of actual 1st system release will most likely occur by next reporting period pending (1) Go/No-Go activities and (2) formal system acceptance.
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. • 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 planned Release 1 and 2 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 observed Release 1 delay and impact to remaining 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	Rating remains in cautionary status due to several quality observations that IV&V highlighted for caution in the area of design, configuration & development, interface implementation and testing. IV&V also identified 7 high-priority items for close monitoring to ensure FMS successful implementation: 1. Backporting 2. Design Process 3. Data Conversion and Validation 4. UAT 5. Feature Testing with Converted Data 6. Change Requests 7. Requirements Traceability Additional IV&V recommendation provided in the area of realistic timelines, resource focus on Release 1, scope risk, SI vendor proactive process to present pre-vetted options to the project. Communication, configuration, interface implementation observations were also added including testing observations for automated test traceability 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: 25 Total Closed Risks & Issues: 20 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 1-3, which could potentially address the issues/risks indicated for this reporting period.
Transition Readiness Green	Progressing as scheduled. Progressing as scheduled. Go Live readiness preparation activities have been added in this area as the project will move to first out of three full implementation releases by next reporting period. All other OCM deliverables completed as scheduled, including contract completion for Agile service.
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