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
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?Yes

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

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

Project Overall Health

Comments

Yellow

o Schedule & Development: Story readiness remains a bottleneck that may reduce sprint throughput and impact Release 1 delivery. o Requirements: Traceability remains incomplete, requirements coverage is lagging development time, and total Release 1 story point scope remains unknown. o Deliverables: Increasing deliverable review complexity continues to present review-capacity and quality risks. o Resources & Governance: Resource contention and governance gaps require continued attention; assignment of a dedicated ICMS Project Manager addresses a prior concern. o Cost: Cost burndown is 12% versus 28% schedule completion; outstanding SI invoices limit assessment of actual cost performance.

Focus Area/Rating	Comments
Governance Yellow	o The decision-making process requires further definition of key decision process steps to support consistent and informed decisions o Observation of two decisions found that alternatives and potential impacts were presented; however, impacts were primarily qualitative and lacked sufficient quantification of cost, schedule, scope, and quality to support fully informed decision making. o The IPO Manager recommends including a short, concise title in the Decision Log so decisions can be easily identified and differentiated
Time Management Red	o Although recent design session process adjustments have accelerated user story approvals, it is yet to be seen if the approval momentum can be sustained. o Approved-to-Ready progression remains a bottleneck, risking underloaded sprints and reduced development throughput. o Lightly loaded sprints resulting from the story readiness backlog could reduce sprint velocity, potentially requiring additional sprints and delaying the Release go-live. o The story point burn down rate cannot be computed as story points have not been assigned to all user stories. o The schedule performed satisfactorily against most DCMA quality metrics and passed the Critical Path Test; however, four metrics remain outside acceptable thresholds and warrant continued management attention.
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 Cost burndown is 12% ($67.5M of $578.5M) compared with 28% schedule completion; however, outstanding SI implementation invoices are still outstanding.
Scope Management Yellow	o Full traceability from Objective through Test Result is needed to demonstrate that contractual obligations are being met. o The requirement burn down for the first three (3) sprints is 6.2%, which is lagging the 21.4% of planned development time consumed (3 of 14 sprints). o Total Release 1 story point scope remains unknown because story points have not been assigned or estimated for all 645 user stories, preventing validation that the planned development period has sufficient capacity to complete Release 1.
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 Project assigned a 100% dedicated ICMS Project Manager in August 2026, addressing IPO’s prior concern regarding competing portfolio responsibilities.
Quality Green	o The IPO Manager observed multiple dashboards reporting similar project information using inconsistent metrics and calculation methods, creating potential for conflicting or unreliable performance reporting. o The Project agreed and is working with oversight organizations to develop a standardized dashboard specification. o During the reporting period, the System Integrator (SI) Vendor demoed the dashboard they created, which appeared to meet the intended design specification and provide the desired project visibility.
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 Green	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