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

Green

The overall project health rating is green for the May 2025 reporting period. • During this period, the project continued to onboard Solution Integrator (SI) staff and work on planning activities in preparation for the execution phase. • The CDT issued a superseded Stage 4 approval letter on May 15, 2025, to reflect revisions to the project end date and align costs with the May Budget Revision. The project is operating under the following revised approved baselines: - Start Date- 04/10/2025 - End Date- 09/24/2031 - Planning Costs (one-time): $91,576,896 - Project Costs (one-time): $938,197,030 - Future Operations IT Staff & OE&E (Continuing): $210,924,931 - Total Project Costs: $1,240,698,856

Focus Area/Rating	Comments
Governance Green	• Project leadership, executives, workstream teams, and stakeholders remain engaged in the project activities and decisions. • The project follows a regular cadence for Executive Steering Committee (ESC) meetings, during which scope, cost, schedule, risks, and issues are reviewed. The most recent ESC meeting was held on May 22, 2025, and the following key topics were discussed: -- Risk# 3 Implementation of other Human Capital Management (HCM) solutions- the team discussed the risks and issues associated with new HCM efforts initiated by external state departments and impacts to project scope and timelines. -- Risk# 8- Continued Budget Support -- Risk# 18850- Writ filing from unsuccessful bidders- The principals meeting to address the filed Writ was held on May 9, 2025. IPO Managers were not in attendance at this meeting. -- Governance Management Plan Updates- IPO Managers met with the team to discuss the proposed revisions to authority levels and provided additional feedback for the plan in April 2025. The plan is pending several updates, estimated to be completed in July 2025. • The project held several team-building events during this assessment period. IPO Managers have observed that these initiatives are contributing to developing the team spirit and promoting collaboration. • The project maintains a bi-monthly cadence for financial oversight reporting to the Legislative Analyst’s Office (LAO) and the Department of Finance (DOF). -- The most recent meeting with LAO was held on May 27, 2025. -- The most recent meeting with DOF was held on May 22, 2025.
Time Management Green	• The project continued to conduct working sessions to update the Integrated Master Schedule (IMS) Deliverable (DLV) 1.2, estimated to be completed in August 2025. Weekly IMS update meetings are scheduled for the Project leadership, with IPO also participating. • Several deliverables are currently in progress, but none were due during this reporting period. • The Independent Verification and Validation (IV&V) team submitted the May 2025 Monthly Activity Report (MAR) on June 4, 2025, with two new findings related to Integration with external HCM solutions and Interface Documentation. The IV&V team will be working with the project to discuss and define these further and if required log it as a risk/issue. The observations shared in the MAR are consistent with the IPO's evaluation of the overall project health. • The SI submitted the May 2025 status report on June 9, 2025, with no identified risks or issues. The status provided by the SI is consistent with the project’s reported status.
Cost & Contract Management Green	• Actual project costs reported for this reporting period are $6.07M of the total one-time project costs of $938M. The project costs are within the approved budget for this reporting period. • The project reported actual planning costs of $79.3M or 87% of the total approved costs of $91.5M. • The project’s Spring Budget Change Proposal (BCP) is awaiting Governor’s approval in the FY 2025-26 budget. • The project submitted revised Financial Analysis Worksheets (FAWs) in May 2025 to reflect changes to the project end date and align with the project’s May budget decision. The changes resulted in a nine (9) percent increase in total project costs compared to the 1/17/2025 approved costs with a majority of the variance being attributed to Future Operations IT Staff & OE&E Costs. The CDT approved the FAW revisions and issued a superseded Stage 4 letter on May 15, 2025. • The project has eight (8) active contracts. The costs for the contracts are within the budgeted amounts. • As agreed upon with DOF and IPO Managers, the project will be reporting state staff hours and costs one month in arrears.
Scope Management Green	• No change in scope was observed for this reporting period. • The Project leadership continues to work on mitigation plans for the risk related to new HCM systems to be implemented by Agencies/Departments. The Organization Change Management (OCM) team is drafting a communication strategy for Agencies/Departments that have existing HCM systems or are considering new implementations. In accordance with the current scope, the CSPS solution will not include support for inbound interfaces beyond timekeeping • The CalHR team continues to collaborate with the Office of Administrative Law (OAL) to prepare for the upcoming staff payroll changes. During this reporting period, the team was involved in the following activities: -- The previously submitted rulemaking package was withdrawn, and a revised package was submitted to enact and amend 51 regulations. The revised package is currently in its 45-day public comment period, which is expected to end on June 10, 2025, and coincides with the public hearing date. -- Ongoing discussions with unions continue, focusing on general CSPS updates, the transition to biweekly pay, and its potential impact on union dues and deductions.
Resources Green	• The IPO Managers have observed that the project has an effective process for onboarding SI and consultant resources. • The project continued to make progress during the May 2025 assessment period, with the onboarding of several of the SI resources. However, as of June 1, 2025, one of five SI key staff (Finance/Accounting Specialist) remain vacant. The IPO Managers will continue to monitor the progress of onboarding the SI key staff resources and escalate any concerns to the project leadership as appropriate. • The project reported that six (6.0) of the 80.0 SCO-authorized positions, eight (8.0) of the 25.0 CalHR-authorized positions, and four (4.0) of the 41.0 contractors remain vacant, resulting in a 12% variance from the approved staffing levels.
Quality Green	• The project has completed development of the Holistic Enterprise Registry Management System (HERMES) to be released to production in June 2025. This tool will be utilized to create a repository of CSPS interfaces.
Risk And Issues Green	• The project is actively managing, monitoring, and tracking the risks and issues. • The project follows a bi-weekly cadence to review risks and issues, engaging IPO, IV&V, project team members, and other stakeholders. During these meetings, the team discusses the status of existing risks, assesses current risk levels, and identifies new risks. The risk timeframes are categorized as either short-term, less than three months or long-term with three or more months. • Below are the top risks in each category being tracked by the project. (Refer to Risks & Issues focus area for further details) Short-term risks: -- Risk# 8- Continued budget support, -- Risk# 18850- Writ filing under PCC 6611. Long-term risks: -- Risk# 3- Implementation of other new Human Capital Management (HCM) systems by Agencies/Departments, -- Risk# 18822- 2026 Bargaining impacts, -- Risk# 36- External systems requiring interfaces with CSPS. • The project does not have any open issues for this reporting period.
Transition Readiness Green	• The OCM team was involved in the following activities during this reporting period: - Department Agency Readiness Team (DART) Engagements - The Agency Change Experts (ACEs) and DART liaisons have completed reviews and finalized the materials for CSPS Awareness Campaign toolkit. - Redesigning the CSPS web pages- content creation for the redesigned CSPS site is complete, and it is estimated to launch in June 2025.
Conditions For Approval Green	The project has the following conditions of approval as per the superseded Stage 4 Approval Letter issued on May 15, 2025. The project is working on meeting these conditions by the specified due date. 1) Within 90 days of this letter, the SCO shall submit to the CDT a detailed, fully resource-loaded CSPS Integrated Master Schedule (IMS), which includes both State and System Integrator (SI) activities, deliverables, milestones, and tasks 2) Within 90 days of this letter, the CSPS Project Management Team shall review, and the SCO shall approve and submit updated Project Management Plans to the CDT. 3) Following the start of project implementation, the SCO shall submit to the CDT the Independent Verification & Validation (IV&V) Monthly Status Report. -- The project is currently meeting this condition of approval. 4) No later than 60 days prior to the initiation of testing activities by the SI, the SCO shall submit the approved CSPS Project Test Management Plan to the CDT. 5) In accordance with the State Administrative Manual (SAM) Section 4946 and the State Information Management Manual Section 160, the project shall submit a Transition to Maintenance and Operations Plan, including the plan for any transition of services from the SI vendor to the State, to the CDT for review and approval six months before the approved project end date.
Corrective Action Green	N/A

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