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
06/01/2026 - 06/30/2026	Green

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

Green

o The ICMS Project appears to be following the EDD Portfolio Governance Management Plan and reviewed the June 2026 project decisions; there are no significant project risks identified based on the decisions reviewed. o The Project Team delivered the baselined project schedule in June 2026. The IPO Manager made recommendations, and all were resolved. o The Project Team implemented a standardized Deliverable Approval Process to improve review consistency, and no significant cost risks were identified as project expenditures. o Requirements management continues to mature as forward traceability to ADO user stories is finalized. o The ICMS Project established Risk #162 to monitor potential resource contention with the DMS Project. The IPO Manager will continue monitoring resource availability as the DMS schedule is finalized. o The IPO Manager reviewed Risk #162 and observed that delays and schedule extensions in other EDDNext workstreams, particularly DMS, may significantly impact ICMS resource availability and schedule assumptions, potentially affecting future project milestones.

Focus Area/Rating	Comments
Governance Green	o Reviewed the Change Control Board (CCB) governance structure and recommended evaluating CCB voting membership to ensure appropriate enterprise stakeholder representation in change approval decisions. The Project Team agreed with the recommendation. o Reviewed June 2026 project decisions and determined they primarily established governance and design direction. No significant project risks were identified based on the decisions reviewed.
Time Management Yellow	o The Project Team delivered the baselined project schedule in June 2026. The IPO Manager completed a detailed review and provided 17 recommendations, all of which were accepted and resolved by early July 2026. o The project schedule passed the DCMA Critical Path assessment. Minor schedule integrity deficiencies were identified, none of which currently present a material project risk. The IPO Manager will continue monitoring the "No Work or Cost" metric. o Agile Delivery: Sprint 1 workload increased from 37 to 68 Story Points during execution, and no User Stories were completed by the end of the reporting period. The IPO Manager identified potential risks related to story acceptance, sprint velocity, and productivity impacts resulting from the June development environment disruption and will continue monitoring these areas.
Cost & Contract Management Yellow	o The Project Team implemented a standardized Deliverable Approval Process, mitigating previously identified review inconsistencies. o The high volume of contractual deliverables due during the first six months of implementation presents a continued risk to review capacity and deliverable quality. Risk #168 was established to monitor this area. o The project has expended approximately 11% of the approved $578.5 million IT budget. No significant cost risks were identified during the reporting period
Scope Management Green	o Requirements Traceability: Forward traceability from contractual requirements to ADO user stories is still being finalized. The IPO Manager will validate the effectiveness and completeness of the ADO Requirements Traceability Matrix (RTM) approach during the next reporting period. o The IPO Manager identified opportunities to strengthen fit-gap documentation, requirements readiness criteria, RTM maintenance, and quality validation within the Agile Requirements Management Plan.
Resources Yellow	o The ICMS Project logged Risk #162 to monitor the potential risk of resource contention between the ICMS and DMS projects due to ongoing DMS schedule updates and evolving resource commitments. Resource availability assumptions cannot be fully validated until the DMS schedule is finalized. o The IPO Manager will assess the ICMS Project for potential resource contention with the DMS Project and report any observations in the next reporting period.
Quality Green	o Business stakeholder validation of user story test cases occurs after the System Integrator's internal review, increasing the risk that requirements gaps or defects may not be identified until after sprint execution.
Risk And Issues Green	o The IPO Manager observed that the ICMS Project Team is actively managing project risks and issues through regular reviews, ongoing monitoring, and timely documentation to support effective project oversight and decision-making.
Transition Readiness Green	o The IPO Manager has no significant transition-related observations during the reporting period, as the ICMS Project Team is currently focused on design and solution development activities. Transition readiness will be assessed as the project advances toward implementation.
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