Independent Project Oversight Report (IPOR) Rating

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?Uncertain

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

Project Overall Health

Comments

Yellow

During the June 2026 assessment period, the project’s overall health is yellow, trending red. Phase 1 OL: Control Cashiering/Inventory Management (CC/IM) functionality will be incorporated into OL before VR Go-Live. The June 25, 2026, go-live was missed, and new production target dates are under discussion with leadership. Phase 2 VR: The VR phase of the project missed a major milestone in the replanned schedule and did not set a new go-live date in June. System Integration Testing (SIT) and Development activities overlapped the entire month, increasing risk. Phase 3 DL: The DMV continued working on procurement-related activities. The team did not release the solicitations in June, although March was the planned timeframe in Special Project Report (SPR) #2.

Focus Area/Rating	Comments
Governance Yellow	During the June 2026 assessment period, the project’s Governance Management health is yellow, based on observations and analysis of governance processes. • The Executive Steering Committee (ESC) did not set a new VR go-live date in June, as planned. • CDT recommends that the DxP Project Management Office (PMO) implement a communication process to summarize important meetings such as the Weekly Status Report (WSR). • CDT recommended that the DMV submit a draft of SPR #3 by July 20, 2026, to add Assembly Bill (AB) 1766 scope, cost, and schedule. • The executive decision related to training delivery strategy and scope was made in June.
Time Management Red	During the June 2026 assessment period, the project’s Time/Schedule Management health remains red based on observations and analysis of the Project Schedule Milestones and Deliverables. • Development work was planned to finish by June 22, 2026, but is tracking toward July 10, 2026. • The planned three-week overlap between development and SIT turned into at least six weeks. • SIT testing velocity is too slow to maintain the ready-for-cutover date of October 26, 2026, and the team is replanning the remaining work caused by the four-to-six-week slip. • The ready-for-cutover date has slipped into early December, 2026; the exact go-live date has not been determined.
Cost & Contract Management Green	During the June 2026 assessment period, the project’s Cost & Contract Management health remained green, based on observations and analysis of the project’s costs and contracts • The Budget Change Proposal (BCP) was approved for Fiscal Year 26/27. • The project is currently tracking within approved costs for SPR #2. • The new Independent Verification & Validation (IV&V) contract for the VR phase was awarded June 26, 2026; however, the new consultants are not available to onboard until July 20, 2026, leaving the team without independent technical oversight for several weeks. • The DMV requested that all DL phase procurements are awarded in August to meet the July 1, 2027, mandate for AB 1766. • A separate procurement will be released for IV&V services for the DL phase. The CDT is monitoring the status of awarding the new contract, as IV&V services are required for the project.
Scope Management Red	During the June 2026 assessment period, the project’s Scope Management health turned red, based on observations and analysis of the project’s scope and related processes. • OL is working on the Control Cashiering/Inventory Management (CC/IM) effort. The June 25, 2026, go-live date was not met. User Acceptance Testing (UAT) is in progress. • The Executive Governance Committee (EGC) approved no additional CRs in June. • The DMV submitted draft Statements of Work (SOWs) for the DL phase. AB 1766 will be added as a priority scope item and incorporated into SPR #3. • The CDT recommends that the Minimum Viable Product (MVP) Scope for Day 1 of the VR phase be formally confirmed during the July assessment period to resolve ongoing concerns from the Business Leadership and mitigate risk to final system acceptance. • The DMV submitted draft SOWs for DL ancillary workstreams, but not all of the Workstream 2 documents.
Resources Yellow	During the June 2026 assessment period, this focus area remained yellow but is trending red. • New consultant resources are on board, but velocity is lower than expected. • The project acknowledged a resource gap for the DL phase and is working to resolve it. • The project decided to update the organization chart monthly. • The new VR IV&V consultant contract was awarded, but it will take longer than planned to on board resources, creating risk to an objective technical assessment for July.
Quality Red	During the June 2026 assessment period, the project’s Quality Management health is red based on observations and analysis of Quality metrics and performance. • CDT recommended that the DMV use the ad hoc assessment task in the new IV&V contract to review the requirements and procurement documents for the DL phase since the separate contract for DL IV&V services will not be awarded until after procurements are already in progress. • SIT pass rate is lower than expected: 37% for Key Functions, 31% for Pre-Integration, and 65% for Comprehensive test cases. • Development overlapped with SIT for all four weeks of June.
Risk And Issues Green	During the June 2026 assessment period, the project’s Risk and Issue health remains green. • The risk and issue management process is effective and remains green for June. • An open issue related to testing velocity requires leadership attention. • CDT’s independent observations of the highest risks impacting the project are: o Development delays o Scope creep o Overlapping SIT with Development and UAT o Code quality issues o External dependencies, such as business partners o Technical cutover data challenges o Phase 3 DL requirements, schedule, resources, and cost.
Transition Readiness Red	During the June 2026 assessment period, the project’s Transition Readiness health is red based on observations and analysis of the activities performed and plans for VR cutover. • Test regression automation is reporting Red due to delays. • The ESC approved a modified approach to training delivery that only includes four instructor-led sessions, two self-paced trainings, and eighty user guides. • A conversion Mock 5 run was added to the work plan and additional validation testing was approved. • CDT recommends that the project communicate the realistic go-live schedule to business partners immediately.
Conditions For Approval Green	There are five conditions associated with SPR #2 approval. • Condition #1, #2, #3 and #4 were met. • Condition #5 is due by November 1, 2026.
Corrective Action Green	The project has no Corrective Action Plan Items.

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