Project Connect. July 11, 2012

Transcription

1 Project Connect July 11, 2012

2 Introduction Meeting Minutes Approval Project Status Report IV&V Update by Ernst & Young Other Business Public Comments Review of Actions from Meeting Scheduling of Next Meeting August 8 Adjourn Project Connect 2

3 Project Update Budget and Timeline Current and Upcoming Activities Risks and Issues Key Project Dates Project Connect 3

4 Per agreed upon plan, Deloitte provided its Corrective Action Plan (CAP) on June 8, 2012 Upon review significant issues were noted The schedule was increased to 10 months (an October 2013 implementation) It did not sufficiently address the underlying issues with the ufacts Framework There was a significant increase in pricing for the 33 open Change Requests ($7.8M) Based upon those factors DEO rejected the CAP on June 13, 2012 Providing Deloitte 10 days to correct and resubmit Project Connect 4

5 After thoughtful consideration, and mindful of DEO s investment to date and risk associated with continuing the project as is, DEO issued Deloitte a letter of its intent to terminate the contract for cause on June 15, 2012 DEO did not get the deal it bargained for Original timeline will be significantly exceeded by 10 months ufacts Framework is not a viable, proven solution Deloitte has 30 days to address its failures and demonstrate the reasonable likelihood of a successful, timely project completion Project Connect 5

6 Over the last three weeks, significant, collaborative progress has been made to address DEO s concerns On June 22, 2012 the Design Deliverables (Functional, Database, and Data Conversion) have been approved and accepted Progress continues to be made in development as well as requirements validation for the Change Requests that are critical for Go Live Project Connect 6

7 Discussions have been held to address the key project issues Mitigating the risk associated with ufacts Addressing the additional cost of the extension Agreeing to a time and materials with a cap for the outstanding change requests DEO and Deloitte are currently in final discussions, anticipating that all issues will be addressed and resolutions codified as Amendment 7 to the contract Project Connect 7

8 Project Connect 8

9 Original Project Contingency & Management Reserves Budget $9,957,039 Supplemental Budget Requests (SBRs) for TOP and SIDES $1,082,350 Reemployment and Eligibility Assessment (REA) Grant - Workforce Integration (Allocated Portion) $150,123 Total Funds Available $11,189,512 Funding Previously Approved ($3,627,037) Additional cost of HW/SW for TOP (295,779) Faneuil Scope Changes (Workforce) ($31,158) 28 Additional Functional Change Requests - Amendment 7* ($4,100,000) Total Funds Allocated ($8,053,974) Contingency & Management Reserves Balance $3,135,538 Pending Change Requests: - Unemployment Appeals Commission - Additional Workforce Integration Effort - Disaster Recovery Hardware Session Legislation * Time & Materials not to exceed Project Connect 9

10 Total REA Funds Available $2,006,250 (For Workforce Integration) Allocated North Highland ($118,965) Allocated Operational Support Staff ($31,158) Total Funds Allocated $150,123 Unallocated REA Funds Balance $1,856,127 Planned Allocations: Workforce Integration Development (Deloitte) and potentially a Workforce Portal (TBD) Project Connect 10

11 Base Budget $52,841,655 Management Reserve Allocation $6,821,501 SBR $1,082,350 REA $150,123 Updated Budget $60,895,629 As discussed once Contingency & Management Reserve funds have been approved for an expenditure (from previous slide), these funds will be moved to the appropriate budget category for tracking. Project Connect 11

12 Project Funding - Cumulative by Quarter Budgeted: Forecast: Variance: $60,895,629 $59,066,026 $ 1,829,603 Millions FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY12 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY13 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY14 Q1 FY14 Q2 Budget Committed Forecast Project Connect 12

13 Overall Project Budget & Estimated Variance Original Budget Allocated Contingency & Management Reserves Supplemental Budget Requests REA Grant Updated Project Budget Estimate at Completion Project Variance Project Funding OPS 92,400 86, , ,987 17,863 Expenses 6,864, ,864,194 6,046, ,202 OCO (Hardware) 483, , ,224 7,016 Contracted Services Project Management & Support Project Management Office 2,377, ,377,200 1,715, ,930 Project & Operational Support 1,526, , ,158 2,116,952 2,053,963 62,988 Outside Legal 95, , ,448 (8,448) ITN Development 526, , ,700 13,950 Business Transition 1,456, , ,965 1,854,324 2,079,251 (224,927) Other Contracted Services 45, ,000 96,290 (51,290) Total Project Management & Support 6,026, , ,123 7,015,125 6,560, ,203 IV&V Services 2,005, ,005,798 2,005,798 0 Benefits Realization Strategy 255, , ,276 21,551 Organizational Change Management 679, , ,355 35,395 System Integrator (SI) Services 28,061,156 5,331,238 1,082, ,474,744 34,373, ,958 SI Hardware & Maintenance 2,543, , ,863,453 2,842,449 21,005 SI Software & Maintenance 5,706, , ,951,953 5,720, ,715 Project Reserves 122, , ,695 Project Funding Totals 52,841,655 6,821,501 1,082, ,123 60,895,629 59,066,026 1,829,603 Cotingency/Management Reserves 9,957,039 3,135, ,856,127 Remaining unallocated Total Project Funding 62,798,694 9,957,039 1,082,350 2,006,250 Project Connect 13

14 PROJECT Cumulative through June 2012 June 2012 July 2012 Budget Committed Variance Budget Committed Budget Forecast Project Funding OPS 130, ,382 20,978 17,765 15,745 17,765 21,595 Expenses 5,820,357 4,729,227 1,091,130 96,275 61,458 75,775 44,346 OCO (Hardware) 483, , , , Contracted Services 0 0 Project Management & Support 4,963,105 4,731, , , ,137 70,000 32,000 IV&V Services 1,462,473 1,399,861 62,612 46,456 46, , ,413 Benefits Realization Strategy 216, ,676 21,551 7,920 6,188 86,917 81,917 Organizational Change Management 552, ,520 84,730 38,700 52,920 42,880 21,496 System Integrator (SI) Services 12,075,391 3,311,701 8,763, , ,805 46,456 46,456 SI Hardware & Maintenance 2,833,453 1,240,214 1,593, , ,456 41,456 SI Software & Maintenance 5,951,953 5,433, , , ,000 5,000 Project Reserves 89, ,889 3, Project Funding Totals 34,578,699 21,733,201 12,845, , , , ,678 Project Connect 14

15 Design Deliverables were signed-off and accepted Treasury Offset Program Design was signedoff and accepted Continuing to refine Workforce integration Scope and Requirements Definition for Connect Organizational Design and Organizational Change Management continue on track Project Connect 15

16 Total Functional CRs Received 164 Withdrawn (73) Deferred (1) Total CRs In Process 90 Amendment 7 28 Approved DEO Development 16 Pending Analysis - Critical 8 Pending Analysis Non-Critical 38 Project Connect 16

17 Risk #35 Organizational Design Activities Beginning to align recommended Organization Design Five other open risks being actively monitored Three deal with compliance with statutes and legislative changes Project Connect 17

18 Issue #6 Missed Design Phase Gate Monitored via the CAP Issue #7 Engagement with Geographic Solutions Contract will need to be modified to address integration requirements Short-term (FLUID) and long-term (Connect) approaches identified and approval process proceeding Issue #8 Corrective Action Plan (CAP) Contract calls for this to be tracked as an Issue Project Connect 18

19 July 20 August 8 September 12 September 28 CAP Resolution ESC Meeting ESC Meeting Interim Development Phase Gate Project Connect 19

20 Project Connect 20

21 Introduction Meeting Minutes Approval Project Status Report IV&V Update By Ernst & Young Other Business Public Comments Review of Actions from Meeting Scheduling of Next Meeting August 8 Adjourn Project Connect 21

22 Unemployment Compensation Project Independent Verification and Validation Monthly Assessment Report Summary 09 July 2012

23 Topics for discussion General IV&V overview Overall risk state and trending Key indicators Overall project performance Projected milestone slippage Upcoming IV&V activities Supporting information Summary of changes IV&V ratings summary Open deficiencies Project milestones Open technology facets Page 23

24 General IV&V overview Overall IV&V risk state: Amber The UC Project Team continues to work on addressing the deficiencies identified by the IV&V Team. A revised integrated master schedule (IMS) is being used to manage the project. The control account structure previously used has been replaced by a detailed schedule. The new IMS has been baselined and includes a new project timeline. Based on the current schedule performance index (SPI), the Develop Phase Gate is projected to be completed on time. All subsequent phase gates are projected to be completed on time. Delays in the project will require contract modifications and/or additional funding for DEO, PMO and IV&V personnel to continue to support the project. No new deficiencies identified since the last report. Page 24

25 Overall risk state and trending Program Risk state of UC Project As of 09 July 2012 Governance Risk state with trending Program Resource management Cost management P2 P1 Performance management Time management P4 Change management P5 P4 Functionality T1 Technical architecture P3 Operations support Risk adjusted financials T2 P6 Non-functional requirements P5 Risk management P9 Business objectives and value alignment Quality management P8 B2 Business process P7 Organization design B3 Communication P3 T3 P9 P6 P8 P7 P2 P1 B3 B2 T1 B1 B6 T5 B5 T4 B4 B9 T4 High-level system architecture T3 B1 Benefits tracking B6 T8 T7 B7 B8 Functional requirements T5 Legacy integration Cost, benefit and risk B5 Reporting and value monitoring T7 Requirements mapping T6 B4 Investment governance and approval B9 Technology T8 Stabilization T9 B7 Compliance and regulatory B8 Business Technology T2 T6 T9 Risk state with trending Business Indicates that the area being assessed has critical issues that will result in significant risk to the project most likely resulting in either the inability to achieve the outcomes, inability to meet the projected schedule, or a significant cost over-run. Requires immediate action. Indicates that the area being assessed has issues that need to be resolved; inefficiencies exist. Current process/method can be used with refinement. Indicates that the area being assessed did not have significant issues to report. Continued monitoring should be performed. Indicates that the area being assessed has incomplete information available for a conclusive finding or is not applicable. Page 25

26 Key indicators Indicator Value Comment Is the project approach sound? Yes Is the project on time? Yes Based on the current SPI, the project is on time. Is the project on budget? No Delays in the project will require contract modifications and/or additional funding for DEO, PMO and IV&V personnel to continue to support the project. Is scope being managed so there is no scope creep? Yes The work being completed as part of the UC project is within the scope of the project as defined for the UC modernization project. What are the project s future risks? N/A The UC Project Team is actively working to address the deficiencies identified by the IV&V Team. Are the project s risks increasing or decreasing? Are there new or emerging technological solutions that will affect the project s technology assumptions? Decreasing No The UC Project Team is actively working to address the deficiencies identified by the IV&V Team. New and emerging technologies were considered in the Feasibility Study. None have an adverse effect on the project s technological assumptions. Page 26

27 Overall project performance UC project performance 1.30 CPI Behind schedule and underspent Ahead of schedule and underspent SPI = 1.04 CPI = 1.07 SPI Behind schedule and overspent 0.70 Ahead of schedule and overspent Page 27

28 Projected milestone slippage UC projected milestone slippage Implementation 0 UAT 0 Develop 0 Jun 2012 Design 0 Define 0 Planning Number of calendar days Page 28

29 Upcoming IV&V activities Participate in UC meetings IV&V review meetings with the UC Project Team Executive Steering Committee meetings Review integrated master schedule and associated project performance reports Deliverable review schedule is as follows: Deliverable Planned finish Actual finish Comment UC3-06A, Project Management Documents 24 August September 2011 Complete UC3-06B, Requirements Validation 19 August August 2011 Complete UC3-06C, Design Documents UC3-06D, Development UC3-06E, Testing UC3-06F, Data Conversion UC3-06G, Training UC3-06H, Implementation Schedule being revised Schedule being revised Schedule being revised Schedule being revised Schedule being revised Schedule being revised Page 29

30 Summary of changes Supporting information Item Deficiencies addressed New deficiencies Risk ratings Maturity ratings Interviews conducted Artifacts received Description D12 The current control account structure is insufficient for determining accurate project performance. No new deficiencies identified since the last report P3 Resource management changed from Green (no issues) to Amber (issues and inefficiencies). P4 Time management changed from Red (critical issued) to Amber (issues and inefficiencies). P5 Performance management changed from Red (critical issued) to Amber (issues and inefficiencies). P4 Time management changed from Level 2 (repeatable) to Level 4 (managed). P5 Performance management changed from Level 1 (initial) to Level 3 (defined). No interviews conducted since the last report. Artifacts received include corrective action plan (CAP) materials, deliverables, resource management, schedule information, status reports, and other items. Page 30

31 IV&V ratings summary Supporting information 30 IV&V cube facet ratings and open deficiencies per month Number Critical Issues Inefficiencies No Issues Not Evaluated Open Deficiencies Page 31

32 Open deficiencies Supporting information No. Areas Deficiency Implications Recommendations D11 P3: Resource management P4: Time management P5: Performance management The IMS and associated subsidiary schedules are insufficient to properly manage and control the project. Inability to effectively manage schedule and cost. Unable to establish true visibility and determine forecasting capability to schedule and cost performance in achieving project expectations. Inability to ascertain and analytically support a point of view for current and forecasted project performance. Misalignment of or incorrect project health perceptions. Lack of transparency on the project status and value for the business, stakeholders, and sponsors, leading to poor decision making and potentially providing a false sense of confidence. Inaccurate and unreliable data leading to unwanted surprises. Modify the work breakdown structure (WBS) for the development schedule and the IMS so they are identical. Revise the development schedule to address the items identified in the schedule analysis. Create appropriate linkages between the IMS and the development schedule so the development schedule becomes part of the IMS. Use a single IMS which includes all subsidiary schedules as the basis for managing the project and reporting progress. Use the IMS to generate the headcount plan for the project. Page 32

33 UC project milestones WBS Title Completion date Supporting information Original Scheduled Planned Projected Actual Planning Interim Gate 04/29/ /29/ /29/ /29/ /29/ Planning Phase Gate 06/17/ /17/ /17/ /17/ /17/ Define Interim Gate 1 06/24/ /24/ /29/ /29/ /29/ Define Interim Gate 2 07/15/ /15/ /15/ /15/ /19/ Define Phase Gate 08/05/ /05/ /05/ /05/ /05/2011 Design Interim Gate 1 10/28/ /28/2011 Design Interim Gate 2 12/02/ /02/2011 Design Interim Gate 3 12/02/ /02/ Design Phase Gate 12/16/ /29/ /29/ Develop Interim Gate 1 05/11/ /18/ /18/ /18/ Develop Interim Gate 2 07/13/ /04/ /04/ /04/ Develop Phase Gate 08/03/ /18/ /18/ /18/ UAT Phase Gate 11/16/ /25/ /25/ /25/ Implementation Phase Gate 12/14/ /15/ /15/ /15/2013 Late Page 33

34 Open technology facets Supporting information Facet Expectations Project deliverable Planned completion T2 : Operations support An organizational structure and support strategy to manage the new implementation is in place. Tools exist for tracking performance of application at object levels. A maintenance strategy is developed to manage modification, migration, and retirement of products according to the release strategy. Ongoing knowledge transfer, as systems are developed. A detailed training strategy exists for training the different categories of business and technical users of the system for them to be able to adopt to the system and use it more effectively. Training documents are in place. Training strategy is agreed upon, communicated and being executed. Trainers are qualified via agreed upon selection process PMP Human Resource Management and Staffing Plan 3.14 PMP Knowledge Management Plan 5 Validated Requirements Document 24 Operations Documentation 06/07/11 06/07/11 06/24/11 07/15/11 08/05/11 11/30/12 26 Training Plan 07/27/12 27 Training (execution) Various 28 Production System Implementation Plan 08/03/12 Training materials are standard across all modules and functions and are capturing an adequate level of detail. 30 System Operations and Maintenance Plan 12/14/12 Page 34

35 Open technology facets (continued) Supporting information Facet Expectations Project deliverable Planned completion T6 : Legacy integration A decommissioning document must exist for legacy systems with an associated communication plan to users of affected systems. Query only databases must exist for accessing queries based on historical data. Date range for the historical data is agreed upon with business users. Data extracted from legacy systems is validated by business users. A data erasure plan exists for scrubbing data from legacy systems that will be decommissioned. 4 Data Conversion Plan 07/08/11 9 Data Conversion Design 12/09/11 19 Test Plan (Data Conversion) Test Results (Data Conversion) 03/02/12 09/28/12 DEO IT plans TBD T9 : Stabilization An extended team has been defined across the organization and is working as an extension of the project team. Tasks have been assigned and key metrics are in place to monitor progress. 30 System Maintenance and Operations Plan KPIs 12/14/12 Long-term sustainability plans are in place to keep support and maintenance of the implementation viable. Long-term vendor contracts are implemented to maintain the system in the absence of an in-house capability to maintain the system. A vendor management body is established to maintain the relationship with vendors to facilitate smooth delivery of outsourced services. 12-month Warranty Period 12-months Operations Support and Maintenance Agreement Executed contracts and license agreements Page 35

36 Introduction Meeting Minutes Approval Project Status Report IV&V Update by Ernst & Young Other Business Public Comments Review of Actions from Meeting Scheduling of Next Meeting June 13 Adjourn Project Connect 36

37 FY11/12 Spend Plan Graph FY11/12 Spend Plan Details Project Connect 37

38 FY Project Funding - Cumulative by Month 25 Millions Budgeted: $ 23,216,480 Forecast: 10,967,670 Variance: $ 12,248, Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 FY Budget Allocation Committed Forecast Project Connect 38

39 OPS FY Budget Allocation and Spend by Month - Q1 & Q2 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 Budget Committed Budget Committed Budget Committed Budget Committed Budget Committed Budget Committed Funding 3,800 3,644 3,800 3,449 3,800 2,723 3,800 3,140 3,800 3,484 3,800 3,811 Expenses Funding 775, ,509 3,465,952 3,120,445 49,775 45,665 56,495 47,036 49,775 42,969 71,303 55,024 OCO Funding Contracted Services Project Management & Support 226, , , , , , , , , , , ,224 IV&V Services 46,456 46,456 77,762 76,012 46,456 48,206 46,456 46,456 46,456 46,456 46,456 46,456 Benefits Realization Strategy 9,320 5,515 9, ,320 1,815 9, , ,320 0 Organizational Change Management 25,500 18,270 25,500 26,550 25,500 29,040 38,700 27,990 38,700 20,550 38,700 14,550 System Integrator (SI) Services 0 0 1,630,482 1,630, ,397, , ,805 4,082, ,805 SI Hardware & Maintenance 243, , SI Software & Maintenance ,986 0 Project Reserves 5, , , , , ,084 0 Total Contracted Services 556, ,344 1,972,697 1,978, , ,320 1,712, , , ,753 4,447, ,034 Total Budget Allocation & Spend 1,336,099 1,169,497 5,442,449 5,102, , ,707 1,773, , , ,205 4,522, ,869 Project Connect 39

40 OPS FY Budget Allocation and Spend by Month - Q3 & Q4 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 Budget Committed Budget Committed Budget Committed Budget Committed Budget Committed Budget Committed Funding 3,800 3,735 15,770 16,215 18,430 14,955 17,765 15,294 18,430 16,537 17,765 15,745 Expenses Funding 74,353 33,179 71,303 30, ,003 35,953 79,275 33,510 96,275 35,435 96,275 61,458 OCO Funding ,000 10, ,147 23,555 40, ,629 Contracted Services Project Management & Support 224, , , , , , , , , , , ,137 IV&V Services 46,456 46,456 46,456 46,456 77,762 46,456 77,762 46,456 46,456 46,456 46,456 46,456 Benefits Realization Strategy 7, ,920 6,205 7,920 27,225 7,920 27,820 7,920 24,090 7,920 6,188 Organizational Change Management 40,150 20,250 38,700 25,860 38,700 52,590 38,700 47,085 38,700 49,215 38,700 52,920 System Integrator (SI) Services 122, , , , , , , ,805 3,529, , , ,805 SI Hardware & Maintenance ,282, , ,032 0 SI Software & Maintenance , ,747 0 Project Reserves 3, , , , , ,285 0 Total Contracted Services 445, , , ,811 1,893, , , ,723 3,915, , , ,505 Total Budget Allocation & Spend 523, , , ,443 2,469, , , ,526 4,030, , , ,337 Project Connect 40

41 Deloitte Amendment 5 TOP $ 1,634,009 TOP Hardware & Software 239,389 Deloitte Amendment 6 SIDES $709,579 Change Request Support - NH $279,345 Organizational Redesign Consultant $86,450 UC IT Staff Augmentation (Sogeti) $56,000 NH Business Transition Services/Workforce Integration $118,965 TOP, UAC, Project Support (Sogeti) $503,300 Funding Previously Approved $3,627,037 Project Connect 41