Project Connect January 11, 2012
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 February 8 Adjourn Project Connect 2
Budget and Timeline Current and Upcoming Activities Risks and Issues Key Project Dates Project Connect 3
Project Connect 4
1.20 Schedule and Cost Performance Indices 1.15 1.10 1.05 1.00 0.95 0.90 0.85 0.80 Project Connect 5
Project Funding - Cumulative by Quarter 60 50 40 Budgeted: Forecast: Variance: $52,841,655 $51,882,901 $ 958,754 Millions 30 20 10 0 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 6
Overall Project Budget & Estimated Variance Project Estimate at Project Budget Completion Variance Project Funding OPS 92,400 79,909 12,491 Expenses 6,864,193 6,286,473 577,720 OCO (Hardware) 483,239 465,420 17,819 Contracted Services Project Management & Support Project Management Office 2,377,200 2,194,200 183,000 Project & Operational Support 1,526,494 1,507,978 18,516 Outside Legal 95,000 102,849 (7,849) ITN Development 526,650 512,701 13,949 Business Transition 1,456,014 1,721,710 (265,696) Other Contracted Services 45,000 71,874 (26,874) Total Project Management & Support 6,026,358 6,111,312 (84,954) IV&V Services 2,005,798 2,005,798 0 Benefits Realization Strategy 255,828 238,044 17,784 Organizational Change Management 679,750 637,270 42,480 System Integrator (SI) Services 28,061,156 28,061,156 0 SI Hardware & Maintenance 2,543,608 2,502,126 41,482 SI Software & Maintenance 5,706,630 5,495,393 211,237 Project Reserves 122,695 0 122,695 Project Funding Totals 52,841,655 51,882,901 958,754 Project Connect 7
PROJECT Cumulative through December 2011 Dec 2011 Jan 2012 Budget Committed Variance Budget Committed Budget Forecast Project Funding OPS 38,400 26,299 12,101 3,800 3,811 3,800 3,735 Expenses 5,176,870 4,594,301 582,569 71,303 55,024 94,353 99,201 OCO (Hardware) 82,092 64,272 17,820 0 0 4,999 4,999 Contracted Services Project Management & Support 3,444,085 3,225,827 218,258 217,474 229,224 160,324 281,288 IV&V Services 1,121,127 1,121,127 0 46,456 46,456 46,456 46,456 Benefits Realization Strategy 168,708 103,587 65,121 9,320 0 7,920 15,810 Organizational Change Management 318,600 220,470 98,130 38,700 14,550 40,150 48,217 System Integrator (SI) Services 7,932,167 2,574,870 5,357,297 4,082,546 122,805 122,805 122,805 SI Hardware & Maintenance 1,261,219 1,219,737 41,482 0 0 0 0 SI Software & Maintenance 5,706,630 5,454,407 252,223 40,986 0 0 0 Project Reserves 69,950950 0 69,950950 3,084 0 3,315315 0 Project Funding Totals 25,319,848 18,604,897 6,714,951 4,513,669 471,870 484,122 622,511 Project Connect 8
DDI Budget Warranty Year Budget Total Project Source $ $ $ Other Personal Services (030000) OPS Tab $ 84,000 $ 8,400 $ 92,400 Expenses (040000) Expenses Tab $ 2,319,210 $ 410,385 $ 2,729,595 Operating Capital Outlay (060000) OCO Tab $ 483,240 $ - $ 483,240 G/A-Contracted Services (100778) Roll Up Sum $ 8,302,237 $ 784,658 $ 9,086,895 Project Team Funding Totals $ 11,188,687188 $ 1,203,443 $ 12,392,130 130 System Integrator DDI Services SI DDI Tab $ 22,822,509 $ - $ 22,822,509 Warranty Year Services SI Warranty Tab $ - $ 2,443,536 $ 2,443,536 Benefits Realization Performance SI KPI Tab $ - $ 2,795,111 $ 2,795,111 Hardware Procurement texpenses SI HW Exp Tab $ 122,835 $ - $ 122,835 Hardware Procurement SI HW Tab $ 2,381,494 $ - $ 2,381,494 Hardware Maintenance SI HW Mtce Tab $ 39,279 $ - $ 39,279 Software Procurement SI SW Tab $ 7,866,522 $ - $ 7,866,522 Software Maintenance SI SW Mtce Tab $ 1,978,239 $ - $ 1,978,239 System Integrator t Totals $ 35,210,878 $ 5,238,647 $ 40,449,525449 Project Team Funding Totals + SI $ 46,399,565 $ 6,442,090 $ 52,841,655 C&M Reserves Totals $ 8,668,621 $ 1,288,418 $ 9,957,039 Project Team Funding Totals + SI + C&M Reserves $ 55,068,186 $ 7,730,508730 $ 62,798,694 694 Project Connect 9
Original Project Contingency & Management Reserves Budget $9,957,038.95 Supplemental Budget Requests (SBRs) for TOP and SIDES $1,082,350.00 Total Funds Available $11,039,388.95 Treasury Offset Program (TOP) - Deloitte Amendment 5, plus H/W & S/W (1,873,397.46) State Information Data Exchange System (SIDES) - Deloitte Amendment 6 (709,579.30) 16 Additional Functional Change Requests - Deloitte Amendment 7 (630,009.44) Change Requests Support North Highland Change Order (279,180.00) Total Funds Committed ($3,492,166.20) Contingency & Management Reserves Balance $7,547,222.75 Other Potential Change Requests: - Interface to Workforce - Unemployment Appeals Commission - RTAA/ATAA (Trade Readjustment Act) - 20122 Session Law Changes Project Connect 10
The Design Iteration 1 Deliverable not approved as submitted Iteration 2, Iteration 3, and Data Model Deliverables were pushed out Design Phase Gate was missed Project impacts are being managed based upon the contract terms and conditions and project management plans Project Connect 11
Iteration 1 Design Artifacts preliminary review All Use Cases and Workflows reviewed by DEO Deloitte has incorporated all comments made by DEO for Workflows and the key components in each Use Case Remaining Use Case components interfaces, reports and correspondence will be provided as part of the final Deliverable Security, account history and audit logging will be addressed d as Global l artifacts Project Connect 12
Iteration 2 Joint Application Design (JAD) sessions resumed; review of draft artifacts underway Iteration 3 IVR Call Center component draft design artifacts submitted and reviewed Appeals JADs underway Unemployment Appeals Commission Requirements were approved Will begin JADs once Appeals JADs are complete Project Connect 13
Current plans call for all four Deliverables to be provided d by January 20 Departmental Review targeted for completion by February 10 This date is at risk but will be mitigated by prioritizing the review of key artifacts Project Connect 14
Iteration 1 Development activities underway (at Deloitte s risk) Beginning transition of UC-IT staff members to the project team in January along with filling the 3 new positions Project Connect 15
Organizational Change Management Intranet t site now online Change sponsor workshops completed January 10 Quarterly stakeholder survey conducted Contract Amendment 5 (TOP) and Amendment 6 (SIDES) are fully executed Development and Test Environments are now in Operations and Maintenance mode Held a DEO Program and UC IT Managers Meeting on January 4 to get them more directly involved in the Project activities Project Connect 16
Re-baselining the Integrated Master Schedule to reflect Design Phase work plan and effect on other work streams Complete Design Phase Kick-off Iteration 2 & 3 Development Continue to integrate the Program Areas and UC IT in the Project activities Project Connect 17
Total Functional CRs Received 119 Withdrawn 66 Currently Open 53 Preliminary/Initial Review 15 Approved for Impact Analysis 18 Decision Deferred 2 Approved 18 CR 110 IMS Changes in impact analysis Project Connect 18
CR # and Title Cost CR 3 SB 1736 EB, Work Registration, etc. $143,376.24 CR 15 Fraud Statement for Initial & Continued Claims $0 CR 19 Additional Reports Debit, Federal and Fiscal $53,935.11 CR 54 Overpayment Non-charge and Re-charge $112,768.42 CR 55 Calculate Statute of Limitations $117,506.60 60 CR 67 Additional IVR Requirements $162,737.00 CR 68 Duration of Benefits $49,703.48 CR 69 Calculate Benefits Estimate $36,637.10 CR 77 Display Tracked Incomplete Non-monetary Determinations $0 CR 83 Wage Determination, Choose Filing State $0 CR 84 Wage Determination, Remove UCX UCFE Wages $0 CR 88 IVR Retired Requirements ($248,000) CR 98 Work Search Pop Up Window $89,663.24 CR 105 SSA and HSMV Cross Match Audit Report $21,325.50 CR 112 Finance and Accounting FTP Reports $31,156.64 CR 116 STC Workflow $29,199.66 Project Connect 19
Risk #35 Organizational Design activities have not been kicked-off New Risk #36 Engagement with Workforce (Geographic Solutions) Five other open risks being actively monitored Three deal with compliance with statutes and legislative changes Project Connect 20
Issue #6 Missed Design Interim Gate Resolution approach Develop realistic schedule (both time and resources) Need to prioritize the review of the Design Artifacts so that Iteration 2 & 3 development can begin on time Project Connect 21
February 8 ESC Meeting February 10 Design Wrap-up March 9 Last day of Session March 14 ESC Meeting Project Connect 22
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 February 8 Adjourn Project Connect 23
Unemployment Compensation Project Independent d Verification and Validation Monthly Assessment Report Summary 06 January 2012
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 25
General IV&V overview Overall IV&V risk state: Green Based on the current schedule performance index (SPI), the Design Phase Gate is projected to be completed 27 days late. All subsequent phase gates are projected to be completed late. The UC Project Team is currently developing a revised integrated master schedule (IMS). Several artifacts and deliverables were provided for review. Comments have been provided to the UC Project Team for consideration. Page 26
Overall risk state and trending Program Risk state of UC Project As of 06 January 2012 Governance P1 Cost Time management management Risk state with trending Program Resource management P2 Performance management P4 Change management Functionality T1 Technical architecture T4 P3 Operations support High-level system architecture Risk adjusted financials T2 P6 Non-functional requirements P5 Risk management T3 P9 B1 Business objectives and value alignment Quality management P8 B2 Business process Benefits tracking P7 Organization design B3 Communication B6 P9 P6 P8 P3 P5 P7 P2 P4 T3 P1 B3 B2 T1 B1 B6 T5 B5 T4 B4 B9 T8 B8 T7 B7 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 Compliance and regulatory B7 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 27
Key indicators Indicator Value Comment Is the project approach sound? Yes Is the project on time? No Based on the current SPI, the Design Phase Gate is projected to be completed 27days late. All subsequent phase gates are projected to be completed late. Is the project on budget? Is scope being managed so there is no scope creep? What are the project s future risks? Are the project s risks increasing or decreasing? Yes Yes N/A Neither The work being completed as part of the UC project is within the scope of the project as defined d for the UC modernization project. Are there new or emerging No New and emerging technologies were considered in the Feasibility technological solutions that will affect Study. the project s technology None have an adverse effect on the project s technological assumptions? assumptions. Page 28
Overall project performance UC project performance 1.30 CPI Behind schedule and underspent Ahead of schedule and underspent 1.20 1.10 SPI 1.00 0.70 0.80 0.90 1.00 1.10 1.20 1.30 0.90 SPI = 0.90 CPI = 0.85 0.80 Behind schedule and overspent 070 0.70 Ahead of schedule and overspent Page 29
Projected milestone slippage UC projected milestone slippage 84 Implementation 79 UAT 63 Develop Dec 2011 27 Nov 2011 Design Oct 2011 Sep 2011 Aug 2011 0 Jul 2011 Define Planning 0 0 10 20 30 40 50 60 70 80 90 Number of calendar days Page 30
Upcoming IV&V activities Participate in UC meetings IV&V review meetings with the UC Project Team Executive e 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 2011 30 September 2011 Complete UC3-06B, Requirements Validation 19 August 2011 19 August 2011 Complete UC3-06C, Design Documents 30 December 2011 Schedule being revised UC3-06D, Development 17 August 2012 UC3-06E, Testing 20 April 2012 UC3-06F, Data Conversion 17 August 2012 UC3-06G, Training 14 December 2012 UC3-06H, Implementation 30 November 2012 Page 31
Summary of changes Supporting information Item Deficiencies addressed New deficiencies Risk ratings Maturity ratings Interviews conducted Artifacts received Description There were no open deficiencies to address from the last report. No new deficiencies since the last report. No risk rating changes since the last report. No maturity rating changes since the last report. No interviews conducted since the last report. Artifacts received include various deliverables, finance updates, performance management materials, and a draft project schedule. Page 32
IV&V ratings summary Supporting information 30 IV&V cube facet ratings and open deficiencies per month 25 5 5 4 4 3 3 20 22 21 22 23 24 24 Number 15 10 5 0 1 1 0 0 0 0 0 0 Red Amber Green Grey Open Deficiencies Page 33
Open deficiencies Supporting information No. Areas Deficiency Implications Recommendations None None None None There are no open IV&V deficiencies with the UC Project. Page 34
UC project milestones WBS Title Supporting information Completion date Original Scheduled Planned Projected Actual 1.2.1.2.1.2 Planning Interim Gate 04/29/2011 04/29/2011 04/29/2011 04/29/2011 04/29/2011 1.2.1.2.2.5 Planning Phase Gate 06/17/2011 06/17/2011 06/17/2011 06/17/2011 06/17/2011 1.2.2.1.5.2.4 Define Interim Gate 1 06/24/2011 06/24/2011 06/29/2011 06/29/2011 06/29/2011 1.2.2.1.5.2.8 Define Interim Gate 2 07/15/2011 07/15/2011 07/15/2011 07/15/2011 07/19/2011 1.2.2.2 Define Phase Gate 08/05/2011 08/05/2011 08/05/2011 08/05/2011 08/05/2011 1.2.2.4.2.4 Design Interim Gate 1 10/28/2011 10/28/2011 10/28/2011 Unknown 1.2.2.4.2.8 Design Interim Gate 2 12/02/2011 12/02/2011 12/02/2011 Unknown 1224212 1.2.2.4.2.12 Design Interim Gate 3 12/02/2011 12/02/2011 12/02/2011 Unknown 1.2.2.5 Design Phase Gate 12/16/2011 12/16/2011 12/16/2011 01/11/2012 1.2.2.7.7.2.1.2 Develop Interim Gate 1 05/11/2012 05/11/2012 05/11/2012 05/11/2012 1.2.2.7.7.2.1.4 Develop Interim Gate 2 07/13/2012 07/13/2012 07/13/2012 07/13/2012 1.2.2.8 Develop Phase Gate 08/03/2012 08/03/2012 08/03/2012 10/04/2012 1.2.2.11 UAT Phase Gate 11/16/2012 11/16/2012 11/16/2012 02/03/2013 1.2.2.13.7 Implementation Phase Gate 12/14/2012 12/14/2012 12/14/2012 03/07/2013 Late Page 35
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. d 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. Training materials are standard across all modules and functions and are capturing an adequate level of detail. 3.12 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 30 System Operations and Maintenance Plan 08/03/12 12/14/12 Page 36
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. 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. 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. 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 30 System Maintenance and Operations Plan KPIs 12-month Warranty Period 12-months Operations Support and Maintenance Agreement Executed contracts and license agreements 12/14/12 Page 37
Project Connect 38
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 February 8 Adjourn Project Connect 39
FY11/12 Spend Plan Graph FY11/12 Spend Plan Details Project Connect 40
25 FY 2011-2012 Project Funding - Cumulative by Month 20 15 Millions 10 5 0 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 41
FY 2011-2012 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 OPS 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 Contingency 760 0 760 0 760 0 760 0 760 0 760 0 Expenses Funding 775,815 651,509 3,465,952 3,120,445 49,775 45,665 56,495 47,036 49,775 42,969 71,303 55,024 Contingency 10,855 0 9,955 0 9,955 0 36,795 0 9,955 0 9,955 0 OCO Funding 0 0 0 0 0 0 0 0 0 0 0 0 Contingency 0 0 0 0 0 0 60,629 0 0 0 0 0 Contracted Services Project Management & Support 226,024 200,138 226,024 244,887 228,106 199,259 212,824 235,226 217,474 221,952 217,474 229,224 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 9,320 263 9,320 1,815 9,320 0 9,320 990 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 1,630,482 0 0 1,397,556 0 122,805 122,805 4,082,546 122,805 SI Hardware & Maintenance 243,965 243,965 0 0 0 0 0 0 0 0 0 0 SI Software & Maintenance 0 0 0 0 0 0 0 0 0 0 40,986 0 Project Reserves 5,219 0 3,609 0 3,609 0 7,982 0 3,084 0 3,084 0 Total Contracted Services 556,484 514,344 1,972,697 1,978,194 312,991 278,319 1,712,838 309,671 437,839 412,752 4,438,566 413,035 Contingency 93,810 0 388,278 0 62,182 0 342,568 0 76,138 0 1,559,185 0 Total Budget Allocation & Spend 1,336,099 1,169,497 5,442,449 5,102,088 366,566 326,707 1,773,133 359,847 491,414 459,205 4,513,669 471,870 Total Contingency 105,425 0 398,993 0 72,897 0 440,752 0 86,853 0 1,569,900 0 Project Connect 42
FY 2011-2012 Budget Allocation and Spend by Month - Q3 & Q4 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 Budget Forecast Budget Forecast Budget Forecast Budget Forecast Budget Forecast Budget Forecast OPS Funding 3,800 3,735 3,800 3,735 3,800 3,735 3,800 3,735 3,800 3,735 3,800 3,735 Contingency 760 0 760 0 760 0 760 0 760 0 760 0 Expenses Funding 94,353 99,201 91,303 91,303 221,003 221,003 74,275 74,275 91,275 91,275 71,275 71,275 Contingency 14,855 0 13,955 0 13,955 0 14,855 0 18,255 0 14,255 0 OCO Funding 4,999 4,999 30,000 30,000 326,148 326,148 40,000 40,000 0 0 0 0 Contingency 0 0 0 0 0 0 0 0 0 0 0 0 Contracted Services Project Management & Support 160,324 281,288 160,324 270,316 160,324 178,389 160,324 178,389 160,324 178,389 160,324 178,389 IV&V Services 46,456 46,456 46,456 46,456 77,762 77,762 77,762 77,762 46,456 46,456 46,456 46,456 Benefits Realization Strategy 7,920 15,810 7,920 15,810 7,920 15,810 7,920 15,810 7,920 15,810 7,920 15,810 Organizational Change Management 40,150 48,217 38,700 48,217 38,700 48,217 38,700 48,217 38,700 48,217 38,700 48,217 System Integrator (SI) Services 122,805 122,805 112,805 5,480,102 122,805 122,805 122,805 122,805 2,684,990 2,684,990 122,805 122,805 SI Hardware & Maintenance 0 0 0 0 1,282,389 1,282,389 0 0 0 0 0 0 SI Software & Maintenance 0 0 0 0 0 40,986 0 0 0 0 0 0 Project Reserves 3,315 0 3,270 0 3,270 0 3,315 0 3,485 0 3,285 0 Total Contracted Services 380,970 514,575 369,475 5,860,900 1,693,170 1,766,357 410,826 442,982 2,941,875 2,973,861 379,490 411,676 Contingency 75,904 148,106 75,895 184,343 381,166 134,027 75,904 46,530 588,375 533,602 75,898 46,530 Total Budget Allocation & Spend 484,122 622,511 494,578 5,985,939 2,244,121 2,317,244 528,901 560,992 3,036,950 3,068,871 454,565 486,686 Total Contingency 91,519 148,106 90,610 184,343 395,881 134,027 91,519 46,530 607,390 533,602 90,913 46,530 Project Connect 43