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					    Information Technology Project Request


Special Project Report
Executive Approval Transmittal



Department Name

Transportation
Project Title (maximum of 75 characters)                                        Project Acronym
Integrated Financial Management System ERP Financial Infrastructure
                                                                                    IFMS/E-FIS
    FSR Project ID        FSR Approval Date      Department Priority             Agency Priority

       2660-416                  01/11/2006                1                             1

                                    APPROVAL SIGNATURES
I am submitting the attached Special Project Report (SPR) in support of our request for the Office of the
State Chief Information Officer’s approval to continue development and/or implementation of this project.
I certify that the SPR was prepared in accordance with the State Administrative Manual Sections 4945-
4945.2 and that the proposed project changes are consistent with our information management strategy
as expressed in our current Agency Information Management Strategy (AIMS).
I have reviewed and agree with the information in the attached Special Project Report.
                   Chief Information Officer                                    Date Signed


Printed name:     Ann Barsotti
                     Chief Financial Officer                                    Date Signed


Printed name:     Cindy McKim
                        Budget Officer                                          Date Signed


Printed name:     Norma Ortega
                      Department Director                                       Date Signed


Printed name:     Will Kempton
                       Agency Secretary                                         Date Signed


Printed name:     Dale Bonner
     Department of Transportation

Integrated Financial Management System
                 (IFMS)

        Special Project Report


             January 2008
                                                    Table of Contents
2.0     IT Project Summary Package .......................................................... 5
 2.1          Executive Summary ......................................................................................................5
 2.2          Project Contacts ............................................................................................................8
 2.3          Project Relevance to State and/or Department/Agency Plans......................................9
 2.4          Budget Information ......................................................................................................10
 2.5          Vendor Project Budget ................................................................................................11
 2.6          Risk Assessment Information......................................................................................12
3.0     Proposed Project Change .............................................................. 13
 3.1          Project Background/Summary.....................................................................................13
 3.2          Project Status ..............................................................................................................14
 3.3          Reason for Proposed Change.....................................................................................16
      3.3.1      Reason For Schedule Change ................................................................................16
      3.3.2      Reason For Change In Costs..................................................................................18
 3.4          Proposed Project Change ...........................................................................................19
      3.4.1      Change in Schedule ................................................................................................19
      3.4.2      Change in Costs......................................................................................................20
 3.5          Impact of Proposed Change on Project ......................................................................23
 3.6          Feasible Alternatives Considered................................................................................23
 3.7          Implementation Plan....................................................................................................23
4.0     Updated Project Management Plan............................................... 24
 4.1          Project Manager Qualifications ...................................................................................24
 4.2          Project Management Methodology..............................................................................24
 4.3          Project Organization....................................................................................................26
 4.4          Project Priorities ..........................................................................................................30
 4.5          Project Plan .................................................................................................................30
      4.5.1      Project Scope ..........................................................................................................30
      4.5.2      Project Assumptions................................................................................................30
      4.5.3      Project Phasing .......................................................................................................31
      4.5.4      Roles and Responsibilities ......................................................................................32
      4.5.5      Project Schedule .....................................................................................................32
 4.6          Project Monitoring .......................................................................................................33
 4.7          Project Quality .............................................................................................................33
 4.8          Change Management..................................................................................................33
 4.9     Authorization Required................................................................................................33
5.0    Updated Risk Management Plan ................................................... 34
6.0    Updated Economic Analysis Worksheets .................................... 35
Department of Transportation                            Integrated Financial Management System SPR



2.0 IT Project Summary Package
2.1    Executive Summary
 1    Submittal Date             January 11, 2008


                                       FSR              SPR           PSP Only               Other:
 2    Type of Document                                    X
      Project Number             2660-416


                                                                                    Estimated Project
                                                                                         Dates
 3    Project Title              Integrated Financial Management System              Start            End
      Project Acronym            IFMS/E-FIS                                       12/1/05         04/01/10


 4    Submitting Department      Department of Transportation
 5    Reporting Agency           Business, Transportation and Housing
 6    Project Objectives
      The objectives listed below have not changed since the FSR:

      The primary objective of IFMS/E-FIS and the IFMS Strategic Plan is to have access to
      comprehensive information to better manage the Caltrans organization like a business. Caltrans
      intends to create and implement an integrated financial management solution that will:
      1.   Enable Caltrans to make the best investment decisions by providing all facets of cost of
           ownership information.
      2.   Enable Caltrans to manage the cost of doing business by providing timely and consistent
           cost management information.
      3.   Establish efficient financial management processes by modernizing the financial
           management systems.
      4.   Support Caltrans’ financial reporting requirements, decision-making needs, and other highly
           data-dependent objectives that require structured and coherent data.
      5.   Achieve financial management and tracking capabilities not currently available to Caltrans
      6.   Provide a seamless, streamlined interface for existing legacy systems and other Caltrans
           infrastructure components.
      7.   Enable Caltrans to realize major efficiency and data accuracy gains by consolidating
           redundant legacy systems into a new, enterprise-wide solution.




IMFS/E-FIS Final                                                              Project Number 2660-416
January 11, 2008                                                                              Page: 5
Department of Transportation                         Integrated Financial Management System SPR


 7                          Major Milestones                       Actual/Planned Delivery Date
 1    Receive FSR Approval                                               January 11, 2006
 2    Define Business & Technical Requirements                          September 20, 2006
 3    Release Integration Partner RFP                                   December 21, 2006
 4    Award Contract                                                        April, 2008
 5    Complete System Design                                                April, 2009
 6    Complete System Development                                          August, 2009
 7    Complete Testing                                                    October, 2009
 8    Complete Data Conversion                                           November, 2009
 9    Complete Training                                                  December, 2009
 10   Complete IFMS/E-FIS Production Cutover                             December, 2009
 11   Complete IFMS/E-FIS Production Acceptance Period                      April, 2010
 12   Complete Post Implementation Evaluation                               May, 2011


 8                          Key Deliverables                       Actual/Planned Delivery Date
 1    Approved FSR                                                       January 11, 2006
 2    Completed Requirements Document                                   September 25, 2006
 3    Integration Partner RFP                                           December 21, 2006
 4    Executed Contract                                                     April, 2008
 5    System Design Documentation                                           April, 2009
 6    System Configuration and Software Documentation                      August, 2009
 7    User Acceptance Test Results Report                                 October, 2009
 8    Production Verification Test Results Report                        November, 2009
 9    Training Evaluation Report                                         December, 2009
 10   Production Readiness Assessment Report                             December, 2009
 11   Final Acceptance Report                                               April, 2010
 12   Post Implementation Evaluation Report (PIER)                          May, 2011




IMFS/E-FIS Final                                                       Project Number 2660-416
January 11, 2008                                                                       Page: 6
Department of Transportation                        Integrated Financial Management System SPR


 9    Proposed Solution


      The proposed IFMS/E-FIS solution calls for:
         •   Establishing the base infrastructure to support the ERP, data warehouse and other
             related applications.
         •   Procuring and customizing the General Ledger, Accounts Receivable, Accounts
             Payable, and Reporting functionality of a COTS ERP product, including workflow
             processes, configurable business rules and validations, and standard reports.
         •   Installing a COTS Enterprise Application Integration (EAI) infrastructure to support
             interfaces among legacy, existing, and future systems.
         •   Establishing a COTS data warehouse, including data extraction, transformation and
             load (ETL) tools, and creating the required data feeds for pertinent financial and
             related information.
         •   Implementing COTS business intelligence and reporting tool(s) that will provide
             managerial and operational reporting and data analysis functionality.




IMFS/E-FIS Final                                                      Project Number 2660-416
January 11, 2008                                                                      Page: 7
Department of Transportation                                                     Integrated Financial Management System SPR



2.2     Project Contacts




                                                                                      Project #    2660-416
                                                                                      Doc. Type    SPR


Executive Contacts
                   First Name   Last Name   Area Code   Phone #    Ext.   Area Code   Fax #        E-mail
Agency Secretary   Dale         Bonner      916         323-5400          916         323-5440     secretary@bth.ca.gov
Dept. Director     Will         Kempton     916         654-5267          916         654-6608     will_kempton@dot.ca.gov
Budget Officer     Norma        Ortega      916         654-6841          916         653-2004     norma_ortega@dot.ca.gov
CIO                Ann          Barsotti    916         654-3910          916         654-2949     ann_barsotti@dot.ca.gov
Project Sponsor    Cindy        McKim       916         654-3986          916         654-6608     cindy_mckim@dot.ca.gov
Direct Contacts
Primary Contact    Clark        Paulsen     916         227-9000          916         227-9176     clark_paulsen@dot.ca.gov
Project Manager    Kathy        Booher      916         227-0575          916         227-9176     kathy_booher@dot.ca.gov
IT Project
                   Ardeana      Ota         916         227-9279          916         227-9176     ardeana_ota@dot.ca.gov
Manager
Document
                   Kathy        Booher      916         227-0575          916         227-9176     kathy_booher@dot.ca.gov
Preparer




IMFS/E-FIS Final                                                                                   Project Number 2660-416
January 11, 2008                                                                                                   Page: 8
Department of Transportation                                                                     Integrated Financial Management System SPR



2.3    Project Relevance to State and/or Department/Agency Plans
      What is the date of your current Operational Recovery        Date             October                    Project #            2660-416
      Plan (ORP)?                                                                   2006
      What is the date of your current AIMS?                       Date             August                     Doc. Type            SPR
                                                                                    2007
      For the proposed project, provide the page reference         Doc.             AIMS
      in your current AIMS?                                        Page #           36


                                                                                                                               Yes         No
      Is the project reportable to control agencies?                                                                            X
      If YES, CHECK all that apply:
       X    The project involves a budget action.
            A new system development or acquisition that is specifically required by legislative mandate or is subject
            to special legislative review as specified in budget control language or other legislation.
            The project involves the acquisition of microcomputer commodities and the agency does not have an
            approved Workgroup Computing Policy.
       X    The estimated total development and acquisition cost exceeds the departmental cost threshold.
            The project meets a condition previously imposed by Finance.




IMFS/E-FIS Final                                                                                                         Project Number 2660-416
January 11, 2008                                                                                                                         Page: 9
Department of Transportation                                                           Integrated Financial Management System SPR



2.4    Budget Information
                                                                                                             Project #     2660-416
                                                                                                             Doc. Type     SPR
 Budget Augmentation Required?
                                 No
                                 Yes      X      If YES, indicate fiscal year(s) and associated amount:
                                                 FY 05/06     FY 06/07       FY 07/08     FY 08/09    FY 09/10    FY 10/11
                                                     0             0        10,393,351    9,482,519   6,630,000      0


 PROJECT COSTS
  1. Fiscal Year                       2005/06       2006/07       2007/08       2008/09        2009/10       2010/11         TOTAL
  2. One Time Cost                     541,242     1,462,622    11,326,360    10,845,718      5,124,926             0    $29,300,868
  3. Continuing Costs                                               55,959       567,436      4,697,189     5,782,068    $11,102,651
  4. Total Project Budget              541,242     1,462,622    11,382,319    11,413,154      9,822,115     5,782,068    $40,403,519


 SOURCES OF FUNDING
  5. General Fund
  6. Redirection                       541,242     1,462,622       988,968     1,930,635      3,192,115     5,782,068     13,897,649
  7. Reimbursements
  8. Federal Funds
  9. Special Funds
 10. Grant Funds
 11. Other Funds                                           0    10,393,351     9,482,519      6,630,000             0     26,505,870
 12. Project Budget                    541,242     1,462,622    11,382,319    11,413,154      9,822,115     5,782,068    $40,403,519


 PROJECT FINANCIAL BENEFITS
 13. Cost Avoidances                                                                            91,000      3,079,354     $3,170,354
 14. Revenue Increase




IMFS/E-FIS Final                                                                                          Project Number 2660-416
January 11, 2008                                                                                                         Page: 10
Department of Transportation                                                                                                               Integrated Financial Management System SPR



2.5     Vendor Project Budget
                                                                                                                                                                            Project #        2660-416
Vendor Cost for FSR Development (if applicable)                                            $232,412                                                                         Doc. Type            SPR
      Vendor Name      Gartner Consulting

VENDOR PROJECT BUDGET
1.                      Fiscal Year            05/06                       06//07                    07/08                          08/09                      09/10          10/11         TOTAL
2.          Primary Vendor Budget                     0                           0                  8,476,130                      7,341,500                  2,711,250                0    18,528,880
3.    Independent Oversight Budget               10,000                     115,437                    125,422                        125,423                     90,750                0       467,032
4.                    IV&V Budget                     0                     230,000                    300,000                        106,960                    101,197                0       738,157
5.            Other Vendor Budget               310,670                     383,338                    235,330                        195,200                    150,003                0     1,274,541
6.      TOTAL VENDOR BUDGET                    $320,670                    $728,775                 $9,136,882                     $7,769,083                 $3,053,200                0   $21,008,610
                                    -------------------------------------------------(Applies to SPR only)-----------------------------------------------------


PRIMARY VENDOR HISTORY SPECIFIC TO THIS PROJECT
7.                  Primary Vendor CGI
8.             Contract Start Date 04/16/2008
9.              Contract End Date 04/16/2011
                       (projected)
10.                Contract Amount $ 18,528,880

PRIMARY VENDOR CONTACTS
                                          Last                  Area                                                Area
                                          Name
       Vendor         First Name                               Code              Phone                Ext.         Code                   Fax                              E-mail
11. CGI              Angela           Cheung                   (916)           283-2021                            (916)           830-1199                 angela.cheung@cgi.com




IMFS/E-FIS Final                                                                                                                                                       Project Number 2660-416
January 11, 2008                                                                                                                                                                      Page: 11
Department of Transportation                            Integrated Financial Management System SPR



2.6    Risk Assessment Information
                                                                                Yes              No
 Has a Risk Management Plan been developed for this project?                     X


                                         General Comment(s)
 Given the scope, activities, and resources required to plan for, procure, design and implement IFMS/E-
 FIS, Caltrans has developed a Risk Management Plan that adheres to its Project Management Office
 (PMO) standards while factoring in the risks specific to this effort. The resulting methodology for the
 Risk Management Plan is consistent with the State of California’s Project Management Methodology,
 the Office of the Chief Information Officer’s Information Technology Project Oversight Framework, and
 the Caltrans IT Project Management Methodology and Standards.

 Preventive measures will be taken in each of the risk areas to mitigate the chances of risk occurrence.
 These measures are identified in the risk management worksheet contained in Section 5 of this SPR.
 As new risks are identified throughout the project life cycle, appropriate preventive measures will be
 developed.




IMFS/E-FIS Final                                                              Project Number 2660-416
January 11, 2008                                                                             Page: 12
Department of Transportation                        Integrated Financial Management System SPR



3.0 Proposed Project Change
3.1    Project Background/Summary
       Changes in business needs over the past 20 years have placed the Caltrans
       organization at a crossroads regarding its financial management processes and
       supporting systems. Aging technology, an increasing number and complexity of funding
       sources, and changes in legislation have collectively raised the demands on Caltrans
       and accentuated problems with the current method of executing financial management
       functions. More importantly, the lack of management data available to Caltrans often
       results in decision-making that is based on untimely, incomplete and anecdotal
       information.
       The current automation method for financial management includes 160 systems that
       vary from centralized mainframe systems to distributed client-server applications to
       individual desktop databases and spreadsheets. This environment has resulted in
       systems that exhibit duplicate functionality and data, redundant data entry into
       unconnected systems, as well as multiple point-to-point interfaces necessary to provide
       data to meet user needs.
       The largest application in support of financial management functions is Caltrans’ primary
       accounting system, Transportation Accounting and Management System (TRAMS).
       TRAMS is a collection of mainframe applications implemented in 1983. It was designed
       to meet Caltrans’ accounting needs in the following areas: appropriation control,
       expenditure accounting, encumbrance accounting, receipt accounting, accounts
       payable, general ledger accounting, cost accounting, cost allocation and labor
       distribution. However, functional gaps, both real and perceived, and other limitations in
       TRAMS have led to the development and acquisition of complementary and overlapping
       systems that negatively impact productivity, data integrity and support costs.
       The scope and scale of the business problems and impacts related to financial
       management functions is challenging to quantify. However, given that Caltrans is
       responsible for an annual $14 billion budget, $6.5 billion in capital projects and
       approximately 545 contracts for transportation improvement projects, the impacts of
       financial management problems are significant for current initiatives and future
       investments. In addition, the Caltrans program has a direct impact on State commerce,
       tourism, and recreational travel of Californians. Due to the scope and scale of Caltrans’
       responsibilities, Caltrans is often placed in the difficult position of responding without
       complete information to inquiries from the Legislature, Department of Finance, and the
       general public regarding the use of, and accountability for, taxpayer dollars.
       In 2004, Caltrans completed an Integration Study which established an Integrated
       Financial Management System (IFMS) Strategic Plan. (The IFMS Integration Study,
       which includes the Strategic Plan, is available from the Bidders Library.) The plan
       outlines a series of projects to consolidate and streamline financial operations and
       systems, including a roadmap, project priorities, sequencing and dependencies. The
       Enterprise Resource Planning (ERP) Financial Infrastructure (E-FIS) project is the first of
       these projects identified by the IFMS Strategic Plan.
       The IFMS Strategic Plan also identifies future capabilities which will build upon and
       leverage the E-FIS capabilities including budget development, inventory management,
       asset management, procurement (requisitions), and additional reporting functionality.


IMFS/E-FIS Final                                                        Project Number 2660-416
January 11, 2008                                                                       Page: 13
Department of Transportation                           Integrated Financial Management System SPR


       The Department of Finance also is embarking on an enterprise level project to
       implement a statewide accounting and budgeting system (Fi$Cal). The IFMS solution
       will be required to interface with this future system. It is anticipated that this interface will
       be accomplished through the E-FIS Enterprise Application Integration (EAI) tools.
       The IFMS/E-FIS project scope includes:
       •   Establishing the base infrastructure to support the ERP, data warehouse and other
           related applications.
       •   Procuring and customizing the General Ledger, Accounts Receivable, Accounts
           Payable, and Reporting functionality of a COTS ERP product, including workflow
           processes, configurable business rules and validations, and standard reports.
       •   Installing an Enterprise Application Integration (EAI) infrastructure to support
           interfaces among legacy, existing, and future systems.
       •   Establishing a data warehouse, including data extraction, transformation and load
           (ETL) tools, and creating the required data feeds for pertinent financial and related
           information.
       •   Implementing COTS business intelligence and reporting tool(s) that will provide
           managerial and operational reporting and data analysis functionality.



3.2    Project Status
           Since the FSR was approved and released in January 2006, Caltrans has made
           significant strides towards completing the procurement phase of the IFMS/E-FIS
           project. Once the project team was established, Caltrans began the process of
           preparing for procurement by selecting vendors to assist with the procurement
           process, defining business requirements, and drafting the RFP.
           The RFP was published in December 2006, and most of 2007 was spent working
           with DGS to ensure that final proposals received would be compliant with Caltrans
           defined requirements. Prospective bidders submitted questions relating to the RFP
           seeking clarification of requirements, technical and legal terms. In response to
           bidder questions, Caltrans revised the requirements to clarify what vendors were
           expected to provide in their bid proposals. Caltrans determined that the time spent
           revising and strengthening the RFP resulted in clearer expectations of potential
           bidders. Caltrans prepared 9 addenda to the RFP.




IMFS/E-FIS Final                                                            Project Number 2660-416
January 11, 2008                                                                           Page: 14
Department of Transportation                       Integrated Financial Management System SPR


Table 1.   Table of Major Milestones Achieved to Date:


           MAJOR MILESTONES                                                   Actual
                                                                           Completion Date

           DOF Approves the Feasibility Study Report                           01/11/2006
           Caltrans IFMS/E-FIS Project team is established                     01/12/2006


           RFP Preparation
           Select Business Requirements Vendor                                  2/10/2006
           Select Procurement Vendor                                            6/14/2006
           Define Business Requirements                                         6/15/2006
           Define Technical, Implementation, and Support Requirements           9/25/2006
           Develop Draft RFP                                                    9/27/2006
           Submit RFP to DOF and DGS for Review                                10/12/2006
           Develop Final Evaluation Criteria and Scoring Matrix                11/01/2006
           Receive DGS Approval of RFP                                         11/02/2006
           Receive DOF Approval of RFP                                         12/19/2006
           Release RFP                                                         12/21/2006


           RFP Bidding Process
           Conduct Bidders Conference                                           1/12/2007
           Evaluate Draft Proposals                                             4/13/2007
           Conduct Confidential Discussions                                     5/09/2007
           Final RFP Addendum Published                                         9/25/2007
           Receive Final Proposals                                             10/05/2007
           Evaluate Final Proposals                                            10/19/2007
           Complete Final Proposal Scoring                                     10/24/2007
           Conduct Public Cost Opening                                         11/14/2007
           Notice of Intent to Award                                           12/14/2007
           End of Protest Period                                               12/21/2007




IMFS/E-FIS Final                                                     Project Number 2660-416
January 11, 2008                                                                    Page: 15
Department of Transportation                        Integrated Financial Management System SPR



3.3     Reason for Proposed Change
           The Department of Finance’s January 11, 2006 approval of the IFMS/E-FIS Request
           For Proposal (RFP) requires Caltrans to submit a Special Project Report (SPR) that
           documents the chosen vendor’s project plan and costs. Additionally, Caltrans is
           proposing changes to both project costs and the project schedule.

           There are no proposed changes to the scope of the project.


3.3.1    Reason For Schedule Change
           There are several contributing factors that led to changes in the project schedule.
           See Table 2 for a visual comparison of schedule changes between the FSR and
           SPR.

           1. The procurement process took longer than anticipated. The original FSR
              schedule was aggressive, estimating Caltrans could complete all the required
              procurement tasks within 14 months, including writing the RFP, obtaining control
              agency approvals, selecting a prime vendor, selecting IV&V, IPOC, and Project
              Management vendors, and completing the contract award process for all
              vendors. The FSR estimated that the procurement process would end and
              system development would start by February, 2007. The RFP process and
              prime vendor selections actually took 28 months. The new target date for
              completion of the procurement process and start of system development is April,
              2008.

           2. There were significantly more bidder questions than anticipated. Caltrans
              determined it was in the best interests of the project to clarify many of the RFP
              requirements and terms in response to these questions. This added time to the
              procurement process, but is expected to result in fewer misunderstandings with
              the prime vendor and a smoother system development phase. In addition,
              Caltrans determined that spending the time necessary to clarify what was
              required of vendors increased the likelihood of receiving proposals that met the
              needs of the project and reduced the risk of protests by unsuccessful bidders.

           3. The control agency review and approval of project documents such as the RFP
              and RFP addenda exceeded the schedule estimate.

           4. The FSR called for a one month “production acceptance” period. During the
              development of the RFP Caltrans changed the production acceptance
              requirement to four months. Given the large number of systems being replaced
              or interfaced, both the DGS analyst and procurement consultant agreed with
              Caltrans that the shorter production acceptance period would not provide an
              adequate amount of time for monitoring the system in the production
              environment. The four month production acceptance period allows Caltrans to
              verify end of month and end of quarter functions and reporting while still having
              the Contractor available onsite to support analysis and correction of any
              anomalies or problems. Since the Contractor is onsite, it is able to respond to
              questions and problems in a more timely manner than regular warranty support
              provides when the Contractor is offsite. It also provides a longer transition period

IMFS/E-FIS Final                                                        Project Number 2660-416
January 11, 2008                                                                       Page: 16
Department of Transportation                         Integrated Financial Management System SPR


               allowing Caltrans to begin taking responsibility for the system while still having
               onsite access to the Contractor in the event of complex anomalies or problems

           5. Decrease in time for System Development, Deployment, and Training. While the
              timeline for procurement is expected to take 14 months longer than originally
              anticipated, the time required for System Development, Deployment, and
              Training is expected to take eight months less than originally anticipated for the
              following reasons:

                   a. The requirements are more streamlined and well-defined than they were
                      before. Higher quality requirements are expected to result in improved
                      development efficiency.

                   b. Discussions with potential vendors led the project management team to
                      the conclusion that it is not necessary to implement at the fiscal year
                      cutover. The concept of mid-fiscal year implementation was determined
                      to be plausible. Without the need to be tied to a fiscal year end date,
                      more attention could be placed on the actual time needed for
                      implementation.

                   c. During the extended procurement process, Caltrans was able to better
                      prepare for the System Design and Implementation phase, performing
                      tasks in advance that would otherwise have been incorporated into the
                      system development timeline. Activities are underway in four key areas:
                      Business Process Review, Data Conversion, Interface Specifications and
                      Requirement Mapping. For example, Caltrans has recently completed
                      updating the Business Process Review, drafted a Data Conversion policy
                      that will facilitate the process of converting existing data into the newly
                      developed system, and begun developing specifications for systems that
                      will interface with IFMS/E-FIS. Also, Caltrans is in the process of
                      mapping requirements to business processes. This will streamline
                      requirements traceability during the development process.




IMFS/E-FIS Final                                                         Project Number 2660-416
January 11, 2008                                                                        Page: 17
Department of Transportation                        Integrated Financial Management System SPR




3.3.2    Reason For Change In Costs
           Caltrans anticipates changes of greater than 10% in its costs for the project. There
           are three primary reasons for the change in costs:

           1. The contract amount proposed by the successful bidder exceeds the estimate
              documented in the FSR. The original estimate was $10,595,200, but the
              successful bid was $15,176,250. Caltrans attributes this increase to the following
              factors:

                   a. Additional System Interfaces - While preparing the RFP, Caltrans
                      performed further analysis of the System Interface requirements identified
                      in the FSR. This analysis uncovered additional existing systems that
                      interface with the core accounting system and must be included in the E-
                      FIS interface requirements. Additionally, some systems with “two-way”
                      interfaces (data flows to and from the core accounting system) were
                      counted as one interface. Caltrans clarified the RFP requirements to
                      correctly describe these as two separate interfaces. While addition of
                      these interfaces increases the work required by the vendor, they don’t
                      change the core functionality of the proposed ERP solution.

                   b. Additional Data Conversion - While preparing the FSR, Caltrans also
                      performed further analysis of the storage requirements for data being
                      converted from the current accounting system and determined that 4
                      terabytes (TB) of data would need to be converted instead of the 0.5 TB
                      of data estimated in the FSR.

                   c. Increased Production Acceptance Period - During the development of
                      the RFP, Caltrans changed the production acceptance requirement from
                      one month to four months. Given the large number of systems being
                      replaced or interfaced, both the DGS analyst and procurement consultant
                      agreed with Caltrans that the shorter production acceptance period would
                      not provide an adequate level of time for monitoring the system in the
                      production environment.

           2. The extension of the project schedule by 9 ½ months will require Caltrans to
              commit more internal staff resources to the project than originally estimated and
              will also require Caltrans to extend the contracts of the IV&V, IPOC, and Project
              Management vendors by nine months.

           3. DTS costs for data processing and storage, as projected by the successful
              bidding vendor, exceeded the cost estimates in the FSR. Caltrans attributes this
              increase to the fact that required data storage costs were inadvertently omitted
              from the EAW Proposed Solution worksheet when the FSR was prepared,
              although this requirement was addressed in the Assumptions in section 6 of the
              FSR.

           Table 3 provides the detailed breakdown of the change in costs from the FSR to the
           SPR, along with analysis of these changes.

IMFS/E-FIS Final                                                       Project Number 2660-416
January 11, 2008                                                                      Page: 18
Department of Transportation                                                            Integrated Financial Management System SPR




3.4     Proposed Project Change
            Caltrans is proposing changes to both the project schedule and the project costs as described below:

3.4.1      Change in Schedule
            The FSR expected a project start date of December 2005 and completion date of June 16, 2009. The new
            schedule calls for a completion date of April 1, 2010, an increase of 9 ½ months. See Table 2 below:

Table 2.    Comparison of Project Phases – FSR to SPR




                                       May-06




                                       May-07




                                       May-08




                                       May-09
                                       Dec-05




                                       Nov-06
                                       Dec-06




                                       Nov-07
                                       Dec-07




                                       Nov-08
                                       Dec-08




                                       Nov-09
                                       Dec-09
                                       Aug-06
                                       Sep-06




                                       Aug-07
                                       Sep-07




                                       Aug-08
                                       Sep-08




                                       Aug-09
                                       Sep-09
                                       Mar-06




                                       Mar-07




                                       Mar-08




                                       Mar-09




                                       Mar-10
                                       Feb-06




                                       Feb-07




                                       Feb-08




                                       Feb-09




                                       Feb-10
                                       Jan-06




                                       Jun-06




                                       Jan-07




                                       Jun-07




                                       Jan-08




                                       Jun-08




                                       Jan-09




                                       Jun-09




                                       Jan-10
                                       Oct-06




                                       Oct-07




                                       Oct-08




                                       Oct-09
                                       Apr-06




                                       Apr-07




                                       Apr-08




                                       Apr-09
                                       Jul-06




                                       Jul-07




                                       Jul-08




                                       Jul-09
Project Phase
                                       Feasibilty Study Report
Procurement                                     14 months
System Development                                                                   24 months
System Deployment and Training                                                                                     4 mo
User Acceptance (warranty period)                                                                                         1 mo


                                       Special Project Report
Procurement                                                  28 months
System Development                                                                                          19 months
System Deployment and Training                                                                                                5 mo
User Acceptance (warranty period)                                                                                                     4 mo




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3.4.2      Change in Costs
            Table 3 below identifies the differences in proposed total project costs from the FSR to this SPR. The differences are
            explained in the Discussion Items following the table.

Table 3.    Change in Costs – FSR to SPR



                                                                                                                                       DIFFERENCE
                                                          Discussion           FSR                            SPR

                                                            Item       PYs            Amts           PYs             Amts           PYs             Amts
            One-Time IT Project Costs
             Staff (Salaries & Benefits)                       1        84.0           7,137,431       87.7           7,917,070           3.7          779,640
             Hardware Purchase                                                                 0                              0                              0
             Software Purchase/License/Training                2                       3,480,000                      3,352,630                      (127,370)
             Telecommunications                                                                0                              0                              0
             TOTAL Contract Services                           3                      10,595,200                     15,176,250                      4,581,050
             Data Center Services                              4                               0                         14,510                         14,510
             Procure Assistance/DGS/IV&V/Proj Oversight        5                       2,324,266                      2,479,730                        155,464
             Other (Travel)                                    6                          90,000                        360,677                        270,677
            Total One-time IT Costs                                     84.0         23,626,897       87.7          29,300,867            3.7       5,673,971
            Continuing IT Project Costs
             Staff (Salaries & Benefits)                       7        32.0           2,720,000       21.3           1,941,333        (10.7)        (778,667)
             Hardware Lease/Maintenance                                                        0                              0                              0
             Software Maintenance/Licenses                     8                       1,183,200                      1,796,075                        612,875
             Telecommunications                                                                0                              0                              0
             Contract Services                                                                 0                              0                              0
             Data Center Services                              9                       3,807,627                      6,773,643                      2,966,016
             Agency Facilities                                                                 0                              0                              0
             Other - Training                                                            591,600                        591,600                              0
            Total Continuing IT Costs                                   32.0          8,302,427       21.3          11,102,651        (10.7)        2,800,224
            Total Project Costs                                                      31,929,324                     40,403,519                      8,474,195




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           Discussion of Changes In Costs

           Item 1 –    One-Time IT Project Costs; Staff Salaries and Benefits. This line item is higher than estimated in the original
                       FSR, with an increase of 3.7 PYs and $779,640. The Finance Letter related to this SPR includes the extension
                       of 12 limited-term positions from 2 years to 3 years. The positions were set to expire February 2009 but due to
                       project delays, staff levels need to be extended until February 2010. Position management was exercised in
                       FY 2006/07 and 2007/08. Procurement delays resulted in program subject matter experts not being redirected
                       to the project as early as originally estimated in the FSR. The net increase in project staff costs is 3.7 PYs and
                       $779,640. In addition to the increased staff needs, the estimated salary rate applied to PYs was updated for
                       the SPR. The FSR staff salary rate assumption was $85,000 per PY; the updated rate applied to the SPR (for
                       FY 07/08 and beyond) is $91,000 to factor in COLA increases effective during this time period.

           Item 2 –    One-Time IT Project Costs – Software Purchase/License/Training. The bid amount for this item was lower than
                       estimated in the FSR.

           Item 3 –    One-Time IT Project Costs; Total Contract Services. This line item increased because the contract amount
                       proposed by CGI exceeds the original estimate documented in the FSR. The original estimate was
                       $10,595,200, but the successful bid was $15,176,250. During the development of the RFP, Caltrans
                       determined the need for, and added the requirement of, a four month production acceptance period which
                       increases the cost of services from the vendor. The cost of this longer acceptance period was not estimated in
                       the FSR. Also, further analysis revealed that the vendor will be required to design more system interfaces and
                       assist in more data conversion than estimated when the FSR was developed.

           Item 4 –    One-Time IT Project Costs; Data Center Services. This cost item is for DTS hardware setup costs not included
                       in the original FSR.

           Item 5 –    One-Time IT Project Costs; Procure Assistance/DGS/IV&V/Proj Oversight. This line item increased by
                       $155,464. Revising the project completion date to April 2010 required the completion dates for the IPOC,
                       IV&V and Project Management contracts to be revised from June 30, 2009 to March 20, 2010. The initial cost
                       of the eight month extension is estimated at $341,950. However, initial contract amounts negotiated for these
                       services are lower than estimated in the FSR. Therefore, the net increase to this line item is only $155,464.

           Item 6 –    One-Time IT Project Costs; Other (Travel). This cost item was not included beyond FY06/07 in the original
                       FSR. The SPR was written to reflect Operating Expense funding stated in the BCP and Finance Letter through
                       FY09/10.

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           Item 7 –    Continuing IT Project Costs; Staff Salaries and Benefits. This line item is lower than estimated in the original
                       FSR. The PY figure for FY 09/10 is lower because of the change in project implementation date. The FSR
                       anticipated continuing IT support of 16 PYs per fiscal year would start at the beginning of the fiscal year.
                       However, our new schedule anticipates continuing IT support will start with only 4 months left in the fiscal year,
                       resulting in a prorated PY figure of 5.3 PYs for the remainder of FY09/10.

           Item 8 –    Continuing IT Project Costs – Software Purchase/License/Training. The actual bid amount for this item was
                       higher than estimated in the FSR.

           Item 9 –    Continuing IT Project Costs – Data Center Services. The line item was higher than estimated in the FSR,
                       because required data storage costs were inadvertently omitted from the EAW Proposed Solution worksheet
                       when the FSR was prepared, although this requirement was addressed in the Assumptions in section 6 of the
                       FSR.

           .




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3.5    Impact of Proposed Change on Project

Table 4.    Impact of Proposed Change on Project
           #        Area                              Impact
           1.      Scope       • Caltrans is not requesting any changes in scope
           2.      Schedule    • Implementation date changed from June 2009
                                 to April 2010.
           3.      Cost        • Increased total one-time costs by $5,673,971.
                               • Increased total continuing costs by $2,800,224.
                               • Increased total project costs by $8,474,195.


3.6    Feasible Alternatives Considered
           There were no alternatives considered for the purposes of this SPR.



3.7    Implementation Plan
       There is no change to the Implementation Plan as approved in the FSR.




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4.0 Updated Project Management Plan
4.1    Project Manager Qualifications
Since the FSR for the IFMS/E-FIS project was approved, Caltrans has assigned an experienced
project manager with the requisite project management skills to lead the IFMS/E-FIS project.
Caltrans selected a project manager from the Division of Accounting so that the project would
be managed and owned from a business perspective.
Kathy Booher, the assigned project manager, has worked for Caltrans in the Division of
Accounting for nearly 18 years. A Certified Public Accountant (CPA), she has experience as the
Chief of Caltrans' Office of Financial Accounting and Analysis, and was the Chief of the Branch
responsible for managing and operating Caltrans’ primary legacy financial system, TRAMS. Her
years of experience in the Division have provided her with an understanding of Caltrans'
business processes, supporting systems, and the objectives and requirements of IFMS/E-FIS.
Her background has also provided her with extensive experience managing complex programs,
leading staff, and implementing Department-wide change.

Ms. Booher has broadened her management experience by taking formal courses in project
management. Within the past year, Ms. Booher has completed the courses to achieve a
Certificate in Project Management from the California State University, Sacramento, College of
Continuing Education. In addition, she recently completed a comprehensive course in ERP
Project Management sponsored by the Government Finance Officers Association of the United
States and Canada.
Caltrans has supplemented Ms. Booher’s experience by adding Ardeana Ota as the IFMS/E-FIS
Technical Project Manager. Ms. Ota will manage the technical tasks and personnel assigned to
the project. She will bring specific experience managing technical projects and staff to IFMS/E-
FIS. She has more than 9 years of technical project management experience, all with Caltrans.
She has recently been responsible for managing the initial implementation of Caltrans’
enterprise-wide human resource ERP system, which is a COTS application. In this role, she
was responsible for managing the software and integration vendor for the HR application, and
managed approximately 20 state technical staff assigned to the system’s implementation and
support teams. Overall, she has direct experience managing ERP implementation projects and
“hands on” experience using system development processes and standards.
Finally, the IFMS/E-FIS project procured a project management consultant, Infiniti Consulting
Group, to supplement and enhance existing project management skills. The project
management consultant will continue on the IFMS/E-FIS project through completion.

4.2    Project Management Methodology
The IFMS/E-FIS project management methodology has been updated to better reflect the
OCIO’s Oversight Framework and the project management needs of the project.
Since the approval of the FSR, the IFMS/E-FIS project has implemented project management
processes and plans in compliance with the State’s Project Management Methodology as
defined in SIMM Section 200 and the Office of the Chief Information Officer IT Project Oversight
Framework (SIMM 45), augmented by project management methodologies as found in Caltrans’
Information Technology (IT) Project Management Methodology Manual.




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Department of Transportation                        Integrated Financial Management System SPR


The following processes and plans were established for the IFMS/E-FIS to guide our activities
during the procurement phase of the project (project prior to the selection of CGI) and provide a
project management “infrastructure” for future phases:
           Project Management Plan
           Risk Management Plan
           IT Procurement Plan
           Communications Plan
           Issue Management Process
           Project Schedule Update Process
           Budget Management Process
           Quality Management Plan
           Resource Management Plan
           Scope Change Management Plan
           Contract Management Plan
           Deliverable Review Process
           Organizational Change Management Plan


During the proposal process, CGI submitted a draft Project Management Plan detailing the
recommended system development and project management processes specific to the
implementation of their proposed solution. The draft Project Management Plan was developed
as a requirement of the IFMS/E-FIS Request for Proposal. The CGI Project Management Plan
is based on CGI project management best practices and leverages the CGI’s Client Partnership
Management Framework and Advantage Implementation Methodology for project management
and system development and implementation. The CGI Project Management Plan details the
following:
           Project Management Approach and Methodology
           Proposed Project Schedule
           Approach to Deliverables (use of Deliverable Expectation Documents, deliverable
           review process, and deliverable quality control)
           Project Organization Structure
           Development Process Model (tools and methodologies for system development,
           implementation, and conversion)
           Issue Resolution Approach
           Communication Plan
           Schedule Management Plan
           Quality Control Plan
           Document Management Plan
           Risk Management Plan


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              Configuration Management Plan
CGI was directed to submit this information to identify the processes, tools, and techniques
which have been successfully used in the past to implement its specific products. Caltrans will
work with CGI to integrate all project management processes and plans into a comprehensive
Project Management Plan to be implemented and managed by the IFMS/E-FIS Project Office.
This approach will enable the IFMS/E-FIS project to conform to the State’s Project Management
Methodology as defined in SIMM Section 200, the Office of the Chief Information Officer IT
Project Oversight Framework (SIMM 45), and Caltrans’ Information Technology (IT) Project
Management Methodology Manual while also leveraging CGI’s tools and best practices for the
implementation of its specific products.

4.3      Project Organization
The organizational structure for the IFMS/E-FIS Project is illustrated below in Figure 1. The
number and classification of the state team members assigned to the project is also detailed in
Table 5.
Figure 1.     IFMS/E-FIS Project Organization



                                                      IFMS E-FIS PROJECT
                                                     Project Organization Chart

                                                         DEPARTMENTOFTRANSPORTATION
                                                              Will Kempton, Director
                                                                                                               DEPARTMENTOFFINANCE
      INFORMATIONTECHNOLOGYMANAGEMENT
                 COMMITTEE                                  E-FISSTEERINGCOMMITTEE
                                                                 Project Sponsors
                                                         Cindy McKim, Chief Financial Officer
                                                        Ann Barsotti, Chief Information Officer
                                                                                                            INDEPENDENTPROJECTOVERSIGHT
                                                                                                                   CONSULTANT
                                                       IFMSPORTFOLIOPROJECTSMANAGER                              RMA Consulting Group
       ITOFFICEOFPROJECTIMPLEMENTATION                          Kari Gutierrez
                  Bill Brown



                                                            E-FISADVISORYCOMMITTEE




                 TECHNICAL TEAMS           E-FISTECHNICALPROJECT                                                        BUSINESS TEAMS
                                                  MANAGER                             E-FISPROJECTMANAGER
                                                 Ardeana Ota                               Kathy Booher

                 DEPARTMENTOF                                                                                             BUSINESSPROCESSAND
              TECHNOLOGYSERVICES                                                                                          SYSTEM CONFIGURATION
                                                                                                                                  TEAM
                                                       INDEPENDENTVALIDATIONAND                                                Lisa Kwong
                                                         VERIFICATIONCONSULTANT
                                          QUALITY     Visionary Integration Professionals
                                                                     (VIP)
              NETWORK/SERVERTEAM         ASSURANCE                                                                               TESTTEAM
                                                                                                                          1 Senior Project Manager
                                                                                                                                     FTE
                                                           PROJECTMANAGEMENT
             DEVELOPMENT/INTERFACE                               CONSULTANT
                    TEAM                                   Infiniti Consulting Group                                      TRAININGANDCHANGE
                                           PROJECT                                                                           MarSue Kleptic
                                                            E-FISPROJECTOFFICE
                                         MANAGEMENT
                                                                Marlin Lofton
                                           SUPPORT

                                                           PRIMEVENDORPROJECT
                                                                MANAGER
                                                                  TBD




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Figure 2.   Information Technology Organization

                                  Information Technology

                                            Chief Information Officer
                                                   Ann Barsotti



                                                Office of Project
                                                Implementation
                                                 Kari Gutierrez




                       Project Management                               IFMS/EFIS IT Project
                              Office                                         Manager
                            Lori Knott                                     Ardeana Ota




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Department of Transportation                       Integrated Financial Management System SPR




Figure 3.   Department of Transportation Organization




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Department of Transportation                       Integrated Financial Management System SPR



Table 5 below presents the classifications of the state personnel assigned to the IFMS/E-FIS
team.


Table 5.   IFMS/E-FIS Project Team Classifications




   IFMS/E-FIS Project Team           Number      State Employee Classification
      Staffing Resources

Project Manager                         1       Accounting Administrator III

Project Management Team                 1       Senior Information Systems
                                                Analyst (Supervisor)

                                        2       Accounting Administrator II

                                        1       Accounting Administrator I

                                        3       Staff Information Systems
                                                Analyst

                                        1       Associate Information Systems
                                                Analyst

                                        3       Associate Accounting Analyst

Technical Project Manager               1       Data Processing Manager III

                                        1       Senior Programmer Analyst
                                                Supervisor (Supervisor)

Technical Project Team                  4       Staff Programmer Analyst

                                        2       Systems Software Specialist II

                                        1       Associate Programmer Analyst




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4.4     Project Priorities
The project priorities for the IFMS/E-FIS project have changed as illustrated below in Table 6.
Due to feedback received from prospective vendors and the IV&V consultant’s
recommendations, Caltrans determined that mid-fiscal year implementation was acceptable.
Although the timely and successful completion of the IFMS/E-FIS project is critical to improving
Caltrans’ operational abilities, removing the fiscal year end implementation constraint provides
some flexibility in the project implementation date. As a result, the project schedule is changed
from constrained to accepted. The project scope is changed from accepted to constrained as
the success and functionality of latter projects are directly dependent on the successful
implementation of the IFMS/E-FIS project. Finally, resources remain improved, meaning that
additional resources may be added to the project depending on the circumstances and
requirements of the project.


Table 6.    Project Priorities
Schedule                          Scope                            Resources
Accepted                          Constrained                      Improved


4.5     Project Plan
The following section details any changes to critical project planning elements, including project
scope, project assumptions, project phasing, and an initial schedule estimate.

4.5.1      Project Scope

There are no changes to project scope since the FSR.

4.5.2      Project Assumptions
The following assumptions have changed since the development of the FSR. All other project
assumptions remain the same:
        The FSR assumed that funding for the IFMS/E-FIS project is acquired for the time period
        specified in the FSR. Due to significant procurement delays, this assumption is changed
        to reflect that funding for the IFMS project will be available for the time period required
        for project completion as specified in the revised project schedule included in this
        document.
        The FSR assumed that the project would adhere to a strict schedule in which all
        milestones would be met. Caltrans has determined that the highest priority for the
        IFMS/E-FIS project will be to meet Caltrans’ business objectives. Accordingly, the
        schedule and milestones may be modified to ensure that the project meets the Caltrans’
        business objectives and produces quality deliverables. However, established project
        management processes will be utilized to minimize changes to the project schedule and
        key milestones. When changes to the project milestones are necessary, they will be
        approved by the project Steering Committee as defined in the project's schedule update
        process (referred to in Section 4.2 of this SPR). Significant changes to the project
        schedule will be made in accordance with Office of the Chief Information Officer

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        requirements (including those for Special Project Reports). Refer to Section 4.4 for a
        related discussion of the project priorities.
        The FSR assumed that all vendor contracts and procurements would be accomplished
        within planned timelines (as stated in the FSR). However, due to delays in the
        procurement processes for the Independent Project Oversight Consultant (IPOC), the
        Independent Verification and Validation vendor (IV&V), and the Integration Partner, the
        project has experienced delays in obtaining these consultant services. The delays for
        procuring the IV&V and IPOC have not significantly impacted the overall project
        schedule and deliverables. However, delays procuring the Integration Partner have
        impacted the IFMS/E-FIS implementation date. As a result of the delays in procuring the
        Integration Partner, the project schedule has been revised from an implementation date
        of July 1, 2009 to December 7, 2009. These delays are discussed in Section 3.4.1 of
        this SPR.

4.5.3      Project Phasing

The IFMS/E-FIS project FSR included project phasing which reflected the typical system
development and implementation methodology for a COTS ERP package. As required by the
IFMS/E-FIS RFP, CGI included in its proposal a draft project schedule which reflected the
specific system development and implementation methodology for its proposed solution,
modified as appropriate to meet the IFMS/E-FIS project’s timelines, resources, and
requirements as expressed in the RFP.

The IFMS/E-FIS project team will modify its existing project schedule (which is based on the
schedule and phases in the FSR) to incorporate CGI’s project schedule. A listing of the phases
in the CGI project schedule and a summary of the tasks within the phases is presented in
Table 7.


Table 7.    IFMS/E-FIS Project Phases


    Phase           Description/Deliverables
                     Initiate and organize the project
                     Update and finalize the project management plan
                     Develop and finalize additional plans (not included in the project management
                     plan)
  Phase 1:                Business Process Reengineering Plan
   Project                Lifecycle Test Plan
 Management               Organizational Change Leadership and Communication Plan
                          Training Plan
                     Execute project plans and processes
                     Manage project operations




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    Phase           Description/Deliverables
                     Analyze “As-Is” and define “To-Be” business processes (including Chart of
                     Accounts)
                     Define EAI business model and technical architecture
                     Install and configure ERP prototype
                     Conduct data warehouse / business intelligence analysis, design data warehouse
   Phase 2:
                     Develop System Architecture Design Document
   Envision
                     Analyze and validate requirements
                     Complete Additional Required Plans (based on Phase 2 work products):
                         Data Conversion Plan
                         Requirements Management Plan
                         Implementation and Transition Plan
                     Establish operational environments:
                         Development
                         Integrated system test
                         Acceptance test
                         Performance test
   Phase 3:              Data conversion
    Build                Backup and recovery
                     Complete IFMS/E-FIS detailed design
                     Develop and test IFMS/E-FIS application components
                     Train users
                     Train technical and support staff

                     Set up security and workflow
   Phase 4:          Prepare for production cutover
   Achieve           Conduct production cutover readiness assessment
                     Perform production cutover (implementation)
                     Confirm production cutover
                     Transition production deliverables
   Phase 5:
                     Complete acceptance period tasks
  Production
                         Conduct backup and recovery verification test
  Acceptance
                         Correct solution deliverables (defects, etc.)
                     Final acceptance




4.5.4    Roles and Responsibilities
Roles and responsibilities have not changed since the approval of the FSR.

4.5.5    Project Schedule

The project schedule for the IFMS/E-FIS project is attached as a separate document.




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4.6    Project Monitoring
Since the approval of the FSR, Caltrans has established a Project Schedule Update Process,
Budget Management Process, Scope Change Control Process, and Communications Plan to
monitor and control the project. Together, these plans and processes (which have been
previously referenced in Section 4.2 Project Management Methodology) establish Caltrans’
project monitoring approach for the IFMS/E-FIS project. In addition to the existing processes
established by Caltrans, the project will integrate as appropriate any project monitoring
processes suggested by the Integration Partner, as detailed in the Integration Partner’s Project
Management Plan described in Section 4.2 of this document.

4.7    Project Quality
Caltrans has established a Project Quality Management Plan which features the use of an
Independent Validation and Verification (IV&V) vendor for project quality.

4.8    Change Management
The Integration Partner will be required to submit a change management plan to Caltrans once
the integration partner begins work on the project. The plan will leverage proven change
management techniques specific to the implementation of the selected software. Caltrans will
work closely with the integration partner to implement the plan and has established dedicated
project resources for change management.

4.9    Authorization Required
As required by the DOF approval of the IFMS FSR dated January 11, 2006, the SPR is required
to be submitted to OCIO for approval upon completion of the bid process but before contract
award.




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5.0 Updated Risk Management Plan
There have been no material changes to the Risk Management plan since the Feasibility Study
Report.




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6.0 Updated Economic Analysis Worksheets
The IFMS/E-FIS project’s EAW’s have been updated to reflect the proposed project changes. The original EAW, submitted with the
FSR, is included to provide a baseline for the updates. Both of these documents are included as separately attached Excel files.
This section also includes the revised EAW, Economic Analysis Summary Worksheet, and the updated Project Funding Plan. The
Project Funding Plan indicates that Caltrans will fund project activities through a combination of staff redirects, and BCP and Finance
Letter funding for fiscal years 06/07, 07/08, 08/09, and 09/10.

As stated in Section 3.4.2, there are 9 reasons for the change in IFMS/E-FIS project costs. Below is a detailed breakdown of the
changes in costs between the FSR and this SPR. The differences are explained in the Discussion Items following this table:
Table 8.   Economic Analysis – Change in Costs

                                                          Discussion           FSR                            SPR                      DIFFERENCE
                                                            Item       PYs            Amts           PYs             Amts           PYs             Amts
            One-Time IT Project Costs
             Staff (Salaries & Benefits)                       1        84.0           7,137,431       87.7           7,917,070           3.7          779,640
             Hardware Purchase                                                                 0                              0                              0
             Software Purchase/License/Training                2                       3,480,000                      3,352,630                      (127,370)
             Telecommunications                                                                0                              0                              0
             TOTAL Contract Services                           3                      10,595,200                     15,176,250                      4,581,050
             Data Center Services                              4                               0                         14,510                         14,510
             Procure Assistance/DGS/IV&V/Proj Oversight        5                       2,324,266                      2,479,730                        155,464
             Other (Travel)                                    6                          90,000                        360,677                        270,677
            Total One-time IT Costs                                     84.0         23,626,897       87.7          29,300,867            3.7       5,673,971
            Continuing IT Project Costs
             Staff (Salaries & Benefits)                       7        32.0           2,720,000       21.3           1,941,333        (10.7)        (778,667)
             Hardware Lease/Maintenance                                                        0                              0                              0
             Software Maintenance/Licenses                     8                       1,183,200                      1,796,075                        612,875
             Telecommunications                                                                0                              0                              0
             Contract Services                                                                 0                              0                              0
             Data Center Services                              9                       3,807,627                      6,773,643                      2,966,016
             Agency Facilities                                                                 0                              0                              0
             Other - Training                                                            591,600                        591,600                              0
            Total Continuing IT Costs                                   32.0          8,302,427       21.3          11,102,651        (10.7)        2,800,224
            Total Project Costs                                                      31,929,324                     40,403,519                      8,474,195


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           Discussion of Changes In Costs

           Item 1 –    One-Time IT Project Costs; Staff Salaries and Benefits. This line item is higher than estimated in the original
                       FSR, with an increase of 3.7 PYs and $779,640. The Finance Letter related to this SPR includes the extension
                       of 12 limited-term positions from 2 years to 3 years. The positions were set to expire February 2009 but due to
                       project delays, staff levels need to be extended until February 2010. Position management was exercised in
                       FY 2006/07 and 2007/08. Procurement delays resulted in program subject matter experts not being redirected
                       to the project as early as originally estimated in the FSR. The net increase in project staff costs is 3.7 PYs and
                       $779,640. In addition to the increased staff needs, the estimated salary rate applied to PYs was updated for
                       the SPR. The FSR staff salary rate assumption was $85,000 per PY; the updated rate applied to the SPR (for
                       FY 07/08 and beyond) is $91,000 to factor in COLA increases effective during this time period.

           Item 2 –    One-Time IT Project Costs – Software Purchase/License/Training. The bid amount for this item was lower than
                       estimated in the FSR.

           Item 3 –    One-Time IT Project Costs; Total Contract Services. This line item increased because the contract amount
                       proposed by CGI exceeds the original estimate documented in the FSR. The original estimate was
                       $10,595,200, but the successful bid was $15,176,250. During the development of the RFP, Caltrans
                       determined the need for, and added the requirement of, a four month production acceptance period which
                       increases the cost of services from the vendor. The cost of this longer acceptance period was not estimated in
                       the FSR. Also, further analysis revealed that the vendor will be required to design more system interfaces and
                       assist in more data conversion than estimated when the FSR was developed.

           Item 4 –    One-Time IT Project Costs; Data Center Services. This cost item is for DTS hardware setup costs not included
                       in the original FSR.

           Item 5 –    One-Time IT Project Costs; Procure Assistance/DGS/IV&V/Proj Oversight. This line item increased by
                       $155,464. Revising the project completion date to April 2010 required the completion dates for the IPOC,
                       IV&V and Project Management contracts to be revised from June 30, 2009 to March 20, 2010. The initial cost
                       of the eight month extension is estimated at $341,950. However, initial contract amounts negotiated for these
                       services are lower than estimated in the FSR. Therefore, the net increase to this line item is only $155,464.




IMFS/E-FIS Final                                                                                              Project Number 2660-416
January 11, 2008                                                                                                             Page: 36
Department of Transportation                                                               Integrated Financial Management System SPR


           Item 6 –    One-Time IT Project Costs; Other (Travel). This cost item was not included beyond FY06/07 in the original
                       FSR. The SPR was written to reflect Operating Expense funding stated in the BCP and Finance Letter through
                       FY09/10.

           Item 7 –    Continuing IT Project Costs; Staff Salaries and Benefits. This line item is lower than estimated in the original
                       FSR. The PY figure for FY 09/10 is lower because of the change in project implementation date. The FSR
                       anticipated continuing IT support of 16 PYs per fiscal year would start at the beginning of the fiscal year.
                       However, our new schedule anticipates continuing IT support will start with only 4 months left in the fiscal year,
                       resulting in a prorated PY figure of 5.3 PYs for the remainder of FY09/10.

           Item 8 –    Continuing IT Project Costs – Software Purchase/License/Training. The actual bid amount for this item was
                       higher than estimated in the FSR.


           Item 9 –    Continuing IT Project Costs – Data Center Services. The line item was higher than estimated in the FSR,
                       primarily because required data storage costs were inadvertently omitted from the EAW Proposed Solution
                       worksheet when the FSR was prepared, although this requirement was addressed in the Assumptions in
                       section 6 of the FSR.




IMFS/E-FIS Final                                                                                               Project Number 2660-416
January 11, 2008                                                                                                              Page: 37

				
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