Report 2014-116 Recommendation 28 Responses

Report 2014-116: California Department of Consumer Affairs' BreEZe System: Inadequate Planning and Oversight Led to Implementation at Far Fewer Regulatory Entities at a Significantly Higher Cost (Release Date: February 2015)

Recommendation #28 To: Technology, California Department of

To ensure that contracting departments comply with requirements, CalTech should periodically monitor the status of contracts and enforce adherence to procurement requirements. For example, CalTech should ensure that contracting departments forward all change requests to it and that it conducts reviews of all change requests to determine whether the changes exceed the scope of the respective contract.

Annual Follow-Up Agency Response From November 2017

CDT has updated the SPR preparation instructions to reflect potential alternatives if cost-benefit analysis is incomplete.

  • Completion Date: March 2017

California State Auditor's Assessment of Annual Follow-Up Status: Pending

In following up with CalTech regarding its implementation of this recommendation, we learned that it has not yet developed procedures to ensure that contracting departments forward all change requests to it and that it conducts reviews of all change requests to determine whether the changes exceed the scope of the respective contract. Until it develops such procedures, we will report this recommendation as pending.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2016

ITPOD will examine change requests in the normal course of the oversight activity and if any are identified as exceeding the scope and intent of the current contract, ITPOD will raise that issue with the department and will bring the issue to the attention of the State Technology and Procurement Division (STPD), as needed. STPD will conduct a more detailed review to make the final determination whether or not the changes exceed the scope of the respective contract. Procedural documentation of these new oversight activities are expected to be completed by December 2016.

  • Estimated Completion Date: December 2016

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


1-Year Agency Response

It is important to recognize that change requests are often necessary and proper. ITPOD uses SIMM 45, Appendix F: Project Oversight Review Checklist to evaluate the conditions which necessitate changes to the contract as well as the processes for ensuring adequate decision making at the appropriate level for issuing a change request. This includes verifying that key specification documents (e.g. contracts, requirement specifications and/or contract deliverables) and software products are under formal configuration control, with items to be controlled and specific staff roles and responsibilities for configuration management identified in a configuration management plan. This also includes verification that a formal governance process is in place, which necessitates the documentation of the reasons for approval of change requests.

ITPOD will examine change requests in the normal course of the oversight activity and if any are identified as exceeding the scope and intent of the current contract, ITPOD will raise that issue with the department and will bring the issue to the attention of the State Technology and Procurement Division (STPD) as needed. STPD will conduct a more detailed review to make the final determination whether or not the changes exceed the scope of the respective contract.

  • Completion Date: January 2016
  • Response Date: February 2016

California State Auditor's Assessment of 1-Year Status: Pending

In following up with CalTech regarding its implementation of this recommendation, we learned that it has not yet developed procedures to ensure that contracting departments forward all change requests to it and that it conducts reviews of all change requests to determine whether the changes exceed the scope of the respective contract. Until it develops such procedures, we will report this recommendation as pending.


6-Month Agency Response

The Department's Procurement division will continue to work with ITPOD to identify if a Change Request has deviated outside a procurement requirement. The division will then be notified to conduct a more detailed review to determine if the changes exceed the scope of the respective contract.

We expect to be able to report progress for the next scheduled update.

  • Estimated Completion Date: TBD
  • Response Date: August 2015

California State Auditor's Assessment of 6-Month Status: Pending


60-Day Agency Response

To address the audit recommendation that CalTech review all contract requests, STPD has formally requested staff augmentation. We will be able to provide an update on the progress of this additional resource request in our 6-month status update report.

  • Estimated Completion Date: 1/31/2016
  • Response Date: May 2015

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2014-116

Agency responses received are posted verbatim.


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