Report 2015-117 Recommendation 4 Responses

Report 2015-117: California Department of General Services' Real Estate Services Division: To Better Serve Its Client Agencies, It Needs to Track and Analyze Project Data and Improve Its Management Practices (Release Date: March 2016)

Recommendation #4 To: General Services, Department of

To ensure long-term efficient and effective delivery of projects, the division, in its planned implementation of its new project management system in July 2017, should, at least annually, use the centrally tracked data to identify common themes in the causes for project delays and cost overages and develop solutions to address these issues. Further, it should report the results of its review to General Services' executive management.

Annual Follow-Up Agency Response From October 2022

Please see Recommendation #2 for the status of the implementation of the project management software.

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

Annual Follow-Up Agency Response From October 2021

Please see Recommendation #2 for the status of the implementation of the project management software as well as the 2021 Annual Response for Recommendation #3.

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

Annual Follow-Up Agency Response From October 2020

Please see Recommendation #2 for the status of the implementation of the project management software. Aconex configuration will include the ability to submit an "issue/trends" specifically for each project. These issues or trends can be analyzed for common items and lessons learned will be applied to current and future projects.

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

Annual Follow-Up Agency Response From October 2019

Please see Recommendation #2 for the status of the implementation of the project management software. All new projects will include an "issue/trends log" specifically for the purposes of tracking projects and ensuring that common issues are addressed for current and future projects. As data is entered and trends identified, they will be analyzed and shared with the Deputy Director and Director.

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

Annual Follow-Up Agency Response From October 2018

Oracle Prime implementation is underway. RESD has worked with Oracle and FI$Cal staff for the past 6 months to develop and test functionality. User acceptance testing is complete, train the trainer work has been completed, and training for staff has been scheduled. Additionally, the interface between Prime and PeopleSoft (FI$Cal) has been completed so that project budgets/milestones can be pushed into FI$Cal and expenditure data can be pushed into Prime. All project data is being loaded into the system as well from FI$Cal.

Prime was developed with an "issue/trends log" specifically for the purposes of tracking projects and ensuring that common issues are addressed for current and future projects.

As of June 2018, all workload assignments are made collectively by management and incoming work is centrally tracked. Supervisory staff now meet monthly with rank and file to discuss project schedules and budgets to ensure active management.

For projects designed in-house, managers meet weekly with staff and then managers meet weekly to discuss staff reports. An Architectural and Engineering (A&E) Schedule document compiles the data and tracks project status.

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

Annual Follow-Up Agency Response From November 2017

RESD is in the process of implementing a new project management system that will allow management and staff to more effectively plan, manage, and control projects. The new system is part of FI$Cal and will include provisions that allow project management to centrally track data and identify common themes for project delays and cost overages. RESD will also ensure that DGS executive management are kept informed of significant project issues, including the results of its analysis of common themes impacting project timeliness and cost.

While PMDB works on the implementation of Oracle Prime, the branch has implemented measures to identify and remedy project delays/overages. These measures include:

1. PMDB formed a high level workgroup consisting of its largest clients (CHP, DDS, DSH, CalFire, OES, and DMV). The group discusses existing project issues on a bi-monthly basis.

2. PMDB has identified contracting durations (design and construction) as a significant reason for project delays (since project costs are often fixed, delays in contracting triggers escalation which causes overages). PMDB is taking significant steps to eliminate contracting delays, including transitioning design contracting fully to PMDB, establishing a more streamlined method for contracting under GC 14838.5, developing a process to utilize PCC 10122(d) for highly specialized projects, and working with DGS contracts to establish a solicitation schedule/expectations for public works contracts.

3. PMDB has increased the number of supervisory positions within the project management sections and begun divesting existing supervisors of their projects to focus on supervision. This has allowed the branch to institute mandatory monthly project meetings between supervisors and their staff to review cost, scope, and schedule for all projects. These meetings, coupled with the monthly client meetings on their portfolio of projects, helps ensure that project issues/trends are addressed early.

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

1-Year Agency Response

RESD is in the process of implementing a new project management system that will allow management and staff to more effectively plan, manage, and control projects. The new system (Primavera) is part of FI$Cal and will include provisions that allow project management to centrally track data and identify common themes for project delays and cost overages. RESD will also ensure that DGS executive management are kept informed of significant project issues, including the results of its analysis of common themes impacting project timeliness and cost.

In order to expedite the implementation of the project management system, RESD's Project Management and Development Branch (PMDB) hired a consultant (Loadspring). PMDB obtained access to 70 licenses of Primavera and had Loadspring configure the system for the branch's use in phases. As of January 2017, PMDB has launched the first of two roll-outs of Primavera - six months ahead of the original schedule. The first roll-out involves the Primavera Contract Management (PCM) module, which PMDB will utilize to interact with contractors, manage budgets, track project issues and trends, etc. PMDB will conduct quarterly reviews and report the results annually to DGS' executive management. The second roll-out will involve P6, which is Primavera's resource and scheduling tool. PMDB will launch P6 in July 2017, with the rollout completed in September 2017. PMDB will utilize the system apart from FI$Cal until an interface is developed, which is anticipated to occur in July 2017.

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

6-Month Agency Response

RESD is in the process of implementing a new project management system that will allow management and staff to more effectively plan, manage, and control projects. The new system (Primavera) is part of FI$Cal and will include provisions that allow project management to centrally track data and identify common themes for project delays and cost overages. RESD will also ensure that DGS executive management are kept informed of significant project issues, including the results of its analysis of common themes impacting project timeliness and cost.

In order to expedite the implementation of the project management system, RESD's Project Management and Development Branch (PMDB) hired a consultant (Loadspring). DGS obtained access to 70 licenses of Primavera and is having Loadspring configure the system for the branch's use. At present, PMDB anticipates launching Primavera in January 2017 - six months ahead of schedule. PMDB will utilize the system apart from FI$CAL until an interface is developed, which is anticipated to occur in July 2017.

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

60-Day Agency Response

RESD plans to implement a new project management system that will allow management and staff to more effectively plan, manage, and control projects. The new system (Primavera) is part of FI$Cal and will include provisions that allow project management to centrally track data and identify common themes for project delays and cost overages. RESD will also ensure that DGS executive management are kept informed of significant project issues, including the results of its analysis of common themes impacting project timeliness and cost. Currently, FI$Cal has scheduled Primavera's statewide implementation for July 2017.

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

All Recommendations in 2015-117

Agency responses received are posted verbatim.