The Quality Assurance Team has published their 2023 annual report, including current trends in contracting, factors that lead to project complications, best practices, and in-depth data on QAT contracts. The report also highlights three successful projects from the Health and Human Services Commission, Texas Workforce Commission, and the Office of the Attorney General. See below for a summary of QAT observations and recommendations:
Trends
- Project Duration: Projects that have a shorter development schedule generally are more likely to meet both their estimated current cost and duration projections
- Timeframe and Procurement Method: Project schedule overrun is typical for large projects. The QAT has observed that agencies with large procurements are often delayed by several months during the acquisition phase. The timeline should consider the agency’s evaluation process and any required stakeholder or executive approval procedures for major purchases.
- The report also discusses common issues that can lead to problems in project execution stemming from planning, testing, and process issues.
Comparison of 2022 and 2023 Project Performance
- For projects reporting at least 30.0 percent completion as of November 2023, 30.1 percent were within their original estimated costs and durations, and 26.5 percent exceeded both cost and duration.
- For the projects reporting at least 30.0 percent completion as of November 2022, 42.0 percent were within their original estimated costs and durations, and 18.0 percent exceeded both cost and duration.
- Projects with durations of three years or less are becoming common, as IT often becomes obsolete after that period. Despite this trend for shorter durations, some large-scale systems could have a development duration of five years or more. The QAT has observed that these large-scale projects are most likely to exceed budget or fall behind schedule.
Spotlight on QAT Best Practices Recommendations for Agencies
- Divide large projects into smaller, more manageable projects with schedules of less than 28 months and budgets of less than $10.0 million. For large legacy-replacement projects, consider strategies to migrate the legacy system incrementally, using a phased approach by gradually replacing specific pieces of functionality with new applications and services.
- Consider leveraging DIR’s Shared Technology Services Program for project delivery needs related to cloud, application development, maintenance, security, and other technology solutions.
- Combine agile development with user-centered design to enable the development team continuously to iterate toward solving and meeting end users’ needs.
- Build IT systems using loosely coupled parts, connected by open and available application programming interface (API) to enable flexible, sustainable systems that meet users’ needs and cost less than traditional systems.
- Include security planning in the initiation phase of the project. For cloud services, agencies are now required to ensure engaged vendors have obtained TX-RAMP certification prior to contract execution. For more information, contact the DIR TX-RAMP team at tx-ramp@dir.texas.gov.
- Perform system categorization and determine the appropriate security control baselines for the information system based on confidentiality, integrity, and availability requirements.
- Consider agile procurement methodology.
- Assign a dedicated agency product owner to lead development efforts. Product ownership often is treated as “other duties as assigned,” but it should be considered a full-time job that involves stage planning with users and stakeholders and refining any backlog, among other duties.
Conclusions
- Although multiple factors contribute to a successful project, one key factor that automatically increases the risk of failure for major state technology projects is the project size.
- Other factors noted for project success are those that provide adequate time for procurement activities, aligning scope with approved budgets, ensuring cost and schedule estimates are accurate, and deferring new requirements until a later phase or until a new project can be initiated. The QAT will continue to collaborate with agencies and state leadership to execute effective project oversight projects.