Key Questions

Is the project on track to satisfy the customer's business objectives?Uncertain

Is the project on track to achieve the objectives in the approved timeframe?No

Is the project on track to achieve the objectives within the approved budget?No

Project Overall Health

Comments

Yellow

During the December 2025 assessment period, the project’s overall health improved to yellow based on observations and analysis of the project’s governance, time management, cost/contract, scope, resources, quality, and risk focus areas. Phase 1 OL: The team finished incorporating OL changes required by the new DL functionality. Phase 2 VR: The current assessment has improved to yellow due to progress on the large challenges. The DMV terminated the System Integrator (SI) contract on October 1, 2025, and the Settlement Agreement was signed on December 31, 2025. DMV has replanned the remaining effort. Phase 3 DL: The DMV submitted the California State Transportation Agency (CalSTA)-approved Special Project Report (SPR) #2 to the California Department of Technology (CDT) on December 15, 2025, and CDT responded with comments on December 23, 2025. The revision includes the Go-Forward plan for VR. The SPR #2 approval should align with the budget cycle.

Focus Area/Rating	Comments
Governance Green	During the December 2025 assessment period, the project’s Governance Management health improved to green, based on observations and analysis of the project’s governance processes. • VR replanning is complete. • The CDT recommended that the project complete a focused lessons learned assessment related to the System Integrator (SI) contract termination. • Change control and Risks/Issues meetings are occurring regularly. • The Transitional Architecture Pilot go-live happened on November 17, 2025; all critical defects were resolved in December. • Challenges remain with driving workstreams to completion.
Time Management Red	During the December 2025 assessment period, the project’s Time/Schedule Management health remained red based on observations and analysis of the Project Schedule Milestones and Deliverables. • The Executive Steering Committee (ESC) formally approved a new go-live date in September 2026, which will be rebaselined when SPR #2 is approved. • The Project team continued to add dependencies back into the schedule and decompose the work breakdown structure. • Detailed schedules for several workstreams were under review at the month’s end. • Triage and design of defects/gaps is behind plan. • Moving enhancements and defects to the development teams has taken longer than expected, and there were unexpected holiday delays. ​
Cost & Contract Management Yellow	During the December 2025 assessment period, the project’s Cost & Contract Management health is yellow, based on observations and analysis of the project’s costs and contracts • The Settlement Agreement with the former SI was signed on December 31, 2025, via a third amendment to the contract. • The project has now resolved the final costs for the former SI services, reducing risk. • The SPR #2 with the go-forward plan for VR needs to be approved by the CDT before new contracts can be awarded.
Scope Management Yellow	During the December 2025 assessment period, the project’s Scope Management health is yellow, based on observations and analysis of the project’s scope and related processes. • The revised change control process has been socialized, and the Change Control Board (CCB) met regularly in December. • Scope is now under change control. The change control process will be utilized going forward. • Change control activity is trending up with more gaps being identified. • The Requirement Traceability Matrix (RTM) reports are outdated, incomplete, or inaccurate.
Resources Red	During the December 2025 assessment period, the project’s Resources health remains red. • RFOs for project continuation have been issued. Approximately 120 new consultants will be onboarded once SPR #2 is approved and the new contracts are awarded. • Resource loading remains behind plan. • State resources continue to be constrained for many workstreams.
Quality Yellow	During the December 2025 assessment period, the project’s Quality Management health is yellow based on observations and analysis of Quality metrics and performance. CDT observes that quality is being monitored and that metrics are being reported. • Pre-User Acceptance Testing (Pre-UAT) completed. • Test Automation proof of concept completed. CDT recommends an increase to the percentage of Automated Regression test cases.
Risk And Issues Yellow	During the December 2025 assessment period, the project’s Risk and Issue health is yellow. • The Risks, Action, Issues, Decisions (RAID) meeting series restarted, and meetings are being held regularly. • DMV will use Time and Materials (T&M) contracts for the VR Go-forward plan, which have a risk of increasing cost. • Until SPR #2 is approved, contracts awarded, new resources onboarded and trained, there remains a large risk of a lack of resources to accomplish the plan. • CDT’s independent observations of the highest risks impacting the project are: o Workstream scope development delays and scope creep o Resource funding and ramp up o Code quality issues o External dependencies such as business partners o Technical cutover data challenges o Phase 3 DL funding, schedule, and cost.
Transition Readiness Yellow	During the December 2025 assessment period, the project’s Transition Readiness health is yellow based on observations and analysis of the activities performed and plans for VR cutover. • Planned timelines for conversion cutover remain longer than desired. • Knowledge Transfer with the prior SI will restart in January. • The team reviewed former readiness documents and is putting together key items for the new readiness plan.
Conditions For Approval Green	The CDT Project Approvals and Oversight (PAO) team observed that the DXP Team previously completed all three approval conditions for DXP Phase 1 – OL. With the SPR #1 approval, two new Conditions for Approval of DXP Phase 2 - VR, CC/IM were required by CDT. Both conditions have been met.
Corrective Action Green	The CDT has not issued corrective actions for the project.

• Special Project Report 1 (pdf)
• Stage 4 Project Readiness and Approval Phase 2 (pdf)
• Stage 4 Project Readiness and Approval (pdf)
• Stage 3 Solution Analysis (pdf)
• Stage 3 Solution Analysis (pdf)
• Stage 3 Solution Analysis (pdf)
• Stage 3 Part B Solution Development (pdf)
• Stage 3 Part A Solution Development (pdf)
• Stage 2 Alternative Analysis (pdf)
• Stage 1 Business Analysis (pdf)