State Funding

For state funded projects, the approval and funding activities span the Initiation and Planning phases of the Project Management Life Cycle. The mechanism used for approving information technology projects is the Feasibility Study Report (FSR). The FSR establishes the business case for investment of state resources in the project. The FSR must be approved by the California Technology Agency (TA) before proceeding with the project beyond the feasibility stage. 

A Budget Change Proposal (BCP) must be approved for projects that require a change in current budget year spending authority. A BCP must be submitted to Department of Finance (DOF) based upon the published guidelines and due dates. Only when the FSR and associated required funding authorization documents (BCP) are approved can the project commence utilizing state resources and funds beyond the feasibility stage. CDSS Projects Only - utilize Supplementary Premise Information (SPI) document in lieu of BCP.  Refer to OSI Intranet for details.  

In conjunction with the FSR and BCP, projects must prepare an Information Technology Procurement Plan (ITPP) to define their acquisition strategy for goods and services. The ITPP must be approved by the Department of General Services (DGS) prior to the release of solicitation documents. See the Acquisition Life Cycle for details.   

Once all control agency documents (FSR, BCP, ITPP) have been approved, the project may begin developing solicitation documents for acquiring goods and services. The solicitation documents should clearly document the State’s requirements for the project based upon the approved FSR and will be used to request proposals from the vendor community. The solicitation documents must be completed according to specific state guidelines and must be submitted and approved by DGS before it is released to potential bidders.  

Projects should be aware of the reporting requirements associated with Control Section 11.00 and 11.10 of the 2006 Budget Act. Section 11 requires the Legislature to be informed of contracts associated with information technology projects or statewide software licensing agreements that will continue beyond the current budget year and may necessitate budget augmentations in future years. This gives the Legislature the opportunity to review the future funding obligations before they are made. 

During the Execution phase of the project, if it is determined that the project requirements cannot be adequately satisfied by the strategy described in the approved FSR or if there is a project change in cost, benefits or schedule of ten percent or more, a Special Project Report (SPR) should  be prepared and submitted to DOF (See SAM Section 4819.36). No expenditure of funds, or use of staff resources, should be made to implement the change until approval has been received from OCIO, or the agency director if the change is within the limitations of the agency's delegated authority.

During the course of the project, if the project extends beyond the current budget year’s spending authority, the project must develop a Budget Change Proposal (BCP) to be submitted to DOF within the time frames specified in the annual budget letters.  
  Key Tasks
  • Feasibility Study Report (FSR) - Approval received from TA
  • Budget Change Proposal (BCP) - Approval received from DOF, if required
  •  Information Technology Procurement Plan (ITPP) – Approval received from DGS, if required. (See Acquisition Life Cycle)
  • Solicitation Documents – Approval received from DGS, as needed (See Acquisition Life Cycle)
  • Section 11 Report – Legislature informed, as necessary
  • Annual Budget Change Proposal (BCP) – Approval received from DOF, as needed
  • Lessons Learned

 

  Next Steps
 Documents
OSI Budget Language Definitions
Key Budget Schedules
Lessons Learned
Information Technology Procurement Plan (ITPP)
  
 Web Based Training
Lessons Learned Module
  
 Links
FSR Instructions and Template
(SIMM Section 20)
Information Security and Privacy Components in Feasibility Study Reports
SPR Instructions and Template
(SIMM Section 30)
BCP Template
Writing a Good BCP
Budget Letter 08-06 (OCIO Project Approval Authority)
Budget Letter 06-17 (Control Section 11)
  
 Roles
Project Director
Project Manager
Financial Analyst
Administrative Manager
Project Sponsor
  

 

 

 

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