Report 2016-132 All Recommendation Responses

Report 2016-132: Department of Water Resources: The Unexpected Complexity of the California WaterFix Project Has Resulted in Significant Cost Increases and Delays (Release Date: October 2017)

Recommendation for Legislative Action

To improve management of large and complex infrastructure projects, the Legislature should enact legislation requiring agencies to publicly report significant changes in the cost or schedule of such projects if they are expected to exceed their established budgets by 10 percent or schedules by 12 months.

Description of Legislative Action

Assembly Bill 2543 (Chapter 918, Statutes of 2018) requires each state agency or department authorized to undertake any infrastructure project costing $100 million or more to publicly post on its website any change in the cost or schedule of the project that would result in the project exceeding its established budget by 10 percent or more or being delayed by 12 months or longer. This statute requires the posted information to describe how much the project is expected to exceed its established budget or delay its construction schedule.

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

Description of Legislative Action

Assembly Bill 2543 (Eggman) would require each state agency or department authorized to undertake any infrastructure project costing $1 million or more to publicly post on its website any change in the cost or schedule of the project that would result in the project exceeding its established budget by 10 percent or more or being delayed by 12 months or longer. The bill would require the posted information to describe how much the project is expected to exceed its established budget or delay its construction schedule.

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

Recommendation #2 To: Water Resources, Department of

To better manage large infrastructure projects, DWR should develop and implement a project-reporting policy requiring its management staff to document and justify decisions to proceed with such projects if they are expected to exceed their established budgets by 10 percent or schedules by 12 months. DWR should make these documented decisions and justifications publicly available and submit them to the Resources Agency for review and approval.

1-Year Agency Response

The Governor's recent approval of AB 2543 essentially codifies this recommendation of the Auditor at Government Code section 11093.7. The new statute requires state departments undertaking an infrastructure project costing $100,000,000 or more to publicly post on its Internet Web site any change in the cost or schedule of the project that would result in the project exceeding its established budget by 10 percent or more or in delaying its completion by 12 months or longer. The posted information shall describe how much the project is expected to exceed its established budget or delay its construction schedule.

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

We agree that DWR correctly characterized the requirements of AB 2543. While the new law does not address the Resources Agency review/approval and documentation portions of our recommendation, we believe it appropriately captures the spirit of our recommendation, which was intended to increase transparency and ensure agency is aware of major overruns. Accordingly, we've marked this recommendation as "resolved" instead of "fully implemented.

6-Month Agency Response

DWR continuously strives to improve its transparency, project management, monitoring, and usable metrics related to large infrastructure projects. To this end, DWR will evaluate its existing policies and procedures related to increases in project cost and delays in project schedules. DWR will then develop or amend policies and procedures if needed to include a mechanism for reporting material cost and time increases to the public. DWR will update its progress on this issue at the next periodic report to the State Auditor.

California State Auditor's Assessment of 6-Month Status: No Action Taken

60-Day Agency Response

This recommendation does not make a distinction between the planning phase of a project and the design and construction phase. DWR believes this is an important distinction, as evidenced in the Report's findings for the planning phase of the WaterFix. The recommendation presupposes that an extension of time during a project planning phase is something that has a negative consequence. This recommendation has limited applicability here, since decisions regarding this project were made in response to stakeholder input and public comments to increase the range and scope to better meet the needs of the state. The planning process for large infrastructure projects is complex and subject to changing requirements and scope from a variety of sources including regulating agencies, project proponents, stakeholders, and the public at large. As seen with WaterFix, this results in increases in scope and schedules that are beyond the control of DWR. Limiting the Department's ability to be responsive to stakeholder input during complex "planning" efforts would be counterproductive.

California State Auditor's Assessment of 60-Day Status: Will Not Implement

Our recommendation does not presuppose that time delays have a negative consequence, rather that they should be thoroughly justified and vetted. The recommendation does not limit DWR's ability to be responsive to stakeholder input, but would require DWR to consciously and transparently consider that input before making decisions that affect project cost and schedule, whether during planning or other phases of the project.

Recommendation #3 To: Water Resources, Department of

To ensure it makes appropriate use of its growing surplus revenue balance, DWR should develop a detailed plan describing how it intends to use these funds.

1-Year Agency Response

DWR has developed and implemented its new Water Resources Engineering Memorandum 74 (WREM 74). WREM 74 is a detailed policy that ensures the continued appropriate use and reporting of Water Code section 12937(b)(4) funds ("(b)(4) funds") as recommended by the State Auditor. The Director implemented this new procedure with her memo to all users on April 4, 2018. A copy of WREM 74 is attached to these responses.

WREM 74 requires proposals for use of (b)(4) funds to follow the same process used to initiate, authorize, administer, and manage programs, projects or tasks funded by the State Water Project. The DWR Director must approve requests for use of these funds prior to the commencement of work.

DWR's standardized process for decision making on State Water Project activities requires substantial justifying documentation. The scope, schedule, objective, assumptions, constraints and many other details of a proposal for use of (b)(4) funds must follow this process, described in a separate DWR procedure, WREM 65a, which is also attached to these responses.

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

We reviewed WREM 74 and found that it requires staff to report the surplus revenue balance to executive management on a monthly basis, and it outlines a process for deciding how DWR will use its surplus revenue balance.

6-Month Agency Response

The Department has prepared Water Resources Engineering Memorandum (WREM) 74 which describes the fund's intended use and approval processes to be followed for a proposed new activity supported by Water Code section 12937(b)(4) funds. The proponent of a new activity proposed to be funded by (b)(4) prepares a charter explaining the objective of the new project, the project purpose and background, project scope, and other details required as shown in the attached "DWR SWP Project Initiation and Management, Project Charter (DWR 9670) Instructions" document. This proposed charter will be routed through the project proponent's chain of command for approval, and will also require the approval of DWR Executive Managers including the State Water Project Deputy Director and DWR's Director.

Once approved, the State Water Project Analysis Office will provide monthly reporting on all (b)(4) projects, including the new project, in the Projected Priority 4 Balance Report. This report will be provided to the Director, Chief Deputy Director and SWP Deputy Director at least quarterly. DWR plans that this process will be effective during April, 2018.

Will Implement.

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

60-Day Agency Response

DWR has already defined a process for use of expenditure of (b)(4) funds in December 2016. DWR is working on developing and implementing a business process to formalize comprehensive procedures for proposing, approving, and tracking projected Priority 4 revenues and associated uses with implementation to start by the end of the first quarter of 2018. We will have an outline for the detailed business process in place by the end of December 2017.

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

Recommendation #4 To: Water Resources, Department of

To fully comply with state contracting law, DWR should ensure that it competitively selects architectural and engineering consultants based on demonstrated competence and professional qualifications. In addition, DWR should document in the contract file its evaluation of the competence and professional qualifications of all contractors and any subcontractors that are added to the contract subsequent to the competitive selection process.

Annual Follow-Up Agency Response From October 2019

On February 1, 2019, DWR fully implemented two new procedures to address subcontractor and personnel changes to A&E contracts. These new procedures include: Adding a New Subcontractor, and Personnel Changes by Letter. Prior to the implementation of the procedures, DWR provided extensive training to contract managers via nine training sessions held during January 2019. The new procedures were also distributed via email and posted on DWR's intranet.

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

We reviewed the new procedures and found that, if implemented as documented, they would fully implement our recommendation.

1-Year Agency Response

DWR is in the process of implementing a new procedure to add subsequent subcontractors to an A&E contract pursuant to the audit recommendation and in line with DWR's continuous improvement process. As a result of the significant increase in workload due to the 2017 storm events, completion of the draft procedure took longer than anticipated. The proposed procedure will make significant changes to the process when DWR adds subcontractors or approves contract personnel changes. The draft procedure is pending review for approval.

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

Although DWR never documented its evaluation of Hallmark's competence or qualifications to provide program management services, services which must be performed by a licensed engineer or general contractor, its contract with Hallmark expired in July 2018.

6-Month Agency Response

Although the Department disagrees with the Auditor's view, DWR has complied with the Auditor's recommendations. Enhanced procedures for documenting DWR's evaluation of Architectural and Engineering contractors and subsequent subcontractors have been developed and will be implemented in April, 2018. For prime contracts, DWR will retain evaluation scores from the competitive selection process and other contract documents in the contract file. DWR has also identified a procedure to document the competence and qualifications of subcontractors added to the contract after the selection process, and will also maintain the subcontractor evaluation scores in the contract file.

Will Implement.

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

We disagree that DWR has complied with our recommendation. DWR has developed procedures for documenting its evaluation of architectural and engineering contractors and for documenting the competence and qualifications of subcontractors. However, DWR has not documented its evaluation of Hallmark's competence or qualifications to provide program management services, services which must be performed by a licensed engineer or general contractor. Nevertheless, DWR has continued to extend the duration of its program management contract with Hallmark.

60-Day Agency Response

The Department will continue to comply with state contracting law including the processes outlined above. Enhanced procedures for documenting DWR's evaluation of Architectural and Engineering contractors and subcontractors have been developed and are in the process of final internal approval.

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

As we stated in our report, we do not believe DWR followed state law when it replaced the program manager for the conservation and conveyance program.

Recommendation #5 To: Water Resources, Department of

To ensure that only qualified subcontractors are added to contracts after the initial award is made, DWR should make sure that contractors select their own subcontractors and that DWR subsequently approves the selection after it verifies their qualifications.

Annual Follow-Up Agency Response From October 2019

DWR's position remains unchanged; DWR will not be implementing this recommendation. As shown in our response to Recommendation 4, above, DWR has developed procedures to ensure only the most qualified subcontractors are selected.

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

The procedures DWR developed for adding a new subcontractor require DWR to request potential new subcontractors from the prime contractor. We believe this addresses our recommendation by requiring the prime contractor, rather than DWR, to identify and propose the new subcontractors for DWR's approval upon verification of the proposed subcontractors' qualifications.

1-Year Agency Response

DWR's position remains unchanged. As shown in our response to Recommendation 4, above, DWR is developing procedures to ensure only the most qualified subcontractors are selected.

California State Auditor's Assessment of 1-Year Status: Will Not Implement

We continue to disagree with DWR's position. To reduce the risk of DWR directing contractors to select particular subcontractors, DWR should require its contractors to select the most highly qualified subcontractor, and DWR should then verify the subcontractor's qualifications before it approves the selection.

6-Month Agency Response

It continues to be DWR's position that the Department must have the ability, when necessary, to work with a contractor to ensure the most highly qualified subcontractor is chosen to accomplish the contract's specified tasks. As shown in our response to Recommendation 4, above, DWR has developed procedures to ensure only the most qualified subcontractors are selected. We feel it is in the State's best interest for the process to remain as shown in this updated procedure. Will not implement.

California State Auditor's Assessment of 6-Month Status: Will Not Implement

We disagree with DWR's position. To reduce the risk of DWR directing contractors to select particular subcontractors, DWR should require its contractors to select the most highly qualified subcontractor, and DWR should then verify the subcontractor's qualifications before it approves the selection.

60-Day Agency Response

It is essential that DWR work with a contractor to identify the specific tasks for which a subcontractor will be required. Additionally, it is important to convey to the contractor the expertise and qualifications necessary of the subcontractor in order to ensure the most highly qualified subcontractor is chosen to accomplish the specified tasks. The Report's Recommendation, above, isolates DWR from such consultation. Without these communications, time is unnecessarily expended while the contractor attempts to obtain a suitable sub-contractor without the benefit of input from DWR.

California State Auditor's Assessment of 60-Day Status: Will Not Implement

We disagree. Our recommendation is intended to reduce the risk that DWR will direct contractors to select specific subcontractors. We stand by our recommendation that the contractor should put forth the subcontractor it believes will best perform the work required by the contract and DWR should verify the qualifications of that subcontractor before approving the selection.

Recommendation #6 To: Water Resources, Department of

DWR should ensure that it retains adequate documentation in its contract files to support that contract prices are fair and reasonable and all deliverables are received.

6-Month Agency Response

The Department has updated its Architectural and Engineering contract procedures to fully implement the Auditor's recommendation. To ensure files contain price/rate documentation, a separate memorandum will be placed in the contract files identifying what contracts were used as a price/rate comparison. The memorandum will also identify any other data that was used in review of contract price/rates. This policy and procedure was implemented on January 26, 2018 when it was disseminated to Architectural and Engineering contract staff via email on January 26, 2018.

Additionally, Task Order Procedures were updated to require the Program Manager to document in files that all deliverables have been identified and received.

Implemented.

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

60-Day Agency Response

The Department has updated its Architectural and Engineering contract procedures to include a separate memorandum in the contract file identifying what other contracts were used as a price/rate comparison, and to identify any other data that was used in review of contract price/rates.

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

Recommendation #7 To: Water Resources, Department of

To ensure that DWR manages WaterFix in an effective manner, DWR should complete both the economic analysis and financial analysis for WaterFix and make the analyses publicly available as soon as possible.

Annual Follow-Up Agency Response From October 2023

In 2019, the Department of Water Resources (DWR) withdrew all regulatory approvals for California WaterFix. Consistent and in accordance with the response from 2020, 2021 and 2022, DWR is pursuing a new environmental review and planning process for modernized water conveyance in the Sacramento-San Joaquin Delta. This effort is consistent with Governor Newsom's vision for water resilience and his directive for a single-tunnel project that will ensure water security.

DWR is leading the planning effort and environmental review process through the California Environmental Quality Act (CEQA) for the new single tunnel Delta Conveyance Project (DCP). DWR is working with the U.S. Army Corps of Engineers (USACE) as the lead for the Federal National Environmental Policy Act (NEPA) document. DWR is still tracking to complete the CEQA document by the end of 2023 and USACE is tracking to complete the NEPA document in the summer of 2024. The completion of the CEQA document is critical in preparing the economic and financial analysis requested under Recommendation No. 7. The final preferred project, operational benefits, and program costs will not be known until the CEQA document has been certified; at which time the project will be approved, and the economic and financial analysis requested can be performed. It should also be noted that the DCP program has been tracking on schedule and on budget to complete the work described herein.

DWR will complete the economic and financial analysis for the Delta Conveyance Project in the summer of 2024.

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

Annual Follow-Up Agency Response From October 2022

Consistent and in accordance with the response from 2020 and 2021, the Department of Water Resources (DWR) is pursuing a new environmental review and planning process for modernized water conveyance in the Sacramento-San Joaquin Delta. This effort is consistent with Governor Newsom's vision for water resilience and his directive for a single-tunnel project that will ensure water security.

DWR is leading the planning effort and environmental review process through the California Environmental Quality Act (CEQA) for the new single tunnel Delta Conveyance Project (DCP). DWR is working with the U.S. Army Corps of Engineers as the lead for the Federal National Environmental Policy Act (NEPA) document. DWR is still tracking to complete both the CEQA and NEPA documents for DCP toward the end of 2023. The completion of the CEQA and NEPA documents is critical in preparing the information requested under Recommendation No. 7, as the final preferred project, operational benefits, and program costs will not be known until then; at which time, the economic and financial analysis requested can be performed. It should also be noted that the DCP program has been tracking on schedule and on budget to complete the work described herein.

DWR will complete the economic and financial analysis for a proposed Delta conveyance project in the second quarter of 2024.

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

Annual Follow-Up Agency Response From September 2021

Consistent and in accordance with the response from 2020 the Department of Water Resources (DWR) is pursuing a new environmental review and planning process for modernized water conveyance in the Sacramento-San Joaquin Delta. This effort is consistent with Governor Newsom's vision for water resilience and his directive for a single-tunnel project that will ensure water security.

DWR is leading the planning effort and environmental review process through the California Environmental Quality Act (CEQA) for the new single tunnel Delta conveyance project (DCP). DWR is working with the U.S. Army Corps of Engineers as the lead for the Federal National Environmental Policy Act (NEPA) document. DWR is still tracking to complete both the CEQA and NEPA documents for DCP toward the end of 2023. The completion of the CEQA and NEPA documents is critical to prepare the information requested under this Recommendation No. 7 as the final preferred project, operational benefits, and program costs will not be known until then; at which time the economic and financial analysis requested can be performed. It should also be noted that the DCP program has been tracking on schedule and on budget to complete the work described herein.

DWR will complete the economic and financial analysis for a proposed Delta conveyance project in the first to second quarter of 2024.

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

Annual Follow-Up Agency Response From October 2020

On May 2, 2019 the Department of Water Resources (DWR) announced that it will pursue a new environmental review and planning process for modernized water conveyance in the Delta. This effort is consistent with Governor Newsom's vision for water resilience and his directive for a single-tunnel project that will ensure water security.

DWR is leading the renewed environmental planning process for Delta conveyance project. The Notice of Preparation was released on January 15, 2020 to begin compliance with the California Environmental Quality Act (CEQA) for the new single tunnel Delta Conveyance Project. The Bureau of Reclamation (Bureau) decided it would not pursue a participating role in Delta conveyance in May of 2020. The U.S. Army Corps of Engineers has taken over and become the new Federal National Environmental Policy Act (NEPA) lead as of August 2020 and their NEPA process and review of the CEQA work is a longer process than that of the Bureau. Therefore, the schedule to complete both the CEQA and NEPA documents for Delta Conveyance project is not anticipated to occur until end of 2023. The completion of these documents is critical for the answering of this Recommendation No. 7 as the final preferred project, operational benefits, and program costs will not be known until then; at which time the economic analysis requested can be performed.

DWR will complete the economic analysis for a proposed Delta conveyance project in the first quarter of 2024.

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

Annual Follow-Up Agency Response From October 2019

On May 2, 2019, the Department of Water Resources (DWR) announced that it will pursue a new environmental review and planning process for modernized water conveyance in the Delta. This effort is consistent with Governor Newsom's vision for water resilience and his directive for a single-tunnel project that will ensure water security.

DWR will lead the renewed environmental planning process and will provide ongoing oversight of the Delta Conveyance Design and Construction Authority (DCA). DWR will issue a Notice of Preparation for an environmental impact report on a single-tunnel conveyance proposed project later this year. The economic analysis for the new Delta Conveyance project is anticipated to be completed towards the end of the environmental planning phase in late 2022.

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

1-Year Agency Response

An economic analysis for the full 9,000 cfs project, as approved in July 2017, was released and made publicly available on September 20, 2018. As noted in our 6-month response, DWR has continually coordinated with the SWP and CVP public water agencies regarding exact levels of participation for this project. This coordination led to the determination that staged implementation was not needed and subsequently the revised economic analysis was released in September 2018 ( https://www.californiawaterfix.com/benefit-cost-analysis/ ). The Department will complete and make available a financial analysis once more precise information is available regarding financing components and levels of participation by the SWP and CVP public water agencies.

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

6-Month Agency Response

On February 12, 2018, the Department completed and made available an economic analysis based on "staged" implementation of WaterFix. This economic analysis for this staged project can be found here: https://www.californiawaterfix.com/economic-analysis/?utm_source=CA+Water+Fix+Update+Issue+%2336&utm_campaign=CA+WaterFix+Update+Issue+35&utm_medium=email DWR is considering this proposal for a staged construction in order to preserve options that may be required depending on final participation of the SWP and CVP public water agencies. However, as coordination with the SWP and CVP public water agencies continue, there may be revisions to this economic analysis and the Department will complete and make available a revised economic analysis and financial analyses once the exact levels of participation of the SWP and CVP public water agencies and the implementation schedule for the project is determined. Partially Implemented.

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

60-Day Agency Response

The Department will complete and make available economic and financial analyses once the exact level of participation of each public water agency and the implementation schedule for the project is determined.

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

Recommendation #8 To: Water Resources, Department of

In order to prepare for the potential approval of WaterFix and to ensure that the project is managed properly during the design and construction phase, DWR should develop an appropriate governance structure so that it is prepared to oversee the design and construction of WaterFix in the event it is ultimately approved.

1-Year Agency Response

To facilitate a partnership to develop the final design and construction of WaterFix, DWR established the Delta Conveyance Office (DCO) in April 2018 to oversee the program. Participating public water agencies subsequently formed a Joint Powers Authority, called the Delta Conveyance Design and Construction Authority (DCA), which met for the first time on May 17, 2018. The DCA hired an interim executive director and interim general counsel and met for a second time on July 19, 2018. The DCA meetings are publicly noticed and are available at www.dcdca.org.

To formalize this partnership and the governance structure for WaterFix, in May 2018, DWR entered into a Joint Exercise of Powers Agreement with the DCA. The JEPA provides that the DCA will design and construct WaterFix, according to DWR standards and specifications, with DWR oversight through the DCO.

More information on all the above is publicly available at our website, CaliforniaWaterFix.com.

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

6-Month Agency Response

A governance structure has been developed with the public water agencies and will be implemented when the project moves into the implementation phase. Will Implement.

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

60-Day Agency Response

A governance structure has been developed with the public water agencies and will be implemented when the project moves into the implementation phase.

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

Recommendation #9 To: Water Resources, Department of

In order to prepare for the potential approval of WaterFix and to ensure that the project is managed properly during the design and construction phase, DWR should develop and update when necessary the associated program management plan for the design and construction phase of the project.

Annual Follow-Up Agency Response From October 2020

As the owner and operator of the State Water Project, DWR is the lead in conducting the environmental review and permitting for the new Delta conveyance project.

DWR established the Delta Conveyance Office (DCO) in May 2018. To further support DWR's commitment to modernizing our infrastructure, the DCO is now integrated into the State Water Project. The DCO prepared and completed a Program Management Plan for the initial phase of the program - the Planning Phase; which includes the conceptual engineering, environmental planning, and permitting projects. This PMP can be found on the DCO SharePoint site and describes and defines DCO's management approach to scope, schedule, cost, time, quality, risk, communication, resources, integration, procurement, and safety, during this initial phase of the program. DCO completed the PMP draft in December 2019 and finalized the PMP in July 2020. This PMP is scheduled to be revisited every 6-months and updated as necessary pursuant to those reviews.

During the environmental planning phase of the renewed delta conveyance project, the DCA will provide conceptual engineering, field studies, and design work to inform the environmental planning process, and assist in evaluating and minimizing community impacts, under DWR's oversight. DCA has completed development of their Program Management Plan providing program-specific governance documents, guidelines, tools, and resources to DCA staff and subcontractors in achieving DCA's goals and objectives. DCA's PMP was completed in July of 2020, and copies of their management plans can be found on their SharePoint site.

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

We reviewed program management documentation provided by DWR and found that these documents address our concerns over the existence of a program management plan for the Delta Conveyance Project, formerly known as WaterFix. These documents include program management plans for both the Delta Conveyance Office, DWR's unit overseeing the Delta Conveyance Project, and the Delta Conveyance Design & Construction Authority, a Joint Power's Authority consisting of DWR and public water agencies charged with engineering and design planning activities in support of the Delta Conveyance Project. DWR indicates in these plans that it will monitor and update these plans on an ongoing basis.

Annual Follow-Up Agency Response From October 2019

On May 2, 2019, the Department of Water Resources (DWR) announced that it will pursue a new environmental review and planning process for modernized water conveyance in the Delta. This effort is consistent with Governor Newsom's vision for water resilience and his directive for a single-tunnel project that will ensure water security. As the owner and operator of the State Water Project, DWR will be the lead in conducting the environmental review and permitting for the new delta conveyance project.

During the environmental planning phase of the renewed delta conveyance project, the DCA will provide engineering, field studies and design work to inform the environmental planning process, and assist in evaluating and minimizing community impacts under DWR's oversight. The DCA is currently developing a Program Management Plan (PMP) to provide Program-specific governance documents, guidelines, tools and resources to DCA staff and subcontractors in achieving DCA's goals and objectives. DCA's PMP is anticipated to be completed by the end of 2019.

DWR established the Delta Conveyance Office (DCO) in May 2018. To further support DWR's commitment to modernizing our infrastructure, the DCO is now integrated into the State Water Project. The DCO is developing a Program Management Plan for the environmental planning phase of the project. This PMP describes and defines the management of scope, schedule, cost, quality, risk, communication and safety. DWR anticipates completing this PMP by the end of 2019.

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

1-Year Agency Response

With the formation of the Delta Conveyance Design and Construction Authority (DCA) in Spring 2018, the DCA is responsible for the design and construction of the WaterFix project under the control and supervision of DWR. DWR and the DCA are developing separate program management plans that reflect their individual roles and responsibilities.

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

6-Month Agency Response

The Department will carry out this recommendation prior to the implementation phase. Will Implement.

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

60-Day Agency Response

The Department will carry out this recommendaton prior to the implementation phase.

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

All Recommendations in 2016-132

Agency responses received are posted verbatim.