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Independent IV&V vendor says Michigan UI modernization faces schedule and conversion risks; lawmakers press for reports
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Summary
CSG Government Solutions, the independent verification and validation (IV&V) contractor for Michiganunemployment insurance modernization, told a House Appropriations subcommittee it has identified schedule, conversion and quality-management risks and that Deloitte has received its reports since May 2024.
LANSING, Mich.
CSG Government Solutions, the independent verification and validation (IV&V) contractor for Michiganunemployment insurance modernization project (MyUI), told a House Appropriations subcommittee on Tuesday that its monthly reports identify schedule and data-conversion risks and that the projectteam has recently been working to rebaseline the schedule. Representative Snyder and other members pressed CSG about whether it has flagged cost overruns; CSG said it has raised budget observations previously but did not open a current formal risk after the projectreplanning effort.
The testimony matters because the MyUI project is a major statewide IT modernization effort involving the Unemployment Insurance Agency (UIA), the Department of Technology, Management & Budget (DTMB), and a private systems integrator, Deloitte. Lawmakers sought clarity on who receives CSGreports, what risks the IV&V team has identified, and whether the IV&V findings have prompted changes.
Becky Rozier, client executive for the MyUI IV&V engagement, told the committee the firmcontract is "about a million dollars a year." Robin Sosin, IV&V project manager, said the IV&V teamsubmits monthly reports to DTMB and UIA leadership and that, to the best of CSG's knowledge, Deloitte has been receiving the reports since May 2024. "We submit our reports to DTMB and UIA leadership, and it is up to them to share those reports with Deloitte," Sosin said.
Committee members pressed CSG on whether the vendorhas "red flagged" cost overruns. CSG representatives said they have previously observed budget issues in earlier reports but that replanning and contract changes can change the baseline used to evaluate budgetary risk. "When they've modified that contract to include a greater budget, then that becomes the new budget baseline," Rozier said.
CSG described its core findings: an open observation that the quality management plan provided by the systems integrator was not sufficiently robust and recent risks around schedule and data conversion. Sosin said the IV&V team is watching whether mitigation steps are implemented and that the state and Deloitte have been refining a replanned schedule, with meetings involving DTMB, UIA and Deloitte to "fine tune" and "ensure there are no gaps." She said the parties were planning to have that work wrapped up by the end of next week.
Lawmakers also asked whether the IV&V process allows Deloitte to comment on draft reports. CSG said that, as a matter of preserving independence, IV&V vendors generally do not allow vendors to edit draft reports, but Deloitte may provide information or correct factual errors after receiving the report. "Deloitte does participate in the process by being involved in interviews, and they certainly can provide information once they receive the report if they believe something is factually incorrect," Rozier said. CSG said it had not received feedback in the past year that anything in its reports was factually incorrect.
Representative Maddock criticized the projectand questioned the return on the IV&V contract. "Seems like a waste of money to me, hiring you guys for a million dollars a year and look where we are," Maddock said. Representative Madduk later requested that the committee be included in communications and receive CSG's reports going forward; Rozier acknowledged the committee could be provided the reports, while noting routine email-level communications might be extensive.
CSG said it had provided bimonthly (biweekly) meetings and monthly reports per the contract and that an RFP misstatement led to confusion about "bimonthly" reports; the bimonthly report was later removed from the contract. The IV&V team also said it had raised observations regarding Deloitte's internal quality processes and recently obtained Deloitte's internal quality checklist; the state project manager is working to obtain Deloitte's internal audit reports to better assess how Deloitte monitors internal quality.
The subcommittee approved the minutes from its June 5, 2025 meeting at the start of the session. There were no formal votes recorded on the MyUI project during the hearing; the session concluded after members said they would pursue further access to IV&V reports and communication records.
