OPM Nears 10-Year HR Overhaul Award for 2 Million Workers as Protests End
Updated
Updated · Government Executive · Jun 3
OPM Nears 10-Year HR Overhaul Award for 2 Million Workers as Protests End
1 articles · Updated · Government Executive · Jun 3
Summary
A GAO denial of Economic Systems' protest on Monday cleared the last barrier to OPM awarding its 10-year Federal HR 2.0 contract, after IBM had already withdrawn its own challenge in April.
The contract would replace fragmented HR systems with a single governmentwide platform covering 2 million federal employees, with functions including position management, personnel actions, records processing, analytics and self-service.
OPM can now select a winner at any time this month after continuing proposal evaluations during the protest period; bidders were assessed on four technical factors, including implementation approach, testing and a live demonstration.
The award would cap a reset of the modernization effort after OPM rescinded a sole-source Workday deal last year amid criticism and reopened the project to broader competition.
After its first deal was canceled, how did Workday lose the $400M federal HR contract to rival Oracle?
Can one tech platform truly replace 119 systems and cut federal HR costs by 90% as promised?
Does OPM's new role as both policymaker and service provider create a fundamental conflict of interest?
Transforming Federal HR: Inside OPM’s $400M Oracle Deal to Consolidate 119 Systems for 2 Million Workers
Overview
On June 10, 2026, the Office of Personnel Management awarded Oracle a 10-year, $400 million contract to develop and implement the Core Human Capital Management system. This decision marks a major step in the federal government’s effort to modernize its human resources infrastructure by replacing over 100 outdated HR systems with a single, integrated platform. The new system will serve about 2 million federal employees across various agencies. The award follows a multi-year process that faced challenges like bid protests and saw Oracle chosen over Workday, highlighting the complexity and importance of this modernization initiative.