OPM Awards Oracle $400 Million HR Overhaul Contract as 119 Federal Systems Face Consolidation
Updated
Updated · Federal News Network · Jun 10
OPM Awards Oracle $400 Million HR Overhaul Contract as 119 Federal Systems Face Consolidation
2 articles · Updated · Federal News Network · Jun 10
Summary
$400 million over 10 years will fund Oracle’s buildout of a single cloud-based HR platform that OPM says will eventually handle payroll, benefits and performance management across federal agencies.
119 separate HR IT systems are now in use governmentwide, and OPM says replacing those fragmented platforms could cut taxpayer costs by more than 90% while reducing delays, errors and inconsistent data.
Oracle beat Workday for the award after OPM briefly gave Workday a task order in May 2025 and then withdrew it; Workday will have 10 days after its debrief to file a protest.
Phase-one agencies are now set to begin onboarding steps, though the administration’s initial July 2027 launch target is likely to slip by at least six months after earlier protest-driven delays.
The contract is a central piece of the Trump administration’s Federal HR 2.0 push to standardize workforce data and HR services across government.