OPM Picks Oracle for Massive Federal HR Overhaul: 119 Systems to Become One

The Trump administration is moving to overhaul federal human resources technology, consolidating agency HR functions into a single governmentwide platform.

The administration selected Oracle– behind the currently used PeopleSoft software– to build out and run the first-ever governmentwide HR technology system.

Under the 10-year, nearly $400 million contract, Oracle will bring 119 HR systems into one single secure cloud-based platform that OPM is calling its Core Human Capital Management (HCM) system.

A Unified Experience

In a news release, OPM said the move will cut costs by more than 90 percent and improve efficiency, service delivery, and security, saving time and money by reducing duplication and fragmentation. 

“Historically, federal agencies have relied on fragmented, aging HR systems that are costly to maintain and difficult to scale,” said OPM Director Scott Kupor. “This award represents a foundational investment in the future of federal workforce management.”

The new platform will serve as the foundation for the Federal HR 2.0 initiative.

It’s designed to streamline HR operations, improve data quality, strengthen workforce planning, and deliver a more consistent experience across the federal government.

Services include everything from attendance tracking to payroll and benefits to logging personnel actions.

In an interview with Federal News Network, Director Kupor said the goal is to create a consistent and unified experience.

“This becomes the centerpiece for how we create effectively a unified set of applications that every federal employee can follow from cradle to grave,” said Director Kupor.

Oracle Beat Out Competitors

Oracle beat out IBM, Workday, SAP, and Economic Systems Inc. for the HR 2.0 contract. Oracle’s PeopleSoft is currently used by OPM to manage HR functions.

IBM and Economic Systems filed protests over the award earlier this year. IBM eventually withdrew its protest while the Government Accountability Office (GAO) denied the Economic Systems’ protest on June 1, clearing the way for OPM to make the award. Workday could still file a protest.

Phase One Agencies

OPM says it will start working with “phase one agencies” to get them ready for the new system, with the goal of onboarding them in early fiscal year (FY) 2027. 

OPM has also been preparing for implementation challenges by setting up several committees and working groups. 

“We’re going to be hard at work — no longer dealing with procurement, but actually the first phase of implementation of this system,” said Director Kupor.