The U.S. Office of Personnel Management, the federal agency responsible for managing human resources policy and services for the civilian federal workforce, has awarded Oracle a $395.8 million contract to build a governmentwide HR platform.
The contract covers the Federal HRIT Modernization Core Human Capital Management program and will be built on Oracle Fusion Cloud Human Capital Management, a cloud-based HR platform from the Texas-headquartered enterprise software and cloud infrastructure company.
The platform is intended to replace more than 100 separate HR systems currently used across federal agencies, many of which are not interoperable with one another. OPM said the fragmented state of the current infrastructure results in duplicated efforts, inconsistent data, and delays in processes including hiring and retirement. Consolidating onto a single cloud platform is expected to reduce costs to taxpayers by more than 90 percent.
Scott Kupor, director of the U.S. Office of Personnel Management, described the selection process and the rationale behind the choice:
"The federal government's HR infrastructure has become unnecessarily fragmented, making it harder for agencies to efficiently serve employees and taxpayers. Following a rigorous, competitive evaluation process that included extensive testing and input from agencies across government, we selected Oracle Cloud HCM to help consolidate dozens of disconnected systems into a modern, secure platform. This is an important step toward improving interoperability, strengthening workforce data capabilities, and delivering a more effective and accountable HR experience across the federal government."
Under the Federal HR 2.0 initiative, Oracle Cloud HCM will function as the single system of record for workforce management across approximately two million U.S. Executive Branch civilian employees. The platform carries FedRAMP authorization, the US government's security compliance framework for cloud services, and will cover position management, personnel action and records processing, workforce analytics and employee and manager self-service. It will also integrate with payroll, retirement and benefits systems.
Kim Lynch, executive vice president of Oracle Government, Defense and Intelligence, commented on the contract:
"Oracle is honored to partner with OPM to establish a secure, trusted foundation to unify federal HR operations. And in doing so, we're extending our commitment to help government leaders make faster decisions while delivering to federal employees the modern experience they deserve."
