Oracle Secures $400M Contract for Federal HR System Overhaul

WHO:

Federal News Network - The Office of Personnel Management (OPM) awarded the contract to Oracle.

Federal News Network - OPM Director Scott Kupor provided comments regarding the contract.

Federal News Network - Jason Parman is the principal deputy associate director for HR Solutions at OPM.

WHAT:

Federal News Network - OPM awarded a nearly $400 million, 10-year IT contract to Oracle to develop a government-wide HR system.

Federal News Network - The new HR platform is expected to manage personnel functions such as payroll, benefits, and employee performance.

Federal News Network - The initiative aims to reduce costs to taxpayers by more than 90%.

Federal News Network - There are currently 119 different IT platforms in use for managing HR functions across federal agencies.

WHERE:

Federal News Network - The contract pertains to federal agencies in the United States.

WHEN:

Federal News Network - The initial target launch date for the HR IT system was set for July 2027, but it is expected to be pushed back by at least six months.

Federal News Network - OPM intends to onboard the first wave of agencies to the new HR IT platform in the early parts of fiscal 2027.

WHY:

Federal News Network - The consolidation of HR systems is intended to address issues of outdated and duplicative systems that lead to delays and errors in personnel processing.

Federal News Network - The Trump administration has been working on plans to consolidate the 119 systems into one as part of a long-time goal for the federal government.

HOW:

Federal News Network - OPM has been preparing for the modernization effort by working with other agencies and the Office of Management and Budget.

Federal News Network - OPM has set up several committees and working groups to prepare for the project, focusing on data governance, security, and HR.

Federal News Network - Following the contract award, OPM will begin onboarding phase one agencies for the new system, including data migration.

(UPDATED June 11, 2026 06:32 UTC)

The Office of Personnel Management has awarded a nearly $400 million, ten-year IT contract to Oracle to develop a government-wide human resources system aimed at managing payroll, benefits, and employee performance across federal agencies. OPM Director Scott Kupor highlighted that this initiative seeks to reduce costs to taxpayers by more than 90%, consolidating the current 119 different HR platforms into one streamlined system. The initial target launch date for the new HR IT platform is set for July 2027, although it is expected to be delayed by at least six months as OPM prepares to onboard the first wave of agencies in early fiscal 2027.