OPM’s long-planned HR overhaul moves ahead with $396M award to Oracle

The Office of Personnel Management is sticking with the incumbent as the agency moves forward with a plan to modernize human resource systems across the government.

OPM has picked Oracle for the 10-year, $395.8 million Federal HR 2.0 contract that will cover more than two million federal employees. Oracle faced challengers such as Workday, IBM, SAP and Economic Systems Inc.

IBM and Economic Systems filed protests earlier this year objecting to terms in the solicitation. IBM withdrew its protest and GAO denied Economic Systems’ protest on June 1. Once the protests were resolved, OPM was clear to make its award.

Much of what OPM uses to manage HR functions is run on PeopleSoft, which Oracle acquired in 2005. Oracle recently extended its support for PeopleSoft through 2037, which includes updates and fixes.

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