The U.S. Office of Personnel Management (OPM) has awarded Oracle the Federal HRIT Modernization Core Human Capital Management (HCM) contract, a major step toward improving data quality and modernizing workforce management across the federal government.

The initiative will consolidate more than 100 fragmented HR systems used by federal agencies into a single shared platform, helping reduce errors, strengthen workforce data accuracy, and improve personnel processing. OPM estimates the effort could lower taxpayer costs by more than 90% while enhancing efficiency, security, and service delivery.

The new cloud-based platform will serve as the foundation of the Federal HR 2.0 initiative, supporting approximately two million executive branch civilian employees. In addition to streamlining HR operations, the system is expected to improve data quality, strengthen workforce planning capabilities, and provide a more consistent experience for federal employees and HR professionals.

“Historically, federal agencies have relied on fragmented, aging HR systems that are costly to maintain and difficult to scale,” “This award represents a foundational investment in the future of federal workforce management and supports the Trump Administration’s broader efforts to modernize government operations, improve service delivery, and increase efficiency across the federal enterprise,” OPM Director Scott Kupor said.

The FedRAMP-certified Software-as-a-Service platform will be implemented in phases, with OPM working closely with agencies to ensure adoption, continuity of operations, and ongoing improvement.