The US Office of Personnel Management (OPM) has awarded a sole-source contract to Workday to overhaul its fragmented and outdated human resources systems, responding to the Trump administration's directives for federal workforce restructuring. Facing a critical failure in its current HR infrastructure, which has caused payroll errors and disrupted benefits, OPM justified the urgent need for Workday’s services to meet stringent deadlines for merit-based hiring reforms. The move to bypass competition underscores the high stakes of efficiently managing over two million federal civilian employees, with expectations to have the new system operational by mid-July.
Under pressure from the Trump administration's directives, OPM awarded Workday a sole-source contract to address critical failures in its HR infrastructure.
OPM's HR software was found to be fragmented and outdated, causing payroll errors and disrupting benefits, necessitating immediate reform.
The urgency of restructuring efforts led OPM to bypass formal competition, citing strict deadlines imposed by presidential orders aimed at merit-based hiring reforms.
Despite being pushed for efficiency, the effort showed less savings than promised, leading to the necessity of engaging Workday for a comprehensive overhaul.
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