""For too long, the Federal Government has lacked what is taken for granted at any other organization - a single system of record for personnel management. Instead, the Federal Government spends an inordinate amount each year on numerous costly, duplicative, and outdated core human capital management ("Core HCM") systems," the memo said. As part of the plan, the memo said OMB and OPM officials will lead efforts "to procure a modern, best-in-class commercial Core HCM system" for governmentwide adoption by fiscal 2028."
"In a joint memo, OMB Director Russ Vought and OPM Director Scott Kupor described a two-year plan to transition the federal government's collection of disparate human resources networks onto a single system dubbed Federal HR 2.0. Vought and Kupor said the new system would manage HR data such as "personnel action processing, employee system of record, position management, employee and manager self-service, analytics and dashboards, time and attendance, and learning," but will also integrate other functions like payroll, benefits, talent acquisition, performance management and retirement."
The Office of Management and Budget and the Office of Personnel Management plan a two-year transition to a single federal human capital IT platform called Federal HR 2.0. The program targets procurement of a modern commercial Core HCM system for governmentwide adoption by fiscal 2028. The platform will centralize personnel records and manage functions including personnel actions, position management, self-service, analytics, time and attendance, learning, payroll, benefits, talent acquisition, performance management, and retirement. Initial agency transitions will begin this fiscal year and include major departments and agencies representing roughly 900,000 full-time employees. Procurement leadership will be led by OPM.
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