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3w ago

OPM Awards No-Bid HR Contract to Workday Under Urgency Mandates

The federal agency cites critical system failures and binding deadlines as reasons for bypassing competitive bidding for a one-year deal with Workday.

The logo of Worday is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. REUTERS/Yves Herman/File Photo

Overview

  • The Office of Personnel Management (OPM) has granted a sole-source contract to Workday for a new cloud-based HR platform, effective May 2, 2025, citing operational urgency.
  • OPM justified the decision by pointing to fragmented and outdated HR systems that caused payroll errors, benefits disruptions, and unsustainable manual workloads.
  • The agency argued that an open bidding process would have delayed the project by six to nine months, risking non-compliance with federal workforce restructuring mandates.
  • Workday's pricing was deemed 70% more affordable than the current system, and its experience with Fortune 500 companies was cited as evidence of its scalability.
  • The Department of Government Efficiency, led by Elon Musk, continues its workforce overhaul, with 260,000 civil servants exiting and $160 billion in savings claimed, though the accounting has faced scrutiny.