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Pentagon Poised to Cancel Two Near-Complete HR Systems and Reopen Vendor Bids

Navy, Air Force payroll modernization efforts are being halted to permit competing bids from Salesforce, Palantir, Workday and other vendors.

A general view of the Pentagon after it was reported billionaire Elon Musk was due to be briefed about the U.S. military's plan for any war that might break out with China, in Washington, D.C., U.S., March 21, 2025. REUTERS/Kent Nishimura/FIle Photo

Overview

  • Navy and Air Force officials plan to terminate two decade-long HR overhaul programs that have cost over $800 million combined.
  • Replacement competitions will include bids from Salesforce, Peter Thiel’s Palantir, Workday and other firms.
  • Terminating the contracts “for convenience” could require the Pentagon to reimburse contractors for wind-down expenses and fund duplicate development.
  • Decisions follow Trump administration’s DOGE acquisition directives amid recent retirements and vacancies that have weakened procurement oversight.
  • Both Accenture-Oracle and Nakupuna-led projects had passed independent reviews and promised significant annual savings, leaving validated solutions in limbo