The U.S. Office of Personnel Management awarded Oracle (NYSE: ORCL) a $395.8 million contract to deliver a governmentwide human resources platform for federal employees, according to a company statement.

The Federal HRIT Modernization Core Human Capital Management contract will implement Oracle Fusion Cloud Human Capital Management to serve approximately two million U.S. Executive Branch civilian employees. The platform aims to replace more than 100 separate HR systems currently used across federal agencies.

OPM expects the consolidation to reduce costs to taxpayers by more than 90 percent while improving efficiency, security, and service delivery. The initiative addresses current interoperability issues among federal agency HR systems that create duplicated efforts and inconsistent data, leading to higher costs and delays in hiring and retirement processes.

"The federal government's HR infrastructure has become unnecessarily fragmented, making it harder for agencies to efficiently serve employees and taxpayers," said Scott Kupor, director of the U.S. Office of Personnel Management. The selection followed what OPM described as a rigorous, competitive evaluation process that included extensive testing and input from agencies across government.

The Oracle Cloud HCM platform will serve as the foundation for OPM's Federal HR 2.0 initiative. The system will be FedRAMP-authorized and will centralize HR operations to manage the federal workforce as a unified enterprise.

Platform capabilities include position management, personnel action and records processing, workforce analytics, and employee and manager self-service functions, with integration to payroll, retirement, and benefits systems.