The U.S. Office of Personnel Management (OPM) has canceled a $342,200 sole-source contract awarded to Workday for a new cloud-based HR platform. The contract, awarded on May 2 without competitive bidding, faced criticism for bypassing other vendors like ADP and SAP and for planning to replace OPM’s existing in-house HR system. Critics argued that the contract contradicted the objectives of the Department of Government Efficiency (DOGE), led by Elon Musk, which aims to streamline government operations by reducing workforce and cutting wasteful spending. OPM had defended the sole-source award, citing operational failures and urgent federal mandates, but neither OPM nor Workday commented following the cancellation’s announcement on a federal contracting website.

Source: Reuters