Cloud Revolution: Workday Lands Uncontested HR Contract with Federal Agency

The federal human resources agency has awarded Workday a cloud-based HR platform contract without seeking competitor bids, sparking concerns among its staff. The decision was driven by operational failures and federal mandates. Critics question this choice, especially given existing successful in-house platforms and alternatives like ADP and SAP.

The federal human resources agency has controversially awarded Workday a new cloud-based HR platform contract without competitive bidding, raising eyebrows among current and former staff. The decision has come amid efforts spearheaded by Trump advisor Elon Musk to streamline the federal workforce.

According to a memo dated May 2, the move was justified by "urgent operational failures and federal mandates," emphasizing tight deadlines imposed by the Trump administration for workforce restructuring. Critics, however, question the viability of replacing successful in-house platforms with Workday, especially when competitors exist.

The $342,200 contract was granted amid mass resignations and layoffs under the Department of Government Efficiency, led by Musk. Despite claims of saving taxpayers $160 billion, critics cite ongoing accounting issues. The situation underscores wider concerns about reliance on sole-source contracts in federal procurement.

(With inputs from agencies.)