Federal News
OPM Launches Federal HR Shared Service Center
March 20, 2026
The U.S. Office of Personnel Management (OPM) has launched a new HR Shared Service Center to centralize and streamline human resources functions across federal agencies. This initiative supports the Federal HR 2.0 effort to consolidate fragmented HR systems into a unified, scalable, fee-for-service platform aimed at improving operational efficiency, reducing duplication, and enhancing service quality governmentwide. The Shared Service Center has already attracted at least eight federal agencies, including HUD and the CFPB, with a planned migration timeline beginning in fiscal year 2027 and a government-wide human capital management system targeted for fiscal year 2028.
- The initiative includes a potentially over $1 billion, 10-year contract to develop and operate a consolidated federal HR IT platform with FedRAMP Moderate or higher certification.
- Procurement professionals should note the shift toward centralized, skills-based hiring models, particularly for technology roles under the Tech Force initiative, which aims to accelerate hiring timelines and build sustainable talent pipelines.
- Agencies can leverage the fee-for-service model to reduce HR operational costs and focus on core missions, while vendors should evaluate opportunities to provide cloud-based human capital management solutions and strategic advisory services.
- The program's phased adoption and voluntary participation indicate a growing market for integrated federal HR services, signaling long-term demand for modernization and consolidation efforts.
The federal government deserves worldclass HR services that match the scale and importance of its mission. This Shared Service Center is a milestone in our effort to streamline operations, reduce duplication, and deliver high quality service across government. With the expertise and modern HR technology we have at OPM, we are well positioned to make that vision a reality.
— Scott Kupor, OPM Director
What are the strategic priorities the U.S. Office of Personnel Management (OPM)? How is OPM working to modernize the U.S. federal HR systems? What is it doing to streamline hiring, shift to a skills-based talent management, and what will it take to build the workforce of the future?
— Michael J. Keegan, Host
The Office of Personnel Management (OPM) is launching an HR Shared Service Center for federal agencies to streamline their human resources (HR) functions.
— Legislative Document
Agencies
U.S. Office of Personnel Management, Department of Housing and Urban Development, Consumer Financial Protection Bureau, Department of Veterans Affairs Office of Inspector General, Office of Government Ethics
Contracts
potentially over $1 billion, ,
Locations
Sources
- Federal HR 2.0 Moves Ahead With Shared Service Center β MeriTalk · MeriTalk · Mar 20
- Federal HR 2.0 Moves Ahead With Shared Service Center · meritalk · Mar 20
- OPM launches a federal HR shared service center | FedScoop · FedScoop · Mar 18
- OPM Introduces HR Shared Service Center · ExecutiveGov · Mar 18
- Transforming Federal Hiring & Modernizing the Workforce: A Conversation with Scott Kupor, Director, U.S. Office of Personnel Management (OPM) | Federal News Network · Federal News Network · Mar 16