Workday (WDAY) has been awarded a contract by the US Office of Personnel Management to overhaul its HR systems and support operational efficiency, a company spokesperson said Thursday in an emailed statement to MT Newswires.

The agency's outdated and fragmented systems have caused payroll mistakes, benefits issues, and an unsustainable manual workload, requiring urgent reforms, Reuters reported.

The no-bid contract was issued on May 2, amid ongoing efforts by Elon Musk's Department of Government Efficiency to reduce the federal workforce, the media outlet reported.

OPM reportedly said opening the contract to competitive bidding would delay the project by up to nine months and claimed that Workday's track record with major employers made it uniquely qualified.

The agency did not disclose the contract's value but said Workday's solution is 70% cheaper than the existing system and its pricing was found to be fair, according to Reuters.

US OPM did not immediately respond to a request for comment from MT Newswires.

Shares of the company were up about 2.1% in recent trading.

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