Office of Personnel Management (OPM): A Guide for New Government Contractors

Understanding OPM

What is OPM?

The Office of Personnel Management (OPM) is the federal agency responsible for managing human resources, benefits, and personnel policies for the U.S. government’s civilian workforce. OPM ensures that federal agencies can attract, hire, retain, and develop a high-performing workforce while promoting fair employment practices, security, and employee well-being.

As the central HR authority for federal employees, OPM oversees areas such as hiring and recruitment, security clearances, pay and benefits administration, and workforce planning. Contractors play a critical role in providing IT services, HR support, data management, cybersecurity, and digital modernization for OPM’s various programs.

Key Areas of Focus:

  • Federal Hiring & Recruitment: Managing USAJOBS, the primary portal for government job applications.
  • Employee Benefits & Retirement: Overseeing federal employee health benefits (FEHB), retirement programs, and life insurance plans.
  • Personnel Background Investigations: Conducting security clearance and suitability investigations for government employees.
  • Cybersecurity & Data Protection: Safeguarding employee records and sensitive HR data.
  • Workforce Policy & Planning: Advising agencies on talent management, diversity, equity, and inclusion (DEI) initiatives.
  • Labor Relations & Employee Rights: Supporting policies for collective bargaining, employee disputes, and workplace protections.
  • Training & Leadership Development: Providing federal leadership training and workforce development programs.

Mission and Goals

OPM’s mission is to ensure the U.S. government has an effective and diverse workforce that serves the American public efficiently. The agency’s goals include:

  • Modernizing federal HR practices to improve recruitment, retention, and workforce management.
  • Enhancing employee benefits and retirement programs to support a strong federal workforce.
  • Improving security clearance processes to ensure the integrity of government personnel.
  • Strengthening cybersecurity and data protection for federal HR systems.
  • Advancing diversity, equity, inclusion, and accessibility (DEIA) across federal agencies.

OPM Organization

OPM is structured into multiple offices and program divisions, including:

  • Federal Employee Insurance Operations (FEIO): Manages healthcare, dental, vision, and life insurance for federal employees.
  • Retirement Services (RS): Administers federal retirement benefits and pension programs.
  • Suitability Executive Agent (SuitEA): Oversees personnel background investigations and security clearance policies.
  • Human Resources Solutions (HRS): Provides HR consulting, training, and technology support to agencies.
  • Office of the Chief Information Officer (OCIO): Handles IT infrastructure, cybersecurity, and digital transformation projects.
  • Merit System Accountability and Compliance (MSAC): Ensures agencies follow fair hiring practices and employment policies.

Advancing Your Career as a Contractor with OPM

Helpful Tips for IT Professionals and Consultants:

  • Understand OPM’s HR and IT Landscape: Contractors should align their services with federal HR modernization, cybersecurity, and personnel management initiatives.
  • Stay Current with Government Procurement Guidelines: OPM follows Federal Acquisition Regulations (FAR), particularly FAR Part 12 (Commercial Products & Services) and FAR Part 15 (Contracting by Negotiation).
  • Master OPM’s HR and IT Systems: Gain expertise in platforms such as:
    • USAJOBS (https://www.usajobs.gov/) – Federal hiring and job application platform.
    • Enterprise Human Resources Integration (EHRI) – System for managing federal workforce data.
    • e-QIP (Electronic Questionnaires for Investigations Processing) – System for security clearance applications.
    • OPM Data Portal (https://www.opm.gov/data/) – Workforce data analytics and HR reports.
  • Prioritize Cybersecurity and Data Protection: OPM contractors must follow NIST 800-171, FISMA (Federal Information Security Modernization Act), and Zero Trust Architecture principles.
  • Effective Communication with HR and IT Stakeholders: Many contracts involve working with HR policy experts, benefits administrators, and IT teams.
  • Agile and Cloud-Based HR Solutions: OPM is investing in HR automation, AI-driven recruitment, and cloud-based personnel systems—contractors should be proficient in modern HR tech.
  • Continuous Learning and Professional Development: Stay informed on federal workforce trends, pay and benefits policy updates, and HR tech innovations.
  • Networking and Collaboration: Attend OPM industry briefings, HR technology summits, and federal IT contractor events.
  • Focus on User-Centered Digital Services: Many OPM projects require accessible, mobile-friendly HR platforms for employees and job seekers.
  • Document and Share Knowledge: Maintain thorough documentation of HR system enhancements, data privacy measures, and compliance processes.

Helpful Links for Contractors: