Nexus Human Capital Management Modernization

The Defense Information Systems Agency (DISA) has issued a Special Notice announcing its intent to negotiate a sole source contract with KPMG LLP for the Nexus Human Capital Management Modernization project. This initiative represents a comprehensive effort to transform DISA's human resources information technology services into a full lifecycle Human Capital Management System (HCMS). The modernization effort supports DISA's Workforce 2025 initiative, aligns with the Office of Management and Budget's Cloud Smart strategy, and implements the Department of Defense's Software Modernization Strategy through commercial partnerships and cloud adoption. The current contract under the Air Force Strategic Transformation Services vehicle, valued at $39,233,247, is being terminated early due to a Department of Government Efficiency review, necessitating this sole source procurement action. DISA will coordinate a sole source Justification & Approval document and post it on SAM.gov to comply with public display requirements.

The primary objective of this Special Notice is to modernize DISA's HR processes by addressing critical pain points including non-standard processes, inefficient hiring procedures, and data interoperability challenges through a cloud-based platform incorporating artificial intelligence and automation. The proposed contract period spans from September 30, 2025, to December 16, 2027, with interested companies required to submit capability statements within 15 days of the notice posting date of June 25, 2025. Contractors must possess Secret safeguarding clearance and Secret facility clearance to be eligible for participation. KPMG LLP has already completed seven of 70 planned developmental sprints and possesses critical domain knowledge that would be difficult and costly to replace, making them the sole source candidate. The project will utilize a Scaled Agile Framework to incrementively deliver enhanced capabilities including workforce analytics, automated workflows, system integrations, and comprehensive employee and HR professional portals while meeting Risk Management Framework compliance requirements and obtaining Authority to Test at Impact Level 4.