That's assuming that the result of this will be to switch away from PeopleSoft.
I think enterprise software in this vein used to have a quasi-monopoly due to the sheer work required to build software of its size (not enough engineers exist in the government to do so), and the difficulty for competitors to enter regulated markets and so pretty much 1-2 options to choose from.
AI now makes it possible to build this kind of software in-house, offering a 2nd choice, though it'll only be as good as the standards of the teams using it. Only time can tell.
Not even the FBI has hostage negotiators good enough to get you out of an Oracle contract.