We have used density functional theory (DFT) calculations with plane wave basis VASP code to gain some insights into the oxygen reduction reaction (ORR) occurring on the cathode of the PEM fuel cell. For this, the most stable (111) surfaces of widely used Pt-based catalysts (like Pt, Pt3Co) are modeled. The adsorption of H2O to form a monolayer is found to be favorable on these surfaces, and Pt skin formation is predicted to be stable on Pt-transition metal alloys in the presence of water. The adsorption of various ORR intermediates on these surfaces is probed and the possible reaction pathways are identified. Results indicate that molecular oxygen dissociation is facile on most of these hydrated surfaces and the addition of first proton to form hydroxyl could be the rate limiting step. The first principles predictions are further correlated with the experimental electrochemical activity results of these Pt-based catalysts and a good fit is obtained. This approach can then be used to guide the development of new alloy combinations and compositions with improved ORR activity.