General Services Administration kicks McKinsey & Company to the curb


The GSA, the contracting and federal property management arm of the U.S. government, has terminated a contract with the consulting firm. The move comes 10 months after an inspector general report recommended as much, saying “improper pricing” on the part of McKinsey may have cost the U.S. government US$69 million more than originally proposed. The GSA said the cancellation came after not being able to renegotiate better pricing. (Federal News Network)

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Talking point: The cancellation, the first of its kind at the GSA since 2012, is a black mark for the blue-chip global consulting firm. The inspector general launched a full-scale audit after McKinsey refused to provide records, and it determined that McKinsey’s pricing was at least 10 per cent higher than its proposed rates.