Briefing

General Services Administration kicks McKinsey & Company to the curb

article-aa

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)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

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.