While Federal Health agencies lean on McKinsey, GSA terminates their schedule contract

“The General Services Administration has terminated the multiple award schedule contract of McKinsey and Company.”

“The company and the agency’s inspector general confirmed GSA’s decision in separate emails to Federal News Network.”

“The decision comes 10 months after a critical inspector general report found McKinsey’s prices were 10% higher than originally proposed, meaning the government paid as much as $65 million in additional costs.”

“The IG recommended at the time to cancel McKinsey’s schedule contract in part because they didn’t cooperate with the pre-award audit.”

“We are disappointed with the GSA’s decision, and that a GSA schedule is not available to our clients at this time,” a McKinsey spokesman said in an email statement. “We attempted to negotiate in good faith and disagree with the GSA’s evaluation. We will nevertheless continue to serve the public sector in the United States.”…”

“…This is the first time GSA canceled a major vendor’s schedule contract since 2012 when it kicked Oracle off of the IT Schedule 70.”

Read the full article here.

Source: GSA terminates McKinsey & Co.’s schedule contract – By Jason Miller, May 19, 2020. Federal News Network.

G2X TAKE: Almost a year after an inspector general report found their prices were higher than originally proposed, attempts to negotiate a resolution appear to have failed as GSA has terminated McKinsey’s multiple award schedule contract. 

If recent history is any indicator, Federal Health agencies are likely to still rely heavily on this consulting firm by leveraging other vehicles, though competitors will be weighing the impact of this action. 

Recent related news

Included below is a snapshot of Prime obligated funds for McKinsey for GSA Schedules IT-70 and 00Corp.  

 

Federal contracting data provided to G2Xchange by Federal Compass; Date: May 2020

0
Tags:

This topic contains 1 reply, has 2 voices, and was last updated by  Anonymous 1 week ago.

  • Author
    Posts
  • #74123
     Heather Seftel-Kirk
    • Writer
    • G2Xchange

    Replies viewable by members only

    0
  • #74139

    Replies viewable by members only

    0

You must be logged in to reply to this topic.

CONTACT US

Questions?. Send us an email and we'll get back to you, asap.

Sending

©2020 G2Xchange all rights reserved (new) | Community and Member Guidelines | Privacy Policy | About G2Xchange Health

Federal Government Employees Join Free

As a special thank you to all the federal agencies that have been supportive of our efforts over the years we offer a free individual membership to Federal Government employees.  Membership includes:


Full Access to the G2Xchange Health website, including exclusive member content.

Access to Forums, Comments, and Discussions

Member Directory

Private Messaging

The G2Xchange Health Daily Take Newsletter which includes the latest intelligence, news, and happenings from across the Federal Health IT Market.

Exclusive Discounts on G2Xchange Events and G2Xchange Partner Events.

Click Here to Join


THANK YOU
FOR YOUR
SUPPORT


Opportunities. Starting Points.

About our Data

The Vault is a listing of expiring contracts, task orders, etc. within a certain set of parameters, to include:

  • Have an initial total estimated contract value of $10 million or above
  • Federal Health Only – MHS/DHA, HHS, CMS, or VA Actions
  • NAICS codes include: 511210, 518210, 519130, 519190, 541511,
    541512, 
    541513, 541519, 541611, 541618,
    541690, 541720, 541990
  • Were modified within the last 12 calendar months
  • The data represented is based on information provided by the government

Who has access? Please note that ALL G2Xchange Health Members will receive access to all basic and much of the advanced data. G2Xchange Health Corporate Members will receive access to ALL Vault content (basic and advanced).

Feedback/Suggestions? Contact us at Vault@G2Xchange.com and let us know what you think. 

G2Xchange Health

Log in with your credentials
for G2Xchange Health

Forgot your details?