The US Government Needs Its McKinsey Fix
February 20, 2024
This essay is the work of a dumb dinobaby. No smart software required.
Governments don’t know how to spend their money wisely. Despite all its grandness, the United States has a deficit spending problem. According to Promarket, the US has a spends way too many tax dollars at McKinsey and Company: “Why The US Government Buys Overpriced Services From McKinsey.” McKinsey and Company is a consulting firm that provides organizations and the US government with advice on how to improve operations.
McKinsey is comparable to the IRS conducting a tax audit on the US government. The company is supposed to help the US implement social justice, diverse, and other political jargon into its business practices. The Clinton administration first purchased the over zealous services from McKinsey. Unfortunately McKinsey doesn’t do much other than repackage mediocre advice with an expensive price tag. How much does McKinsey charge for services? It’s a lot:
“Such practices used to be called “honest graft.” And let’s be clear, McKinsey’s services are very expensive. Back in August, I noted that McKinsey’s competitor, the Boston Consulting Group, charges the government $33,063.75/week for the time of a recent college grad to work as a contractor. Not to be outdone, McKinsey’s pricing is much much higher, with one McKinsey “business analyst”—someone with an undergraduate degree and no experience—lent to the government priced out at $56,707/week, or $2,948,764/year.”
McKinsey can charge outrageous prices because the company uses unethical tactics and they can stay because the General Services Administration gets a 0.75% cut of what contractors spend. It is officially called the “Industrial Funding Fee” or IFF. The GSA receives a larger operating budget whenever it outsources to contractors.
Will changes be made for the next fiscal year? Unlikely.
Whitney Grace’s February 20, 2024
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