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.”
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