The General Services Administration (GSA) is intensifying its review of federal consulting contracts to curb unnecessary spending. Six notable firms, including McKinsey & Co. and the Boston Consulting Group, have been approached to provide detailed insights into their contract costs and offer solutions for savings. GSA aims to differentiate between valuable external engagements and those better suited for internal management, emphasizing fiscal responsibility. Companies are encouraged to adopt outcome-based pricing models to demonstrate effectiveness and accountability in their services.
Our objective is to critically evaluate which engagements deliver genuine value and demonstrable returns to the American taxpayer, and therefore merit external support.
Essential continuing contracts must transition to outcome-based pricing tied to quantifiable deliverables. Consider shared-savings models where contractors demonstrate 'skin in the game'.
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