Feds Say Total Amount of McKinsey Contracts is Over $100M

A sign of U.S.-based McKinsey & Company management consulting firm in Geneva on April 12, 2022. Fabrice Coffrini/AFP via Getty Images

The amount of money the federal government spent on consulting firm McKinsey is much higher than what was reported in the media in recent days, with officials indicating this week it has topped $100 million.

Public broadcaster CBC had reported the Trudeau government awarded the U.S. multinational McKinsey $66 million in contracts since taking power in 2015, a dramatic increase over previous years under the Harper government.

Public Services and Procurement Canada (PSPC) indicated the exact amount is $101.4 million in a statement on Jan. 17.

It says that 23 contracts were awarded to the firm since 2015, three of which through open competition for a value of $55.8 million.

Another 18 contracts valued at $45.6 million were undertaken under a “National Master Standing Offer [NMSO] designed to provide access to proprietary benchmarking methodologies offered by the private sector.”

PSPC says only McKinsey provides this type of benchmarking service which aims to measure the performance of federal entities against similar Canadian and international organizations.

PSPC noted only two sole-source contracts awarded outside the NMSO, one for $24,860 and the other for zero dollars, since no task authorization has been issued yet against the contract.

The revelation comes just prior to a Jan. 18 meeting of the House of Commons government operations committee related to the matter.

“The contracts awarded to McKinsey & Company consulting firm over the past seven years demand this committee’s immediate attention,” wrote opposition MPs on the committee in a letter requesting the meeting.

A study will likely ensue following a vote, with the committee being composed of five Liberals and six opposition MPs.

Conservative Party Leader Pierre Poilievre said on Jan. 10 he wants the study to find out “what influence McKinsey has had in our government.”

He was echoed on the same day by Bloc Québécois Leader Yves-François who said he was concerned about McKinsey having influence on policy decisions, notably in the field of immigration.

Neither called for a public inquiry at this stage.

Prime Minister Justin Trudeau said on Jan. 11 that he asked the responsible ministers to look into the contracts and that rules would be changed if needed.

McKinsey, which employs 35,000 people in 67 countries, has defended its track record in two statements released in recent days and says it doesn’t influence government policy.

“While our work for Canadian government departments has increased in recent years, along with a growth in consulting outsourcing more generally, there have been inaccuracies expressed related to how we were contracted and the nature of our work,” the firm said in a Jan. 10 statement, adding that all relevant procurement laws were followed.

“Our government work in Canada is entirely non-partisan in nature and focuses on core management topics, such as digitization and operations improvement. Our firm does not make policy recommendations on immigration or any other topic.”

A statement provided by the firm via email on Jan. 17 also says McKinsey is a minor player in the business of consulting services for the federal government when compared to other similar companies.