Hi there,
We’ve just published a story looking at how the NSW Government is attempting to rein in its consultant spend.
The state government has a procurement framework that includes a schedule of capped rates, a discount structure around team size and duration, capped expenses and a target resource mix of junior and senior staff.
It specifies that the maximum daily rate the state will pay for a "government and business strategy" partner is about $4000. More details in the story, Revealed: the maximum rates NSW will pay for consultants (paywall).
This follows on from another story last month about the Services Australia contract between the Federal Government and McKinsey and KPMG that revealed the strategy firm’s “typical commercial rate” (paywall).
In July, I also wrote about independent consultants who were available at “almost half the $12,000 to $15,000 a day they charged in a branded strategy firm” (paywall).
I’m now looking at what the firms (well, the firms that refuse to comply with the caps) think of the daily limits.
Yours,
Ed.