Will New York’s Big Socialist Climate Policy Be Led by … McKinsey?

McKinsey’s role in everything from the opioid crisis to the Puerto Rican economy have generated considerable controversy and even cost them work with the federal government. Still, “the firm,” as it’s known, continues to play a major role in advising government agencies the world over, in some cases providing a rubber stamp for austerity plans and helping—over time—sap those agencies of their own expertise. McKinsey’s work with governments, in particular, has garnered a reputation for dispatching bushy-eyed, handsomely paid consultants to public sectors the world over to “rightsize” operations, often pushing for privatization and harsh cuts to vital social services and benefits.

Public procurement reports published each year by NYPA detail the contracts the Authority enters into for everything from IT support to construction, parts and consultant services. The most recent report shows that its current overall contract with McKinsey, for “consulting support services,” began in July 2019 and is scheduled to end this coming July. It’s currently valued at $9.7 million. A NYPA spokesperson declined to comment as to whether McKinsey’s work with NYPA on renewables was part of that broader contract or a new one, or about whether the Authority planned to enter into another contract with McKinsey after that one expires.

NYPA has large contracts with other major consultancies, as well, including Ernst & Young (EY), KPMG and PwC. Currently, it has $40 million worth of active contracts for a range of services with Deloitte, many of which span multiple years. Those include a six year, $21.5 million contract for IT consulting sourcing services as well a five year, $3.5 million contract for “diversity, equity, and inclusion services.”