Friday, August 22, 2014

Indianapolis to Pay Hourly Rate to Consultant Far in Excess of What Other Cities Are Paying

One of the seven consulting contracts signed by the Ballard administration to promote the proposed Justice Center is with KPMG Corporate Finance, LLC.  The cap on the contract (which assuredly will be hit) is $3,000,000 with an hourly rate $212.50 which is to rise to $637.50 an hour if the deal is closed.  That $637.50 rate translates into $10.63 every minute.  The $212.50 and $637.50 rates, by the way are for ALL employees, even clerical.

Let's look at what cities are paying KPMG in contracts I found online.  I have also included the approximate date of the contract)

Chicago: (8/2014)  $90 an hour

Idaho:  (2012) $250 an hour

Dallas:  (2007) $190 an hour

Portland: (2002) $120 an hour, $145 after January 1, 2013

The only comparable KPMG contract I could find on line was one with the State of Indiana which paid KPMG $4.5 million and had hourly rates as follows:  Managing Director $655, Director $560, Associate Director/VP $470, Associate $380, Clerical $150.  The contract ran from 2006 to 2009 with hourly fees increasing every year. The amount cited is for the 2009 year.

It is true that the work in each of these contracts are different.  But it is not clear why that in the Indianapolis is so much more complex that it involves a much higher rate.


Indy Rob said...

If the work is more complex, there are more billable hours.

Jon said...

Is it so complex that clerical staff receive 212.50 top 637.50 an hour? Let's start with the premise that these contracts are bogus since we are letting contracts without city council preview.