How much do the big consulting firms charge?

Factual Questions
1

Say the Grand Poobah of an organization such as the World Bank or USAID wanted to hire Booz Allen or a similar agency to provide a pair of consultants for a major new outreach effort (i.e., global in scope and reach). Not to run the program per se (i.e., not to do technical work), but to serve as advisers, coordinators, and general strategists over the course of a year or so, making sure all of the various project teams’ products achieve their communications goals and making sure that products aren’t created merely because of institutionalized momentum. Maybe throw in some occasional international travel and some liaisoning with the Grand Poobahs of several nations (as consultants, not as lobbyists, so no need to involve prominence in the mix). Any ideas about the size of the bill they’d be looking at?

Thanks,

Rhythm

2

I have seen bills for IT consulting from similar firms on the order of $200+ per hour for a fairly junior staff member ranging to $500 per hour for a partner. That’s a lot different from the engagement you’re describing, though. I’m not sure who would be qualified to even do it, but they would have to be very experienced and very specialized, so you’d be talking some very big dollars. Any such firm would doubtless try to convince you that “a pair” is not enough of a team, and a year is far too short. But a pair of consultants for a year is probably going to run you in the $2 million range (assuming $400/hour, 50-hours a week). If anything, that’s a lowball.

3

Your question is a bit like asking how much food costs, or how much parts costs – way to general.

4

Answering the question of what type of consultants will narrow the question a bit, but it’s way too general. Even if you said law firms, the type of work will also play a factor, because more typical business needs will have a more standard price, whereas customizable work can have prices leading through the roof.

5

Maybe you are right

  • then think lower
  • by the time you are really thinking stupid you’ll be there

Just because you are Dutch does not stop the British and the USA companies behaving like utter morons.

6

This sounds very familiar … I partnered with another small business firm to respond to a WB request for such a bid recently. Our budget consisted of $700/day for each consultant, plus all travel costs and a small amount for phone/fax/etc.

We didn’t win (aw shucks) but I’m sure that a too-extravagant budget wasn’t the reason, as both partners involved in the bid have some knowledge of the international consulting world and what prices one can reasonably ask. If anything, we were probably on the cheap side.

7

I’ve done RFPs - Requests for Proposal - and my wife manages major projects and works with consultants daily, so I have a great deal of experience with this issue.

And the answer is that it can take literally months of preparatory work to figure out what the scope of such a contract would be. You can’t throw out vague phrases like “consultant work for a year” and hope to come up with an estimate even in the right order of magnitude.

8

Hi all,

I’m trying awfully hard not to come across as coy here, but given the public nature of the forum, it really wouldn’t be prudent to delve into specifics. I sincerely hope you understand and forgive my reticence.

Not that there are any specifics yet. Part of my reason for posting so early was to try and get some general sense of things before moving forward. I completely understand (and expected) the speculative nature and vast amount of variables involved, but every little bit of insight helps.

Here’s the thing. It’s not the World Bank, nor is there any connection to the WB, but it (and USAID) serves as an example because the WB is an aid agency of similar size and reach.

The project is about as ill defined as can be. It’s a completely new issue. Well, not new per se, but new in the sense that everyone already knows that poor people have crappy shoelaces. But now this agency wants to do something about it–raise awareness, change legislation, etc. and wants to do so on a global scale. But they question the traditional institutional methods of doing so (i.e., “Hey look, a problem. Let’s write a 500 page report!” “No wait, let’s write a whole series of them!” and so on), and are considering bringing us in to oversee, coordinate, and advise from the initial stages through… through… all I know is the words “year long” were bandied about. And that’s about all I know at this point.

The other thing I know is how we (Mrs. Dvl and I work as a team) found ourselves in this position. A project we were working on for an unrelated agency caught someone’s attention. This person wanted us to come in for a meeting to talk about said project. Then that person’s boss got involved. Then that person’s boss, and so on up the food chain until we found ourselves in Grand Poobah Central. After about forty minutes or so, GP changed the subject, and we spent the next couple of hours talking about the new project. In essence, we outbid Booz Allen in Right Place/Time.

So, hence the OP. We’re not due to meet again for another few weeks, but the prep work/research is in full gear. We’re certainly not looking to gouge them; after all we chose long ago to focus our efforts in the nonprofit sector. Nor do we have the expectation of parity with BA’s fee structure (they’re not talking with us because we’re cheap, but we certainly don’t have delusions of grandeur). However, our typical per diem rates haven’t taken into account more than a five- or six-month projects or long-term full-time dedication to one client. And, while our skills and capabilities are not in doubt, we haven’t submitted a proposal for something at this overall level and scope.

So, as we move forward and head into the next meeting, we’re looking to gather as much insight and as many perceptions as possible–we certainly don’t want to be caught off guard.

Thanks,

Rhythm
(Who is desperately trying to avoid any premature chicken-counting, but has to be prepared)

9

There’s just two of you? And they want to monopolize your time for a year?

Congratulations.

Now come up with the largest number you can possibly think of, the one that makes you feel faint to put it on paper. Then add 50%. And expenses.

Next to what Booz Allen would have charged that number will be so small they won’t have to leave the room to approve it. :slight_smile:

10

I work for a medium sized consulting firm.

Generally speaking, in the particular practice I work in, associates bill at a rate between $180-$300 per hour. Senior Associates, Directors & Managing Directors go up from there… I recall that our MD billed at something like $600 for expert testimony.

Add in expenses such as travel, food, lodging, (generally American Airlines, mid-high priced local joints, and Hilton/W/Marriott type hotels), and you’re looking at pretty high prices.

Expect them to produce reams and reams of documentation, that may or may not be particularly useful. There is a certain amount of “make-work” that consulting companies indulge in for the sake of billing.