McKinsey Withdraws $1.5 Million Long Island Master Plan Proposal

HAUPPAUGE, N.Y., 25 June 2008 --McKinsey has abruptly withdrawn its $1.5 million proposal to prepare a master plan for the Long Island Regional Planning Board (LIRPB), according to a Newsday report.

The firm reportedly pulled its proposal after the board signaled that it would rescind its intentions to engage McKinsey for the project, and would put the project out to national bid once again. The original proposal submission deadline had been 7 May.

McKinsey had the inside track on the project because the Rauch Foundation and other local non-profits had agreed to fund $500,000 of the project fee, but only if McKinsey was selected to do the work. The planning board recently held its first session without longtime director, Lee Koppelman, who served as the board's executive director from its 1965 founding until he resigned under pressure in May.

McKinsey led a recently completed similar project for New York City, and the expectation was that McKinsey could leverage much of what was learned in the Long Island plan. Newsday reported that Board Chairman John Cameron said the panel was disappointed that McKinsey's proposed project was not more like "PlaNYC," and had deliverables that were mostly strategic in nature. "We were looking forward to having a plan for Long Island that would be based somewhat on that plan ... and we wound up with something less than we wanted," said Cameron.

Issues that need to be addressed in the plan include: rising energy costs, improved public transportation, impacts of global warming, heavy local tax burdens, negative economic growth, jobs, ageing infrastructure, education consistency, affordable housing, water supply risks, segregation issues, open space, and air quality issues. LIRPB hopes to have new proposals in-hand and a decision made by September. Plan development is expected to take about 9 months. There has been no indication by McKinsey whether it will submit a revised bid. Newsday article