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A 'NEED TO KNOW' BASIS
In an April 11 contract in which McKinsey & Co. was hired to assess the state Department of Transportation, DOT officials promised to get written permission from McKinsey before they released any reports they received from McKinsey, or before they made public reference to McKinsey:
USE OF NAME AND REPORTS
In the event it is awarded a contract the Contractor may, in connection with the provision of services, furnish the State with reports, analyses or other such materials (the "Materials"). The State understands and agrees that any such Materials will be furnished solely for its internal use and may not be furnished in whole or in part to any person or entity other than as described in this Section without Contractor's prior written consent. The State may furnish Materials to any of the State's employees who (I) need to know such information, (II) are informed of the confidential nature of the Materials, and (III) agree to comply with the restrictions stated in this Section. The State further agrees that, without the Contractor's prior written consent, it shall not refer to Contractor or attribute any information to Contractor in any communication external to the State for any purpose, including without limitation in press releases or web sites. The provisions of this paragraph are subject to the requirements of the laws of the State of North Carolina, including, by way of example and not as a limitation, the North Carolina Public Records Act, N.C. General Statue[sic] Chapter 132.
BLACKED OUT
McKinsey & Co., a management consulting firm with offices in 51 countries, was one of a handful of firms that bid in March for a contract to evaluate the state Department of Transportation's structure and strategy.
McKinsey's proposal was incorporated into a pair of contracts it signed with DOT in April and in June for a total of $2.5 million. When DOT officials released the contract documents in response to a public records request from The News & Observer, most of McKinsey's proposal was blacked out.
The blacked-out information covered several pages. It included details about:
* The company.
* The specific employees who would oversee the DOT job.
* McKinsey's work plan for accomplishing what DOT wanted.
* How much money McKinsey wanted for its work.
Bid prices and work plans frequently are key elements in competitive bids for government contracts, which are public records under state law. An exception in the public records law allows a bidder to request confidentiality for information it deems a trade secret.
A DOT official said McKinsey requested the action because it considered the information proprietary.
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