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Pricing and Billing Investigation

United States

Brief

A major hardware and software developer and distributer had a United States General Services Administration (“GSA”) Schedule contract for the sale of software as well as software support and consulting services. GSA officials in 2007 alleged the developer was overbilling for software and services on the GSA Schedule, and an investigation was needed in order to determine whether there was merit to the allegation, and if so, what the cost implications were.

What we did

HKA experts were retained on three matters: United States ex rel. Rille and Roberts v. Clients A, B, and C.  On one of the matters we were retained by the developer to investigate its actual GSA Schedule pricing practices, including price lists and records of sales to Government and commercial customers for eight years.

Our experts worked with client Subject Matter Experts to understand historical sales and found discounts had been provided to non-GSA Schedule purchasers that triggered the Price Reduction Clause in the GSA Schedule contract.  When analyzed, our experts determined that product samples and promotions had in effect reduced the price to some non-GSA purchasers.  HKA experts analyzed over a million transactions of cost data to identify the lowest sale price for each product and service category in relevant time periods.   Our experts calculated the refund due to the government purchasers including the impact of the Industrial Funding Fee and interest.  HKA experts also assessed the developer’s internal controls over sales practices that had triggered the GSA contract’s Price Reduction Clause.

Outcomes

HKA experts calculated the refund due to the government purchasers including the impact of the Industrial Funding Fee and interest.  Our experts also assessed the developer’s internal controls over sales practices that had triggered the GSA contract’s Price Reduction Clause.

Project Details
  • Client
    Major Hardware and Software Developer and Distributor
  • Value
    Confidential
  • Services
    Government Contracts
  • Sectors
    Government Contracts