Company employees at a United States shipbuilding manufacturer alerted management personnel to alleged irregularities in labor charging practices and progress reporting occurring on various U.S. government contracts.
Brief
The U.S. Navy and Coast Guard, and other investigative Governmental agencies, required clarification from the contractor about how long the irregularities had taken place, how many contracts were affected, and what the magnitude of the contractual impact may be.
What we did
HKA experts were retained to analyze cost accumulation and billing system data, conduct interviews of company personnel, and assess the estimated actual impact to contracts based on where potential labor mischarging should have been recorded. Our experts assisted the company with development and implementation of compliance measures for go-forward time-recording practices. After the initial phase of the investigation, HKA experts continued to assist with expansion of the investigation, including reviewing additional data and invoices and verification of the Government’s quantification of the impact on contracts.
Outcomes
HKA experts met with management personnel as well as multiple Government agencies (e.g., Navy, Coast Guard, DCAA, NCIS) to explain the investigation, present our findings, and answer questions. The client also implemented policies that were prepared with assistance from HKA experts.

"HKA experts were retained to analyze cost accumulation and billing system data, conduct interviews of company personnel, and assess the estimated actual impact to contracts based on where potential labor mischarging should have been recorded. "
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ClientU.S.-based Shipbuilder
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ValueConfidential
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ServicesGovernment Contracts
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SectorsIndustrial & Manufacturing
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