Identify collusion with Vendor during contract award using pattern analysis

The Client – The client is a well-known infrastructure company headquartered in New Delhi.

The Scope – The company awards about 1000 contracts a month across all business units. They wanted to identify suspicious transactions so that in-depth investigation can be done for about 5% of all transactions.

The Solution – 

Our analysis included

  • Detection of related-party transactions and conflict of interest during Contract award
  • Detection of information leakage  during Contract award process by looking at bidding pattern

  • Identification of split contracts and purchase orders (Multiple orders to a Vendor within a short period of time)

  • Contract awarded to Vendors with past quality issues (in another location or unit)

  • Identification of suspicious transactions through a group of indicators. For e.g : Big order awarded  to small Vendor

The Outcome – 

  • Early Identification of potential fraud of significant value  using data analytics  (Use to take 1.5 years instead of weeks)

  • Proactive investigation of suspicious cases instead of re-active investigation

    • Use cases that require analysis of large volumes of data

    • Use cases that require real-time alerts