Reviewing Contracts to Recover Overpayments
The CONTRACT Confidential Difference
Contract Confidential has developed a structured approach to reviewing contracts that is effective and efficient. It employs advanced auditing techniques and financial analysis to select contracts with the greatest potential for overbillings. By focusing on the most vulnerable contract components, we can also reduce the time required to identify significant opportunities.
- Root cause analysis
- Computer Aided Auditing Techniques
- Trend analysis
- Risk analysis
- Vendor history
Key Focus Areas
- Amendments (Price Changes)
- Volume discounts
- Double billings
- Overhead allocations
- Unallowable charges
- Service Level Agreements
- Unaddressed issues
Once an issue has been identified, Contract Confidential will create a support package that clearly demonstrates the overbilling. Most contracts for reoccurring services allow government agencies to recover overpayments back from the start of the agreement, so we will test and review all invoices during the contract term to ensure the agencies receive the maximum benefit.
Although recovering overbillings can be a time-consuming and confrontational process, we have the knowledge and experience to obtain the maximum recovery amount without harming the vendor relationship. A strong support package will demonstrate the overbilling, and vendors will have the opportunity to support their invoices. When a corporation can not substantiate its invoices, it is incented to reimburse overpayments quickly in order to avoid legal action, penalties, and negative publicity that could encourage other customers to perform similar reviews.
Decrease costs - The project results in the identification of overbillings, repayment of overpayments, and reduced future costs as the correct, lower contract rates are applied
Rapid Return - Initial opportunities will be defined within one month, and overpayments are expected to be recouped within three to four months later
Low Risk - Fees are based on overpayments recouped and agreed upon future savings. There are no upfront costs or expenses until benefits are realized.
Non-Intrusive - The contract reviews require a limited amount of agency involvement and will have a minimal impact on internal staff.
Comprehensive - Services cover all components through the recover of overpayments, so the project is not complete until benefits are realized.