Issue:
A technology company backed by private equity was preparing to voluntarily disclose possible non-compliance with SBA set-aside terms and conditions to the US DOJ and US Small Business Administration (SBA) Office of Inspector General; the CEO and Board of Directors sought CRA’s expert assistance to prepare for and navigate this complex legal and regulatory situation. This included contextualizing the self-disclosure within the company’s journey toward enhanced compliance maturity.
CRA actions:
CRA Forensic Services professionals were engaged as an Independent Compliance Advisor to conduct a comprehensive global compliance assessment. Key actions included:
- Third-party risk management: establishment of robust protocols across a network of over 2,000 vendors and contractors.
- Investigation and risk mitigation: investigation into allegations of possible non-compliance, leveraging the findings to develop risk-based strategies aimed at achieving compliance with SBA government contracting requirements.
- Governance and policy review: assessment and evaluation of the company’s governance structures, policies, and operational compliance frameworks.
- Strategic roadmap development: creation of a comprehensive roadmap to further enhance the company’s compliance framework.
Impact:
The company confirmed that our engagement has yielded substantial business, legal, and regulatory benefits including:
- Legal outcomes: achieved favorable resolution in discussions with the government, bolstered by demonstrating a meaningful commitment to compliance.
- Business resilience: enhanced compliance effectiveness and fostered a culture of compliance across all business operations, thereby increasing resilience and establishing sustainable competitive advantage.
- Regulatory benefits: the company demonstrated proactive leadership throughout the design and implementation of a comprehensive global compliance program, positioning itself as a leader in regulatory adherence.
- Client and market trust: the compliance enhancements and successful regulatory outcomes provided a compelling success story for clients and potential buyers, as the company prepares for a liquidity event.
The engagement was led by Jeff Garfield, Vice President, with invaluable assistance from Pete Krusing, Associate Principal.
