Data Analytics in Procurement Fraud Prevention

Abstract

The purpose of this research project is to explore the viability of detecting anomalies through using data analytics software as a tool in procurement fraud prevention and to analyze its potential policy implications on federal procurement stakeholders. According to a survey conducted in 2012 by the Association of Certified Fraud Examiners, organizations lose an estimated 5% of their revenues to fraud each year. In order to relate this estimate to the Department of Defense (DOD), this estimated percentage was applied to the requested DOD Fiscal Year 2013 budget of $613.9 billion outlined in the Fiscal Year 2013 Budget Overview, resulting in a projected total fraud loss of $30.7 billion. The use of data analytics software has the potential to not only detect fraudulent procurements, but also to help deter fraudulent activities before they occur. This research study results in a recommendation on the use of data analytics as a tool to detect anomalies that may indicate procurement fraud in DOD organizations.

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Document Details

Document Type
Technical Report
Publication Date
May 30, 2014
Accession Number
ADA626749

Entities

People

  • Raymond J. Lanclos Iii
  • Thurman B. Phillips

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Big Data
  • Business Administration
  • Contract Administration
  • Contracts
  • Data Analysis
  • Data Mining
  • Department Of Defense
  • Government Procurement
  • Governments
  • Information Science
  • National Governments
  • Network Science
  • Predictive Modeling
  • Procurement
  • Public Policy
  • Social Media

Fields of Study

  • Business

Readers

  • Defense Financial Management and Audit.
  • Defense Technology Research and Development.
  • Public Financial Management and Budgeting