Chess Consulting supports companies and legal counsel through forensic accounting, investigations, and dispute resolution by offering expert analysis and testimony on complex financial and regulatory matters. With an in-depth understanding of accounting principles, investigative techniques, and the litigation environment, we are well positioned to analyze financial data and assist clients in resolving disputes.
Government Contracting
Government contractors frequently face disputes with government agencies or other contractors involving complex accounting and pricing issues. These matters often require expert consulting or testimony. Chess Consulting provides recognized experts in government contract cost accounting and regulatory matters, helping clients present clear, credible positions in audit responses, claims, and dispute proceedings.
Damage Analysis
Accurately quantifying economic damages is critical to resolving commercial and government contract disputes. Poorly supported damage calculations can undermine credibility and weaken litigation or settlement positions. Chess Consulting provides expert damage analysis and testimony involving lost profits, construction claims, cost impacts, government contract claims, and False Claims Act matters. We deliver clear, defensible findings to support negotiations, mediation, arbitration, and litigation.
Bid Protests
Bid protests are a common feature of the federal procurement process and can materially affect contract awards. Weak analytical support can limit the effectiveness of a protest or defense. Chess Consulting provides cost and pricing analysis, cost proposal assessments, and expert insights to assist outside counsel in proceedings before the GAO and the Court of Federal Claims.
Purchase/Sale Transactions
Disputes arising from mergers and acquisitions often involve disagreements over final working capital adjustments, purchase price mechanisms, and earn-out arrangements. Without a supportable accounting analysis, these disputes can increase financial exposure, prolong negotiations or litigation, and undermine deal economics. Chess Consulting provides expert financial accounting and analytical support for transaction-related disputes, helping clients achieve favorable outcomes through well-supported, objective analyses.
Forensic Accounting
Forensic accounting is critical when organizations face accounting errors, irregularities, allegations of misconduct, regulatory scrutiny, or financial disputes. Incomplete or unclear financial records can undermine credibility, increase exposure, and erode stakeholder confidence. Chess Consulting conducts forensic accounting investigations to reconstruct financial activity, identify errors or irregularities, and assess compliance with reporting standards, delivering clear, well-supported findings that withstand scrutiny in legal, regulatory, and internal review settings.
Complex Accounting and SEC Regulations
SEC investigations and disputes require deep technical accounting expertise and a thorough understanding of regulatory requirements. Poorly supported positions can increase enforcement risk and regulatory exposure. Chess Consulting performs independent expert analysis on accounting and financial reporting matters and works closely with outside counsel and boards of directors to deliver clear, defensible analyses that withstand regulatory scrutiny.
False Claims Act
False Claims Act investigations and litigation present significant financial, legal, and reputational risks. Accurately evaluating allegations and assessing potential damages are critical to effective resolution. Chess Consulting provides expert forensic accounting and damages analysis to support clients through internal investigations, government inquiries, and legal proceedings, helping develop clear, well-supported positions.
Voluntary Disclosures
Voluntary disclosures to regulatory agencies demonstrate a commitment to transparency and compliance. Poorly prepared disclosures, however, can increase scrutiny and regulatory risk. Chess Consulting works closely with legal counsel and management to conduct internal reviews, assess financial impacts, and prepare accurate, well-documented submissions that support clear, defensible outcomes.
Foreign Corrupt Practices Act (FCPA)
Foreign Corrupt Practices Act matters require specialized expertise in forensic accounting, internal controls, and regulatory compliance. Failure to identify and remediate issues can lead to significant penalties and reputational harm. Chess Consulting supports clients with FCPA investigations, litigation, and compliance by assessing risk, investigating allegations of improper conduct, and strengthening internal controls to mitigate ongoing regulatory and operational exposure.
Recently, the Government Accountability Office (“GAO”) released a bid protest decision concerning deciBel Research, Inc. (“deciBel”) protesting the Missile Defense Agency’s (“MDA”) award of a contract to IERUS. deciBel protested the agency’s cost realism evaluation of their own contract. In their evaluation, the MDA evaluated deciBel’s proposed cost to be unrealistic. The agency found that deciBel’s proposed labor hours were too low to support overlapping test events, phases, and the required level of radar analysis and that deciBel relied on outdated historical data.
On May 4, 2024, the Armed Services Board of Contract Appeals (“ASBCA”) awarded nearly $4.9 million in damages plus Contract Disputes Act interest to Konecranes Nuclear Equipment Services, LLC (“Konecranes”) due to a breach of contract by the Navy. The breach of contract stems from the Navy’s unjust refusal of a delivery of cranes that met contractual requirements.
Since its enactment in 1975, Rule 702 of the Federal Rules of Evidence has sought to redirect standards for the admission of expert testimony from a focus on “general acceptance in the profession” to one that places a greater emphasis on whether it is “scientifically valid and properly…applied to the facts at issue.” Amendments enacted in 2000 and 2011 have sought to clarify how judges are to assess the reliability of proffered testimony, either through the addition of factors to be considered (e.g., the Daubert standard, which also charged judges to serve as gatekeepers to exclude unreliable expert testimony) or by making the rule more easily understood and consistently applied.
As commercial damages consultants, one question we are always asked when meeting with a potential new client is “What are your hourly billing rates?” It is certainly a reasonable inquiry, and we dutifully provide the answer. In many instances, a “go/no go” decision may be reached right then and there, as the client may only view the choice of an expert as a litigation accessory or option. However, such thinking does not allow for an assessment of the benefit side of what is really a value proposition. In this article, we discuss avenues of inquiry that can be explored to identify factors or traits that, along with the cost of retention, can yield a more informed decision.