Partner spotlight
Microsoft partner Wipfli brings technical, cultural skills to identify corruption
Corruption can rear its head anywhere and comes in many forms.
That is why Microsoft ACTS—our initiative aimed at mobilizing the power of data to assist governments in bending the curve of corruption—is collaborating with partners to deploy technology that can make an impact. One key partner is Wipfli, a consulting firm headquartered in Wisconsin.
A key component of anti-corruption efforts is bringing specific issues out of the shadows using data: data to identify patterns, alert for early interventions, and understand impact.
Wipfli piloted a data tool—built on Microsoft Azure—that can uncover a common form of corruption: bid rigging.
Potential collusion may include no-bid contracts, change-order abuse raising the price of a project after the bidding phase, bidder exclusion, and more. Part of what makes bid rigging easy to orchestrate is that government agencies often have little idea of what a project should cost, making it easy for unscrupulous contractors and government employees to manipulate the bidding process.
Know the right price for projects
Wipfli’s technical team identified the need for and assembled a “pricing book” as part of the “red flag” proof of concept (POC). It can assist governments in detecting potential irregularities or corruption, increasing transparency, and promoting integrity. Leveraging years of data from contracts purchasing goods and services, Wipfli’s team employed statistical analysis to create the pricing book dynamically. Along the way, this research also provided insights on the quality of the data and future areas that could be ripe for improvements. The POC deployments demonstrate that modern technology approaches can generate innovative insights into potentially corrupt practices.
The pricing book enables a more proactive analysis approach than was previously possible. It outlines the historical fair-market price range for projects ranging from school construction to road repair to sewage services.
With that information in hand and using Microsoft Azure and machine learning tools, Wipfli combed through active and past contracting information to see where potential corruption could be identified before it takes place.
Pictured above: Luis Murgas, Principal at Wipfli.
Wipfli’s POC is capable of rapidly searching vast amounts of data for suspicious transactions or bids. “We use a collection of algorithms to analyze all the contracts occurring in a country and highlighting those that should be checked for irregularities,” says Luis Murgas, Principal at Wipfli.
In one example, a would-be bidder might submit multiple small bids for a large project to evade automatic reviews for any bids over established thresholds. “A contractor will say to an official he’s scheming with, ‘I’ll break the contract in two and offer it directly to you,’” Murgas says. “‘But in exchange, I want a percentage back from that contract’.”
Now, the Wipfli-created analytics solution compares bids to the known value of a project and looks for discrepancies that hint at wrongdoing.
The Microsoft Azure data and analytics toolset has proven to be a fast, scalable, affordable, and transferable solution. It is ideal for working through large datasets, iterating through the evolving anti-corruption scenarios, and engaging end users to convert information into action.
Wipfli continues to work on additional scenarios to help organizations combat abuses in finances and other areas. They are also combining disciplines from user experience, usability, and design thinking to find ways to tell better data stories that trigger action.
“When innovative technology - machine-learning in this case - can be applied to old problems, we are able to provide critical new capabilities to spot potential corrupt activity.”
Norman Hodne
Director of Program Management, Microsoft ACTS
Wipfli offers deep set of skills; named Microsoft Partner of the Year for the Nonprofit Industry
For Microsoft ACTS, Wipfli’s team offers a combination of skills ideal for work in Latin America. They have proficient Spanish-language speakers and can connect quickly with customers, making it easier to conduct business. Beyond that, Wipfli’s deep technical knowledge and familiarity with Microsoft tools allows it to develop innovative, flexible solutions for a wide range of accounting and tax situations.
“Wipfli pulled in all that pricing information and ran machine-learning algorithms against it and came up with a pricing model for all of the services and goods that the government buys,” says Norman Hodne, Director of Program Management, Microsoft ACTS. “When innovative technology—machine-learning in this case—can be applied to old problems, we are able to provide critical new capabilities to spot potential corrupt activity.”
Corruption within government contracts does more than enrich corrupt contractors and officials. It diverts money from new roads, schools, clinics, and other essential pieces of infrastructure that benefit society as a whole. Partnering with Wipfli, Microsoft ACTS has taken a step toward supporting governments’ efforts to ensure resources are allocated to the people who need them most.
As a testament to the work Wipfli performs for organizations around the world, it was named Microsoft 2021 Nonprofit Partner of the Year. “The ACTS initiative is a showcase of the intentional focus and ethos of our team and our alignment with values illustrated in the United Nations’ Sustainable Development Goal #16: Peace, Justice and Strong Institutions. It’s an honor to be recognized for the role we are able to serve in these critical initiatives,” says Ryan Risley, Principal at Wipfli.
Wipfli’s deep technical expertise combined with its desire to create a positive impact, leading with empathy and human-centered design concepts, makes it an ideal partner to help move Microsoft ACTS’ anti-corruption initiatives forward.