FINANCIAL FORENSICS DATE: JUN 2025

Procurement Integrity:
LCC Audit Secures 30-Year Value

The Mission: A large public utility was about to award a contract to the lowest bidder. Our objective: Prove the hidden long-term costs of "cheap" components and prevent a guaranteed failure.

MISSION STATUS:
VETOED
LCC Savings
18%

Over 30 Years

Risks Remaining
0

Corrosion Eliminated

Guaranteed Life
30+

Years

01 The Threat Vector

The winning bid was 20% cheaper than the competition. However, our pre-contract audit revealed that this low CapEx price was achieved by specifying suboptimal materials. Specifically, the supplier proposed mixing incompatible metals in a high-moisture environment.

> RISK DETECTED: GALVANIC CORROSION
> CONSEQUENCE: COMPONENT FAILURE IN < 7 YEARS

02 Tactical Execution

We deployed the AnoHUB LCC Protocol to validate the financial reality:

  • LCC Modeling Developed a verifiable financial model demonstrating that the "low bid" would actually result in 18% higher costs over 30 years due to mandatory maintenance and downtime.
  • Material Compatibility Audit Identified the precise chemical risk of galvanic corrosion linked to the proposed material mixing (Carbon Steel vs. Brass), validating the Veto decision.
  • Procurement Veto Provided the executive team with irrefutable data to reject the low-bid contract in favor of a provider guaranteeing 30-year material integrity.
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