“Top Five” Due Diligence Background Checks

Background Check Number One   

IS THE COMPANY A LEGITIMATE BUSINESS, WITH THE CREDENTIALS AND EXPERIENCE IT CLAIMS IN ITS BID OR PROPOSAL?  Many companies involved in corrupt or fraudulent practices are shell companies, organized solely for the purpose of obtaining fraudulent contracts, without any staff or permanent business premises.  The following checks will help identify them:

  • Does the firm have a website or appear on the Internet, in a manner consistent with its purported size and experience, and the firm’s representations in its bid or proposal?
  • Is the firm listed in on-line or hard copy telephone, business or Chamber of Commerce directories, appropriate to its claims?
  • Are the company’s listed address and telephone numbers correct?   Do reverse address and telephone searches to identify the real persons or companies listed at the address or telephone number.
  • Use map and satellite photo sites where available to view the purported premises.

Primary sources of information:

On-site background checks for smaller or local firms not listed on the Internet:

  • Call and visit purported business location; check local telephone, business and corporate directories.

Background Check Number Two 

HAS THE FIRM OR INDIVIDUAL BEEN THE SUBJECT OF DEBARMENT, SUSPENSION, INVESTIGATION, LEGAL ACTION OR NEGATIVE PUBLICITY? Primary sources of informaton:

On-site background checks for smaller or local firms not listed on the Internet:

  • Check with prior clients, employers and donors, local NGO’s and trade associations and local media sources.

Background Check Number Three  

DOES THE FIRM HAVE THE CAPACITY (EXPERIENCE, PERSONNEL AND RESOURCES) TO DO THE PROPOSED WORK? Primary sources of information:

  • Check if a bidder, contractor or consultant has the necessary experience and resources to perform the proposed contract:

On-site background checks for smaller or local firms not listed on the Internet:

  • Check references with prior employers and donors, local business directories and trade associations.

Background Check Number Four

DOES A PROPOSED CONSULTANT HAVE THE EDUCATIONAL CREDENTIALS AND EXPERIENCE CLAIMED IN HIS OR HER CV? Primary sources of information:

On-site background checks for smaller or local firms not listed on the Internet:

  • Check references and contact prior supervisors and colleagues of the proposed consultant or staff member.

Background Check Number Five  

DO FURTHER BACKGROUND CHECKS ON FIRMS AND INDIVIDUALS WHO ARE THE SUBJECT OF ALLEGATIONS OR CONCERNS.  Primary sources of information:

On-site background checks on individuals not listed on the Internet:

  • Check local public records and contact witnesses familiar with the subject.