Case Study: a global defense company achieves near real-time risk visibility and improved profitability with AlixPartners' Data Activation Solutions

Global Defense Company cuts $1B in negative EAC exposure with AlixPartners

A global defense company faced significant challenges after the industry shifted from cost-plus to fixed-price contracts, which exposed $1 billion in annual negative Estimate at Completion (EAC) exposure. Its operations were hindered by fragmented data across hundreds of global programs, relying on dozens of disconnected systems and manual reporting. AlixPartners was engaged to tackle these cost overruns and transform its approach to tracking risk.

AlixPartners deployed its Data Activation Solutions (DAS) platform to unify the client's disparate data and integrate decision-making. The solution used an AI layer to scan for risks and flag them for early intervention, shifting the company from reactive reporting to predictive management. The results included a reduction in negative EAC exposure, dramatically cut manual reporting efforts, and provided leadership with a single, consistent view of program health for improved financial forecasting and risk management.

Global Defense Company