In performing the due diligence and site investigation for a project proposal, you discover an obscure detail that, if revealed, could increase the total project cost considerably. And no Request for Information (RFI) has been identified as related to this detail. This is important because the Request for Proposal is to modify a length of railroad to accommodate the newer model of trains with longer rail cars. Note the length of railroad includes a tunnel 3,000 feet long that curves steadily through a mountain.

The detail you discover is associated with the tunnel through the mountain. The tunnel entrance is fairly larger than the older (and newer) railcars. However inside the mountain, the tunnel reduces in size in a way that is not obvious. The reduction in size works for the shorter, older railcars, but NOT for the longer new railcars. The tunnel would need to be about 8 inches larger on the inside of the curve to accommodate the longer new rail cars. The tunnel would need to be replaced at great cost to the client, with whom your company has done business for 10 years.

It has become known that your primary competitor is the favored company to win the contract. Also, your boss has a very close personal and professional relationship with the client. This offers a unique business opportunity.

When you bring this information to the attention of your boss, he asks for more details. He also asks for suggested wording that could be added to the proposal/contract to restrict any changes to contract, based on any findings that might arise during the performance of the contract. Basically, he intends to secretly inform the client of the situation, while proposing a change to the proposal / contract document to make it a Fixed Price Lump Sum performance contract. His intent is to cause the contractor who wins the contract to swallow a “poison pill”.

Question:

Step by step, use the PMI Ethical Decision-Making Framework to delineate the process that your boss should have used to make his decision.

Answer rating: 100% (QA)

ANSWER Step 1 Your boss should have first considered the stakeholders in this situation and their interests The stakeholders in this situation include ... View the full answer