Gary Allison accepted a position at SEC
There were several issues that Garry Allison faced when he accepted the position as project manager for the company but everything started with him accepting that part of his job was not to be an "ethical manager". The technical specifications stated by for the project indicated that the components should be able to normally operate through temperature range of -65 degrees F to 145 degrees F. However, their testing design showed that the material would not function above 130 degrees F. This means that initially they already have a problem with the material. Taking this up to his boss Henry Larsen, Garry Allison already knew what he was asked to do. According to Larsen, "We're only in trouble if the customer finds out. Let the proposal state that the design will be operative up to 155 degrees. That'll please them. Look, Gary, the truth doesn't win proposals. I picked you to head up this effort because I thought that you'd understand. I could've just as easily selected an "ethical" project manager".
By being unethical, specifically that of not being honest to the customer created many problems for the company and most especially for Gary. In fact, this demonstrates that unethical practices have their own consequences for the persons who practice unethical practices but also for the organization.
Space Technology Industries awarded the Orion Shield Project to the company for $2.2 million Fixed Price Incentive Fee (FPIF). In a Fixed Price Incentive Fee (FPIF) contract, incentive or bonus is included for specified agreed upon criterion that meets the contract specifications, such as early completion. In this type of contract the risk is on the side of the buyer because they have to pay more than the contract price should the seller meets the criterion as opposed to a fixed price contract in which the risk is borne by the seller since...