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Based on your review and analysis of the “Is It Fraud” case study (Kerzner, 2017, pp. 295-297), address the following key discussion topic elements:First, summarize the case study and clearly identify the ethical dilemma in question.Then, address either question #1 or #2 at the end of the case study.Lastly, what can be done to avoid even the appearance of an ethical concern?In 200 words, post an initial discussion and provide replies to 2 peers 100 word each to two peers i will attach below Reference at least one source from among the required or recommended readings and at least one credible outside source (a scholarly reference other than the textbook or readings); cite references according to proper CSU-Global Guide to Writing and APA (Links to an external site.) standards.Elyse ThompsonIn the “Is It Fraud?” case study, the US Navy consulted in Paul, a project management consultant, in a case where they believed that the Welton Company committed fraud in a project they completed for them (Kerzner, 2017). The Welton Company and the Navy had worked together on several projects over the course of 10 years with firm-fixed-price contracts, where Welton would take the first quarter to develop the manufacturing plans and conduct procurement. For this project Welton was requesting an incentive-type contract and to use the first two quarters for manufacturing and procurement. Overall, Welton finished the project in the third quarter and over budget, but still received $6 million in an incentive bonus for early delivery. The Navy believes they extended the schedule and went over budget on labor to ensure an incentive. Walton had to put in $500,000 due to going over budget on labor, but still received $6 million, which clearly made up for the loss.I am not an attorney but I do believe that there can be sufficient evidence and information to create a possible law suit regarding this case study. The US Navy and the Welton Company have a long standing working relationship and are familiar with each other. There are numerous staff members at the Welton Company that have worked on previous projects for the Navy and there is evidence that the Welton Company bragged about having several similar contracts that were not under the same terms. Paul found information that showed that the same plans were used for this project as in previous projects so it does not make sense that two quarters were needed for planning. Based on this information I believe there is a chance for a possible lawsuit.In order to avoid an ethical concern, the Welton Company should have maintained a contract similar to any of the other several contracts they have made with the US Navy. There is a longstanding working relationship between the two organizations, so it seems strange immediately that there was two significant changes in this contract: the extended planning phase and the request for incentive. It is clear that the Welton Company planned for a longer planning phase to ensure an incentive.Kerzner, H. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Hoboken, NJ: John Wiley & Sons.Dina La BrecqueThe “Is It Fraud” case study by Kerzner (2019, pp. 294 – 297) outlines a situation where a contractor, Welton Company, negotiated an incentive-type contract with the Department of the Navy to produce 1,500 units within one year for a total price of $43.5 million. Part of the contract included a large bonus for early delivery. This contract was different than the firm-fixed-price contract the Navy typically negotiated and allowed for an extra 3 months (versus most contracts) for Welton to develop their manufacturing plans and conduct procurement.Paul Jensen, a project management consultant, was brought in to evaluate the situation to determine if Welton Company exploited the situation by demanding an incentive-type contract with the knowledge that the timeline agreed upon was exaggerated.Upon Paul’s investigation, he discovered that Welton’s proposal boasted about completing similar contracts in the past and that their employees were experienced with these type of contracts. The proposal also implied that the plans for this project were similar to other contracts completed by Welton. This information implies that Welton shouldn’t have needed two quarters to develop the manufacturing plans and conduct procurement and that quite possibly Welton overstated the time required for that phase in an effort to negotiate and receive an early deliver bonus, when in fact they were operating on a typical timeline. Paul could possibly use this information, along with the average timelines from other similar contracts, to show that Welton manipulated the Navy by demanding an incentive-type contract with a longer timeline than is typical. Consistent integrity and ethical behavior are a critical part of building trust (internally and externally) as well as creating a sustainable business. Being transparent to your employees and your customers is a great way to showcase integrity and ethics as well as continually build trust (Power, 2017). Some methods of promoting transparency are establishing (and communicating) core values; being an open book (when appropriate), responding timely to customer questions or issues, and soliciting feedback from employees regarding areas of improvement. These are just some ways to improve transparency, which can help avoid ethical dilemmas. For example, in the “Is It Fraud” case study by Kerzner (2019, pp. 294 – 297), if Welton had clearly communicated why they needed 6 months to complete the manufacturing plans and conduct procurement as well as communicated during the project that the factors that sped up that timeline, the customer may not have felt that something unethical occurred when the early deliver bonus was paid.ReferencesKerzner, H. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Hoboken, NJ: John Wiley & Sons.Power, R. (2017). 7 Effective Ways to Establish Transparency in Your Business and Why It’s Important. Retrieved from https://www.inc.com/rhett-power/7-effective-ways-to-establish-transparency-in-your-business-and-why-its-importan.html
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