Brokerage of Engineering Services

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It was not ethical for Firm A or Firm B to offer its services as the prime professional under the stated circumstances. It was consistent with the Code of Ethics for the agency to contact Engineer X as the proposed prime professional directly rather than through Firms A or B. It would be ethical for Engineer X or his firm to accept the contract under the stated circumstances.

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We must first dispose of a technicality which often arises in ethics cases. The Code of Ethics applies only too individual engineers and not to organizations as such. This point has now been noted by action of the NSPE Board of Directors in its directive adopted in January 1971 to include the following note on each printing of the Code of Ethics: "Note: In regard to the question of application of the code to corporations vis-a-vis real persons, business form or type should not negate nor influence conformance of individuals to the code. The code deals with professional services, which services must be performed by real persons. Real persons in turn establish and implement policies within business structures. The code is clearly written to apply to the engineer, and it is incumbent on a member of NSPE to endeavor to live up to its provisions. This applies to all pertinent sections of the code." Although this note refers to corporations rather than government agencies or firms, its premise applies to all forms of organizations, including governmental agencies and consulting firms. We therefore treat the case before us as involving actions of engineers in the governmental agency and consulting firms in situations in which the engineer(s) had the power of decision or effective recommendation as to the procedure followed. The first part of Section 6 of the code precludes an engineer from accepting an engineering engagement unless qualified to perform the services involved. On the basis of the stated facts, it appears that Firm A and Firm B were primarily offering to serve in the capacity of a "broker" and would furnish only the services involved in the negotiations and administration of the contract, looking to Engineer X as the sole technical contributor to the project. The second clause of Section 6 recognizes the propriety and value of the prime professional or client retaining the services of experts and specialists in the interest of the project. We read this pr...

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A government agency contacts 15 engineering firms to solicit their interest in, and a statement of expertise and capability to provide services in a highly specialized area of technical knowledge. Eight firms responded affirmatively. Two of the eight firms, A and B, stated that they had each made arrangements with Engineer X, a recognized expert in the technical subject matter and a principal in his own firm, to provide the highly specialized expertise and that they would themselves furnish all other services involved. In actuality, these other services would be nominal in nature. The firm of Engineer X was not on the original list of those contacted.The government agency, concluding that Firms A and B would not make a substantial contribution to the work, then contacted Engineer X, advising him that two firms had indicated their intention to use him as a special technical consultant if awarded the contract and asked him if he would be interested in taking the contract on his own firm's account. Engineer X responded by submitting his qualifications but not stating definitely if he would be willing to undertake the work as the prime professional. The work to be performed is entirely within Engineer X's field of expertise and does not require services from firms other than those of Engineer X.

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Was it ethical for Firm A or B to offer its services as the prime professional under the stated circumstances? Was it consistent with the Code of Ethics for the agency to contact Engineer X directly rather than through Firms A or B as the prime professional? Would it be ethical for Engineer X or his firm to accept the contract under the stated circumstances?
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44

Total Entities

9/9

Components Populated

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Roles R
w=0.12 384D
NSPE Board of Ethical Review
Adjudicates the present case, treating it as involving actions of engineers in the governmental agency and...
Firm A Broker
The Board finds Firm A was primarily offering to serve as a broker on the prime contract, furnishing only contract...
Firm A Consultant Engineer
Responded affirmatively to the agency solicitation, stating it had made arrangements with Engineer X to provide the...
NSPE Board of Directors
Adopted the January 1971 directive requiring the note on each printing of the Code of Ethics stating that business...
Government Agency Client
Solicited 15 engineering firms for highly specialized services, concluded that Firms A and B would not make a...
Engineer X Consultant Engineer
A recognized expert and principal in his own firm whom Firms A and B arranged to use as a special technical...
6 entities
Principles P
w=0.2 384D
Competence in Prime Contract Acceptance
The Board reads Section 6 in totality to contemplate that a prime professional engineer will perform substantial...
Honesty in Capability Statements
Firms A and B represented to the government agency that they would themselves furnish all other services involved,...
Individual Accountability Despite Business Form
The Board applies the 1971 Board of Directors directive that business form or type should not negate nor influence...
Loyalty to Prior Arrangements
The Board's closing caution that Engineer X should consider carefully whether his accepting the contract...
4 entities
Obligations O
w=0.15 384D
Firm A Capability Statement Honesty Duty
Firm A must truthfully represent to the government agency the actual extent of the services it would itself furnish,...
Firm A Referral Duty to Agency
Because its only substantive service would be to arrange for the services of Engineer X, Firm A was to recommend to...
Firm A Prime Contract Competence Duty
Firm A's engineers shall accept the prime professional contract only if the firm is qualified to perform substantial...
3 entities
States S
w=0.1 384D
Firms A and B Competence Gap
Firms A and B, which lack the highly specialized expertise and would furnish only nominal services. Triggered when...
Nominal Contribution Representation
The representations of Firms A and B to the government agency about the services they would themselves furnish....
Engineer X Pending Prime Decision
Engineer X, in the decision window on whether to undertake the work as the prime professional. Triggered when The...
Engineer X Dual Loyalty Condition
Engineer X, who has arrangements with Firms A and B while the agency offers him the same contract directly....
Engineer X Complete Expertise
Engineer X, whose field of expertise fully covers the work to be performed. Triggered when The government agency...
Code Applicability To Case Engineers
Engineers in the governmental agency, Firm A, Firm B, and Engineer X's firm who had the power of decision or...
No Retention Commitment To Firms
The government agency's retention relationship with Firm A and Firm B. Triggered when The agency invites expressions...
Engineer X Arrangement Uncertainty
Engineer X. Triggered when The agency contacts Engineer X directly and offers him the contract while his...
8 entities
Resources Rs
w=0.1 384D
BER Case 62-18
Case 62-18 (topic: client intent to retain an engineer under the supplanting prohibition)
NSPE Code of Ethics
NSPE Code of Ethics (topic: qualification for engineering engagements, engaging experts and specialists, and...
BER Case 62-10
Case 62-10 (topic: when the prohibition on supplanting another engineer comes into play)
NSPE Board of Directors 1971 Directive
application of the Code of Ethics to individuals within corporations and other organizations
Case 62-10
Cited to support the interpretation of Section 11(a) that the prohibition on supplanting another engineer only...
Case 62-18
Cited alongside Case 62-10 to further support the principle that Section 11(a) requires a showing that the client...
6 entities
Actions A
w=0.1 384D
Direct Specialist Contact
Solicitation of Firms
Omitted Direct Recommendation
Broker Prime Proposal
Qualifications Submission
5 entities
Events E
w=0.08 384D
Commitment Left Unresolved
Affirmative Responses Received
Specialist Awareness Acquired
Insubstantial Contribution Finding
Code Directive Adoption
5 entities
Capabilities Ca
w=0.07 384D
Engineer X Specialized Technical Expertise
Engineer X is a recognized expert in the highly specialized technical subject matter, the work to be performed lies...
Firm A Services Extent Disclosure
Firm A exercised the capacity to make representations to the government agency about the services it would furnish,...
Firm A Contract Administration
The Board finds that Firm A, offering to serve as a broker, would itself furnish only the contract negotiation and...
Firm A Competence Self-Assessment
Firm A's duty under Section 6 to accept the prime contract only if qualified to perform substantial services of the...
NSPE Board Precedent Reasoning
The Board exercises precedent reasoning by applying its prior holdings in Case 62-10 and Case 62-18 to conclude that...
5 entities
Constraints Cs
w=0.08 384D
Firm A Prime Contract Bar
The engineers of Firm A must not offer to undertake the prime contract for the government agency's project when the...
Engineer X Supplanting Bar
Engineer X must not attempt to supplant Firm A or Firm B in the agency's engagement after becoming aware that the...
2 entities
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