Step 3: Temporal Dynamics Pass

Extract actions, events, causal chains, and temporal relationships

Case Number 58-1
Step 3 of 5

Case Sections

Facts Section Content:
Facts:
An agency of a foreign government invited proposals from consulting engineering firms to complete the design and supervise the construction of a hydroelectric project which is being financed in part by a World Bank loan.
The basic plans for the project were prepared by an agency of the Federal Government of the United States, and the project report was made by an agency of the foreign government, with the assistance of a team from the U.
S.
Agency.
Several engineers in the employ of the U.
S.
Agency responsible for the basic plans negotiated with at least two engineering firms with the intent of taking part in the design and supervision of the work.
Negotiations were finally concluded between this group and a firm of consulting engineers for a cooperative project to execute the work, and the group of employees formed a corporation to be a part of a joint venture to design the hydroelectric project.
At or about the time the negotiations with the foreign government were concluded, this group of engineers resigned their positions with the U.
S.
Agency and shortly thereafter entered into contract with the foreign government.
Discussion Section Content:
The evidence in this case is of such a nature and the implications so far reaching, that a pinpoint decision is difficult if not impossible to achieve. It was not possible for the Board to meet and discuss the case and it could not bring in the witnesses for explanation or cross-examination. There can be no question of the basic right of an American citizen to resign from one position and accept another or initiate a business of his own. NSPE has formally recognized that right in Professional Policy No. 52 which says: "It is the stated policy of the Society that an individual professional engineer has the right to seek and accept other employment in his field, provided the seeking and acceptance of such other employment is consistent with the Canons of Ethics as it pertains to relations with clients and employers. NSPE looks with disfavor on any provisions in contracts, or conditions of employment, which unreasonably limit this right." It seems axiomatic that the personal and intimate knowledge of the project which the employees gained from their work on the preliminary design of the project and the acquaintance they made with the representatives of the owner of the project gave them many distinct advantages over any other firms who may have considered the offering of their services to the owner. The crucial question is, therefore, "Were these advantages used unfairly?" This could have been accomplished by withholding certain information from the competitors, by misrepresentation to the owner of the importance of their inside information, or by quoting a price which was lower than could be considered proper for the securing of data for and the design of the project. It has not been established that any of these things occurred. However, they might have been used and in any case the possibility of the existence of one or more of these facets raises a cloud of doubt as to the purity of the enterprise. It becomes a matter which might be considered under Section 19 of the Canons, which states: "The engineer will endeavor to protect the engineering profession collectively and individually from misrepresentation and misunderstanding."