Ethics and Information Technology

While in the coffee shop, you overhear someone talking about an RFP (Request For Proposal), and you realize it is the same project for which your team is preparing a response and planning to submit a bid in two weeks.  Your team has already worked out the financials and feels confident that the proposal can produce a quality project and turn a profit.  You continue listening and learn the range for bids that will be accepted. Your financials are not in that range. 

 What do you do? Why? 

What ethical or legal issues exist?