Which is the same as killing the company. If the executives are going to be permanently jobless and destitute, then there's a strong temptation to try to cover things up, which is the worst case scenario for the Navy.
ETA: in some ways, the Navy might have reasons to prefer this contractor in the future, because the issue seems to have been caused by a lazy rogue employee and the company seems to have strong enough ethical/internal standards that the Navy can reasonably expect issues to be brought to their attention.
ETA: in some ways, the Navy might have reasons to prefer this contractor in the future, because the issue seems to have been caused by a lazy rogue employee and the company seems to have strong enough ethical/internal standards that the Navy can reasonably expect issues to be brought to their attention.