Ted discovers his rival, Pete (Kyle Bornheimer) and his research lab are also working on a kid's propulsion toy.  At the meeting to pitch to the boss, both sides try to sabotage each other.  Ted wants to take the higher ground and has Phil and Lem work on a fix for Pete's project.  He presents it to Pete and tries to bond over their children at daycare, but when Pete thinks there's an ulterior motive, the gloves are off.  Pete's project is set to go to testing first, and Ted uses bribery to swap out his device with Pete's.

Meanwhile, Veronica convinces Linda to join her in sabotaging Pete's project.  They manage to get Rose on the initial testing team and train her on what to say.  When the toy comes out, Rose does as intructed, but it turns out to be Ted's team after the swap.

Back in the lab, Phil and Lem break the thermostat during a riveting game with a pinata.  Ted tells them they have to admit it themselves to get it fix.  Out of fear of punishment, they try and trick Patricia into breaking it.  When she just touches it, it breaks and she feels to blame.  They let her suffer and when she's about to either pay cash for it or have sex with her ex-boyfriend to have him fix it, the guys come clean.  She demands either money or they fight in front of her for her pleasure.  They chosoe the latter.