Explanation
According to the PMBOK Guide 7th Edition, the project manager should monitor and control project work and respond to any issues or risks that may affect the project performance. In this case, the project manager should discuss with the project team alternative options to deliver as planned, such as finding another vendor, negotiating with the current vendor, adjusting the project schedule, or reallocating the project resources. The project manager should not inform the team that they may proceed at a more relaxed pace, as this may compromise the project quality and stakeholder satisfaction. The project manager should not discuss with the team the need for longer hours, as this may cause burnout and demotivation. The project manager should not inform the team that some of them will work for the vendor, as this may create conflicts of interest and contractual issues1. References: PMBOK Guide 7th Edition, Chapter 4: Project Delivery, Section 4.3: Monitor and Control Project Work, Page 97.