If those suits believe they can legally gain Charlie's sperm they will be opening a can of worms that goes against their so called core beliefs. If they are legally able to usurp Chloe's right to decide whether or not she decides if Charlie's sperm will be given to the sperm bank then they have started a pebble rolling down the hill that will pick up speed until their core beliefs are in tatters. Until anything anyone one in power thinks is valuable to the society can be taken without regards to the rights given under the law.

That Colonel has her head up her ass, thinking she will get revenge against Charlie because she refuses to accept blame for making herself look bad. If anything happens to Charlie and it's discovered she was involved, her career in the military is over. And she might be lucky if she doesn't spend several years behind bars.