"In one of Breen's speeches in Half-Life 2, he mentions that he has been telling "Our Benefactors" that the transhuman arm are the finest the species has to offer, yet the more Freeman progresses, the more "Our Benefactors" grow suspicious and question Breen's allegence. This is what I believe might've been "the consequence of failure" Breen mentions. He also says that "the alternative, if you can call it that, is total extinction." So yeah, this is that. Enjoy."