S2E21 · Peak Performance

To prepare for the Borg threat, the Enterprise is ordered to participate in combat simulations. Sirna Kolrami, a renowned Zakdorn strategist, will observe and mediate the exercise. Commander Riker challenges Kolrami to a game of Strategema despite knowing he cannot win, just for the honor of playing a grandmaster. Doctor Pulaski pushes Data to challenge the arrogant Kolrami, assuming he will be no match for Data's android capabilities. However, Data is also soundly beaten, causing him to believe he is malfunctioning and remove himself from duty.

For the simulation, Riker will command an 80-year-old retired Federation ship, Hathaway, with Chief Engineer Geordi La Forge, Lt. Worf and Acting Ensign Wesley Crusher as his senior staff. Hathaway is easily outclassed by Enterprise, and as it has no antimatter, warp speed is impossible. Wesley slips back aboard the Enterprise and transports a school project containing trace amounts of antimatter, potentially allowing Hathaway a short warp burst.

Pulaski and Counselor Troi are unable to persuade Data that he is not malfunctioning, but Captain Picard reminds him of his duty, advising him, "It is possible to commit no mistakes and still lose. That is not a weakness; that is life.” Data returns to the bridge, his confidence restored.

As the battle begins, Worf creates a distraction by using Enterprise's sensors to generate an illusory Romulan warship, and the Hathaway scores the first hits. As Enterprise prepares to retaliate, another ship — a Ferengi marauder — appears. Picard realizes too late that this ship is genuine, and the Ferengi attack leaves the Enterprise's phasers locked in simulation mode, unable to return fire.

Ferengi commander DaiMon Bractor, unaware of the wargames, concludes the Hathaway must be valuable and demands that Picard surrender it to him. Picard and Riker devise a risky plan: the Enterprise fires photon torpedoes at the Hathaway, who use their short warp burst to jump to safety just before impact. Believing their prize has been destroyed, the Ferengi target the Enterprise, but Worf tricks their sensors into detecting another Federation ship, causing them to flee.

With the wargames over, Data challenges Kolrami to a Strategema rematch. This time, Data holds Kolrami in check, leading Kolrami to quit in frustration. Data explains that he gave up opportunities for advancement in order to maintain a stalemate; he initially regards the result as a draw, but after prodding from Pulaski, admits his victory.