This burly Freesidelocal actually has quite a checkered past. Orris has a known history of ripping off his clients by faking attacks on them and playing hero. Ironically, he's one of the more popular guns for hire operating in the area, managing to gain the support of some local thugs to assist in his operations. His actions have earned him hundreds of caps, much higher than the average salary of his more legitimate co-workers. This is why he and his scam has attracted the suspicion of the King.
It costs 200 caps to "hire" Orris, The King pays you exactly this, leaving no monetary profit from this part of the quest, unless you get the caps from Orris himself.
With an Intelligence of 6 you can accuse Orris of staging the whole incident with the thugs (noting that 4 thugs were "killed" by Orris when he only fired 3 shots), which will branch off into a dialogue option where, if you have a Barter of 50, you can convince him to give you all the caps he has on him (348 caps), threatening to go to the Kings otherwise (which the player ends up doing anyway to continue the quest). This leaves a profit of 148 caps to the player, or a straight profit of 348 if the King gave you money for the quest first.
Killing Orris after talking to him about not killing the thugs will not affect the outcome of the quest.
In fact, if Orris is to be killed prior to initiating the G.I. Blues quest, it will not fail the quest. Instead, the Courier can admit to killing him to the King when seeking work, skipping this portion of the quest.
If you run straight without taking the detour to the left Orris will follow and remark after you get past the 'thugs', that they were harmless and his senses rarely fail him. If you choose to do this, The King will make you hire him again and will not give you 200 caps to pay him.
Strangely, Orris, in his heavy metal armor, will always run faster through the detour than a light-armored player with Travel Light.
Attacking any of the thugs pretending to be dead will turn Orris and the thugs hostile (revealing the obvious fact that the thugs were paid by Orris to act hostile). If the player runs and makes Orris follow, the securitrons can attack and kill Orris.
Rarely, a securitron spawns in the alley where Orris "kills" the 4 thugs, this makes killing Orris easier as the securitron will aid you.
Low level players may find Orris to be difficult to kill, due to his powerful hunting revolver and his metal armor.
ps3 Sometimes the gambler that is talking to Orris when the Courier visits Freeside for the first time will become hostile and pick up Orris's hunting revolver and fight the player. (Also can rarely be sent 10 feet up into the air and stay up there from Orris shooting at the player in the alley) [verified]
pc If you Kill the thugs and then run back along the original path, Orris will kill all the Kings and bystanders along the path back to the gate and then stay at the gate shooting at any one in range. He will continue shooting until you kill him, complete the quest or eventually he is killed by a king or bystander. [verified]