Man pleads guilty in Walter Reed scheme

GREENBELT, Md. --A man has pleaded guilty in federal court to participating in a kickback scheme involving contracts at Walter Reed Army Medical Center.

Leon Krachyna Jr., 39, pleaded guilty Friday to conspiracy to bribe a public official and defraud the Army, U.S. Attorney Rod J. Rosenstein said.

According to the plea agreement, from June 1999 to March 2002, Krachyna and an unnamed accomplice conspired to give kickbacks to a civilian contract specialist employed by the Army Medical Command. The unnamed official was responsible for procurement for the medical center.

The official helped Krachyna and his business partner secure government contracts worth as much as $1.4 million in exchange for a 10 percent cut, according to the plea agreement. Krachyna admitted paying the public official $10,000 to $30,000, according to the document.

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WP: Privatized Walter Reed Workforce Gets Scrutiny; Contractor tied to Bush administration, KBR

Privatized Walter Reed Workforce Gets Scrutiny
Army Facility Lost Dozens Of Maintenance Workers
By Steve Vogel and Renae Merle
Washington Post Staff Writers
Saturday, March 10, 2007; Page A03

The scandal over treatment of outpatients at Walter Reed Army Medical Center has focused attention on the Army's decision to privatize the facilities support workforce at the hospital, a move commanders say left the building maintenance staff undermanned.

Some Democratic lawmakers have questioned the decision to hire IAP Worldwide Services, a contractor with connections to the Bush administration and to KBR, a Halliburton subsidiary.

Last year, IAP won a $120 million contract to maintain and operate Walter Reed facilities. The decision reversed a 2004 finding by the Army that it would be more cost-effective to keep the work in-house. After IAP protested, Army auditors ruled that the cost estimates offered by in-house federal workers were too low. They had to submit a new bid, which added 23 employees and $16 million to their cost, according to the Army.

Yesterday, the American Federation of Government Employees, the largest federal workers union, blamed pressure on the Army from the White House's Office of Management and Budget for the decision to privatize its civilian workforce.

"Left to its own devices, the Army would likely have suspended this privatization effort," John Gage, president of the organization, said in a statement. "However, the political pressure from OMB left Army officials with no choice but to go forward, even if that resulted in unsatisfactory care to the nation's veterans."...

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