BID  (CONT)

He told the GAO that "no one was assigned to specifically monitor the level of care" received by military personnel and that the company operated with "a built-in incentive to lower provider cost for added profit." The Pennsylvania company was a subcontractor for Comprehensive Health Services of Florida, one of the failed bidders.

A spokesman for the Defense Department, citing the pending protests, declined to respond to a series of detailed questions about the contract and the selection process.

Records reviewed by The Times show that the Logistics Health bid also survived a major last-minute change when partner QTC Management abruptly withdrew days before the contract was awarded.

QTC Chairman Anthony J. Principi, another former Bush appointee, was secretary of Veterans Affairs.
The GAO has until early January to act on the protests.

The Defense Department gave initial notice of its intent to put the newly expanded program out to bid in October 2006.

Winkenwerder resigned from his Pentagon post April 16, and his appointment to the Logistics board was announced May 31. It became effective the next day. In announcing Winkenwerder's appointment, Thompson said: "He brings with him a wealth of knowledge and also shares LHI's commitment of helping military members receive the healthcare and support they deserve. He is a tremendous addition to our board of directors."

The formal notice of the bidding process was issued June 12. Bids were due July 26. On Sept. 10, QTC formally withdrew from the Logistics proposal. And on Sept. 25, the contract was awarded to Logistics.

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