The two Army Corps employees named in the indictment were Kerry F. Khan and Michael A. Alexander, who worked in the organization's procurement operation. Prosecutors allege they received payments in exchange for steering federal money to a subcontractor.
Two other people also were charged in the indictment: Khan's son, Lee A. Khan, and Harold F. Babb, director of contracts for Eyak Technology, the prime contractor on a $1 billion contract administered by the Army Corps.
The four men participated in the scheme over a period of four years, according to prosecutors. At a news conference, U.S. Attorney Ronald Machen called it "one of the most brazen federal procurement scandals in our nation's history."
Those charged face maximum sentences of 25 to 40 years in federal prison.