WASHINGTON -- For the second consecutive year, the Nationals finished fifth in the National League East. This time, pitching and a lack of defense and fundamentals were the reasons the team lost 91 games in 2006.

Because of those deficiencies, Washington is expected to overhaul its roster this offseason. But don't look for the Nationals to spend a lot of money on improvements. Instead, fans should expect the club to rely on some of its Minor Leaguers, make trades, sign free agents at an inexpensive price and have players switch roles. Most of the money will be spent on rebuilding the farm system.

In fact, the Nationals have already signed several six-year Minor League free agents who will compete for spots in the rotation and bullpen.

"I don't want to rule anything out," Nationals team president Stan Kasten said. "When you sign [big-name free agents], you take yourself farther away from your goal."

In fact, general manager Jim Bowden said that the team may be willing to bring a prospect such as left-hander Matt Chico to the Major Leagues in 2007. Chico, who was acquired from the Diamondbacks in August in the Livan Hernandez trade, has never played higher than Double-A.

"It depends on where he is," Bowden said. "It's really more than stuff or how he [does] in the strike zone. It's [a matter of] if he has the maturity level to handle [the Major Leagues]. He is going to get a chance to compete. Yes, we are open-minded. We are not going to say, 'No, you are the best pitcher and you are not going to make it because you need to go to Triple-A.' Whoever manages this club, they have to be well equipped to handle a building team. They have to be able to handle pitchers."

In order to get better, the Nationals may change the roles of a few players. For example, right-hander Jon Rauch may be put in the rotation. The 28-year-old righty said he is willing to do anything for the organization, but he prefers to stay as a setup man.

"I personally believe that Jon Rauch can be a successful starting pitcher. I communicated that with Jon," Bowden said. "He had a breakout year as far as being a successful setup guy. I'm not really into taking a person out of position. That will be the manager's decision."

With shortstop Cristian Guzman coming back from a shoulder injury, the Nationals suddenly have a crowded infield. Felipe Lopez was the starting shortstop during the second half of '06, but he's considered a far superior second baseman.

The Nationals most likely will move Lopez to second base and trade Jose Vidro. It may be difficult to trade Vidro for pitching, because he has two years left on his contract and is coming off a subpar season.

"I don't want to get into what our specific plans are. As far as what personnel is here, we need to have a discussion with the manager," Bowden said. "I never think it's a problem when you have too many players at a position, because there are other teams that will need their abilities."

The Nationals also have five Major League free agents -- Alfonso Soriano, Tony Armas Jr., Jose Guillen, Ramon Ortiz and Robert Fick -- and there's a good chance that all of them will not be back. Soriano is the biggest free agent of the group. According to a source, he wants at least a five-year, $80 million contract.

Kasten said that Washington would love to have Soriano back, but it is willing to take a first-round pick and a sandwich pick as compensation.

"We love Alfonso and we are certainly going to continue to explore having him back, but we have always known that if we didn't have him back, we would have two very, very important picks," Kasten said. "We need to build up our [farm] system. Either way, we feel very comfortable."

Bowden said he also is prepared to give outfielder Kory Casto a chance to play left field. Casto was the Nationals' Minor League Player of the Year the last two seasons.

"Our scouting reports have been extremely positive in the Arizona Fall League," Bowden said. "He will be given a chance to compete with what we have right now."