Board of Contract Appeals

                    General Services Administration

                         Washington, D.C. 20405

 

 

 

                            _______________

 

                             March 23, 2001

                            _______________

 

 

                            GSBCA 15507-RELO

 

 

                   In the Matter of RICHARD W. SHARP

 

 

        Richard W. Sharp, Fredericksburg, VA, Claimant.

 

        Ann C. Ordes,  Certifying Officer, National Finance  Center,

   Department  of   Agriculture,  New  Orleans,  LA,  appearing  for

   Department of Agriculture.

 

   DeGRAFF, Board Judge.

 

        In March 2000,  the United States Department  of Agriculture

   (USDA)   transferred   Richard  W.   Sharp  from   California  to

   Washington,  D.C.     In  connection  with  the   transfer,  USDA

   authorized  the reimbursement of expenses Mr. Sharp incurred when

   he purchased a house at his new duty station.  Mr.  Sharp entered

   into a contract  to purchase  a house  and paid $215  for a  home

   inspection  and  $300 for  an  appraisal.    The day  before  the

   purchase was to close, Mr. Sharp's builder refused to sign a home

   warranty  and  to  complete certain  agreed-upon  repairs  to the

   house.   The day  of closing,  when it  became apparent  that the

   builder  was not  willing to  make  the repairs  and provide  the

   warranty, Mr. Sharp  canceled the purchase  contract.  Mr.  Sharp

   subsequently  purchased a different house and USDA reimbursed him

   for expenses he incurred in connection with that purchase.  

 

        Mr. Sharp asked USDA to reimburse him  for the $515 he spent

   for the  home inspection and  the appraisal of the  house that he

   did not purchase.   USDA decided that it  could not reimburse Mr.

   Sharp because he  never completed the purchase of  the house that

   was  inspected and appraised.  On behalf  of Mr. Sharp, USDA asks

   us whether its decision is correct.  

 

        USDA  correctly  decided  to deny  Mr.  Sharp's  request for

   reimbursement.  The authority to  reimburse Mr. Sharp is found in

   a  federal statute,  5 U.S.C.     5724a(e) (Supp.  V 1999),  that

   allows an  agency  to reimburse  a transferred  employee for  the

   expenses  of purchasing  a residence at  the employee's  new duty

   station.  The regulations that implement the statute provide that

   an  agency  can  reimburse  an  employee  for  expenses  paid  in

   connection with  the purchase  of one residence  at the  new duty

   station.   41 CFR 6.1(a)  (2000).  The General  Accounting Office

   (GAO), which resolved relocation claims until mid-1996, concluded

   that  an agency  can reimburse  an employee  for the  expenses of

   purchasing one  house and cannot  reimburse an employee  for fees

   and costs associated  with an unconsummated purchase  transaction

   unless the  actions of the Government preclude  the employee from

   completing  the transaction.  Donald C. Hazelwood, B-250070 (Mar.

   11, 1993);  Paul M. Foote,  B-210566 (Mar. 22,  1983).   We agree

   with  GAO.  The  plain words of  the statute and  the regulations

   authorize USDA to reimburse Mr. Sharp for expenses he incurred in

   connection  with  the purchase  of  one  house  at his  new  duty

   station, and do not authorize USDA  to reimburse him for the $515

   he spent for an inspection and  appraisal of a house that he  did

   not purchase.

   _____________________________

 

                                           MARTHA H. DeGRAFF

                                           Board Judge