Board of Contract Appeals

                 General Services Administration

                      Washington, D.C. 20405





                          _____________



                           July 2, 2003

                          _____________





                         GSBCA 16139-RELO





               In the Matter of WILBERT J. HAGGRAY





     Wilbert J. Haggray, Conyers, GA, Claimant.



     Fran Shivers, Chief, Civilian Personnel Advisory Center, Headquarters United States

Army Garrison, Department of the Army, Fort McPherson, GA, appearing for Department

of the Army.



DeGRAFF, Board Judge.



     A civilian employee who was initially hired overseas is not eligible to be reimbursed

for real estate expenses upon being transferred to the United States.



                            Background



     Wilbert J. Haggray was a member of the United States Army serving in the United

States when he was posted to Germany.  When Mr. Haggray retired from military service,

he decided to stay in Germany.  Subsequently, he was hired as a civilian employee of the

Army in Germany.  In 2002, the Army issued a travel authorization in connection with its

transfer of Mr. Haggray to a new permanent duty station in the United States.  According to

the travel authorization, the Army would reimburse many of Mr. Haggray's relocation

expenses, including real estate expenses.  Mr. Haggray reported to his new permanent duty

station in the United States on July 1, 2002.  



     Mr. Haggray purchased a house near his new duty station and asked the Army to

reimburse the expenses he incurred in connection with the purchase.  The Army determined

that, according to its regulations, Mr. Haggray was not eligible to be reimbursed for real

estate expenses because he was initially transferred from the United States as a military

member, not as a civilian employee, and was hired as a civilian employee while he was in

Germany.  The Army also determined that the travel authorization did not provide the

authority to reimburse Mr. Haggray for his expenses, because the terms of the authorization

were contrary to the regulations.  Mr. Haggray asked that we review the Army's

determination.



                            Discussion



     The Army correctly determined that it cannot reimburse Mr. Haggray for his real

estate expenses.  According to the Joint Travel Regulations (JTR), in most circumstances,

a civilian employee of the Department of Defense who is transferred in the interest of the

Government from one permanent duty station to another is entitled to be reimbursed for

certain real estate expenses.  The JTR explain, however, that when an employee is hired

overseas and is then transferred to a permanent duty station in the United States, the

employee is not eligible to be reimbursed for real estate expenses.  JTR C14001.  The

regulatory provision is based upon a statute that provides agencies with the authority to

reimburse real estate expenses incurred by an employee who transfers to the United States

from an overseas duty station, so long as the employee was transferred overseas in the

interest of the Government from a duty station in the United States.  5 U.S.C.   5724a(d)(2)

(2000).  Mr. Haggray was first hired as a civilian employee of the Army in Germany and,

therefore, is not eligible to be reimbursed for his real estate expenses.  Marcia A. Devine,

GSBCA 14878-RELO, 99-2 BCA   30,498; Theresa F. Zuber, GSBCA 13851-RELO, 97-1

BCA   28,878.  As the Army correctly concluded, the travel authorization does not allow it

to reimburse Mr. Haggray, because the authorization is contrary to statute and regulation. 

Kevin S. Foster, GSBCA 13639-RELO, 97-1 BCA   28,688 (1996) (citing Office of

Personnel Management v. Richmond, 496 U.S. 414 (1990); Federal Crop Insurance Corp.

v. Merrill, 332 U.S. 380 (1947)).



     The claim is denied.









                                   __________________________________

                                   MARTHA H. DeGRAFF

                                   Board Judge