May 16, 1997 GSBCA 13672-RELO In the Matter of WESLEY G. CHUBB Wesley G. Chubb, Fernandina Beach, FL, Claimant. Judy A. Hughes, Travel Policy, Defense Finance and Accounting Service, Columbus, OH, appearing for Department of Defense. GOODMAN, Board Judge. Mr. Wesley Chubb, a civilian employee of the Department of the Navy (the Navy), made a permanent change of station from the Naval Air Station, Bermuda to the TRIDENT Refit Facility, Kings Bay, Georgia in June 1995. The Navy limited the amount of his reimbursement for temporary quarters subsistence expenses (TQSE) and has requested a refund from his travel advance in the amount of $1,012.40. Mr. Chubb requested review of the agency s decision by the General Accounting Office (GAO). In May 1995, before his move, Mr. Chubb visited Kings Bay and arranged through a local realtor to find a rental house for himself and his family (his wife and two teenage daughters) to occupy temporarily when they moved to Kings Bay. According to Mr. Chubb, his realtor searched all available listings in the immediate area and none offered leases of less than six months. He has furnished a letter from his realtor dated October 3, 1995, confirming the unavailability of housing in Kings Bay. The realtor states that when she could not find listings which required less than a six month lease, she contacted other realtors and came up with the same results. His realtor then searched outside the immediate area of Kings Bay and found a house with three bedrooms and two baths on Jekyll Island at a cost of $3,150 per month, which Mr. Chubb rented. He moved into the house on June 17, 1995, and remained there until August 5, 1995. Mr. Chubb paid $3,150 rent for the first thirty-day period -- June 17 to July 16, 1995. Mr. Chubb s command became aware of his lodging cost when he filed his first claim for TQSE, for thirty days. By memo dated July 20, 1995, Mr. Chubb s command notified him as follows: It has been brought to my attention that lodging costs incurred during your first thirty day temporary quarters period appear to be excessive and unreasonable. . . . When compared to similar commercial quarters in the commuting area, the $3150.00 lodging cost for the Oakridge Cottage on Jekyll Island, Georgia can be considered unreasonable. For the remaining temporary quarter period, you are advised to seek residence at a more reasonable cost. Failure to do this, may result in denial of reimbursement of excessive lodging costs. Mr. Chubb and his family remained in the house for an additional twenty-one days, until August 5, 1995, and paid pro- rated rent of $2,362.50. He and his family then relocated to temporary quarters in St. Mary s, Georgia at a cost of $750 a month. Prior to sending Mr. Chubb s claim to the Personnel Support Activity, Jacksonville, Florida for settlement, his command reduced reimbursement of his lodging cost to $1,800 per month. This is the amount which the command considered to be reasonable based on a review of actual claims submitted by other employees over the previous several years. According to Mr. Chubb's command, "the Kings Bay area is primarily occupied by a military installation, and consequently offers a wide variety of homes to be rented under short term leases. The average cost of such housing is $1,200 per month for a family of three or four individuals. Because Mr. Chubb rented in a resort area, they increased his allowable reimbursement to $1,800 per month." Mr. Chubb appealed the limitation of his lodging reimbursement within the agency, on the basis that his realtor assured him that there were no quarters available that offered a lease of less than six months in the Kings Bay area. The agency issued the following ruling: On the basis of our review and based on discussions with the TRIDENT Refit Facility Comptrollers Office, we are of the opinion that the command performed extensive research in arriving at the amount which they considered reasonable. Their determination to limit reimbursement was neither arbitrary nor capricious. Therefore, we will not challenge or disturb their determination. Mr. Chubb requested review of the agency determination. Under 5 U.S.C.  5724a(a)(3) (1994), and implementing regulations found in the Joint Travel Regulations (JTR), applicable to federal civilian employees of the Department of Defense, a transferred employee may be reimbursed subsistence expenses for himself and his immediate family while occupying temporary quarters. These regulations authorize reimbursement only for the actual subsistence expenses incurred, provided they are incident to the occupancy of temporary quarters and are reasonable as to amount. JTR C13007-A. The JTR also requires: A traveler on official business (permanent duty travel or temporary duty travel) will exercise the same care in incurring expenses and accomplishing a mission that a prudent person would exercise if traveling on personal business. Excess costs, circuitous routes, delays or luxury accommodations unnecessary or unjustified in the performance of a mission are not considered acceptable as exercising prudence. Employees will be responsible for excess costs and any additional expenses incurred for personal preference or convenience. JTR C1058-A. The GAO held that the employing agency is in the best position to review an employee s expenditures while accounting for agency travel funds, and that it is the responsibility of the employing agency, in the first instance, to determine that subsistence expenses are reasonable. Generally, GAO would not interpose its independent judgment on the reasonableness of expenses incurred where the agency based its determination on competent bases. Eric E. Shanholtz, 66 Comp. Gen. 515 (1987). GAO would not substitute its independent judgment for that of the agency in the absence of evidence that the agency s determination was clearly erroneous, arbitrary or capricious. The evaluation of the amounts claimed must have been made on the basis of the facts in each case. Marilyn L. Dean, B-234768 (May 16, 1989). This Board will follow the approach set forth above, and will not interpose its independent judgment as to the reasonableness of expenses incurred where the agency has founded its determination on competent bases. In this case, after the filing of this request for review, we sought additional information from the agency to support its statement that it was of the opinion that the command performed extensive research in arriving at the amount which they considered reasonable. The agency responded as follows: In conversations with PSA [Personnel Support Activity], Jacksonsville, and the TRIDENT Refit Facility, Kings Bay, Georgia, we were informed that together they contacted several popular lodging establishments in the surrounding area and compiled the enclosed list of lodging costs. Additionally, they checked local newspapers to determine the average cost of furnished/unfurnished apartments in the area. This information, as well as information from other PCS travel claims, assisted Mr. Chubb s employing agency in making their determination that $1,800 was a reasonable amount for lodging. The agency attached a list of lodging costs in the surrounding area. Those with accommodations of sufficient size for Mr. Chubb s family with a month-to-month lease had rents from $565 per month to $1,145 per month, well below the $1,800 rate established by the agency, and far below the monthly rent Mr. Chubb paid. We find that the agency had a competent basis for deciding not to reimburse Mr. Chubb for $3,150 per month, and there is no evidence that the agency s determination was clearly erroneous, arbitrary or capricious. We consequently deny Mr. Chubb's claim. _______________________ ALLAN H. GOODMAN Board Judge