Board of Contract Appeals General Services Administration Washington, D.C. 20405 __________________________ September 25, 1998 ___________________________ GSBCA 14519-RELO In the Matter of DANIEL P. CARSTENS Daniel P. Carstens, Fairfax, VA, Claimant. Joan Elliot, Civilian Personnel, CPAC, Headquarters, Military Traffic Management Command, Falls Church, VA, appearing for Department of Defense. HYATT, Board Judge. Claimant, Daniel P. Carstens, a contract specialist, was transferred from the United States Army Contracting Command in Seoul, Korea, to the Military Traffic Management Command (MTMC) in Falls Church, Virginia as of March 30, 1997. He seeks reimbursement of the amount of $534.37, paid to his Korean landlord, in connection with this permanent change of station (PCS). Specifically, he paid this amount to break his lease, which had been pre-paid many months in advance, in order to recoup the Government's unused portion of claimant's living quarters allowance (LQA), which was $3716.51. For the reasons stated, the agency's disallowance of this claim was proper. Background Claimant explains, in correspondence with the Board and MTMC, that when he transferred to Seoul in 1995 he was required to pay his rent in advance for twenty-three months. At the time he received his PCS orders, returning him to the United States as of March 30, 1997, some $3716.51 was unused under the lease. In order to obtain a refund of this amount from the Korean landlord, however, Mr. Carstens was forced to pay the landlord the amount of $534.37, ostensibly for unpaid utility bills.[foot #] 1 Mr. Carstens paid the amount ----------- FOOTNOTE BEGINS --------- [foot #] 1 Mr. Carstens in fact had paid the utility bills in question, but the landlord refused to accept his receipts proving payment of these bills and would not refund the unused LQA amounts until Mr. Carstens paid him the amount requested. ----------- FOOTNOTE ENDS ----------- demanded, and received a receipt for it, which he subsequently misplaced. Upon returning to the United States, Mr. Carstens repaid the unused LQA to the Government and inquired as to how he could recoup the $534.37 he paid to obtain the LQA refund from his Korean landlord. He was advised that he should seek an amendment to his travel orders authorizing payment of funds needed to settle an unexpired lease. Claimant requested such an amendment, but his request was denied. Discussion Statute and regulation provide for the payment by the Government of a transferred employee's expenses of settling an unexpired lease, but only for expenses pertaining to leases in the United States and other specified locations.[foot #] 2 Thus, such costs will generally be reimbursed when the eligible employee transfers from one location to another within the United States and certain specified areas, or when an employee breaks a lease at an official duty station located in the United States to transfer to a foreign post. 5 U.S.C. 5724a(a)(4)(A) (1994); 41 CFR 302-6.1 (1997). Although Mr. Carstens no doubt was trying to act in the best interests of the Government, as the Board recognized in George Span, GSBCA 13728-RELO, 97-1 BCA 28,859, at 143,985, "[n]either statute nor regulation makes any provision for the payment by the Government of expenses a transferred employee incurs in settling an unexpired lease at a foreign location where the individual is stationed." See also 69 Comp. Gen. 506 (1990). Since the agency is not authorized to pay this expense, it properly declined to amend the travel orders to reimburse claimant. ________________________________ CATHERINE B. HYATT Board Judge ----------- FOOTNOTE BEGINS --------- [foot #] 2 Korea is not one of these specified locations.