Board of Contract Appeals General Services Administration Washington, D.C. 20405 ____________ June 30, 1998 ____________ GSBCA 14544-RELO In the Matter of PETER A. GIAMMANCO Peter A. Giammanco, Burlington, VT, Claimant. Judy Hughes, Travel Policy, Defense Finance and Accounting Service, Columbus Center, Columbus, OH, appearing for Department of Defense. VERGILIO, Board Judge. In selling his residence at the old duty station, the relocated claimant utilized a broker and separately incurred advertising costs in attempting to sell the residence himself. He received compensation for the broker fees incurred when the broker successfully sold the residence. The claimant is not entitled to recover the separate advertising costs, which did not result in lower broker fees. The claimant has not demonstrated that the sum of the broker fees and advertising costs represent a reasonable or customary amount to incur in selling the residence in the locality. With a reporting date in early September 1996, the claimant, Peter Giammanco, as a civilian employee of the Department of Defense, changed duty stations. In connection with the relocation, the agency authorized the claimant to sell the residence at his old duty station in Bay Shore, New York. Although he utilized a real estate broker, he also attempted to sell the residence on his own. In October 1997, the residence was sold through the broker. The claimant incurred broker costs, for which he was reimbursed. He seeks to be reimbursed advertising costs of $2,441.55, which he incurred apart from the broker fees in seeking to sell the residence himself. The broker fees were not reduced because the claimant advertised on his own, although the broker would have received a lesser fee if the claimant (without the broker) had been successful in finding a buyer. The agency denied reimbursement. Statute permits the Government to pay an employee expenses incurred in the sale of a residence at the old duty station. However, the reimbursement for brokerage fees and other expenses may not exceed those customarily charged in the locality where the residence is located. 5 U.S.C. 5724a(a)(4)(A) (1994). Regulations, which implement the statute, specify that costs of newspaper, bulletin board, multiple-listing services, and other advertising for sale of the residence at the old official station are reimbursable if the employee has not paid for such services in the form of a broker's fee or real estate agent's commission. 41 CFR 302-6.2(b) (1996); Department of Defense Civilian Personnel Joint Travel Regulations (JTR) C140002-A.2. The claimant maintains that, in conjunction with his relocation, he was given by the agency and he read a Pamphlet for Permanent Change of Station (PCS), Defense Finance and Accounting Service, Columbus Center, DFAS-CO 7000.1-PH (Aug. 1995). Regarding allowable expenses for the sale of a residence, the pamphlet states (on page 22) that the "following expenses are typically reimbursable when reasonable in amount and customarily paid by the seller in the locale where the property is situated: 1. Broker's fees or Realtor commission[;] 2. Other advertising and selling expenses (i.e. newspaper, bulletin board, multiple- listing services, etc.)[.]" The agency has disallowed the reimbursement here at issue. Although the agency has requested that the pamphlet be amended to help prevent misunderstandings, it maintains that the regulations do not permit reimbursement given the facts in this matter. It notes, further, that erroneous or misleading advice does not provide a legal basis for payment. The parallel efforts of the claimant and broker to sell the residence did not diminish or offset the broker fees. Further, the record does not indicate that the sum of the broker fees and advertising costs would be a reasonable or customary amount to incur in selling the residence in the locality. The claimant is not entitled to reimbursement. ____________________________ JOSEPH A. VERGILIO Board Judge