Board of Contract Appeals General Services Administration Washington, D.C. 20405 ________________________________ April 26 , 1999 ________________________________ GSBCA 14728-RELO In the Matter of RANDOLPH S. REYNOLDS Randolph S. Reynolds, Rosamond, CA, Claimant. Stephen J. Varholy and Doris A. Wojnarowski, National Aeronautics and Space Administration, Washington, DC, appearing for National Aeronautics and Space Administration. WILLIAMS, Board Judge. Claimant seeks payment of a home marketing incentive fee in conjunction with his permanent change of station. The National Aeronautics and Space Administration (NASA) denied payment of this incentive on the grounds that (1) its regulations authorizing an incentive payment did not become effective until several months after the date of claimant's transfer and (2) claimant was ineligible for the incentive because he received ninety days of temporary quarters subsistence expenses (TQSE). The agency is correct on both counts. Background On May 29, 1997, NASA issued a directive to move flight operations from NASA Ames Research Center to NASA Dryden Flight Research Center, Edwards, California. The directive required that all aircraft and personnel be relocated and in place at Edwards no later than January 1, 1998. Subsequently, all civil service employees assigned to the flight operations organization at Ames were informed that they would have to accept job offers from Edwards, find other positions within NASA, or have their employment terminated at the end of the calendar year. Those employees, including claimant, who could not find equivalent positions at Ames, were required to sign statements indicating their intent to move to Edwards no later than September 4, 1997. After this date, job offers from Edwards would no longer be available at the same pay or grade level that the employees held at Ames. Claimant accepted a job offer at Edwards on June 29, 1997, and signed a service agreement under which he agreed to remain in Government service for twelve months following the effective date of his transfer. On July 11, 1997, claimant was issued an authorization for his change of official station, which allowed real estate expenses from the sale of his old residence, the purchase of a new residence, and "relocation services." The effective date of claimant's transfer, as well as claimant's "enter on duty date," was July 20, 1997. In April 1998, claimant contracted with Cendant Mobility Services to assist him in the sale of his home in San Jose. Claimant believed that under the Federal Employee Travel Reform Act of 1996 and the Federal Travel Regulation (FTR) he would be entitled to a home marketing incentive payment. He elected to sell his home using a real estate agent, and on June 10, 1998, the sale was finalized. At closing he was informed that he would receive up to 3% of the sales price of his home as a marketing incentive from NASA. Soon afterward he was informed that he was not eligible for this incentive because the date of his transfer preceded NASA's regulatory authorization of this incentive. NASA denied payment of the incentive because its regulations authorizing such payments were not effective until October 1, 1997, months after claimant's effective date of transfer, July 20, 1997. In addition, NASA pointed out that claimant was ineligible for its home marketing incentive since he had been reimbursed for ninety days of TQSE, and NASA's home marketing incentive was limited to employees whose reimbursement did not exceed sixty days of temporary quarters expenses. Discussion FTR 302-1.3(d) provides that the regulatory provisions in effect on the employee's effective date of transfer, here July 20, 1997, shall be used for payment or reimbursement purposes. 41 CFR 302-1.3(d) (1997). FTR 302-14 permitted, but did not require, agencies to establish home marketing incentive programs in order to reduce overall relocation costs. 41 CFR 302-14, 14.2, 14.6. NASA established its home marketing incentive program and issued regulations implementing this FTR provision effective October 1, 1997. NASA's regulation provides: A home marketing incentive is a payment NASA makes to its transferred employee to encourage the employee to independently and aggressively market his/her residence and find a bona fide buyer, thereby reducing the fee/expense NASA must pay the relocation services company. Because the NASA incentive program was not in effect at the time of claimant's transfer, claimant is not entitled to reimbursement of the incentive fee. Claimant contends that June 10, 1998, the date of the sale of his home -- not the date of his transfer -- should govern his entitlement to relocation expenses. This argument ignores the clear language of FTR 302-1.3(d), which establishes that regulatory provisions in effect on the effective date of transfer govern reimbursement. Moreover, FTR 302-14.4 expressly provides that an agency is not required to pay an employee a home marketing incentive, but may do so when it determines that payment is in the Government's interest. 41 CFR 302-14.4. In addition, NASA's regulations clearly preclude payment of a home marketing incentive fee to an employee who received more than sixty days of TQSE. NASA's regulation provides: "Employees electing to use the relocation contractor will be limited to a total of 60 days temporary quarters with no exceptions." Decision The claim is denied. ________________________________ MARY ELLEN COSTER WILLIAMS Board Judge