Board of Contract Appeals
                    General Services Administration
                         Washington, D.C. 20405
 
 
            _______________________________________________
 
                              July 1, 1999
            _______________________________________________
 
 
                            GSBCA 14930-RELO
 
 
                    In the Matter of TERRY M. NEELEY
 
 
        Terry M. Neeley, Woodbridge, VA, Claimant.
 
        Edgardo Aviles, Accounting Services  Division, United States
   Customs Service, Department  of the  Treasury, Indianapolis,  IN,
   appearing for Department of the Treasury.
 
   BORWICK, Board Judge.
 
        Claimant,  Terry M.  Neeley, a  civilian  employee with  the
   United States Customs Service, seeks reimbursement totaling $2200
   for lease breaking expenses incurred when the agency canceled his
   permanent   change  of  station  from  Washington,  D.C.  to  San
   Francisco,  California.  The  agency reimbursed claimant $1399.20
   under the miscellaneous  expense allowance of the  Federal Travel
   Regulation (FTR) and concluded that it could not pay more.  Under
   the  circumstances, we conclude  the agency correctly  denied the
   claim.  
 
        In  August  1998  the agency  told  claimant  that  it would
   transfer him to San Francisco,  and in September claimant went on
   a house  hunting trip  there.  While  in San  Francisco, claimant
   entered  into a  residential  lease which  required a  $2200 non-
   refundable  deposit, and claimant  gave the landlord  a check for
   that  amount.   Later in  September, after  claimant  returned to
   Washington,  D.C.,  the  agency  canceled  his  transfer  to  San
   Francisco  and   reassigned  claimant  to   Baltimore,  Maryland.
   Claimant forfeited his  deposit and submitted an  expense voucher
   to  the agency  for, among  other items,  the  $2200 cost  of the
   forfeit.    The  agency reimbursed  claimant  $1399.20  under the
   miscellaneous expenses allowance provision of the  FTR, up to the
   GS-13  cap.   Claimant  seeks  reimbursement  of  the  additional
   $800.80.
 
        The  General Accounting Office  has allowed reimbursement of
   forfeited  lease  deposits  after canceled  transfers  under  the
   miscellaneous expense provision of the FTR.  Lucki S. Latimer, B-
   191676 (Nov.  2, 1978); cf.  Marvin K.  Eilts, 63  Comp. Gen.  93
   (1983)   (security  deposit,   forfeited  by   agency   delay  in
   establishing   new   permanent   duty   station,  payable   under
   miscellaneous expense  allowance).  Statute  and the FTR  cap the
   miscellaneous  expense allowance at  either one or  two weeks pay
   (depending  on the employee's family  status) at the maximum rate
   payable  for a  GS-13.   5  U.S.C.    5724a(f)(1)-(2) (Supp.  III
   1997); 41 CFR 302-3.3 (1998).   
 
 
        The  FTR does  permit  a  more  generous  reimbursement  for
   "expenses  incurred for  settling an  unexpired  lease . . .  for
   residence quarters occupied by  the employee at the  old official
   station."   41 CFR 302-6.2(h) (1998); see Tracie Grisham-Sanders,
   GSBCA 13723-RELO, 97-2  BCA   29,063.  The  record, however, does
   not demonstrate that  this provision is applicable  because there
   is  no showing  that San  Francisco was  claimant's old  official
   station  or  that  claimant  ever occupied  the  premises  in San
   Francisco.  
 
        The agency acted correctly in  denying the claim as there is
   no entitlement  to reimbursement  of the full  $2200.   Since the
   claimant  signed the  lease and  paid the  deposit in  good faith
   reliance on the agency's word that he would be transferred to San
   Francisco, and was forced to  forfeit the deposit when the agency
   canceled  the  transfer,  the  Board sends  this  matter  to  the
   Administrator  of General Services  for possible referral  to the
   Congress as a meritorious claim under the Meritorious Claims Act,
   31 U.S.C.   3702(d).   
 
 
 
                                 __________________________
                                 ANTHONY S. BORWICK
                                 Board Judge