Deborah L. Childress--Reconsideration

B-253202.3 May 15, 1996 Jump To VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Prior decision holding that a relocation service contractor's fee for purchasing a transferring employee's residence may not be paid is affirmed on reconsideration. Sec. 5724c (1994) are subject to the limitations and restrictions found in 5 U.S.C. Residence sales expenses may be reimbursed only if the transferring employee's residence is the one from which the employee regularly commuted to the old official station. Was not located at her old official station in Tucson. BACKGROUND PHH was awarded contract No. The contract was a requirements-type contract calling for PHH to provide. PHH received a fee based on the home appraisal value and on the period of time for which the home was in inventory prior to resale. View Decision Matter of: Deborah L. Childress--Reconsideration File: B-253202.3 Date: May 15, 1996 Prior decision holding that a relocation service contractor's fee for purchasing a transferring employee's residence may not be paid is affirmed on reconsideration. Relocation service contracts entered into pursuant to 5 U.S.C. Sec. 5724c (1994) are subject to the limitations and restrictions found in 5 U.S.C. Sec. 5724a and in Chapter 302 of the Federal Travel Regulation. Under these provisions, residence sales expenses may be reimbursed only if the transferring employee's residence is the one from which the employee regularly commuted to the old official station. Since the residence purchased by the contractor here does not qualify as the employee's commuting residence at her old station, the agency lacks authority to pay the contractor, even though its agent had authorized the contractor to provide the service. See Office of Personnel Management v. Richmond, 496 U.S. 414 (1990). DECISION By letter of November 9, 1995, PHH Homequity Corporation (PHH), a relocation services contractor for the Federal Aviation Administration (FAA), asks us to reconsider our decision of March 9, 1995 (B-253202.2), denying its claim of $82,834.50. The claim covers PHH's contract fee for its purchase and resale of Mrs. Deborah L. (Phelps) Childress's residence in Corona, California, in connection with her transfer from the United States Customs Service at Tucson, Arizona, to the FAA, in San Pedro, California. Since Mrs. Childress's residence in Corona, California, was not located at her old official station in Tucson, Arizona, we denied PHH's claim, even though the agency's representative had authorized PHH to provide the service. We affirm our prior decision. BACKGROUND PHH was awarded contract No. DTFA01-89-D-00027, by FAA for relocation services effective March 1, 1989, for a term of 12 months with three 12-month option periods. The contract was a requirements-type contract calling for PHH to provide, among other relocation services, guaranteed home sale services. In return, PHH received a fee based on the home appraisal value and on the period of time for which the home was in inventory prior to resale. The home sale services involved here occurred in late 1992. Deborah L. Phelps was employed by the Customs Service during 1992, stationed at Davis-Monthan Air Force Base, Tucson, Arizona. On July 16, 1992, Ms. Phelps, who was then engaged to marry Mr. Richard Childress, leased her residence in Tucson, starting in August. On July 28, 1992, she vacated that residence and shipped her household goods to the residence of Mr. Childress in Corona, California, approximately 425 miles away. On August 7, she married Richard Childress. On August 23, Mrs. Childress began a temporary duty assignment for the Customs Service at March Air Force Base, which is near Corona, and where she remained until September 26. During this period, she received a job offer from FAA for employment in San Pedro, California, which she accepted, and she reported for duty on October 5. The FAA issued travel orders to her authorizing permanent change-of-station travel for herself, her husband, and stepson, from Corona to San Pedro, including real estate transaction expenses. Mrs. Childress requested the use of relocation services, listing her home in Corona, California, as her address in the requesting documents. On October 9, 1992, the FAA relocation services coordinator (RSC), the official responsible for determining eligibility of FAA employees for relocation services, authorized PHH to negotiate its purchase of the house owned by Mr. Childress in Corona. On November 18, 1992, PHH contracted to purchase the Corona residence for $161,000, and closed the transaction on November 24, 1992.