Request for Reconsideration

A former employee of the National Oceanic and Atmospheric Administration (NOAA) requested reconsideration of his claim for refund of transfer-related expenses collected as a result of his breach of a service agreement. The employee transferred to Hawaii from Virginia in connnection with his continued employment with NOAA. He signed a 2-year service agreement and listed Tennessee as his actual place of permanent residence. The employee subsequently transferred to the U.S. Geological Survey. He moved from Hawaii to California and signed a 1-year service agreement with the Geological Survey. The moving expenses and transportation of the employee's household goods were paid for by the Geological Survey. Because he resigned from this position before he had completed the 1-year agreement, the Geological Survey set off the net amount of his final salary and lump sum leave payments against his indebtedness incurred in the move. The employee contended that he was entitled to return travel and transportation expenses because he satisfied his service obligation incident to his employment in Hawaii with NOAA. The employee further contended that the costs did not exceed the costs that he would have incurred if he had moved back to his permanent place of residence. GAO held that expenses incurred in a move back to a permanent place of residence from an overseas duty station are payable to an employee only if another service agreement is not signed. Since the employee did execute a new service agreement, he is entitled only to the expenses incurred incident to the transfer in the amount equal to the costs of returning to the place of permanent residence. Accordingly, the employee may be reimbursed for expenses incurred in the move from Hawaii to California providing they do not exceed the costs of transportation from Hawaii to Tennessee.