Propriety of Payment for Arbitration Services

An authorized certifying officer of the National Guard Bureau requested a GAO decision regarding the propriety of paying an invoice submitted by an arbitrator for his services. The record indicated that a civilian technicians' union filed a grievance with the National Guard Bureau. Such grievances, if not locally resolved, are required to be settled by the Federal Mediation and Conciliation Service (FMCS). Consequently, FMCS provided to the National Guard Bureau and the union a list containing the names of five arbitrators. The Bureau subsequently informed FMCS that the Bureau and union had agreed upon an arbitrator. FMCS appointed the arbitrator, and he performed his services. Pursuant to the union contract, the cost of the arbitrator was to be borne equally between the National Guard Bureau and the union. The Bureau's technician personnel officer who secured the arbitrator's services did not request the appropriate paperwork by which the Bureau's funds would be officially obligated; therefore, the Bureau was concerned about the propriety of paying the arbitrator. GAO saw no impediment to payment because there was a valid contract and, although the Bureau did not follow its own procedures, such a failure would not prevent payment provided that funds were available.