Board of Contract Appeals General Services Administration Washington, D.C. 20405 ______________________ July 12, 1999 ______________________ GSBCA 14878-RELO In the Matter of MARCIA A. DeVINE Marcia A. DeVine, Alexandria, VA, Claimant. Ruth M. Barrow, Civilian Personnel Officer, Walter Reed Army Medical Center, Department of the Army, Washington, DC, appearing for Department of the Army. HYATT, Board Judge. Claimant, Marcia A. DeVine, a civilian employee of the Department of the Army, transferred to the Washington, D.C. area from Germany. Her claim for reimbursement of real estate expenses incurred in the purchase of a house in Alexandria, Virginia was denied on the ground that she was a local overseas hire and therefore not eligible for reimbursement of such expenses. For the reasons stated below, we find that the agency's decision was correct. Background Ms. DeVine arrived in Germany under orders issued to her spouse, who was a member of the Armed Forces. She was not employed upon her arrival, but in October 1993, was hired by the Army in Germany as a civilian employee. She performed a five- year tour as a management analyst. She was continuously employed by the Army in Germany until her permanent change of station (PCS), under the Priority Placement Program, to Washington, D.C. in July 1998. Ms. DeVine's travel orders to her new official station in Washington, D.C., dated June 16, 1998, authorized certain relocation benefits, including miscellaneous expenses and temporary storage of household goods, but did not authorize real estate expenses. It appears that Ms. DeVine at some point obtained information on how to submit a claim for real estate expenses associated with the purchase of a home, and she submitted the requisite documentation. The Army rejected her claim for these expenses, pointing out that she was not originally hired in the continental United States, but rather that she had been hired overseas in Germany. The Army explained that, under applicable regulations, local overseas hires are not eligible for reimbursement of real estate expenses upon return to the United States. Discussion Under the Joint Travel Regulations (JTR), civilian employees of the Department of Defense who are transferred in the interest of the Government are entitled to reimbursement of certain expenses incurred in connection with the purchase of a new residence at the new permanent duty station (PDS). JTR C14001 sets forth categories of employees who are excluded from eligibility for reimbursement of covered expenses in certain circumstances. The pertinent provision is in subparagraph C14001.6, which states that "an employee hired locally (overseas local hire) at a location outside the U.S. upon transfer to a PDS in the United States" will not be eligible for reimbursement of such expenses. As we have explained previously, under the relevant statute, 5 U.S.C. 5724a(d)(2) (Supp. III 1997), and implementing regulations, reimbursement of real estate expenses incurred incident to a permanent change of station from an overseas location is provided for when a federal employee was stationed first in the United States, transferred overseas in the interest of the Government, and then returned to a different location in the United States. Theresa F. Zuber, GSBCA 13851-RELO, 97-1 BCA 28,878. As an employee who was first hired overseas, claimant is not covered by this provision and is not eligible to be reimbursed for the expenses of purchasing a home upon being transferred by the Army to the United States. Since there is no statutory or regulatory authority that would permit the agency to reimburse claimant for expenses incurred in the purchase of a house, the Army properly denied her claim. __________________________________ CATHERINE B. HYATT Board Judge