BNUMBER:  B-261971
DATE:  February 27, 1996
TITLE:  David E. Swayne

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Matter of:David E. Swayne

File:     B-261971

Date:February 27, 1996

DIGEST

The Office of Personnel Management (OPM) is authorized by 5 U.S.C.  sec.  
4703(a) (1994) to conduct demonstration projects to determine whether 
specified changes in personnel management policies or procedures would 
improve federal personnel management.  An employee who is newly 
appointed to a federal position from the private sector under a 
demonstration project authorized by OPM is eligible to receive full 
relocation benefits authorized by the project plan, as though the 
employee was being transferred from one duty station to another for 
permanent duty.

DECISION

This decision responds to a request from an authorized certifying 
officer, National Finance Center, U.S. Department of Agriculture 
(USDA).[1]  The question asked is whether an employee who was newly 
appointed under a USDA Demonstration Project may receive full 
relocation benefits incident to that appointment.  We conclude that he 
may receive these benefits, for the following reasons.

Dr. David E. Swayne was newly appointed as a Supervisory Veterinary 
Medical Officer in the Agriculture Research Service, USDA, effective 
July 24, 1994, for permanent duty in Athens, Georgia, under USDA 
Demonstration Project, number 6325-01, March 9, 1990.  He was paid a 
recruitment bonus and authorized full relocation benefits, including a 
househunting trip, temporary quarters, and expenses of residence sale 
and purchase incident to his move from Columbus, Ohio, to Athens, 
Georgia, as though he were a full time employee being transferred from 
one permanent duty station to another.

After Dr. Swayne reported for duty, he submitted a travel voucher for 
payment.  The National Finance Center travel unit reviewed the voucher 
and other documents, as well as the regulations supplied by the Office 
of Personnel Management to support the claimed entitlement.  It 
concluded that Dr. Swayne was entitled only to limited benefits 
authorized by 5 U.S.C.  sec.  5723 (1994) and section 302-1.10(d) of the 
Federal Travel Regulations (FTR),[2] rather than full relocation 
benefits authorized by 5 U.S.C.  sec.  5724 and 5724a (1994).  The 
certifying officer questions the correctness of that conclusion and 
asks whether full relocation benefits may be paid the employee under 
the USDA Demonstration Project.

Demonstration projects are authorized under Chapter 47 of title 5, 
United States Code (1994).  Section 4701(a)(4) authorizes the Office 
of Personnel Management (OPM) to conduct and evaluate demonstration 
projects to determine whether specified changes in personnel 
management policies or procedures would improve federal personnel 
management.  Section 4703(a) provides that such demonstration projects 
are not limited by any lack of specific authority under title 5, by 
any inconsistent provision elsewhere in title 5, or by any rule or 
regulation prescribed thereunder, including any law or regulation 
relating to methods of recruitment or appointment to a position.[3]  
In turn, section 4703(b) provides that, before any such plan can be 
implemented, the plan must be published in the Federal Register and 
subjected to a public hearing, that 180 days notice be given to 
affected employees and the Congress, and that agency approval be 
obtained.  Further, each House of Congress must be provided with a 
report and final plan at least 90 days prior to the plan's effective 
date.  The OPM has published implementing regulations in 5 C.F.R. Part 
470 (1995).

The USDA Demonstration Project under which Dr. Swayne was appointed to 
federal service was proposed by OPM in 1989, the required procedural 
steps outlined above were taken, and the plan was published in the 
Federal Register as a final notice on March 9, 1990.[4]  Section 
III.A.3.b(2) of the plan[5] provided authority to pay new appointees 
all of the relocation expenses authorized for transferred employees as 
outlined in 5 U.S.C.  sec.  5724 and 5724a, 5724b, and 5724c, including 
such expenses as househunting trips, expenses relating to the sale and 
purchase of residences, access to relocation services, and other 
services available to transferred employees in addition to those 
authorized under 5 U.S.C.  sec.  5723.

Thus it is apparent that OPM decided to make a specific change in the 
relocation benefits payable to new employees hired under this 
demonstration project.  We believe that making this change to the 
normal recruitment and appointment procedures is within the authority 
granted to OPM under 5 U.S.C.  sec.  4703(a).

Since Dr. Swayne was appointed to his position from the private sector 
under the authority of the USDA Demonstration Project discussed above, 
rather than under the provisions of 5 U.S.C.  sec.  5723 (1994), the full 
relocation benefits authorized in his travel authorization may be 
reimbursed to him.

/s/Seymour Efros
for Robert P. Murphy
General Counsel

1. Ms. Susan C. Lauga-Reference FSD-1  RJP.

2. Those limited benefits are:  travel expenses for the appointee, 
including per diem; transportation of the immediate family; 
transportation and temporary storage of household goods; nontemporary 
storage of household goods if appointed to an isolated area; and 
transportation of mobile homes.

3. The limitations on the conducting of demonstration projects 
contained in section 4703(c) do not relate to travel, transportation, 
or relocation benefits as a recruitment tool.

4. 55 Fed. Reg. 9062.

5. 55 Fed. Reg. 9062, 9070.