July 18, 1997 GSBCA 13885-RELO In the Matter of HENRY E. HILKER Henry E. Hilker, Ithaca, NY, Claimant. Wade H. Berry, Chief, Accounts Receivable Division, Department of State, Arlington, VA, appearing for Department of State. DANIELS, Board Judge (Chairman). Henry E. Hilker, a retired foreign service officer, contends that the Department of State acted improperly in charging him for long-term storage of his household effects. We deny his claim. In November of 1992, Mr. Hilker was medically evacuated from Kathmandu, Nepal, to Washington, D.C. On December 31, the Department of State reassigned him to a "not otherwise classified" position in Washington for an indefinite period of time. On January 5, 1993, the department authorized him to have shipped to Washington the limited household effects he had in Kathmandu. It also told him, "Authority for storage of effects at Government expense issued prior to the date of this authorization will terminate three months after your arrival at station of destination." On September 30, 1994, the State Department reassigned Mr. Hilker again, this time to a one-year tour of duty as an information management specialist in Washington. Shortly thereafter, on December 22, 1994, the department called to Mr. Hilker's attention the fact that he had 5,667 pounds of household effects in storage in Antwerp, Belgium. (These goods had been in Antwerp while the claimant was in Kathmandu.) By this time, Mr. Hilker had decided to retire and the agency agreed to pay for having the goods shipped to him at his retirement location. It warned him, however, "Before you can arrange to ship the effects from storage, you will have to reimburse the Department for the continuing storage charges for most of the last two years." The actual cost of the storage was $85.005 per month. For the period from April 1993 through December 1994, the total came to $1,785.11. Mr. Hilker promptly asked the agency's Exceptions Committee to waive the storage charges. He asserted that he had "almost forgotten" that he had belongings in Antwerp; that the agency had never advised him that the charges were continuing to accrue; and that if he had been told of this fact, he would have had the goods shipped to him in Washington immediately. He acknowledged his own "oversight and misunderstanding" in leaving the items in storage in Antwerp, but requested that because the department had also been remiss, in not notifying him about the continuing charges, it absorb the costs. The committee denied his request. It felt that its hands were tied by section 901 of the Foreign Service Act of 1980, 22 U.S.C.  4081(12) (1994). This law permits the Secretary of State to pay the costs of storing the furniture and household and personal effects of a member of the foreign service in various circumstances, including (a) when the member is assigned to a post to which these items cannot be taken or at which they cannot be used; (b) in connection with an assignment to a new post, but for no more than three months after the member arrives at that post or establishes residence quarters; and (c) "when it is in the public interest or more economical to authorize storage." On December 28, 1994, Mr. Hilker asked the State Department to "remove my effects from storage immediately to stop further storage charges" and have the items sent to him in Ithaca, New York, where he planned to live upon retirement. Six days later, he retired. Storage charges continued to accrue until August 1996, as Mr. Hilker and the department debated the responsibility for payment of them. The claimant and the agency finally agreed that funds would be offset against Mr. Hilker's retirement benefits to pay a sum which had accumulated to $3,320.34, and the department would pay costs of having the goods shipped to him. Mr. Hilker made plain that he would ask for an administrative review of responsibility for the storage costs. As Mr. Hilker recognized in asking the State Department's Exceptions Committee to waive imposition of charges, the law provides that the claimant, and not the department, be responsible for the cost of storing his goods in Antwerp, beginning in April 1993 (three months after he was reassigned to Washington). The governing authorities are the statute cited by the Committee and a provision of the department's Foreign Affairs Manual (FAM), 6 FAM 176 (now 171.3), "Continuous Storage." The manual provision states: a. Continuous storage of household effects is authorized when an employee is assigned or transferred to a post abroad or in the United States other than Washington, D.C. b. Continuous storage for employees assigned to Washington, D.C., must be specifically authorized. Employees assigned as Foreign Service inspectors, traveling auditors, roving administrative specialists, or in any similar capacity requiring frequent and extensive travel, may qualify. In addition, when an authorizing officer determines that it would be in the public interest or more economical, such storage may be authorized. Mr. Hilker now maintains that because his initial assignment to Washington was to an unspecified position for an indefinite amount of time, the assignment was only temporary, pending further reassignment to a specific job. Thus, he contends, keeping his goods in storage until a more permanent position was found was economical, since it would save the expense of shipping the items a second time to his next work location. By the time he got a definite position, of course, his retirement was only three months away, and shipping his effects to Washington and then to Ithaca would have been senseless. This argument ignores the express strictures of statute and regulation. It also ignores the specific warning the agency gave the employee when he was assigned to Washington. If Mr. Hilker truly believed the contention he makes now, as to monetary savings to the Government, he should have raised it upon his arrival in Washington, when authorization of extended storage of his goods could have been properly considered. The Foreign Affairs Manual expressly provides that extended continuous storage for employees assigned to that city must be specifically authorized, and storage of his goods in Antwerp beyond March 1993 was not so approved. By waiting to put the State Department on notice of his current position, until after storage charges had accrued to their present level, Mr. Hilker is in effect proposing that the agency make an after-the-fact determination of whether shipping the goods to him or continuing to store them would have been more economical. This is not the sort of determination contemplated by the regulation. In addition, we view Mr. Hilker's failure to comply with the department's reasonable demand that he pay storage costs he owed before the agency would have the items shipped to his retirement location as the cause of the increase in the charges from $1,785.11 to $3,320.34. Thus, we consider the agency's refusal to pay any of the charges to be appropriate. _________________________ STEPHEN M. DANIELS Board Judge