In the Matter of HENRY W. STOUT

April 15, 2014

CBCA 3743-TRAV

In the Matter of HENRY W. STOUT

Henry W. Stout, Diamondhead, MS, Claimant.

David E. Gilliland, Comptroller, Naval Oceanographic Office, Department of the

Navy, Stennis Space Center, MS, appearing for Department of the Navy.

DANIELS, Board Judge (Chairman).

From October 27 through December 7, 2013, Henry W. Stout was assigned by the

Department of the Navy to an oceanic surveying project in the Sultanate of Oman. Mr.

Stout’s travel orders authorized a per diem allowance. He slept in Omani barracks at no cost,

so he did not seek reimbursement for the lodging portion of that allowance. He did claim,

however, the portion of the allowance for meals and incidental expenses. The Navy paid the

allowance for meals, but not for incidental expenses. Mr. Stout asks us to review the

agency’s decision as to incidentals.

The Navy’s position is based on its reading of the definition of “per diem allowance”

which is contained in the Department of Defense’s Joint Travel Regulations (JTR). As this

definition states, a per diem allowance “[i]s a daily payment instead of actual expense

reimbursement for lodging, meals and related incidental expenses.” JTR App. A. “Incidental

expenses,” one of the items covered by a per diem allowance, include:

1.

Fees and tips to porters, baggage carriers, bellhops, hotel maids,

stewards/stewardesses, and others on ships, and hotel servants in foreign

countries. . . . ;

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2.

Transportation (i.e., bus, subway) between places of lodging or

duty/business and places at which meals are taken, if suitable meals cannot be

obtained at the [temporary duty] site. . . . ;

3.

Laundry/dry cleaning, and/or pressing of clothing when travel is to an

OCONUS [outside the continental United States] location;

4.

Potable water and ice . . . ;

5.

Tax and service charges (other than vendor surcharges for using a credit

card) for any of the expenses listed . . . ; and

6.

Any other necessary expenses related to lodging that are listed in the

room account.

Id. The Navy seems to conclude that because the majority of these incidental expenses are

“tied to lodging charges,” and Mr. Stout incurred no lodging charges, he should not be

granted an allowance for such expenses. The agency believes, however, that reimbursing

him for his laundry expenses is appropriate.

As Mr. Stout maintains, the Navy’s reading of the JTR is flawed. These regulations

explain, “Per diem is designed to offset lodging and M&IE [meals and incidental expenses]

costs incurred while performing travel, and/or TDY [temporary duty] away from the

[permanent duty station].” JTR C4050-A.1. “Per diem is applicable for all TDY . . . periods;

except when an [actual expense allowance] is authorized/approved.” Id. C4050-A.5. “Per

diem rates include a fixed allowance for M&IE. The M&IE rate[] is payable to a traveler

without expense itemization or receipts.” Id. C4050-A.12. The per diem allowance for

M&IE is payable whether lodging is required or not. Id. C4075.

An agency may prescribe a reduced per diem allowance “when a per diem rate is more

than what is needed for a particular duty assignment because of known lodging and/or meal

cost reductions due to prearrangement, special discounts, or other reasons.” JTR C4095-A.1;

see also 41 CFR 301-11.200(a) (2012); cf. Robert W. Carlson, CBCA 2165-TRAV, 11-1

BCA ¶ 34,762 (Department of State’s Foreign Affairs Manual “permits reduction of per diem

rates to cover M&IE only under very narrowly defined circumstances”). A reduced

allowance must be requested and authorized prior to the travel, however, and it must be

stated on the orders before it takes effect. JTR C4095-A.2, -E; 41 CFR 301-11.200(b).

When a reduced allowance is authorized, an amount for laundry and dry cleaning may be

prescribed for OCONUS travel; otherwise, though, laundry and dry cleaning costs are to be

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paid by the employee from the per diem allowance. Id. C4095-G, App. A (“per diem

allowance,” par. G).

Mr. Stout was authorized a per diem allowance before he left for Oman, and the Navy

has provided no evidence that his orders were ever modified to limit that allowance. The

allowance covered incidental expenses, so the agency is obligated to pay the portion of the

allowance attributable to those expenses. It is not apparent that most incidental expenses

relate to lodging, and in any event, the agency would be acting contrary to the command of

the JTR if it were to reimburse him for laundry expenses separately.

_________________________

STEPHEN M. DANIELS

Board Judge