[Code of Federal Regulations]
[Title 5, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR180.108]

[Page 46-47]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT
 
PART 180_EMPLOYEES' PERSONAL PROPERTY CLAIMS--Table of Contents
 
Sec. 180.108  Settlement of claims.

    (a) Authority. Associate Directors and Regional Directors are 
authorized to settle and pay any claim not exceeding $500 and arising 
under this part. The General Counsel is authorized to settle and pay any 
claim not exceeding $15,000 and arising under this part. Unless 
cognizable under Sec. 180.104(c)(3), claims for damage to or loss of 
motor vehicles may be settled and paid only by the General Counsel.
    (b) Redelegation. The approving authorities may establish such 
procedures and make such redelegations as may be required to fulfill the 
objectives of this part.
    (c) Cost or value. The amount awarded on any item of property will 
not exceed the cost of the item (either the price paid in cash or 
property) or the value at the time of acquisition if not acquired by 
purchase or exchange. The amount payable will be determined by applying 
the principles of depreciation to the adjusted dollar value or other 
base price of property lost or damaged beyond economical repair; by 
allowing the cost of repairs when an item is economically repairable, 
provided the cost of repairs does not exceed the depreciated value of 
the item; and by deducting salvage value, if appropriate.
    (d) Depreciation. Depreciation in value of an item is determined by 
considering the type of article involved, its cost, condition when 
damaged beyond economical repair or lost, and the

[[Page 47]]

time elapsed between the date of acquisition and the date of damage or 
loss.
    (e) Appreciation. There will be no allowance for appreciation in the 
value of the property except that the cost of the item may be adjusted 
to reflect changes in the purchasing power of the dollar before 
depreciation is computed. Appreciation will not be allowed solely 
because the loss occurred or the claimant now resides in an area remote 
from the place of purchase of the property.
    (f) Expensive articles. Allowance for expensive items (including 
heirlooms and antiques) or for items purchased at unreasonably high 
prices will be based on the fair and reasonable purchase price for 
substitute articles of a similar nature.
    (g) Acquisition. Allowance for articles acquired by barter will not 
exceed the cost of the articles tendered in barter. No reimbursement 
will be made for articles acquired in black market or other prohibited 
activities.
    (h) Replacement. Replacement of damaged or lost property may be made 
in kind whenever appropriate.
    (i) Amount allowable. Subject to the limitations of Sec. Sec. 
180.108(c) through 180.108(h), the amount allowable in settlement of a 
claim is either:
    (1) The depreciated value immediately prior to damage or loss of 
property damaged beyond economical repair or lost, less any salvage 
value; or
    (2) The reasonable cost of repairs when property is economically 
repairable, provided that the cost of repairs does not exceed the 
depreciated value.
    (j) Notification. The approving authority shall notify the claimant 
in writing of the action taken on the claim and, if the claim is 
disapproved or only partially approved, the reasons therefor.
    (k) Carrier or insurer. In the event a claim submitted against a 
carrier or insurer under Sec. 180.106 had not been settled before 
settlement of a claim against the Government under this part, the 
approving authority shall notify such carrier or insurer to pay the 
proceeds of the claim to OPM to the extent OPM has made payment to the 
claimant.
    (l) Review. The action of the approving authority is final; however, 
the decision may be reconsidered if the claimant so requests and submits 
a written explanation why reconsideration is appropriate.
    (m) Attorney's fees. No more than 10 per centum of the amount paid 
in settlement of each individual claim submitted and settled under this 
subpart shall be paid or delivered to or received by any agent or 
attorney on account of services rendered in connection with that claim 
and the same shall be unlawful, any contract to the contrary 
notwithstanding. Any person violating this or any other provision of 
sections 240 to 243 of title 31, United States Code, shall be deemed 
guilty of a misdemeanor and upon conviction thereof shall be fined in 
any sum not exceeding $1000.

[43 FR 47163, Oct. 13, 1978, as amended at 44 FR 76747, Dec. 28, 1979]