Snyder v. Department of the Navy ( 2017 )


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  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    VICTORIA SNYDER,
    Petitioner
    v.
    DEPARTMENT OF THE NAVY,
    Respondent
    ______________________
    2016-1940
    ______________________
    Petition for review of the Merit Systems Protection
    Board in No. DC-0752-13-6201-I-1.
    ______________________
    Decided: April 26, 2017
    ______________________
    MICHAEL GRAHAM, Fredericksburg, VA, argued for pe-
    titioner.
    HILLARY STERN, Commercial Litigation Branch, Civil
    Division, United States Department of Justice, Washing-
    ton, DC, argued for respondent. Also represented by
    BENJAMIN C. MIZER, ROBERT E. KIRSCHMAN, JR., ALLISON
    KIDD-MILLER.
    ______________________
    Before REYNA, LINN, and CHEN, Circuit Judges.
    CHEN, Circuit Judge.
    2                                            SNYDER   v. NAVY
    Victoria Snyder appeals the Final Decision of the Mer-
    it Systems Protection Board (Board) affirming the deci-
    sion of the Department of the Navy (Navy) to furlough her
    for six days between July and September of 2013 as a
    result of the federal government sequestration of 2013.
    Because we find no reversible error in the Board’s deci-
    sion, we affirm.
    BACKGROUND
    I.
    This case is one of many that arise from the seques-
    tration legislation adopted by Congress (i.e., the Budget
    Control Act of 2011 and the American Taxpayer Relief Act
    of 2012). 1 See, e.g., Calhoun v. Dep’t of the Army, 
    845 F.3d 1176
    , 1177 (Fed. Cir. 2017); Nat’l Fed’n of Fed. Emps.,
    Local 1442 v. Dep’t of the Army, 
    810 F.3d 1272
    , 1273–75
    (Fed. Cir. 2015) (NFFE); Einboden v. Dep’t of the Navy,
    
    802 F.3d 1321
    , 1323 (Fed. Cir. 2015). As a result of this
    1   The Budget Control Act of 2011, Pub. L. No. 112-
    25, §§ 101–103, 125 Stat. 240, 241–46, and the American
    Taxpayer Relief Act of 2012, Pub. L. No. 112-240, § 901,
    126 Stat. 2313, 2370, made amendments to the Balanced
    Budget and Emergency Deficit Control Act of 1985, Pub.
    L. No. 99-177, 99 Stat. 1038, which is codified in pertinent
    part at 2 U.S.C. §§ 901 et seq. The amendments estab-
    lished spending limits for agencies of the federal govern-
    ment and required automatic “sequestration” under
    certain statutory conditions. See generally 2 U.S.C.
    §§ 901–03. The American Taxpayer Relief Act required
    the President to issue a sequestration order on March 1,
    2013, in the middle of Fiscal Year 2013. 126 Stat. at
    2370. On that date, President Obama issued a sequestra-
    tion order requiring reductions in spending from most
    federal budget accounts for Fiscal Year 2013. Sequestra-
    tion Order, 78 Fed. Reg. 14,633 (Mar. 1, 2013).
    SNYDER   v. NAVY                                          3
    legislation, the 2013 budget of the Department of Defense
    (DOD) was cut by $37 billion approximately halfway
    through Fiscal Year 2013. DOD took a number of steps to
    address the dramatic budgetary shortfall for the fiscal
    year, including reprogramming funds, reducing facility
    maintenance, and eliminating some military training
    exercises.
    On May 14, 2013, the Secretary of Defense (SECDEF)
    issued a memorandum directing DOD managers to pre-
    pare to furlough 2 most DOD civilian employees for up to
    eleven workdays in fiscal year 2013. As explained in the
    SECDEF memorandum, sequestration reduced DOD
    operation and maintenance (O&M) accounts that pay
    many civilian DOD employees, and although DOD consid-
    ered and implemented various actions to reduce the
    budgetary shortfall, a shortfall nevertheless remained
    which would be addressed through furloughs of civilian
    employees. The memorandum provided that “[f]urloughs
    will be imposed in every military department as well as
    almost every agency and in our working capital funds.”
    J.A. 183. In an attachment to the memorandum, the
    SECDEF provided a list of approved furlough exceptions,
    which included employees deployed to a combat zone,
    those whose jobs are necessary to protect safety of life and
    property, Navy Shipyard employees, National Intelligence
    Program employees, Foreign Military Sales employees,
    political appointees, non-appropriated fund instrumental-
    ity (NAF) employees, foreign national employees, and
    various types of employees not paid directly by DOD-
    Military accounts.
    2    “‘[F]urlough’ means the placing of an employee in
    a temporary status without duties and pay because of lack
    of work or funds or other nondisciplinary reasons.” 5
    U.S.C. § 7511(a)(5).
    4                                           SNYDER   v. NAVY
    Subsequently, on June 21, 2013, a bipartisan group of
    thirty-one members of Congress sent a letter to the Secre-
    tary of Defense expressing concern about the determina-
    tion that civilian workers at entities funded through
    Defense working capital funds (WCFs) would also be
    subject to furlough. WCFs are created and controlled by
    the Office of the SECDEF. 10 U.S.C. § 2208(a), (b), (e).
    They function “entirely from the fees charged for the
    services [provided] consistent with [its] statutory authori-
    ty.” 
    Einboden, 802 F.3d at 1323
    (citing U.S. Gov’t Ac-
    countability Office, GAO–05–734SP, A Glossary of Terms
    Used in the Federal Budget Process 101 (2005)). After
    receiving initial working capital through appropriation,
    WCF entities are self-supporting and function from the
    fees charged for the services they provide to their custom-
    ers. 
    NFFE, 810 F.3d at 1274
    . The primary customers of
    WCF entities are other DOD entities that transfer their
    own congressionally-appropriated funds to make “pur-
    chases” from WCFs. 
    Id. Robert Hale,
    Under Secretary of
    Defense (Comptroller), on behalf of the SECDEF, re-
    sponded to the congressional inquiry regarding WCFs in a
    July 2013 statement to Congress, explaining that “fur-
    loughs of all DOD civilians will save about $2 billion in
    fiscal year 2013, including more than $500 million associ-
    ated with reduced personnel costs in working capital fund
    activities. These working capital fund personnel savings
    provide us the flexibility to adjust maintenance funding
    downward to meet higher-priority needs.” J.A. 85–86.
    Thus, in accordance with the SECDEF directive, imple-
    mentation of the furloughs generally proceeded across
    DOD, including WCF entities.
    II.
    Ms. Snyder was a civilian mechanical engineer at the
    Naval Surface Warfare Center, Dahlgren Division
    (Dahlgren) at the time of the sequestration. Dahlgren is a
    Navy WCF entity. See 
    Einboden, 802 F.3d at 1323
    . On
    May 28, 2013, Ms. Snyder—as well as numerous other
    SNYDER   v. NAVY                                          5
    Dahlgren employees—received a Notice of Proposed
    Furlough indicating that the Navy planned to furlough
    her for a period of up to eleven workdays days because of
    “the extraordinary and serious budgetary challenges[,] . . .
    the most serious of which is the sequester.” J.A. 834.
    At that time, Ms. Snyder worked full-time on a Lock-
    heed Martin Advanced Shipboard Weapons Control
    (ASWC) project to modify existing weapons control soft-
    ware. The ASWC project was governed by a Cooperative
    Research and Development Agreement (CRADA) between
    Dahlgren and Lockheed Martin, signed in September
    2012. Pursuant to the ASWC CRADA, both parties would
    provide expertise and engineering support. Lockheed
    Martin was solely responsible for funding the project,
    providing $2.6 million in 2012, paid to the Treasurer of
    the United States. According to the CRADA’s terms, any
    unused funds remaining at the completion of the project
    in 2015 were to be remitted to Lockheed Martin following
    Dahlgren’s submission of a final fiscal report.
    On May 30, 2013, Lockheed Martin sent a letter to the
    Navy requesting that the Dahlgren employees supporting
    the ASWC CRADA—including Ms. Snyder—be exempt
    from furlough. The letter argued that the project was
    fully funded by Lockheed Martin Independent and Re-
    search Development (IRAD) funds and not Federal appro-
    priations, and therefore, it “should be viewed as third-
    party funding like Foreign Military Sales (FMS) funding
    [one of the express exceptions identified in the SECDEF
    memorandum].” J.A. 933. Ms. Snyder filed a written
    reply on June 10, 2013, to the proposed furlough, echoing
    Lockheed Martin’s view that her work for the Lockheed
    Martin-funded ASWC CRADA should be exempted from
    furlough like the listed SECDEF exceptions. In a letter
    6                                          SNYDER   v. NAVY
    dated June 24, 2013, the Navy deciding official responded
    to Ms. Snyder, denying her request. 3
    III.
    Ms. Snyder petitioned the Board for review, asserting
    that the Navy had improperly furloughed her. Her case
    was consolidated with thirty-nine other furloughed
    Dahlgren employees.      An administrative judge (AJ)
    conducted a consolidated hearing on July 8, 2015.
    For her part, Ms. Snyder argued that, because she
    was working full-time in support of the Lockheed Martin-
    funded ASWC CRADA, her situation was akin to those
    exceptions identified by the SECDEF. In support of her
    argument, Ms. Snyder requested the AJ take official
    notice of the Federal Technology Transfer Act of 1986,
    codified at 15 U.S.C. §§ 3701 et seq., as well as DOD
    Instruction 5535.8, “DOD Technology Transfer (T2)
    Program,” May 14, 1999, which prescribes procedures for
    implementing technology transfer programs, including
    CRADAs. She argued that these provisions collectively
    (i) prohibit the federal government from providing funds
    to a non-government CRADA participant; and (ii) obligate
    the government to maintain separate and distinct ac-
    counts to track CRADA funds. Thus, she argued that she
    was not paid out of government-appropriated funds, like
    typical WCF employees, and her work should have been
    exempted from the furlough because her furlough could
    not have assisted in reducing DOD’s budgetary shortfall.
    3   Because of other cost-cutting measures and repro-
    gramming requests approved by Congress, DOD was able
    to close the budget gaps more easily than it had initially
    anticipated. On August 6, 2013, the SECDEF announced
    that the furlough of civilian defense employees would be
    reduced from eleven to six days.
    SNYDER   v. NAVY                                        7
    Ms. Snyder also argued that the Navy improperly
    provided some, but not all, furloughed employees assigned
    to work on the ASWC CRADA with an opportunity to
    earn overtime pay to mitigate the economic impact of the
    furlough. In support, she offered the testimony of Mr.
    Larry Fontenot, a fellow ASWC CRADA employee. Mr.
    Fontenot testified that he and others working on the
    project were permitted to work overtime during the
    furlough time period and that he believed this was a
    result of a compromise struck by management to make up
    for the furlough days. This “compromise,” Ms. Snyder
    argued, demonstrates that the Navy did not apply the
    furlough in a fair and even manner.
    For its part, the Navy explained that all Dahlgren
    employee salaries—regardless of funding source—are
    paid directly from the WCF. Ms. Kathy Clark, Deputy
    Comptroller for Dahlgren, testified that when a WCF
    employee like Ms. Snyder performs work on a job request-
    ed by a customer, the customer does not directly pay the
    employee’s salary; rather, the WCF employee’s salary is
    paid from the WCF. The Navy argued that by not paying
    Ms. Snyder’s salary for six days, it realized a savings in
    the WCF at the time of the furlough, just as with every
    other employee paid from the WCF. Thus, the Navy
    explained, even if it would be required to pay back Lock-
    heed Martin certain monies in a later, subsequent fiscal
    year—upon the completion of the project—the Navy still
    realized an immediate benefit at that specific point in
    time in 2013 in responding to the sequestration.
    IV.
    On September 11, 2015, the AJ issued an Initial Deci-
    sion in the consolidated case and found Snyder’s furlough
    was a reasonable management solution to the shortage of
    funds caused by sequestration and therefore promoted the
    efficiency of the service. The AJ acknowledged that Ms.
    Snyder cited “numerous agency regulations concerning
    8                                            SNYDER   v. NAVY
    the proper administration of CRADA funds,” J.A. 23, but
    credited the testimony of the Navy witnesses that all
    Dahlgren employees, including CRADA employees, are
    paid from the WCF. Thus, in that relevant sense, the AJ
    concluded, “she is no different from other employees who
    were furloughed.” 
    Id. The AJ
    also concluded that there was no evidence to
    support Ms. Snyder’s claim that the furlough was unfairly
    applied. The AJ found that Mr. Fontenot’s testimony
    established only that he “assumed” the Navy paid him
    and others the requested overtime to mitigate the effects
    of the furlough. J.A. 24. The AJ also found there was no
    evidence that Ms. Snyder even requested overtime pay,
    further undercutting her claim that similarly situated
    employees were treated differently. 
    Id. Ms. Snyder
    filed a petition for review with the Board.
    On March 18, 2016, the Board issued a Split Vote Order,
    indicating that the two members of the Board could not
    agree upon a disposition. As a result, the AJ’s Initial
    Decision became the Final Decision of the Board. 5 C.F.R.
    § 1200.3(b). Ms. Snyder now seeks review of the Board’s
    Final Decision. We have jurisdiction pursuant to 28
    U.S.C. § 1295(a)(9).
    DISCUSSION
    I.
    Our authority to review a decision of the Board is lim-
    ited by statute. We may set aside the Board’s decision
    only if it is “(1) arbitrary, capricious, an abuse of discre-
    tion, or otherwise not in accordance with law; (2) obtained
    without procedures required by law, rule, or regulation
    having been followed; or (3) unsupported by substantial
    evidence.” 5 U.S.C. § 7703(c); Whitmore v. Dep’t of Labor,
    
    680 F.3d 1353
    , 1366 (Fed. Cir. 2012). Substantial evi-
    dence is “such relevant evidence as a reasonable mind
    SNYDER   v. NAVY                                         9
    might accept as adequate to support a conclusion.” Berlin
    v. Dep’t of Labor, 
    772 F.3d 890
    , 894 (Fed. Cir. 2014).
    An agency may furlough an employee for lack of work
    or funds or other non-disciplinary reasons. 5 U.S.C.
    §§ 7511(a)(5), 7512(5). Because furloughs of thirty days or
    less are deemed adverse employment actions, the agency
    must demonstrate that the furlough “will promote the
    efficiency of the service.” 
    NFFE, 810 F.3d at 1277
    (quot-
    ing 35 U.S.C. § 7513(a)). This means that the agency’s
    decision must “be a reasonable management solution to
    the financial restrictions placed on the agency” and that
    the agency must “determine which employees to furlough
    in a fair and even manner.” 
    Einboden, 802 F.3d at 1325
    ;
    5 U.S.C. § 7513(a); 5 C.F.R. § 1201.56(a)(1)(ii) (2015).
    II.
    Ms. Snyder first takes aim at the Board’s “reasonable
    management solution” analysis.
    A.
    She contends, as an initial matter, that the AJ’s deci-
    sion failed to discuss the controlling law and facts and,
    therefore, did not constitute a reasoned opinion providing
    an adequate basis for review under the Board’s regula-
    tions. 5 C.F.R. § 1201.111(b)(1); Spithaler v. Office of
    Pers. Mgmt., 
    2 MSPB 2
    , 1 M.S.P.R. 587, 588–89 (1980).
    Ms. Snyder argues that the Initial Decision “devoted a
    negligible 359 words concerning the facts and the law
    pertaining to the CRADA.” Brief of Petitioner at 27.
    Moreover, she asserts the decision also “fails to summa-
    rize [Ms. Snyder’s] Post-Hearing Brief that thoroughly
    discusses the Federal Technology Transfer Act.” 
    Id. at 28.
        We reject Ms. Snyder’s argument regarding the
    sufficiency of the AJ’s analysis for multiple reasons. In
    Spithaler, on which Ms. Snyder relies, the Board held
    that a three-sentence initial decision, which simply an-
    nounced the administrative judge’s disposition of the case
    10                                          SNYDER   v. NAVY
    without any analysis, failed to satisfy the regulatory
    requirement of 5 C.F.R. § 1201.111(b)(1). 1 M.S.P.R. at
    588–89. The Initial Decision’s analysis in this case was
    qualitatively more meaningful compared to the com-
    plained-of analysis in Spithaler. Within the 26-page
    opinion, the AJ dedicated multiple pages to addressing
    Ms. Snyder’s specific claims and its reasoning for uphold-
    ing Ms. Snyder’s furlough.
    We also reject Ms. Snyder’s argument that the AJ was
    required to summarize all of the arguments raised in her
    briefing. The mere fact that the AJ did not recount these
    arguments as thoroughly as Ms. Snyder would like does
    not mean that the AJ did not sufficiently consider them.
    See, e.g., Synopsys, Inc. v. Mentor Graphics Corp., 
    814 F.3d 1309
    , 1322 (Fed. Cir. 2016) (noting that an agency is
    “not require[d] . . . to address every argument raised by a
    party or explain every possible reason supporting its
    conclusion”); Gonzales v. West, 
    218 F.3d 1378
    , 1381 (Fed.
    Cir. 2000) (“[A]bsent specific evidence indicating other-
    wise, all evidence contained in the record . . . must be
    presumed to have been reviewed by [the agency].”); Med-
    tronic, Inc. v. Daig Corp., 
    789 F.2d 903
    , 906 (Fed. Cir.
    1986) (“We presume that a fact finder reviews all the
    evidence presented unless [the fact finder] explicitly
    expresses otherwise.”).
    Here, the AJ identified the principal legal issue,
    summarized the facts material to resolving that issue,
    and made clear the reasoning that led the AJ to reject Ms.
    Snyder’s claim. The Initial Decision recognized that the
    funding source for the CRADA originated from a non-
    government entity, i.e., Lockheed Martin.         It also
    acknowledged the regulations concerning the proper
    administration of CRADA funds. The AJ, however, found
    these considerations were not dispositive, because the
    Navy’s unrebutted evidence showed that Ms. Snyder’s
    salary, like all other WCF employees’ salaries, was paid
    directly from the WCF, regardless of funding source for
    SNYDER   v. NAVY                                        11
    the project to which she was presently assigned. The AJ
    therefore reasoned that, for reasons of responding to the
    sequestration, Ms. Snyder, as a WCF employee, was no
    different from other WCF employees who were fur-
    loughed. We conclude that the AJ’s analysis sufficiently
    articulates its rationale and the factual underpinnings
    supporting its decision to affirm Ms. Snyder’s furlough.
    B.
    Ms. Snyder next argues that the decision to affirm her
    furlough is nevertheless unsupported by substantial
    evidence. According to Ms. Snyder, the above-cited statu-
    tory and regulatory authority and the plain terms of the
    CRADA establish that the funds used to pay her salary
    did not involve an appropriation of the United States, but
    rather, they originated from non-Federal funds that
    cannot be spent for a non-CRADA purpose. Further, Ms.
    Snyder argues the Navy was required to return to Lock-
    heed Martin any excess funds at the end of the CRADA
    project, which underscores that the funds belong to Lock-
    heed Martin, not the government. Ms. Snyder therefore
    contends that, just as with the already recognized
    SECDEF exceptions, neither Dahlgren nor the Navy nor
    DOD could save any money by furloughing her.
    Even accepting that the ASWC CRADA was funded
    solely with non-appropriations monies, we disagree that
    the funding source is dispositive of the question on ap-
    peal. Rather, we agree with the AJ that the fact Ms.
    Snyder was a WCF employee directly paid from the WCF,
    bears considerable weight on the reasonableness of the
    agency’s furlough decision. 4
    4    Ms. Snyder also takes issue with the reliability of
    Ms. Clark’s testimony that all Dahlgren employees are
    paid directly from the WCF, regardless of funding source.
    Credibility determinations made by the Board are “virtu-
    12                                           SNYDER   v. NAVY
    Agencies have broad discretion to take actions to con-
    trol spending, preserve flexibility, and adjust priorities in
    response to sequestration. “We give wide berth to agency
    decisions as to what type of adverse action is necessary to
    ‘promote the efficiency of the service,’ provided that the
    agency’s decision bears some nexus to the reason for the
    adverse action.” 
    Einboden, 802 F.3d at 1325
    –26 (quoting
    5 U.S.C. § 7513(a)). We have also previously explained
    that, when faced with sequestration, it is reasonable for
    an agency “to consider its budget situation holistically,”
    rather than isolating the situation of each individual
    organization or component. 
    Id. at 1324–25;
    NFFE, 810
    F.3d at 1282
    .
    In both Einboden and NFFE, this court upheld the
    decision to furlough WCF employees who, like Ms.
    Snyder, worked at WCF entities and were furloughed in
    accordance with the SECDEF’s direction to furlough WCF
    employees. In both cases, endorsing the holistic view of
    budget management, we explained that the decision to
    furlough employees paid by a WCF was a reasonable
    management solution to the budget shortfall because,
    among other reasons, preserving money in the WCFs
    generally provided DOD with the flexibility to meet
    higher priority needs during that critical time period. See
    
    Einboden, 802 F.3d at 1325
    ; 
    NFFE, 810 F.3d at 1282
    .
    Here too there is a sufficient nexus between the deci-
    sion to furlough Ms. Snyder and the sequestration. DOD
    was faced with a sudden, dramatic, agency-wide funding
    ally unreviewable.” Hambsch v. Dep’t of Treasury, 
    796 F.2d 430
    , 436 (Fed. Cir. 1986). Because Ms. Snyder’s
    proffered evidence regarding the treatment of CRADA
    funds does not directly contradict Ms. Clark’s testimony
    that all Dahlgren employees are paid from the WCF, the
    AJ’s decision to credit Ms. Clark’s testimony is supported
    by substantial evidence.
    SNYDER   v. NAVY                                        13
    shortfall. As part of the measures to adapt to this short-
    fall, DOD implemented agency-wide furloughs of civilian
    employees with only limited exceptions, which DOD
    estimated would save it about $2 billion. The Navy’s
    decision to furlough WCF employees was a reasonable
    management solution consistent with the SECDEF’s
    direction. Even though Ms. Snyder was working at the
    time of her furlough on a project based on funds that
    originated from a non-government entity, she, like the
    other employees at Dahlgren, was a WCF employee and,
    critically, her salary was paid from the WCF, just like the
    other furloughed Dahlgren employees. Not paying Ms.
    Snyder’s salary on those six days in 2013 thus preserved
    money in the WCF, which in turn provided DOD with
    added flexibility to manage its budget shortfall that year,
    just as with the furlough of every other WCF employee.
    We find unpersuasive Ms. Snyder’s argument that the
    government would not realize any savings from her
    furlough. While it is true that, at the completion of the
    CRADA project in 2015, any unused monies would return
    to Lockheed Martin, not the Navy, that does not change
    our conclusion. “We . . . must base our review of the
    agency’s decision on the circumstances it faced when the
    furlough decisions were made, and not on events that did
    or did not occur at a later date.” 
    NFFE, 810 F.3d at 1281
    .
    During the relevant time period in May 2013, it was
    reasonable for the Navy to determine that savings from
    furloughing all WCF employees—including those current-
    ly working on CRADA projects—would be part of an
    overall effort to reduce expenditures in the face of de-
    creased funding resulting from budget reductions during
    that fiscal year. And even if the savings realized by the
    WCF were only temporary (because the Navy could poten-
    tially have to return unused monies to Lockheed two
    years later in 2015), the Navy still derived a benefit by
    not having to pay Ms. Snyder’s salary during that critical
    time period.
    14                                           SNYDER   v. NAVY
    Finally, we reject Ms. Snyder’s additional argument,
    raised for the first time in her reply brief, that her situa-
    tion fits within the definition of exception (i) from the
    SECDEF memorandum, pertaining to funding sources
    outside of the DOD-military budget. This argument was
    waived. It is well-established that an agency is not re-
    quired to respond to arguments that were never made to
    the agency. For example, in Department of Transporta-
    tion v. Public Citizen, 
    541 U.S. 752
    (2004), the Supreme
    Court declined to consider a challenge to an agency action
    on the basis that the agency “fail[ed] properly to consider
    possible alternatives,” where the challengers “did not
    raise these particular objections” to the agency. 
    Id. at 764–65
    (“Respondents have therefore forfeited any objec-
    tion to the [action] on the ground that it failed adequately
    to discuss potential alternatives to the proposed action.”).
    Ms. Snyder argued below only that her situation was
    similar in kind to those SECDEF exceptions with funding
    sources from outside of the government, including excep-
    tions (e) (Foreign Military Sales) and (g) (nonappropriated
    funds), because furloughing her would similarly not assist
    DOD in reducing its budgetary shortfall. For the reasons
    explained above, the AJ correctly rejected that argument
    and concluded it was reasonable to treat Ms. Snyder like
    the other WCF employees, and doing so would in fact help
    DOD respond to its budget shortfall.
    We find the argument lacking in any event. SECDEF
    exception (i) pertains only to “employees who are not paid
    directly by accounts included in the Department of De-
    fense-Military (subfunction 051) budget.” J.A. 186. The
    evidence presented below established that Ms. Snyder, as
    a WCF employee, was paid directly from the WCF. And
    Ms. Snyder presents no evidence to support the conclusion
    that the Navy WCF is outside of the DOD (subfunction
    051) budget. Nor could she, as the various DOD WCFs
    were expressly targeted for furloughs by the very same
    SECDEF memorandum that established exception (i).
    SNYDER   v. NAVY                                        15
    Thus, the AJ did not err in failing to find Ms. Snyder
    should have been excepted from the furlough pursuant to
    SECDEF exception (i).
    We therefore conclude that substantial evidence sup-
    ports the AJ’s decision that the furlough of Ms. Snyder
    was a reasonable management solution to the financial
    restrictions placed on the Navy due to sequestration and
    thus promoted the efficiency of the service.
    III.
    Ms. Snyder argues that the Board also misevaluated
    the evidence demonstrating that the Navy failed to apply
    the furlough in a fair and even manner. According to Ms.
    Snyder, her testimony and Mr. Fontenot’s testimony that
    some ASWC CRADA employees received overtime was
    both unrebutted and dispositive. She argues that the AJ
    found against her only because the Navy was permitted to
    introduce additional evidence on this score after the
    record was closed, in violation of Board regulation 5
    C.F.R. § 1201.58(c) (2015). 5
    As an initial matter, we see no error in the AJ’s find-
    ing that Mr. Fontenot’s testimony amounted to nothing
    more than speculation that the approval of specific over-
    time requests was somehow related to employee fur-
    5     That regulation provides, in pertinent part:
    (c) Once the record closes, additional evidence or
    argument will ordinarily not be accepted unless:
    (1) The party submitting it shows that the
    evidence or argument was not readily
    available before the record closed; or
    (2) It is in rebuttal to new evidence or ar-
    gument submitted by the other party just
    before the record closed.
    16                                          SNYDER   v. NAVY
    loughs. Moreover, Ms. Snyder presented no evidence that
    any of the furloughed ASWC CRADA employees had
    overtime requests denied and she admitted to never
    actually requesting overtime during the relevant time
    period. Thus, as the AJ recognized, Ms. Snyder’s prof-
    fered testimony that those ASWC CRADA employees
    received overtime when requested does not, without more,
    establish that similarly treated employees were treated
    differently.
    We also ascertain no reversible error in the Board’s
    admission of the Navy’s rebuttal evidence. “Procedural
    matters relative to discovery and evidentiary issues fall
    within the sound discretion of the board and its officials.”
    Curtin v. Office of Pers. Mgmt., 
    846 F.2d 1373
    , 1378 (Fed.
    Cir. 1988). We “will not overturn the board on such
    matters unless an abuse of discretion is clear and is
    harmful.” 
    Id. Ms. Snyder
    does not attempt to explain
    how the Board’s admission of this evidence over her
    objection resulted in a clear and harmful abuse of discre-
    tion. And, in any event, the AJ explained “even if the
    [Navy] had not provided this evidence, my finding would
    be no different due to the testimony provided by [Ms.
    Snyder] and Mr. Fontenot at the hearing.” J.A. 24 n.9.
    Thus, even if the AJ erred in admitting the evidence, any
    such error would be harmless. Substantial evidence
    supports the AJ’s dismissal of Ms. Snyder’s claim without
    regard to the Navy’s rebuttal evidence. Thus, we conclude
    the Board did not commit reversible error in affirming
    Ms. Snyder’s furlough.
    CONCLUSION
    For the foregoing reasons, we affirm the judgment of
    the Board upholding Ms. Snyder’s furlough.
    AFFIRMED
    COSTS
    No costs.