In addition to the authority to receive, process and pay claims,
when delegated such representative or agency receiving delegation of
authority shall, in respect to cases adjudicated under this part, and
when so authorized by the Director, have authority to make lump-sum
awards (in the manner prescribed by 5 U.S.C. 8135) whenever such
authorized representative shall deem such settlement to be for the best
interest of the United States, and to compromise and pay claims for any
benefits provided for under this part,
including claims in which there is a dispute as to questions of fact or
law. The Director shall, in instructions to the particular
representative concerned, establish such procedures in respect to action
under this section as he or she may deem necessary, and may specify the
scope of any administrative review of such action.