Federal Capital Revolving Fund
SEC. 6. REPAYMENTS BY PURCHASING AGENCIES.
(a) Requirement To Repay Fund.—Purchase transfers from the Fund to pay for the costs of an approved project shall not be made unless the purchasing agency enters into an agreement with the Administrator, in writing, to repay the Fund consistent with this Act. An appropriation provided by the Congress to a purchasing agency consistent with this Act for repayment to the Fund for any year will constitute a legal obligation of the purchasing agency in that year for repayment to the Fund equal to the repayment amount available for that year.
(b) Repayment Period.—To recapitalize the Fund, each purchasing agency shall, subject to appropriation, make annual repayments to the Fund for any approved project over a period agreed to by the purchasing agency and the Administrator, but not to exceed 15 years, beginning in the year that the project is approved by an appropriations Act and the first repayment is appropriated.
(c) Repayment Amount.—The annual repayment amount to recapitalize the Fund shall be a level amount equal to the purchase transfer divided by the number of years in the repayment period.
(1) Timing of repayments.—Each repayment amount shall be paid to the Fund in the year for which it is appropriated.
(2) Adjustments to repayment amounts.—After the first repayment amount for a project is paid to the Fund, the Administrator shall adjust each remaining repayment amount by a uniform amount so that the sum of the repayment amounts, including repayment amounts already paid to the Fund, equals the actual cost of the project, whenever—
(A) the actual cost is less than the purchase transfer from the Fund;
(B) the actual cost is higher than the purchase transfer and an additional purchase transfer for the difference has been approved in advance in an appropriations Act;
(C) repayments by the purchasing agency exceed the annual repayment amount; or
(D) the purchase transfer amount is reduced under section 4(g).
(d) Disposition of Project.—The following requirements apply to the disposition of any project that is funded by a purchase transfer:
(1) Disposition of the project shall be accomplished in accordance with any applicable authorities.
(2) If the disposition of the project occurs before the purchasing agency has completely repaid the Fund, the purchasing agency shall, subject to appropriation, continue to make repayments until the Fund is fully repaid.
(3) If the disposition of the project results in the receipt of sale proceeds, such receipts shall be available—
(A) first, to the purchasing agency to pay any remaining unpaid repayment amounts owed by the purchasing agency for the project; and
(B) second, to the purchasing agency, or to the GSA in the case of a project held in the GSA inventory, to support authorized real property activities excluding operations and maintenance. Such receipts shall be available until expended, without further appropriation, and may be deposited in any account of the applicable agency that is available for the purposes described in subparagraphs (A) and (B).
(e) Change in Need for or Condition of Asset.—Any change in the purchasing agency’s mission need for the project or in the condition of the project does not alter the repayment requirements in section 6.
The Federal Capital Revolving Fund Act of 2018 is proposed legislation that would reform the way the Federal Government purchases capital assets.
Section-by-Section for the Federal Capital Revolving Fund Act of 2018
Sec. 6. Repayments by Purchasing Agencies. This section requires purchasing agencies to repay the FCRF over a period not to exceed 15 years and defines the repayment amount as the full cost of the acquisition divided by the number of years in the repayment period plus an administrative fee. Change in the need for or condition of the asset does not alter the repayment requirements. Proceeds from the sale of such assets must first be used to repay the FCRF, and any sale proceeds in excess of this amount would remain available to the purchasing agency (or to GSA in the case or a project held in the GSA inventory) to support real property activities excluding operations and maintenance. Receipts shall be available until expended, without further appropriation.
[From the Budget Process section of the Analytical Perspectives volume of the President’s Fiscal Year 2020 Presidential Submission; pp. 138-140.]