Section 809 Panel - Recommendation #56 - Use Authority in Section 1077 of the Fiscal Year 2018 National Defense Authorization Act to Establish a Revolving Fund for Information Technology Modernization Projects and Explore the Feasibility of Using Revolving Funds for Other Money-saving Investments

Abstract

The Department of Defense (DoD) is unlikely to obtain approval for private financing of public investment projects under current conditions because such financing could be seen as a maneuver to get around the budget rules and require future generations to pay for today's investments. Internal investments in money-saving efficiencies (such as upgraded information technology systems or more fuel-efficient engines) may pay for themselves out of future operation and maintenance funds savings. In these cases, there is a public financing alternative that may be acceptable: the use of a revolving fund that provides financing for an initial set of investments.