Industry group calls for small independent federal agencies to be given working capital authority

Written by John Hewitt Jones
June 1, 2022 | FEDSCOOP

The Digital Innovation Alliance has called on lawmakers to extend working capital authority to smaller independent agencies.

In a letter sent on Wednesday, the technology industry group said such a move would give each government agency greater flexibility to take on larger, enterprise-wide IT projects.

“ADI appreciates the flexibility given to several agencies to leverage their working capital under the FY 2022 omnibus. We encourage the committee to continue these efforts and enable all agencies to leverage their working capital. for technology modernization as the committee finalizes appropriation bills for fiscal year 2023,” the trade group said.

Revolving funds were authorized for CFO Act agencies in 2017. The Government Technology Modernization Act allows appropriations committees to give agencies greater flexibility to set aside unused funds for future projects and to provide multi-year funding.

Proponents of the funding structure say it can help promote long-term thinking within federal IT procurement by providing a degree of isolation from multi-year posting cycles.

In its letter outlining the group’s priorities for fiscal year 2023, ADI reiterated previous calls for Congress to meet or exceed President Biden’s request for an additional $300 million for the Technology Modernization Fund.

ADI also added that it would support an increase in the amount and cap of the Federal Citizen Services Fund, which supports some of the largest programs driving safety innovation and compliance.

“The administration has requested $116 million for the fund, more than double its current budget. ADI supports this request and encourages the committee to meet or exceed this number,” he added.