Title 38 — Veterans’ Benefits
Part VI · Chapter 81 — Acquisition and Operation of Hospital and Domiciliary Facilities; Procurement and Supply; Enhanced-Use Leases of Real Property
§ 8121. Revolving supply fund
Statutory text
The revolving supply fund established for the operation and maintenance of a supply system for the Department (including procurement of supplies, equipment, and personal services and the repair and reclamation of used, spent, or excess personal property) shall be—
available without fiscal year limitations for all expenses necessary for the operation and maintenance of such supply system;
reimbursed from appropriations for the cost of all services, equipment, and supplies furnished, at rates determined by the Secretary on the basis of estimated or actual direct cost (which may be based on the cost of recent significant purchases of the equipment or supply item involved) and indirect cost; and
credited with advances from appropriations for activities to which services or supplies are to be furnished, and all other receipts resulting from the operation of the fund, including property returned to the supply system when no longer required by activities to which it had been furnished, the proceeds of disposal of scrap, excess or surplus personal property of the fund, and receipts from carriers and others for loss of or damage to personal property.
The Secretary may authorize the Secretary of Defense to make purchases through the fund in the same manner as activities of the Department. When services, equipment, or supplies are furnished to the Secretary of Defense through the fund, the reimbursement required by paragraph (2) of subsection (a) shall be made from appropriations made to the Department of Defense, and when services or supplies are to be furnished to the Department of Defense, the fund may be credited, as provided in paragraph (3) of subsection (a), with advances from appropriations available to the Department of Defense.
At the end of each fiscal year, there shall be covered into the Treasury of the United States as miscellaneous receipts such amounts as the Secretary determines to be in excess of the requirements necessary for the maintenance of adequate inventory levels and for the effective financial management of the revolving supply fund.
An adequate system of accounts for the fund shall be maintained on the accrual method, and financial reports prepared on the basis of such accounts. An annual business type budget shall be prepared for operations under the fund.
The Secretary is authorized to capitalize, at fair and reasonable values as determined by the Secretary, all supplies and materials and depot stocks of equipment on hand or on order.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 85–857 · 72 Stat. 1105
Enacted · 38 U.S.C. § 8121
Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1253, § 5011
Source evidence
Code source credit
Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1253, § 5011Pub. L. 87–314 · 75 Stat. 675
Changed · 38 U.S.C. § 8121(a)
Pub. L. 87–314 included among the purposes for which the supply fund was established, the repair and reclamation of used, spent, or excess personal property, and authorized the crediting of the fund with property returned to the supply system when no longer required by activities to which it had been furnished
Source evidence
Code amendment note
Subsec. (a). Pub. L. 87–314 included among the purposes for which the supply fund was established, the repair and reclamation of used, spent, or excess personal property, and authorized the crediting of the fund with property returned to the supply system when no longer required by activities to which it had been furnished.Veterans Medical Technical and Conforming Amendments of 1976
Pub. L. 94–581 title II § 210(e)(6) · 90 Stat. 2842
Substituted · 38 U.S.C. § 8121(c)
Pub. L. 94–581 substituted “the Administrator” for “him”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 94–581 substituted “the Administrator” for “him”.Enacted provision · exact public law section
(6) Subsection (c) of section 5011 is amended by striking out “him” and inserting in lieu thereof “the Administrator”.Veterans’ Administration Health-Care Amendments of 1980
Pub. L. 96–330 title IV § 402(a) · 94 Stat. 1030
Substituted · 38 U.S.C. § 8121(a)
Pub. L. 96–330 substituted “actual direct cost (which may be based on the cost of recent significant purchases of the equipment or supply item involved)” for “actual direct” in par. (2), and, in provisions following par. (3)
Substituted · 38 U.S.C. § 8121(a)
Pub. L. 96–330 substituted “At the end of each fiscal year, there shall be covered into the Treasury of the United States as miscellaneous receipts such amounts as the Administrator determines to be in excess of the requirements necessary for the maintenance of adequate inventory levels and for the effective financial management of the revolving supply fund” for “At the end of each fiscal year, any net income of the fund, after making provision for prior losses, shall be covered into the Treasury of the United States as miscellaneous receipts”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 96–330 substituted “actual direct cost (which may be based on the cost of recent significant purchases of the equipment or supply item involved)” for “actual direct” in par. (2), and, in provisions following par. (3), substituted “At the end of each fiscal year, there shall be covered into the Treasury of the United States as miscellaneous receipts such amounts as the Administrator determines to be in excess of the requirements necessary for the maintenance of adequate inventory levels and for the effective financial management of the revolving supply fund” for “At the end of each fiscal year, any net income of the fund, after making provision for prior losses, shall be covered into the Treasury of the United States as miscellaneous receipts”.Enacted provision · exact public law section
(a) Section 5021(a) is amended— 93 Stat. 61. 38 USC 5021. (1) by inserting after “direct” in clause (2) “cost (which may be based on the cost of recent significant purchases of the equipment or supply item involved)”; and (2) by striking out the second sentence in such section and inserting in lieu thereof the following: “At the end of each fiscal year, there shall be covered into the Treasury of the United States as miscellaneous receipts such amounts as the Administrator determines to be in excess of the requirements necessary for the maintenance of adequate inventory levels and for the effective financial management of the revolving supply fund.”.Department of Veterans Affairs Health-Care Personnel Act of 1991
Pub. L. 102–40 title IV § 402(b)(1) · 105 Stat. 187
Changed · 38 U.S.C. § 8121
Pub. L. 102–40 renumbered section 5021 of this title as this section
Source evidence
Code amendment note
Pub. L. 102–40 renumbered section 5021 of this title as this section.Enacted provision · exact public law section
(1) Each section contained in any of chapters 51, 53, 55, 57, 59, 61, 71, 72, 76, 78 (as redesignated by subsection (a)), 81, 83, and 85 is redesignated so that the first two digits of the section number of that section are the same as the chapter number of the chapter containing that section.Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 8121(a)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in par. (2) and in last sentence
Source evidence
Code amendment note
Subsec. (a). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in par. (2) and in last sentence.Enacted provision · exact public law section
(1) Title 38 is further amended by striking out “Administrator” and “Administrator’s” each place they appear (except as provided in paragraphs (2) and (9) and including where they appear in section headings and tables of sections) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.Pub. L. 102–83 § 4(a)(3) · 105 Stat. 378
Substituted · 38 U.S.C. § 8121(a)
Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration” in introductory provisions
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration” in introductory provisions.Enacted provision · exact public law section
(3) Such title is further amended by striking out “Veterans’ Administration” each place it appears (other than as amended under paragraphs (1) and (2) and as specified in paragraph (4)) and inserting in lieu thereof “Department”.Pub. L. 102–83 § 4(b)(1) · 105 Stat. 378
Substituted · 38 U.S.C. § 8121(c)
Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in two places
Source evidence
Code amendment note
Subsec. (c). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in two places.Enacted provision · exact public law section
(1) Title 38 is further amended by striking out “Administrator” and “Administrator’s” each place they appear (except as provided in paragraphs (2) and (9) and including where they appear in section headings and tables of sections) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.Pub. L. 108–170 title IV § 403(a) · 117 Stat. 2042
Redesignated · 38 U.S.C. § 8121
Pub. L. 108–170 redesignated last sentence of subsec. (a) as subsec. (c)
Added · 38 U.S.C. § 8121
Pub. L. 108–170 added subsec. (b)
Redesignated · 38 U.S.C. § 8121
Pub. L. 108–170 redesignated former subsecs. (b) and (c) as (d) and (e), respectively
Source evidence
Code amendment note
Pub. L. 108–170 redesignated last sentence of subsec. (a) as subsec. (c), added subsec. (b), and redesignated former subsecs. (b) and (c) as (d) and (e), respectively.Enacted provision · exact public law section
(a) Enhancement of Department of Defense Participation.— Section 8121 is amended— (1) by redesignating subsections (b) and (c) as subsections (d) and (e), respectively; (2) by designating the last sentence of subsection (a) as subsection (c); and (3) by inserting after paragraph (3) of subsection (a) the following new subsection (b): “(b) The Secretary may authorize the Secretary of Defense to make purchases through the fund in the same manner as activities of the Department. When services, equipment, or supplies are furnished to the Secretary of Defense through the fund, the reimbursement required by paragraph (2) of subsection (a) shall be made from appropriations made to the Department of Defense, and when services or supplies are to be furnished to the Department of Defense, the fund may be credited, as provided in paragraph (3) of subsection (a), with advances from appropriations available to the Department of Defense.” .Effective date note
Pub. L. 108–170, title IV, § 403(b), Dec. 6, 2003, 117 Stat. 2062, provided that: “The amendments made by subsection (a) [amending this section] shall apply only with respect to funds appropriated for a fiscal year after fiscal year 2003.”
10 of 12 references resolved to an enrolled provision · 2 partial
Editorial Notes
Amendments1961–2003 · 5 rounds
2003
Pub. L. 108–170 redesignated last sentence of subsec. (a) as subsec. (c), added subsec. (b), and redesignated former subsecs. (b) and (c) as (d) and (e), respectively.
1991
Pub. L. 102–40 renumbered section 5021 of this title as this section.
Subsec. (a). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in par. (2) and in last sentence.
Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration” in introductory provisions.
Subsec. (c). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in two places.
1980
Subsec. (a). Pub. L. 96–330 substituted “actual direct cost (which may be based on the cost of recent significant purchases of the equipment or supply item involved)” for “actual direct” in par. (2), and, in provisions following par. (3), substituted “At the end of each fiscal year, there shall be covered into the Treasury of the United States as miscellaneous receipts such amounts as the Administrator determines to be in excess of the requirements necessary for the maintenance of adequate inventory levels and for the effective financial management of the revolving supply fund” for “At the end of each fiscal year, any net income of the fund, after making provision for prior losses, shall be covered into the Treasury of the United States as miscellaneous receipts”.
1976
Subsec. (c). Pub. L. 94–581 substituted “the Administrator” for “him”.
1961
Subsec. (a). Pub. L. 87–314 included among the purposes for which the supply fund was established, the repair and reclamation of used, spent, or excess personal property, and authorized the crediting of the fund with property returned to the supply system when no longer required by activities to which it had been furnished.
Statutory Notes and Related Subsidiaries
Effective Date of 2003 Amendment
Pub. L. 108–170, title IV, § 403(b), , 117 Stat. 2062, provided that: “The amendments made by subsection (a) [amending this section] shall apply only with respect to funds appropriated for a fiscal year after fiscal year 2003.”
Effective Date of 1980 Amendment
Pub. L. 96–330, title IV, § 402(b), , 94 Stat. 1051, provided that: “The amendments made by subsection (a) [amending this section] shall take effect as of .”
Effective Date of 1976 Amendment
Amendment by Pub. L. 94–581 effective , see section 211 of Pub. L. 94–581, set out as a note under section 111 of this title.
Department of Veterans Affairs Supply Chain Resiliency
Pub. L. 117–328, div. U, title IV, § 401, , 136 Stat. 5482, provided that:
“(a) Report on Critical Items and Requirements.—
Not later than 90 days after the date of the enactment of this Act [], the Secretary of Veterans Affairs shall submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives a report containing each of the following:
“(1) A description of the items and types of items the Secretary considers critical with respect to—
“(A) the ongoing response to the Coronavirus 2019 (COVID–19) pandemic; and
“(B) future epidemic, pandemic, emergency, national emergency, or natural disaster scenarios.
“(2) The quantities of the items described in paragraph (1) that are available, as of the date of the enactment of this Act, in inventories, emergency caches, or other emergency inventories of the Department of Veterans Affairs.
“(3) The anticipated quantities of the items described in paragraph (1) that would be necessary under potential epidemic, pandemic, emergency, national emergency, or natural disaster scenarios the Secretary determines to be relevant for planning purposes.
“(4) The assumptions and key planning factors used by the Secretary to identify the items, types of items, and necessary quantities of items for types of scenarios, as described in paragraphs (1) and (3).
“(b) Participation in Warstopper Program.—
“(1) In general.—
Not later than one year after the date of the enactment of this Act [], the Secretary of Veterans Affairs and the Secretary of Defense shall enter into an agreement to provide for the participation of the Department of Veterans Affairs in the program known as the ‘Warstopper Program’ of the Defense Logistics Agency, or any successor program.
“(2) Requirements.—
Pursuant to the agreement under paragraph (1), the Defense Logistics Agency shall—
“(A) ensure the maintenance and stability of the items that are identified as critical in the report required under subsection (a) and that the Secretary of Defense determines are appropriate for the Warstopper Program;
“(B) establish guidance for the participation of the Department of Veterans Affairs in the Warstopper Program that includes an identification of the items and types of items that are critical to the needs of the Department of Veterans Affairs; and
“(C) use existing contracts and agreements and enter into new contracts and agreements, as necessary, with manufacturers and distributors to reserve the supply of such critical items rather than rely on holding physical inventories of such items.
“(c) Reimbursement.—
The Secretary of Veterans Affairs shall reimburse the Secretary of Defense for any expenses or obligations incurred to facilitate the participation of the Department of Veterans Affairs in the Warstopper Program pursuant to subsection (b).
“(d) Prohibition on Exclusive Reliance on Regional Inventories.—
The Secretary of Veterans Affairs shall ensure that the Department does not exclusively rely on holding regional, physical inventories of critical items in order to respond to greater than expected needs for such items during epidemic, pandemic, emergency, national emergency, or natural disaster situations.
“(e) Report on Implementation.—
“(1) In general.—
Not later than 450 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives a report on the implementation of this section.
“(2) Contents.—
The report submitted under paragraph (1) shall contain each the following:
“(A) An implementation plan for the participation of the Department of Veterans Affairs in the Warstopper Program, including milestones and timelines for related administrative, contracting, and readiness activities.
“(B) For each of the items and associated quantities identified in paragraphs (1) and (3) of subsection (a)—
“(i) the method by which the Secretary of Veterans Affairs plans to ensure the Department continues to have access to adequate quantities of such items and types of items, including in the Warstopper Program, in regional, physical inventories, or other methods; and
“(ii) justifications for the method or methods identified under clause (i).
“(3) Updates to report.—
The Secretary shall update the report required under paragraph (1) on an annual basis for each of the two years following the submission of the report under such paragraph and submit such updates to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives.”
Credits
1958–2003 · 8 acts
- 1958Pub. L. 85–857, , 72 Stat. 1253, § 5011
- 1961amended Pub. L. 87–314, , 75 Stat. 675
- 1976Pub. L. 94–581, title II, § 210(e)(6), , 90 Stat. 2865
- 1979renumbered § 5021, Pub. L. 96–22, title III, § 301(b)(1), , 93 Stat. 61
- 1980Pub. L. 96–330, title IV, § 402(a), , 94 Stat. 1051
- 1991renumbered § 8121, Pub. L. 102–40, title IV, § 402(b)(1), , 105 Stat. 238
- 1991Pub. L. 102–83, § 4(a)(3), (4), (b)(1), (2)(E), , 105 Stat. 404, 405
- 2003Pub. L. 108–170, title IV, § 403(a), , 117 Stat. 2062.
Show as published
(Pub. L. 85–857, , 72 Stat. 1253, § 5011; amended Pub. L. 87–314, , 75 Stat. 675; Pub. L. 94–581, title II, § 210(e)(6), , 90 Stat. 2865; renumbered § 5021, Pub. L. 96–22, title III, § 301(b)(1), , 93 Stat. 61; Pub. L. 96–330, title IV, § 402(a), , 94 Stat. 1051; renumbered § 8121, Pub. L. 102–40, title IV, § 402(b)(1), , 105 Stat. 238; Pub. L. 102–83, § 4(a)(3), (4), (b)(1), (2)(E), , 105 Stat. 404, 405; Pub. L. 108–170, title IV, § 403(a), , 117 Stat. 2062.)