Defense Energy Support Ce

Defense Energy Support Ce

Fact Book FY 2005

Twenty-Eighth Edition

Supporting Worldwide Missi

Supporting Worldwide Missi

With DESC Energy Around The 

With DESC Energy Around The 
TITLE PAGE

Foreword 1DESC CORPORATE POSTUREDESC History

2

DESC Mission 

3

DESC Vision

4

Director’s Update-FY 2005 5 Director’s Plan-FY 2006

6

DESC Organization

7

DESC Worldwide Locations (Map)

8

Director’s Biography

9

Deputy Director’s Biography 10Director of Operations’ Biography 11DESC Primary Phone Numbers 12-13Energy Summary 14Military and Civilian End Strengths 15Operations Program 16PETROLEUM & NATURAL GASStatement of Financial Conditions 17Statement of Sales 18Net Sales by Category 19Product Cost 20Purchases by Category 21Worldwide Bulk Fuel Ending Inventory 22Direct Supply Natural Gas 23

TITLE INFRASTRUCTURE DATANumber of Defense Fuel SuppoCost of Storage/Distribution ServSustainment, Restoration and MNumber & Size of Domestic RefDESC BUSINESS VENTUDESC Optimization Projects Energy Savings Performance CoUtility Privatization Awards/Cost Small Business Program AchievFUEL TRANSPORTATIONFY05 Worldwide Bulk Product TTransportation Expense Demurrage Collected PRODUCT TECHNICAL RBulk Technical Review ( Bar ChaBulk Technical Review Bulk Top Seven Technical RevieDirect Delivery Technical Review Direct Delivery Technical Review Direct Delivery Top Five Technic

TABLE OF CONTENTS
TABLE OF CONTENT

TITLE PAGEINTERNATIONAL AGREEMENTS Facility/Service Agreements 43Product Agreements 44DESC CONTRACT STATISTICSPetroleum Contract Introduction 45Contract Award Data 46Top Ten Petroleum Contractors 47Top Ten Installation Energy Contractors 48Top Ten Military Customers 49DESC Managed Storage Contracts 50Environmental Contracts 51Testing Contracts 52Energy Savings Performance Contracts 53Utility Privatization Support 54Installation Energy 2005 Contract Awards 55Into-Plane Contracts 56Ships Bunkers Contracts 57Optimization COCOs Contract Costs 58Alongside Aircraft Refueling 59FUELS PROCUREMENTPetroleum Procurement (Bulk Fuels) 60Customer Organized Groups (COGs) 61Posts, Camps and Stations Contracts 62Coal 63

TITLE COST AVOIDANCE/SAVINFederal Agencies Department of Defense DESC’s Competitive Electricity PElectricity Restructuring Status Air Card DoD Fleet Card Sea Card MISSILE FUELS POSTURMissile Fuels Business Profile Missile Fuels New Emerging ProMissile Fuels Customer Profile Missile Fuels Major Program SupMissile Fuels Launch Support Missile Fuels Launch Vehicles anMissile Fuels Number of ContainDESC’s “THE BEST OF”Highlights of FY 2005 
FOREWORD

The Defense Energy Support Center Fact Book contains statistical information regarding the Center’s business operations. The Fact Book reflects the Center’s operational status at the end of fiscal year 2005 unless otherwise indicated. The intent is for the use of this publication as a source for general information

purposes onis not to be csource for ofcommunicatyou will find Book can alsat www.desc

Publications web page.
DESC CORPORATE POST

TITLE PAGEDESC History

2

DESC Mission

3

DESC Vision 

4

Director’s Update-FY 2005 5 Director’s Plan-FY 2006

6

DESC Organization

7

DESC Worldwide Locations (Map)

8

Director’s Biography

9

Deputy Director’s Biography 10Director of Operations’ Biography 11DESC Primary Phone Numbers 12-13Energy Summary 14Military and Civilian End Strengths 15Operations Program 16
HISTORY: DEFENSE ENERGY SUPPORT CE

The origin of the Defense Energy Support Center dates back to World War II. Originally, it was an entity of the Department ofInterior as the Army-Navy Petroleum Board. Its mission was to administer the critical petroleum requirements during World War II. In 1945, it was transferred to the War Department and became the Joint Army-Navy Purchasing Agency.The Agency underwent several name changes, but its mission remained essentially the same until 1962. At that time, it became a part of the consolidated military supply organization, the Defense Supply Agency, now known as the Defense Logistics Agency (DLA). The Center was designated the Defense Fuel Supply Center (DFSC) in 1964 as a single entity to purchase and manage the Department of Defense's petroleum products and coal.In 1973, DFSC progressed from a wholesale fuel central procurement activity to a more comprehensive logistics mission as the Integrated Materiel Manager (IMM) for the Department of Defense petroleum requirements. Under Phase I, DFSC added management of the acquisition, storage, distribution and sale offuel with responsibility ending at the Service installation boundary. In 1991 Phase II began, which expanded DLA's ownership of bulk petroleum products to include most bulk storage installations. This effort was divided into two parts, Phase IIA, which capitalized aviation fuel, and Phase IIB, whichwill capitalize all ground fuels. Once Phase II is completed, DLA will own all bulk petroleum products from the point of purchase until its final point of issue to power aircraft, ships, and ground equipment.

In 1990, the DFSC mission was expanded to include the 

supply and management of natural gas, as well as the basic petroleum and coal products. Under this program, natural gas 

requirements were consmission to provide direcwhen determined more local distribution compaFebruary 11, 1998 marthe Center's history with Support Center. With it energy program aimed out of the management management of energy 

mission was added to aprivatization of utility reperformance contracts demand.The initiative to deregulanother mission to DESpursues and awards coCONUS DoD and Fedesame manner as procuOn August 11, 2004, thDLA as the Executive Aauthority was delegated the responsibility to exeDoD Bulk Petroleum, wefficiency and minimizinsupply chain. DESC, despite changes expanded mission, conwarfighter and manage 
DEFENSE ENERGY SUPPORT CE

MISSION

To Provide The Department Of Def

And Other Government Agenci

With Comprehensive Energy Solution

Most Effective And Efficient Manner 
Our Customer Our Customer

’s First Choi

s First Choi

For Energy Solutions For Energy Solutions

DESC

’s Vision s Vision
DEFENSE ENERGY SUPPORT CENTER

DIRECTOR’S UPDATE FOR FISCAL YEAR 200

In Fiscal Year (FY) 2005, the Defense Energy Support Center continued its goal of providing the Department of Defense and other customers comprehensive energy solutions in the most effective and economic manner possible. These solutions include contracting support and management of all petroleumbased fuels, additives and other energy products and services including jet fuels, distillates, missile fuels, chemicals, gases, gasoline, diesel fuels, heating fuels, natural gas, coal and electricity. DESC also continues to manage utilities, privatization and other installation energy conservation efforts. DESC prides itself in continuing partnerships with its customers and the energy industry by fostering and maintaining business alliances around the world. In addition, DESC continues to support the Department of Defense in the Global War on Terrorism by providing fuel to the warfighter in support of Operation Enduring Freedom in Afghanistan and Operation Iraqi Freedom in Iraq, as well as other contingency and peacetime operations around the world. In support of Defense Logistics Agency goals and objectives, DESC continues to initiate and develop new programs and business practices designed to meet the ever-changing challenges ahead, including Business Systems ModernizationEnergy (BSM-E), the Balanced Scorecard, information technology and transformation issues. 

The Energy Enterprise system privatization procontinues to provide priand Air Force. Additionperformance contracting as part of their efforts to renewable energy usagDESC is committed and Logistics Agency CustoProgram. In Fiscal Yeacustomer-focused proceSales (Account and OpAnalytics. DESC particfor Account Managemereengineered enterprise 

with select DLA enterprMarketing and Opportuhave been trained on thcontinue to actively partprocesses and workaidsDESC’s continued succchallenges is due to the commitment of over 800 whose goals include exmission needs - wherev
DEFENSE ENERGY SUPPORT CENTERDIRECTOR’S PLAN FOR FISCAL YEAR 2006

DESC is dedicated to providing continuous energy support to the warfighter and will strive to fulfill its mission in every way possible. Along with current Commodity Business Unit’s (CBUs) mission requirements, DESC will support and play an integral part in DLA strategies and initiatives. DESC’s continuing support consists of the following:

 Designation of a DESC Program Manager for Research and 

Development (R&D) on July 29, 2005 for the establishment of a DESC Program Office in fiscal year 2006;

 Maintain on-going efforts supported by DESC R&D Funding to 

include; study of Hydrogen as a defense fuel, study to identifyadaptive planning systems throughout DOD that use CL III data, and study of JP-8 +100 additive;

 We will enhance and further develop DESC’s Balanced 

Scorecard (BSC) to provide a true representation of DESC’s business and align strategically to DLA’s BSC;

 We will ensure DESC’s financial statements are measured 

internally to commercial audit standards and procedures and reflect a true picture of DESC’s financial operations;

 We will seek out and 

supplier/vendor allian

 We aggressively sup

Defense (OSD) to acutility infrastructure to support the Warfighte

 We will continue to ga

implement newly depManagement processAnalytics that will prodisciplined approach and better support ou
DESC ORGANIZATION

DIRECTOR

DEPUTY DIRECTOR

INTERNAL

REVIEW

OFFICE

OFFICE OF 

COUNSEL

FINANCIAL 

OPERATIONS

DIRECTOR

OF

OPERATIONS

SMALL

BUSINESS

OFFICE

EXECUTIVE ASSISTANT

RESEARCH & DEVELOPMENT OFFICE

INSTALLATION 

ENERGY

CBU

ENERGY

ENTERPRISE

OFFICE

CBU

FACILITIES &

DISTRIBUTION

CBU

BULK

FUELS

CBU

DIRECT 

DELIVERY

FUELS

CBU

MISSILE

FUELS

CBU

CONTINGENCY

PLANS

& OPERATIONS

CUSTOMER 

BUSINESS

INTEGRATION

CEN

PROCUR

GOVERNMENT

FUEL CARD PMO

EXECUTIVE OFFICER

EXECUTIV
DESC HQs

FT BELVOIR, VA

DESC AMERICAS EAST

HOUSTON, TX 

DESC MISSILE FUELS

SAN ANTONIO, TX DESC MIDDLE EAST

BAHRAIN

E

GERMANY

DESC WORLDWIDE LOCATIONS

DESC AMERICAS WESTSAN PEDRO, CA

NATO

SPAIN

ITALY

TURKEY

DESC EUROPE

UNITED KINGDOM

SING

KUWAIT
BIOGRAPHY

RICHARD J. CONNELLY RICHARD J. CONNELLY

Director, Defense Energy Support Center

Mr. Richard J. Connelly became Director of the Defense Energy Support Center (DESC) November 3, 2003. As Director of the Defense Energy Support Center, Defense Logistics Agency, Fort Belvoir, Virginia, Mr. Connelly directs the Department of Defense (DoD) organization that is responsible for purchasing and managing all petroleum resources used by the United States military. In addition, Mr. Connelly guides the growing mission of total energy support by developing strategies to buy and sell deregulated electricity and natural gas to DoD and other federal agency customers. In his capacity as the Director, Mr. Connelly also directly supports DoD’s initiative to privatize the military base infrastructure that distributes those utilities (in addition to lighting, heating, air conditioning and water/wastewater systems). Mr. Connelly is a career executive with a long history of service to DLA and the nation. He came to DLA in 1972 as a management intern in the budget office. In 1986, he was appointed to the Senior Executive Service and was named the Budget Officer for the Agency. He later served as DLA Comptroller, as Administrator of the Defense National Stockpile Center, and as the Director, DLA Support Services. He graduated from Boston College in 1968 and served in the United States Army until 1971. He is a graduate of Office Candidate School at Fort Sill, Oklahoma, and served one year in Vietnam. 

Mr. Connelly attended StaBusiness as a Sloan Fellodegree in management in In 2003, he was selected Meritorious Executive. 
BIOGRAPHY

CAPTAIN MARVIN C. WENBERG 

CAPTAIN MARVIN C. WENBERG 

United States Navy

Deputy Director, Defense Energy Support Cente

Captain Wenberg was born in Chicago, Illinois, on 15 April 1952.He graduated from West Lafayette High School in 1970, and Purdue University, West Lafayette, Indiana, in December 1976, with a Bachelor of Science in Chemistry. He is a graduate of theNavy's Petroleum, Oil and Lubricant Intern Program and the ArmedForces Staff College. He received a Master of Science degree in Petroleum Management from the Science and Business Schools, University of Kansas, and a Master of Science in Acquisition andContract Management from the Florida Institute of Technology. Captain Wenberg is also a graduate of the University of MichiganWinter 2000 Executive Training Program.After graduation from Purdue, he attended the Naval Officer Candidate School, Newport, Rhode Island, and was commissioned an Ensign in May 1977. Captain Wenberg was then sent to the Navy Supply Corps School, Athens, Georgia, and after graduation,he completed Submarine School at Groton, Connecticut. He then became the Supply Officer of the USS DANIEL BOONE (SSBN 629) Blue Crew. Some of his other assignments include: Assistant to the Director, Fuel Director, Naval Supply Center, Pearl Harbor, Hawaii;Director, Fuel Department, and Director, Material Turned Into Store, Naval Supply Center, Charleston, South Carolina; Readiness and Services Officer, USS ENTERPRISE (CVN 65). Originally assigned to Defense Fuel Supply Center as the Assistant Chief, Special Acquisitions Division, Captain Wenberg moved up to the position of Chief, Plans, Policy and Systems Office and thenbecame the Executive Officer. 

In May 1998, Captain Wereported to United States Command to assume the Chief, Weapon Systems and Readiness Division (included nuclear surety fuJune 2000, Captain Wenas Chief, Combat LogisticOperations and Logistics Division, J42, and his formand replaced by the J41 duties as Commanding O26 April 2002. In this assproviding leadership and programs within the Navy Naval Petroleum duties. Oassumed duties of the DeSupport Center. He is authorized to wear Submarine Breast InsignJoint Services Officer in tpersonal awards include the Legion of Merit and thHe is a member of the AmAcquisition Community in 
BIOGRAPHY

COLONEL KEITH STEDMAN COLONEL KEITH STEDMAN

United States Army

Director, Operations Defense Energy Support C

Colonel Keith Stedman is assigned as DESC’s Director of Operations. He has received a Bachelor of Science Degree in Public Administration from the University of Arizona and later received a Masters Degree in Logistics Management from the Florida Institute of Technology. His military career began in 1976 and he was commissioned as a Second Lieutenant after completing Officer’s Candidate School.Colonel Stedman’s military education includes the Quartermaster Basic and Advanced Officer Courses, the Leadership Executive Development Course, Armed Forces Staff College and the Army War College. Previous assignments include Commander, 200th Materiel Management Center, Strategic Research Analyst, Strategic Studies Institute; Commander of the 559th Quartermaster Battalion (WS); Chief of both the United States Southern Command and United States Pacific Command Joint Petroleum Offices; Battalion Executive Officer and Support Operations officer, 7th Support Battalion (F), 7th Infantry Division (L); Division Chief, Sacramento Army Depot; Commander B Company, 4th Support Battalion (AVN), 9th Infantry Division (MTR), and Battalion S3, 4th Support Battalion (AVN) 9th Infantry Division (MTR). Healso served as a Platoon Leader and Aide de Camp.

His awards include the LeService medal (first oak lMedal (third oak leaf clus(with oak leaf cluster).
Director 

Deputy Director Executive Officer Corporate Communications Director, Operations Director, Contingency Plans & Operations Director, Energy Enterprise Office Director, Installation Energy Director, Bulk Fuels Director, Facilities Distribution Management Director, Direct Delivery Fuels Director, Missile Fuels Customer Support Office Business Integration Office Executive Agent Office Internal Review Office Small Business Office Office of Counsel Center Senior Procurement Official Director, BSM-E Program Director, Financial Operations Research & Development Office Market Research 
DESC AMERICAS

DESC Americas DESC Americas East DESC Americas West DESC PACIFICDESC Pacific DESC Middle Pacific DESC Korea DESC Japan DESC Alaska DESC EUROPEDESC Europe DESC United Kingdom DESC Mediterranean DESC NATO DESC Spain DESC Turkey DESC Incirlik DESC MIDDLE EASTDESC Bahrain DESC Kuwait 
Purchases At Cost $

Net Sales $ Ending Inventory $ (1) Includes Expenses for Petroleum, Natural Gas, Missile FueTax, Transportation, Facilities, DESC Operations, Corporate O(2) Includes Net Sales for Petroleum, Natural Gas, and Missile (3) Includes Petroleum and Missile Fuel Inventory.

SOURCE: FINANCIAL OPERATIONS

ENERGY SUMMARY

(U.S. DOLLARS IN MILLIONS)

FY05
MILITARY AND CIVILIAN

END STRENGTHS

MILITARY CIVILIAN

AUTHORIZED ONBOARD AUTHORIZED 

FY98 82 71 658 FY99 81 72 649 FY00 76 64 610 FY01 76 61 621 FY02 76 68 710 

FY03 76 67 804 

FY04 78 61 772 FY05 78 62 795 

SOURCE: FINANCIAL OPERATIONS

On 
SOURCE: FINANCIAL OPERATIONS-TRIAL BALANCE REPORT NO. UPFE640A 

FY02 FY03 FY

CIVILIAN PAY 51.3 61.3 73MILITARY PAY 9.2 8.2 6.NON-LABOR 93.5 100.5 98TOTAL $154.0 $170.0 $17

Average Annual Salary Rate ($actual)

$76,412 $83,301 $91,

*INCLUDES OPERATION ENDURING FREEDOM SUPPORT AND COSTS FOR THE BUSINESS SYSTEMS MO

OPERATIONS PROGRAM

(U.S. DOLLARS IN MILLIONS)
PETROLEUM & NATURAL 

TITLE Statement of Financial Conditions Statement of Sales Net Sales by Category Product Cost Purchases by Category Worldwide Bulk Fuel Ending Inventory Direct Supply Natural Gas 
STATEMENT OF FINANCIAL COND

BULK FUEL CATEGORY (U.S. DOLLARS IN 

ASSETS: FY03 FYACCOUNTS RECEIVABLE 304.0 29CLAIMS RECEIVABLE 3.0 31INVENTORIES 2,096.4 3,90UNDISTRIBUTED COLLECTIONS <300.4> <747OTHER ASSETS - <0TOTAL ASSETS $2,103.0 $3,4

LIABILITIES:

ACCOUNTS PAYABLE 616.8 74

CAPITAL:

CASH ALLOCATIONS <1,789.9> <50OTHER LIABILITIES CAPITALIZED/DECAPITALIZED 144.6 14ACCUMULATED OPERATING RESULTS 1671.1 61TOTAL CAPITAL $2,882.8 $3,1TOTAL LIABILITIES AND CAPITAL $3,056.3 $3,4

CAPITALIZED INVENTORIES 604.7 63DECAPITALIZED INVENTORIES <3.7> <3OTHER ASSETS CAPITALIZED/DECAPITALIZED 2,256.0 2,25UNDISTRIBUTED DISBURSEMENTS <443.2> <44OTHER LIABILITIES <.1> 36

TOTAL LIABILITIES $173.5 $33

SOURCE: DEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS-CO-TAFEG) 
STATEMENT OF SALES

PETROLEUM, NATURAL GAS AND MIS

(U.S. DOLLARS IN MILLIONS)

PRODUCT: FY03 FY04 U.S. ARMY 372.0 439.5 U.S. NAVY 1,742.2 1,627.3 U.S. AIR FORCE 2,764.8 2,841.0 U.S. MARINE CORPS 22.7 22.7 OTHER DoD 14.8 34.8 TOTAL DoD $4,916.5 $4,961.6 

OTHER GOVERNMENT AGENCIES 386.2 409.2 

SUBTOTAL $5,302.7 $5,370.8 

DISTRICT OF COLUMBIA - - FOREIGN GOVERNMENTS 137.3 742.8 DoD CONTRACTORS 17.4 15.6 

NET SALES $5,206.1 $5,926.1 

UNIDENTIFIED ISSUES - 7.1 COMMERCIAL - - MWR ACTIVITY - - STATE & LOCAL GOVERNMENTS - - 

TOTAL GROSS SALES $5,457.4 $6,136.3 

LESS:

PRICE REDUCTION ON SALES 1.2 3.0 MATERIAL RETURNS/CREDITS APPLIED 248.2 207.2 

SOURCE: FINANCIAL OPERATIONS 
NET SALES BY CATEGORY 

PETROLEUM AND NATURAL G

SOURCE: FINANCIAL OPERATIONS

PETROLEUM (Thousands of Barrels)

BULK and PC&S: FY03 FY04 

AVGAS 4 7 DISTILLATES & DIESEL 24,528 22,084 GASOHOL 7 9 JP-4, JAB, JAA, & JA1 2,721 1,818 JP-5 16,294 13,974 JP-8, JTS 81,022 78,238 LUBE OILS 28 28 MOGAS (LEADED & UNLEADED) 1,541 895 RESIDUALS 1,094 1,281 BULK SUBTOTAL 127,239 118,334 

TF-RIO - 10,042 

TOTAL PETROLEUM 142,500 144,000 

NATURAL GAS (Millions of Dekatherms) 18.45 17.60 INTO-PLANE 4,780 5,094 BUNKERS 8,026 8,370 LOCAL PURCHASE 2,455 2,160 
PRODUCT COST 

PETROLEUM AND NATURAL G

SOURCE: FINANCIAL OPERATIONS

PETROLEUM (U.S. DOLLARS IN MILLIONS)

BULK CATEGORY: FY03 FY04 

AVGAS 0.7 1.2 DISTILLATES & DIESEL 901.7 919.8 GASOHOL 0.4 0.5 JP-4, JAB, JAA, & JA1 529.6 231.7 JP-5 653.8 722.7 JP-8, JTS 2,659.4 3,425.7 LUBE OILS 3.5 3.5 MOGAS (LEADED & UNLEADED) 65.5 55.1 RESIDUALS 50.0 38.4 BULK SUBTOTAL $4,864.6 $5,398.6 

TF-RIO - 561.4 

TOTAL PETROLEUM $5,564.3 $6,750.8 

NATURAL GAS $96.6 $99.3 MISSILE FUEL $36.1 $32.2 INTO-PLANE CATEGORY 258.1 315.3 BUNKERS CATEGORY 297.6 332.0 LOCAL PURCHASE 144.0 143.5 
PURCHASES BY CATEGORY 

PETROLEUM AND NATURAL G

SOURCE: FINANCIAL OPERATIONS

PETROLEUM (Thousands of Barrels)

BULK and PC&S: FY03 FY04 

AVGAS 5 7 DISTILLATES & DIESEL 25,245 21,039 GASOHOL 8 9 JP-4, JAB, JAA, & JA1 11,390 5,356 JP-5 17,918 16,055 JP-8, JTS 72,202 74,710 LUBE OILS 28 28 MOGAS (LEADED & UNLEADED) 1,493 692 RESIDUALS 1,561 1,347 BULK SUBTOTAL 129,850 119,243 

TF-RIO - 10,042 

TOTAL PETROLEUM 145,109 144,825 

NATURAL GAS (Millions of Dekatherms) 18.5 17.6 INTO-PLANE CATEGORY 4,777 5,094 BUNKERS CATEGORY 8,023 8,286 LOCAL PURCHASE 2,459 2,160 
WORLDWIDE BULK FUEL ENDING INV

PETROLEUM INVENTOR

(Barrels & U.S. Dollars in Millions)

PRODUCT BARRELS DOLLARS BARRELS AVGAS 0.0 $0.3 0.DISTILLATES & DIESEL 10.4 $544.7 9.JP-4 (JP-4, JAB, JAA, & JA1) 2.9 $188.7 4.JP-5 14.7 $821.7 14.JP-8 28.4 $1,963.2 29.LUBE OILS 0.0 $3.1 0.MOGAS (LEADED & UNLEADED) 0.2 $13.3 0.RESIDUALS 0.4 $11.2 0.ADDITIVES 0.0 $4.0 0.TOTAL ON-HAND & INTRANSIT 59.5 $3,879.2 59.3 

FY04 FY

SOURCE: FINANCIAL OPERATIONS 
DIRECT SUPPLY NATURAL G

DIRECT SUPPLY NATURAL G

PROGRAM SUMMARY FY05 PROGRAM SUMMARY FY05

 TOTAL 

 DTH

 T

V

DWCF FUNDED 16.03M $10

SERVICE FUNDED 31.44M $22TOTALS 47.47M $33

Dekatherms (DTH) and Dollars

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT 
INFRASTRUCTURE DAT

TITLE Number of Defense Fuel Support Points Cost of Storage/Distribution Services Sustainment, Restoration and Modernization Number and Size of Domestic Refineries 
NUMBER OF DEFENSE FUEL SUPPORT POIN

GOVERNMENT-OWNED FUEL 

FY05 

TYPE OF OPERATION ARMY NAVY AIR FORC

 GOVERNMENT-OWNED GOVERNMENT-OPERATED (GOGO) 175 41 166  GOVERNMENT-OWNED CONTRACTOR-OPERATED (GOCO) 22 30 42  CONTRACTOR-OWNED CONTRACTOR-OPERATED (COCO) 0 0 0  NORTH ATLANTIC TREATY ORGANIZATION (NATO) 0 0 0  COMMERCIAL PIPELINE 0 0 0  FLOATING STORAGE 0 59 0  FOREIGN GOVERNMENT (FG) 3 0 4  TOTAL 197 130 212  Note: Defense Fuel Support Points (DFSPs) as of September 30, 2005  * Includes 2 Service-managed, DLA-funded GOCOs  GOCOs in caretaker status during environmental cleanup not included in numbers 

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
COST OF STORAGE/DISTRIBUTION S

GOGO/GOCO/COCO/FG/NATO

0

50

100150200250

FY01 FY02 FY03 FY04 

$MILLION #TERMINALS

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
0

20406080

100120140160180200220240260

94 95 96 97 98 99 00 01 02 

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT

MILLIONS OF DOLLARS 

SUSTAINMENT, RESTORATION AND MOD
NUMBER AND SIZE OF DOMESTIC RE

(BY CALENDAR YEAR)

Source for 1986-1994, 1997, 1999-2005: US Department of EnergySource for 1996, 1998: Oil and Gas Journal

Total 199 151 154 152 150 147 145 

Over 175,000 23 31 32 32 34 36 36 100,001 - 175,000 32 26 25 24 23 22 22 

50,000 - 100,000 38 37 42 42 41 40 40 

Less Than 50,000 106 57 55 54 52 49 47 

1990 1998 1999 2000 2001 2002 2003 

Crude Distillation CapacityBattels/Day
DESC BUSINESS VENTUR

TITLE DESC Optimization Projects Energy Savings Performance Contract Awards Utility Privatization Awards/Cost Avoidance Small Business Program Achievements 
DESC OPTIMIZATION PROJECT

($ IN MILLIONS)

* Savings are 20 year NPV ($M)

** Savings are 5 year NPV ($M)

*** Savings are 4 year NPV ($M)

LOCATION SERVICE TYPE CONTRACT 

DATE

SAVINGS 

Ft Bragg, NC USA COCO Apr-98 7.5 Schofield Barracks, HI

USA COCO Jun-98 6.7 

Ft Jackson, SC USA COCO Jun-99 1.5 29 Palms, CA USMC COCO Jul-99 5.2 Ft Hood, TX USA GOCO Dec-00 4.5 Hunter AAF, GA USA GOCO Dec-00 0.7 Ft Stewart, GA USA COCO Jun-01 3.5 MC Bases, Okinawa USMC GOCO Apr-02 2.0 Ft Gordon, GA USA COCO Oct-02 0.5 Moffett, CA ANG/NASA COCO May-03 5.0 Ft Lewis, WA USA COCO Sep-03 6.0 Simmons/Camp Mackall, NC

USA GOCO Sep-03 3.5 

Ft. Carson, CO USA COCO Mar-04 8.7 Ft. Campbell, KY USA COCO Jul-05 2.1 TOTAL $57.4

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT
ENERGY SAVINGS PERFORMANCE CON

ENERGY SAVINGS PERFORMANCE CON

AWARDS TO DATE AWARDS TO DATE

LOCATION

ENERGY 

CONSERVATION CONSERVATION 

MEASURES

ENERGY 

SERVICE SERVICE 

COMPANY COMPANY 

(ESCO)

DATE

TOTA

AWAR

AMOUN

Fort Hood, TX

UMCS Improvements

Vending Machine Controls

Cooling Tower VFDs

Lighting Retrofit 

Johnson 

Controls

Sep 03 $13.6 

Aberdeen Proving 

Ground, MD

GSHP CES Sep 01 $15.0M 

Northeast Regional 

Office (NERO) 

formerly MDW

15 ECMs Pepco Gov’t Services LLC Jul 99 $216.0

Fort Monmouth, NJ Lighting Upgrade HVAC Renovation

UESC Implementation 

GHP

Cogeneration System Site

Preparation/Feasibility

Ameresco 

Solutions

Sep 03 $56.6M 

Carlisle Barracks, PA Direct Digital Controls HVAC EPS Jul 02 $16.3M 

Fort Hamilton, NY Lighting Retrofits Energy Management

Control System

Water Savings

ConEdison

Solutions

Nov 01 $7.3M 

Fort Jackson, SC Lighting Upgrades GSHP Retrofits

Chiller Plant Upgrades

Demand Limiting System

Ameresco

Solutions

Sep 01 $43.8M 

NOTE: FY 04 & 05 projects were placed on hold since legislative authority had expired. New legislativenacted as of August 05 and energy savings projects are now proceeding.

SOURCE: ENERGY ENTERPRISE COMMODITY BUSINESS UNIT 
UTILITY PRIVATIZATION AWARDS/COST 

UTILITY PRIVATIZATION AWARDS/COST 

LOCATION SYSTEM CONTRACTOR DATE TOTAL AWARD TOTAL AWARD 

AMOUNTS

Fort Lee, Virginia Wastewater American States 

Utility Services 

Sep 05 $141.6 

combined for 

50 Years 

Fort Monroe

Fort Story

Fort Eustis, 

Virginia

Water/

Wastewater

American States 

Utility Services

Sep 05 $75.0M for 

50 Years 

Andrews Air 

Force Base, 

Maryland

Water/

Wastewater

American States 

Utility Services 

Sep 05 $113.6M for

50 Years

Bolling AFB,

Washington DC

Water/

Wastewater

Washington 

Suburban Sanitary 

District

Sep 05 $12.1M for

50 Years

Fort Leavenworth, 

Kansas

Electric LeavenworthJefferson Electric 

Cooperative

Sep 05 $82.1M for

50 Years

Natick, Solider 

System 

Command, 

Massachusetts

Electric N-Star Power 

Company

Sep 05 $.067M for 

Design Phase

SOURCE: ENERGY ENTERPRISE COMMODITY BUSINESS UNIT 
UTILITY PRIVATIZATION AWARDS/COST AV

UTILITY PRIVATIZATION AWARDS/COST AV

LOCATION SYSTEM CONTRACTOR DATE TOTAL AWARD TOTAL AWARD 

AMOUNTS

Fort Knox, 

Kentucky

Wastewater/

Stormwater

Hardin County 

Water District No.1 

Sep 04 $150.0M 

combined for 

50 Years

Fort Monroe

Fort Story

Fort Eustis, 

Virginia

Electric Dominion Virginia 

Power Corporation

Jun 04 $73.1M

50 Years

Fort Lee,

Virginia

Electric Dominion Virginia 

Power Corporation

Jun 04 $67.5.0M

50 Years

Fort Bliss,

Texas

Water/

Wastewater

American States 

Utility Services 

Jun 04 $197.5M

50 Years

Bolling AFB,

Washington DC

Water/

Wastewater

Washington 

Suburban Sanitary 

District

Nov 03 $12.1M

50 Years

Dobbins ARB,

Georgia

Electric Georgia Power 

Corporation

Oct 03 $7.9M

50 Years

Randolph AFB, 

Texas

Wastewater San Antonio River 

Authority

Sep 03 $11.9M

50 Years

Sunny Point, 

North Carolina

Electric Brunswick Electric 

Membership 

Cooperation

Sep 03 $42.0M

50 Years

Fort Leavenworth, 

Kansas

Water/

Wastewater

American Water 

Services (AWS)

Sep 03 $47.0M

50 Years

SOURCE: ENERGY ENTERPRISE COMMODITY BUSINESS UNIT
UTILITY PRIVATIZATION AWARDS/COST AV

UTILITY PRIVATIZATION AWARDS/COST AV

LOCATION SYSTEM CONTRACTOR DATE TOTAL AWARD TOTAL AWARD 

AMOUNTS

Fort Rucker, 

Alabama

Water/

Wastewater

American Water 

Services (AWS)

Sep 03 $54.0M

50 years

Fort Rucker,

Alabama

Electric Alabama Power 

Corporation

May 03 $88.0M

20 years up to 

50

Fort Rucker,

Alabama

Natural Gas Southeast Alabama 

Gas District

Apr 03 $8.6M

50 years

Fort Bliss, Texas Natural Gas Texas Gas Service Mar 03 $9.5M

10 years up to 

50

Fort McNair, DC Natural Gas 

– GSA

Washington Gas & 

Light Company

Feb 03 $403.0K

10 years

Fort Bliss, Texas Electric Rio Grande Electric 

Cooperative

Oct 02 $98.0M

50 years

Picatinny Arsenal,

New Jersey

Electric Sussex Rural 

Electric 

Cooperative

Sep 02 $43M

50 years

Minn-St Paul Gas Minneapolis Gas 

Company

Sep 01 $92K

6 years

Bolling AFB DC Gas Washington Gas & 

Light Company

Jul 01 $428K

6 years

Fort Detrick, 

Maryland

Gas Washington Gas & 

Light Company

Dec 00 $451K

6 years

SOURCE: ENERGY ENTERPRISE COMMODITY BUSINESS UNIT 
Note: All percentages based on total domestic dollars awarded

Total Domestic Awards $ 3,396,521 

3% 0.00% $ 25 

Svc-Disabled Vet-Owned Small Business Awards

2.10% 1.80% $ 60,649 

Hubzone Small Business Awards

$ 17,703 

1.30% 0.50% Women-Owned Small Business Awards

$ (4

0.50% 0.20% $ 5,537 0.50% 0.00% Section 8(a)

$ 136,617 

Direct CompetitiveSmall Disadvantaged Business AwardsSmall Business Awards 

TARGETS PERFOR. DOLLARS TARGETS PERFOR. DOLLA

Small Business Preference Programs.

FISCAL YEAR 03 FISCAL YEAR 04 

SMALL BUSINESS PROGRAM ACHIE

(In Thousands)

SOURCE: SMALL BUSINESS OFFICE

23.00% 21.20% $ 720,030 

$ 142,154 5% 4.20%

23.00% 29.90% $ 1,188,7

$ 143,5

5% 3.60%

$ 144,

$ 3,971,$ 

3% 0.00%

$ 57,

2.50% 1.40%

$ 41,

1.40% 1.00%
FUEL TRANSPORTATIO

TITLE FY05 World-Wide Bulk Product Transportation Transportation Expense Demurrage Collected 
Transportation Costs

Tanker

48%

Truck

28%

Rail

2%

Pipeline

15% Barge

7%

Number of Shipments

Truck

83%

Tanker

1%

Barge

3%

Pipeline

10%

Rail

3%

Barg

8%

Ta

2

TRUCK RAIL *PIPELINE BA

Shipments 19,360 499 2,538 

CONUS Cost ($ Millions) $ 44.7 $ 4.3 $ 47.2 $ 

Barrels (Millions) 14.8 0.7 61.1 Shipments 11,932 494 1,183 

OCONUS Cost ($ Millions) $ 42.3 $ 2.7 $ - $ 

Barrels (Millions) 3.0 1.0 22.8 

Shipments 31,292 993 3,721 

TOTAL Cost ($ Millions) $ 87.0 $ 7.0 $ 47.2 $ 

Barrels (Millions) 17.8 1.7 83.9 

* Costs associated with OCONUS Pipeline shipments are funded under International Agreement (DESC-F) and have been exclud** Costs associated with OCONUS Tankers include Pre-positioned Vessels.

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT

FY05 WORLD-WIDE BULK PRODUCT TRANS

(Frequency – Cost – Volume)
TRANSPORTATION EXPENSE

(U.S. DOLLARS IN MILLIONS)

SOURCE: FINANCIAL OPERATIONS

WORLDWIDE PETROLEUM FUEL: FY03 FY04 AVGAS - - DISTILLATES & DIESEL 66.8 48.2 JP-4, JAB, JAA, & JA1 35.8 12.3 JP-5 54.7 42.4 JP-8, JTS 219.4 97.9 LUBE OILS 0.1 0.1 MOGAS (LEADED & UNLEADED) 3.3 2.7 RESIDUALS

1.4 2.1 

TOTAL $381.5 $305.7 

WORLDWIDE MISSILE FUEL $2.1 $0.9 
Demurrage Collected 

0.00.51.01.52.02.53.03.5

FY00 FY01 FY02 

Fiscal Y

Dollars (Millions)

DEMURRAGE COLLECTED

(U.S. DOLLARS IN MILLIONS)

* FY 05 value lower due to increased awareness of DESC suppliers and more realistic assess

FISCAL YEAR

200520042003200220012000

TOTAL

$0.04 *

$1.00$1.08$2.40$1.60$3.10

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT 
PRODUCT TECHNICAL REV

TITLE Bulk Technical Review (Bar Chart) Bulk Technical Review Bulk Top Seven Technical Review Direct Delivery Technical Review (Bar Chart) Direct Delivery Technical Review Direct Delivery Top Five Technical Review 
PRODUCT TECHNOLOGY AND STANDAR

TECHNICAL REVIEWS FOR BULK PRO

(FY02 to FY05)

136

105

130 127

9 9

22 27

1

7

0

20406080

100120140

Exception Waiver Deviati

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT 
FY 05

BULK PROGRAM Exception Waiver DeviatioAtlantic/Europe/Mediterranean 1/ 20 3 0 Deep Freeze (Antarctica) 200 Foreign Military Sales 11 2 0 Inland/East/Gulf Coast 2/ 9 5 1 Lubes/Additives3/ 6 6 0 Rocky Mountain/West 4/ 12 6 0 Western Pacific 5/ 20 2 0 Afghanistan/Pakistan 47 0 0 Iraq 020 Jordan 010 

127 27 1 

1/ Atlantic/Europe/Mediterranean: Spain, Azores, Central Europe, United Kingdom, Norway, Italy, Greece, Turkey, Ascension Island, a2/ Inland/East/Gulf Coast: Alabama, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guantanamo Ba

Zone, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, MissHampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South CaroTennessee, Texas (except El Paso), Vermont, Virginia, West Virginia, Wisconsin, and Wyoming.

3/ Lubes/Additives: LO6, LA6, LTL and FSII 4/ Rocky Mountain/West: Alaska, Arizona, California, Hawaii, Idaho, Johnston Island, Kwajalein, Montana, Nevada, Oregon, New Mex

Washington, Wake Island, and El Paso, TX.

PRODUCT TECHNOLOGY & STANDARDIZATIO

TECHNICAL REVIEWS FOR BULK PROG

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT 
PRODUCT TECHNOLOGY & STANDARDIZATIO

TOP SEVEN TECHNICAL REVIEWS SUBMI

FUEL SUPPLIERS UNDER THE BULK PRO

FY05

Technical Reviews

Pour/Cloud Point

Specification Review

Additives

Octane

Alternate Test Methods

Particulate Contamination

Distillation

TOTAL

Percent of To

10.

9.08.47.77.07.05.8

55.

1/ The above chart is all inclusive of exceptions, waivers and deviations and provides information on the ty

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT 
PRODUCT TECHNOLOGY & STANDARDI

TECHNICAL REVIEWS FOR DIRECT DELIVER

(FY02 to FY05)

88

32

85

112

6

17

3

11

1

6

0

20406080

100120

Exception Waiver Deviati

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT 
DIRECT DELIVERY PROGRAM EXCEPTION WAIVER DEVIATION OT

Afghanistan/Pakistan 20 0 0 Bosnia PC&S 040 Bunkers (Domestic) 030 Bunkers (Overseas) 67 2 0 Domestic PC&S 11 0 0 Guam & Tinian 800 Honduras 100 INTO Plane (Domestic) 001 INTO Plane (Overseas) 221 Italy Coupons 300 

112 11 2 

Exception: A request made by an offeror to deviate from the proposed solicitation requirements before contract award. (Examp

requires JP8 and the offeror states that he can only offer or guarantee Jet A1)Waiver: A request made by a contractor to deviate from contract requirements after production of the product (one-time reque

(Example: The contractor tests the finished product and finds the distillation 10% recovered temperature does not meet specificcontractor requests DESC to accept the product as is.)Deviation: A request made by contractor to deviate from contract requirements after contract award but prior to production of t

A contractor receives a new crude oil and believes he shall deviate from a particular specification requirement using his normal contractor requests permission to deviate in anticipation of not meeting the specification.

PRODUCT TECHNOLOGY & STANDARDIZATI

TECHNICAL REVIEWS FOR DIRECT DEL

FY 05

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT 
Technical Reviews

Specification Review

Cloud/Pour point

Distillation

Viscosity

Cetane

TOTAL

Percent of T

21

986

6

1/ The above chart is all inclusive of exceptions, waivers and deviations and provides information on the 

suppliers.

SOURCE: BULK FUELS COMMODITY BUSINESS UNIT

PRODUCT TECHNOLOGY & STANDARDIZATIO

TOP FIVE TECHNICAL REVIEWS SUBMITTED BY F

UNDER DIRECT DELIVERY1

FY05
INTERNATIONAL AGREEM

TITLE Facility/Service Agreements Product Agreements 
FACILITY/STORAGE/PIPELINE & 

PRODUCT SERVICE AGREEMENT

FY05 

(U.S. DOLLARS IN MILLIONS)

# AGREEME

11

322

1836

REGION

DESC-EUROPEDESC-MIDDLE EASTDESC-PACIFICDESC-AMERICASFEA’S/RIK’STOTAL

** Net: Sales to Foreign Govt = $164.5 / Recd from Foreign Govt = $66.8

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
PRODUCT AGREEMENTS

FY05 

(U.S. DOLLARS IN MILLIONS)

*Foreign exchange agreements/replacement in kind **Net: Sales to Foreign Govt = 71.9M / Recvd f

# AGREEME

031

1822

REGION

DESC-EUROPEDESC-MIDDLE EASTDESC-PACIFICFEA’S/RIK’STOTAL

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
DESC CONTRACT STATIST

TITLE Petroleum Contract Introduction Contract Award Data Top Ten Petroleum Contractors Top Ten Installation Energy Contractors Top Ten Military Customers DESC Managed Storage Contracts Environmental Contracts Testing Contracts Energy Savings Performance Contracts Utility Privatization Support Installation Energy 2005 Contract Awards Into-Plane Contracts Ships Bunkers Contracts Optimization COCOs Contract Costs Alongside Aircraft Refueling 
PETROLEUM CONTRACT INTRODU

FY05

NATURE OF DESC PETROLEUM PRODUCT CONTRA

9 Contracts are requirements-type contracts.9 Minimum/maximum delivery order limitations are defined.

9 Fuel is called forward through delivery orders.

9 Contracts contain price adjustment clauses.9 Contract prices are indexed to market price indicators.9 All indicators are carefully selected and tested by the DESC Market Rese

Office.

9 Contract prices are adjusted upward or downward as indicators rise or f

9 DESC pays the contract price in effect on the date of delivery, or as other

contract price.

SOURCE: DIRECT DELIVERY FUELS COMMODITY BUSINESS UNIT 
DOLLARS 

MILLIONS

BULK FUEL DIVISION 

DOMESTIC 4,402.1 OVERSEAS 1,881.4 LUBES/ADDITIVES/JPTS/FMS 178.6 OPERATION IRAQI FREEDOM/ENDURING FREEDOM 697.1 

GROUND FUELS DIVISION 

DOMESTIC 842.3 OVERSEAS 344.7 

 BUNKERS 316.8 SPECIALTY FUELS DIVISION 

INTO-PLANE 651.4 

FACILITIES PROCUREMENT DIVISION 

STORAGE 65.5 ALONGSIDE AIRCRAFT REFUELING 19.6 ENVIRONMENTAL 13.2 TESTING/SERVICES 1.2 

 MISCELLANEOUS/FMS 40.2 INSTALLATION ENERGY 

NATURAL GAS 1,019.3 COAL 36.3 ELECTRICITY 255.2 

ENERGY ENTERPRISES

PRIVATIZATION 11.6 

MISSILE FUELS 24.3 

 TOTAL 10,800.8 

CONTRACT AWARD DATA

SOURCE: PROCUREMENT PLANNING AND SUPPORT DIVISION, PROCUREMENT OVERSIGHT BRANCH 
FY05

TOP TEN DESC PETROLEUM CONTR

(U.S. DOLLARS IN MILLIONS)

BPEXXON MOBILSHELLVALERO THE BAHRAIN PETROLEUM COMPANYKUWAIT PETROLEUM CORPORATIONSSANGYONGMOTOR OIL (HELLAS) CORINTH REFMERLIN PETROLEUM CO. INC.INTERNATIONAL OIL TRADING CO.

TOTAL

$ 1,604.1 

$ 1,024.4 $ 1,003.7 $ 564.4 $ 380.3 $ 330.3 $ 264.8 $ 229.0 $ 226.1 $ 214.0 $ 5,840.8 

AWARD AMOUNT

SOURCE: PROCUREMENT PLANNING AND SUPPORT DIVISION, PROCUREMENT OVERSIGHT BRANCH 
FY 05

TOP TEN INSTALLATION ENERGY CONT

(U.S. DOLLARS IN MILLIONS)

Coral (Gas) - $42.3

Seminole (Gas) - $45.6

Hess (Gas) - $52.2

Cascade (Gas) - $58.5

Wasatch Energy, LLC (Gas) - $62.8

Tiger Natural Gas, Inc (Gas) - $91.4

BP (Gas) - $99.7 

Select Energy - $109.3 (Gas-$60.8 Elec-$48.5

Constellation (Elec) - $172.5

WGES (Gas) - $195.0

* Represents FY05 single and multi-year contracts

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT 
INSTALLATIONS QUANTITY 

MCCHORD AFB (WA) 200 CHARLESTON AFB (SC) 173 TRAVIS AFB (CA) 148 MCGUIRE AFB (NJ) 114 HABBANIYAH AFB (IRAQ) (CAMP VICTORY NORTH) 79 SHAYKH HANTUSH AFB (IRAQ) 99 DYESS AFB (TX) 64 SEYMOUR JOHNSON AFB (NC) 64 BARKSDALE AFB (WA) 62 ALTUS AFB (OK) 61 

SOURCE: FINANCIAL OPERATIONS – FINANCIAL RECORDS

DEFENSE ENERGY SUPPORT CEN

TOP TEN CUSTOMERS 

FOR FY05

(GALLONS & U.S. DOLLARS IN MILLIONS)
OCONUS

COCO 14 8.8

GOCO 6 1.5 

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT

16 

7 

CO

NOTE: FIGURES REPRESENT ACTUAL CONTRACTS (NOT TERMINALS)

NUMBER BARRELS NUMBER 

OF CONTRACTS (Storage Capacity) OF CONTRACTS 

(In Millions) 

DESC MANAGED STORAGE CONTR

FY05 
ENVIRONMENTAL CONTRACTS

FY05

•22 Assessment/Remediation Contracts at DLA-Man

3⁄410 Active/12 Inactive

•7 Environmental Service Contracts

3⁄4Preparation of Environmental Plans3⁄4Environmental Audits3⁄4Occupational Safety and Health Services3⁄4Pollution Prevention Studies and Assessments

3⁄4Oil Spill Response Training3⁄4Compliance Monitoring

3⁄41 Blanket Purchase Agreement

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
TESTING CONTRACTS

FY05

• 4 Domestic contracts for 32 locations• 5 Overseas contracts for 22 locations

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
ESPC CONTRACT AWARDS to Date (Total Value Total Value – $371.6M) $371.6M)

• Fort Hood, Texas • Fort Monmouth, New Jersey • Carlisle Barracks, Pennsylvania • Fort Hamilton, New York• Fort Jackson, South Carolina• Aberdeen Proving Ground, Maryland• Northeast Regional Office

SOURCE: ENERGY ENTERPRISE COMMODITY BUSINESS UNIT

ENERGY SAVINGS PERFORMANCE CONTR

ENERGY SAVINGS PERFORMANCE CONTR

Utilizing Memorandum of Understanding Utilizing Memorandum of Understanding

Partnering with DOE to Increase Customer Suppo

Partnering with DOE to Increase Customer Suppo

The terms “energy savings con

contract” mean a contract w

services for the design, acquisi

where appropriate, mainte

conservation measure or serie

[42 

NOTE: FY 04 projects were placed on hold since legislative authority had expired. New legislative autenergy savings projects are now proceeding.

Types of Energy Improvements• Geothermal Heat Pumps• Heating and Air Conditioning • Vending Machine Controls• UESC Implementation• Lighting Upgrades/Retrofits• Cogeneration System Site• Lighting Retrofits• Cooling Towers• Variable Speed Motors/Drives

DoD Renewable Replication Pilot ESPC

• DoD and DOE have Identified 26 DoD Installations as candidates• Location: Western and Central United States • Technologies Identified:

9 Daylighting & Lighting Technology9 Transpired Solar Collectors9 Solar Swimming Pools9 Grid Connected Photovoltaics 
UTILITY PRIVATIZATION SUPPO

UTILITY PRIVATIZATION SUPPO

Ongoing Actions Ongoing Actions C

C

FY 2005 – (Total Valu

(Total Valu

Fort Eustis, VA Fort Eustis, VA – Wate

Fort Story, VA Fort Story, VA – Wate

Fort Monroe, VA Fort Monroe, VA – Wa

Fort Lee, VA Fort Lee, VA – Wastew

Fort Leavenworth, KS Fort Leavenworth, KS 

Natick Army Soldier S

Natick Army Soldier S

Andrews AFB, MD, Wa

Andrews AFB, MD, WaFY 2004 – (Total Valu

(Total Valu

Fort Knox, KY Fort Knox, KY – Waste

Fort Monroe, VA Fort Monroe, VA - Elec

Fort Story, VA Fort Story, VA – Electr

Fort Eustis, VA Fort Eustis, VA – Elect

Fort Lee, VA Fort Lee, VA – Electric

Fort Bliss, TX Fort Bliss, TX – Water

Fort McNair, DC Fort McNair, DC – Gas 

FY 2003 – (Total Valu

(Total Valu

Randolph AFB, TX Randolph AFB, TX - W

Sunny Point, NC Sunny Point, NC - Elec

Fort Leavenworth, KS Fort Leavenworth, KS 

Fort Rucker, AL Fort Rucker, AL – Wat

Fort Bliss Fort Bliss – Gas/Elect

Fort McNair, DC Fort McNair, DC – Gas 

FY 2002 – (Total Valu

(Total Valu

Picatinny Arsenal, NJ Picatinny Arsenal, NJ 

FY 2001 – (Total Valu

(Total Valu

Fort Detrick Fort Detrick – Gas (GS

Bolling AFB Bolling AFB – Gas (GS

Minneapolis-St Paul St Paul – 

Working 413 DoD Systems Working 413 DoD Systems

Army 162

Navy 16

Air Force Air Force 223

DLA 12 

Directed in DRID #49, Privatizing Utility Systems (December 23, 1998) and superceded by OSD Guidance (October 9, 2002)

In December 1997, the Deputy Secretary of Defense directed the Military Departments to develop plans for privatizing all of their utility systems (electric, natural gas, water and waste water), except those needed for unique security reasons or where privatization is not economical. Since that time and by request from the Military Services, DESC has established a customercentric team, segmented by Services, to support the Military Departments in their efforts to privatize onbase infrastructure and acquire safe, reliable utility services along the privatized systems.

SOURCE: ENERGY ENTERPRISE COMMODITY BUSINESS UNIT 
INSTALLATION ENERGY

2005 CONTRACT AWARDS

• ELECTRICITY:

– Awarded 6.2B kWh of electricity valued at $356M for – Awarded Renewable Energy Credit (Green Tag) contrac

kWh valued at $573k 

• NATURAL GAS:

– Awarded 166M dths of natural gas valued at $1B for cu

• COAL:

– Awarded 309,700 tons of coal – Estimated Contract $ value: $36.3M 

% of T

Natural Gas

72%

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT 
OVERSE

• 165 LOCATIO• $171M CONT• 5.1M BARREL

INTO-PLANE CONTRACTS

FY05

SOURCE: DIRECT DELIVERY FUELS COMMODITY BUSINESS UNITREPRESENTS ACTIVE CONTRACT DATA AS OF 30 SEP 2005

TOTA

• $326.7M CON• $111.5M NON

DOMESTIC (CONUS)

• 337 LOCATIONS SUPPORTED• $461M CONTRACT VALUE• 7.5M BARRELS 
SHIPS BUNKERS CONTRACT

FY05

DOMESTIC (CONUS)

• 69 PORTS UNDER CONTRACT• $347.2M IN SALES• 2.99M BARRELS

OVERSE

• 118 PORTS IN 

UNDER CON

• $165.4M IN SA• 3.24M BARRE

SOURCE: DIRECT DELIVERY FUELS COMMODITY BUSINESS UNIT

REPRESENTS ACTIVE CONTRACT DATA AS OF 30 SEP 2005
FORT BRAGG, NC - JP-8 & MOGAS-INITIAL 5-YR PERIOD: $4.

SCHOFIELD BARRACKS, HI - JP-8, DIESEL & MOGAS-INITIAL 

29 PALMS, CA - JP-8, DIESEL & MOGAS-INITIAL 5-YR PERIOD

FORT JACKSON, SC - DIESEL & MOGAS-INITIAL 5-YR PERIOD

FORT STEWART, GA - JP-8, DIESEL & MOGAS - INITIAL 5-YR 

FORT GORDON, GA - DIESEL & MOGAS – INITIAL 5-YR PERIO

FORT CARSON, CO – MOGAS, DIESEL, AND JP-8 – INITIAL 5-YR 

SIMMONS/MACKALL (FT. BRAGG), NC – JP-8 – INITIAL 5-YR PE

All contracts are written for five years with 3 five-year options.

OPTIMIZATION COCOs CONTRAC

FY05

(U.S. DOLLARS IN MILLIONS)

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
ALONGSIDE AIRCRAFT REFUEL

FY05

CONUS

• 25 LOCATIONS

• $122.7 MILLION IN CONTRACTS

O

OKINAWA, SOUDA BAY•$6.7 MILLIO

SOURCE: FACILITIES AND DISTRIBUTION MANAGEMENT COMMODITY BUSINESS UNIT 
FUEL PROCUREMENT

TITLE Petroleum Procurement (Bulk Fuels) Customer Organized Groups (COGs) Posts, Camps and Stations 

Posts, Camps and Stations Contracts Coal 
PETROLEUM PROCUREMENT

BULK FUELS

(Estimated Amounts)

$7,159.1 MILLION

124.7 MILLION BARRELS

DOMESTIC

$4,580.7 MILLION

74.9M BARRELS

INLAND/EAST GULF 

COAST AREA

$2,597.8 MILLION

45.7M BARRELS

WESTPAC

AREA

$1,015.7 MILLIO

22.4M BARREL

ROCKY 

MOUNTAIN/WEST

COAST AREA

$1,804.3 MILLION

25.8M BARRELS

SOURCE: PROCUREMENT PLANNING AND SUPPORT DIVISION, PROCUREMENT OVERSIGHT BRANCH

FIGURES REPRESENT CONTRACT AWARDS IN FY05 (NOT ACTUAL PURCHASES)

FY05

LUBES/ADDITIVES 

JPTS/FMS

$178.6 MILLION

3.5M BARRELS

$69

11.4
CUSTOMER ORGANIZED GROUPS 

POSTS, CAMPS AND STATIONS (CO

FY05

COG 8

$25.3 M

.78M BARRELS

COG 7$219.0M

3.36M BARRELS

COG 6$235.4M4.99M BARRELS

COG 4$134.1M3.33M BARRELS

COG $199

6.91

OTHER DOMESTIC$102.15M

2.01M BARRELS

SOURCE: DIRECT DELIVERY FUELS COMMODITY BUSINESS UNITREPRESENTS ACTIVE CONTRACT DATA AS OF 30 SEP 2005
POSTS, CAMPS, AND STATIONS CON

FY05

REPRESENTS SALES DATA AS OF 30 SEP 2005SALES DATA INCLUDES ONLY LINE ITEMS PAID VIA DWCF, DOES NOT CAPTURE FED CIV AGENCIES

SOURCE: DIRECT DELIVERY FUELS COMMODITY BUSINESS UNIT

DOMESTI

3⁄4 247 CON3⁄4 1898 AC3⁄4 3,208 LIN3⁄4 $297.6 M3⁄4 4.34 MIL

OVERSEA

3⁄4 72 CON3⁄4 437 ACT3⁄4 573 LIN3⁄4 $561.0 M3⁄4 7.86 MIL
COAL

FY 05

SUMMARY OF ANNUAL REQUIREM

SHORT REQUIRETONS DOLLAR

ARMY 257,500 $18 MiAIRFORCE 313,970 $21 MiNAVY 138,000 $14.3 MOTHER 40,000 $ 4.7 M

TOTAL 749,470 $58 Mi

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT 
COST AVOIDANCE/SAVIN

TITLE Federal Agencies Department of Defense DESC’s Competitive Electricity Program Electricity Restructuring Status Air Card DoD Fleet Card Sea Card 
By 

diragFY

FY05 Fe

DOEVeteranDepartmNASAOthers

Total 

HISTORICAL PARTICIPATION

0

20406080

100

FY91 FY92FY93FY94FY95FY96FY97FY98FY99FY00FY01FY02FY03FY04FY05

FEDERAL CIVILIAN AGENCY

COST AVOIDANCE

FY 91 – FY 05 = $116.41

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT

FEDERAL CIVILIAN AGENCIE

NATURAL GAS PARTICIPATION & COST A
FY 05 

DoD 

Avo

(D

Army Navy Air ForDoD Total 

DoD Participation

0

20406080

100120140160180

FY91FY92FY93FY94FY95FY96FY97FY98FY99FY00FY01FY02FY03FY04FY05

Army $Navy $ Air Force $ Other DoD $ Total $

FY

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT

DEPARTMENT OF DEFENSE

NATURAL GAS PARTICIPATION & COST A
DESC’s COMPETITIVE s COMPETITIVE

ELECTRICITY PROGRAM ELECTRICITY PROGRAM

Army

Air Force

Navy

Marine Corp

Reserves

Other DoD

Dept of Energy

NASA

Coast Guard

Other Federal Civilian

# of Customers 

Solicited

# of Accounts 

Solicited

# Custom

DESC C

13

7

61

11

34

1

1011

160

20 62

1

48181212

271

77

5363356

DESC, in partnership with the Military Services, has been co

deregulated electricity since May 1998.

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT 
ELECTRICITY RESTRUCTURIN

STATUS

Retail Access Implemented, DESC solicited, no awardsRetail Access pending, DESC monitoring market

Retail Access Implemented, DESC awarded contracts

DESC has experience in all states in which deregulation/restructuring 

requirements have been received. 

SOURCE: INSTALLATION ENERGY COMMODITY BUSINESS UNIT 
AIR CARD

 Warfighter Benefits

– Supports intoplane fueling– Eliminates manual identaplate – Facilitates standard unit prices– Accepted at over 7000 locations worldwide – 190 countries– Non-contract price savings - $6M in FY05

$92.1

$23.6M

SOURCE: GOVERNMENT FUEL CARD PROGRAM MANAGEMENT OFFICE 
 Warfighter Benefits

– Supports fuel and minor vehicle parts/services– Accepted at over 200,000 commercial locations – Eliminates manual paper processes– Facilitates standard unit pricing– $2.6 million direct tax rebates in FY05

DoD FLEET CARD

$

$2.6M

SOURCE: GOVERNMENT FUEL CARD PROGRAM MANAGEMENT OFFICE 
 War fighter Benefits

– Supports ships’ bunker refueling– Total on-line order management system– 24/7 customer service support– Facilitates competition at non-contract locations– Facilitates standard unit pricing– Pilot test commenced Oct 06.

SEA CARD

SOURCE: GOVERNMENT FUEL CARD PROGRAM MANAGEMENT OFFICE 
MISSILE FUELS

TITLE Missile Fuels Business Profile Missile Fuels New Emerging Products Missile Fuels Customer Profile Missile Fuels Major Program Support Missile Fuels Launch Support Missile Fuels Launch Vehicles and Products Missile Fuels Number of Containers Shipped 
MISSILE FUELS BUSINESS PROF

 92 Total NSNs – 64 Active Products

All support DoD programs, weapons systems and/or space progra

Designated DoD IMMSupplier of choice for Federal Civilian customers and commercial 

Commercial Space Launch Act authority

 20 Controlled Storage Points (CSP) $32.3 Million in Sales* 71 Contracts

62 for product9 for services, including transportation

*Down from projected sales due to delays of scheduled launches

SOURCE: MISSILE FUELS COMMODITY BUSINESS UNIT 
DESC MISSILE FUELS

NEW EMERGING PRODUCTS

 Hydroxyl ammonium nitrate (HAN) – Air Force 

AF-L-103 Advanced Propellant – Air Force Dimethylaminoethylazide (DMAZ) (hydrazine replacement) – Navy

 Gels for RP-1, IRFNA, MMH, JP-10 - Air Force, Navy, NASA, Arm

 Liquid Methane/Liquified Natural Gas (propellant grade) – Air Forc

 Methanol/Ethanol (propellant grade) – Army, Air Force RP-2 – Air Force N2O (propellant grade) – Commercial

Ge

R

Pro

AFR

SOURCE: MISSILE FUELS COMMODITY BUSINESS UNIT 
MISSILE FUELS’ CUSTOMER PRO

 DoD

Air ForceArmyNavyUSMCTotal DoD

 Federal Civilian

NASADOETotal Federal Civilian

 Commercial

Total

# of

Customers

185

1811

2

216

17062359

298

SOURCE: MISSILE FUELS COMMODITY BUSINESS UNIT 
MAJOR PROGRAMS SUPPORT

BY THE MISSILE FUELS CBU

 USAF Titan, Delta and Atlas - and commercial follow-on – the “E

Expendable Launch Vehicle)

 F-16 Emergency Power Unit F-15/F-16 Air Intercept Missile, Avenger, Sidewinder  All Cruise Missiles – Navy Tomahawk, Harpoon, & USAF’s ALC

 AIM9 and Stinger Missiles AQM-37C and Lance Missile Drone Programs Fiber Optics Guided Missile (R&D) Wind Tunnels All DoD Laser Programs

 All Space-Based Weapons (R&D) NASA Space Shuttle International Space Station

SOURCE: MISSILE FUELS COMMODITY BUSINESS UNIT 
MISSILE FUELS FY05 LAUNCH SUP

Performance Goal is 100% on time/on spec for all la

Space Shuttle

Delta II

Atlas

III

Titan IV

Delta IV

Atlas V

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

# of Launches

1

4

1

1 1 3

SOURCE: MISSILE FUELS COMMODITY BUSINESS UNIT 
MISSILE FUELS FY05 LAUNCH SUP

LAUNCH VEHICLES & PRODUCTS PROVI

Atlas III Products - Rocket Propellant (RP-1), Liquid Oxygen (LOX), High Purity Hydrazine (HPH)FY05 – 1 Atlas III LaunchTitan Products - Dinitrogen Tetroxide (N2O4), Liquid Hydrogen (LH2), Liquid Oxygen (LO2), A-50 HydrazineFY05 1 Titan IV Launch

Delta II ProductHydrazine Mix, (N2O4), Liquid ORocket PropellaFY05 -4 Delta II 

Space Shuttle PDinitrogen TetroMonomethylhydFY05 – 1 Shutt

Delta IV ProducGaseous HydroGaseous NitrogLiquid Nitrogen Liquid Oxygen (Monopropellant 

FY05 – 1 Delta 

Atlas V Products -Dinitrogen Tetroxide (N2O4)Rocket Propellant (RP-1)Gaseous Nitrogen (GN2)Liquid Nitrogen (LN2)Liquid Hydrogen (LH2)Gaseous Hydrogen (GHE)Liquid Oxygen (LO2)FY05 – 3 Atlas V Launches

EELV Delta IV

Titan

Atlas III 

EELV Atlas V

SOURCE: MISSILE FUELS COMMODITY BUSINESS UNIT 
FY05 MISSILE FUELS TRANSPORTA

NUMBER OF CONTAINERS SHIP

PRODUCT BULK TRAILER GPTUs* DRUM

Argon

63

255

3

Nitric Acid 14

24

359

Deuterium 1

Helium 132 

Hydrazines 9 2 

JP-10 16

N204 2 

PF-1 1

RP-1 25

TOTALS 186

2 

*GPTU: Generic Propellant Transfer Unit / DOT 51 Intermodal Container

SOURCE: MISSILE FUELS COMMODITY BUSINESS UNIT 
DESC’s “THE BEST OF”

TITLE Highlights of FY 2005 
DESC SUPPORT WITH HURRICANE RECOVERY EFFORTS:

Hurricane Katrina, an extremely powerful category 4 hurricane, made landfall near Buras, LA on 29 Aug 05. Top winds reaching about 145 mph, accompanied by 28-foot storm surge, and extensive flooding, devastated the Louisiana and Mississippi Gulf Coast. Hurricane Katrina is expected to be the most costly natural disaster in US history. In the aftermath of Hurricane Katrina, DESC Americas was heavily involved in responding to emergency fuel requirements in support of recovery efforts and in re-establishing normal re-supply to bases and intermediate DFSPs in the impacted area, which consisted primarily of Alabama, Mississippi, and Louisiana. DESC Americas East (AME) supported fuel requirements at six Operational Staging Areas, which included Barksdale AFB, LA; NAS Meridian, MS; Alexandria IAP, LA; Gulfport IAP, MS; Keesler AFB, and Camp Shelby, MS and other key installations in the Joint Operational Area. To assess fuel distribution capabilities, AME Quality Assurance Representatives visited over 45 major fuels terminals and regional airports, including the New Orleans International Airport. While both Colonial and Plantation pipelines were shut down due to power outages for approximately 5 days, impact on DESC operations was minimal. However, the production levels at some of the refineries in the area were reduced due to damage or loss of power, causing DESC Americas East Inventory Managers to seek alternate re-supply methods until the refineries resumed normal operations. Additionally, Intercoastal Waterway traffic was restricted or stopped over a 10-day period, requiring DESC Americas East to arrange for alternate re-supply for those installations normally dependent on barges, such as NAS Pensacola, Eglin AFB, Tyndall AFB, Gulfport ANG, and NAS New Orleans (Belle Chasse). In order to assist with the response effort, the DESC Americas Plans & Operations Officer was assigned to USNORTHCOM as a DESC Liaison Officer (LNO) and three Individual Mobilization Augmentees (IMAs) worked in the Houston, TX office. One of those IMAs later served as an LNO to JTF-Katrina in New Orleans. Due to the unwavering efforts of DESC team, hurricane recovery missions were successfully supported without any aviation fuel limitations.Less than one month later, Hurricane Rita made landfall as a Category 3 hurricane (120 mph) at 0230 CDT, 25 Sep 05 in extreme southwest Louisiana between Sabine Pass and Johnson's Bayou, LA. At one point, Rita was categorized as the third strongest Atlantic storm in history with measured sustained wind speeds of over 175 mph (Category 5 hurricane). Initially, Houston was in the direct path of the hurricane and AME

activated their COOP (21 SMissile Fuels office in San Wright (detailed from DoDDESC LNOs to USNORTHconnectivity refresher traindisaster recovery plan. BasExecutive Board (HFEB), D22-23 Sep. After passage othat the AM/AME office waccess to the building. Rita area. AM/AME complied (Houston) to maintain miniminimize traffic congestion AME COOP personnel in Sthe afternoon of 26 Sep. Alaccounted for and DESC Arequirements. All pipeline(Colonial, TEPPCO, and EIn addition, refineries supp(ExxonMobil, Baytown, TXPark, TX) were operationalrefinery, versus their BaytoJP-8 shipments. Calcasieu hardest hit of the refineries damage after the storm, but electrical power and limited Calcasieu was able to restofor DESC by 7 Oct from onDFSP Houston was fully opcontinue critical barge shipsoon back to normal operatrequired. Kathy Mesa returdeparted USNORTHCOM Following the landfall of HDelivery’s Ground Fuels anfuel requirement requests in The divisions have executetotaling more than 1.27 milgallons of gasoline and 4.4federal and military relief e

DEFENSE ENERGY SUPPORT CENTER HIGHLIGH
KINDER MORGAN ENERGY PARTNERS INSTALLS 

FILTRATION & INJECTION SYSTEM AT LAS VEGAS, NV TERMINAL: On August 11, 2005, an advanced filtration and injection 

system was incorporated into the storage and transfer system at the Kinder Morgan Energy Partners Las Vegas, Nevada terminal. The advanced filtration system permits full-flow filtration and receipt of JP-8 into three bulk storage tanks designated for Nellis AFB. The system includes a series of five clay filters, a filter/separator, and a corrosion inhibitor injection system. The highly successful system has been proven capable of handling full-flow rates during peak demand periods experienced during Red Flag exercises at Nellis AFB.PRIDE COMPANIES, L.P. ESTABLISHES DFSPS IN ABILENE 

AND ALEDO, TX: Pride Companies, L.P. (aka Pride Refining), 

headquartered in Abilene, TX, operated a 13.5-mile pipeline between their Abilene, TX refinery and DFSP Tye, TX. Pride Refining received their JP-8 from the Gulf Coast via Shell pipeline. Pride then shipped JP8 to DFSP Tye and stored it under an FOB destination contract. Product was then shipped to Dyess AFB via a Pride-owned pipeline under a tender agreement. In February 2005, Magellan Pipeline purchased the Shell Pipeline and then filed a tender for originating product onto the line out of DFSP Houston for shipment to Pride-owned terminals in Aledo, TX and Abilene, TX. Pride also filed tenders to provide storage and truck delivery services from DFSP Aledo to various activities, as well as storage and pipeline delivery services from DFSP Abilene to DFSP Tye and from DFSP Tye to Dyess AFB.

DESC AMERICAS PART

LIQUID LOGISTICS EX

(formerly know as POLEXand transportation exercise and tank trucks to transport under the command and cosuccessfully completed the 2-week exercise is designed Reserve, and National Guarreceived invaluable training LANES training and soldiesupporting QLLEX-05 operFort Bragg, Fort Devens, Ffollowing DFSPs also partiSelma, DFSP Ludlow, DFSDFSP Davis-Monthan. Partincluded: Pope AFB, SeymANG, Barnes ANG, BradleWestover ANG, Brockton AANG, McGuire ANG, New Huachuca, AASF#2 MaranFort Bliss. Combined, the DOf this amount, 214,317 gastorage locations in fuel systhen delivered to customers units received valuable traiwere satisfied with the servDESC Americas Quality Apetroleum tank trucks, resuaddition, all lab samples tesrate. The 475th Quartermasimilar transportation exerclocated "warrior" exercisesa part of a larger, more compartners and customers for service and training and assexercise.
DESC-ME 2005 HIGHLIGHTS FOR 2005:

Calendar year 2005 brought many challenges and opportunities to Defense Energy Support Center-Middle East (DESC-ME), placing the office at the forefront in the Global War on Terrorism (GWOT) through its direct support of OPERATION ENDURING FREEDOM (OEF) and OPERATION IRAQI FREEDOM (OIF). Headquartered in sunny Bahrain, Colonel Dan Jennings and his staff of 31 dedicated military and civilian professionals provide petroleum logistics support and managementoversight in 27 countries within the United States Central Command (USCENTCOM) area of operations.OPERATION ENDURING FREEDOM (OEF): The year brought 

numerous successes in the Afghan Theater under the auspices of OEF and the GWOT. In spite of harsh weather, inferior roads, driver strikes, customs/border issues, and Al Qaeda-associated insurgent activity in the region, DESC-ME provides well over 100 million gallons of fuel to Combined Forces Command–Afghanistan and the Combined Joint Task Force-76. Day in and day out, dedicated third-country national truck drivers faced the hazards of operating in Afghanistan to complete the arduous seven day journey from the refineries to coalition bases throughout Afghanistan. In order to provide the OEFcommanders greater flexibility and sustainability, DESC-ME working with the DESC headquarters opened a second source of supply from the north by importing Russian grade TS-1 aviation fuel from Central Asia. This source is critical to the robust petroleum posture vital to US and coalition forces. Another success for DESC-ME in the Afghanistan region was the completion of two new DFSP storage tanks in Kabul. These tanks were inspected and accepted in August 2005 and filled to their maximum safe fill capacity in September 2005, bringing DESC’s strategic reserve for the theater to nearly 2M gallons. As a result of these and other initiatives US Forces and our coalition partners have a robust and dependable source of fuel enabling them to continue their vital contributions to the war on terror. OPERATION IRAQI FREEDOM (OIF): To better support OIF, 

DESC-ME established a new office in Kuwait in February. DESC-Kuwait

is commanded by Major Miis the DESC-ME lead for cooperating in Iraq and Kuwaicontinually provided unparasouthern supply route enteriresponsibilities also include 

Western Iraq from Jordan, Kagreements and the effective Kind (AIK) fuels agreementmillion gallons of JP8, dieseforces in Iraq and Kuwait. Athe addition of the Jordan or petroleum re-supply into Ira

Soldiers anvia Jordan’

“Anbar” pr

of harsh weconvoys defuel monthIraq.DFSP-DJI

Navy Centrcompleted Gulf of AdAden, locaUS Naval vOctober 20completed 

state of the art contractor-owSeptember 2005 and provideoperating in the Red Sea and FUTURE OPPORTUNITI

are many. As DESC-ME mprovide and transform in ordprotect the interests of the Uand Dubai will reduce costs timely support. DESC-ME wagreements capabilities to ityear brings, you can be assuthe needs of the nation and i
DEFENSE ENERGY SUPPORT CENTER-PACIFIC: Defense 

Energy Support Center-Pacific continued to provide top quality and cost effective supply chain management of bulk fuel to the warfighter in the Pacific area of responsibility (AOR) to include operations in more than 44 countries dispersed throughout 105 million square miles. The efforts of the Hawaii based region headquarters and four field offices effected this support. DESC-Pacific continues to be vital in supporting OPERATION ENDURING FREEDOM (OEF) and OEF-Philippines from en route and staging locations such as Diego Garcia, Guam and Hawaii. During the past year, DESC delivered over 1 billion gallons of petroleum products to 76 DFSPs in the Pacific AOR. In addition, DESC-Pacific maintained support for the U.S. Forces participating in OEF-Philippines through coordination with DESC-B/F/P to deliver product to Zamboanga, Manila and Subic Bay, and provide product storage in Subic Bay for the first time since the U.S. pullout in 1992. DESC-Pacific also assisted with arranging the required petroleum products necessary for the Central Identification Lab Hawaii’s (CILHI) search and recovery missions within the Pacific theater. DESC-Pacific stood up 24/7 coverage to respond to a U.S. Pacific Command (PACOM) request for POL support for humanitarianassistance/disaster relief (HADR) effort in Sri Lanka, Indonesia, Thailand, Malaysia, and the Maldives. The PACOM hub for the relief effort centered at Utapao, Thailand where existing into-plane support was available. Bunker contractors responded to requests for operating status: Mumbai, Goa, Chennai and Vishakapatnam, India; Sattahip and Pattaya, Thailand; Mombasa, Kenya; Lumut, Penang, and Port Klang, Malaysia reported they were operational. DESC-Pacific QARs were forward deployed to Sri Lanka, Malaysia, Indonesia, and Thailand to assess support capabilities and assist as needed. DESC Pacific experienced the rotation of four senior leadership billets during the summer of 2005 with change of commands occurring at DESC Pacific, DESC Alaska, DESC Japan and DESC Middle Pacific. DESC Pacific won the Honolulu Federal Executive Board (FEB) awards in the following categories: Mr David Ray (DESC Pacific), Federal Employee of the Year (Professional, Administrative, and Technical); LtCol Dan Semsel (DESC Middle Pacific Commander), Military Officer of the Year; and DESC-Japan, Federal Organizational Excellence.DEFENSE ENERGY SUPPORT CENTER-KOREA: There are 124

MR&E projects from FY96active Army Transportation been reduced from fourteen forces underway in Korea. under a Maintenance and RCenter, and the Korea RegiInstallation Management Adetermine if these remaininDESC-Korea's Quality Divquality assurance and survepeninsula in support of DEthe Logistics Division of DKorea (USFK) by directing bulk fuel with 945 movemetruck. In addition, over 53 mpipeline. In February 2005shipment utilizing the commthere have been 5 shipmentyear-old Trans Korea Pipelbase terminal at Pohang cloWorking Group comprised Ministry of Defense and seseek a completely commercUSFK fuel by 2014 as agrePetroleum Support AgreemDEFENSE ENERGY SUP

the high-octane DESC-Japaerror-free fuel shipments by tank trucks to 108 fuel depoSignificant accomplishmenbilingual liaison with customaintain superb support for customer locations; overseeto include new tanks that bto the warfighter, obtaining $145 million and ensuring closeout for the $22 million These efforts were recognizHonolulu FEB’s Organizat
DEFENSE ENERGY SUPPORT CENTER-ALASKA: During 2005, 

DESC-Alaska completed the source removal of 27,500 tons of contaminated soil at former Defense Fuel Support Point in Whittier, Alaska on Prince William Sound. DESC Alaska has submitted a longterm monitoring and natural attenuation plan to the Alaska Department of Environmental Conservation for approval that will outline the future strategy to finalize remediation methodology on the site. DESC-Alaska once again successfully supported the annual Operation Closed Port and Cool Barge fuel re-supply missions and delivered 140 MBBLs of onspecification JP8 and diesel to the remote sites of Galena AFS, Attu Coast Guard Station, King Salmon AFS and Eareckson AFS. DESC-Alaska remained customer-focused throughout 2005 and continued to provide optimal arctic energy support...all the time! throughout the last frontier...Alaska! DEFENSE ENERGY SUPPORT CENTER- MIDDLE PACIFIC:

DESC-Middle Pacific continued to provide outstanding support to the warfighter in the largest theater of operations. Thanks to active teamwork, the region stands ready to support current operational needs and has laid the groundwork for mission changes of the future, such as the addition of C-17 aircraft at Hickam AFB, HI. MR&E projects included completing repair and upgrade of the hot refueling system at Wheeler AAF, HI supporting the mobility of the 25th Infantry Division and work has begun on checking the continued serviceability of the 3-mile long, 60-year old pipeline that connects Pearl Harbor to the massive bulk storage facilities in Red Hill. The MILCON program completed Phase III and IV of Andersen AFB, Guam’s Type III hydrant systems enhancing support for this vital air mobility hub and work is halfway complete on Phase I of Hickam AFB’s Type III hydrant system. In addition, nearly $25M has been slated to fix decrepit POL systems at Wake Island, another key Pacific hub, with several projects primed to start at the end of FY05 and the beginning of FY06. On the inventory front, Middle Pacific welcomed NAVFAC Hawaii PW7 (formerly PWC-Pearl Harbor) into the realm of capitalization as we continue to help this small function grow in capability and customer support. SEA CARD DEVELOPMENT: The Government Fuel Card Program 

Management Office (DESC-K) directed the development of the Ships bunker Easy Acquisition (SEA) Card. Development began at the commencement of the contract period of performance date of 

January 1, 2005. Through Sealift Command, and the CDESC assets, a comprehenwas developed and signed iprogramming taskings then in Sept 05, and pilot prograsignificant kick-off ceremoCommand in the Norfolk athe ceremony. Many distinCommand, Navy, Coast Guattendance. The SEA Card system in the hands of the wrefueling requirements. Thimprovements over previouinclude transaction captureand ease of use.FUEL CARD PROGRAM 

card program improvementbenefits of fuel cards for thGovernment Fuel Card Proachieved full-up staffing duwas developed and fielded. published OMB Circular, ICharge Cards, drafted guid

Guidebook, and drafted the Card Program Roles, RespAdditionally, 100% Accoufor the AIR Card program, Accountable Official appoiAlso, Service Component Mstrong partnering relationshrepresentative examples of 
COAL: During FY05 the DESC Coal Team experienced another major 

price adjustment in the bituminous coal market. Delivered coal prices 

rose nearly 50% over FY04 contract award prices. Not only was the rising cost of diesel fuel a factor in raising the cost of transportation by rail, truck or barges, other contributing factors included supply and demand, and the limited availability of stoker bituminous coal due to the high demand of utility grade coal. Although we were successful in securing a firm fixed delivered cost on all of our contract awards, the cost kept rising for the small business producers through the performance period. Small business competition was the lowest seen in program history.NATURAL GAS: In FY05, the Installation Energy CBU Direct Supply 

Natural Gas Program (DSNG) awarded its largest program ever, contracting for 166.7M dth of natural gas for an estimated $1.012B for performance during FY06-08. The Natural Gas team awarded 34 contracts and 6 Basic Ordering Agreements earlier in the year than under previous programs, to allow customers greater opportunity to focus on budget stabilization strategies. This approach proved even moreadvantageous during a season of catastrophic hurricanes complicating an already volatile market. The CBU worked closely with all its customers to mitigate the impact. ELECTRICITY: Since the inception of the Electricity Program, DESC 

has been active in all states in which competitive electricity acquisition is permitted, and for which we have received requirements. During FY05 DESC issued solicitations for New York, Illinois, Maine, Texas,Pennsylvania, New Hampshire, Connecticut, Massachusetts, Rhode Island, New Jersey, Maryland and the District of Columbia. The Electricity Team currently has contracts in place for competitive power in DC, MD, TX, IL, NJ, MA and NY. The DESC Electricity Team continues to work closely with our customers and with industry to evaluate and refine the way we conduct business so as to providemaximum support for our customers and to conduct business that closely mirrors commercial industry practice. Program highlights include awarding 1st time contracts for customers located in the state of Massachusetts. In addition, DESC awarded first time contracts for Argonne National Laboratory and Fermi National Accelerator Laboratory. These awards represent the first competitive electricity contracts DESC has awarded in the Commonwealth Edison Service Territory. Six previous solicitations had resulted in the determination that the Utility Distribution Company's (UDC) Power Purchase Option

(PPO), representing the beDESC Electricity Team aw

estimated 6.2B kWh.RENEWABLE ENERGY

DESC Electricity Team as in the quickly growing eneCertificates (RECs). A RErenewable energy generaticommodity. RECs providto meet the Executive Ordeconsumption from new renenergy sources currently cobiomass generation. These growth of local renewable power markets and reduce FY05 fast approaching and be met, DESC increased itInstallations, EnvironmentRevenue Service offices, Dthe National Aeronautical Veteran’s Affairs facilitiesof wind, biomass and geoththroughout the continental $573,095.ENERGY 2005: The DES

the DoD, DOE, GSA sponof the planning committeeshow exhibitors. The confLong Beach, CA. The annprivate sector energy profelatest in leading edge technorganizations improve enerenewable energy goals, anInstallation Energy Office practices for the acquisitioenergy. DESC’s trade shoexcellent CRM opportunity customers and suppliers.
BULK FUELS CONTRACTS FOR TRANSPORTATION FOR 

FUEL DELIVERIES IN KUWAIT & SOUTHERN IRAQ: In 

October of 2004, the Defense Energy Support Center (DESC) was tasked with providing logistical truck transportation support for the distribution of petroleum products sourced within Kuwait to various U.S. Military bases located within Kuwait and Southern Iraq. The mission was assumed by DESC-Bulk Fuels from the Army Corps of Engineers, whose contract was formerly with Kellogg, Brown, & Root. A team was formed to establish a competitive, full and open solicitation, resulting in the award of a contract for the transport services of approximately 440 trucks procured on a per truck, per day basis. The delivery period commenced on February 28, 2005 and extends through February 28, 2006, with two (2) six (6) month option periods. The total dollar value for the resultant contract was approximately $32M and is considered to be a substantial savings from that of the previous logistical support provider. The process was successfully achieved, although timelines were stringent, through the partnering efforts Bulk Fuels, the Center Senior Procurement Office, and the DESC-Middle East Office.PRODUCT TECHNOLOGY & STANDARDIZATION DIVISION 

PARTNERS WITH UNITED KINGDOM DEFENCE FUELS GROUP: The Product Technology & Standardization Division 

continues to improve upon the Petroleum Quality Information System (PQIS) report that provides statistical analysis of Aviation Fuels (AN8, JA1, JP4, JP5 and JP8), Aviation Jet Fuel Thermally Stable (JPTS), Fuel Naval Distillate (F76), Marine Residual Fuel (RME-25) and Gasoline bought under the Bulk Purchase Program. QinetiQ, Ltd. on behalf of the Ministry of Defence, United Kingdom provided 2004 procurement data to be included into PQIS making it a more comprehensive compilation of data worldwide. The PQIS report and its compilation of data can be found at the following web site: http://www.desc.dla.mil/DCM/DCMPage.asp?pageid=99ENERGY UTILITY PRIVATIZATION QAR TRAINING POLICY:

In February 2005, DESC-BQ issued a policy letter providing training requirements to meet the Energy Enterprise CBU pre-award survey needs. This training is a self-paced, computer-based module from available web sites. The supervisor/quality manager must assurecompletion of the self-paced training with the QAR. The policy letter can be found at the following web site: http://www.desc.dla.mil/DCM/DCMPage.asp?pageid=81.

DESC QUALITY CONFE

3rd, 2005, DESC-BQ hostConference brought togetheServices, the US Coast Guathroughout DESC to identipertaining to the quality of conferences are open forumopinions in order to better eeffective and comprehensivfighter.PETROLEUM QUALITY 

Quality Operations DivisioFt. Lee, VA, on July 29, 20(DESC-BQ) and Scott Artrafter receiving 80 hours of of petroleum refining; petroprocedures; quality surveillpetroleum procurement at vpipelines, railcars, tank trucreflected the DESC focus othe students were from miliwith the remainder from vaMarine from the Naval OpeThe success of the course wfrom Ft.Lee's Petroleum anfor the near future. Details http://www.desc.dla.mil/DC
DESC BULK FUELS SUPPORTS TRANSPORTATION 

SUSTAINMENT MISSION: DESC was tasked to provide logistical 

support for truck transportation services for the distribution of petroleum products sourced within Kuwait to various U.S. Military bases in Kuwait and Iraq. This highly complex sustainment mission was assigned to the DESC Bulk Fuels Commodity Business Unit since the original contract with another service agency resulted in a sub-optimal business solution. A contract was awarded in February 2005 to Jassim Transport and Stevedoring Co. WLL (JTC) for the use of approximately 440 trucks per day. The $32 million contract value represented a significant savings of approximately $93 million from the previous logistical services provider. JTC has demonstrated superb commitment and tremendous flexibility in supporting the operational readiness needs of the DESC warfighting customers in Kuwait and Iraq through an uninterrupted supply of petroleum products.DESC COMPLETES STAND-UP OF DFSP KABUL: DESC 

contracted with a service provider to provide storage services in Kabul. This requirement was necessary to implement a “Strategic Fuel Reserve”to support the warfighters operating in the areas in and around Kabul and Bagram, Afghanistan in order to mitigate the negative effects of supply shortages associated with adverse weather conditions, insufficient roads, and political instability within the region. Although working against a very aggressive schedule, the contractor refurbished two existing fuel tanks and provided three additional fuel tanks in order to augment a total standby storage capacity of approximately two million gallons. In late September 2005, fuel levels at DFSP reached safe operating capacity with the assistance of three fuel companies working under contract with DESC.PRODUCT TECHNOLOGY & STANDARDIZATION DIVISION 

(DESC-BP) SUPPORTS ACQUISITION OF BIODIESEL: DESC-BP 

continues to provide key support in the meeting the increasing requirements for alternative fuel products. In particular, team efforts specific to Biodiesel B20 are leading to it becoming a more commercially viable product; DESC-BP is a lead participant in American Society for Testing and Materials (ASTM) Task Force on Biodiesel Stability, and has drafted a commercial ASTM specification for B20 (the adoption of which is highly anticipated by the fuel industry) that is currently going through the subcommittee ballot process. In addition, BP is heavily involved in working with Task Force in developing acceptable methods for measuring the storage stability of biodiesel in order to facilitate passage of the B20 specification draft. BP also provided technical assistance to the Ground

Fuels division in working wHawaii, with the first contrthe required testing in ordeDESC SUPPORTS FINA

launch of the final Atlas III Station occurred on ThursdDESC supported the launch Propellant (RP-1). The rocReconnaissance Office pay

DESC SUPPORTS ATLA

Dinitrogen Tetroxide (N2OOxygen (LOX), Liquid Hy1), to Complex 41 at Cape 11, 2005 launch of an Atlas Mobile Broadband CommuHPH. The Inmarsat 4-serieservices such as Internet, emand palm-sized terminals oNEW HYDRAZINE CON

awarded an unprecedented contract on March 29, 2005competitively solicited for follow-on to an expired Arcdistribution of all grades of engine testing and space vethe F-16 Fighter Aircraft, TSpace Shuttle, and both micontract encompasses the cproduction facility located was expended on preplanniBest Value Source SelectioMission and Management, capability evaluation teamsinterim, customers are beinawarded to Arch Chemicalinventory to support the DEupdated and prepared for p
EMERGENCY SUPPORT TO AIR FORCE TITAN PROGRAM:

DESC provided emergency support to the Air Force Titan Program by expediting railcars and trailers to Cape Canaveral, FL to temporarily store dinitrogen tetroxide (N2O4) Mon 1. The USAF Titan Program was scheduled to launch its final Titan rocket from Cape Canaveral on Monday April 11, 2005 but had to postpone the mission due to problems with the transfer system that loads the launch vehicle with N2O4 from their Ready Storage Vessels (RSVs) at the launch pad directly into the rocket. As the N2O4 was loaded into the vehicle, filters clogged. Although this problem occurred on all three RSVs, the customer determined the problem was not due to the quality of product. The Air Force requested expedited delivery of three DESC N2O4 railcars and as a backup, also requested use of eight DESC N2O4 trailers. Normal transit time for the railcars is two weeks, but DESC was able to negotiate with the railroad to get the cars to the Cape in four days. DESC was also able to negotiate with our carrier contractors for the use of the eight N2O4 trailers. The Titan launch occurred on April 29th, placing an extremely important classified National ReconnaissanceOffice satellite into orbit in support of our Global War On Terror. USAF ABO/LIN SUPPORT: In FY05, DESC became the Local 

Purchase Agent to provide Aviator’s Breathing Oxygen (ABO) (MILPRF-27210) and Liquid Nitrogen (LIN) (Commercial Item Description A-A-59503) to all CONUS USAF bases. DESC provides centralized contracting for requirements aggregated by geographic region, realizing efficiencies, and streamlining support to include quality surveillance of this critical Life Support product. DESC and the Air Force Petroleum Office (AFPET) jointly developed an acquisition strategy to initiate and execute four CONUS regional procurements to support all USAF ABO/LIN requirements. AFPET serves as the single focal point for this initiative and has, in coordination with respective CONUS Major Commands, collected/validated individual wing/base location initial requirements. On June 17, 2005, DESC awarded three (3) five-year firm-fixed price requirements-type contracts for the delivery of ABO and LIN to multiple US Air Force locations in Region I (Southeast US) with ordering to begin July 1, 2005. The contracts are the first awarded under the DESC and AFPET ABO/LIN partnership. Contracts supporting

US Air Force locations in Rean effective date of October locations in Region III (Centan effective date of January Air Force locations in Regioawarded with an effective daassigns a Quality Assurance contractor(s) production or dquality assurance (CQA). Dserving as the sole acquisitiorequirements.DESC PARTICIPATES IN 

CONFERENCE: Represen

Propulsion Conference and EOver 1000 attendees from ththe opportunity to attend ovebreathing propulsion, propelpropulsion. DESC exhibited with hundreds of current and also participated as memberpropulsion standards. DESC DELIVERY SUPPO

VEHICLE (EKV) PROGR

500 lbs of low iron, dinitrogCordova, CA. The product wAgency’s Exo-atmospheric Kthe Ground-Based Midcoursto engage high-speed ballistiatmospheric phase of their trof impact.
HELIUM CYLINDER SHIPMENT TO NIGER: DESC coordinated 

with the Surface, Deployment and Distribution Command (SDDC) to provide a vessel carrier for a shipment of 360 helium cylinders destined for the port of Cotonou, Benin. A freight forwarder will be utilized for onward movement of the palletized cylinders to the final destination in Niger. This shipment required special support from SDDC due to the lack of Department of Defense traffic to this particular port. Once the cylinders are emptied, the SDDC freight forward will palletize the empties and retrieve them for return to the DESC helium contractor's facility in CONUS. The customer is Department of Energy's Energy for the Climate Monitoring Research Facility, Los Alamos National Lab, NM, which is tasked with resolving scientific uncertainties related to global climate change with a specific focus on the crucial role of clouds and their influence on radioactive feedback processes in the atmosphere.DESC SUPPORTS BULK HELIUM DELIVERY TO IRAQ:

DESC’s Bulk Gaseous Helium Support Team stepped up support for the war fighters in Iraq. Gaseous helium is used as a lifting gas to elevate various types of sensor packages to several DoD customer aerostat programs. DESC customers have been able to offer real-time force protection surveillance and information gathering capabilities to field commanders allowing them to more efficiently and effectively accomplish their critical missions. DESC helium “supply and delivery”strategies were continuously updated to ensure the most efficient and economical practices. Helium deliveries to all of the customers were accomplished by land, sea and air, from in-country and CONUS locations. DESC is supporting the United States Army’s Rapid Aerostat Initial Deployment (RAID) Program Office, located at Redstone Arsenal, Huntsville, AL. and the United States Army’s Persistent Threat Detection System (PTDS) Office, located at HQ INSCOM, Ft. Belvoir VA. Due to the recent growth in requirements for each of these programs, DESC has been contacting other government sources to locate any and all bulk helium trailers to aid in the supply/re-supply pipelines. Once trailers are found, they are tested, refurbished, and certified for helium service. CONTRACTING OFFICER MRS. AMY LOAR RECOGNIZED 

FOR SMALL BUSINESS AWARD: On May 16, 2005, VADM Lippert 

presented the DLA Award for Excellence in Assisting Small Disadvantaged Businesses to Mrs. Amy Loar, Contracting Officer and Branch Chief in the Facilities Procurement Division. Ms. Loar has supported the small business program extensively throughout her career. 

Her advocacy is exemplifi

with particular efforts towaDESC small business goalshelp meet them. Her positithe resulting benefits to DEDEFENSE FUEL SUPPO

Storage Services in the amawarded to Emirates NatioThe facility was inspected time the five-year performaDEFENSE FUEL SUPPO

AFGHANISTAN: COCO 

barrels of JP8 was awarded 2004. The facility was inspwhich time the five-year peINCREASED PC&S SUP

PROGRAM: Originally u

the Colombia Post Camps late 1990s, with requiremenDepartment’s Credit Card RDESC became responsible Colombia were adequately Southern Command to devProgram. Originally awardvalue and quantity of $10,6respectively, the program hincludes nine locations wit$21,803,264.80 and the estApril 2005 the Paperless Oimplemented in Colombia and receipts and increased 
PC&S SUPPORTS THE NAVY IN GUANTANAMO BAY, CUBA:

The removal from service of a storage tank at the U.S. Naval Station in Guantanamo Bay presented a time-critical challenge to the Direct Delivery's PC&S Division. A requirement for barge delivery of 1,260,000 gallons of mid-grade gasoline to be delivered as required over a one year period was received in PC&S on 6 July 2005. Through intense marketing efforts spanning a period of fourteen days, PC&S was successful in negotiating the requirement and awarding a contract to ExxonMobil on 29 July 2005 for the first delivery to be made no later than 20 August 2005, thus ensuring no interruption of fuel support at Guantanamo Bay.IINTO-PLANE POST WAR SUPPORT: Direct Delivery’s Into-Plane 

Division remained busy supporting Post War contingency and humanitarian efforts overseas. Follow-on contracts were awarded in Azerbijan, Iraq, Kyrgyz Republic, Tajikistan and Turkmenistan. Contracts were awarded to support ongoing drug interdiction operations in Colombia, and humanitarian assistance requirements in Africa. The Into-Plane Division continues to support ad hoc requirements for Operations Enduring Freedom and Iraqi Freedom throughout the regions.AFRICAN FUEL INITIATIVES: Direct Delivery’s Into-Plane 

Division awarded a contract to supply multiple Intermediate Support Bases (ISBs) in Africa to meet various jet fuel requirements. The purpose of the contract is to have fuel readily available to the U.S. military in support of peacetime needs such as military exercises, responses to natural disasters, combating terrorism and humanitarian support each requiring rapid response, immediate fueling capability and special procedures to ensure the safety and readiness of personnel, installations and equipment. The contractor is also required to support a surge in delivery volume based on operational needs. The basic contract

provides for 564,000 gallons gallons of surge support.DESC-FGI FUEL AGREE

three international fuel suppThese agreements included fChilean Navy and the Spaniagreement with the Turkish cooperation will serve to enhdefense posture and operatioDESC-FGI AGREEMENT 

amendments to previously cKingdom, Uzbekistan, Omajoint signing of these agreed the operational and administagreements. UTILITY PRIVATIZATIO

Directorate awarded five utiof $266.2M. The water and systems utility privatization Utility Services Company at Monroe, Eustis, Story, and LUtility Services Company wsystems at Andrews Air Forsystem contracts were awardLeavenworth Jefferson ElecSolider Systems Command, contracts were awarded comDESC and are major accompand Air Force. Utility PrivaUnder Secretary of Defense installations when it is deemFor these five contracts, the in an average annual cost avthe contract term.
ENERGY SAVINGS PERFORMANCE CONTRACTS: In FY 2005, 

the Energy Enterprise Directorate was chosen by OSD to lead the contracting effort for its DoD Renewable Replication Pilot ESPC Project. This represents four technologies ranging from day lighting and lighting technology; transpired solar collectors; solar swimming pool heating and grid connected photovoltaics. This pilot program represents about 26 DoD installations in the western and central part of the United States. Also the Energy Enterprise Directorate was responsible for performing contract administration on DESC-awarded Energy Savings Performance Contract Delivery Orders for Fort Hood, Texas; FortMonmouth, New Jersey; Aberdeen Proving Ground, Maryland; Fort Jackson, South Carolina and Carlisle Barracks, Pennsylvania. These DO’s were issued against a Department of Energy Indefinite DeliveryIndefinite Quantity (IDIQ) contract for energy conservation measures such as Utility Monitoring Control Systems, Energy Management Control Systems, vending machine controls, cooling Tower Variable Frequency Drive, and lighting retrofits for a guaranteed cost savings to the Government that exceed contractor payments. In FY 2004, thisprogram was halted from any new initiatives since legislative authority had expired. New legislative authority was enacted as of August 05 and DESC is ramping up to provide additional support to these energysavings projects for various Army and OSD identified initiatives. DEFENSE ENERGY SUPPORT CENTER – EUROPE: Defense 

Energy Support Center – Europe provides direct support for the United States European Command (USEUCOM) Area of Responsibility, encompassing 91 countries, spread over 20 million square miles of the earth’s land mass, as well as providing multi-product fuel support for forces in Northern Iraq. Their 86 personnel are assigned to 12 geographically separated offices and currently ship fuel to 327 separate locations. This is accomplished through the management of 5 pipeline systems, 11 DFSP’s, and 21 international agreements. Last year, DESCEurope was able to conclude fuel agreements with the French and Spanish Navies and have 11 pending international agreements to provide more efficient and cost effective support to both U.S. Forces and our coalition/NATO allies. With the transition of operations in Bosnia from NATO to European Union Forces, the DESC-Balkans Office was closed and fuel support for U.S. Forces in the area was transferred to DESCEurope. During the year DESC-Europe was heavily involved in the African Fuel Initiative by setting up and maintaining 29 fuelling

locations throughout Africa humanitarian and contingeninstrumental in planning thcontingency operating sites Transformation Plan.