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Front cover by: Jonathan Stack

Back cover by: Jonathan Stack

Commander

Air Force Brig. Gen. Mark McLeod

Deputy Commander

George Atwood

Chief of Staff

Army Col. Peter Crean

Public Affairs Offi cer

Irene Smith

Editor

Jonathan Stack

Writing Staff

Terry Shawn

Susan Lowe

Christopher Goulait

Layout/Design

Jonathan Stack

Address correspondence to:

ATTN: DLA Energy-DCA

8725 John J. Kingman Rd.

Suite 4950

Fort Belvoir, VA 22060-6222

Commercial: 703-767-4108

Address email to:

EnergySourceMagazine@dla.mil

Energy Source is an offi cial publication distributed by and for the Defense Logistics 

Agency Energy and energy-oriented clientele. Contents of this publication are not 

necessarily the offi cial views of, or endorsed by, the U.S. government, Department 

of Defense, Defense Logistics Agency or Defense Logistics Agency Energy. 

Energy Source is prepared by desktop publishing applications. 

Photos not credited are courtesy of DLA Energy sources.

from the commander

Energy Source

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All men can see these tactics whereby I conquer, but what 

none can see is the strategy out of which victory is evolved 

– Sun Tzu 

In the coming weeks, we’re putting a lot of DLA “Energy” 

into revising our global petroleum strategy for the Department of Defense. Our premiere kickoff event in the 

endeavor, which you can read more about in this edition, 

takes place this month here — the United States Pacifi c 

Command Fuel Wargame.

The DLA-hosted wargame will culminate several years 

of effort borne out of President Barack Obama’s declaration of U.S. “Rebalance” to the Pacifi c. In order to set the 

theater for successful operations, we’ll ensure there is suffi cient fuel from the global supply chain, available through 

agile military and civilian delivery means to resilient and 

dispersed locations, and all backed up with an enduring 

strategic theater reserve. Those objectives lie at the heart 

of larger strategic resource allocation decisions on behalf 

of our global combatant commanders, designed to counter developing anti-access/area denial capabilities, lower 

warfi ghter risk and clearly demonstrate America’s commitment to partner nations through liquid logistics. United 

States Central Command “setting-the-theater” discussions 

will follow shortly thereafter to ensure that we continue to 

be postured to execute defense planning guidance against 

any potential foe around the world in the coming decade.

Brig. Gen. Mark McLeod, USAF

Defense Logistics Agency Energy

Our strategy will also 

address a number of 

larger Department of 

Defense imperatives, 

including aging fuel 

infrastructure through our 

military construction and 

Sustainment, Restoration 

and Modernization 

programs, right-sizing 

that infrastructure 

in cooperation with 

commercial partners, 

and lowering overall 

environmental risk. 

Our partnerships 

with Department of 

Energy, DoD and other 

government agencies 

will lead the world in 

operationalizing biofuels and other alternative fuel sources 

for our customers. DLA Energy will also seek to delight 

those same customers by cutting materiel and operating 

costs.

On the topic of strategy, Jack Welch, the former CEO of 

General Electric, once said that “you’ve got to eat while 

you dream ...” So expect us to not only continue delivering 

world-class quality and quantity on our short-term commitments, but to develop and implement the long-range 

strategy and vision that ensures victories “none can see.” 
Energy Source l October 2014 3

DLA Energy HQ

Energy

We Are DLA

24 Environmental 

 Restoration

 4 Welcoming a New 

 Commander

 8 Time is Money

12 A Valuable Tool

16 Wargame Prep

20 Revitalizing Infrastructure

28 Helium Drawdown

31 One Face

Welcoming a New Commander

Environmental Restoration

Helium Drawdown

4

24

28

Operations in Afghanistan are 

drawing down to enduring 

locations, the Army’s reconnaissance and surveillance aerostat 

program is reducing its numbers, 

and DLA Energy is involved in a 

drawdown of the helium supply 

chain. 

Defense Logistics Agency Energy 

funds the environmental restoration projects turning fuel and 

chemically contaminated land 

into parks and open recreation 

space.

DLA Energy Commander Air 

Force Brig. Gen. Mark McLeod 

sits down with the Energy Source 

editor and discusses his vision for 

the organization. 

Wargame Prep 16

A wargame putting the Pacifi c’s 

fuel network to the test will focus 

on determining improvements 

Sept. 29 to Oct. 3 at the Center 

for Naval Analysis Complex in 

Arlington, Virginia. 

CONTENTS ONTENTS
4 www.energy.dla.mil

Air Force Brig. Gen. Mark Mcleod

By Jonathan Stack

ES: How has your time at Defense Logistics Agency Energy been?

McLeod: This has been an absolutely splendid landing for me 

here at DLA Energy. It’s an organization with a lot of the same 

goals and objectives as I had at U.S. Pacifi c Command where I was 

the J-4, and I’m kind of excited about laying down strategic framework for the next fi ve years and then sharing that with everybody. 

ES: What do you do on the typical day as the commander?

McLeod: There are a lot of meetings here, and I’ll tell you straight 

up there are too many. I’m trying to get a lay of the land on the 

fl ow of the organization right now and again to come back to the 

idea of strategic focus on the organization – I spend a lot of time 

and clear my schedule to try and think about the things we should 

be doing at a senior engagement level, because that’s my role as 

the commander. It’s not to get involved in all the tactical details of 

what everybody is doing – there are way too many, and for me to 

inject myself through meetings and things like that, it just slows 

the organization down. I come into organizations and try to change 

the focus away from the commander to teveryone else. 

I spend a lot of time thinking about the wargame we are going to 

have in October. It’s going to have very strategic implications for 

not only PACOM, but the other combatant commands as we rebalance global petroleum and other products around the world. 

I’m spending a lot of time right now going through everyone’s 

comments in the climate survey, because there are some great 

ideas and things I feel have great potential benefi t to the organization. There’s a recurring theme in particularly in the climate 

survey this year and it’s communication – there’s a shortfall in the 

organization. 

That’s kind of what my day is right now. 

ES: What would you like the customer and supplier to 

think when they hear the name DLA Energy?

McLeod: I would like them to think that we are the prime provider of energy for the Department of Defense. Whenever anyone 

in any of the services or the government hear DLA Energy, they 

should immediately think that’s the place we go to get the best 

value for our products and that’s the place we go to get the best 

Welcoming a New elcoming a New 

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Energy Source l October 2014 5

Graphic by Christopher Goulait

wCommander Commander

return on our investments for energy savings and reduction programs. I think embedded within this world-class organization is all 

that capability, but a lot of people haven’t taken advantage of it. A 

couple customers like the Army have stepped up in a big way and 

the Air Force has as well, but some of the outer agencies are just now 

beginning to realize the power that DLA Energy has. So I think that’s 

exciting as we go forward. 

Also, I think a big part of the strategy for the next couple years is 

thinking about how we get more and more of that in our portfolio. 

ES: How do you feel your past experiences have prepared 

you for the leadership role here as the primary-level fi eld 

activity commander?

McLeod: I burned a lot of gas in my time, so I think I 

understand the vital role and relationship between 

the users and what we provide as not just an 

acquisition and contract management agency, 

but as that direct user interface between 
6 www.energy.dla.mil

product and product user. That piece is very important. 

From a practical standpoint, I think I’ve been around 

enough joint staffs and enough combined organizations 

and civilian organizations to understand the real nuances of what military leadership and civilian leadership have to do to work together and be effective. It’s 

not unique, but it requires some special attention that I 

think I have a feel for from my time 15-to-20 years ago at 

Kelly Air Force Base, Texas, [now known as Kelly Field 

Annex] up until now. 

It’s a great place to be able to apply leadership to, because it’s so diverse. So many people have their hands 

in the pie or interest in the process that it becomes very 

complex, upper level management kind of experiences, 

which I enjoy taking on. 

ES: What is something you do as the commander 

that employees might not be aware of?

McLeod: I walk around a lot, and hopefully I will dispel 

things people are not aware of by getting out. Not just 

getting out for business reasons too – getting out to just 

listen, to talk and to introduce. I like to say that I will get 

out to the point where you don’t notice me, and at that 

point I feel I have accomplished what I want, because it’s 

not just the commander or the general out there it’s just 

oh there he is again, and I’m comfortable with that. 

ES: What do you look forward to when you come 

to work?

McLeod: Every day is a challenge in thinking about 

how you make a difference; that can be the difference in 

one person’s life or the difference in an organization. 

For example, out in Lorton, Virginia, we are trying to 

establish a small fi tness area where people can exercise 

in a facility where people don’t have that right now. Listening to the feedback from employees, then going back 

and working on those things – that’s what this job is all 

about. It can range from a NATO warning all the way 

down to a fi tness center or a different battle rhythm for 

communication. There’s always something here to make 

a difference, and that’s what excites me. Leadership is 

very exciting. This is the thing I really enjoy.

DLA Energy Commander Air Force Brig. Gen. Mark McLeod greets a guest after his assumption of command ceremony at Fort 

Belvoir, Virginia, July 23. Photos by Christopher Goulait
Energy Source l October 2014 7

ES: What direction do you envision DLA 

Energy going in the future?

McLeod: Our portfolio will grow. I think our focus will change a little bit away from not the necessity of procurement, process and contract management, but to focus more towards the combatant 

commands’ unique needs. 

To come back to the PACOM exercise, it’s really 

going to focus this organization in a way that 

we are going to emerge from as what is truly the 

executive agent for fuel. That phrase has been 

kicked around for a few years now, but what does 

it really mean? The executive agent doesn’t always 

come away with authorities. It comes with the 

responsibility, but not necessarily the authorities, 

and as I said earlier, so many people are involved 

in decision and have interest in the pot. It’s hard 

for somebody to say I’m in charge of this and 

we’re going to do this, but this concept of the 

executive agent gives us the umbrella authority to 

bring people in and start to give them direction 

from a global standpoint. I think when we do that 

and we emphasize that this particular combatant 

command has our focus now; we’ll get the Joint 

Staff and the Offi ce of the Secretary of Defense to 

focus on that and provide supporting fi res. That 

will begin to synchronize the world. I think that is 

the direction in the next 12 months – we become 

more of the lead agency for synchronization – kind 

of fulfi ll that lead executive agent role that DLA 

Director Navy Vice Adm. Mark Harnitchek has 

named us as. 

McLeod (right) stands at attention as DLA Energy Chief of Staff Army Col. Peter Crean hands DLA Director Navy Vice 

Adm. Mark Harnitchek the DLA colors during McLeod’s assumption of command ceremony.

McLeod pitches a kickball during the annual Kickball Klassic 

tournament during a DLA Energy team-building picnic at Fort Hunt 

Park, Virginia, Sept. 24.
Time 

By Susan Lowe

Defense Logistics Agency Energy 

acquisition professionals have been 

working to reduce the time it takes 

to award contracts since an enterprise-wide 

initiative was implemented in October 2013.

The Time to Award initiative, or TTA, was 

developed by DLA Acquisition to standardize and streamline the contracting process, 

and it applies to all DLA procurements.

“We have empowered our contracting offi cers to use streamlined procedures in 

order to decrease the time it takes to award 

contracts,” said Kathryn Fantasia, former 

DLA Energy executive advisor. “Our acquisition professionals have ‘bought into’ the new 

process, and because of that we are more effi cient in our support to our customer – the 

warfi ghter.” 

Prior to the TTA initiative, DLA Energy 

processes and procedures contributed to 

lengthy acquisition lead times, said George 

Atwood, DLA Energy deputy commander. 

Sometimes those lead times were 300 days 

or longer. 

By implementing the TTA processes and 

establishing our procurement milestones 

in accordance with the TTA goals, we have 

awarded some of our larger programs well 

8 www.energy.dla.mil
eis Money is Money under the established goals, he said. 

The awardee is given additional time to prepare for contract performance when the “white space,” or extra steps 

in the process are removed, Atwood said. That’s important 

for DLA Energy’s customer and for the taxpayer, too.

“For our customer and our industry partners, TTA injects 

predictability into the process by making sure our awards 

are completed based on our program milestones,” he said. 

“For the taxpayer, our acquisition processes are more effi cient and we can better utilize our resources to complete 

other actions.” 

DLA Energy is meeting its TTA goals on a regular basis, 

Atwood said.

“We achieved our TTA goals back in April and continue 

to execute our contracts within our assigned goals,” he 

said. “Our goal is to award long term contracts under $10 

million in 140 days, and for long term contracts over $10 

million the goal is 190 days.” 

“The DLA Energy Bulk Petroleum Products team is a 

perfect example of how ‘buying into’ a new process like 

TTA helps us reach our goals and has led to great success,” 

Fantasia said.

The DLA Energy Bulk Petroleum Products business unit 

awarded the Rocky Mountain/West Coast/Offshore procurement, which is often referred to as Rocky Mountain 

West, Aug. 8. It is one of the business unit’s four acquisition programs and one of DLA Energy’s largest procurement programs, with an estimated dollar value of $2 

billion dollars. 

 “These were the fi rst Rocky Mountain West annual 

procurements subject to the new Time to Award metric,” 

said Kevin Ahern, DLA Energy Bulk Petroleum Products 

business unit director. “We made fi nal awards on day 171, 

which beat the TTA goal by 19 days.” 

“During our Captains of Industry meetings for Bulk 

Petroleum Products, our vendors indicated that though 

shortening the duration of the procurement process was 

something that they saw as important, they placed more 

emphasis on awarding contracts at least 60 days in advance of the performance period,” Ahern said. 

Holding barrels of future production to commit to DLA 

Energy procurements adds a level of risk to doing business 

with the government, he said. Industry suppliers wanted 

some assurance that award decisions would be made in 

time to release those barrels for other commercial business 

if their offer was not successful. 

“By demonstrating a commitment to making awards at a 

minimum of 60 days in advance of performance, we minimize those risks to the offerors,” Ahern said. “Anytime we 

can reduce risk in the procurement process, we are likely 

to see competition enhanced and better pricing.” 

“A change in plans early in the procurement process had 

the potential to cause major slippage in our milestones; 

however, the team worked diligently to make up that 

time and beat the Time to Award metric and awarded the 

contracts 54 days in advance of performance,” he said. 

“This was viewed as a major leap forward by our industry 

partners.”

Ahern said he attributes the team’s success to teamwork, 

communication, determination and an overwhelming 

dedication to getting the job done.

“Everyone pulled together, did their part and supported 

each other,” he said. “We needed an opportunity to get to 

Energy Source l October 2014 9
10 www.energy.dla.mil

the plate and hit a home run ... and this team hit a 

grand slam. I couldn't have asked for anything more.” 

Ahern said his team also substantially increased small 

business participation with this particular procurement.

“Typically the Rocky Mountain West procurement is 

solicited annually as a single large program buy with 

all requirements included in a single solicitation,” 

he said. “This year, in support of agency-wide small 

business goals, we broke out a portion of the Rocky 

Mountain West program to set-aside solely for the 

participation of small business suppliers.”

The Small Business Administration granted DLA 

Energy a solicitation-specifi c waiver to the non-manufacturer rule, thereby allowing the small marketers 

offering under the set-aside solicitation to provide 

product from a large supplier. 

“Our small business participation and awards saw signifi cant improvements,” Ahern said. “During the last 

three fi scal years, our percentage of dollars awarded 

to small businesses averaged 7.3 percent. In fi scal 

year 2014, the percentage of dollars awarded under 

the primary solicitation was 17.2 percent.”

When the set-aside solicitation is considered, the total 

percent of dollars awarded to small businesses is projected to rise to almost 23 percent, representing a 213 

percent increase in small business awards.

“To even think about doubling the small business 

numbers this year seemed impossible,” he said. “Instead, we tripled the numbers.” 

A California Army National Guard soldier fuels up a UH-72 Lakota helicopter at a landing zone at the Lodge Fire near 

Laytonville, California. In part of the Time to Award initiave, a DLA Energy Bulk Petroleum Products team awarded the 

Rocky Mountain/West Coast/Offshore procurement, which has an estimated dollar value of $2 billion dollars and enables 

services on the West Coast to procure fuel. Photo by Army Sgt. Ian Kummer
Energy Source l October 2014 11

“To top it off, we awarded the small business set-aside contracts in just 141 days,” 

Ahern said. “I would have thought we 

might struggle a bit, but we didn’t.” 

While Bulk Petroleum’s small business 

participation is limited by the nature 

of their mission, they are supportive of 

the small business program, said Greg 

Thevenin, DLA Energy Small Business 

offi ce associate director. Regularly, the 

acquisition professionals in Bulk Petroleum set aside 40 percent of the requirements for small business 

“The lack of small refi neries and their 

limited capacity makes it extremely challenging to award bulk contract to small 

fi rms,” Thevenin said. “The waiver of the 

non-manufacturer rule they received was 

an unprecedented action in DLA Energy 

procurement and helped tremendously.”

Thevenin said he appreciates everything 

the team has done to support the small 

business program.

Ahern said that the successful results 

weren’t Bulk Petroleum’s alone. 

“Many parts of this organization contributed to the effort and share in this 

success,” he said. “There were people in 

our Defense Fuel Support Point Management offi ce and Procurement Process 

Support directorate who were extremely 

helpful. People in our Finance, Legal, 

Small Business and Quality offi ces as 

well as folks in our Americas at San 

Pedro region offi ce went above and 

beyond.” 

In recognition of their achievements, the 

Bulk Petroleum Products team received 

the Director's Strategic Goals Award 

under the Time to Award Category (medium) in a ceremony at DLA Headquarters Sept. 3.

“This was a major accomplishment for 

my team and the award proves to me 

that our efforts were recognized and appreciated,” Ahern said. “I am very proud 

of the team.”

A soldier tracks fuel purchases for unit convoy operations in support of Operation 

Golden Coyote in South Dakota. DLA Energy personnel are reducing the time it 

takes to award fuel contracts since an enterprise-wide initiative was implemented 

in October 2013. Photo by Army Master Sgt. Ronald Rafl ik
12 www.energy.dla.mil

A Val

Republic of Korea Marine Corps assault amphibious vehicles get into a formation in Training 

Center Ban Chan Krem, Kingdom of Thailand during Cobra Gold 2014, a military exercise 

demonstrating the Kingdom of Thailand, U.S. and other participating nations’ commitment to 

regional partnership, prosperity and security in the Asia-Pacifi c region. Although basic ordering 

agreements were not used in this year’s Cobra Gold exercise, they were still available in case DLA 

Energy contracting offi cers needed them. Photo by Marine Sgt. Artur Shvartsberg
Energy Source l October 2014 13

order is issued against that BOA and the delivery order is 

considered the contract. 

The Bulk Petroleum Products business unit issued its 

fi rst BOA solicitation in September 2013, and the fi rst 

award was issued February 11, 2014.

“For Bulk Petroleum, BOAs are more in line with commercial practices, which is something highly valued by 

our industry partners,” Ahern said. “BOAs allow the parties to negotiate the non-price terms and conditions contained in the BOA solicitation. Those terms and conditions are incorporated into any supply contract awarded 

under the BOA, which results in a signifi cant reduction 

in the time it takes to award a specifi c requirement.” 

The reduced lead time allows for greater fl exibility and 

more agility in meeting short-fused or contingency 

requirements, which helps to mitigate the risk of mission 

failure, Ahern added. 

In May, regional demand at several activities in and 

around Oklahoma exceeded the fuel quantity available 

on the bulk petroleum contract. In the past, a lengthy 

supplemental solicitation would have been necessary. 

Another option would be to non-competitively add more 

quantity to existing contracts. Instead, DLA Energy 

contracting offi cers used existing BOAs to compete the 

requirement for the additional demand, and issued 

delivery orders for suffi cient product to meet the requirement. 

The great thing about this, Ahern said, was it took approximately two weeks to solicit, evaluate and award the 

delivery orders under the BOA, where a supplemental 

solicitation may have taken up to 10 weeks.

“In this case, BOAs proved to be an extremely valuable 

procurement tool for Bulk Petroleum,” Ahern said.

Ahern added that while BOAs are a great tool for shortfused or contingency requirements, they are not yet 

robust enough to use as a tool for Bulk Petroleum Products’ four major annual program awards.

Government contracting is not a one-size-fi ts-all 

type of business, so Defense Logistics Agency 

Energy acquisition professionals have at their disposal a variety of contracting tools to support warfi ghters’ 

and other customers’ energy requirements. 

One of the tools available to contracting offi cers and 

specialists is the basic ordering agreement, also known as 

a BOA.

“BOAs are not contracts,” said Kevin Ahern, DLA Energy 

Bulk Petroleum Products director. “They are binding 

agreements that contain the terms and conditions under 

which future requirements will be solicited, evaluated, 

awarded and performed.” 

The BOA solicitation remains open continuously for 

fi ve years, allowing potential vendors to establish an 

agreement at any time to compete on future 

requirements. 

Once a requirement is received, those 

companies holding BOAs can 

submit a price in order to be 

considered for award. If 

DLA Energy accepts 

the price, then 

a a delivery 

aluable Tool uable Tool

By Susan Lowe

a
14 www.energy.dla.mil

“[In my offi ce,] BOAs are currently only used for commercially fungible jet fuel; military specifi cation fuels 

require a far greater degree of pre- and post-award action to ensure compliance with quality requirements,” 

he said.

DLA Energy’s Direct Delivery Fuels business unit also 

uses BOAs.

“We use BOAs for military exercises and for other 

situations where the requirements and customers 

are subject to rapid and dynamic changes,” said Jim 

Shillingford, DLA Energy Direct Delivery Fuels deputy 

director.

Since BOAs are not contracts, the government and the 

supplier are not under any obligation until a delivery 

order is placed. That kind of fl exibility makes BOAs an 

ideal tool when the customer is not absolutely certain 

of exactly when or where they will have a requirement, 

Shillingford said. 

With world events constantly evolving, having this 

contracting mechanism available in areas of the world 

where there is a history of short-fused requirements 

provides the warfi ghter with a proven source of support, he said. 

“We awarded our fi rst BOA in support of a military 

exercise called Cobra Gold,” he said. 

Cobra Gold, which took place in Thailand in 2011, is 

a recurring exercise. The customers, locations and 

requirements are different from year to year, and the 

customer routinely submits its requirements late, Shillingford said. 

Because the BOAs were in place all the terms and conditions had been negotiated in advance, and in spite of 

the late requirements, Direct Delivery Fuels contracting offi cers were able to award contracts within hours 

of receiving offeror prices, he said. The result was a 

satisfi ed customer.

“Although BOAs are not being used in this year’s Cobra 

Gold exercise, they are still available in case our contracting offi cers need them,” Shillingford said. “That 

kind of fl exibility is what makes these agreements so 

valuable.”

BOAs are an excellent tool and should be used more 

often by the organization, Shillingford said. 

With Department of Defense missions expanding 

throughout Africa and the Pacifi c, BOAs provide DLA 

Natural gas pipelines, such as the one pictured above, are used to 

transport natural gas, purchased through BOAs, to customers on 

Navy installations. DLA Energy Installation Energy has been using 

BOAs for more than a decade. Courtesy photo
Energy Source l October 2014 15

Energy a pool of potential suppliers who are interested 

in supporting the DoD, he said. That pre-vetted pool is 

an important part of mission success.

DLA Energy Installation Energy has been using BOAs 

for more than a decade.

“[We] use BOAs to award the natural gas monthly buy 

program in the Mid-Atlantic region,” said Mark Warno, 

DLA Energy Installation Energy Natural Gas division 

chief.

The BOAs are awarded to natural gas suppliers that apply for a BOA via a solicitation. Suppliers are required 

to meet the technical requirements necessary to supply 

natural gas and conduct business with DLA Energy per 

standard contract terms and conditions. 

“Each month, the natural gas requirements for the Navy 

at Norfolk, Camp Peary and Joint Base Langley-Eustis 

are put into a reverse auction program and we email 

invitations to suppliers that have been awarded BOAs,” 

Warno explained. “Once the reverse auction is completed, our team awards the requirements to the supplier 

that provides the lowest acceptable bid for the upcoming month.” 

Installation Energy currently has six BOA holders that 

are qualifi ed to participate in the reverse auction for the 

monthly natural gas buy. 

The BOAs are benefi cial because they provide the supply 

fl exibility required by the Navy's requirements, Warno 

said. 

Navy customers in the Mid-Atlantic region can experience drastic changes in their requirements from month 

to month, he said. BOAs allow the customer to change 

their requirements as needed with very few restrictions.

The BOAs also provide the installations consistent savings, Warno said. 

These agreements allow competitive pricing on a 

month-to-month basis, so DLA Energy is able to award 

the requirements and save the installations money 

compared to the price they would pay through a local 

distribution company, he added.

Without the BOAs, Installation Energy would not be 

able to award the natural gas requirements of the Norfolk area with the fl exibility and at the prices recognized 

via the program, Warno said. 

“Without [this] alternative, our customers would either 

have to burn oil or use local distribution company gas, 

both at a much higher rate than what DLA Energy is 

able to award each month,” he said. 

A Marine attaches a fuel nozzle to a refueling truck during Cobra Gold 2011 in Thailand. DLA Energy Direct Delivery 

Fuels personnel awarded their fi rst BOA in support of a Cobra Gold 2011. Photo by Marine Cpl. J Nava
16 www.energy.dla.mil

Editor’s note: The exercise is completed, but 

the following is a snapshot of the planning efforts and wargame objectives as told a week 

before the Defense Logistics Agency Wargame 

Pacifi c 2014.

A wargame putting the Pacifi c’s fuel network to 

the test will focus on determining improvements when simulated stress is put on the region Sept. 29 to Oct. 3 at the Center for Naval Analysis 

Complex in Arlington, Virginia. 

“What makes this wargame unique is that it is solely 

focused on DLA Energy’s bulk fuel strategic supply 

chain,” said Stan Olsen with DLA Energy Plans and 

Operations. “This is the fi rst of its kind.”

The strategic Class III bulk fuel supply chain network 

will be tested from source of supply to distribution 

to storage facility, all under the stress of the most 

demanding events in the Pacifi c Command area of 

responsibility, Olsen said.

“We’ll stress the heck out of the global supply chain,” 

said DLA Energy Commander Air Force Brig. Gen. 

Mark McLeod during a DLA Energy town hall meeting.

Use of a “most demanding” scenario will show whether 

the Department of Defense’s current fuel strategy is 

capable of fully supporting PACOM warfi ghter requirements, he said.

“We’re going to determine if we have enough fuel, if it’s 

forward-positioned in the right places in the theater, 

and if our strategic reserve can meet the requirement,” 

McLeod said. “If it falls short in any of those areas, 

we’re going to take actions to address those problems.”

Several potential areas of improvement are already on 

the table and awaiting the outcome of the wargame.

“DLA Energy expects to refi ne our strategic plan as it 

relates to the global fuel network, determine the right 

size for our strategic reserve at Red Hill, [Hawaii], and 

refi ne the DoD’s global petroleum distribution plan to 

rebalance additional strategic reserves to the Pacifi c,” 

Olsen said.

Other questions to be answered as a result of the 

wargame are where DLA can invest in source of supply, distribution and storage to achieve greater resiliency and agility to meet operational requirements, he 

added.

These results will culminate efforts that began nearly a 

year before the wargame.

DLA Energy’s planning staff started developing the 

construct for the wargame in November 2013 with the 

DLA Joint Logistics Operation Center Plans and Exercise branch, Olsen said. That was when work began 

to translate the DLA director’s intent into the actual 

framework of the game model.

Modeling is based on a prior exercise run in December 

2013, the Navy Logistics-Centric Game, Olsen explained. There are also elements in the Pacifi c region 

that use the most dangerous and most likely courses of 

action that could be expected, with results evaluated 

based on the Joint Logistics Principles.

“The biggest thing that we have been doing from the 

modeling and simulation side is making sure that the 

model is fl exible enough to accommodate DLA Energy 

and all of their available options of sourcing fuel,” 

said Tim Walker with the DLA Offi ce of Operations 

Research and Resource Analysis. “Making the model 

more fl exible and accounting for the different aspects 

of time brings more realism and validity to the model.”

The model also accounts for different time aspects, 

such as the procurement, transportation, offl oad and 

discharge times.

A fl exible model will also allow it to be used across different combatant commands with different scenarios 

and levels of focus, from strategic to operational to 

tactical, with only minor adjustments, Walker said.

Olsen identifi ed other tools and resources the DLA 

Energy planners used to make the wargame model 

Wargame P

By Christopher Goulait
Energy Source l October 2014 17

 Prep
18 www.energy.dla.mil

work for the organization. Some of the examples of the 

key tools needed for building the model are the Integrated Consumable Item Support program, the Inventory 

Management Plan, the Integrated Distribution Plan and 

institutional knowledge.

“DORRA met and shared the capabilities and use of 

these tools,” Olsen said. “DORRA and CNA provide a 

unique skill set to conduct the functional modeling. 

Their expertise to absorb complex problems set and 

then translate that information into an analytical tool in 

which to aid in answering game objectives.”

Using the tools crafted over 11 months, 17 representatives from across the agency will take part in the 

wargame.

“DLA Energy will bring in a complement of folks from 

Supplier Operations and Customer Operations, as well 

as a couple of participants from the DLA Energy Pacifi c 

region,” Olsen said. “DLA Energy players will perform 

their usual roles to the greatest extent possible.”

Players from Customer Operations will work with the 

Joint Petroleum Offi ce, PACOM and the military services to capture emerging requirements, which will then be 

passed along to Supplier Operations, Olsen explained. 

Wargame participants will monitor and conduct predictive analysis to forecast demand based on the operators’ 

movements to ensure the early logistics mobilization 

is similar to how DLA Energy responds to real world 

events today.

“The desired end-state will identify corrective actions 

and then report them to the greater joint logistics community,” Olsen said. “Our focus remains the same: 

warfi ghter support for mission.”

A sailor stands watch on the bridge wing of amphibious dock landing ship in the Pacifi c during a replenishment 

at sea with a Military Sealift Command fl eet replenishment oiler. DLA Energy is conducting a wargame putting 

the Pacifi c’s fuel network to the test and will focus on determining improvements when simulated stress is put on 

the region Sept. 29 to Oct. 3. Photo by Navy Petty Offi cer 2nd Class Jason Behnke
Energy Source l October 2014 19
20 www.energy.dla.mil

By Irene Smith

Revitalizing In evitalizing Inf

Revitalizing its energy infrastructure and sustaining 

worldwide fueling capability to the Department of Defense and other agencies is a vital mission for Defense 

Logistics Agency Installation Support for Energy.

DLA Energy Commander Air Force Brig. Gen. Mark 

McLeod addressed the need for reinvesting in the energy 

footprint in his column on the DLA Energy website.

“Our emphasis begins with United States Pacifi c Command, where in accordance with President [Barrack] 

Obama’s strategy to ‘rebalance’ the Pacifi c, we will rebalance additional fuel stocks, infrastructure and investment in order to signifi cantly reduce warfi ghter risk,” 

McLeod wrote. “This same line of effort will also help 

propel us in addressing a number of other DoD imperatives, including repairing aging petroleum infrastructure 

through our Sustainment, Restoration and Modernization program, reducing environmental risk by rightsizing underground storage and expanding commercial 

storage, and reducing overall supply chain costs through 

commercialization and consolidation.” 

DLA Energy and DLA Installation Support for Energy are jointly chartered and responsible for funding 

and overseeing the maintenance, repair, sustainment, 

restoration, modernization and recapitalization of the 

military’s fuel infrastructure that contains DLA fuel. 

To accomplish this, the matrixed team provides sustainment, restoration and modernization funding and 

military construction funding for fuels infrastructure 

to numerous execution agents who manage day-to-day 

work in the fi eld.

“We provide funds for organizations to maintain fuel 

infrastructure throughout the Department of Defense,” 

said DLA Installation Support for Energy Director Norm 

Stiegler. “We provide up to $470 million a year to the 

services for maintenance, repair and SRM programs.

Every year, DLA Energy selects approximately 10 to 

15 additional maintenance plans for funding. Current 

projects include replacing a fuel pier at Craney Island, 

Virginia, and replacing fuel distribution facilities at 

Lemoore, California. 

“Many of our defense fuel support point sites, fuel storage tanks and pipelines are decades old,” McLeod said. 

“Due to aging infrastructure cost increases and decreased effi ciency, we must optimize, modernize and repair to improve effi ciency and minimize interruptions.”

Environmental stewardship and commercial maintenance are major issues to be considered in revitalizing 

energy infrastructure. 

“We want to reduce underground storage and create 

more resilient fuel tanks,” McLeod said. “Replacing 

single wall tanks by upgrading and right-sizing underground fuel storage offers better protection with lower 

risk. To save on cost, in some cases, we are turning to 

commercial maintenance to ensure cost effective methodologies are used to maintain each site.”

DLA Installation Support for Energy Engineering Division Chief Paul Kerl is responsible for overseeing DLA 

Energy projects that recapitalize and reinvest in energy 

infrastructure. 

“Collectively, the military services have over 8,500 assets worth over $17 billion, and the preponderance of 

those assets were constructed between 1950 and 1969,” 

Kerl said. “Many facilities are older than that.”

The key goal is to optimize and, in some cases, reduce 

the energy infrastructure, he added. 

“On average we receive 30 to 50 MILCON projects a year 

while our ability to fund is approximately 10-15 projects, 

based on average construction cost,” he said. “That is 

why the prioritization is so important. We want to get 

the best utilization of the funds possible.”

Selecting the right military construction projects for the 

biggest return on investment is DLA Installation Support for Energy’s responsibility.

“Our goal is to assign the highest priority to projects 

which have the highest impact on wartime and peacetime operations,” Stiegler said. “Mission, environment, 

infrastructure and command priority are all elements 

that determine the criteria for the MILCON project prioritization program.”

The MILCON process begins with the Pre-Installation 

Planning and Review Board, typically held at the McNamara Headquarters Complex at Fort Belvoir, Virginia, in 

June when the current issues and rules are discussed for 
Energy Source l October 2014 21

Scott Hedrick, deputy director of fuel and facility management at U.S. Naval Supply Systems Command Fleet Logistics Center 

Pearl Harbor, gives DLA Director Navy Vice Adm. Mark Harnitchek a tour of the Red Hill underground fuel storage facility on 

Joint Base Pearl Harbor-Hickam, Hawaii. Photo by Monique Randolph

nfrastructure rastructure

the upcoming Installation Planning and Review Board 

cycle.

DLA Installation Support for Energy MILCON engineers 

Dave Sue-Ling and Kristen Olsen are part of the planning process that determines which projects are funded. 

They are responsible for reviewing the services’ submittals and deciding if the projects are executable. 

“In September, a military construction data call is sent 

from DLA to the service control points and combatant 

commands to request submittal of eligible MILCON 

requirements and projects,” Sue-Ling said.

Projects reviewed by the multi-disciplinary DLA panel 

go before the jointly staffed IPRB for prioritization 

based on a priorities listing. 

“Many military construction projects are multi-service 

and require extensive coordination and planning,” SueLing said. “We gather the overall service requirements 

in data calls. The IPRB board decides which projects are 

priorities along with a timeframe for completion.” 

“DLA Installation Support for Energy has expanded 

DLA’s role to task executing agents with the requirement document development in cooperation with the 

services,” Sue-Ling said. “The scope of work has grown 

to include a verifi cation process.” 

“We review the projects and requirement documents 

prioritized by the IPRB. We work with the services to 

refi ne the scope of the project and develop an execution 

plan for construction,” Olsen said. “Sustainable principles are integrated into the design, development and 

construction of MILCON projects.” 

When it comes to meeting environmental standards, the 

goal is to assign the highest priority to projects with the 

greatest contribution to regulatory compliance, SueLing said. 

“The average service life of a concrete and steel structure in a marine environment is 50 years,” Stiegler 

said. “Often, extensive rehabilitation and maintenance 

repairs can extend the service life of a fuel tank, pier or 

pipeline.” 
22 www.energy.dla.mil

DLA Energy’s Defense Working Capital Funding authority for military construction projects is capped at 

$750,000 as defi ned by 10 U.S. Code Chapter 169 – Military Construction and Military Family Housing. Above 

this funding level, individual line item project authorization and appropriations are required by Congress.

After the requirement documents are completed and 

accepted, a design authorization is provided to a MILCON agent designated by the Offi ce of the Secretary of 

Defense, usually the Army Corps of Engineers or Naval 

Facilities Engineering Command, to develop the 35 percent design and cost estimate. 

DLA uses the 35 percent design deliverable and the 

requirement documents to justify budget requests and 

the need to OSD and Congress for each MILCON project. DLA has to submit budget requests and justify each 

project to OSD and Congress for individual project authorization and appropriation with each annual budget 

submission. 

Our job is to package these requirements for success 

with OSD and the House and Senate Committees, Kerl 

said. Following completion of the requirements package, the packages are turned over to DLA Installation 

Support MILCON Chief John Davis who ultimately 

briefs congressional staffers on the individual proposed 

MILCON projects.

“I think the key points are the warfi ghter and mission 

support the MILCON projects provide,” Davis said. “The 

IPRB process, with stakeholder involvement, the criteria 

used and the priorities/capabilities needed by our customers are important factors. It's a sound collaborative 

process with the customer/warfi ghter brought in early.” 

Upon approval from OSD or Congress, DLA authorizes 

MILCON agents to complete the design from the 35 

percent level to the 100 percent design level. 

“Usually, this is done through "30-60-90 percent" interim designs to ensure DLA has proper design feedback 

at each stage,” Sue-Ling said. “For simpler projects, the 

design may proceed directly from 35 percent to 100 percent, but this is very project dependent. After completion of the 100 percent design the construction award 

phase will begin.”

Revitalizing infrastructure takes planning and prioritization, Kerl said. It can take a year or more to gather 

all the paperwork and documentation together to verify 

that the project is economically feasible and that we 

understand the requirements. 

“If you identify a requirement today, we have to plan out 

fi ve years in advance,” Kerl said. “Construction is commonly a two-year process. The current data call is for 

fi scal year 2019 projects. The downside of the program 

is the length of time required to have Congress appropriate the funds. That is why planning is so important to 

the process.”

There are multiple, ongoing MILCON projects in the Pacifi c region that will provide additional fuel stocks and 

infrastructure to signifi cantly reduce warfi ghter risk.

In June, construction began on a new 15.7 mile pipeline 

in support of Andersen Air Force Base, Guam. After 

almost 10 years in planning, coordination and approval 

processes with the Navy, the multi-service, $62 million 

Guam Pipeline military construction project will add capability to the island’s military readiness. The project’s 

estimated completion date is June 2016.

“This is the case for a lot of MILCONs,” Olsen said. “The 

services have gone to joint base concepts, so many of our 

construction projects benefi t more than one user.” 

One of the military construction projects planned for 

2015 is to upgrade the life safety systems within the Red 

Hill underground storage facility at Joint Base Pearl 

Harbor-Hickam, Hawaii. Constructed in 1942, the facility was an engineering marvel and designated a national 

historic civil engineering landmark in 1995. 

“This is an important project,” Kerl said. “The existing 

underground fueling facility at Red Hill [will receive] 

fi re protection infrastructure and communication system [upgrades]. The upgrades are needed to [improve] 

the safe operation of a defense fuel supply point. This 

will make the operations at Red Hill much safer and 

bring the facility up to current fi re safety standards.”

The Red Hill Fuel Complex provides fuel and lubricating oil to afl oat and ashore customers in the Mid-Pacifi c 

region. Buried deep inside an extinct volcano are 20 

massive reinforced vertical storage tanks carved out of 

volcanic rock to store 252 million gallons of diesel and 

jet fuel. The underground tanks and pump house are 

interconnected with a three mile tunnel system buried 

more than 300 feet underground that serves as the fuel 

pipe corridor. 

“While Red Hill and Guam are high visibility projects, 

many of our other fuel projects are not quite as visible, 

but they have just as much impact to the military services,” Olsen said. “The renovation and improvements to 

pumps, pipelines and tanks are important to the services 

since it enables them to meet their mission.”
Energy Source l October 2014 23

This 1942 Navy photo shows miners building just one of the 20 fuel tanks, which are connected by 

a miles-long tunnel. They are still in use today. U.S. Army Corps of Engineers real estate and fuels 

assessors were called upon to visit the enormous Red Hill Underground Fuel Storage Facility at 

Joint Base Pearl Harbor, Hawaii, in February. Courtesy photo
Environment nvironmenta

24 www.energy.dla.mil
tal Restoration l Restoration

By Irene Smith

Defense Logistics Agency Energy, through the Defense 

Working Capital Fund, funds the environmental restoration 

projects turning fuel and chemically contaminated land into parks and 

open recreation space.

Cleaning up former defense fuel support points is one of the responsibilities performed by DLA 

Installation Support for Energy.

“DLA Energy has been cleaning up and remediating sites for years,” said DLA Installation Support for 

Energy Environmental Manager Laura Fleming. “It is one of our key mission areas.”

DLA Energy is responsible for the cleanup of DLA Energy fuel spills in accordance with Department of 

Defense’s manual for Management of Bulk Petroleum Products, Natural Gas and Coal. 

“While we can’t own property, we hire the consultants to perform cleanup of former fuel sites and work 

with regulatory environmental authorities to ensure our efforts are in accordance with the Environmental Protection Agency and state environmental agencies,” Fleming said. “The challenge is that the 

cleanup of ground water and soil is a diffi cult process and can take several decades.”

One of the most successful projects to date has been DLA Installation Support for Energy restoration 

efforts to clean up a former Air Force tank farm in Norwalk, California. 

Since the 1950s, the Norwalk defense fuel support point was used by the Air Force to store jet fuel supplies, and fuel leaks and chemical contamination occurred over the years. 

Norwalk is one of 93 long-term remediation sites DLA Installation Support for Energy manages. 

“The overall average cleanup budget is between $35 million and $45 million annually,” Fleming said. “Fifteen of the current remediation sites are located at eight of the original 19 defense fuel support points that 

were permitted to DLA Energy in the 1980s or earlier. The remaining sites are located at DFSPs on military 

installations, [for which] the owning service has environmental regulatory responsibilities.” 

DLA Energy only has the fi nancial responsibility to fund the restoration activities and book the environmental 

liabilities on DLA’s annual fi nancial statement until the sites are closed environmentally. 

By Irene Smith

efense Logistics Agency Energy, throughthe Defense

WorkingCapitalFund,funds theenvironmental restoration

projects turning fuelandchemically contaminatedland intoparksa

open recreationspace.

Cleaning upformer defense fuel support points is oneof the responsibilit

Installation Support for Energy.

“DLA Energyhasbeen cleaningup and remediating sites for years,” sa

Energy Environmental Manager Laura Fleming. “Itis one ofourkeym

DLAEnergy is responsible forthe cleanupof DLA Energyfuel spillsin

Defense’smanual for Managementof BulkPetroleum Products, Natu

“While wecan’town property, we hiretheconsultants to perform cle

with regulatory environmental authorities to ensure ourefforts are in

mental Protection Agency and state environmental agencies,” Flemin

cleanup of ground waterandsoil is a difficultprocessandcantake s

Oneof the most successful projects to date has been DLA Installatio

efforts to clean up aformer Air Force tank farm in Norwalk, Californ

Sincethe 1950s, the Norwalk defense fuel supportpoint wasused by t

plies, and fuel leaks and chemical contamination occurred over the ye

Norwalk is one of 93 long-term remediation sites DLA Installation Sup

“The overall average cleanup budget is between $35 million and $45 mil

teen of thecurrent remediationsites are locatedat eight of the original 1

were permitted toDLAEnergy in the1980s or earlier. The remaining site

installations, [for which] the owningservicehasenvironmental regulatory

DLA Energy only has the financial responsibility to fund the restoration activit

liabilitieson DLA’s annual financial statementuntil thesitesareclosed enviro

Energy Source l October 2014 25
26 www.energy.dla.mil

Contractors clean up a former Air Force tank farm in Norwalk, California. Norwalk 

is one of 93 long-term remediation sites DLA Installation Support for Energy manages. 

Courtesy photo from DLA Installation Support for Energy Environmental Restoration 

branch

Various remediation technologies 

have been employed over the past 

25 years using fast track methods 

to achieve the earliest possible site 

closure. DLA Energy has closed 15 of 

the permitted DFSPs and completed 

the remediation to successfully 

transfer the real property back 

to the owning service. Seven of 

these properties have been further 

disposed of to the private sector. 

Much work remains as site closures 

continue to be achieved, said DLA 

Installation Support for Energy Environment Restoration Branch Chief 

Wayne Barnum. 

He added that new sites are discovered as the result of new fuel releases or old releases are found during 

infrastructure replacement or repair 

projects, and discovery during total 

facility closure site assessments.

Restoration of former DFSPs can 

take years before completion.

In May 2006, during an inspection 

of a hot refueling system for helicopters at Wheeler Sack Army Airfi eld 

at Fort Drum, New York, JP8 jet fuel 

was discovered in a sump pit located 

at the end of the system pipeline. A 

hydrant fueling system leaked more 

than 600,000 gallons of JP8, covering more than 4 acres and created a 

plume of oil that stretched one half 

mile long and permeated the soil to 

more than 40 feet.

Fort Drum’s water supply well fi eld 

was located almost entirely within 

the footprint of the Wheeler Sack 

Army Airfi eld. As a precautionary measure, operation of the Fort 

Drum supply wells was discontinued 

when the fuel spill was discovered 

and is not in operation at this time 

while awaiting restoration.

The assessment and cleanup began 

in 2006, Barnum said. The Army 

and DLA Installation Support for 

Energy initially shared cleanup 

costs. 

After the emergency response phase 

concluded in late 2006, DLA Energy 

took full fi nancial responsibility and 

remains fi nancially responsible until 

the site is fully remediated.

“To date we have recovered 252,000 

gallons at a cost of $35.4 million in 

Defense Working Capital Funds,” 

Barnum said. “Several interim remedial measures have been implemented at the site since 2007 that 

include ozone sparging, and vacuum-enhanced skimming.”

Ozone sparging is used to intercept 

the groundwater plume and prevent 

the additional migration of petroleum-contaminated ground water.

The goal is to achieve remedial 

action through the removal and 

treatment of contaminated groundwater in a manner that is protective 
Energy Source l October 2014 27

of human health and the environment, and allows for operation of 

the facility for its intended purpose, 

Barnum said. 

“The objectives of this pilot study 

are to evaluate enhanced biodegradation of the dissolved-phase contaminants in groundwater through 

the recirculation [through groundwater extraction, treatment and 

reinjection] of oxygen-saturated 

water,” Barnum said. “Groundwater 

monitoring is conducted on a quarterly basis and is showing better 

than projected results in reducing 

the contamination.”

This is the fi rst time this technology 

has been tried at any of DLA Energy’s restoration sites, he said. Given 

the positive results they will look 

to advance use of this technology 

at locations with similar geological 

conditions.

Remediation efforts to clean up the 

Norwalk DFSP are taking a different focus. 

“This is the fi rst time we are using 

green technology for the remediation of a DLA-contaminated site,” 

said DLA Installation Support for 

Energy Program Manager Everett 

Bole. “The purpose of the pilot studies is to test green technologies to 

see if they would work on contaminated soil present at the Norwalk 

site. Often, a technology may work 

on one type of contamination, but 

not so well on another.”

Traditional remediation efforts 

involve soil being removed from the 

site and transported to a different 

area, where it is then treated. 

“We looked at alternative ways to 

treat the soil on the site,” Bole said. 

“We wanted to keep truck traffi c down to a minimum since the 

original 51-acre tank farm site is 

surrounded by a high density, residential area.”

The Reterro, Evaporative, Desorption Soil Treatment unit [above] is one of the two 

green technologies being tested at the former tank farm in Norwalk. Thermal desorption 

works by heating contaminated soil in a sealed box to which a large vacuum hose is 

attached. The box is heated to more than 700 degrees Fahrenheit, burning off the fuel 

and contaminants in the soil, which is collected by the vacuum and disposed. Courtesy 

photo from DLA Installation Support for Energy Environmental Restoration branch

The initial solution for treating the soil was to haul it to an 

off-site soil recycling facility, 

Barnum said. For the former tank 

farm, it meant 100,000 tons of 

dirt had to be moved.

To haul the 100,000 tons of 

petroleum-contaminated soil 

would have required nearly 4,500 

truckloads, Barnum said. 

“The round trip distance to the 

recycling facility is 180 miles. A 

diesel truck gets around 6 mpg 

and each gallon of diesel fuel 

when burned produces 22.2 

pounds of carbon dioxide. Thus, 

a total of nearly 3 million pounds 

of carbon dioxide would be released by transporting the soil for 

off-site treatment,” he said. 

Use of green treatment technology will save literally tons of carbon dioxide emissions associated 

with this project, he added.

The green remediation label 

stems from the fact that there are 

lower energy usage and emissions generated than pretty much 

anything else around right now, 

but they still use energy and generate some emissions, Bole said. 

When compared to the impacts of 

the large dump trucks that would 

be used in their stead, they are 

very much more energy effi cient 

and generate far less emissions.

For the next year, DLA will continue to monitor the groundwater 

and the continued injection of air 

into the soil to promote bacterial growth to eradicate the last 

residuals of contamination. 

“The DLA remediation action 

is projected to be completed in 

2015, as we clean up the soil 

and groundwater through vapor 

extraction and bioventing,” Bole 

said. “The site will be usable for 

development and the objective is 

to turn the entire site back to the 

Air Force as a unit.”

As a result of DLA’s remediation 

efforts, the Air Force is transferring 15 acres of the old tank farm 

to the city of Norwalk to be used 

for a public park and recreational 

space for the community.
28 www.energy.dla.mil

Helium Dra elium Draw

Since 2003, Defense Logistics Agency Energy 

solicited, negotiated, procured, converted, transported and stored helium for military reconnaissance and surveillance aerostat operations that provide “eye in the sky” support for the warfi ghter in the 

Middle East.

Fast forward to 2014. Operations in Afghanistan are 

drawing down to enduring locations, the Army’s recon 

and surveillance aerostat program is reducing its numbers, and DLA Energy is involved in a drawdown of the 

helium supply chain. 

“DLA Energy must reduce its overall helium footprint 

in parallel with the reduction in aerostats while maintaining support to systems that are still operational,” 

said DLA Energy Aerospace Energy Helium Liaison 

Offi cer Dan Lerma, who is deployed to Kandahar, 

Afghanistan.

The need for helium to lift lighter-than-air aerostats 

used in battle intelligence gathering, surveillance, 

reconnaissance and communications programs forced 

DLA Energy’s Aerospace Energy transportation specialists in San Antonio to create and reinvent the helium supply chain in Afghanistan. Those same specialists now face the challenge of breaking it down during 

the drawdown of troops in Afghanistan.

In the last 11 years, DLA Energy has provided approximately 100,000 gallons of liquid helium, which, when 

converted and added to the other fi ll points, met the 

aerostat requirements of more than 90 million cubic 

feet of helium.

“Our concept of operations is shifting,” said DLA Energy Aerospace Energy Supplier Division Chief Doug 

Smith. “We stood up two helium transfi ll facilities that 

converted liquid helium to gaseous. This was the most 

effi cient and cost effective way to get helium in country. We then stored the product at two [defense fuel 

support points] with the HTFs at Bagram and Kandahar.” 

As requirements are reducing and troops are drawing 

down, DLA Energy is no longer bringing liquid helium 

in country, Smith said. 

“With the reduction in overall helium requirements, 

it means closing our defense fuel support points at 

Bagram and Kandahar, and shifting back to centralized support for the area of responsibility at our fi ll and 

storage point in Dubai, United Arab Emirates,” Lerma 

said. 

Lerma said for the past several months under drawdown mode, DLA Energy has been collecting containers returning from closed forward operating bases to 

determine if the container will be refi lled and retained 

for current/future sustainment, redeployed to the 

continental U.S. or to other locations within the area of 

responsibility or processed for disposal as excess. 

The transportation aspects involved in shifting the 

location of these assets during the physical drawdown 

of the helium supply chain has been its own challenge, 

Lerma said.

“As U.S. troop numbers continue to draw down, U.S.-

protected convoys have become a rarity,” Lerma said. 

“Thus, movement of bulk containers on the roads in 

Afghanistan has become more challenging.”

In recent months, there has been an increase in moving the smallest containers by helicopter sling load to 

FOBs for interim support or to locations trucks cannot 

access due to road conditions, Lerma said. In an effort 

to maintain the supply chain and redeploy assets, the 

switch to using cargo aircraft support for moving many 

of the containers had to be made. 

“However, airlifting hazardous cargo requires a myriad 

of regulatory compliance [actions] which can be daunting. The DLA Energy helium team must make sure 

we resolve any regulatory issues and comply with any 

documentation requirements prior to shipment,” he 

said.

“Given the challenges surrounding the transport and 

set-up of the transfi ll equipment to Afghanistan, I 

By Terry Shawn
Energy Source l October 2014 29

awdown

An Aerostat is released to keep watch over and around Multinational Base Tarin Kot, Afghanistan. Currently, the Army’s recon and surveillance program is winding down and DLA Energy is involved in a 

drawdown of the helium supply chain. Photo by Army Cpl. Christopher Dickson
30 www.energy.dla.mil

anticipated as many challenges 

at removing the equipment,” said 

DLA Energy Aerospace Energy 

Contracting Offi cer Karen Harvey. 

“This wasn’t the case,” she said. 

“The Bagram DFSP was closed the 

last week in June, and everything 

went smoothly. Having a DLA Energy liason offi cer on the ground 

in Bagram to facilitate the removal 

made things go very easy,” Harvey 

said. 

The overall helium drawdown 

consists of understanding the 

larger scope of FOB closures and 

troop movements and ensuring 

the helium program drawdown efforts are coordinated closely with 

the multiple aerostat customers 

– NATO’s International Security 

Assistance Force, Joint Command, 

Theater Sustainment Command 

and Movement Control Battalions, 

said Lerma. 

“The key is to ensure our drawdown has minimal impact on theater resources and that we sustain 

current customer requirements 

while planning for the sustainment 

of systems that will be operating in 

2015 under Resolute Support Mission,” Lerma said.

Challenges impact the contracting 

offi cers at DLA Energy Aerospace 

Energy’s offi ce in San Antonio, 

also.

“While our primary focus is the 

customer and servicing their 

needs, as the DLA Energy contracting offi cer, one of my other 

goals is to make sure that the contractor is aware of everything that 

is going on with their contract,” 

Harvey said. “As the drawdown 

continues, and the requirement 

for helium in Afghanistan reduces, 

the contractor will be directly affected.” 

While the contractor is aware that 

the potential exists for contract 

terminations, the reality of it 

doesn’t “hit home” with them until 

it actually happens, she said. 

“Once a date for removal of the 

helium transfi lls is determined, 

the contractor has to scramble to 

make arrangements for this early 

removal, and readjust their business plan to accommodate this 

change,” Harvey said.

Despite the size of the drawdown 

operation and its complexities, 

from their respective locations 

some 8,000 miles apart, Lerma 

and Harvey both said they feel the 

task is on target.

Noting the closure of Bagram 

DFSP and the consolidated operations at DFSP Kandahar, the Kandahar facility closed at the end of 

September and the closure of the 

storage yard took place a month 

later, Lerma said.

“It is our goal to switch support 

to the AOR-centralized location 

in Dubai, for the remainder of the 

year and through 2015. The key to 

success will be to ensure customers are well stocked and have 

ample supply on hand as we make 

the switch,” Lerma said.

“I believe the progress of the drawdown is right on the mark,” Harvey said. “We anticipate having all 

of the contractor’s equipment and 

employees out of Kandahar prior 

to the expiration of the contract. 

We are working at supporting the 

contractor towards the end of this 

contract.”

DLA Energy Aerospace Energy 

Customer Facing Chief Ken Grams 

said he believes the success of the 

drawdown has a lot to do with the 

DLA Energy Aerospace Energy 

team’s active involvement in the 

helium supply chain mission over 

the course of the war.

“During the last 11 years, several 

folks from DLA Energy Aerospace 

Energy volunteered to act as the 

helium liaison offi cer,” Grams 

said. 

In addition to Lerma, Andy Avila, 

Mike Blankenship, Keith Harvey 

and Willard Ramseur volunteered 

for at least one tour as helium 

liaison offi cer in Afghanistan. 

“Without their sacrifi ce as well 

as the efforts of the folks in San 

Antonio, the [helium supply chain] 

mission would not have been the 

success that it was,” Grams said.

Compressed helium sits on a Combat Logistics Battalion 4, 1st Marine Logistics 

Group (Forward), trailer during supply offl oad operations at Forward Operating Base Pennsylvania March 5. The surveillance blimps the helium fi lled served 

to make the area safer for mounted and dismounted patrols. Photo by Marine 

Cpl. Mark W. Stroud
Mission: DLA 

Energy Americas 

provides 

comprehensive 

energy support 

and solutions 

to the Defense 

Department, 

federal agencies 

and other 

customers in the most 

effective and economical 

manner possible. Our area 

of responsibility consists 

of North, Central and South 

Americas, plus the Caribbean Island states and territories – a total of 16,632,233 

square miles encompassing the 48 contiguous states within the United States 

and 39 additional countries/territories. Our fuel management and strategic 

energy support includes distribution management, inventory management, and 

quality assurance functions of bulk fuel (aviation), bunkers (marine), direct 

delivery fuels (ground and installation), into-plane (aviation), missile/cryogenic, 

lubricant oil and coal. We also support alternate/renewable energy initiatives. 

Bulk fuel storage and distribution support includes contract administration, 

inventory accountability and storage facility maintenance. 

Highlights: ighlights: Providing superior warfi ghter support, practicing good stewardship and continuing to develop the skills of the DLA Energy Americas workforce are 

just some of the recent accomplishments. The most important highlight is the 

incredible teamwork and dedication of the Americas workforce. Whether it is 

responding to a natural disaster such as Hurricane Sandy, winter storms impacting the United States, or a National Level Exercise involving multiple agencies, the men and women of “Team Americas” respond with professionalism and 

dedication. 

Challenges: hallenges: Deployment and sustainment of the Enterprise Business System has 

been one of the most signifi cant challenges and opportunities for DLA Energy 

Americas. 

Something for the workforce to know: omething for the workforce to know: In an average year, Americas ensures 4.2 

billion gallons of fuel is delivered throughout the AOR based on 2,045 customer 

accounts and contracts with 37 suppliers. 

Army Col. Ronald Ross

DLA Energy Americas 

Commander ommander

Houston

Energy Source l October 2014 31

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2014 Department of Defense

Maintenance Symposium aintenance Symposium

Delivering Agile and Affordable Maintenance Capability elivering Agile and Affordable Maintenance Capability

November 17-20, 2014 ovember 17-20, 2014

Sheraton Birmingham Hotel - Birmingham, Alabama, USA heraton Birmingham Hotel - Birmingham, Alabama, USA

Don’t miss the opportunity to be part of the premier on’t miss the opportunity to be part of the premier

military and commercial maintenance event of the year! ilitary and commercial maintenance event of the year!

www.sae.org/dod ww.sae.org/dod

Administrative support provided by SAE International under contract wth dministrative support provided by SAE International under contract wth 

the U.S. Department of Defense he U.S. Department of Defense