Inside this issue: nside this issue:

Capstone of the top initiatives apstone of the top initiatives

DLA Energy delivers LA Energy delivers

DLA Energy fuel makes liquids exercise possible LA Energy fuel makes liquids exercise possible

Memoriam for Rear Adm. Kurt L. Kunkel, SC, USN, Commander, emoriam for Rear Adm. Kurt L. Kunkel, SC, USN, Commander, 

Defense Logistics Agency Energy efense Logistics Agency Energy
FROM THE

Navy Rear Adm. Kurt Kunkel, SC, USN

Commander, Defense Logistics Agency Energy

2 www.energy.dla.mil

Commander

Navy Rear Adm. Kurt Kunkel

Acting Commander

Patrick Dulin

Acting Deputy Commander

Mike Scott

Chief of Staff

Navy Capt. Charles Race

Public Affairs Offi cer

David Sims

Editor

Idella Fletcher

Energy Source is an offi cial publication 

distributed by and for the Defense Logistics 

Agency Energy and fuel-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 Logisitics Agency or Defense 

Logistics Agency Energy. Energy Source is 

prepared by desktop publishing applications. 

Photos not credited are courtesy of DLA 

Energy sources.

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

Commander

Editor’s note: Navy 

Rear Adm. Kurt Kunkel 

wrote this arti cle prior 

to his passing Sept. 28. 

A page in memoriam of 

his life and ti mes with 

the Defense Logisti cs 

Agency Energy can be 

found inside the back 

cover of this editi on of 

the Energy Source.

In this capstone editi on of the Energy Source, we’re faced 

with the diffi cult task of selecti ng highlights from a year in 

which the Defense Logisti cs Agency Energy has so many accomplishments.

 Warfi ghter support remained the core of our mission this 

year. As operati ons in Iraq were scaling down, support for 

Afghanistan came more into prominence. While many sites 

DLA Energy supports come with their own set of requirements, there are unique challenges involved in adapti ng fuel 

support to the changing needs in the Middle East. With a 

dedicated and well-trained workforce, both inside and outside the region, we have been able to face these challenges 

with unwavering resolve.

 Operati ons this year went beyond the Middle East, and 

so did DLA Energy’s eff orts. U.S. Operati on Odyssey Dawn 

and, later, NATO Operati on Unifi ed Protector required coordinati on between DLA Energy’s Europe and Africa region 

and U.S. Africa Command to provide fuel to forces in Libya. 

Even today, DLA Energy conti nues to sustain the warfi ghter 

with the fuel needed to accomplish their humanitarian and 

security missions.

 Aft er the Japanese earthquake and tsunami in March, 

DLA Energy’s assistance through Operati on Tomodachi 

exemplifi ed the dedicati on and resourcefulness of DLA 

Energy and its employees at a ti me when quick acti on was 

needed most. From off setti ng demands for motor gasoline to supplying generator and heati ng fuels, our record 

of past support shows DLA Energy can be depended on 

for assistance.

 Apart from humanitarian operati ons in Japan, DLA Energy conti nues to prepare for the assumpti on of the 505th 

Quartermaster Batt alion’s fuel support mission from 

the defense fuel support point located on Okinawa. Our 

Pacifi c offi ces are engaged in ensuring a smooth transiti on 

that will further promote the comprehensive energy soluti ons in the effi cient and eff ecti ve ways that DLA Energy is 

known for.

 Such energy soluti ons extend further than the traditi onal petroleum mission, with conti nued support for the 

growing fi elds of alternati ve fuels and renewable energy. 

DLA Energy maintains its relati onship with the services 

to procure alternati ve fuels for testi ng and certifi cati on 

purposes, and is currently involved in our largest biofuel 

contract to date. As the services move past the testi ng 

and certifi cati on stages and into large-scale exercises and 

goals, such as the Navy’s Great Green Fleet, DLA Energy 

looks forward to expanding our AFRE support to match 

that pace.

 In the coming year, DLA Energy will conti nue to support the warfi ghter through these and other eff orts.

I remain cofi dent that we have the team 

fully capable of meeti ng the warfi ghter’s needs, our armed force’s energy 

goals and our nati on’s energy security. 
November 2011

 

Energy Source l Nov./Dec. 2011 3

pg 9

pg 24

pg 37

pg 33

Installation Energy: the power behind energy 4 

Bulk Petroleum enables largest energy supply chain 5 

DLA Energy, Energy Enterprise tracks shifting utility 

privatization goal 6

 

Highlights to the U.S. Government AIR Card® Program 8

When a swiped SEA Card® is a good thing 9

DoD Fleet Cards take on new process and look 9 

Aerospace Energy goes beyond rocket fuel to save lives 10 

DLA Energy improves support to defense fuel support 

points worldwide 12 

Quality: our top priority 14 

Small Business offi ce employs matchmaking, other 

techniques 16 

DLA Energy Europe and Africa keeps energy fl owing 17

DLA Energy Middle East embraces change while 

supporting the warfi ghter 20 

DLA Energy Pacifi c: rolling on 21 

DLA Energy fuel makes liquids exercise possible 

QLLEX is the largest Army-wide petroleum and water transportation 

exercise conducted in the continental United States. 24

DLA Energy delivers:

Trains, trucks and barges bring coal 26

Unique group launches mission success 27 

Global storage and distribution network fuels forces 29

Keeping the home fi res burning and expanding 

global reach 30

Expanding global fuel access for the warfi ghter 33 

Capstone: Top Initiatives apstone: Top Initiatives

Energy

We are DLA e are DLA

In Memoriam n Memoriam

Online Exclusives nline Exclusives

 34

37

Visit www.energy.dla.mil to see Energy Source Online Exclusives, additi onal 

stories and photos only available in the e-version of Energy Source.

Rear Adm. Kurkel, SC, USN, Commander, DLA Energy
4 www.energy.dla.mil

Installation Energy: the power behind energy

When it comes to procuring coal, natural gas, electricity or renewable energy, or implementi ng energy conservati on measures, the Department of Defense and federal agency customers can turn to the Defense Logisti cs Agency Energy’s Installati on 

Energy business unit for an energy soluti on that meets their needs. 

 The DLA Energy team has been purchasing coal since the 1960s, and when deregulati on of the natural gas and electricity 

markets came along in the mid-1980s and 1990s, respecti vely, DLA Energy was there to provide customers the procurement 

support they needed to take advantage of the competiti ve market opportuniti es. 

 The Installati on Energy team built a cadre of energy and acquisiti on professionals to assist customers with their energy requirements, providing value through regional and nati onwide procurements that allow DoD to leverage its buying power, oft en 

resulti ng in lower, more competiti ve pricing. Since 1991, DLA Energy’s natural gas program has nett ed close to $800 million in 

cost savings for parti cipati ng customers. In fi scal 2010, these savings exceeded $60 million, translati ng to a 19 percent savings 

as compared to what customers would have otherwise paid their local uti lity provider. 

 When customers requested DLA Energy assistance to navigate their way into electricity demand-response programs, DLA 

Energy was quick to respond, signing agreements with multi ple curtailment service providers in order to give customers the 

tools they need. 

 Customers who parti cipate in 

these programs receive rebates and fi -

nancial incenti ves based on fi rm commitments to reduce electricity loads 

during periods of high demand. To 

date, there are more than 60 parti cipati ng customers who received more 

than $4.7 million in fi nancial rebates 

and credits. And DLA Energy hopes to 

increase the number of parti cipati ng 

customers this year.

 Today, DLA Energy’s Installati on 

Energy is acti vely managing more than 

2.6 million tons of coal, more than 100 

million dekatherms of natural gas and 

more than 14.5 million megawatt hours of electricity under single and multi -year contracts. 

 DLA Energy awarded its fi rst renewable energy contract in 2001 on behalf of various DoD and federal civilian customers in 

Texas in response to Executi ve Order 13123. This launched a DLA Energy program that has since awarded more than 5.5 million 

megawatt hours of renewable energy credits and received two Presidenti al Awards for Leadership in Federal Energy Management. 

 The staff is made up of integrators who are experts at bringing the services and energy providers together, said the business unit’s director, Kevin Ahern. 

 “Energy is what we know best, it’s what we do, and we do it very well. Our procurement team is made up of a group of 

true professionals who are dedicated to what they do. And the result is an experti se in energy market dynamics that is unrivaled by any other agency,” he said.

 With an increased focus on DoD and federal agencies to implement renewable energy and energy effi ciency measures, 

DLA Energy is exploring opportuniti es to assist customers in this evolving arena. To date, DLA Energy awarded more than $430 

million in energy savings performance contracts and has issued multi ple procurements for long-term purchase agreements 

to facilitate development of on-site renewable projects. The DLA Energy team parti cipates in the Renewable Energy Working 

Group and Federal Uti lity Partnership Working Group to share informati on, procurement models and best practi ces for project 

success. 

 For more informati on, visit the Installati on Energy page on the DLA Energy website at htt p://www.energy.dla.mil.

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By Ashleigh Johnson

DLA Energy Installati on Energy

Courtesy Photo
Energy Source l Nov./Dec. 2011 5

Bulk Petroleum 

enables largest 

energy supply 

chain 

By Bruce Blank and Joy Mullori

Bulk Petroleum

The Defense Logisti cs Agency Energy’s Bulk Petroleum business unit conti nues to expand its role in the support, management and oversight of DLA Energy’s largest energy supply chain, providing defense fuel support to the 

warfi ghter. Bulk Petroleum, which procured $9.6 billion of bulk petroleum products and services in fi scal 2010, accomplishes this mission through a variety of mechanisms. 

 The business unit, located at Fort Belvoir, Va., awards and administers all bulk fuels contracts and provides worldwide acquisiti on support for fuel-related services such as contractor-operated defense fuel support points, alongsideaircraft fuel delivery, lab testi ng, environmental compliance, assessment and remediati on. 

 Bulk Petroleum is also the single source for draft ing, negoti ati ng, concluding and amending internati onal fuel 

agreements with foreign governments supporti ng worldwide Defense Department operati ons. The business unit’s 

internati onal agreements division manages 42 agreements with 23 diff erent nati ons or treaty organizati ons.

 Bulk Petroleum procures large quantiti es of refi ned fuel meeti ng military specifi cati ons. In fact, the organizati on 

procured nearly 64 percent of the $15 billion in contracts awarded by DLA Energy in fi scal 2010. Other purchasing programs include lube oils, jet propulsion thermally stable, fuel system icing inhibitor and foreign military sales. 

 The business unit is also acti ve in the push to expand the use of alternati ve fuels by the military services. The Bulk 

Petroleum team purchased more than 600,000 gallons of hydrotreated renewable jet fuels for testi ng and certifi cati on 

purposes over the past two fi scal years. These fuels, produced using camelina, algae and tallow, were used to test and 

verify the military services’ equipment was ready and able to use these new fuels as they are introduced into the supply chain over the coming years. Bulk Petroleum conti nues its support for alternati ve fuels through its alcohol-to-jet 

purchase for testi ng and certifi cati on by the Air Force—and for the Navy’s Green Fleet initi ati ve, which represents the 

largest single-service purchase of alternati ve fuels to date.

 At the end of fi scal 2011, the fuel services side of the business unit had government-owned contractor-operated 

alongside-aircraft refueling services at 111 diff erent locati ons and 44 contractor-owned contractor-operated sites 

under contract worldwide storing government-owned fuel. The fuel services side of bulk conti nues to grow and the 

business unit conti nues to add new GOCO and alongside-refueling locati ons.

Courtesy Photo
6 www.energy.dla.mil

 Bulk Petroleum provides a centralized procurement 

process by leveraging experti se organized into the following core competencies: domesti c bulk fuels, overseas bulk 

fuels, domesti c storage and services, overseas storage and 

services and internati onal agreements.

 The bulk petroleum buying group makes all of these 

procurements with a staff of 84, resulti ng in a very low 

operati onal cost that further maximizes stewardship of 

the taxpayer’s dollar.

 The domesti c bulk fuels division is divided into 

three branches, each headed by a warranted contracti ng 

offi cer. The branches are responsible for recurring program buys—Inland East Gulf, Rocky Mountain West, bulk 

fuel system icing inhibitor, foreign military sales and various alternati ve fuel purchases.

 The overseas bulk fuels division comprises two 

branches, each headed by a warranted contracti ng 

offi cer. The branches are responsible for recurring program buys—Atlanti c/Europe/Mediterranean, Western 

Pacifi c, Deep Freeze, along with overseas conti ngencies 

supporti ng acti viti es in Kuwait, United Arab Enirates and 

Iraq, and consulti ng services.

 The domesti c storage and services division is divided 

into two branches, each headed by a warranted contracting offi cer. One branch is responsible for domesti c government-owned contractor-operated faciliti es storage, lab 

testi ng and environmental services. And the other branch 

is responsible for alongside-aircraft refueling, opti mizati on 

and large miscellaneous domesti c purchases. 

 The overseas storage and services division comprises 

two branches, each headed by a warranted contracting offi cer. The branches are responsible for worldwide 

contractor-owned contractor-operated storage, overseas 

government-owned contractor-operated storage, opti mizati on, and overseas lab testi ng and inspecti on services.

 The internati onal agreements division provides 

worldwide logisti cal support through internati onal agreements with foreign governments in accordance with DoD 

Directi ve 4140.25, Chapter 17, DoD Management Policy 

for Energy Commoditi es and Related Services and applicable delegati ons. DLA Energy is authorized to negoti ate 

and conclude internati onal agreements for energy commoditi es, additi ves, laboratory testi ng, faciliti es to include 

storage and pipelines, related services, fuel exchanges, 

replacements-in-kind and direct bills.

For more informati on on Bulk Petroleum visit 

htt p://www.energy.dla.mil. 

Energy Enterprise 

tracks shifting 

utility 

privatization 

goals 

By Jacob Moser

Energy Enterprise 

Defense Logisti cs Agency Energy’s Energy Enterprise 

business unit helps the Department of Defense implement Uti lity System Privati zati on. It provides contracti ng, 

technical, pricing and program management experti se 

to the military services and Offi ce of the Secretary of 

Defense. As new program requirements issued in 2012 

are interpreted and implemented, Energy Enterprise will 

remain the center of experti se of this evolving program.

 Uti liti es privati zati on enables the military services 

to upgrade and modernize uti lity infrastructure without upfront investments. Instead, commercial sector 

investment capital funds the projects. Privati zing the 

infrastructure takes advantage of commercial experti se 

and ti mely enhancements, and it greatly enhances the 

reliability of installati on uti lity systems, which are criti cal 

to supporti ng military missions and providing essenti al 

services to military service personnel. UP also enables the 

military services and personnel to concentrate on core 

missions.

 Congress approved legislati on authorizing the 

DoD to privati ze its uti lity systems, including electrical, 

water, wastewater, and natural gas systems, in the Nati onal Defense Authorizati on Act for fi scal 1998. This legislati on was followed by the DoD Reform Initi ati ve Directi ve 

#9, directi ng the military departments to develop a plan 

for privati zing all of their uti lity systems. 

 UP comprises two contractual acti ons: fi rst, selling 

the government-owned, on-base, uti lity distributi on system to a private enti ty, and second, contracti ng with that 

enti ty for uti lity services for up to 50 years. 

Across its installati ons, DoD owns approximately 

2,600 uti lity systems valued at $50 billion.
Energy Source l Nov./Dec. 2011 7

 If these systems 

were not operati ng 

eff ecti vely, this would 

have serious strategic 

implicati ons on how 

DoD trains, equips and 

provides a good quality 

of life for all personnel 

and their families living 

and working on each installati on. DoD has been 

slow to upgrade these 

systems because of the 

signifi cant upfront costs 

associated with the 

constructi on. But the UP 

program makes these 

upgrades more feasible.

 The road to privati zing all DoD uti lity systems has seen its share of challenges – and they are not over yet. The UP process has been more 

diffi cult and challenging than expected, especially in the areas of contract solicitati on, evaluati on and administrati on. 

The program was also temporarily suspended twice due to clarifi cati ons in policy and guidance.

 DRID #9 initi ally set a goal of Jan. 1, 2000, to complete the privati zati on of all systems except those where security 

or uneconomical reasons occur. In late 1998, DRID #49 revised the original goal to Sept. 30, 2003. But in 2002, DoD 

revised its guidance and pushed the UP implementati on goal back to Sept. 30, 2005. Now the military services are esti -

mati ng the privati zati on completi on date will be 2017. 

 NDAA 2010 introduced new requirements to the UP program. It requires that, in order to privati ze, the UP off er 

be lower than the Government Should Cost Esti mate by 10 percent. The government's "should cost" is the total cost of 

service to own, operate, maintain and recapitalize the subject uti lity system to commercial standards. It is based on the 

number of employees, direct and indirect labor costs, contracti ng support, and the equipment and materials used to 

perform work on the uti lity system in accordance with commercial practi ce.

 This means the off er must be 10 percent below what it would cost the government if it owned, operated and 

maintained the system(s) over a 50-year period. It also requires a fi ve-year moratorium on UP acti ons where an A-76 

acti on has taken place. An A-76 study determines whether a functi on can be more effi ciently performed by government employees or the commercial sector.

 The UP program conti nues to face challenges. The current schedule to complete UP acti ons extends to 2017. 

Funding and other issues conti nue to be constraints on the schedules and conti nued success of the program. Contract 

administrati on conti nues to grow which consumes resources and presents ever increasing complex issues. 

 Energy Enterprise is a center of contracti ng excellence for UP. It is responsible for both pre- and post-award 

acti ons. To date, it has awarded the following contracts through fi scal 2010:

 Awards made for 90 systems at 42 installati ons

• Award value: $9.56 billion, $2.04 billion below Government Should Cost Esti mate

 Energy Enterprise currently administers:

• 34 contracts

• 60 systems at 29 installati ons

• At a total value of $8.4 billion

 The mission is growing and Energy Enterprise looks to improve workforce development and 

increase its staff to take on this challenging mission. 

Contractor-owned waste water backup generators at Fort AP Hill, Va., prevent sewage overfl ow during 

power outages. Photo provided by Carla Biver, DLA Energy, Energy Enteprise. 
8 www.energy.dla.mil

Highlights to the U.S. 

Government AIR Card® 

Program By Liz Baines 

Government Fuel Card Program 

Management offi ce

The Government Fuel Card Program Management offi ce recently insti tuted some improvements to the U.S. Government Aviati on Into-plane Reimbursement Card® program. New controls, such as a revised authorized ground services product list, will improve invoice accuracy and accountability. 

 Why the change?

 The program offi ce team noti ced numerous purchases, made by the aircrews and pilots who are ordering offi cials, 

appeared suspect. But, the military services confi rmed the charges were accurate. This exposed a root problem: commercial airport vendors were invoicing for bundled services or miscellaneous charges that fl owed without detecti on 

directly to the customer invoice. In response, the AIR Card® program manager, legal counsel, contracti ng offi cer and 

the component program managers acted immediately. They began to establish additi onal management controls to 

miti gate fraud, waste or abuse of ancillary ground service charges. 

 Developing an authorized ground service product list was a joint eff ort. It resulted in a contract modifi cati on, 

issued to the AIR Card® contractor, and the subsequent new product list being published to program parti cipants 

during the second quarter of fi scal 2011. 

 The new product list has been disseminated to the accountable offi cials, aircrews, into-plane contractors and noncontract airport merchants worldwide who accept the AIR Card®. 

 “DLA Energy relies on assigned accountable offi cials to monitor all invoices under the AIR Card® program. Adhering to the new authorized ground service product list ensures only those authorized ground services are available for 

purchase,” explained Ann Sielaty, director of the Government Fuel Card Program Management offi ce. 

 There are many levels of oversight assigned to an account, and new reporti ng eff orts are underway to assist 

accountable offi cials in their fi scal responsibiliti es, she said. 

 The fuel card offi ce issues a quarterly newslett er to keep all parti es informed and aware of training, scheduled 

webinars, program changes, reports and new program improvements, and always asks for customer feedback. Management controls ensure merchants are charging customers for services rendered, and the full detail of transacti ons is 

processed and billed correctly. 

 For example, cardholders’ signatures on a receipt are verifi ed. If a signature is not present, the AIR Card® contractor contacts the accountable offi cial and verifi es the accuracy of the invoice. Similarly, unauthorized charges refl ecti ng 

incorrect codes are now returned to merchants for correcti on and re-coded to refl ect the proper product codes. 

 Additi onal management controls include routi ne random sampling of invoices. Any questi onable charges are forwarded to the component program managers for follow-up and documentati on. If necessary, suspect charges are also 

forwarded to the applicable military service investi gati ve offi ces by the Defense Logisti cs Agency Energy legal counsel. 

 The specifi c ancillary ground services not authorized include such items as catering charges, transportati on outside of the airport terminal, hotel accommodati ons, rental cars, purchasing of mobile phones and gratuiti es. 

 Aircrews and merchants have been instructed to use a personal government travel card or another personal 

charge card for these types of services. 

 The newly established authorized product list for ground services is posted on the DLA Energy website at: 

htt p://www.energy.dla.mil/dcm/fi les/PublishFINAL%20AIR%20Card%20Product%20Codes%2020110120.pdf.
Energy Source l Nov./Dec. 2011 9

When a swiped SEA Card® 

is a good thing

By Alexis Anderson

Government Fuel Card Program

 Management offi ce

Small vessel operators who weren’t previously eligible to use the Department of Defense Ships’ Bunkers Easy 

Acquisiti on Order Management System SEA Card® program may soon benefi t from the new Swipe SEA Card® program 

designed to meet their fuel needs.

 The Defense Logisti cs Agency Energy Government Fuel Card Program Management offi ce recently awarded a 

task order under the General Services Administrati on SmartPay®2 contract to Citi bank for a charge card program that 

serves small vessels with fuel purchases up to the simplifi ed acquisiti on threshold of $150,000. 

 A pilot program is expected to commence this year with up to 100 parti cipati ng vessels across the U.S. Army, Coast 

Guard and Navy. The pilot is expected to run 4-6 months and will demonstrate many capabiliti es. These include:

• Automated account setup and maintenance

• Specifi c Merchant Category Codes assigned to ensure purchases are limited to fuel-providing merchants

• “Gas and go” refueling at locati ons within and outside the conti nental U.S. 

• Electronic invoicing and inter-fund billing

• Processing of level I, II or III transacti ons

• Online reporti ng capability

 When the pilot is completed, rollout will begin across the DoD and any interested federal civilian agencies. Those 

interested in parti cipati ng in the program may contact their component program manager or email the account manager at seacard@dla.mil. 

DoD Fleet Cards 

take on new 

process and look

By Rudy Cruz-Olmo

Government Fuel Card Program Management offi ce

Users of the Department of Defense Fleet Card Program 

may not recognize the card aft er its recent makeover, but they will certainly recognize the enhancements in performance that come along with the new look. 

 The latest enhancement to the Fleet program brings on the Wide Area Workfl ow invoicing process for non-fuel 

transacti ons. And, the Government Fuel Card Program Management offi ce has engineered a totally new look to disti nguish the DoD Fleet Card from General Services Administraton fl eet cards. 

 The DoD Fleet Card is used by military and U.S. Coast Guard customers to purchase fuel and fuel-related services 

at commercial service stati ons. Detailed fuel card transacti on data allows the fuel card team to establish management 

controls and routi nely audit fuel card accounts for questi onable purchases, fraud, duplicate invoices, split purchases, 

miscellaneous transacti ons and purchases over the micro-purchase threshold. It also provides data on types and quanti ty of fuel purchased. 

 The DoD-initi ated WAWF enhances that control. The WAWF invoicing system is an interacti ve Web-based applicati on that allows vendors to electronically submit invoices, eliminati ng 

paper transacti ons from the acquisiti on process. WAWF provides an 

electronic capability for the customer to receive reports, review receipts 

requiring inspecti on, acceptance and payment. The WAWF initi ati ve, 

sponsored by the Defense Finance and Accounti ng Service, allows an 

accountable offi cial to electronically approve invoices and authorize 

payment of all non-fuel related invoices, and is directly sent to the 

designated DFAS payment offi ce. To meet the DoD mandate for WAWF 

implementati on, all DoD accountable offi cials are required to transiti on 

from approving paper invoices to approving electronic invoices.

Front view of the Fleet credit card.
10 www.energy.dla.mil

 Today, U.S. military customers have the opportunity to receive invoices 

and remit miscellaneous (non-fuel) payment through WAWF. This enhancement reduces the ti me spent handling paper invoices for non-fuel 

transacti on sett lements, improves oversight of the account and ensures 

ti mely payments. These new features provide customers with direct 

up-to-date access on the fl eet card payments and diminish delinquent 

payments.

 Additi onally, customers will conti nue to deal with the same contractor through at least November 2015 as DLA Energy recently exercised 

the fi rst opti on to extend the period of the DoD Fleet Card tailored task 

order. The newly-designed card features the DLA Energy logo on the 

top left corner and “Department of Defense” is printed on the center of 

the card. The embossed card identifi es the military unit and DoD acti ve 

address code for billing purposes. The card can be electronically swiped 

or mechanically imprinted. Emergency maintenance and vehicle parts like windshield wipers or oil can be purchased 

with the Fleet Card. All non-fuel invoices are “split-billed” and sent directly to the acquiring unit; they will be accessible 

through WAWF. 

 Upon expirati on of the old cards, the new fl eet cards will be issued and completed before Nov. 29. The design will 

allow DLA Energy customers and merchants to quickly diff erenti ate it from the GSA Fleet Card. 

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Aerospace Energy 

goes beyond rocket 

fuel to save lives 

By Charlene Smoot

Aerospace Energy 

As the last space shutt le launch roared to life July 8, Defense 

Logisti cs Agency Energy’s Aerospace Energy business unit had already done its job, having delivered the exoti c-sounding hypergolic 

propellants—monomethylhydrazine and dinitrogen tetroxide—to 

help guide the shutt le to its fi nal docking with the internati onal 

space stati on and later steer it gently back to earth. Aerospace Energy supported NASA’s Space Shutt le since its incepti on. And, it will 

conti nue to supply propellants to U.S. rockets such as the Atlas V 

and Delta IV along with relati ve newcomers in the U.S. commercial 

space launch business; and to satellites providing everything from 

weather support to military surveillance. Supporti ng such missions 

is routi ne for this organizati on.

 However, the proudest moments come from the more recent 

mission of providing bulk gaseous helium for life-saving surveillance 

aerostats for troop support in the Middle East, said Sharon Murphy, 

the director of Aerospace Energy. This mission is also the toughest, with the most complex logisti cal and contractual support, she 

conti nued. 

Back view of the Fleet credit card.

Courtesy Photo
Energy Source l Nov./Dec. 2011 11

 “It’s the most challenging supply chain we’ve 

ever developed,” explained Murphy, who worked in 

many units within DLA Energy. The business unit has 

established a unique supply chain of multi -modal 

gas containers, along with liquid helium transfi ll 

units that provide the helium to keep the aerostats 

afl oat, she said. 

 The organizati on provides worldwide logisti cs support of chemicals, gases, rocket and missile propellants and cryogenic fl uids to the federal 

government. Customers include the Department of 

Defense, NASA and the Department of Energy. The 

unit also supplies these products to defense contractors such as Boeing and Lockheed Marti n, and 

U.S. commercial space launch companies, as authorized under the Commercial Space Launch Act. Colleges and universiti es working under federal grants also receive products under authorizati on of the act. 

 The business unit’s logisti cs management division provides worldwide inventory management, transportati on and 

container management for commoditi es such as hydrazine, dinitrogen tetroxide, liquid and gaseous nitrogen and oxygen for programs such as the Space Shutt le, Atlas and Delta rockets and commercial satellites. In additi on, they provide 

special propellants such as JP10 for missiles and specialty gases such as hydrogen peroxide, argon, fl uorine, deuterium, 

helium, neon and xenon that support programs like Sti nger missiles and military aerostats. 

 The contracti ng division provides “cradle to grave” support to inventory managers and transportati on 

specialists in acquisiti on planning. Innovati ve contracti ng produces the best methods for procuring both the 

products and associated services needed to support customers. Requirements are awarded on a competiti ve 

basis through negoti ati ons, resulti ng in multi ple year, indefi nite delivery requirements type contracts that provide long-term coverage and extensive fl exibility in meeti ng unique customer needs.

 The products managed by the Aerospace Energy business unit are primarily used as fuels, pressurants, 

coolants or lighter than air lift ing gases and demand total supply chain management on the part of the unit. 

Lack of a parti cular fuel or pressurant could prevent a space launch from occurring, cause property losses due 

to corrosion or heat damage or could even threaten force protecti on. 

 All of the commoditi es managed by Aerospace Energy unit are classifi ed as hazardous materials, many 

with volati le characteristi cs. As a result, the Aerospace Energy transportati on offi ce has one of the most challenging and unique jobs—that of transporti ng a variety of hazardous materials. Traffi c management specialists 

in this offi ce require an astute knowledge of current federal, state, local and internati onal hazardous materials regulati ons. In additi on, the offi ce is responsible for approximately 15,000 pieces of equipment including 

drums, cylinders, trailers, Internati onal Standards Organizati on containers and rail tank cars, many of which are 

designed especially for specifi c commoditi es. 

 Even though the Space Shutt le is now history, the Aerospace Energy business unit conti nues to thrive supporti ng new programs. 

 “With the extra support required overseas for outside the conti nental U.S. gaseous helium supporti ng the 

warfi ghter, inventory management and transportati on just got more intense with multi ple locati ons of inventory and a lot more containers to track,” Murphy explained. 

 “Regardless of the increased workload, it’s very sati sfying to provide the outstanding level of support to 

customers that they have grown accustomed to, not only for the warfi ghter, but for space missions, too,” she 

said. “Delivering propellants and more is what Aerospace Energy is all about.”

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Space shuttle Endeavour races into space from Kennedy Space Center, 

Fla., May 16 with Defense Logistics Agecny Energy-procured energy 

products. Th e fl ight to support the International Space Station was this 

shuttle’s fi nal mission. NASA photo.

Th e Army Space and Missile Defense Plan from Huntsville, 

Ala., conducted a test with its Rapid Aerostat Initial Deployment System at Bagram Airfi eld in Afghanistan, during Operation Enduring Freedom. Th e RAIDS can serve as a weather 

station, laser range fi nder, and can also be used to track enemy 

personnel. Contractors are making fi nal adjustments to some 

of the equipment.

Photo by: Sgt. Vernell Hall
12 www.energy.dla.mil

DLA Energy improves support 

to defense fuel support points 

worldwide 

By Tracy A. Keenan

DFSP Management

12 www.energy d.la.mil

Defense Fuel Support Point, Point 

Loma, military construction 

project at Fleet Logistics Center 

San Diego, Calif. Fuel tanks were 

replaced in fi scal 2008.

Courtesy Photo

The Defense Logisti cs Agency Energy’s Defense Fuel Support Point Management business unit was created in 

October 2009 to improve management oversight of the Department of Defense’s 612 DFSPs. The business unit, located 

at Fort Belvoir, Va., oversees the effi cient and eff ecti ve operati ons of the faciliti es storing DLA Energy’s extensive fuel 

inventories, while serving as the focal point for the worldwide inventory management of all DLA-owned fuel. DFSP 

Management is responsible for management of all functi ons that impact the operati ons at a DFSP from requirements 

generati on to inventory accounti ng and training. 

 A DFSP is a fuel storage terminal that receives, stores, issues and accounts for DLA-owned capitalized fuel. It manages on-hand inventories, faciliti es, equipment, personnel and local training programs, and maintains all facets of the 

audit trail for fuel owned through DLA’s Defense Working Capital Fund. A DFSP can be a government-owned facility on 

a military installati on or contractor-owned and operated facility on or off the military installati on. 

 Before DFSP Management was created, a DFSP would have to coordinate with three diff erent DLA Energy offi ces 

to resolve issues for the operati on and management of the DFSP. DFSP Management provides a single face for DFSP 

support issues within DLA 

Energy and for its customers. 

 “One reason DFSP 

Management was formed 

was to allow DLA Energy 

to provide bett er support 

to the DFSPs,” said Rockne 

Krill, director of DFSP Management. “It allows us to 

pull in people with the right 

skill sets to do this. Based 

on my previous experience 

providing technical support 

to and managing DFSPs, 

it has been an issue with 

regard to who to go to for 

help. Establishment of the 

DFSP Management business 

unit is a big step towards 

getti ng bett er support to 

our customers.” 
Energy Source l Nov./Dec. 2011 13

Courtesy Photo

Storage tanks located on a 

Defense Fuel Support Point on 

Craney Island.

 DFSP Management comprises 

four divisions: supply chain operati ons; inventory accountability; sustainment, restorati on and modernizati on; and DFSP support. 

 Supply chain operati ons brings 

together all the functi ons that 

impact the petroleum supply chain. The division is responsible for top-level managerial oversight and technical experti se in the development of requirements to support acquisiti on programs for bulk petroleum products, storage and 

distributi on services. The division is supported by two branches: facility management and inventory and distributi on 

management. 

 The division is working on several initi ati ves. These include transiti on of fuel operati ons on Okinawa, Japan, from 

Army’s 505th Quartermaster Batt alion to DLA Energy; Domesti c Commercial JetA Demonstrati on with the Air Force; 

assumpti on of bulk fuel operati ons for the Air Force’s Air Educati on and Training Command, Air Force Space Command 

and Air Force Global Strike Command contracts; implementati on of U.S. Pacifi c Command storage and distributi on 

study recommendati ons in the Philippines and Singapore; supply chain improvement eff orts for U.S. Central command, 

U.S. Northern Command and PACOM; and the Global Fuel Reducti on Study. 

 The inventory accountability division serves as the focal point for the worldwide inventory of all DoD-owned fuel in 

storage unti l it is issued to the end user. It is responsible for capitalizati on, inventory accountability and reconciliati on, 

gain/loss control program management, inventory variance analysis, development of inventory management policy 

and guidance, inventory management controls and auditability of DoD's petroleum inventory. Four branches support 

this division: accountability and analysis, policy and compliance, accountability support and reconciliati on. The team is 

currently working to expand inventory metrics to the level of military services, reduce the defense working capital fund 

inventory losses aboard Naval vessels, expand the compliance inspecti on program to incorporate sub-region offi ces 

and provide assistance to other Inspector General teams and conduct a business case analysis on quanti ty determinati on to include a comparison between DLA Energy policies and procedures and commercial best practi ces.

 The sustainment, restorati on and modernizati on division was created in October 2010 to manage the substanti al growth in the SRM program in fi scal years 2011-2015. The division is responsible for sustainment, restorati on and 

modernizati on eff orts impacti ng the bulk petroleum supply chain. Three branches support the division: project management and oversight, program analysis and master planning and centrally-managed programs. Current projects and 

initi ati ves include executi ng the increased SRM funding levels and assisti ng in the development of the Enterprise Business System external portal. 

 The DFSP support division provides Business Systems Modernizati on-Energy base-level applicati on support to 

DFSPs and fuel customers from point of sale to enterprise level. This is done through training, remediati on and interface with users and partners, such as supply points, military services, etc. The division encompasses two branches: 

base level BSM-E support and retail integrati on support. The DFSP support team is currently working on aligning the 

Fuels Management Defense confi gurati on with DLA Energy’s convergence of the BSM-E system to the DLA’s Enterprise 

Business System and providing greater training opportuniti es to DFSP personnel. 

 For further informati on on DFSP Management or any of the divisions within the business unit, visit 

www.energy.dla.mil.
14 www.energy.dla.mil

By Jose Maniwang

Quality and Technical Support offi ce 

Air Force testi ng jet fuel.

Courtesy Photo

The Defense Logisti cs Agency Energy Quality and Technical Support offi ce leads the way in ensuring that the quality 

of the Defense Department’s energy products is never compromised. 

 “Whether it is jet fuel for operati ons in Iraq and Afghanistan, F76 for humanitarian missions to Haiti or Japan, or 

helium for an aerostat hovering over Kabul, DLA Energy’s quality assurance and product technology professionals are 

essenti al components of the supply chain,” said Pam Serino, director of Quality and Technical Support.

 It begins before the fi rst drop of a fuel is refi ned. Military and commercial specifi cati ons and standards are the basis for all of DLA Energy’s procurement acti ons. The validati on and applicati on of these key requirements are the core 

functi ons of DLA Energy Quality and Technical Support chemists. DLA Energy is the lead standardizati on acti vity for 

all assigned federal supply class products, in order to ensure that products DLA Energy procures fully meet customer 

needs. 

Quality: our top priority 
Energy Source l Nov./Dec. 2011 15

 The organizati on comprises three supporti ng divisions—quality operati ons, product technology and 

standardizati on, and quality research. Each division provides key support to other DLA Energy organizati ons, 

customers, suppliers and industry partners, as well as parti cipates in numerous domesti c and internati onal 

organizati ons and forums to ensure the unfailing quality of DLA Energy’s crucial commoditi es.

 The quality operati ons division acts as the principal adviser and assistant to the director of Quality and 

Technical Support for developing, monitoring, coordinati ng, publishing and implementi ng quality policies and 

programs for DLA Energy supplied commoditi es. It provides quality assurance and surveillance support to the 

DoD and other civilian agencies, as defi ned in inter-service support agreements and directi ves. The division 

provides formal quality policy and guidance for more than 100 quality assurance representati ves worldwide, 

in additi on to providing standards for quality assurance and surveillance of DLA Energy’s energy products. 

The QARs act as the eyes and ears of the Department of Defense quality community for energy products, and 

provide a single face to the supplier and the warfi ghter.

 The product technology and standardizati on division acts as the principal technical adviser and assistant 

to the Quality and Technical Support director for technical matt ers on petroleum, missile fuels, coal and related products and services. The division represents DLA Energy at industry standardizati on groups to ensure 

that product specifi cati on changes do not adversely impact end-user applicati ons. The team reviews and 

approves all cataloging changes for both petroleum and aerospace energy products, and serves as the lead 

standardizati on acti vity for petroleum products in the DoD. As part of the procurement process, the division 

plays a pivotal role in developing and maintaining specifi cati on and measurement contract clauses; evaluati ng 

pre-award surveys; evaluati ng excepti ons, deviati ons and waivers; and providing technical support to resolve 

fuel chemistry-related issues in producti on, delivery and storage systems. 

 The division also maintains the Petroleum Quality Informati on System database and publishes the annual 

PQIS report, the most comprehensive fuel quality data publicati on in the world. Additi onally, the team manages numerous fuel-related projects and studies such as the Fatt y Acid Methyl Ester cross contaminati on project, 

the JP8 +100 program, the JetA initi ati ve and the Aviati on Fuel Anti oxidant study. These projects address fuel 

quality issues in the distributi on system, lower procurement costs by qualifying new additi ves, and streamline 

military and commercial specifi cati ons. The division also represents DoD’s interests in such organizati ons as 

NATO, ASTM Internati onal, Internati onal Air Transport Associati on, Commercial Alternati ve Aviati on Fuel Initi ati ve and the American Petroleum Insti tute.

 The recently established quality research division is the science and technology arm of DLA Energy. The 

division seeks out research and development soluti ons for alternati ve and renewable energy initi ati ves to 

meet military services’ goals to reduce the usage of petroleum fuels and reduce DoD’s overall carbon footprint. In additi on, the division works to address existi ng and future mandates for energy independence and 

greenhouse gas reducti on within DoD and the federal government through studies and programs designed to 

provide DLA Energy with informati on and data to eff ecti vely respond and comply. New and developing technologies involving unique and conventi onal fuels are rapidly evolving, and it falls to this division to coordinate 

the necessary technical experti se, guidance and leadership to help in incorporati ng them to meet DoD’s future 

energy needs. 

 “The alternati ve fuels and renewable energy mission is expanding rapidly as DoD looks for ways to reduce 

our dependence on foreign oil and meet energy goals established by the federal government and the military 

services. This team is essenti al to that mission and also enhances and supports our overall organizati on,” said 

Dan Jennings, deputy director of Quality and Technical Support.

 In fi scal 2010, Quality and Technical Support was instrumental in DLA Energy meeti ng several key objecti ves. DLA Energy signed a strategic alliance with the Air Transport Associati on of America, Inc. in March 2010 

in Washington, D.C., recognizing an important partnership for the development and deployment of alternati ve aviati on fuels. This alliance highlights the shared goals of DoD and the major U.S. airlines to advance the 

development and deployment of commercially viable, environmentally friendly, alternati ve aviati on fuels. 

DLA Energy developed an acquisiti on strategy for emerging free-on-board desti nati on tanker procurements, 

revised the product quality and inspecti on requirements for bunker requests for proposals. 

Conti nued on page 22.
16 www.energy.dla.mil

Small Business office 

employs matchmaking, 

other techniques 

By Joan Turrisi

DLA Energy Small Business offi ce

Behind the scenes of the Defense Logisti cs Agency Energy’s warfi ghter support is its Small Business offi ce, advising 

DLA Energy’s leadership and contracti ng community in an eff ort to contract as much of that support to small business 

as possible. To achieve that goal, the offi ce’s professionals fi eld daily calls, host meeti ngs with small businesses and 

contracti ng representati ves and conduct or att end various small business outreach events.

 DLA Energy is assigned the following goals for fi scal 2011: 33 percent for small business, or SB; 1 percent for small 

disadvantaged business, or SDB; .5 percent for service-disabled veteran-owned small business, or SDVOSB; 1 percent 

for women-owned small business, or WOSB; and 4 percent for historically underuti lized business zone small 

business, or HUBZone.

 In fi scal 2010, DLA Energy exceeded its goals in the categories of SB, SDB and WOSB, but fell short in the remaining 

categories. Small Business representati ves met with several SDVOSB fi rms expressing interest in multi ple DLA Energy 

contract programs and contacted dozens of potenti al HUBZone fi rms in an eff ort to encourage certifi cati on for those 

that meet all criteria. Further outreach eff orts are ongoing to reach competent fi rms in under-represented categories.

 Outreach events typically require DLA Energy Small Business representati ves to parti cipate in one-on-one matchmaking sessions and formal presentati ons in conference open sessions. Matchmaking sessions are back-to-back 

15-minute sessions reminiscent of modern “speed-dati ng.” The Small Business offi ce provides succinct DLA descripti ons of DLA Energy programs and receives capability statements from potenti al suppliers. More in-depth follow-on 

sessions are held with the more promising prospects. If suppliers’ capabiliti es fi t more suitably with another DLA 

center, the representati ve advises generally and refers those suppliers to that center’s Small Business offi ce for more 

detailed guidance. 

 Where small businesses are not able to contract directly with the federal government, they can sti ll parti cipate 

in government contracti ng 

via subcontracts and mentor/protégé arrangements. 

Large businesses doing 

business with the federal 

government are required to 

have a subcontracti ng plan 

that describes their eff orts 

to contract with small businesses. DLA Energy’s Small 

Business offi ce monitors 

large business adherence 

with those plans via annual 

program reviews, providing 

small business leads where 

possible.

Courtesy graphic
Energy Source l Nov./Dec. 2011 17

DLA Energy Europe and Africa 

keeps energy flowing 

By Air Force Maj. Rob Lyon

DLA Energy Europe and Africa 

Defense Logisti cs Agency Energy Europe and Africa recently welcomed a new commander. Army Col. Robert 

Weaver, who assumed command in June and will conti nue to ensure fuel support to 21 major U.S. military installati ons, 

67 U.S. bulk fuel storage and distributi on centers and fi ve major fuel pipeline systems from Greenland to Eastern Russia.

 The region comprises 104 countries and nearly 56 million square miles. Additi onally, the organizati on will provide 

energy soluti ons to approximately 80 annually-planned exercises across Europe and Africa. 

 Europe and Africa provides comprehensive energy soluti ons to U.S. forces in three combatant command areas of 

responsibility – Europe, Africa and Northern Iraq – ensuring uninterrupted sustainment of the energy requirements in 

those regions. 

 In additi on to sustaining day-to-day operati ons in Europe and Africa, an astounding feat in its own right, Col. 

Weaver’s team partners with DLA Energy Middle East in support of a major operati on outside its area of responsibility. 

The region provided millions of gallons of petroleum products to Iraq from Turkey in support of operati ons, meeti ng all 

requirements 100 percent of the ti me. 

Sustaining operations and extending expertise

 The Europe and Africa offi ce meets the challenge with a team of 77 fuels professionals operati ng from 18 locati ons 

in six countries. They are a diverse group, which is one of the organizati on’s key strengths. The team includes 21 military 

members from all services, 52 Department of Defense civilians and 12 foreign nati onals whose local knowledge and language skills are indispensable. The headquarters is co-located with other DLA regional offi ces in and around Kaiserslautern, Germany. Liaison offi cers live and work directly with counterparts at NATO, U.S. European Command, U.S. Africa 

Command, U.S. Air Forces in Europe, U.S. Army Europe, U.S. Naval Forces Europe and the Army’s 21st Theater Sustainment Command. They are inti mately involved in planning, problem solving and customer support.

 The 40-person operati ons division runs a seven-day-a-week operati ons center, including joint-billeted fi eld-grade 

offi cers from each service who plan, problem solve and manage daily acti viti es, parti cipati ng in exercises and operati ons 

throughout the region. Inventory and transportati on branches track and transport products; and the auditability branch 

works closely with defense fuel support points to monitor and resolve fuel accounti ng issues, and ensure the government’s multi million dollar inventory of fuel in the region is properly managed and accounted for.

 The region’s internati onal agreements branch is a team of three. The primary duti es of the Europe and Africa 

internati onal agreements team are the management, negoti ati on and monitoring of internati onal fuel agreements. 

Internati onal agreements manages fuel exchange agreements, which support the exchange of fuel with NATO and other 

partner nati ons, facility support agreements for the operati ons and maintenance of pipeline and storage faciliti es and 

direct bill arrangements. The internati onal agreements team also manages a $50 million-plus budget for the use, service 

and care of fi ve major fuel pipelines, four regional pipelines and storage faciliti es, which support all major bases in the 

region. 

 Since 2005, 11 fuel exchange agreements have been put into place, allowing partner nati ons to issue fuel to each 

other without immediate billing and use semi-annual accounti ng to determine whether the exchanges were equal or 

whether a nati on owes payment for the diff erence. These FEAs account for 90 percent of all sales to foreign military in 

Europe. Of the 42 worldwide DLA Energy fuel related agreements, 22 (more than 50 percent) of the agreements are in 

the EUCOM area of responsibility and managed by the Europe and Africa’s internati onal agreements team with assistance from the country specifi c liaison offi cers. 

 Twenty-three professionals make up the quality division. Eight are located at the petroleum laboratory in Kaiserslautern and the rest are assigned to either the northern or southern quality assurance fi eld teams, which have eight 

offi ces located throughout Belgium, Germany, Italy, Spain, Turkey and the U.K. Quality assurance specialists are crucial 

to strong customer service and quality product and services within Europe & Africa’s region.
18 www.energy.dla.mil

 The operati ons tempo is most visible 

within the quality division, where in fi scal 

2010 QASs travelled 30-40 percent of the ti me, 

racking up nearly 1,700 travel days performing 

their core functi ons of contract quality assurance on procured products and quality surveillance of DLA-owned products. These functi ons 

include oversight on specifi cati on analysis of 

products as well as storage and transportati on 

systems to ensure customers receive on-specifi cati on fuels. The QASs assure quality on all 

products procured, shipped, stored or issued 

to U.S. forces in Europe, Africa, former Soviet 

bloc nati ons, the Balkans and Turkey. This also 

includes overseeing testi ng both at DoD and 

commercial laboratories, conducti ng inspecti ons at more than 85 commercial sites in 104 

countries where U.S. aircraft and ships procure 

fuel. Laboratory personnel processed more 

than 1,270 samples in fi scal 2010, in additi on 

to providing hands-on training to requesti ng 

local military service personnel and regular 

rotati ons of soldiers deploying to Kosovo.

Optimization and Mediterranean 

sustainment

 A major focus for DLA Energy Europe and 

Africa was the implementati on of the U.S. 

Army Europe opti mizati on initi ati ve. This project was initi ated at the request of the military 

service to develop best-fi t soluti ons for the effi -

cient operati on and maintenance of petroleum 

storage and distributi on systems for the Army 

in Europe. Opti mizati on allowed USAREUR to 

reduce fuels manning at all of its faciliti es last 

year. During the executi on of this contract, 37 

fuel faciliti es were transferred to the contractor, including a combinati on of retail and bulk 

loading faciliti es. The only remaining functi on 

to transfer to the contractor is the aircraft cold refueling mission at the six Army air fi elds, which should be completed 

in the next few months. 

Challenges of fueling Africa

 Africa presents a whole new challenge – limited infrastructure, shortage of reliable suppliers who can provide fuel 

in the quanti ty and quality required and a growing requirement for fuel. Europe & Africa oversees one defense fuel 

support point on the conti nent – DFSP Djibouti /Camp Lemonnier. It is a storage and distributi on point for JP8, JetA1 

and JP5 jet aviati on fuels and F76 marine diesel. It supports military-to-military training and exercises with 53 countries 

and is a major supplier for marine interdicti on or anti -piracy missions. DLA Energy relies heavily on into-plane contracts 

fueling mission at the six Army air fields which should be completed
Energy Source l Nov./Dec. 2011 19

to meet the demand in Africa. 

These contracts allow U.S. government aircraft to be refueled at 

commercial airports. There are currently 29 commercial airports in 27 

African nati ons where U.S. forces 

can purchase fuel at a standard 

price and where DLA Energy quality 

assurance representati ves have 

quality oversight. U.S. forces can 

also purchase marine fuel from 10 

bunker contracts on the conti nent. 

DLA Energy’s Ships’ bunker Easy Access Card Open Market® program 

enables electronic purchases at 162 

more ports.

 In fi scal 2011, DLA Energy 

established into-truck contract line 

items, or CLINs, for the majority of 

into-plane contracts in Africa. With 

very litt le DoD-owned fuel stocks 

on the conti nent, these additi onal 

CLINs provide more fl exible opti ons 

to load and transport jet fuel across 

the conti nent. 

 To eliminate costly air sustainment of cryogenics, DLA Energy 

is soliciti ng for a liquid oxygen 

contract and an aviati on gasoline 

contract to support Camp Lemonnier. Additi onally, DLA Energy 

established a fuel testi ng services 

contract with SGS Services at Horizon Depot to support Camp Lemonnier’s fuel test requirements. Lastly, 

post, camps and stati ons contracts 

that were previously awarded for 

one year are now being solicited for 

three years to support the enduring 

nature of operati ons. 

The NIZ GLOC challenge

 DLA Energy’s Europe and Africa is responsible for the delivery of fuel to bases in the CENTCOM AOR, making daily 

coordinati on with EUCOM and CENTCOM essenti al to success.

 Whether it is negoti ati ng agreements, accounti ng for product and fi nances or ensuring fuels for the warfi ghter 

meet all quality specifi cati ons, the Europe and Africa team conti nues to be hard at work, 24-7, ensuring the energy 

keeps fl owing to America’s vital operati ons in the region. 

A U.S. Marine Corps light-armored vehicle from Weapons Company, Battalion landing team, 3rd Battalion, 2nd Marine Regiment, 22nd Marine 

Expeditionary Unit (MEU) assaults the beach from a U.S. Navy landing craft utility from Assault Craft Unit 2 during an amphibious assault demonstration conducted as part of Exercise Bright Star 2009 in Alexandria, Egypt, Oct. 12, 2009. Th is multinational exercise is designed to improve 

readiness, interoperability and the professional relationships among U.S. Egyptian and participating forces. Elements of the 22nd MEU are participating in the multinational exercise while serving as the theater reserve force for U.S. Central 

Command. (U.S. Marine Corps photo by Staff Sgt. Matt Epright/Released)
20 www.energy.dla.mil

DLA Energy Middle East embraces 

change while supporting the

warfighter By Holly DeYoung

DLA Energy Middle East 

While personnel may come and go, the mission and the associated challenges for Defense Logisti cs Agency 

Energy Middle East generally remain the same. 

 Recent changes include a new commander for DLA Energy Middle East—Army Col. William Rush. Another change 

is related to work force development. In previous years, the regional command, headquartered in Bahrain, was staff ed 

more like a long deployment rather than a permanent assignment. But, that has changed. As a result of restructuring 

the organizati on, DLA Energy Middle East has added 21 new positi ons in the past year. 

 “Although we have a lot of new personnel, and ti me is spent getti ng them in-processed and up-to-speed, the additi onal staff have brought with them a wealth of knowledge that can serve us well for years to come,” said the region’s 

deputy director Ron Black. “Tour lengths are now typically a minimum of two years, which allows for conti nuity and 

career growth. In any career fi eld at DLA Energy, this is the fastest-paced environment in which to gain hands-on experience.”

 The region provides 24-hour support to the warfi ghter. The mission: to provide fuel management support through 

a robust petroleum network, strategically dispersed bulk petroleum faciliti es and multi ple support arrangements that 

enable component commanders to execute combat operati ons in the U.S. Central Command’s area of responsibility. 

The unit supports all Defense Department organizati ons in the AOR, including Operati ons Enduring Freedom and New 

Dawn and the anti -piracy mission off the coast of Africa.

 DLA Energy Middle East comprises three sub-regions, each led by a military commander and several support 

services secti ons. Organizing the structure geographically ensures each area receives the proper focus and all lanes are 

covered, instead of just focusing on the issue of the moment, Black explained.

 DLA Energy Middle East also employs liaison offi cers to CENTCOM headquarters at MacDill Air Force Base, Fla.; and 

liaisons with the conti ngency support teams in Bagram, Afghanistan; Kabul, Afghanistan; Iraq; and NATO’s Allied Joint 

Force Command Headquarters at Brunssum, Netherlands, in support of the Internati onal Security Assistance Force mission in Afghanistan.

 Col. Rush praised the team, explaining that “while we deal with some unique challenges like diffi cult terrain, poor 

infrastructure, extreme weather, hosti le acti viti es and then the ‘Arab Spring’ events in our own backyard, our personnel 

and contractors perform superbly in an extremely harsh environment.”

 As the U.S. forces draw down in Iraq, 

DLA Energy Middle East is adapti ng 

and has been working through the 

transiti on of mission leads from Department of Defense to Department 

of State. However, in support of OEF 

in Afghanistan, the mission conti nues 

to expand with an increase in the 

locati ons requiring fuel support and 

demand for diff erent types of fuel. In 

the past year, DLA Energy Middle East 

has added direct delivery to four forward operati ng bases and two helium 

trans-fi ll faciliti es. 

 “The Northeast sub-region faces the 

challenges of delivering fuel to some 

20 www.energy d.la.mil

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Energy Source l Nov./Dec. 2011 21

of the most diffi cult locati ons under some of the harshest conditi ons you can imagine, yet day in and day out DLA Energy Middle East delivers,” said Air Force Capt. Shannon Caleb, the new Northeast sub-region commander.

 The region is also enhancing warfi ghter support capabiliti es by working with other DLA acti viti es based in Bahrain 

to eventually relocate their faciliti es into one centralized area. In embracing the “We Are DLA” initi ati ve, DLA Energy 

Middle East is acti vely pursuing the DLA one store-front concept. DLA Energy Middle East personnel will eventually be 

co-located with DLA Distributi on, DLA Dispositi on, mapping and troop support personnel. 

 Black cited offi ce space constraints on Naval Support Acti vity Bahrain and the drawdown of forces in Kuwait as the 

two primary factors in pursuing the change in future faciliti es. 

 “As U.S. forces reduce the size of their footprint in Kuwait, and operati onal missions may change over ti me, Bahrain will naturally remain the enduring site for operati ons throughout the Middle East,” he conti nued. “It really makes 

sense for DLA as a whole to combine resources and uti lize a strategic plan for the future.”

By Krista Ludwigsen

DLA Energy Pacifi c

The waves conti nue to roll and break for the 80 employees working for the 

Defense Logisti cs Agency Energy Pacifi c. The workforce supports an area of 

responsibility spanning 15 ti me zones and covering 52 percent of the Earth’s 

surface.

 DLA Energy Pacifi c provides fuel support for military operati ons throughout 

the Pacifi c region while ensuring uninterrupted and ti mely support of quality bulk 

fuel to military service components and operati onal joint task forces in support of 

U.S. Pacifi c Command missions. 

 The scope of the theater is staggering. It is nearly 60 percent of the world’s 

populati on, living within 43 countries. 

 DLA Energy Pacifi c solves some of these challenges by storing fuel at 67 defense fuel support points positi oned throughout the area of responsibility. These 

DFSPs can hold and store a variety of products, with total storage capacity of 

more than 1 billion gallons. The organizati on averages 500 million gallons of sales 

in the Pacifi c each year. 

 Because the majority of military installati ons in the Pacifi c are island-based, 

there are unique challenges to getti ng fuel to warfi ghters at remote outposts. 

 "The breadth and complexity of the Pacifi c theater can be overwhelming, but 

fortunately, DLA Energy Pacifi c, our teammates at DLA Energy headquarters and 

our military service partners are dedicated, adapti ve professionals whose only 

concern is providing warfi ghter support in the most eff ecti ve, effi cient means 

possible,” said Navy Capt. Kevin Henderson, DLA Energy Pacifi c commander. “With fuel, your goal is to never spill it, 

never lose it, and never run out of it. This team conti nues to meet those goals in spectacular fashion." 

 To bett er serve customers in such an expansive theater and the multi ple ti me zones, DLA Energy Pacifi c has fi ve 

fi eld offi ces in additi on to the DLA Energy Pacifi c headquarters offi ce. Field offi ces are located in Alaska, Guam/Singapore, Hawaii, Japan and Korea. 

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t l f hi "

U.S. Army Soldiers assigned to the 3rd Combat Aviation Brigade, 3rd Infantry Division refuel a 

CH-47D Chinook helicopter at Forward Operation Base Fenty, Afghanistan, Dec. 17, 2009. (U.S. 

Army photo by Sgt. Teddy Wade/Released) On page 20.

DLA Energy Pacific: rolling on

Energy Source l Nov /Dec 2011 21

U.S. Navy Operations Specialist 3rd Class John Fay keeps tension on a line on the fantail of the 

aircraft carrier USS John C. Stennis (CVN 74) in the Pacifi c Ocean June 3, 2011. (U.S. Navy photo 

by Mass Communication Specialist Petty Offi cer 3rd Class Benjamin Crossley/Released)
22 www.energy.dla.mil

Supporti ng conti ngencies and operati ons, like humanitarian and disaster-relief support, places additi onal 

pressure on the DLA Energy supply chain. These types of 

extra operati ons also require DLA Energy Pacifi c to work 

closely with USPACOM and service component planners 

to ensure success. 

 Once requirements are fi nalized by the military 

services, they are submitt ed to service control points and 

DLA Energy Pacifi c for contract executi on.

 “DLA Energy has provided support to many disasterrelief operati ons—the most recent of course being Operati on Tomadachi, which occurred aft er the devastati ng 

earthquake and tsunami in Japan,” explained Army Lt. Col. 

James Stearns, operati ons offi cer for DLA Energy Pacifi c. 

DLA Energy Pacifi c also provides fuel and personnel support during major fi eld training exercises such 

as Cobra Gold, an exercise with Thailand to enhance 

joint interoperability and tacti cal operati onal readiness; 

Balikatan, conducted in the Philippines where traditi onal 

and non-traditi onal threat scenarios are exercised; Key 

Resolve – Foal Eagle, an exercise designed to improve 

combat readiness and joint/combined interoperability 

in Korea; Ulchi Freedom Guardian, the venue for facilitati ng Korea Command/Republic of Korea Joint Forces 

Command, command transformati on, also in Korea; 

and Terminal Fury, which occurs across the theater and 

focuses on defusing a crisis while setti ng conditi ons for 

success should deterrence fail. 

Thanks in part to emerging technology and steady 

growth in the energy arena, the organizati on has also 

expanded its role in supplying alternati ve fuels and 

renewable energy. 

DLA Energy Pacifi c conti nues cooperati on with the 

state of Hawaii and USPACOM to further military applicati ons of alternati ve fuels and renewable energy at 

the annual Asia Pacifi c Clean Energy Summit and Expo 

and other venues. The Alternati ve Fuels and Renewable 

Energy offi ce has also had a hand in getti ng the fi rst E85 

fuel dispensing stati on to Hawaii. The organizati on conti nues to provide support to Defense Department goals, 

which include reducing carbon footprint and dependence 

on foreign oil. 

There are many communicati on challenges in the 

Pacifi c region. Among them, DLA Energy contends with 

extreme diversity within all the stakeholders in the fuel 

business, multi ple ti me zones and the internati onal 

dateline – which, while easy to calculate, does impede on 

day-to-day acti viti es. DLA Energy Pacifi c plays a key role in 

these processes. 

 “Working through these challenges to provide energy 

support and meet the warfi ghter’s evolving needs in such 

a vast region may seem daunti ng, but it’s all in a day’s 

work for the DLA Energy Pacifi c team,” Henderson said.

Conti nued from page 15

“The Quality and 

Technical Support team is essenti al 

to ensuring the fuels DLA Energy 

procures for the warfi ghter and 

other federal customers 

will conti nue to be 

on-specifi cati on to support mission 

readiness no 

matt er what type of fuel the 

warfi ghter requires,” said Serino.

Quality: our top priority 

DoD photo of Naval 

personel fueling 

aircraft .

 DLA Energy awarded contracts to evaluate new 

technology using bacteria to convert biomass waste to 

fuel and upscale it from laboratory applicati on into a prototype mobile unit for use at forward operati ng locati ons. 

It also awarded contracts to fulfi ll the Army’s requirement 

for hydrotreated renewable JP8, called HRJ8, for testi ng 

at the Southwest Research Insti tute, San Antonio, and the 

Tank and Automoti ve Research Development and Engineering Center in Warren, Mich., with volumes exceeding 

34,000 gallons.

 In support of the services’ testi ng, certifi cati on and 

alternati ve fuels goals for drop-in replacement fuels, DLA 

Energy conti nuously conducts a variety of research and 

development studies to advance the state of knowledge 

involving the intricacies of alternati ve fuel and renewable 

energy development and the potenti al for operati onal 

usage. 
Energy Source l Nov./Dec. 2011 23

Conti nue on next page.

Fuel bladders at the Quartermaster Liquid Logistics Exercise held this year at 

Fort Pickett, Va., June 4-17. Th e bladders were used for military planning and 

training exercises; this particular fuel bladders depicting DLA Energy fuel 

procured specifi cally for QLLEX 2011. 

DLA Energy fuel LA Energy fuel 

makes liquids akes liquids 

exercise possible xercise possible 
24 www.energy.dla.mil

Defense Logisti cs Agency Energy Commander Navy Rear Adm. Kurt Kunkel and DLA 

Energy Americas Commander Army Col. Bill Keyes are briefed on fuel truck fi lling at 

the Quartermaster Liquid Logisti cs Exercise held this year at Fort Pickett , Va., June 4-17. 

Photo by Susan Lowe.

D f L i ti AEC d N R Ad K K k l d DLA

By Susan Lowe 

DLA Energy Public Aff airs

Defense Logisti cs Agency Energy Commander Navy Rear Adm. Kurt Kunkel, who passed away Sept. 28, 2011, and 

DLA Energy Americas Commander Army Col. Bill Keyes observed the Quartermaster Liquid Logisti cs Exercise June 10 at 

Fort Pickett , Va.

 QLLEX, which began in 1980 and was originally known as the Petroleum, Oil and Lubricants Exercise, is the largest 

Army-wide petroleum and water transportati on exercise conducted in the conti nental United States. Water storage 

and distributi on became part of the exercise in 1993, and its name was changed to QLLEX in 2004.

 All of the fuel used in the nati onwide exercise was procured by DLA Energy. The QLLEX locati ons included San Pedro, Calif., Fort Huachuca, Ariz., Forts AP Hill, Eusti s and Pickett , Va., Fort Bragg, N.C., and Fort Dix, N.J. Six defense fuel 

support points across the country parti cipated in this year’s exercise.
Energy Source l Nov./Dec. 2011 25

 The goal of the exercise, held this year June 4-17, is to give the U.S. Army Reserves the opportunity to train with 

its strategic partners to support real-world fuel and water requirements. Parti cipants load fuel, in this case, DLA 

Energy-procured JP8, into Army trucks at DFSPs and transport it to various locati ons, be it a fuel system support point 

or a DLA Energy customer. 

 Nati onwide, the exercise involved approximately 2,100 U.S. Army Reserve soldiers and 200 Army tank trucks, 

which replaced DLA Energy-contracted truck carriers during the exercise. They delivered more than 3.5 million gallons 

of fuel to 40 DLA Energy customers.

 “Putti ng DLA Energy-owned fuel into Army trucks that will be delivered to an Air Force base is the true defi niti on 

of a joint partnership, and that’s what is happening during this exercise,” Kunkel said. “We are working together with 

our strategic partners, and that makes us more eff ecti ve and effi cient as we meet the energy needs of our customers.” 

 Kunkel went on to say that without the fuel provided by DLA Energy, there would not be a training exercise of this 

magnitude that mirrors realisti c world situati ons. 

 “QLLEX provides hands-on experience by allowing soldiers to move real fuel in real situati ons. Training like this is 

priceless,” he said.

 While the contracti ng offi cers and specialists located at Fort Belvoir, Va., procured the necessary fuel, personnel 

at DLA Energy Americas played a major role in the exercise by working closely with the 475th Quartermaster Group to 

coordinate mission requirements and complete quality inspecti on of the fuel that was loaded into the Army trucks for 

distributi on. DLA Energy Americas also partnered with the DLA Joint Reserve Force to develop an annual training plan 

for U.S. Army Reservists who parti cipate in the annual training. The goal is to enhance the ability of DLA Energy and 

the Army Reservists to respond eff ecti vely and effi ciently to either man-made or natural conti ngency scenarios.

 "QLLEX provides great training for these soldiers and for our personnel as well," Keyes said. “The soldiers work 

directly with the fuel, and our quality assurance representati ves test the fuel to make sure it’s on specifi cati on. Our 

QARs are tough; just like in real life situati ons, if the fuel is not on spec and on grade, it doesn’t get loaded into the 

trucks; it doesn’t go anywhere unti l it’s right.”

 Kunkel, along with DLA Energy strategic partners’ senior leaders, was briefed on the U.S. Army Forces Command’s 

Petroleum Training Module that provides petroleum and engineering units with realisti c, hands-on training on the 

installati on, operati on, maintenance, disassembly, cleaning and storing of the major Inland Petroleum Distributi on System components. 

 “This kind of technical training isn’t found anyplace 

else,” Keyes said. “Soldiers have the opportunity to work 

on pipelines, just like they will when they are deployed.”

 Aft er the IPDS briefi ng, Kunkel and the others traveled to the QLLEX training site and received a briefi ng at 

one of the fuel storage bladder faciliti es. Each bladder 

holds 210,000 gallons of fuel, and troops are trained to 

set up, fi ll, drain and move the bladders to any locati on 

they might be needed. 

 “The great thing about this exercise is once the 

Army reservists are trained and know how to handle 

our fuel, they are ready to support DLA Energy in any 

fuel related mission,” Kunkel said. “Having well trained 

resources available to us in theatre or here in the U.S. 

during a natural disaster allows us to provide energy 

support whenever it’s needed. That is what makes QLLEX so important and we are proud to be a part of it,” 

Kunkel added. 

Defense Logisti cs Agency Energy Commander Navy Rear Adm. Kurt Kunkel is briefed via a sand table 

at the Quartermaster Liquid Logisti cs Exercise held this year at Fort Pickett , Va., June 4-17. Sand tables 

have been used for military planning and training exercises; this parti cular sand table included fuel 

bladders depicti ng DLA Energy fuel procured specifi cally for QLLEX 2011. Photo by Susan Lowe. 
26 www.energy.dla.mil

DLA Energy delivers LA Energy delivers Trains, trucks and barges bring coal rains, trucks and barges bring coal

In an era when the Defense Logisti cs Agency Energy is 

beginning to be known as much for experti se in alternati ve fuels and renewable energy as it is for uti liti es and 

petroleum-based fuels, 

coal may seem like an 

anachronism. But DLA 

Energy sti ll supports 

customers—including 

the U.S. Congress—

who rely on coal and 

natural gas for their 

daily energy needs.

 Coal, the most abundant energy product in 

North America, is used 

by both Department 

of Defense and federal civilian customers, 

according to Charles 

Tiggs, chief of the DLA 

Energy Installati on 

Energy business unit’s 

coal division.

 “We support three 

installati ons in Alaska and nine in the lower 48 states, 

including Marine Corps Air Stati on Cherry Point, N.C., 

the Joint Systems Manufacturing Center in Lima, Ohio, 

and the Capital Power Plant, in Washington, D.C., which 

provides coal to the U.S. Congress, as an alternate power 

source,” Tiggs explained.

 Tiggs said coal delivery methods are unique and 

someti mes challenging. The required specifi cati ons are 

diff erent for each installati on depending on the age and 

conditi on of the installati on’s boiler system.

 “We use trains, barges and trucks to transport coal 

to our customers, someti mes just one, or two, but someti mes all three methods for one shipment, depending on 

what the customer needs and the parti culars of that locati on,” Tiggs said.

 Coal originates at the mine. It can be stockpiled for 

direct truck delivery, loaded directly onto 100-ton hopper 

bott om railcars or sent via rail or truck to a barge loading facility where it is transported via barge to a terminal, 

offl oaded and delivered to the installati on by truck. All 

deliveries are free-on-board desti nati on.

 Alaskan customers receive their coal directly from the 

mine via rail. 

 If special conditi oning is required—such as a spray to 

suppress coal dust, called “fi nes,” or one to pre-treat the 

coal for freezing conditi ons like those at the Naval facility in Indian Head, Md.,—it is usually applied at a railroad 

docking stati on as the coal is transferred to another railcar 

or to a barge. It can also be applied to stockpiled coal.

 “Delivery is someti mes challenging,” Tiggs said. “For 

instance, if you have fl ooding, you have force majeure 

conditi ons [unforeseeable circumstances that prevent 

fulfi llment of a contract] that impact delivery. And rail 

shipments rely on cars and rails that require constant 

maintenance by the railroads. This occasionally impacts 

the ti meliness of deliveries.” 

 “In additi on, coal is unique, in that specifi cati ons may 

vary depending on where the coal is mined. As a result, 

the coal division is oft en executi ng contract modifi cati ons,” he explained.

 “We plan ahead for conti ngencies to ensure customers don’t go without, even if the delivery comes a litt le 

later than expected,” Tiggs added.

 DLA Energy is always looking ahead for ways to meet 

customers’ future energy needs, and the coal division is 

no excepti on, Tiggs said. A request for proposals for biocoal to support three U.S. Coast Guard locati ons in Alaska 

was issued in July. And, discussions are underway with the 

Army, as well, he said.

 Tiggs said two alternati ve coal choices are available: bio-coal, which is a combinati on of coal and wood 

blended through a thermal process, and biomass, which 

is 100 percent wood pellets. Bio-coal can be burned in 

existi ng faciliti es with no retooling, he said. But biomass, 

which may be desirable because it burns cleaner, requires 

retooling and refitti ng of boilers and power plants and 

produces fewer BTUs than the other opti ons, he explained.

By Susan Declercq Brown

DLA Energy Public Aff airs

Courtsey Photo from stock photos
Energy Source l Nov./Dec. 2011 27

When employees at the Defense Logisti cs Agency 

Energy’s Aerospace Energy offi ces in San Antonio say they 

launch mission success, they’re not exaggerati ng.

 The unit provides rocket fuel, propellants and related 

products such as lift ing gasses like helium, to Department 

of Defense, NASA and commercial space industry customers. 

 Supporters of the U.S. Space Shutt le program, the 

Aerospace Energy team recently celebrated the bitt ersweet landing of the shutt le Atlanti s on July 21, the fi nal 

fl ight in the Space Shutt le program. The delicate docking and detaching maneuvers conducted in zero gravity 

during the fi nal mission were made possible by products 

procured by the team. 

 “We are sad to see it reti red, but we look forward 

to conti nuing support to NASA on its other programs,” 

explained Sharon Murphy, director of Aerospace Energy. 

“We will also conti nue to support U.S. Air Force launches 

and our commercial customers’ launches and space programs.” 

 Aerospace Energy is unique within the federal energy 

community. First, no one else procures the same commoditi es, all of which are hazardous materials. And the 

organizati on procures these products for commercial enti -

ti es and universiti es as well as the warfi ghter, as authorized by the Commercial Space Launch Act. 

 “Our delivery system is also unique within DLA Energy,” explained Charlene Smoot, a logisti cs management 

specialist who handles new business opportuniti es for the 

Aerospace Energy business unit. “Transportati on management is a huge part of what we do.” 

 That’s because the organizati on rarely makes regularly scheduled deliveries; instead they deliver just in ti me 

for space launches or special programs. And, because 

all of their commoditi es are hazardous materials, which 

require a variety of specialized transport and handling requirements, they manage unique transportati on requirements for more than half their shipments. As a result, 

they also own a lot of specialized containers, unique trailers and transportati on and storage equipment to support 

their unique products.

 Aerospace Energy’s transportati on management specialists must ensure carriers have the right certifi cati ons, 

licenses, background checks and the like. They must also 

ensure carriers are properly equipped for and following 

special transportati on requirements for the products and 

programs they are supporti ng. These can include satellite 

tracking, escorts and dual drivers so the vehicle does not 

stop along the route, Smoot explained.

 More than half of the deliveries are accomplished 

free-on-board desti nati on, including more regular delivery 

schedules for products such as cryogenics like bulk liquid 

oxygen and bulk liquid nitrogen. The rest are FOB origin. 

 “And, about half of our deliveries are made directly 

to commercial customers, many on behalf of the government, under the Commercial Space Launch Act, which 

was designed to spur space program development,” 

Smoot added.

 Smoot said bulk helium provides an excellent example of how warfi ghter needs shape how products are 

delivered.

DLA Energy delivers LA Energy delivers Unique group launches mission success ique group launches mission success

By Susan Declercq Brown

DLA Energy Public Aff airs

A E ’ ti

U.S. Army Sgt. 

Kenneth Arnold, 

and Spc. Donald 

Neeley, both 

Aerostat blimp 

operators with B 

Troop, Regimental Troop 

Squadron, 278th 

Armored Cavalry 

Regiment, 103rd 

Sustainment 

Command 

(Expeditionary), 

launch the blimp 

at Contingency 

Operating Base 

Taji, Iraq, June 28, 

2010. (U.S. Army 

photo by Cpl. 

Rich Barkemeyer/

Released)
28 www.energy.dla.mil

 “For the warfi ghter overseas, we 

have an amazing pipeline in place for getti ng bulk helium in place. And, as a result, 

aerostats lift ed by that helium are helping 

to save lives over Iraq and Afghanistan,” 

she said. “We work closely with U.S. Central Command and the DLA Energy Middle 

East offi ces to ensure our warfi ghters 

have the helium they need.”

 As the requirements for helium conti nue to grow, Aerospace Energy’s helium 

team keeps pace by maintaining a steady 

stream of specialized equipment and 

helium fl owing to the U.S. CENTCOM area 

of responsibility.

 “We have used some very unique 

methods of transportati on to get suffi cient quantiti es of helium where and 

when it is needed, including just about 

every method you can think of—air, land 

and sea,” Smoot explained. Responsiveness to the warfi ghter oft en requires innovati on, she added. 

 “Several years ago, as the need for 

bulk helium was growing rapidly, we designed a high-pressure cylinder assembly 

that could be sling-loaded on helicopters 

to ensure the warfi ghter access to bulk 

helium in remote locati ons. We also took 

on old trailers and equipment from across 

DoD, refurbished them quickly, and at a signifi cant savings, because they were air-lift able.” she said.

 Other commoditi es also require special treatment, 

so managing containers, retesti ng for certifi cati on and 

keeping up with policies for testi ng, certifi cati on and 

shipping is a big job, she said. 

 “Everything we ship is HAZMAT—everything,” 

Smoot said.

Some special transportati on requirements for commoditi es include:

• Hydrazine is used for steering satellites in space, 

combined with dinitrogen tetroxied as a bi-propellant in 

space, and also used in a diff erent grade as a starter in 

the F-16 jet fi ghter’s backup system. It requires satellite 

tracking and dual driver.

• N2O4 is dinitrogen tetroxide. It is combined with 

hydrazine for thrusters. It requires specialized escort in 

bulk quanti tes along with tracking .

• RP-1 rocket propellant kerosene is used in Delta II 

and Atlas V rockets for military and commercial missions. 

In additi on to other requirements, Aerospace Energy must 

ensure carriers have the right kind of equipment so the 

materials don’t react with the product. JP10 missile propellant for Tomahawk and Harpoon missiles is managed 

like RP-1. And cancellati ons, postponements and locati on 

changes are common.

 “The program and launch schedules aff ect how and 

when we deliver,” Smoot added. “It keeps things interesting at our end, watching the fi nal landing of the space 

shutt le made me proud to be a part of such an amazing 

historical program. I’m glad we were part of what made it 

happen.”

The Defense Logisti cs Agency Energy Aerospace Energy supports 

space programs like Space XLaunch. (Courtesy Photo)
Energy Source l Nov./Dec. 2011 29

DLA Energy delivers LA Energy delivers

Global storage and distribution obal storage and distribution network fuels forces network fuels forces By Susan Declercq Brown

DLA Energy Public Aff airs

The Defense Logisti cs Agency Energy begins opti mizing delivery of military specifi cati on fuels to the warfi ghter long 

before the actual rubber hits the road.

 From the ti me the military services submit their long-range fuel requirements and the service control points collaborate with DLA Energy’s regional offi ces and demand planning group to determine how much fuel to purchase for 

a specifi c period, DLA Energy is already studying the best way to deliver the fuel to each customer, said Linda Barnett , 

chief of Inventory and Distributi on Management in the supply chain operati ons division of DLA Energy’s Defense Fuel 

Support Point Management business unit. 

 “The supply chain operati ons division is responsible for all acti viti es that impact the supply chain operati onally, 

from faciliti es management, inventory and distributi on, including transportati on, acquiring contractor faciliti es and the 

development of requirements,” explained Tracy Keenan, the division chief. 

 So, the division is providing the necessary oversight to ensure best soluti ons and ensuring infrastructure is available to support those soluti ons, she said.

 It’s a big job, said Keenan. Eighty-nine 

percent of DLA Energy’s business is in bulk 

petroleum, and the organizati on is authorized a worldwide bulk fuel inventory of 

59.9 million barrels at any given ti me. The 

business unit procures military specifi cati on 

fuel, such as F76 marine diesel, JP5 marine 

aviati on fuel, JP8 jet fuel and associated 

additi ves and lubricants. It oversees more 

than 600 DFSPs worldwide and manages 

a $580 million plus transportati on budget, 

Keenan explained.

 The organizati on uses opti ons called 

“nodes and arcs,” as part of a linear-modal 

computer program called the BID Evaluati on Model, to determine the opti mal distributi on method for each customer. Nodes 

and arcs are all the possible fuel sources 

and delivery modes, or combinati ons of 

modes, that could meet the customer’s 

requirements. These could include, truck, 

rail, pipeline, barge or ocean tanker and may be direct from the supplier or from another defense fuel support point.

 “We do the business case analysis for our customers,” Keenan explained. “And, depending on the size of the military program we’re supporti ng, there could be hundreds of thousands of nodes and arcs to evaluate.” 

 “More nodes and arcs help us fi nd a supply chain soluti on that gives us bett er opti ons to bring the product to the 

customer at opti mal cost.” Barnett said. She observed that the warfi ghter generally doesn’t care how the fuel arrives as 

long as it is there-on-specifi cati on, when it is needed. 

 “Meeti ng the customer’s requirements with the most cost-eff ecti ve soluti on helps keep the standard price [which 

includes transportati on costs] down.” Barnett conti nued “So, we look at the business end to ensure good stewardship; 

and we let the warfi ghter focus on the operati onal mission.”

Courtesy Photo
30 www.energy.dla.mil

 The BID Evaluati on Model also helps the DLA Energy 

team weigh the pros and cons of free-on-board desti nati on contracts and FOB origin contracts for each desti nati on.

 “More nodes and arcs create more competiti on and 

fl exibility,” she stressed.

 Keenan explained that the business case analysis 

might indicate it is more economical to inject required 

additi ves at a fi nal desti nati on rather than deliver the fuel 

already additi zed, for instance. 

 “Or we may decide to build a truck rack at an installati on to enable it to become a distributi on hub for other 

installati ons because that will be more cost-eff ecti ve for 

DoD. Our military constructi on and Sustainment, Restorati on and Modernizati on teams will have to invest capital 

to build that capability—but we do it because it’s the right 

thing to do,” Keenan said. 

 DLA Energy’s regional offi ces schedule and manage 

delivery via all but ocean tanker. Keenan’s team handles 

the tanker shipments and manages all the transportati on 

funds.

 “I don’t think you hear a lot about that [the team’s 

work to fi nd the opti mal soluti ons]. It’s the squeaky wheel 

that gets the att enti on—and we’re not squeaky,” Barnett 

said. 

 “We just work in concert to create these effi ciencies 

and build them into our soluti ons. When customers get 

their fuel, it’s on-spec and on-ti me. And, that’s what they 

care about. They don’t know all the stuff we did to get it 

there. It looks to easy to them because we always meet 

the requirements. Our supply chain doesn’t squeak,” Barnett conti nued.

 Keenan concurred. “In a nutshell, the capability we 

bring to the warfi ghter is supply chain experti se and 

knowledge from the point of manufacturing right down to 

the end customer—delivered right to the warfi ghter.”

h l dl l hl h

Courtesy Photo DLA Energy LA Energy delivers elivers

By Susan Declercq Brown

DLA Energy Public Aff airs

Whether it’s heati ng oil for base housing, or marine 

and jet fuel at unfamiliar ports, when the warfi ghter or 

other Defense Logisti cs Agency Energy customers require 

commercial specifi cati on fuels delivered directly from the 

vendor to them, DLA Energy’s Direct Delivery Fuel business unit makes it happen.

 The business unit provides fuel and services through 

two contracti ng teams: posts, camps and stati ons; and 

into-plane and bunker. In additi on, the team procures fuel 

and transport services to supply U.S. forces in Operati on 

Enduring Freedom and other conti ngency operati ons. 

 The Defense Department receives 82 percent of the 

fuel procured by Direct Delivery. Thirty-one other federal 

agencies, including the Departments of State, Interior, 

Justi ce, Energy, Commerce, Agriculture and Transportati on, as well as NASA, The General Services Administrati on 

and the Postal Service, consti tute the remainder. Direct 

Delivery procured 2.85 billion gallons of fuel in fi scal year 

2010 and supported nearly 4,200 customer line items.

 “Through PC&S, we support the day-to-day operati ons for the warfi ghter at the home stati on,” said Kathryn 

Fantasia, director of Direct Delivery Fuels. “We provide 

heati ng oil, diesel fuel, motor gasoline and a host of 

other products that fuel heati ng systems, generators and 

ground vehicles.”

 For example, at Andrews Air Force Base, Md., DLA Energy could be providing heati ng oil to keep base housing 

and workplaces warm and burner oil that keeps generators running to provide electricity and light in the buildings. Direct Delivery also procures gasohol; ethanol-based 

alternati ve fuels; automoti ve diesel; biodiesel; kerosene; 

jet fuels JA1, JetA and TS1; aviati on gasoline; and intermediate fuel oils all for direct delivery from the vendor to the 

customer.

 Though most fuel procured through this program is 

commercial specifi cati on, the business unit also arranges 

for delivery of military specifi cati on JP5 and JP8 jet fuels 

to some remote Air Force and Navy locati ons, added David Peterson, deputy director of Direct Delivery Fuels.

 Into-plane and bunker contracts make commercial 

jet and marine fuel available through airport and seaport 

vendors worldwide. 

 “We provide a refueling opti on when there is no military stati on or defense fuel support point available where 
Energy Source l Nov./Dec. 2011 31

ships can pick up F76. That’s absolutely criti cal when a 

mission changes or where there is no military or DFSP opti on,” Fantasia explained. 

 There are 494 into-plane faciliti es and 152 bunker 

faciliti es available worldwide. Fantasia said Direct Delivery 

provides the only fuel support available to U.S. forces in 

South America, Africa and Eastern Europe. Aircrews and 

supply offi cers can use the Aviati on Into-plane Reimbursement Card, known as AIR Card®, or Ships’ bunkers Easy 

Acquisiti on Card, known as SEA Card®, to purchase the 

fuel. The card programs are managed by another directorate of DLA Energy. 

 The business unit also procures all of the fuel for U.S. 

forces in Afghanistan because of the team’s experti se in 

contracti ng for delivery services. Those fuel procurements 

are a substanti al part of the organizati on’s annual purchase for fi scal 2010, and requirements have grown this 

year, Peterson said.

 The Direct Delivery team also procures fuel for 

exercise, conti ngency operati ons and humanitarian relief 

eff orts worldwide. Supporti ng exercises in Africa and 

Romania, for instance, also helps DoD develop a supplier 

base in regions where there is a shortage of qualifi ed suppliers and limited infrastructure to support fuel deliveries, 

Fantasia explained. 

 “It is criti cal to providing opti ons in the region,” she 

added.

 The business unit is also called upon to provide support to humanitarian relief eff orts. 

 “Most, if not all, humanitarian support comes 

through Direct Delivery,” Fantasia said.

 They provide the contract for fuel support to the 

Federal Emergency Management Agency, and were most 

recently instrumental in providing crucial fuel availability 

to the humanitarian eff orts in Haiti and Japan. 

 To procure for the PC&S contracts, Direct Delivery 

divides the United States into customer organized groups. 

Customers are organized into groups based on shared 

potenti al vendors and the size and number of customer 

line items, Fantasia explained. Ten to 30 contracts are 

awarded from each COG, during one solicitati on to award 

cycle, she said. There are six COGs.

 “Customers benefi t from our customer-focused 

organizati on and purchasing programs because we can 

provide savings and effi ciencies by combining customers 

to purchase as one unit—and the DLA Energy teams have 

experti se in the parti cular market from which the COG’s 

suppliers are drawn,” Peterson explained.

 To manage the COGs, Direct Delivery is divided into 

fi ve divisions. One division handles all the into-plane, 

bunkers and fuel card contracts. Four others handle the 

PC&S contracts, which are mostly for ground fuel, and 

support of one or more of the combatant commands. 

 Division I handles COG 3, which includes Maryland, 

Virginia, West Virginia, Tennessee, Kentucky, Ohio and 

Indiana; Alaska and Hawaii are also handled by this 

division, which also supports the domesti c unifi ed commands. Division II handles COGs 6, 7, 8 and Puerto Rico, 

as well as the U.S. Europe & Africa Commands. That 

includes Michigan, Illinois, Wisconsin, Minnesota, Iowa 

and all states west of there. Division III handles COGs 2 

and 4, which include Delaware, Pennsylvania and states 

north of there; Missouri, Arkansas, Louisiana, Mississippi, 

Alabama, Florida, Georgia, and the Carolinas. This division also supports U.S. Southern and Pacifi c Commands’ 

requirements.

“There are significant 

challenges associated with the 

volume of fuel required, political 

situations, import taxes, extreme 

weather conditions, religious 

holidays, insurgent activity—not 

to mention the general wartime 

environment. And the deliveries 

are free-on-board destination, 

so there is a risk associated with 

that,” said Kathryn Fantasia.

Keeping the home fi eeping the home fires burning res burning 

and expanding global reach nd expanding global reach 
32 www.energy.dla.mil

 Division IV is devoted to supporti ng the U.S. Central 

Command’s requirements, including the responsibility for 

fueling nearly all U.S. forces requirements in Afghanistan. 

 Fantasia said providing uninterrupted fuel support to 

Afghanistan, a landlocked country with no fuel resources 

of its own, is her organizati on’s biggest challenge, but also 

its most signifi cant achievement. 

 “There are signifi cant challenges associated with the 

volume of fuel required, politi cal situati ons, import taxes, 

extreme weather conditi ons, religious holidays, insurgent 

acti vity—not to menti on the general warti me environment. And the deliveries are free-on-board desti nati on, 

so there is a risk associated with that,” she explained. 

“We’re extremely proud of delivering uninterrupted support to the warfi ghter despite those challenges.”

 Peterson said transiti oning from DoD lead responsibility in Iraq to State Department lead also creates some 

challenges to maintain fuel support in the changing 

environment. “Then there is Africa,” he said delineati ng 

the challenges faced there. “Part of the challenge there 

is fi nding quality suppliers—quality of fuel and delivery. 

Africa has very, very litt le infrastructure to support our requirements, and we and our contractors someti mes have 

to get very creati ve to get fuel to remote areas where it 

is needed for exercises. Our work here is crucial though, 

as every new opti on we create brings more fl exibility and 

accessibility to the warfi ghter in this region.”

 Supporti ng global requirements also demands 

dedicati on from the Direct Delivery team, Fantasia said. 

Because of ti me zones diff erences, for instance 10 hours 

diff erence for Kyrgystan and eight hours for the Middle 

East region, and the 24-hour nature of humanitarian and 

conti ngency operati ons, someti mes employees have to 

work from home in order to be available at the right ti me 

on the other side of the world, she explained. 

DLA Energy LA Energy delivers delivers

By Susan Declercq Brown

DLA Energy Public Aff airs

Agreements with foreign partner nati ons help the 

Defense Logisti cs Agency Energy expand the warfi ghter’s 

access to fuel worldwide.

 “Internati onal agreements give the warfi ghter 

essenti al access to fuel, fuel infrastructure and delivery 

services around the globe that would not be available 

any other way,” said David Alexander, chief of the global 

support, internati onal agreements division of DLA Energy’s Bulk Petroleum business unit.

 DLA procures most fuels and services through 

numerous contracts, but government-to-government 

agreements provide additi onal fl exibility, Alexander 

explained.

 DLA Energy has 42 fuel agreements in place now 

and is working hand-in-hand with the organizati on’s regional offi ces and business units to establish an additi onal 15 new agreements. The oldest existi ng agreement 

has been in place for 40 years, the division chief said.

 There are three types of internati onal fuel agreements, and each brings something new to the table.

 Fuel exchange agreements are typically negoti -

ated under an overarching authority called acquisiti on 

cross-servicing agreement authority. The authority is 

delegated from the Assistant Secretary of Defense for 

Acquisiti on, Technology and Logisti cs through the Joint 

Chiefs of Staff and the combatant commands. 

 DLA Energy’s bilateral fuel agreements with coaliti on forces include countries such as Oman, the United 

Arab Emirates, Korea, Australia, the United Kingdom, 

Italy, France, Canada, Chile and others. They allow the 

military services from the U.S. and the partner nati on to 

draw fuel from each others’ inventories. FEA accounts 

are reconciled and sett led periodically by the DLA Energy 

fi nancial team in San Antonio.

Fuel bladder used in the Middle East. 

Photo by DLA Energy Middle East.

 “Because we have a worldwide reach, it’s not uncommon for our contracti ng offi cers or specialists to get 

up at midnight to parti cipate in a phone call to ensure a 

customer has the support he needs or to talk to a contractor to ensure the mission requirements are met,” Fantasia 

added. “That’s routi ne, business as usual, for us.”
Energy Source l Nov./Dec. 2011 33

 “These agreements come in very handy for the military services and enhance operati onal capabiliti es. And, they 

certainly provide the means for more of a single supply chain of fuel to support a coaliti on eff ort,” Alexander explained.

 Fuel support agreements can provide products, storage, port services, quality support and pipeline use. These are 

used when the infrastructure, systems and operati ons associated with the fuel use are owned and operated by foreign 

governments or coaliti ons, such as NATO. 

 “They provide us powerful capabiliti es worldwide—in Europe, the Pacifi c and the Middle East,” said Bruce Blank, 

director of the Bulk Petroleum business unit.

 For example, the Turkish/NATO Pipeline System enables DLA Energy to support U.S. European Command and U.S. 

Central Command operati ons. 

 The growing program is centrally managed within the Bulk Petroleum business unit, but DLA Energy’s regional offi ces and business units are an integral part of the agreement team, Alexander explained.

 “As the internati onal agreements program conti nues to expand, so does the warfi ghter’s global access to fuel,” 

Blank said.

Expanding global fuel access xpanding global fuel access 

 for the warfi for the warfi ghter Courtesy Photo
34 www.energy.dla.mil

We Are DLA e Are DLA

By Jonathan Stack 

Contributi ons to this arti cle by Christopher Goulait 

BJ h S k

Two DLA teams receive awards wo DLA teams receive awards 

for energy management or energy management

Two Defense Logisti cs Agency teams are being recognized for their eff orts to be more energy effi cient. 

 The DLA Energy Demand Response Team and the DLA Installati on Support at Columbus, Ohio Energy Management 

Team have been selected to receive 2011 Federal Energy Management Program awards from the Department of Energy. The two teams were recognized during Energy Awareness Month at an awards ceremony Oct. 12 and a luncheon 

Oct. 13 in Washington, D.C.

 DLA Energy’s Demand Response Team received the award for resolving a legal defi niti on issue that now allows 

Defense Department installati ons to accept fi nancial incenti ves for curbing their power use during periods of peak 

demand or when market prices fl uctuate. 

 As a result, the demand response program team has agreements for several installati ons to lower electricity demand below producti on capacity, according to the nominati on packet. The program provides additi onal power to help 

avoid rolling blackouts in installati ons’ communiti es and a fi nancial incenti ve for parti cipati ng installati ons.

 “Demand response is a mechanism used to manage customer consumpti on of electricity in response to prevailing 

supply conditi ons,” said Kevin Ahern, director of DLA Energy’s Installati on Energy business unit. “Under a demand response program, parti cipati ng customers are incenti vized to reduce their consumpti on during periods of peak demand 

or in response to market prices.”

 Ahern said customers who parti cipate in these programs have the opti on to curtail electricity consumpti on or use 

on-site generati on to reduce demands on the power grid. These customers are then compensated through credits on 

their uti lity bills. 

 “DLA Energy began supporti ng customer enrollment in these programs in 2008,” Ahern said. “In just under three 

years, total credits received by parti cipati ng customers now exceed $7.6 million.”

 “This award demonstrates the importance and eff ecti veness of demand response to effi cient power grid operati ons and recognizes the value to both Department of Defense and federal civilian agency customers not only in the 

economic benefi ts achieved but also in showing the federal government’s commitment to supporti ng the reliability of 

the power grid,” DLA Energy Acti ng Commander Patrick Dulin said.

 DLA Installati on Support’s Energy Management Team was recognized for energy savings that reached record levels 

in fi scal 2010, according to the nominati on packet. Energy consumpti on was reduced by seven percent, water consumpti on was reduced by 6.9 percent, vehicle fuel usage was reduced by 29 percent, and alternate fuels usage was 

increased by 68 percent versus their levels in fi scal 2009.

 “DLA's signifi cant progress over the last two years 

towards changing our understanding and involvement 

as sustainable stewards of our resources and faciliti es is 

evidenced by these two federal awards recognizing DLA's 

contributi ons,” said Marv Wenberg, DLA Installati on Support deputy director. 

 Across the agency, personal awareness and eff orts to 

shut off unused equipment, appliances and lights made an 

instant diff erence, Wenberg said. 

 “The benefi t when we reduce unnecessary use of 

energy and water is clear: increased funds and other resources to support DLA's missions,” he said.

The Defense Logisti cs Agency Energy Demand Response Team, 

consisti ng of, from left to right, Larry Frati s, Jezabel Aviles, Bob 

Knudson and Paul Hahn are recent recipients of the 2011 

Federal Energy Management Program awards from the 

Department of Energy. They were offi cially recognized in an 

October ceremony. (Photo by Christopher Goulait)

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i

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Energy Source l Nov./Dec. 2011 35

By Business Process Support directorate

EBS reaches S reaches Energy 

Convergence onvergence 

milestone ilestone

 The Defense Logisti cs Agency Energy achieved a major milestone with the Oct. 24 Enterprise Business System 

Energy Convergence Release 1. With this fi rst release, a porti on of DLA Energy aligned to EBS and began to organizati onally move DLA Energy to a single energy supply chain. 

 The EBS program modernizes and refi nes the agency’s supply chain management capabiliti es by replacing aging 

technology legacy systems, improving customer support and providing bett er access to DLA’s portf olio of business 

systems and processes. For DLA Energy, this is a signifi cant fi rst step and will greatly assist the non-petroleum business 

units and offi ces that had had no automated system support. 

 To positi on DLA Energy for EBS, its organizati onal structure must be aligned with the rest of DLA and the DLA 

organizati onal tenets. Moving specifi c customer and supplier facing entiti es to improve customer support, while also 

facilitati ng proper segregati on of duti es, was a vital part of the fi rst release. The initi al move to the new structure 

implemented with Release 1 in non-petroleum areas, with other business units to follow in Release 2. 

 Formal acti vity to make the reorganizati on offi cial is underway via the Enterprise Organizati onal Alignment Board. 

The full benefi t of this release will vary according to process areas, which are broken down into order fulfi llment 

(comprised of inventory management and order management), tech/quality, fi nance, planning, procurement and real 

property.

 EBS Energy Convergence Release 2 will bring in DLA Energy’s petroleum business and add new functi onality to 

EBS with SAP Oil and Gas and SAP Advanced Planning and Opti mizati on. Go-live dates are projected for October 2012 

for Release 2 and the fi rst quarter of fi scal year 2014 for Release 3. Over the course of the three Energy Convergence 

releases, all six EBS process areas will benefi t by the Energy Convergence implementati on. 

 In an August transiti on event for DLA Energy employees, DLA Energy Executi ve Director Michael Scott summarized 

his past experience with change eff orts.

 “Real magic happens when supervisors work closely with their employees, it’s important to keep the interacti on 

dialogue going,” Scott said.

 “The transiti on to Energy Convergence is designed to be an ongoing process between supervisors and their employees,” said Mike Broderick, director of DLA Energy Business Process Support.

 “That is why Energy Convergence is focusing on preparing our employees. EBS or any system is not magic, it’s the 

people who will make it work” Broderick said.

Pamela Griffi th and Kevin Ahern from the Installation Energy offi ce celebrate the Enterprise 

Business System Energy Convergence Release 1. (Photo by Christopher Goulait)
36 www.energy.dla.mil

We Are DLA e Are DLA

 “It is a tremendous accomplishment on the part of 

everyone to get to where we are today,” Broderick noted, 

in remembering being involved in the project from its 

program decision memorandum in December 2003 with a 

handful of other DLA Energy employees. 

 “DLA Energy has never had an automated procurement 

soluti on, so it will truly help to standardize our procurement functi on and fi t in well with the new supplier facing 

part of our new organizati onal structure,” Broderick conti nued, focusing on another highlight of the releases.

 While the Release 1 work carries on, work on Release 

2 is occurring on a parallel path, leading to improvements 

in the process with Release 2. The re-organizati on that was 

part of Release 1 positi oned DLA Energy for the additi onal 

re-org that will occur with Release 2, but now it will be a 

known commodity, Broderick said about the next steps DLA 

Energy will face. 

 “A great benefi t of Release 1 is getti ng the re-org done, 

this will make the move to new EBS positi on descripti ons 

for Release 2 people much easier” Broderick said. 

 He conti nued by menti oning Release 2 will be the more 

complicated release, involving a move from an existi ng 

legacy system and bringing in new industry soluti ons that 

must work with EBS, noti ng that the Energy Convergence 

team is already preparing for these challenges to have 

another successful release. 

A Closer look at the EBS Process 

areas:

• Order fulfi llment. Order fulfi llment consists 

of: 1) Order management: Acquiring and 

sati sfying customer orders and managing 

customer relati onships. 2) Inventory management: Managing inventories and delivering materials to meet customer needs. 

• Tech quality: Create and maintain material 

master technical data to include supplier 

informati on; supports the enti re supply chain with technical informati on and 

requirements.

• Finance: Defi ning and managing budgets, 

product pricing and operati ng costs.

• Planning: Understanding customer needs 

(demand) and resources available to 

meet needs (supply) and implementi ng 

acti ons to match them. Note: Most planning capabiliti es will not be implemented 

unti l Releases 2 and 3.

• Procurement: Identi fying and contracti ng 

with suppliers and obtaining their materials and services in accordance with customer needs.

• Real property: Supports the tracking and 

management of DLA’s assets through real 

estate reporti ng, facility maintenance and 

improvement projects. Note: Real property 

was not impacted by the EC Release 1 in 

October 2011; but will be impacted when 

the Real Property Increment 2 Project goes 

live in March 2012.
Energy Source l Nov./Dec. 2011 37

July 31, 1960 - Sept. 28, 2011

In Memoriam n Memoriam

On the morning of Sept. 28, aft er an 

11-month batt le with brain cancer, Navy Rear 

Adm. Kurt Kunkel, commander of Defense Logisti cs Agency Energy, Fort Belvoir, Va., passed 

away at home surrounded by his family. He 

was 51 years old.

 A nati ve of Warner Robins, Ga., Rear 

Adm. Kunkel graduated from the U.S. Naval 

Academy in 1982 and earned a Master of 

Science degree from the Naval Postgraduate School, Monterey, Calif., in 1992. He was 

a graduate of the U.S. Naval War College in 

Newport, R.I., the Joint Forces Staff College in 

Norfolk, Va., and completed the Columbia University Graduate School of Business Senior Executi ve Program.

 Kunkel served afl oat Supply Offi cer tours in Fighter Squadron 102 embarked in USS America (CV 66); the frigate 

USS McCandless; aircraft carriers USS George Washington and USS Harry S. Truman. His shore assignments included 

Naval Air Systems Command, Crystal City, Va.; Naval Aviati on Supply Offi ce, Philadelphia, Pa.; Supply Center (FISC), Norfolk, Va.; U.S. Atlanti c Fleet, Norfolk, Va.; U.S. 5th Fleet, Bahrain; the Joint Staff ; Offi ce of the Chief of Naval Operati ons; 

and as Commander, DLA Energy, Fort Belvoir, Va.

 “He consistently took on tough assignments and tough jobs ... and was a stand-out offi cer. ... I was truly impressed 

with everything I saw Kurt Kunkel do,” Defense Logisiti cs Agency Director, Navy Vice Adm. Alan S. Thompson, said.

 Services for Kunkel were held Oct. 19, at the Fort Myer Chapel, Arlington, Va., with full military honor burial at 

Arlington Cemetery immediately following. The Navy Supply Corps Foundati on has established a memorial scholarship fund in honor of RDML Kunkel. In lieu of fl owers, the family requested that donati ons be made to the Navy Supply 

Corps Foundati on. Further informati on can be found at www.usnscf.com/index.aspx. 

 “He was, at core, a man of excepti onal character and integrity. With a strong ethical compass he insti lled immense strength to the organizati on and all those who interacted with him. He demanded much from himself and from 

his example, we demanded much from ourselves,” DLA Energy acti ng commander, Patrick Dulin, said. “His legacy will 

live on in DLA Energy, in the services and in each of us.”

Along the shore I spy a ship

As she sets out to sea;

She spreads her sails and sniffs the breeze

And slips away from me.

I watch her fading image shrink,

As she moves on and on,

Until at last she’s but a speck,

Then someone says, “She’s gone.”

Gone where? Gone only from our sight

And from our farewell cries;

That ship will somewhere reappear

To other eager eyes.

Beyond the dim horizon’s rim

Resound the welcome drums,

And while we’re crying, “There she goes!”

They’re shouting, “Here she comes!”

We’re built to cruise for but a while

Upon this trackless sea

Until one day we sail away

Into infi nity.

The Ship of Life by John T. Baker

U.S. Army, 3rd Infantry Division, Old Guard 

at Arlington Cemetery pulling the casket of 

Navy Rear Adm. Kurt Kunkel. (Photo by 

Teodora Mocanu)