ENERGY RESILIENCY

Vandenberg Air Force Base gets 

environmentally-friendly upgrades

Maximizing fuel efficiency 

through cost avoidance

FUEL TANKERING

ENERGY

SOURCE

Defense Logistics Agency Energy Spring 2018

BOOSTING

THE FUTURE

Aerospace Energy supports 

next level space launch
2 www.dla.mil/energy

Commander

Air Force Brig. Gen. Martin Chapin

Deputy Commander

Guy C. Beougher

Chief of Staff

Army Col. Doug Henry

Public Affairs Officer

Irene Smith

Editor

Connie Braesch

Writing Staff

Connie Braesch

Elizabeth Stoeckmann

Kimberly Fritz

Layout/Design

Connie Braesch

Address correspondence to:

DLA Energy

8725 John J. Kingman Rd. Suite 4950

Fort Belvoir, VA 22060-6222

Commercial: 571-767-4108

Address email to:

EnergySourceMagazine@dla.mil

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

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

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

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

Source is prepared by desktop publishing applications. Photos not credited are 

courtesy of DLA Energy sources.

From the Commander

Brig. Gen. Martin Chapin, USAF

Defense Logistics Agency Energy

Energy Source

Front Cover: A United Launch Alliance V rocket stands ready to launch the Space Based Infrared Systems Geostationary-1 

satellite for U.S. Air Force from Cape Canaveral Air Force Station, 

Florida. Photo credit to United Launch Alliance.

Back Cover: DLA Energy Office of Small Business Programs. Graphic by Angela Shannon. 

From the Commander

Brig. Gen. Martin Chapin, USAF

Defense Logistics Agency Energy

Energy Team,

For the past two years, I have had the honor to serve 

as your commander. You have opened my eyes to all 

the incredible things DLA Energy does to support our 

nation. Around the globe, you provide extensive energy 

expertise in the petroleum, aerospace, renewable energy, 

electricity and natural gas industries.

This Energy Source issue focuses on the ways DLA 

Energy supports all the lines of effort in the DLA 

Strategic Plan. DLA Energy Aerospace Energy’s cutting 

edge product line of missile fuels, liquid propellants and 

other bulk industrial chemicals and gases is the provider 

of choice for the Department of Defense and NASA, 

as well as private space launch companies like United 

Launch Alliance. 

Our dedication to effective supply chain management 

and improving efficiency is captured in the article, 

Fuel Tankering, which tells the story of an interagency 

collaboration to develop solutions to maximize fuel 

efficiency around the world.

The mission of this agency is and always will be about 

supporting the warfighter. While our mission gives us a 

name, it is you – the people of DLA Energy – who bring 

the mission to life, give it meaning and shape its future. 

Speaking of people, 

I encourage you to 

read about Bulk 

Petroleum Products 

Division Chief Chris 

Boeding’s experience 

while shadowing 

DLA Energy Deputy 

Commander Guy 

Beougher. 

As DLA’s Strategic Plan suggests, you are at the center of 

our ability to deliver results. Without you, DLA Energy 

could not tackle all the challenges, big and small, in the 

increasing complex operating environment. 

To that extent, I give my gratitude. I wish I could 

personally walk up to each and every one of you, look you 

in the eye, and say thank you. Thank you for taking pride 

in what you do every day.

While I will always look back fondly on my time here, 

it will be the great DLA Energy men and women I will 

remember the most. I will take all of your inspiration with 

me as I continue to serve our country. 

 THANK YOU!

From the Commander

Brig. Gen. Martin Chapin, USAF

Defense Logistics Agency Energy

Editor’s Note: Air Force Brig. Gen. Martin Chapin relinquished command to the DLA Energy Deputy Commander 

Guy Beougher May 1 until the new DLA Energy commander, Air Force. Brig. Gen. Albert G. Miller, arrives.
Energy Source l SPRING 2018 3

Investing in Future Leaders

 26 ...... Chris Boeding

FEATURES

4 Opening Doors 

 Customer relationship specialists are fueling new parterships across the federal government, helping agencies capitalize on DLA Energy’s 

 supply chain expertise and economies of scale.

6 Boosting the Future 

 DLA Energy Aerospace Energy supports the next level of space 

 launches with reliable, quality sources of propellant.

12 Energy Resiliency 

 Vandenberg Air Force Base in California gets environmentally-friendly 

 upgrades including a 180-acre solar energy facility and unique 

 water-saving equipment. 

16 Fuel Tankering 

 U.S. Transportation Command and DLA Energy maximize fuel 

 efficiency through an innovative cost avoidance initiative. 

20 “Fueling” Relationships 

Warfighters rely on the coordination of many competing demands, but 

 fuel shouldn’t be one of them. DLA Energy builds global alliances to 

 get U.S. forces fuel when and where they need it.

23 Powering up our Customers 

DLA Energy Installation Energy brings natural gas, electricity and 

 renewable energy solutions to whole of government. 

FEATURES

16

6

12
4 www.dla.mil/energy

Fueling relationships across the federal government 

OPENING DOORS

While the warfighter is the 

priority, non-Department of 

Defense partners can capitalize 

on Defense Logistics Agency 

Energy’s comprehensive supply 

chain network and economies of 

scale. 

Of the 160 million gallons of fuel Defense 

Logistics Agency Energy sold to over 800 federal 

agencies in fiscal year 2017, 58 million gallons 

was sold to the U.S. Coast Guard. U.S. Navy 

photo by Petty Officer 3rd Class Dana Legg.

 Offering its collective expertise 

to identify energy solutions, DLA 

Energy has an increasing number 

of non-DoD customers on its list.

 “We want to partner with 

federal agencies to support 

their fuel needs,” said DLA 

Energy Customer Relationship 

Management Division Chief 

Marc McConahy. “Because of our 

established processes and 

systems, we are an efficient 

and effective source.” 

 In fiscal year 2017, DLA 

Energy sold approximately 

160 million gallons of fuel 

to more than 800 federal 

agencies worldwide. 

Customers included the 

U.S. Coast Guard, Veterans 

Administration, Department 

of State, General Services 

Administration, National 

Park Service, Department of 

Agriculture, Department of 

Transportation and others. 

 A new, unique partnership 

became effective in fiscal 

year 2018 between DLA Energy 

and the NASA Wallops Island 

Flight Facility. 

 By examining DLA’s Enterprise 

Business System reports, the DLA 

Energy Customer Relationship 

Management team identified jet 

fuel use at NASA’s Wallops Flight 

Facility increased from 50,000 

gallons per year in 2012 to more 

than 500,000 gallons per year in 

2016. 

 “In our outreach with NASA, we 

discovered that fuel consumption 

at Wallops had gone up 88 

percent due to increased DoD 

use of the NASA facility,” 

McConahy said.

 The awareness of this stark 

increase prompted NASA to 

review their current vendor 

contract agreement and begin 

exploring new strategic alliances 

with DLA Energy. A collaborative 

team of NASA and DLA Energy 

members met to jointly examine 

the facility’s jet fuel supply 

chains, operational requirements 

By DLA Energy Public Affairs
Energy Source l SPRING 2018 5

and costs. The team’s objective 

was to identify the most costeffective supply solution that 

would meet both NASA and DoD 

mission requirements. 

 “We jointly concluded that 

purchasing fuel from a DLA 

Energy Defense Fuel Supply 

Point was the most cost-effective 

solution for both NASA and 

DoD,” McConahy said. “We will 

deliver 480,000 gallons of Jet 

A, saving half a million dollars 

in fiscal year 2018. This is a 

great example of how we can 

benefit the customer with proven 

processes to effectively provide 

for their needs and save money 

while doing it.”

 DLA Energy fuel agreements 

not only save the federal 

government money but also 

come in handy during a 

contingency.

 “During the 2017 hurricane 

season, some of our customers 

like the Transportation Security 

Administration and U.S. Customs 

and Border Protection were 

having difficulty getting fuel for 

storm response and recovery 

operations,” McConahy said. 

“Because we had an existing 

agreement with them, DLA 

Energy was able to supply them 

the fuel they needed.”

The Process

 The first step in partnering 

with a non-DoD customer is to 

ensure DLA Energy can help that 

agency fulfill its mission more 

efficiently and effectively. 

 DLA Energy managers meet 

with or contact counterparts 

from prospective customers 

and explain the services and 

expertise DLA Energy provides.

 “It requires close coordination 

with federal agencies to 

help them determine their 

requirements and ensure 

consistency,” said DLA Energy 

Customer Account Specialist 

Phillip Adams. “In some cases, 

the agency might not have 

visibility on fuel they are 

receiving. It’s our job to help 

them.”

 Next, DLA Energy creates a fuel 

purchase agreement with the 

potential customer.

 “Selling fuel to non-DoD 

agencies requires systems and 

procedures that are consistent, 

transparent and auditable, and 

it is up to the CRM Division to 

establish and monitor these 

agreements,” McConahy said. 

 As of April 2018, DLA Energy 

had completed 77 fuel purchase 

agreements supporting other 

U.S. government agencies.

 Once the agreement is in 

place, the DLA Energy Mobility 

Fuels Customer Support Division 

takes over to ensure a separation 

of duties.

 “We validate the customer’s 

requirements to ensure the 

resulting contract fully supports 

their needs throughout 

the process all the way to 

completion,” said MFCS Division 

Chief Tom Redford. “We also 

provide training to customers 

in the use of DLA’s auditable 

systems to order and provide 

government acceptance of fuel 

received.”

 New customers learn how 

to use the Enterprise External 

Business Portal and the Invoice, 

Receipt, Acceptance, and 

Property Transfer systems to 

place orders, accept fuel and 

make payments. 

 The automated system allows 

both parties to be in sync, 

Redford emphasized.

 McConahy explained that 

the transition from mailed 

invoices and agency paper check 

payments to electronic billing 

using the Intergovernmental 

Payment and Collection System 

improves the speed and accuracy 

of payments.

 “We know we’ve been fully 

successful when a federal 

agency can go into our systems 

and order fuel like they were 

ordering it online,” he said.

 While fuel is the largest 

commodity DLA Energy manages, 

the agency also manages 

coal, electricity, natural gas, 

renewable energy and aerospace 

products for federal partners. 

 Federal agencies seeking to 

do business with DLA Energy 

can contact the 24/7 DLA Energy 

Help Desk at 1-800-446-4950 or 

energy.helpdesk@dla.mil.

Marc McConahy, DLA Energy Customer Operations 

Directorate Customer Relationship Management 

Division chief, provides a brief about the 

benefits of using DLA Energy at General Services 

Administration’s FedFleet 2018 on Feb. 1. Photo by 

Kimberly Fritz. 
2 www.energy.dla.mil

BOOSTI

Before Neil Armstrong took “one giant 

leap for mankind” onto the moon July 20, 

1969, people have been in awe of our place 

in the universe. For decades, scientists and 

engineers have sought to reveal possibilities 

in what was thought impossible. 

 As space exploration enters a new phase 

An Atlas V rocket from United Launch Alliance lifts off from 

Cape Canaveral, Florida. DLA Energy provides propellants 

to ULA for commercial space launch. Photo Courtesy United 

Launch Alliance.

6 www.dla.mil/energy

By Connie Braesch
Energy Source l SPRING 2018 3

NG THE FUTURE

Energy Source l SPRING 2018 7

with the commercial space-launch industry sending 

larger, more efficient and reusable rockets into 

space, so does the need for reliable, quality 

sources of propellant. 

 As the Department of Defense Integrated 

Materiel Manager for space and space-related 

products since 2001, Defense Logistics Agency 

Energy has provided fuel sources for a variety of 

DoD, federal and commercial missions as well as 

research. 

Provider of Choice

 Averaging about 15 launches per year, DLA 

Energy Aerospace Energy powers the rockets 

carrying vital satellites and other spacecraft to 

improve communication, weather forecasting and 

knowledge of the solar system.

 While DoD and NASA are prominent DLA Energy 

customers, in recent years private space companies 

were added to Aerospace Energy’s customer list 

under the Commercial Space Launch Act. The CSLA 

was passed by Congress in the 1980s to encourage 

private industry to develop space-related 

technology. 

 “One benefit offered by the legislation 

was access to government infrastructure and 

resources, including the services DLA provides in 

managing and distributing the fuel and related 

products used for these activities,” said Ken 

Grams, director of DLA Energy Aerospace Energy 

Customer Operations. “With the emergence of 

several new launch/space companies in the last 

few years; the legislation is certainly achieving 

its goals.” 

 When the first privately built and funded 

spacecraft from Space Exploration Technologies, 

or SpaceX, connected with the International 

Space Station in May 2012, it used DLA Energy 

Aerospace Energy products to get there.

 Aerospace Energy also provides propellants 

for another commercial company, United Launch 

Alliance. ULA rocket launches carry DoD or NASA 

equipment, including a satellite used to detect 

ballistic missile launches and provide advance 
8 www.dla.mil/energy

warning of nuclear attacks; satellites 

designed to improve ground 

communications for U.S. forces on 

the move; and a satellite to study 

the Earth’s carbon dioxide levels and 

their effect on climate change.

 While the commercial space launch 

industry is gaining prominence, 

DLA Energy Aerospace Energy 

has a long history of supporting 

federal agencies like NASA, the 

National Oceanic and Atmospheric 

Administration and the National 

Weather Service (both agencies of 

the Department of Commerce).

 When NASA’s Orion deep-space 

capsule was launched in December 

2014 on a ULA Delta IV Heavy rocket, 

it carried Aerospace Energy products. 

It was the first mission since Apollo 

to carry a spacecraft built for humans 

to deep space. It was also the first 

time this next-generation spacecraft 

was tested against the challenges 

of space, and the first operational 

test of a heat shield strong enough 

to protect against 4,000-degree 

temperatures.

 In February 2015, Aerospace 

Energy provided the products for a 

joint NASA and NOAA mission that 

launched a SpaceX Falcon 9 rocket 

carrying the Deep Space Climate 

observatory satellites into space. 

The satellites, powered by Aerospace 

Energy hydrazine, serve as a NOAA 

weather platform to monitor the solar 

wind and provide early warning of 

geomagnetic storms that could affect 

satellites, communications and power 

grids.

 As NASA’s unmanned Juno 

spacecraft headed toward Jupiter in 

July 2016 on a ULA Atlas V rocket, it 

carried propellants provided by DLA 

Energy to help steer and maintain its 

position once in orbit, where it would 

remain the next 20 months.

 Aerospace Energy also helped 

NOAA launch a rocket carrying 

a satellite system to improve 

weather forecasting and detect 

climate patterns, help emergency 

managers respond to events and help 

communities recover from severe 

Workers wear hazardous materials suits and follow decontamination procedures around storms.

dinitrogen tetroxide or hydrazine at the Hypergol Storage Facility on Vandenberg Air Force Base, 

California. Hypergolic propellants spontaneously ignite when they come into contact with each 

other. Photo by Nutan Chada.
Energy Source l SPRING 2018 9

Galactic Gases

 While supplying products to

support space exploration isn’t 

rocket science, it does involve 

careful planning and complex 

supply-chain management. 

 In a car or airplane engine, 

fuel mixes with oxygen in the 

air to produce combustion. 

Rockets and satellites also rely 

on a fuel and an oxidizer, but 

because of the large quantities 

needed and because there is 

practically no oxygen in space, 

the satellites have to take the 

oxidizer with them or rely on 

a monopropellant grade of the 

fuel.

 “For instance, for boost you 

might have liquid hydrogen, 

which is the fuel, and liquid 

oxygen, which is the oxidizer,” 

Grams said. “It’s the combination 

of the two that causes the 

reaction to create the energy 

required to send the tonnage up 

into space.” 

 Grams added that the fuel of 

choice for satellites is hydrazine 

and the oxidizer is dinitrogen 

tetroxide, due to their stability 

and long shelf life. They’re 

know as hypergolic propellants, 

meaning that when they’re 

combined, they self-ignite. DLA 

Energy Aerospace Energy stores 

both.

 Of the 92 products DLA Energy 

Aerospace Energy provides, 11 

are specific to space missions: 

rocket propellant-1 and -2, 

hydrogen, oxygen, nitrogen, 

helium, gaseous nitrogen, 

dinitrogen tetroxide, hydrazine, 

methane and isopropyl alcohol.

 For example, when NASA 

launched a rocket carrying the 

New Horizons spacecraft bound 

for Pluto in January 2006, it 

carried a variety of Aerospace 

Energy products.

 The Lockheed Martin Atlas 

A DLA Energy Aerospace Energy contractor 

pulls a sample of rocket fuel out of the tank at 

Vandenberg Air Force Base, California, to send to 

the Air Force Petroleum Office’s fuel laboratory for 

testing. Photo by Nutan Chada. 

V rocket itself lifted off with 

more than 91,000 gallons of 

propellants, quickly reaching 

36,000 mph, more than 47 times 

the speed of sound. 

 Other chemicals onboard 

supported a variety of functions, 

according to the rocket’s 

manufacturer, Lockheed Martin. 

Liquid nitrogen was used to 

chill the gaseous helium, which 

cooled the rocket’s Centaur 

engine pumps. Gaseous helium 

pressurized propellant tanks, 

provided purges and operated 

valves. Gaseous nitrogen purged 

the various rocket compartments. 

Hydrazine helped position the 

spacecraft before separation 

and settled the fuel in the tank. 

Rocket propellant-1 and liquid 

oxygen powered the rocket’s RD180 engine in stage 1, and liquid 

oxygen and liquid hydrogen 

were used to power the Centaur 

engine in stage 2. 

 The rocket’s payload, the New 

Horizons spacecraft, also relied 

on DLA Energy Aerospace Energy 

fuels. Its onboard propulsion 

system required enough 

hydrazine to power a dozen 

1-pound thrusters for orientation 

and small maneuvering capability 

to complete its 10-plus-year 

mission.

 “It’s very important that the 

products meet the specification 

requirements,” Grams said. 

“Especially for the hydrazine and 

dinitrogen tetroxide that’s put 

in a satellite or a space probe. 

The last thing they want is for 

something to go wrong with the 

fuel so they can’t get the mission 

accomplished. So we have tight 

controls on the purity.”

 On July 14, 2015, nearly 10 

years after launch, New Horizon 

accomplished its mission and 

became the first spacecraft to fly 

by Pluto and its moon Charon, 

sending back high-resolution 

photographs of Pluto and 

Charon.

 “Quality assurance has to 

be exact due to the duration 

of the missions,” said Doug 

Smith, director of DLA Energy 

Aerospace Energy Supplier 

Operations. “Any little 

imperfection can horribly affect 

the mission. Because our controls 

are tight, this mission was a 
10 www.dla.mil/energy

Mike Miller (left) and Dan Lerma (right) from the DLA Energy Aerospace Energy Customer Operations team, along with a vendor, stand on top of the giant liquid 

nitrogen tank during a tour of the Gaseous Nitrogen Plant on Vandenberg Air Force Base, California. The nitrogen is converted from liquid to gas on site and 

pushed through a pipeline to the different space-launch complexes on the base. Photo by Nutan Chada.

big success. The New Horizons 

spacecraft traveled more than 

3 billion miles over almost 10 

years, fueled by our products. 

So that gives you an example 

of how important maintaining 

quality is.”

Getting the Goods

 From gathering customer 

requirements to procurement, 

transportation, storage and 

testing, DLA Energy Aerospace 

Energy is a one-stop shop for its 

customers, Smith said. 

 “We have quality assurance 

representatives at the DLA 

Energy regional offices 

worldwide who inspect the 

product. We have a team 

of chemists internal to DLA 

Energy who partner with both 

the Air Force Petroleum Labs 

at Vandenberg Air Force Base, 

California, and Kennedy Space 

Center [Cape Canaveral, Florida], 

as well as with the Air Force 

Research Labs. We manage the 

containers as well, so customers 

don’t have to go out and procure 

or manage their own. And we 

have a team of buyers and 

customer account specialists who 

know these products and are 

experts in them.”

 “We gather requirements and 

put them all together. If you buy 

more of something, you get more 

interest from industry, which in 

turn typically gets you a better 

price,” he said. 

 Getting the aerospace 

products efficiently from point 

A to B is part of managing 

the supply chain, and because 

these products are hazardous 

materials, safe handling is a top 

priority. 

 “Dinitrogen tetroxide and 

some of the hydrazine fuels are 

inhalation hazards, are corrosive 

and have a lot of different labels 

on them,” Grams said. “So the 

transportation side of it is not 

as straightforward as sending 

something via FedEx. You need 

dedicated drivers and in some 

cases dual drivers that are 

HAZMAT certified.”

 Smith and Grams don’t 

recall any safety problems in 

transporting these products. The 

closest call Smith can remember 

was when there were wildfires 

out near Vandenberg several 

years ago.

 “They dug trenches to protect 

the fuels, so it was a nonevent 

from a safety standpoint, due to 

all the hard work the folks did at 

Vandenberg,” he said.

 Finding efficient ways to get 
Energy Source l SPRING 2018 11

Ainsley Allen, lab chief for the Air Force Petroleum 

Office’s fuel laboratory at Vandenberg Air Force 

Base, California, receives samples for testing. The 

lab tests propellants and gases used on the rockets 

and analyzes them for contaminants and particles 

that could interfere with spacecraft operations. 

Photo by Army 1st Lt. Caitie Sweet.

these products to the customer 

also helps to keep the costs low. 

 “A lot of the products start 

out in the normal atmosphere 

as a gas, but we buy them as 

a liquid,” Smith said. “They’re 

usually hundreds of degrees 

below zero, but you get a lot 

more product if you get it in a 

liquid that you can turn into gas. 

And it’s a lot more efficient to 

move it that way too.”

 At Vandenberg, DLA Energy 

Aerospace Energy contracts a 

gaseous nitrogen plant where 

the product is converted from a 

liquid back to gas on-site.

 “The plant has pumps and 

vaporizers to convert the liquid 

to gas, pump it up to a high 

pressure and push it out via 

pipeline to the south base launch 

complexes,” Smith said. 

 Also on Vandenberg is a 

storage facility for hypergolic 

propellants.

 “The products we manage are 

specialized, and a lot of work 

goes into ensuring this supply 

chain runs smoothly,” Smith said. 

“Being a part of space missions 

as the logistics supplier for 

the propellants is something 

very special. The team isn’t just 

negotiating contracts, placing 

orders, managing inventory 

or creating transportation 

movements; they’re [also] 

impacting historic exploration 

and scientific discovery.”

The Future of

Space Propellants

 With DLA and its customers 

looking at ways to be more 

cost-effective and efficient, 

partnering during the research 

and development is important. 

 “Rocket scientists are always 

looking for a better, safer fuel,” 

Grams said. “We try to get 

involved in the early stages to 

help them develop specifications. 

We’re there at the front end to 

help them avoid issues that can 

arise in the procurement process 

at the tail end.”

 As a member of the Joint Army 

Navy NASA Air Force Interagency 

Propulsion Committee, DLA 

Energy Aerospace Energy 

promotes and facilitates the 

exchange of technical and 

programmatic information 

among the military, defense 

agencies, NASA, U.S. industry 

and academia to respond to 

current and future aerospace 

“ROCKET SCIENTISTS ARE ALWAYS LOOKING 

FOR A BETTER, SAFER FUEL” — KEN GRAMS

propulsion needs. 

 “We come together to 

make educated decisions on 

investment strategies inclusive of 

the propellants to support their 

projects,” Smith said. “Wherever 

space launch goes, we’re trying 

to position ourselves to support 

their needs.”

 Aerospace Energy is also 

partnering with the Air Force 

Research Labs looking for the 

fuel of the future, Smith said. 

It’s part of a group looking 

at cleaner aerospace energy 

products, as well as a satellite 

project that could use a “green” 

monopropellant.

 “It could be a replacement for 

hydrazine at some point,” Smith 

noted.

 As the desire to explore and 

challenge our limits pushes 

the boundaries of science, DLA 

Energy Aerospace Energy will 

be there, ensuring the agency’s 

whole-of-government partners 

have a reliable and high-quality 

source for their space fuels.

 While we might still think of 

movies like Star Wars, Alien, 

Interstellar and The Martian 

when we think about space 

travel, out-of-this-world 

space exploration isn’t just for 

Hollywood. 

This story first appeared in Loglines May/June 2018 issue.
12 www.dla.mil/energy

S olar panels stretch end to end 

spanning as far as the eye 

can see, absorbing sunlight and 

softly humming as they generate 

power on the 180-acre solar 

ENERGY 

RESILIENCY

energy facility at Vandenberg 

Air Force Base, California.

 The facility, dedicated 

during a ceremony April 10, is 

a joint effort between Defense 

Logistics Agency Energy, VAFB 

30th Space Wing, SunPower 

Corp. and the Air Force Civil 

Engineer Center.

 “We understand the 

importance of energy and 

the need for reliable and 

resilient power on our military 

installations,” said Frank 

Rechner, DLA Energy deputy 

director of Supplier Operations 

during the ceremony. “As of Jan. 

8, this direct-current solar array 

became fully operational and 

producing electricity. This is the 

largest Air Force solar project in 

which all the energy is consumed 

by the base.”

 DLA Energy Installation Energy 

is responsible for awarding the 

25-year contract for the new 

28-megawatt solar photovoltaic 

system that spans roughly 163 

football playing fields and 

generates enough electricity to 

meet approximately 35 percent 

of the base’s energy needs. 

 The facility is expected to 

provide 54,500 megawatt hours 

of energy annually – equivalent 

to offsetting carbon dioxide 

emissions from 8,600 cars 

By Connie Braesch

SUN POWER

Defense Logistics Agency Energy Installation Energy is responsible for awarding the 25-year contract for 

the new solar photovoltaic system that generates enough electricity to meet approximately 35 percent of 

Vandenberg Air Force Base’s energy needs. U.S. Air Force photo by Airman 1st Class Clayton Wear.

64,880 

SOLAR PANELS, 

28-MEGAWATTS 

OF POWER
Energy Source l SPRING 2018 13

Environmentally-friendly upgrades at Vandenberg Air Force Base

for one year according to the 

U.S. Environmental Protection 

Agency. 

 “A veteran in the solar 

industry with more than 30 

years in business, we were 

honored to serve as the solar 

advisor, designer and installer 

on this project,” said David 

McIlhenny, SunPower Vice 

President for Project Finance. 

“The Vandenberg Air Force 

Base project features our Oasis 

power plant technology, a fully 

integrated, modular solar power 

blocksystem engineered to 

optimize land use, and with a 

long-term contract for belowretail cost of power, we’re 

generating savings that can be 

redirected to other priorities on 

post over the long term.”

 The solar energy production 

facility is tied directly into the 

base’s power grid and is behind 

the meter so all solar energy 

generated is consumed on site. 

Vandenberg AFB will purchase 

the electricity generated under a 

25-year renewable energy supply 

agreement.

 Built on a former base housing 

site, the vacant land was a prime 

opportunity to implement a life 

cycle cost-effective renewable 

energy project that builds energy 

security and resiliency of the 

military base while at the same 

time saving taxpayer money. 

 “Being part of this multiSolar panels stretch across 180-acres, or roughly 163 football playing fields, at the new solar energy facility on Vandenberg Air Force Base, California. U.S. Air 

Force photo by Airman 1st Class Clayton Wear.

faceted project team supporting 

Vandenberg has been a 

significant step forward in 

executing other efforts across 

the Department of Defense,” 

Rechner said. “Together, as a 

team, we look forward to the 

supply and delivery of reliable 

and resilient solar power to 

Vandenberg Air Force Base for 

the next 25 years.”

 DLA Energy Installation Energy 

offers acquisition support for 

facility energy requirements such 

as coal, natural gas, electricity, 

renewable energy credit 

purchases, long-term renewable 

energy project development 

and other energy savings 

performance initiatives. 

“THIS IS THE LARGEST AIR FORCE SOLAR PROJECT IN WHICH ALL THE 

ENERGY IS CONSUMED BY THE BASE”

 — FRANK RECHNER 
14 www.dla.mil/energy

Seeing water go down the 

drain is one thing, but 

watching it gush down storm 

drains – especially in a drought – 

is another thing. 

 In an effort to conserve water 

on Vandenberg Air Force Base, 

California, Defense Logistics 

Agency Energy Utility Services 

awarded a 50-year performance 

contract to American Water 

Operations and Maintenance, Inc. 

for a Neutral Output Discharge 

Elimination System, or NO-DES, 

water main flushing system.

 “A typical potable drinking 

water main flushing system can 

waste about 22,500 gallons of 

water,” said Chris Wilkinson, 

president of NO-DES, Inc. “All 

but about 150 gallons emptied 

from water hoses at the end of 

the job are conserved with NODES.”

By Elizabeth Stoeckmann

 In contrast to standard 

industry practice of dumping 

water flushed from a potable 

system during annual cleaning, 

NO-DES uses a pump to circulate 

drinking water through the main 

pipes where it passes through 

a series of filters which remove 

sediment and particulate matter, 

including bio-film. The procedure 

also scours the pipes to reduce 

nitrification inducing deposits 

and improve water quality. 

 “This system not only cleans 

the water system pipes but also 

cleans and treats the drinking 

water so that it stays within 

the system,” said DLA Energy 

Contract Specialist Ralph Neely. 

“Due to critical water shortages 

in the state of California, this is 

superb water conservation for 

the Air Force and is a tool that 

demonstrates environmental 

leadership.”

 The innovative water 

conservation system is part of 

DLA Energy Utility Services’ 

efforts to privatize utilities 

on U.S. military bases to build 

energy security and resiliency 

while at the same time saving 

taxpayer money. 

 “Utilities privatization is 

a method by which military 

installations can obtain safe, 

reliable, technologically current 

and environmentally sound utility 

The Neutral Output Discharge Elimination System, NO-DES, truck is fully equipped with the controls, 

pumps, filters, hoses and necessary components to flush and filter a potable water system. Photo courtesy 

of NO-DES Inc. 

A UNIQUE 

WATER-SAVING 

TECHNIQUE

FLUSH ‘N’ FRESH

“THIS IS SUBERB WATER CONSERVATION FOR THE AIR FORCE AND 

IS A TOOL THAT DEMONSTRATES ENVIRONMENTAL LEADERSHIP.” 

 — RALPH NEELY
Energy Source l SPRING 2018 15

systems at a relatively lower cost 

than they would under continued 

government ownership,” said 

DLA Energy Utility Services 

Director Martha Gray. “In the 

privatization process, military 

installations shift from the role 

of owner operators to that of 

smart utility service customers.”

 Since the contract began at 

Vandenberg AFB June 1, 2016, 

AWO&M has utilized the NODES unit to clean 27.87 miles of 

waterlines saving approximately 

2.2 million gallons of water. 

 “Over the course of the 50-

year contract, this will provide 

considerable savings,” Neely 

said. “AWO&M is working with 

the base to expand the number 

Rust and calcium 

buildup is captured in 

the filtration system 

during NO-DES 

operations. Photo 

courtesy of NO-DES 

Inc. 

The control panel on the Neutral Output Discharge Elimination System, NO-DES, truck includes meters and gauges to 

monitor flow, filter loadings, water quality and system performance. Photo courtesy of NO-DES Inc. 

of connection points 

for the NO-DES to 

save even more water, 

improve water quality 

and keep the assets in 

tip-top condition.” 

 Although NO-DES 

is not a government 

requirement, it is a 

solution proposed by 

AWO&M for Vandenberg 

to not only conserve 

water but to improve 

the base water quality, 

eliminate National 

Pollutant Discharge 

Elimination System 

issues and eventually 

pay for itself. 

 Installations seeking 

to upgrade utility 

systems must follow the 

Department of Defense 

utility privatization 

guidelines as well as 

those found in the Federal 

Acquisition Regulation Part 

15 as negotiated best value 

procurements. 

 DLA Energy supports military 

service partners by offering 

specialized contracting and 

technical expertise for utility 

services concerns.

Environmentally-friendly upgrades at Vandenberg Air Force Base
U.S. Marines prepare to refuel an MV-22B Osprey 

tiltrotor aircraft with the assistance of U.S. Soldiers 

at a forward arming and refueling point Feb. 26, 

2018. Photo by Cpl. Jocelyn Ontiveros.

meant tankering was recommended because the price 

of fuel at that origin is lower than the destination’s cost 

and sufficient to offset the increased fuel burn rate from 

carrying the extra fuel.

 The impetus behind MAFCAT 1.0 was realizing that DLA 

Energy’s stabilized fuel pricing policy did not reveal the true 

cost to DoD to provide fuel to the warfighter. While the cost 

to buy gas in Afghanistan was not significantly different 

than buying it in Kuwait or Qatar, what was different was 

the cost for DLA Energy to deliver fuel to locations in 

Afghanistan. 

By Elizabeth Stoeckmann

Defense Logistics Agency Energy is an 

integral player in providing fuel data to 

Air Mobility Command’s 618th Air Operations 

Center fuel tankering program.

 The concept known as Mobility Air Forces Cost 

Avoidance Tankering, or MAFCAT, is a joint U.S. 

Transportation Command and DLA Energy cost 

avoidance initiative that recommends aircraft 

take on additional fuel at locations where the 

fuel price is lower than the destination.

 “We have been working with DLA Energy 

for more than five years,” said USTRANSCOM 

Joint Distribution Process Analysis Center 

Mobility Analyst Walter Hunt. “Since the origin 

of MAFCAT 1.0 in July 2012, it has been a very 

rewarding relationship.”

16 www.dla.mil/energy

a DLA Energy spreadsheet provided 

to USTRANSCOM monthly. The 

spreadsheet was cross-referenced and 

converted to an easily understood 

matrix. A green box on the matrix 

 MAFCAT’s original focus was on fuel 

pricing at 28 AMC locations in U.S. Central 

Command and taking advantage of aviation 

fuel cost differentials between these 

airfields. The effort resulted in almost $400 

million in cost avoidance across DoD.

 Tankering suggestions were derived from 

FUEL 
 Providing gas in Kuwait or Qatar is much 

cheaper and safer than providing fuel in places 

like Afghanistan. The logistical threat and cost to 

move fuel trucks through dangerous regions is 

high.

MAFCAT 2.0

 Both AMC and USTRANSCOM realized that 

MAFCAT could have a much broader application. 

 In 2016, JDPAC analysts looked to expand the 

tankering concept globally.

 Meetings with interested parties led to 

a decision to execute a three-month Proof 

of Principle to allow stakeholders to refine 

their process and determine if tankering was 

sustainable. The number of locations considered 

for flight planning purposes expanded from 28 to 

196.

 “One of the biggest limiting factors was how 

to preclude making the matrix so large as to no 

longer be a useful tool for the flight managers at 

the 618th,” Hunt said.

 The 618th was confident they could move 

beyond a manually driven system using 

spreadsheets and incorporated the “cost to 

deliver,” provided by DLA Energy, into their flight 

planning suite of tools.

 This was a significant reduction in the workload 

for the flight managers and a huge step forward, 

Hunt said. MAFCAT now looks at more than 

1,600 locations monthly and provides tankering 

recommendations.

 DLA Energy also realized there was room to 

improve the process for MAFCAT 2.0.

 “It all started with my deputy director asking 

me how hard it would be to create a report in DLA 

Energy’s Enterprise Business System,” said DLA 

Energy Customer Account Specialist Mike Park.

TANKERING

Developing solutions to maximize fuel efficiency

Energy Source l SPRING 2018 17
18 www.dla.mil/energy

 A process was developed to 

reduce the manual work and 

automate it for MAFCAT 2.0.

 Park analyzes fuel cost to 

deliver data from Enterprise 

Business System, and several 

other sources, in order to 

provide a three-month, rolling 

average to USTRANSCOM 

action officers for their review 

and adjudication before 

618th information technology 

specialists load it in to their 

flight planning suite.

 Within a year, efforts between 

USTRANSCOM, AMC, 618th 

AOC and DLA Energy turned a 

manually driven, labor intensive 

and regionally focused MAFCAT 

1.0 into MAFCAT 2.0, a global, 

automated effort designed to 

save the taxpayer money and 

provide increased effectiveness 

and efficiency to the warfighter 

with tangible cost avoidance, 

Hunt explained.

 “Mike is one of the initial 

MAFCAT 2.0 development team 

planners and is a critical partner 

in the MAFCAT execution,” 

said DLA Energy USTRANSCOM 

Liaison Officer Frank Wright. 

“He is the face of DLA Energy 

to USTRANSCOM, AMC and the 

MAFCAT community and should 

be recognized for his dedicated 

support.”

 Park collaborated with DLA 

Energy Direct Supply Operations, 

specifically Bulk Petroleum 

Supply Chain Services, to figure 

out support from the Defense 

Fuel Support Point locations 

AMC utilizes. Use of the Aviation 

Into-plane Reimbursement 

(AIR) Card® Online System 

generates a report that accesses 

as many data points as possible. 

A program that started with 

specific areas is now global.

 “I originally started with 

running EBS reports, but as 

time evolved, we have evolved 

our data sources,” Park said. 

“With the use of the AIR Card® 

program and DFSPs, I can pull 

data from our contractors. All 

the data gets generated into an 

access database that generates a 

report I email to USTRANSCOM 

planners. From there, AMC runs 

it through their algorithms and 

business rules to help make 

decisions.”

 The report focuses on what 

DLA Energy is paying for fuel and 

DoD’s attempt to save money.

 “We take a holistic view of 

the DoD,” Hunt said. “We look 

at DLA Energy’s cost to deliver 

in relation to AMC’s worldwide 

missions in order to realize 

significant cost avoidance, which 

makes a huge difference to DLA 

Energy.”

 “The team is always looking for 

more efficient and effective ways 

Through collaboration efforts between U.S. Transportation Command, Air Mobility Command, 618th Air Operations Center and Defense Logistics Agency Energy, 

a process transformed the manually driven Mobility Air Forces Cost Avoidance 1.0 into MAFCAT 2.0, a global effort to support the warfighter with a tangible cost 

avoidance. Infographic by USTRANSCOM and DLA Energy.

Appropriate means 

tankering will not 

interfere with the 

mission; applicable 

means the math works, 

and the numbers justify 

taking on additional fuel.

MAFCAT Rules of Engagement

• Never bump cargo when 

tankering for cost avoidance.

• Do not adversely impact 

mission accomplishment.

 MAFCAT Definitions

Tankering: Aircraft ferrying ‘lower cost’ 

fuel for use on follow-on mission leg in 

lieu of buying ‘higher cost’ enroute fuel.

Cost-to-deliver: DLA Energy’s cost to 

provide fuel support.
Energy Source l SPRING 2018 19

to conduct the mission,” said 

618th AOC Vice Commander Air 

Force Col. Brian McDaniel.

 With the implementation of 

MAFCAT 2.0, AOC’s data and 

applications team programed 

DLA Energy fuel data into the 

Interactive Mission Record used 

by flight managers to command 

and control AMC missions 

worldwide. The process is fully 

automated, notifying flight 

managers when aircrews should 

or shouldn’t tanker fuel.

 Collaboration is an essential 

element in the success of the 

MAFCAT program.

 “JDPAC action officers are the 

connective tissue,” Hunt said. 

“However, all the hard work is 

done by Mike Park to feed us the 

data.”

 Park said his knowledge 

in finance, standard pricing, 

payment data and his 

background in the AIR Card® 

program helped in creating the 

DLA Energy MAFCAT report.

 “The MAFCAT was presented 

to me as a challenge and I went 

for it,” he said. “It’s a program 

that gives DLA the best value 

and arguably one more tool for 

our customers for better-buying 

decisions.”

 Cost avoidance for the 

MAFCAT program is at more than 

$400 million, or $80 million per 

year since it started.

 “Compare that to an average 

fuel bill, and that’s pretty 

significant,” Hunt said.

 Current expected cost 

avoidance expectations are 

on the order of $10 million a 

quarter, which has come down 

quite a bit since there are fewer 

flying missions into higher fuel 

priced areas like Afghanistan, he 

said.

 Research into these programs 

benefits the entire DoD in dollars 

and lives, Hunt said. Using a 

metric provided by the Center 

for Army Analysis, more than 25 

lives have been saved because 

the number of fuel convoys 

making the dangerous trek 

through hostile environments 

in and around Afghanistan has 

reduced.

 Additionally, DLA Energy 

benefits from selling more 

gas, Hunt said. A negative net 

operating result in Afghanistan 

would typically offset a positive 

result in Kuwait and Qatar, even 

though extra fuel was burned 

when aircraft carried additional 

fuel onboard. That may seem 

counterintuitive, burn more 

gas in order to increase cost 

avoidance, however it’s going 

to save the DoD money because 

of the price differential between 

the two locations and reduces 

the number of fuel convoys 

needed to supply locations in 

Afghanistan, Hunt explained.

 Mission planners said they 

live by two MAFCAT words: 

appropriate and applicable. 

Appropriate means tankering will 

Mobility Air Forces Cost Avoidance Tankering is a fuel tankering concept that is a cost avoidance initiative 

that recommends aircraft fuel at locations where the fuel price is lower than the destination. U.S. Air Force 

photo by Staff Sgt. Benjamin Gonsier.

not interfere with the mission; 

applicable means the math 

works, and the numbers justify 

taking on additional fuel.

 “We never want to bump cargo, 

take on more gas than necessary, 

decrement the pay load or delay 

a mission,” Hunt said.

 MAFCAT 2.0 was USTRANSCOM 

Commander’s Innovation 

Showcase award winner for 

2017’s first quarter.

 “This collaborative team 

worked across commands and 

agencies to expand the current 

MAFCAT concept and empower 

Mobility Air Forces planners and 

operators to make cost-informed 

decisions, resulting in a DoD 

cost avoidance of $10.8 million 

and saving an estimated 25 

lives,” said USTRANSCOM Chief 

of Staff Air Force Maj. Gen. John 

Flournoy.
20 www.dla.mil/energy

T he number one priority 

for Defense Logistics 

Agency Energy is meeting the 

warfighters’ competing demands 

on the battlefield, especially 

when it comes to providing 

reliable and high-quality fuel 

and global relationships.

 An operationally vital way of 

meeting this priority is through 

the International Agreements 

program. DLA Energy’s Bulk 

Petroleum Supply Chain Services 

International Fuel Agreements 

team is responsible for 

establishing and maintaining 

long-term U.S. Department of 

Defense fuel agreements with 

foreign militaries. Synchronized 

with DLA Energy regional offices, 

they focus on providing global 

capability to meet future fuel 

requirements. 

 “It takes a very special 

set of professionals to make 

international agreements 

successful,” said Frank Pane, 

director of DLA Energy Bulk 

Petroleum Supply Chain Services. 

“They need to not only have a 

firm grasp of the operational 

needs and workings of the 

Class III [petroleum, oil and 

lubricants] supply chain but also 

fully understand the myriad of 

governing policies, integrate 

successfully with the regions, 

and have the tact and diplomacy 

to conduct face-to-face 

negotiations with senior military 

members of partner nations.” 

 With no less than 25 years 

of fuel experience for each 

member, the International Fuel 

Agreements team provides global 

reciprocal fuel support between 

the U.S. and partner nations.”

 The agreements provide the 

authority for DLA Energy to 

obtain fuel services such as 

pipeline access or product from 

the foreign country. As of April 

2018, DLA Energy has 41 fuel 

agreements across the world 

with countries like Honduras, 

India, Japan, Korea, Spain, 

Italy, Greece, Argentina, Chile, 

Indonesia and New Zealand, 

with ongoing efforts to expand 

agreement coverage. 

 “If an agreement authority 

was not in place and the 

warfighter needed support, DLA 

Energy would have to consider 

other solutions that may take 

additional time,” Maclean said. 

“Our agreements provide DLA 

Energy with options to ensure 

immediate warfighter support, 

and that’s why we focus on 

expanding agreement coverage.”

 Collaborative partnerships 

are key in a global operating 

environment. 

 “The agreements play a vital 

role in any coalition operation, 

exercise, or humanitarian 

mission,” said David Alexander, 

chief of DLA Energy International 

Agreements. “They are used by 

our forces anywhere we operate 

and significantly enhance 

interoperability.” 

“FUELING” 

Global 

By Connie Braesch

expertise while being 

well-versed in navigating 

complex strategies.

 “We foster strategic 

international partnerships 

that provide the capability 

and availability of 

fuel before it is even 

needed,” said Michael 

Maclean, a logistics 

management specialist 

and member of the DLA 

Energy International 

Fuel Agreements team. 

“We have fuel exchange 

agreements all around 

the world that provide 
Energy Source l SPRING 2018 21

Capitalizing on Efficiency

 Leveraging global partnerships 

is mutually beneficial and 

develops alliances around shared 

interests and resources that 

optimize the supply chain. 

 Alexander said the agreements 

provide economical, operational 

and logistical efficiencies 

between both countries. It’s not 

just about selling a gallon of 

fuel, he said.

 “We have a variety of different 

types of agreements, and we 

create a synergy between them 

where they complement each 

other,” he said. “For example, 

we have an agreement with the 

Turkish Ministry of Defense for 

U.S. use of a strategic Turkish 

pipeline that runs through the 

country and has been essential 

to U.S. operations in the area. To 

expand beyond this capability, 

we also developed a fuel 

exchange agreement with the 

Turkish Navy and Turkish Air 

Force.” 

 When it comes time to 

reconcile financial accounts, the 

countries are able to use any 

combination of agreements to 

streamline settlement, Alexander 

said. If either party owes the 

other under the Fuel Exchange 

Agreement, the debt can be 

settled by replacement-in-kind, 

repaid in fuel and delivered 

into the Turkish-NATO Pipeline 

 RELATIONSHIPS

 alliances to support the warfighter 

Under an Acquisition and Cross Servicing Agreement, Royal Malaysian Navy frigate KD Lekiu (F30) receives about 5,000 gallons of fuel from USNS Washington 

Chambers (T-AKE 11) during an underway replenishment, April 7, 2018. Underway replenishments of allied partners present a unique opportunity to strengthen 

partnerships and exercise compatibility of logistics systems. Photo by Grady Fontana.
22 www.dla.mil/energy

System under the provisions of 

the Fuel Support Agreement.

 “It’s about interoperability,” 

Alexander said. “It creates 

a single supply chain with 

partnering countries feeding off 

it.”

 Maclean says there isn’t 

one agreement that is more 

important than another, noting 

they are all valued equally. 

 “We do business with some 

countries more than we do 

with other countries,” he said. 

“Germany is one of our biggest 

agreements in terms of dollar 

 Alexander cited the president 

of the United States’ trip 

to South Africa for Nelson 

Mandela’s funeral in 2013 as an 

example. He said Air Force One 

was able to take the most direct 

route because of DLA Energy’s 

established partnerships with the 

United Kingdom in the remote 

Ascension Island location. 

 “If we didn’t have fuel support 

under a fuel exchange agreement 

there, the president would have 

had to go a whole different 

route,” Alexander said. 

FUEL AGREEMENT TYPES

The overarching legal framework for 

reciprocal support with a partner nation is 

called an Acquisition and Cross Servicing 

Agreement. With an ACSA, Fuel Support 

Agreements, Fuel Exchange Agreements or 

Direct Bill Agreements are possible. 

Fuel Support Agreements

FSAs are very precise, technical arrangements 

to give access into pipeline and large storage 

systems. They stipulate payment provisions, 

quality control, and logistical requirements 

pertinent to transportation or delivery.

Fuel Exchange Agreements

FEAs are more widely used, and in essence 

allow DLA Energy and partner nations to 

exchange fuel worldwide. They optimize 

supply chain capabilities and can be used 

in conjunction with an FSA. For instance, 

a U.S. Air Force C-17 could take on fuel in 

the Ascension Islands and DLA Energy could 

repay the United Kingdom in their pipeline 

system in England via a book transfer. 

Likewise, if an Italian navy vessel received 

marine fuel in Greece and then again in 

Djibouti, they could repay DLA Energy with 

aviation fuel via an equal value exchange 

settlement option in the Northern Italian 

Pipeline System.

Direct Bill Agreement

DBAs also authorize worldwide fuel exchanges 

with monetary payment serving as the 

primary means of settlement between the 

partnering countries.

Global Positioning

 For DLA Energy, it isn’t only 

about the exchange of fuel 

but also about developing 

interpersonal relationships with 

partnering countries. 

 For the past 13 years, Defense 

Logistics Agency Energy Europe 

& Africa has hosted an annual 

Fuel Exchange Agreement Forum 

for current and potential fuel 

agreement partners within the 

Europe and Africa regions. 

Thirteen countries participated in 

2017, and the fall’s 2018 forum 

is expected to include even more 

partners.

 The event builds interpersonal 

relationships while providing 

an opportunity to begin, 

continue or finalize agreement 

negotiations; reconcile financial 

account balances; and open or 

close Acquisition Cross Servicing 

Agreement orders to ensure 

compliance with combatant 

command ACSA guidance. 

 “The international agreement 

program started off some 

years ago with the service 

components each having their 

own agreements,” Alexander 

said. “When it transitioned to 

DLA Energy, there were only 

a handful of countries that 

participated. Since then, it has 

now grown to be a key forum, 

valued by our partnering nations 

and recognized by senior leaders 

as a key enabler in developing 

operational flexibility and 

ensuring uninterrupted fuel 

support to our warfighters.”

 Whether U.S. forces are 

conducting coalition exercises, 

providing humanitarian support 

or executing a strategic mission, 

they need to trust that they 

have fuel available worldwide to 

perform their duties. DLA Energy 

prides itself on understanding 

customer requirements and 

anticipating future needs to 

ensure warfighters have reliable 

and efficient fuel sources across 

an increasingly complex global 

environment. 

value or volume 

exchanged.” 

 Scott Stafford, 

international 

agreement’s lead 

negotiator for DLA 

Energy Europe and 

Africa, highlighted how 

price saves money. 

DLA Energy gives the 

foreign partner the 

standard price we 

charge our military 

forces and, in turn, the 

foreign partner charges 

us the same rate as 

their own military.

 Alexander added that 

offsetting fuel balances 

gallon-for-gallon 

during settlement 

is a great economic 

efficiency. Australia is a 

prime example because 

their price for fuel is 

consistently higher than 

in the U.S, he said. 

 “If they sold us one 

million gallons and we 

sold them two million 

gallons, the first million 

is offset gallon for 

gallon,” he said. “For 

that first million, we 

won’t pay more than 

what we would through 

the standard price.”

 Operationally, fuel 

agreements allow U.S. 

forces to strategically 

plan flight routes and 

ground movements. 
Energy Source l SPRING 2018 23

WHOLE OF GOVERNMENT NATURAL GAS, 

ELECTRICITY AND RENEWABLE ENERGY

POWERING UP 

OUR CUSTOMERS

By Installation Energy

While petroleum is the 

primary commodity 

supplied to Defense Logistics 

Agency Energy’s whole of 

government partners, it also 

provides electricity, natural gas 

and renewable energy to support 

the operations of several federal 

agencies.

 “Working with 12 different 

government partners on 

facility energy operations, DLA 

Energy continues to strengthen 

its ability to serve national 

interests,” said DLA Energy 

Installation Energy Director 

Pam Griffith. “DLA Energy’s 

network and expertise in the 

natural gas and electricity supply 

chains improves efficiency and 

provides value to the whole of 

government.” 

 Thirty percent of DLA Energy’s 

natural gas and electricity 

portfolio is comprised of 

federal customers with the 

Departments of Health and 

Provider of Choice

 DLA Energy is uniquely 

positioned to be a reliable 

partner to the whole of 

government, said DLA Energy 

Installation Energy Branch Chief 

Larry Fratis. 

 “Our customers know us and 

trust us,” he said. “Our core 

expertise in energy acquisition 

increases the effectiveness of our 

customers by allowing them to 

focus on their mission priorities, 

capitalize on economies of scale 

and avoid duplication.”

 Pooling customer needs is 

one way DLA Energy maximizes 

efficiency. 

 Contracting officers combine 

Department of Defense and 

federal civilian requirements 

under regional solicitations while 

adhering as closely as possible 

to generally accepted commercial 

practices to maximize supplier 

participation and competition, 

Fratis said. The typical contract 

Human Services, Commerce, 

Energy and Veterans Affairs 

representing the largest 

partnerships.

 “The facility energy 

we provide is critical to 

government operations,” 

Griffith said. “We frequently 

work with industry to 

identify innovative and 

reliable solutions to position 

ourselves to be a provider 

of choice and to meet our 

customer’s energy needs in 

the best possible way.”
24 www.dla.mil/energy

performance period is two to 

three years. Prior to the end of 

the performance period, followon requirements are re-solicited 

and new contracts are awarded 

prior to the existing contract 

expiration period to ensure 

continuous and seamless thirdparty supplier service, he added.

 “Each customer has unique 

requirements, different levels 

of expertise and varying local 

utility tariffs and transportation 

agreements in place,” said DLA 

Energy Installation Energy Branch 

Chief Joe Knudson. “It is critical 

that we capture these nuances 

and express them accurately 

in our requirements to receive 

competitive offers and ensure 

smooth contract performance.”

 “If we execute our mission 

effectively, then our partners 

can successfully focus on 

executing their core mission,” 

Griffith explained. “We know we 

are contributing to something 

much larger than just supplying 

energy.” 

 Department of Energy 

Argonne, the largest national 

laboratory in the Midwest, is 

Installation Energy’s second 

largest federal natural gas 

customer and fourth largest 

federal electricity customer. The 

energy supplied through DLA 

Energy supports DOE’s research 

and development efforts, to 

include research in renewable 

energy and its integration 

into the electric power grid, 

energy storage and smart grid 

technologies. 

 “Our whole of government 

partners also look to Installation 

Energy as a provider of expanded 

energy solutions,” Griffith said. 

“For instance, the Environmental 

Protection Agency has 

participated in our renewable 

energy credit program for years, 

purchasing enough credits to 

claim that 100 percent of their 

power was generated from 

renewable energy resources.” 

 In partnership with Installation 

Energy, the EPA unveiled a new 

solar farm at its Edison, New 

Jersey, facility late last year. The 

solar array system at EPA Edison 

includes 4,788 photovoltaic 

panels that generates enough 

electricity to power 45 percent 

of the campus’ electrical demand 

annually.

Offer Value

 When it comes to value, DLA 

Energy provides competitive and 

cost-effective solutions, Fratis 

said. 

 “We bring value by leveraging 

the government’s buying 

power,” he said. “Rather than 

each customer soliciting their 

own requirements, we are able 

to combine multiple federal 

civilian customers with our 

DoD customer requirements in 

the same market area under 

one regional solicitation to get 

greater market attention and 

more competition.”

 Numbers tell the story, Fratis 

added.

 DLA Energy competitively 

procures over 4.7 million 

megawatt hours of electricity 

valued at $250 million on behalf 

Defense Logistics Agency Energy officials participated in a ribbon-cutting ceremony for the U.S. Environmental Protection Agency’s Edison campus solar panel 

generation field in Edison, New Jersey, Oct. 25, 2017. DLA Energy awarded the contract for the 4,788 photovoltaic panel system that generates enough electricity 

to power about 45 percent of the campus’ annual electrical demand. Photo courtesy of DLA Energy Installation Energy. 
Energy Source l SPRING 2018 25

of its whole of government 

partners. DLA Energy has 

provided customers with a 

competitive choice, netting them 

an average of 13 percent in 

direct savings. 

 “In fiscal year 2017, our whole 

of government partners also 

received an additional $365,000 

in utility bill cost reductions 

through participation in the 

DLA Energy electricity demand 

response program,” Fratis said. 

 In natural gas, DLA Energy 

assesses the program’s 

effectiveness using cost 

avoidance – the difference 

between the DLA Energy 

delivered price and the 

associated regulated rate of 

supply by the local utility. During 

fiscal year 2017, the contracts 

Installation Energy awarded 

netted its federal customers a 

natural gas cost avoidance of 

$11.8 million. This equates to a 

22 percent savings versus the 

local utility provider rates. 

 “Over the life of the program, 

DLA Energy has saved federal 

customers more than $289 

million,” Griffith said. 

Crisis Response

 While humanitarian aid or 

disaster-response efforts do 

not typically involve Installation 

Energy, the team is aware of the 

importance of providing agile 

and rapid responses to emergent 

events. 

 When extreme cold 

temperatures curtailed scheduled 

deliveries during the 2017/2018 

winter heating season, the 

team completed over 250 

spot purchases totaling more 

than 600,000 dekatherms of 

natural gas in support of both 

DoD and federal customers 

throughout the Northeast, MidAtlantic and Southern regions 

of the U.S. These spot purchases 

allowed customers to continue 

operations without interruption, 

to avoid using more expensive 

alternate fuel, and to minimize 

costly utility imbalance penalties.

 When the January 2018 

‘cyclone’ weather event 

threatened the operability of 

the National Institutes of Health 

central utility plant operations, 

the natural gas team worked 

numerous daily spot purchases 

to keep the organization up and 

running.

 “NIH is our single largest 

federal customer in both 

electricity and natural gas 

programs,” said DLA Energy 

Installation Energy Branch Chief 

Mark Warno. “Their central utility 

plant is one of the largest of its 

kind in the U.S.”

 The team’s hard work didn’t go 

unnoticed, he said. The Director 

of the NIH Division of Technical 

Resources Farhad Memarzadeh 

praised the team for providing 

a quality product in a timely 

manner and often on short 

notice. 

 “We feel lucky to have your 

staff on board,” Memarzadeh 

told Warno. “They are responsive 

and dependable at all times, 

but particularly in emergency 

situations ... we could not ask 

for more.” 

 “By working with our suppliers 

to purchase natural gas on the 

daily market, Installation Energy 

successfully saved customers 

an estimated $4.5 million in 

alternative fuel costs and 

penalties during the 2017/2018 

winter heating season,” Warno 

said.

 “While we understand that our 

whole of government partners 

have a choice when it comes to 

providing natural gas, electricity 

and renewable energy solutions, 

we believe the combination 

of our acquisition and market 

expertise, our DoD, interagency 

and industry partnerships, and 

the cost-effectiveness of our 

programs deliver the best value 

to these customers,” Griffith 

said. 

 DLA Energy will continue to 

expand its network and expertise 

in facility energy operations in 

order to strengthen our ability 

to support our warfighters and 

serve broader U.S. government 

strategic and policy objectives, 

Griffith added.

DLA Energy 

Electricity Customers

DLA Energy 

Natural Gas Customers

Fiscal Year 2017

Source: Defense Logistics Agency Energy Fiscal Year 2017 Fact Book

Defense Logistics Agency Energy has electricity 

and natural gas customers across the Department 

of Defense and federal government. The annual 

DLA Energy Fact Book contains information about 

the organization’s business operations and status 

and is published online at www.dla.mil/energy. 

Graphic by DLA Energy public affairs.
26 www.dla.mil/energy

INVEST IN

Cultivating careers through job shadowing 

FUTURE LEADERS

Defense Logistics Agency 

Energy employee Chris 

Boeding walked side by side DLA 

Energy Deputy Commander Guy 

Beougher during a week-long 

shadowing experience Jan. 22-26.

 As the division chief for 

the Bulk Petroleum Products 

Domestic West division, Boeding 

said his career goals include 

becoming a senior executive and 

this job shadowing opportunity 

provides insight.

 “Things are always changing 

to the daily schedule,” Boeding 

said as he prepared to listen to 

a teleconference about Energy’s 

temporary duty assignments 

during the anticipated 

government shutdown. “I quickly 

learned how senior leaders must 

constantly strategically adapt to 

the situation at hand.”

 The shadowing experience 

developed as part of DLA 

Energy’s mentoring program and 

was first introduced at a town 

hall meeting in January.

 The shadowing program’s 

intent is to give participants an 

up-close look at the life of an 

Energy leader. It is designed 

to provide participants with 

professional development, 

networking, career conversations, 

exposure to leadership at 

multiple levels and a broader 

understanding of DLA Energy.

 Boeding is the first DLA Energy 

employee to participate in the 

pilot program.

 “The opportunity to shadow 

a leader is a unique experience 

to observe a desired career 

objective firsthand,” Beougher 

said. “Participants are not the 

only ones to benefit from the 

shadow program. DLA Energy 

leaders benefit by fostering a 

coaching culture and increasing 

transparency of Energy’s 

business strategies.”

 “This experience is providing a 

broader perspective and insight 

into major complexities of ‘big 

DLA’ that I may not see every 

day working for DLA Energy 

alone,” Boeding said.

 During Boeding’s shadowing 

experience, he saw how Energy 

executives’ schedules are 

anything but typical. He realized 

they must be prepared to handle 

global issues around-theclock when he participated in a 

discussion about the impact of 

a 7.9 magnitude earthquake off 

the coast of Kodiak, Alaska, that 

occurred in the middle of the 

night.

 “There was a frantic rush to 

ensure our warfighters, DLA 

Energy employees and our assets 

were okay,” he said. “Luckily, the 

earthquake started miles below 

sea, so it had no dramatic effects 

on people or assets.” 

 Closer to home, Boeding 

attended several high-level 

meetings such as the annual 

Joint Petroleum Seminar and the 

“Participants are not the only ones to benefit 

... DLA Energy leaders benefit by fostering a 

coaching culture and increasing transparency of 

Energy’s business strategies.”

 - Guy Beougher

Chris Boeding, chief of Bulk Petroleum Products 

Domestic West Division, walks to a meeting with DLA 

Energy Deputy Commander Guy Beougher during a 

week-long job shadow experience, Jan. 22-26. Photo 

by Connie Braesch.

By Elizabeth Stoeckmann
Energy Source l SPRING 2018 27

CHRIS BOEDING

Chief, Bulk Petroleum Products

Domestic West

Chris Boeding, chief of Bulk Petroleum Products 

Domestic West Division.

Describe your position and 

responsibilities:

I am the division chief for the Bulk 

Petroleum Products Domestic West 

division. My division includes two 

supervisory contracting officers and 

twelve contract specialists. I am 

responsible for procuring bulk fuels 

(jet fuel, marine diesels, etc.) for the 

western half of the U.S., including 

Alaska and Hawaii. I also have 

worldwide responsibility for procuring 

additives (lubricity improver, 

corrosion inhibitor, static dissipater, 

fuel system icing inhibitor) for our 

bulk fuels. Additionally, my division is 

responsible for several transportation services contracts, including a contingency 

related domestic truck transportation contract that provides jet fuel support 

during designated national emergencies.

How long have you worked at DLA Energy?

I started as a DLA Energy Installation Energy contract specialist on August 

30, 2010. I procured electricity, renewable energy credits and energy savings 

performance contracts for various domestic installations and agencies.

What are your biggest accomplishments to date?

I am really proud of the positive culture I have been a part of building in the Bulk 

Petroleum Products business unit within the Supplier Operations Directorate. 

We have coined ourselves the “business unit of choice” because we focus on 

providing opportunity, career growth and training to our employees in a fun, 

family-friendly atmosphere so they enjoy being at work and can be the best 

person possible. 

How do you make a difference?

I have a master’s degree in organizational psychology, so I have a strong passion 

for focusing on why and how people within organizations are motivated, effective 

and satisfied at work. With this mindset, I always try to create a positive and 

healthy workplace that inspires people to perform at high levels to better achieve 

the mission. 

Why do you think DLA is a great place to work?

DLA is a great place to work because of the opportunity for growth, familyfriendly culture and direct positive impact we have on supporting the warfighter.

DLA senior leader’s alignment 

group meeting.

 “Some meetings last several 

hours, discussing very interesting 

topics that have far-reaching 

impacts across the entire DLA 

enterprise,” he said. “It was 

informative to see the important 

discussions and decisions being 

made at this level.”

 Boeding’s week culminated 

with a retirement ceremony 

where he observed DLA Energy 

Commander Air Force Brig. Gen. 

Martin Chapin and Beougher 

honor an employee’s 42 years of 

federal service.

 Boeding was able to use the 

one-on-one time with Beougher 

to ask targeted questions about 

executive-level leadership 

and strategic thinking. During 

those sessions, he gained 

valuable insight into how he can 

improve his personal leadership, 

streamline work processes and 

pursue career aspirations. 

 “One of the most powerful 

things the deputy commander 

does is positively impact the 

workforce,” Boeding said. 

“Whether through strategic 

initiatives, leading and 

communicating effectively to 

the workforce or simply starting 

a shadow program, shaping the 

organization for the better is 

always on Mr. Beougher’s mind.”

 “Each day was busier than 

the next, providing a satisfying 

shadow week,” Boeding said.

 While Boeding was the first 

employee to participate in the 

job shadow program, several 

more future leaders have taken 

advantage of the program since 

January. Callie Lake, contracting 

officer for DLA Energy Bulk 

Petroleum Supply Chain Services, 

shadowed Kevin Ahern, acting 

director of Procurement Process 

Support, and Rachel Dunlap, 

chief for DLA Energy Business 

Process Support Directorate’s 

Reports and Analysis Division, 

shadowed DLA Energy 

Commander Air Force Brig. Gen. 

Martin Chapin.