Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

Supporting the Warfighter

DLA History Program

1 April 2015
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Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

 

Table of Contents

Message from the Chief of Staff........................................................................................iii

Historians and History Points of Contact...........................................................................v

Overview......................................................................................................................................................1

Office of the Director ................................................................................................................................13

DLA Land and Maritime .........................................................................................................................17

DLA Troop Support .................................................................................................................................33

DLA Aviation ............................................................................................................................................45

DLA Energy...............................................................................................................................................57

DLA Disposition Services.........................................................................................................................69

DLA Distribution ......................................................................................................................................87

DLA Human Resources (J1) ..................................................................................................................107

DLA Logistics Operations (J3) ..............................................................................................................121

DLA Strategic Plans and Policy (J5).....................................................................................................209

DLA Information Operations (J6).........................................................................................................219

DLA Acquisition (J7)..............................................................................................................................253

DLA Finance (J8)....................................................................................................................................279

DLA Joint Reserve Force (J9)................................................................................................................295

DLA Installation Support (DS)..............................................................................................................305

DLA Small Business Programs (DB).....................................................................................................319

DLA General Counsel (DG)...................................................................................................................327

DLA Inspector General (IG)..................................................................................................................335

DLA Intelligence (DI) .............................................................................................................................349

DLA Legislative Affairs (DL).................................................................................................................361

DLA Equal Employment Opportunity (DO)........................................................................................387

DLA Public Affairs (DP) ........................................................................................................................405
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Defense Logistics Agency

Historians and History Points of Contact

Fiscal Year 2014 (FY14) Annual Historical Report

DLA Chief Historian Dr. Harold Raugh

DLA Staff Historian Ms. Chrissie Reilly

Land and Maritime Mr. Tony D’Elia

Troop Support Ms. Diana Stewart

Aviation Ms. Amy Clement

Energy Mr. Al Lamson

Disposition Services Mr. Ken MacNevin

Distribution Ms. Stacy Umstead

J1 Ms. Laurie Hall

J3 Mr. Dennis Gauci

J5 Mr. Marcus Bowers

J6 Ms. Sonya Rose

J7 Mr. Glenn Starks

J8 Ms. Emma Edmiston

J9 Mr. Philip Knight

Installation Support Ms. Juanita Shanks

Small Business Programs Mr. Christopher Hall

General Counsel Ms. Michele Pavlak

Chaplain SSG John Edmisten

Inspector General Ms. Sharon Levy

Intelligence Mr. Derrick Broussard

Legislative Affairs Mr. Cordell Francis

Equal Employment Opportunity Ms. Janice Samuel

Public Affairs Office Ms. Deborah Parker

Joint Secretariat LTC Richard Marzan

 

Supporting the Warfighter
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Defense Logistics Agency

Overview

Fiscal Year 2014 Annual Historical Report

1. DLA’s Responsibilities, Customers, and Functions

a. Responsibilities

DLA is a Defense Department Combat Support Agency. The DLA Director is a three-star flag or 

general officer who reports to the Assistant Secretary of Defense for Logistics and Materiel

Readiness (ASD(L&MR)).

DLA had annual revenues of approximately $38 billion in Fiscal Year (FY) 2014.1These 

revenues are from the sales of goods and services to its customers. As a distributor and 

integrator, DLA either (1) buys items from manufacturers and suppliers which it then resells to 

its DOD (and other) customers, often with additional services added -- e.g., warehousing, 

packaging, and transportation; or (2) contracts for items that are provided directly by the 

manufacturer to the DOD customer. This is known as Direct Vendor Delivery (DVD).

DLA is responsible for the supply (purchasing), storage, and distribution of most consumable 

and reparable items for DOD. Its primary purpose is to meet the logistics requirements of the 

Armed Forces for food, clothing fuel, repair parts, and other items. Noticeably absent from this 

list are major end items (Class VII) – weapon systems and related equipment -- which are 

procured by the military departments. Also absent is ammunition (Class V), which, with some

exceptions, is an Army responsibility, as executive agent. DLA is also responsible for the 

disposition of all excess or surplus DoD materiel, including Class VII weapon systems.

To accomplish these responsibilities, DLA has a staff of 24,000 personnel divided into:

 several supply chains that contract for the above items;

 a worldwide distribution system;

 logistics and staff support to DOD’s geographic Combatant Commands;

 a “reverse logistics” operation that disposes of surplus or excess materiel from the 

Military Services and DLA

 headquarters; and

 other responsibilities that have flowed to DLA over the years.

Additional responsibilities include the provision of human resources support (back office) 

functions for OSD and many of the defense agencies, as well as the management of the strategic 

 

1 Defense Logistics Agency Fact Sheet, January 2015.
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materials stockpile, the provision of document services, the Defense Logistics Information 

Service, and the Defense Automated Addressing System.

DLA operates with a revolving Defense-Wide Working Capital Fund (DWCF). Its customers 

purchase items from DLA with their own appropriated funds that are deposited into the DWCF. 

In turn, DLA purchases items from its suppliers out of the revolving fund. The prices DLA 

charges to its customers for each product include an additional amount to recover DLA’s 

operating costs, which were approximately $4.4 billion in FY 2013. The “cost recovery rate” 

(which is actually a composite of separate rates covering all the different business areas) is 

determined by the OSD Comptroller every year; it is used to encourage DLA to keep its costs 

under control, and to ensure that its “profit” every year is zero; i.e., that ideally the amount of 

cash in the revolving fund neither increases nor decreases over time.

b. Customers

DLA has four distinct classes of customers: (1) deployed forces, (2) non-deployed forces, (3) 

military industrial facilities (depots and shipyards), and (4) others, including other U.S. 

Government agencies and foreign military sales (FMS). These distinctions are important because 

each class of customers has unique needs.

Deployed forces are those operating forces apportioned to a combatant commander and deployed 

to an active theater of operations. DLA must deliver supplies to various distribution points near 

or within the combat zone, as in Afghanistan and Iraq, where tactical distribution is generally 

handled by one of the Military Services.

Non-deployed operating forces are normally assigned to bases or installations in the United 

States and around the world. This includes everything from a base that is home to an Air Force 

wing or Army division, to an installation containing support functions such as hospitals or other 

service providers. DLA is the wholesale supplier to these operational customers (again, this 

includes items for which DLA contracts but which are delivered directly by the suppliers to the 

customers), who in turn provide their own retail services—the sale or distribution of individual 

items—to the final customer or user assigned to or transiting the base.

DLA’s military industrial customers include the 17 primary maintenance depots and shipyards in 

the four Military Services: three Air Logistics Complexes (ALCs) in the Air Force, the three 

main Fleet Readiness Centers (FRCs) in the Navy and Marine Corps, four Navy shipyards, two 

Marine Corps depots, and five Army depots. DLA is responsible for both wholesale and retail 

supply, storage, and distribution to the Air Force and Navy industrial facilities. It is responsible 

only for wholesale supply for the Army and Marine Corps depots. This reflects the mixed 

implementation of the 2005 BRAC decisions, discussed in the next chapter.

DLA also provides goods and services, including storage and distribution, to a wide range of 

other customers. The most notable are other U.S. Government agencies, including the Federal 

Emergency Management Agency, other parts of the Department of Homeland Security, and the 

General Services Administration. DLA also supplies FMS customers.
Overview

3

c. Functions

DLA’s central functions are to (1) buy, (2) store if necessary, and (3) distribute approximately 6 

million distinct consumable and reparable items. To do this it must know how much to buy; 

whether and where to store it; and how to distribute it most efficiently. This requires effective 

demand planning, inventory management, contracting, and storage and distribution capabilities, 

together leveraging a powerful IT/ERP10 backbone and an effective governance structure. It also 

requires tight retail-wholesale-supplier-customer integration. Working closely and in an 

integrated fashion with its customers -- seeking effective and efficient supply chain integration --

is critical to DLA’s success.

DLA is responsible for the delivery of consumable and reparable items where and when they are 

needed by its customers. For deployed forces, therefore, the expectation is that DLA will deliver 

items to the distribution point required by the customer. DLA is not responsible for tactical 

theater distribution.11

DLA delivers wholesale and retail goods to its customers. Wholesale is the procuring of goods, 

usually in large quantities, to be retailed -- sold or distributed -- by others. Retail is the selling or 

providing of goods in relatively small quantities to the final user or consumer. This distinction, 

and particularly the importance of DLA’s retail capabilities to its current and future operations, is 

an important theme of this paper.

For non-deployed forces and some military industrial facilities, the expectation is that DLA will 

provide on-time wholesale delivery to Service retail providers. For other military industrial 

customers, DLA is the retail supplier. In these cases the customers’ expectations are that DLA 

will have the individual parts needed for the mechanics and artisans -- the final users who are 

DLA’s retail customers at the depots and shipyards.

2. DLA’s Mission, Vision, and Values

a. Mission. As America’s Combat Logistics Support Agency, we provide effective and

efficient worldwide support to Warfighters and our other customers.

b. Vision. Warfighter-focused, globally responsive, fiscally responsible supply chain 

leadership.

c. Values. Our values are DLA’s foundation for all we do, our basic guiding principles:

 Warfighter needs guide us.

 Integrity defines us.

 Diversity strengthens us.

 Excellence inspires us.
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3. DLA’s Organization 

a. General. Reporting to the DLA Director are six primary line organizations and numerous 

staff organizations (Figure 1). Four of these line organizations are the buying commands -- Aviation, 

Land and Maritime, Troop Support, and Energy -- that are directly responsible for meeting their 

Service customers’ needs for spare parts, fuel, food, medical supplies, and other commodities. The 

Distribution Command provides storage and distribution services, and DLA Disposition Services is 

engaged in “reverse logistics,” disposing of surplus or excess materiel from the Military Services and 

DLA. 

The DLA Director and line managers are supported by several staff organizations. Human Resources 

(J1), Finance (J8), and Strategic Plans and Policy (J5) perform the functions implied by their names. 

Logistics Operations (J3) is responsible for coordinating DLA support to deployed forces, as well as 

support to non-deployed operating forces. It is also responsible for coordinating many of the actions 

(e.g., inventory management) between DLA’s line and staff (headquarters) organizations. 

Information Operations (J6) is responsible for DLA’s IT infrastructure, including, most importantly, 

the maintenance and development of DLA’s ERP system, the Enterprise Business System (EBS). 

Acquisition (J7) is responsible for procurement and contracting policy and oversight. 

Figure 1. The Main Components of the Defense Logistics Agency 

DLA’s day-to-day work is performed by approximately 20,000 personnel in its line organizations. 

These are supported by a headquarters staff and other functions totaling approximately 4,000 people 
Overview

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(Table 3). The direct line management responsibility for meeting customer requirements rests 

primarily with the four buying commands. Their customers, once again, comprise (1) deployed 

forces; (2) other outside CONUS (OCONUS) and CONUS operating forces, installations, and 

activities; (3) CONUS military industrial facilities; and (4) other customers, including the U.S. 

Government and FMS.

b. DLA Aviation 

DLA Aviation is located in Richmond, Virginia. Its commander is a one-star flag or general 

officer who reports directly to the DLA Director. It has approximately 3,200 employees, with 

sales of approximately $3.5 billion in FY 2013. It manages approximately 1.1 million items. 

Nearly all of these are Class IX repair parts, required by the fixed and rotary wing aviation fleets 

of the four Military Services. DLA Aviation has seven main industrial customers: the three Air 

Force Air Logistics Complexes, the three main Navy Fleet Readiness Centers, and the Corpus 

Christi Army Depot. These customers are responsible for approximately one-third of DLA 

Aviation’s sales. Operating forces based in the United States and overseas are responsible for 

approximately two-thirds of its sales. Some of the items managed by the Aviation Command are 

supplied to the Land and Maritime Command’s customers at the Navy shipyards and the Army 

and Marine Corps depots.

For all but the Army depot in Corpus Christi, DLA Aviation is responsible for both wholesale 

and retail supply to its main military industrial customers. That is, it is responsible for getting 

individual parts into the hands of the artisans or mechanics -- the final consumers -- who need 

them to perform specific maintenance or repair tasks. In the case of Corpus Christi, the Army 

handles its own retail operations, and DLA Aviation is a wholesale supplier to the Army retail 

store at Corpus Christi.17 DLA Aviation is also responsible for the wholesale supply of items to 

the operating forces. Those forces, at their bases and installations, are then responsible for the 

retail distribution, via their own retail stores, of parts and other consumable items to the final 

user or consumer.

c. DLA Land and Maritime 

DLA Land and Maritime is located in Columbus, Ohio. Its commander is a one-star flag or 

general officer who reports directly to the DLA Director. It has approximately 2,450 employees 

and FY 2013 sales of approximately $3.1 billion. It manages approximately 2 million items. 

These are Class IX repair parts required by land and naval systems, as well as numerous 

electronics items required by all systems, including aviation. Some of the items managed by 

DLA Land and Maritime, including many electronics items, are supplied to the Aviation 

Command and its customers at the Air Force and Navy aviation depots. 

DLA Land and Maritime has eight main industrial customers: the four Navy shipyards and four 

of the Army depots. (The fifth Army depot is the aviation depot supported by the Aviation 

Command.) DLA Land and Maritime is the wholesale and retail supplier to the four shipyards 

and the wholesale supplier to the four Army depots. These account for approximately 30 percent 

of its total sales. It also supplies operating forces based in the United States and overseas, which 

account for approximately 70 percent of sales.
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d. DLA Troop Support 

DLA Troop Support is located in Philadelphia, Pennsylvania. Its commander is a one-star flag or 

general officer who reports directly to the DLA Director. It has approximately 2,300 employees, 

and $13.3 billion in FY 2013 sales. It manages approximately 3 million items. It contracts for 

food and other subsistence (Class I), clothing and textiles (Class II), construction materials and

equipment (Class IV), personal items (Class VI), and medical supplies (Class VIII) for its 

customers in all four Military Services. In addition, it is responsible for the purchase of certain 

Class IX repair parts, primarily industrial hardware and fasteners.

e. DLA Distribution 

DLA Distribution has its headquarters in New Cumberland, Pennsylvania. Its commander is a 

one-star flag or general officer who reports directly to the DLA Director. It is responsible for the 

storage and distribution of all DLA-stored items. It has approximately 7,100 employees spread 

across 25 distribution centers worldwide, 18 of which are in the United States. The two largest 

distribution centers are in San Joaquin, California and Susquehanna, Pennsylvania; they are 

Strategic Distribution Platforms where the largest portion of warehoused items are stored before 

being re-packaged (if necessary) and delivered to DLA’s customers around the world. DLA 

Distribution’s costs in FY13 were approximately $1.5 billion. These costs are recovered through 

surcharges to its customers for the specific products stored and delivered by DLA. 

f. DLA Disposition Services 

DLA Disposition Services has its headquarters in Battle Creek, Michigan. Its commander is a 

civilian Senior Executive Service, who reports directly to the DLA Director. Its business is to 

dispose of all excess DOD property. DLA Disposition follows a statutory disposition process 

whereby property is initially reutilized within DOD and federally-established Special Programs, 

then offered for transfer to other federal agencies, and finally donated to authorized state and 

local governments, and to other organizations, before being offered for sale at auction or 

destroyed as scrap. Disposition Services has played a major role in the demilitarization and 

disposal of large quantities of equipment and other items in Iraq and Afghanistan.

g. DLA Energy

DLA Energy acquires, stores, and distributes bulk petroleum worldwide and collaborates 

extensively with other DOD components in the planning, management, and operation of fuel 

infrastructure and support capabilities. Over time, DLA Energy and its predecessor organizations 

have taken on additional missions beyond bulk petroleum, including contracting support for 

installation energy in the form of electricity, natural gas, and coal. Its aerospace division 

manages the U.S. Government supply chain for liquid propellants, cryogens, chemicals, and 

gases for space launch applications.

DLA Energy is directed by a one-star flag or general officer and employs a staff of 

approximately 1,000 worldwide. In addition to its internal support units, the organization divides 
Overview

7

its main activities across Customer Operations, Supplier Operations, and four regional 

commands (Americas, Pacific, Europe and Africa, and Middle East).

With approximately $17 billion in sales in FY 2013, DLA Energy accounts for close to half of 

DLA’s total sales. Customer shares are relatively stable, with the Air Force accounting for close 

to half of sales, the Navy for another quarter, and the Army, Marine Corps, and all other 

customers for the final quarter. The large majority of those sales are for petroleum products, 

approximately 75 to 80 percent of which is aviation fuel. In total, DLA Energy customers 

purchased just over 100 million barrels of petroleum products in FY 2013. Almost 90 percent of 

that total is bulk petroleum, for which DLA Energy manages the entire supply chain for DOD.

DLA Energy also manages approximately 600 Defense Fuel Support Points (DFSPs) worldwide, 

ranging from simple base gas stations to major fuel farms and terminals. Around two-thirds of 

the DFSPs are located on military bases, but others are located in major port facilities, along 

pipeline routes, and afloat. Most DFSPs are government owned, government operated (GOGO), 

government owned, contractor operated (GOCO), or contractor owned, contractor operated 

(COCO). Across these different types of operations the day-to-day responsibility for operation or 

oversight of these facilities is divided among DLA Energy and the three Military Departments.

In addition to management of the bulk petroleum inventory stored in the global network of 

DFSPs, DLA Energy also manages the maintenance of that infrastructure. It fulfills that 

responsibility, in cooperation with its Military Department partners, through the Sustainment, 

Restoration, and Modernization (SRM) program. SRM projects account for close to $500 million 

in expenditures annually and are pursued in one of four pillars:

a. Centrally Managed Programs address a wide range of inspections and other regulatory 

compliance activities.

b. Planning Studies provide comprehensive infrastructure reviews every five years to 

identify infrastructure restoration and modernization investment priorities.

c. Recurring Maintenance and Minor Repair covers small-scale maintenance.

d. Emergent projects are those identified outside the other preventative-oriented pillars.2

4. Key Personnel (as of 30 September 2014; Figure 2):

 Director: VADM Mark Harnitchek

 Vice Director: Mr. Edward Case

 Foreign Policy Advisor: Dr. Judith R. Baroody

 Chief of Staff: Dr. Renee Roman

 Command Senior Enlisted Leader: CSM Sultan Muhammad

 Commander, DLA Land and Maritime: RDML John G. King, SC, USN

 Commander, DLA Troop Support: BG Steven Shapiro, USA

 Commander, DLA Aviation: Brig Gen Mark K. Johnson, USAF

 

2 The preceding information in Sections 1-3 has been extracted basically verbatim, with the exception of selected 

updated figures, from Paul H. Richanbach, et al., “Independent Review of the Defense Logistics Agency’s Role and 

Mission,” Draft, IDA Paper P-5210 (Alexandria, VA: Institute for Defense Analysis, December 2014), 17-20
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 Commander, DLA Energy: Brig Gen Mark McLeod, USAF

 Commander, DLA Disposition Services: Col Michael Cannon, USAF

 Commander, DLA Distribution: BG Richard Dix, USA

 DLA Human Resources (J1): Mr. Brad Bunn

 DLA Logistics Operations (J3): RADM Vince Griffith, SC, USN

 DLA Strategic Plans and Policy (J5): Ms. Phyllisa Goldenberg

 DLA Information Operations (J6): Ms. Cathy Cutler

 DLA Acquisition (J7): Mr. Matthew Beebe

 DLA Finance (J8): Mr. Tony Poleo

 DLA Joint Reserve Force (J9): RDML Ron MacLaren, USN

 DLA Installation Support: Mr. David Rodriguez

 DLA Small Business Programs: Ms. Amy Sajda

 DLA General Counsel: Mr. Fred T. Pribble

 DLA Inspector General: Mr. Marshall W. Evers

 DLA Intelligence: Ms. Stephanie Samergedes

 DLA Legislative Affairs: Mr. Robert Wimple

 DLA Equal Employment Opportunity: Mr. Ferdinand LeCompte

 DLA Public Affairs: Mr. Joseph Yoswa

 DLA Chaplain: Chaplain (COL) Richard Quinn
Overview

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Figure 2. Key Personnel

5. Fiscal Year 2014 Director’s Guidance3

 a. In the preface to his published Defense Logistics Agency Fiscal Year 2014 Director’s 

Guidance, VADM Mark Harnitchek wrote:

Team,

Our theme this year is Staying The Course. That makes my guidance to 

you pretty easy -- keep doing what you’re doing. You’ve made great strides in 

the goals set out in my 2013 Guidance -- in fact we’ve exceeded those goals 

in several key areas thanks to your focused efforts, hard work and dedication. 

I’ve told you nobody knows this stuff better than you do, and you’re proving 

that every day. 

This Guidance will give you a quick snapshot of how we’re doing 

with our Big Ideas and a few things we need to focus on in the year ahead.

We’re maintaining our goals to significantly improve support to our customers 

while dramatically driving down costs for operations and material. But the 

targets get more aggressive as we go forward. We’ve upped 10-in-5 to create 

even more savings; our new goal is to slash $13.1 billion in operating and 

 

3

Information in this section is extracted from Defense Logistics Agency Fiscal Year 2014 Director’s Guidance.
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material costs over the next six years. We’ll get there by doubling down 

on the hard work you’ve done so far. There are more savings out there 

and I’m depending on you to find them. We’re doing great, but we still 

have a long way to go.

As we face the significant fiscal and strategic challenges ahead, we

must remain resolute and continue to lead the way in innovation and

transformation. Acting together, with enthusiasm, optimism and focus, we 

WILL continue to achieve great things. What you do makes a difference 

so keep charging. I am very proud of you and this great organization!

b. Staying The Course: Our priorities to significantly improve performance while 

dramatically reducing cost remain the same. These are:

 Decrease Direct Material Costs

 Decrease Operating Costs

 Right-size Inventory

 Improve Customer Service

 Achieve Audit Readiness

(1) Decrease Direct Material Costs: “Be smart buyers of the right stuff” 

Reduce material costs to achieve $13 billion in overall savings in six years through a 

combination of reverse auctions, commercial-type contract terms, substantial industry 

partnerships, performance-based logistics and prime vendor contracts, significantly reduced lead 

times and increasing small-business opportunities. We’ve made a big impact here. DLA has 

substantially increased its reverse auction opportunities, which have led to savings of more than 

$1.6 billion over the past year, including $400 million from three DLA Energy auctions alone. 

And we’re just getting started. The First Destination Transportation and Packaging Initiative is a 

collaborative, interagency effort that is expected to save DLA hundreds of millions of dollars in 

the near future. And across the enterprise, we’re using strategic sourcing – which includes 

initiatives like PBLs and prime vendor contracts – to gain more than $4 billion in savings 

through 2019. Early results are promising: DLA Troop Support is negotiating better 

manufacturing discounts and decreased prime vendor distribution fees to save millions of dollars 

every month – $6 million to $7 million a month on our pharmaceutical contracts alone. And this 

is how we’ll continue to find savings – negotiate harder, be aggressive, do more research, work 

with our partners, and make smart decisions.

 (2) Decrease Operating Costs: “Improve process and productivity”

Reduce operating costs through a combination of eliminating, consolidating, and co-locating 

infrastructure, achieving BRAC “Day 3” efficiencies, optimizing the global distribution network, 

enhancing retail industrial support, incorporating process improvements, Going Green at DLA 

operating locations. We’ve achieved significant success with our forward stocking initiative in 

the CENTCOM AOR. At the 5th Fleet, we slashed our logistics response time 81 percent, from 

40 days to eight days. We’ve had the same success with casualty reports, significantly reducing 

them for patrol craft, mine countermeasure ships and ballistic missile defense ships. In fact, there 

have been no CASREPs against any forward stocked items for the past nine months. And thanks 

to our focus on Strategic Network Optimization, we’re reducing excess inventory and limiting 
Overview

11

the number of warehouses we maintain around the globe. This is also allowing us to save money 

on operating expenses, utilities, maintenance and sustainment. Our Information Operations team 

is eliminating unnecessary or redundant systems to reduce IT costs. And we’re paying more 

attention to ensuring we’re maximizing the usable space of containers shipped overseas. While 

we’re in the early stages of these initiatives, we’re already seeing them pay dividends. Pressing 

hard on these will result in big savings down the road.

 (3) Right-size Inventory: “Clean out the attic and keep it clean”

Right-size both War Reserves and operational inventory by reviewing and adjusting strategic 

requirements, leveraging commercial supply chains without redundancy, and improving planning 

and forecast accuracy. Our short-term goal is to reduce excess inventory by $6 billion by the end 

of 2014 without sacrificing military readiness. We’ve already reduced inventory by $2 billion 

since 2012, including a reduction in contingency stock from $2 billion to about $500 million. 

These kinds of savings wouldn’t be possible without a whole agency effort, from DLA team 

members at our inventory control points to DLA Distribution, DLA Disposition Services and 

DLA Information Operations. Our military Service partners are important members of this team 

as well. And we’re not just “cleaning the attic,” we’re also focusing on the way we plan for, 

forecast and contract for items to ensure we don’t just fill the attic back up again. Rightsizing 

inventory also allows us to reduce our logistical footprint – less stock means fewer warehouses, 

which leads to even greater savings in the years ahead.

(4) Improve Customer Service: “Delight our customers”

Improve customer service and measure performance by customer standards by expanding and 

strengthening customer/supplier collaboration and ensuring excellence in inventory management. 

How do we know how well we’re doing? We ask our customers and partners. Earlier this year 

we surveyed our senior warfighting partners to find out what they thought we were doing well 

and where they’d like to see us improve. It came as no surprise to me to learn that, overall, they 

thought we were doing a very good job. They know we understand the mission, they believe 

we’re responsive and that we deliveron our commitments. These results aren’t talking about me, 

they’re talking about all of you – the DLA team. We do have areas of concern, however, and 

we’re aggressively attacking those to ensure we meet the needs of our Service partners and 

warfighting customers. I need you to be proactive in finding solutions to outstanding issues, 

improve our procurement responsiveness and award contracts quicker, and to make sure what we 

do, even the little things, make sense. If things don’t make sense, change them.

(5) Achieve Audit Readiness: “Prove it”

Demonstrate our commitment to transparency and accountability through our culture of 

judiciousness, meeting assertion dates, identifying and driving improvement opportunities, and 

expanding audit readiness beyond process integrity to process excellence. We are aggressively 

pursuing audit readiness at DLA. Instead of planning for the 2017 deadline mandated by the 

Department of Defense, we’re targeting the end of fiscal 2015 as our deadline, and we’re making 

steady progress. DLA’s Hire-to-Retire program has already achieved assertion, three months 

earlier than planned. This coming year we’re focusing on really proving our numbers, and I need 

every one of you engaged in this important effort. Understand your processes and the internal 

controls within them, and make sure the data is accurate and in compliance with the rules. Audit 
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Fiscal Year 2014 Annual Historical Report

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readiness makes us a stronger organization and enhances the trust the public places in us to get 

things done and done right.

 (c) Key Focus Areas for DLA in 2014:

As we begin the new fiscal year, there are three areas I’d like us to pay particular attention to:

(1) Afghanistan: Support the troops in the current fight and pivot to reset, 

retrograde and transition: Stay on task; continue to be at the forefront of support to reset and 

retrograde. One way in which we add tremendous value to our warfighting partners is our 

willingness to anticipate, plan and move out. Innovative, proactive approaches will continue to 

push timely disposal, retrograde and lines of communication usage. 

(2) Contingencies and Humanitarian Assistance amd Disaster Relief Support: Build 

on the monumental successes of our Hurricane Sandy support. Get ahead of requirements and 

have the right material positioned with contingency contracts in place to provide immediate 

support. Responsiveness is the coin of the realm, so act with a sense of urgency. Our fellow 

citizens and those in need are counting on you.

(3) Industrial & Platform Support: Deliver world-class logistics support by 

leveraging Enterprise Performance Based Logistics and PBL efforts. Optimize Inventory 

Management and Stock Positioning at Service industrial activities while supporting Strategic 

Network Optimization, Peak Policy and Next Generation forecasting and inventory rightsizing.
Office of the Director

13

Defense Logistics Agency

Office of the Director

Fiscal Year 2014 Annual Historical Report

1. Organization. The immediate Office of the Director, Defense Logistics Agency, is 

organized in this manner:

2. Director/Vice Director/Command Senior Enlisted Leader

a. The Director directs controls the DLA in the accomplishment of assigned missions, 

programs, plan, and projects. 

b. The Vice Director acts for and advises the Director, DLA in the direction, control and 

management of the Agency mission. He also coordinates and directs plans, initiatives and 

activities to attain mission, strategic and performance goals.

DLA Director 

DLA Vice Director 

Command Senior Enlisted Leader

Executive 

Services 

Staff

 

Chief of Staff

Strategic 

Analyst

Joint 

Secretariat

Director’s 

Staff Group

Protocol
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c. The Command Senior Enlisted Leader assists the Director as the Senior Enlisted 

Advisor, DLA. Facilitates communication and works closely with the leadership and executive 

management team of the field Commands and J-Staff to ensure the Director’s annual guidance is 

carried out; understands organizational policies and procedures, law and regulation to ensure 

appropriate decisionmaking protocols are followed. Coordinates with Senior Enlisted Advisors for Defense 

Agencies and the Military Services on issues of common interest.

d. Incumbent Personnel.

(1) Director: VADM Mark E. Harnitchek, USN

(2) Vice Director: Mr. Edward Case

-(Foreign Policy Advisor: Dr. Judith R. Baroody)

(3) Command Senior Enlisted Leader: CSM Sultan Muhammad, USA

3. Executive Services Staff. The Executive Services Staff provides direct support to the 

Director and Vice Director, DLA.

a. Incumbent Personnel.

(1) Executive Officer: CAPT Joseph (Doug) Noble, USN

(2) Flag Aide: Lt. Col. Scott Hopper, USAF

(3) Executive Assistant: Ms. Jean Ellis

(4) Executive Secretary: Ms. Nancy Walley

(5) Senior Advisor for Supply Chain Management: Mr. Dana Fuller

(6) Executive Chauffeur: SFC Julio Valles, USA

(7) Executive Chef: CS1 Jonathan Trotman, USN

(8) Executive Chef: CS2 Darrell Harvey, USN

(9) Office Services Assistant: Ms. Carrie L. Smith

4. Chief of Staff. The DLA Chief of Staff is the senior or principal member or head of a staff 

who acts as the controlling member of the staff. The DLA Chief of Staff is responsible for 

coordination of all DLA Headquarters operations, in the areas of Strategic Planning, Agency 

Governance, Strategic Communications, Legislative Affairs, Installation Support, and Protocol. 

a. Incumbent. Dr. Renee Roman

5. Strategic Analyst. The incumbent serves as a principal staff advisor to the Director, Vice 

Director and Chief of Staff, Defense Logistics Agency, responsible for synchronization of 

operational activities and issues across the Agency’s Senior Staff and Primary Logistics Field 

Agency (PLFA) Leadership as well as providing high-level studies, projects, advice, and support 

involving critical and time-sensitive strategic matters. These efforts are internal and external to 

both DLA and overall DoD operations. The incumbent must combine comprehensive logistics 

experience and expertise, broad awareness of current and projected capabilities in support of 

logistics, in-depth knowledge of DLA, DoD, and private sector management effectiveness 

concepts, tools, techniques and processes, and significant experience in strategic planning and 

communications.

a. Incumbent. Mr. Marty Binder

6. Joint Secretariat. The Joint Secretariat is responsible for maintaining an understanding of 

all major operational and management issues and to be able to engage HQ Staff and PLFA 
Office of the Director

15

leadership and action officers to ensure all plans and products developed for senior leadership 

approval are aligned with the Agency’s strategic vision and the Director’s intent. Liaises with 

other DLA headquarters groups, DLA activities, and external agencies on strategic issues, 

ensuring communication of the purpose, scope, and maturity to the enterprise strategic plan and 

synchronization of effort across the agency. Also conducts special studies and analyses.

a. Personnel

(1) Chief: CDR Jay Turner, USN, September 2013-April 2014

(2) Chief: LTC Richard Marzan, USA, April 2014-June 2015 (projected)

(3) Dr Harold Raugh, Historian

 (4) Ms. Chrissie Reilly, Historian

(5) Rotational Developmental Assignments:

(a) Ms. Melissa Safreed, January-July 2014

(b) Ms. Debra Dobbins, March-September 2014

(c) Ms. Eileen Granfield, September 2014-March 2015

7. Director’s Staff Group. The Director’s Staff Group is responsible for providing 

administrative and office management support to Agency senior leadership and their immediate 

staffs.

a. Incumbent Personnel.

(1) Mr. Juan Aldape

(2) Ms. Stephanie McRae

(3) SSG Antoinette Bansen 

8. Protocol. Protocol is responsible for providing protocol support and advice to all DLA 

Headquarters senior leadership and staff directorates.

a. Incumbent Personnel.

(1) Ms. Denise M. Young, Chief

(2) Mr. Randy Taft

 (3) Ms. Sandy Haynes

(4) Ms. Elsie Valdes
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

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BLANK PAGE
DLA Land and Maritime

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Defense Logistics Agency

DLA Land and Maritime

Fiscal Year 2014 Annual Historical Report

1. Introduction

The overall goal of DLA Land and Maritime is to provide world class support to U.S. military 

and other customers in a fiscally responsible manner while maintaining a sharp focus on the 

culture and development of its associates.

2. DLA Land and Maritime

DLA Land and Maritime is the headquarters for DLA's Land and Maritime supply chains

with over 2,500 employees in 37 locations around the world. It manages 1.9 million items,

and supports more than 17,600 customers throughout the military services, civil agencies and

other DoD organizations. DLA Land and Maritime awards over 651,000 contracts annually, 

supports nearly 1,900weapon systems, and handles more than 9 million orders annually,

with annual sales topping $3 billion.The DSCC installation operated by DLA Land and

Maritime and DLA Installation Support Columbus leverages the resources of state, federal and

defense organizations such as the Ohio National Guard, the Veterans Administration

Hospital, and the Defense Finance and Accounting Service, which are collocated on or near

the site. DSCC installation activitiesfocused on sustained and timely warfighter support,

stewardship excellence and workforce developmentthroughout CY14 to provide supplychain

logistics excellence.

DLA Land and Maritime’s mission is to provide worldwide logistical support to its customers -

the Military Services. Land and Maritime directly supports Navy Surface and Subsurface, and 

Army and Marine Corps customers through dedicated customer relations while working with 

numerous suppliers to fulfill requirements for assigned stock classes across the DoD. 

Furthermore, DLA Land and Maritime provides logistical services directly to Navy shipyards 

and Army/USMC industrial sites.

The successful accomplishment of this mission requires a well-trained, diverse workforce and a 

professional culture that supports high expectations. This is depicted by DLA Land and 

Maritime’s organizational values shown below:
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Fiscal Year 2014 Annual Historical Report

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The scope of the DLA Land and Maritime organization and the results of its efforts are 

shown below:

Culture

Workforce Development
DLA Land and Maritime

19

With the mandating of $13.1 billion in budget cuts by the end of FY19, DLA Land and 

Maritime’s FY14 Annual Operating Plan primarily concentrated on stewardship responsibilities 

while retaining focus on Operating Forces. DLA developed the graduated Big Ideas plan, and 

DLA Land and Maritime moved aggressively to meet the objectives of the mandate. Big Ideas 

encompasses four major focus areas to achieve these savings—Land and Maritime has developed 

levers that focus efforts on stewardship while improving support to the warfighter through Land 

and Maritime’s workforce. 

DLA Land and Maritime outlined a definitive course of action in achieving stewardship 

responsibilities, nested within the Agency guidance. Land and Maritime is dedicated to doing 

this while still supporting its overall mission; by continuing to foster good relations with Army, 

Navy, Air Force, and Marine Corps organizations and collaborating to provide world class 

support to the Services, Operating Forces, and Industrial Sites. 

Furthermore, while maintaining high level of customer support, Land and Maritime continued to 

meet all challenges caused by updating operating systems and business processes with Eprocurement roll-outs, Demand Planning changes, uncertainties surrounding any future 

sequestration or imposed furloughs, and alterations to job role growth in the retail environment. 

Throughout FY14 and beyond, Land and Maritime executed all the Big Ideas while 

simultaneously adapting and rolling out new processes and procedures.

Our Mission

Supporting the Warfighter: We are America’s Combat Logistics Support Agency. We provide 

effective and efficient worldwide support to warfighters and our other customers.

Our Vision

Warfighter-focused, globally responsive supply chain leadership

Our Values

Warfighter Needs Guide Us

Integrity Defines Us

Diversity Strengthens Us

Excellence Inspires Us

The DLA Land and Maritime Way:

We provide Warfighter Logistics Excellence through Accountability, Teamwork, Urgency, 

Agility, and Innovation built upon a Commitment to Integrity, Diversity, and Mutual Trust and 

Respect".
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Fiscal Year 2014 Annual Historical Report

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3. DLA Land and Maritime -- Organization Chart

4. DLA Land and Maritime -- Key Personnel

 Commander 

John G. King, RDML, SC, USN 

 Deputy Commander 

James M. McClaugherty 

 Executive Officer

LT Daniel Hinkley, USN

 Deputy Commander

James M. McClaugherty

 Acquisiton Executive

Milton K. Lewis 

 Chief of Staff

Col Michael Tannehill, USAF 
DLA Land and Maritime

21

 DLA Land & Maritime Internal Review Office 

Melanie Schmechel 

 DLA Land & Maritime Office Of Equal Employment & Diversity 

Charles E. Palmer 

 DLA Land & Maritime Readiness & Business Operations 

Griffin Warren 

 DLA Land & Maritime Small Business Office 

Colleen Ross

 DLA Land & Maritime Business Process Support Directorate 

Barbara Robertson 

 DLA Land & Maritime Procurement Process Support Directorate 

Mark Brown 

 DLA Land Supplier Operations Directorate 

Col John Shanklin, USA 

Linda K. Johnson 

 DLA Maritime Supplier Operations Directorate 

CAPT Roger Alvarez, USN 

Ben Roberts, Deputy 

 DLA Counsel – Land And Maritime

Gwendolyn M. Hoover

 Associate Counsel, Acquisition 

Susan E. McKee, Associate Counsel 

 DLA L&M Engineering & Technical Support Division 

Todd Lewis 

Dave Szczublewski , Deputy 

 DLA L&M Stragtegic Acquisition Programs Directorate 

CAPT Kerry Pearson, USN 

Stephen Rodocker, Acting Director 

 DLA Finance-J8C

Oscar N. Mitchell, Jr., Comptroller 

Janet Bunnell, Deputy

 DLA Installation Support at Columbus 

Timothy A. Harris, Site Director 

Daniel L. Bell, Deputy Site Director 

 DLA Land Customer Operations Directorate

COL Sherrie Bosley, USA

Eugene Williams, Deputy

 DLA Maritime Customer Operations Directorate

Don Schulze (Acting)

CDR Johnetta Thomas, USN, Acting Deputy

 DLA Product Test Center

Dennis (Keith) Robinette
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Fiscal Year 2014 Annual Historical Report

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 DLA Land DLR Procurement Operations, Warren 

Valerie Johnson 

Victor Vaughn, Deputy 

 DLA Maritime Supply Operations, Pearl Harbor 

CDR Tim Benesh, USN

Robert Stewart, Deputy 

 DLA Maritime Supply, Storage & Distribution Operations, Portsmouth 

LCDR Derwin Proby, USN 

Donna Shepheard , Deputy

 DLA Maritime Supply Operations, Norfolk 

CDR Gwen Willis, USN 

Joseph Long, Deputy

 DLA Maritime DLR Procurement Operations, Mechanicsburg 

Brian Watkins 

 DLA Maritime Puget Sound

CDR Karen Stabelfeldt, USN

Brian Mueller, Deputy

 DLA Land Dlr Procurement Operations, Aberdeen 

Doug Nevins 

Stephen Bianco, Deputy 

5. FY 2014 Initiatives

a. Big Idea 1. Improve Customer Service

During fiscal 2014 operations record level customer service achievements were realized

through an aggressively restructured operationalstrategy. MaterialAvailability metrics

recorded historical highs while back orders simultaneously reflected targeted lows.

DLA Land and Maritime has continued to provide and improve complete logistics solutions 

worldwide. This was accomplished by improving acquisition agility and continuing efforts to 

fully support weapon system requirements.

DLA Land and Maritime's concentration on its top order drivers (Super Kids) across the 

organization prompted the creation of specialized process teams that prioritized activities across 

all functional areas, breaking down performance barriers while improving efficiencies. The 

team's creativity enabled the organization to achieve Material Availability (MA) metrics above 

90% for three months in FY14, the highest ever for the organization. In addition, they fueled an 

unprecedented MA milestone for the entire catalog of items during the same period. This 

performance was driven by unparalleled availability for forecasted items, including several 

months above 92%. Customer satisfaction remained the key emphasis as Land and Maritime 

measurably reduced the age of customer backorders, cutting the average age by 39 days, 

reflecting a reduction from 28% of the backorder population to a record low 18%.
DLA Land and Maritime

23

DLA Land and Maritime sharpened its focus on the Director's "Big Ideas" challenge and 

continues to dramatically improve mission effectiveness through a comprehensive review and of

its operational strategy and philosophy. Incorporating focused efforts on improving Material 

Availability, Back Order reduction, Time to Award, Improved Customer Service and Audit 

Readiness have contributed to Land and Maritime achieving record operational readiness metrics 

during FY 14.

Embracing the Director's Operational Order 12-05 and Time to Award initiatives, DLA Land

and Maritime's Technical and Quality communities contributed to significant reductions in 

Release Strategy Workflows (tech blocks), substantially reducing procurement lead times.

From the beginning of the OPORD in September 2012 to November 2014, Land and

Maritime orchestrated a 70% reduction in on-hand RSWs and a decrease to 23% of overall

tech blocksfor released procurements. Efforts to gain these efficiencies included 1.6 million

Material Master (MM) updates, 105,000 Technical Ops Review (TOR) code updates, First

ArticleTest template development for auto solicitation and proactive work completed by

Product and Product Data Specialists. Additionally, the development of improved reporting

tools for supervisor use, additional workforce training and the use of internal engineering

assets in lieu of the Military Service Engineering Support Activities (ESAs) aided the

Tech/Quality efforts.

Land and Maritime led the Enterprise in reducing procurement cycle-times under the Time to

Award Initiative in FY 2014. Land and Maritime rose to the challenge by continually

questioning "the way things have always been done," attacking "white space" and finding

new ways to "Delight Customers" through cycle time reduction. Through concerted efforts

Land and Maritime ended FY14 with a 33% average reduction across the segments.

Automated award lead times were reduced to 12 days, representing a 29% reduction. The

average time for Manual, Small purchases shrank by 23% and Large, Manual lead times were

reduced by 9%. Cycle times for Long-Term Contracts under $10 million plummeted by 48%

to an average of 181-days. LTCs over $10M posted the largest improvements, logging a 58%

reduction and pushing cycle times downward to an average of 252 days. This performance

demonstrates Land and Maritime's ability to achieve reductions in lead times, while

maintaining OPORD 12-05 successes inreducing Back Orders and sustaining high Material

Availability rates.

(1) Tires Contract

Successor Initiative (TSI) contract. TSI is a Supply Chain Integrator contract which provides 

planning, warehousing, distribution, retreading, and tire carcass disposal services for DLA 

managed tires. During FY14 TSI successfully provided nearly 210,000 tires at a Fill Rate of over 

97%, exceeding the contract requirement of 95%, while achieving a Material Acceptance Rate of 

99.99%. The acquisition strategy used by DLA Land and Maritime saved $3.37M in 

transportation costs during FY14. DLA Land and Maritime hosted the 2014 Tires and Tubes 

Industry Outreach Forum that was attended by 50 industry representatives from 30 different 

suppliers. DLA met with industry representatives in one-on-one meetings to receive supplier 

feedback and discuss possible process improvements to the DLA Tire Program and associated 

contracts. The insight gained from this forum was used to solicit and award over 35 tire supply
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

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contracts, valued at $433M, which directly support the Supply Chain Integrator and TSI

program. TSI is an example of DLA Land and Maritime providing world-class customer

supportthrough innovative contractingsolutions.

(2) Retail Support 

DLA Land and Maritime's Forward Stocking initiative was an exceptional example of

organizational brainstorming and decisive action in direct response to a high priority customer 

requirement. The Maritime Customer Operations Directorate within DLA Land and Maritime 

plays a pivotal role in providing program and supply support for the weapons systems that keep 

Naval forces mission- ready. This solution-oriented posture was demonstrated in DLA's response 

to the Navy's request to position essential parts in support of mine countermeasures (MCM), 

ballistic missile defense (BMD), and patrol coastal (PC) ships closer to the war zone. 

Collaborating with Navy partners, DLA identified key readiness drivers and items that receive 

high operational demand in key areas of operation. DLA Land and Maritime established a 

dedicated Forward Stocking Team to accomplish the DLA Director's objective of achieving and 

maintaining 100% on-hand material availability for BMD, PC and MCMs operating in the Fifth, 

Sixth, and Seventh Fleet areas of operation. The team aggressively reviewed demand and supply 

plans and expedited backordered parts. The Director's 100% Material Availability directive

has been achieved and sustained.

The Navy consistently identifies the Nuclear Reactor Program (NRP) as its top priority weapon 

system. The safe and reliable operation of the nuclear reactors that power Navy ships and 

submarines is of vital importance to the country's national defense. The Maritime Customer 

Operations Directorate leads the support strategy incorporating extraordinary measures to ensure 

high levels of performance. Land and Maritime maintains a Performance Based Agreement with 

Naval Supply Systems Weapon Systems Support for NRP supply support, which serves as a 

model across DLA for performance in a collaborative partnership. DLA Land and Maritime's 

NRP Team has a mandated 95% Material Availability (MA) requirement, which the organization 

has successfully achieved for 84 consecutive months (through Oct 14). The team's efforts ensure 

material availability to all NRP customers and consistently provide the best value with on-time

delivery throughout DLA.

DLA Land and Maritime's effective support of the Littoral Combat Ship (LCS) platform has 

been astonishing, with a continuous focus on warfighter support and structuring the right 

inventory to support the needs of the LCS program. The Maritime Customer Operations 

Directorate Weapon System Support Managers, in conjunction with DLA Distribution, 

effectively coordinated system transactions enabling the receipt of transferred LCS 1 material of 

more than 2800 DLA NSNs. Their estimated value was $3.5M and they were transferred from 

Lockheed Martin's storage facility to DLA Distribution Center in San Diego. The LCS Squadron 

Commodore (CAPT Randy Garner,) publicly lauded the Maritime Customer Operations team's 

support efforts by relaying "There are a significant number of supply support challenges 

associated with a new ship class and your team has been an essential partner is assisting us 

overcome them. They routinely go above and beyond to ensure the highest level of readiness to 

my ships. Thank you for your team's support."
DLA Land and Maritime

25

b. Big Idea 2. Decrease Direct Material Costs by the FY14 Target Through Agile 

Acquisition Techniques

Innovative planning and acquisition techniques drove down costs to the Services, and reducing 

the direct costs of material enables Land and Maritime to lower costs to the customers. 

Levers involved were: Demand Planning (to improve forecasts of material requirements to 

ensure only Strategic Material Sourcing); Leveraging Commercial Capabilities; Performance 

Based Logistics (PBLs); First Destination Transportation and Packaging Initiative; and Value 

Management/Breakout.

Efficient operations within DLA Land and Maritime are critical to providing timely, cost

competitive service to the customer. Land and Maritime's Maritime Customer Operations

Directorate and the DLA detachments at Norfolk, Puget Sound, and Pearl Harbor Naval

Shipyardssuccessfully executed critical actionsto transfer storage and distribution missions,

functions, and associated personnel from the detachments to DLA Distribution. This interagency realignment of approximately 350 associates allowed DLA to gain further

effectiveness and efficiencies while providing seamless end-to-end distribution and

warehouse support to its industrial customers.

c. Big Idea 3. Decrease Operating Costs 

By reducing distribution and transportation costs and achieving efficiency gains from personnel, 

ADP, facility maintenance, travel, and IT, Land and Maritime was able to reduce its operating 

costs.

DLA Land and Maritime has programmed progressive operational costs reductions into its FY 

14 operations strategy. FY14 reductions in non-labor accounts, such as travel and training, 

accounted for a total of $2.7 million in operational savings. Land and Maritime saved an 

additional $5.4 million in personnel costs, which totals $8.1 million in FY14 operational savings. 

Material savings were driven by several factors - including $3.2 million in Reverse Auction 

savings, $13.93 million in savings for Procurement Systems Process Improvements, $18 million 

in Strategic Sourcing savings, and $52.6 million in savings generated by Value Management 

projects. Total material savings for FY14 was $87.8 million, and when combined with the 

FY12/13 savings Land and Maritime achieved a total of $10.2 million in operational savings and 

$226.7 million in material savings, more than doubling the combined savings goals.

DLA Installation Support Columbus (DSCC) works closely with its tenant organizations to 

disseminate energy conservation policies/ideas, to involve all organizations in reducing energy 

consumption and encourages full participation in the energy conservation process. DSCC 

intensified its energy conservation efforts by introducing additional initiatives during FY14. 

DSCC reduced overall energy consumption by an additional 4.9% from FY13 and has 

consistently reduced consumption each year for a total reduction of 41.9% below the FY03

operational baseline.
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

26

DSCC has exceeded the Energy Independence and Security Act of 2007 goal of reducing facility 

energy intensity by 30% and expects further improvements in operational efficiency. DSCC also 

reduced FY14 water consumption by 4.5% from FY13 and will continue reduction efforts in 

these areas. DSCC has achieved these noteworthy energy savings through enacting efficient 

solutions including installing new heaters and heater controls to provide only the required level 

of heating to large warehouse buildings; replacement of incandescent "EXIT" signs with LED 

signs; and replacement of drive motors that serve the air conditioning systems inthe

installation's data center.

d. Big Idea 4. Reduce Inventory

Land and Maritime worked to reduce the enterprise logistics footprint by drawing down or 

disposing of excess stock. For FY 13, Land and Maritime disposed of over $1 billion in 

inventory, reducing inventory to below the $3.2 billion goal. Land and Maritime’s inventory 

reduction plan in FY 14 was designed to result in continued systemic reduction of Potential 

Reutilization Stock (PRS), increased coordination with the services on Contingency Retention 

Stock (CRS) reduction and greater reduction of Economic Retention Stock (ERS). 

Inventory reduction was a huge FY14 Enterprise effort. Land and Maritime exceeded its FY14 

goal, processing over $415 million in disposals. The final “Big Idea” tenet is Audit Readiness 

and Land and Maritime met all milestones for its FY14 Plan to Stock assertion by exceeding 

90% of all work products delivered on time. This included the generation and validation of 26 

Process Cycle Memorandums, dozens of Standard Operating Procedures and hundreds of 

‘evidential matter’ documents that fully described key internal processes, allowing us to 

standardize operations while discovering and correcting process inefficiencies.

e. Big Idea 5. Achieve Audit Readiness

DLA Land and Maritime continues to support the DLA directive to be completely auditable 

through the Audit Readiness process. Land and Maritime efforts include the generation and 

validation of 26 Process Cycle Memorandums and numerous Standard Operating Procedures.

These documents fully describe the internal processes allowing Land and Maritime to 

standardize operations, while discovering and correcting process concerns and inefficiencies. 

These efforts provided leadership with an enhanced understanding of Land and Maritime's 

financial situation, enabling more precise operational decisions and improved customer support.

6. Small Business 

DLA Land and Maritime has used the skills and abilities of its vast network of small businesses 

to better support customers. It continued to emphasize socio-economic and small business 

programs particularly those targeting opportunities for the service disabled veteran owned small 

business community. 

DLA Land and Maritime's Small Business Office expanded customer service efforts beyond last 

year's stellar performance. The office created a Small Business Set-aside “Tool Box” on its 

acquisition portal to consolidate policy guidance, posted how-to guides and sample documents to 
DLA Land and Maritime

27

assist buyers in conducting rigorous market research and developing recommendations for full, 

partial or socio-economic program set-asides for small businesses. This one-stop resource was 

designed to help generate more awards to small businesses, while also helping buyers minimize 

their award application time. Small Business Office specialists conducted five on-site, two-day 

training opportunities during FY 2014.

The training enabled the office to reach 146 new small business vendors and covered such topics 

as: doing business with DLA; DIBBS quoting and source approval requests. Additionally, the 

Small Business Office sponsored a series of 19 webinars streamed to 332 small business 

suppliers and representatives on topics related to doing business with DLA and successfully 

managing contract awards.

7. Workforce Development

Land and Maritime continued to imbue the DLA Land and Maritime Way in all operations 

throughout the organization by improving the culture across DLA Land and Maritime and 

improving the knowledge, skills, and abilities of the workforce. Land and Maritime’s strong 

workforce supports the execution of all initiatives and efforts throughout. 

DLA Land and Maritime is totally committed to developing its workforce and providing 

opportunities for career advancement. The organization uses a structured Tri-level Mentorship 

Program as one of its workforce development tools. The Level I Program is one year in duration 

and currently has 18 protégés assigned. The Level I Program is open to GS-09/WG-09 

associates. The Level II Program is 9 months in duration and currently has 54 proteges who 

graduated in 2014. The Level II Program is open to GS- 9-12 associates. The more 

comprehensive Level Ill Program is two years in duration and 11 protégés graduated from that 

program in 2014. The Level Ill program is open to GS-13-14 Associates.

DLA Land and Maritime has an employee Apprenticeship Program (PACERS) aimed at

recruiting new additions to the Land and Maritime workforce. Junior in grade, PACERS are

recruited for Contracting, Supply, Product Specialist and Industrial Specialist career fields. Two 

PACER classes, each approximately 5 months in duration, are conducted each year. After 

completing training graduates are moved to identified directorates for on-the-job training for the 

remainder of the 2 year program. Ninety-two PACERS are currently assigned and 822 PACERS 

have graduated from the DLA Land and Maritime Program since 2003. The most recent 

quarterly customer satisfaction survey shows the PACER, supervisor and trainer program 

satisfaction rates at 99%.

DLA's “Operation Live Well,” formerly “Healthy Base Initiative,” efforts remain the focal point 

for the installation and its workforce. Installation associates continue to benefit from ongoing 

initiatives encompassing increasing the quantity and availability of wellness activities to the 

addition of multi-use infrastructure. A new community center facility recently opened to 

accommodate personal event planning, family sponsored functions as well as activities to include 

installation blood drives. The Morale, Welfare and Recreation office supports a wide range of 

both social and entertainment opportunities for installation associates. From Farmer's Markets to 

selected era music-themed luncheons, discounted sporting events, and a host of other outdoor 
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Fiscal Year 2014 Annual Historical Report

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activities from horseback riding to hiking - all are available at subsidized rates to installation 

associates. Attention to providing these important quality of life opportunities remain an 

emphasis area for the installation's leadership. 

DLA Installation Support (DSCC) is constructing a "physical fitness/walking trail" as part of the 

installation's static weapons display area. The one-fifth mile, fitness/walking trailwill will 

include four exercise stations and will be conveniently located adjacent to the installation's main 

population areas.

8. Protect the Supply Chains from Non-Conforming, Counterfeit, and Low Quality Parts 

and Material

DLA Land and Maritime has continued to protect the supply chains from risks and mitigate those 

risks to customers including enhancing efforts to prevent, detect and eliminate non-conforming 

items, to include counterfeit material & unauthorized product substitution.

Supply Chain integrity has remained a vitalfocal point in Land and Maritime operations.

DLA established a counterfeit prevention team in 2012. Since initial implementation of this

plan, microcircuits have been DNA-marked by suppliers, distributors, or third party marking

organizations. With direction from the DLA Director, the DLA Product Test Center

Electronics lab shouldered the task to DNA mark all microcircuits.

DLA Land and Maritime immediately created a plan and formed a cross-functional team to

complete the tasking. Implementation is on track to have full capability established by midDecember of 2014 and a full operational process in place by mid-January 2015. Once

incorporated, DLA will no longer issue solicitations requiring suppliers to provide DNA

marked microcircuits. Land and Maritime will DNA-mark all microcircuits in accordance

with procedures established byApplied DNA Sciences. The three-year average number of

microcircuits to be processed is about 85,000 components per year.

This new process will create a centralized, streamlined process within DLA that reduces the

overall cost of the marking initiative and will ensure maximum participation of industry

partners who supply microcircuits. Most importantly, the process will increase quality control

while improving product availability for the military customers.

9. Diversity and Inclusion

Land and Maritime leverages its Diversity through strong Equal Employment Opportunity 

(EEO) Special Emphasis Programs (SEP) and inclusionary management behavior and practices 

in order to improve diversity participation rates in one third of the 12 HQ EEO AOP diversity 

metric indicators

DSCC's Federal Women's Program maintains a mentoring program with Whitehall-Yearling

High School where installation employees provide tutoring services and work with the youth

to help prioritize career aspirations. Installation employees also coordinate with Broadleigh
DLA Land and Maritime

29

Elementary School to contribute to their annual winter clothing drive. These are ongoing

collaborations to keep communication lines open with installation neighbors.

Land and Maritime maintains active participation in the Whitehall Chamber of Commerce

meetings where it works to increase awareness of economic opportunitiesfrom neighborhood

business owners to the workforce.

DLA Land and Maritime maintains a Memorandum of Agreement with the City of Whitehall 

to provide required Emergency Medical Services to the On-Scene Commander in cases where

additional capabilities are needed.

10. Environmental and Real Property Stewardship

During FY14, DLA Land and Maritime executed 106 sustainment, renovation, modernization 

(SRM) and service contract actions totaling more than $27 million. On-going activity continued 

to focus on preservation and optimization of existing facilities, the reduction of energy 

consumption and support of DLA Land and Maritime Detachment sites. Leadership continued to 

actively pursue reduction of the facilities footprint through the planend demolition of 

underutilized space. Four buildings were identified for demolition as part of an FY15 project and 

two additional warehouses are scheduled for FY16 demolition. 

The Installation continued to operate throughout FY14 without environmental citations, notices 

of violation, or fines. Key environmental improvement efforts included the creation of an 

Environmental Coordination Committee as well as several Object and Target Action Plans. The 

Environmental Coordination committee includes representatives from all Installation Support 

divisions and tenant organizations. Adoption of the Object and Target Action plans provided a 

vehicle to prioritize and engage pressing environmental concerns by employing planning and 

progress assessments. An example of this was the successful remediation of the Installation’s 

new Yearling Road Gate site, dictated by surprise environmental findings during the construction 

phase. All actions were flawlessly completed and approved by United States Environmental 

Protection Agency. DSCC’s Environmental Office worked with the Army Corps of Engineers to 

complete the remediation, while minimizing the impact on the project’s budget and work 

schedule. Moreover, regulatory inspections and audits continued to verify Installation 

compliance with federal and state regulations, DoD or DLA instructions and various facility 

plans. 

DLA Land and Maritime also maintained a 175 workstation Alternate Work Facility on the 

DSCC Installation throughout the reporting period in a “Ready State” at all times. Equipped with 

computers, active phone lines and expansion capabilities, access to the Secret Internet Protocol 

Router Network (SIPRNet), classified and non-classified video teleconferencing capability and 

classified voice capability, the facility serves as an immediately available alternative operations 

site for DLA Land and Maritime. Monthly capability testing is conducted to ensure availability. 

A reception plan and an individual “User’s Guide” are also maintained for the facility. This 

facility is not only an Alternate Facility for DLA Land and Maritme in Columbus, Ohio, but for 

six other DLA Activities as well. Six highly successful facility use exercises were conducted 

during the past 12 months. Additionally, the facility has been used by the Federal Emergency 
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

30

Management Agency (FEMA) and Ohio Army National Guard during emergency situations 

requiring reliable communications capabilities. 

11. Safety and Health

As the first DLA site to be OSHA certified as a Voluntary Protection Program (VPP) 

organization, DLA Installation Support Columbus places the safety of its workforce at the top of 

its priorities and employs an active safety office to coordinate the Installations safety efforts. The 

Installation’s safety office created an Installation safety council that involves representation at 

monthly and quarterly safety meetings from all Installation tenants. Safety mishaps are tracked 

by unit safety representatives and reviewed by leadership to identify any emerging safety 

concerns. Safety training is emphasized and closely monitored. A preventive safety video 

involving the Flag-level Installation Commander is updated each year and mandatory viewing 

for all DLA associates. 

Targeted safety exercises addressing general and emergency (fire/weather/hazardous spills) 

preparedness were conducted throughout the year to keep safety foremost in the minds of the 

workforce. These exercises were coordinated with local safety organizations and included the 

use of the Installation’s Giant Voice and other integrated systems. The Installation Emergency 

Manager compiled after action reports (AAR) that outlined any corrective action planning 

needed following each event. 

12. Security

The Installation opened the new Yearling Road Gate, a new main access control point. This 

state-of-the-art gate was designed and commissioned by the Army Corps of Engineers Protective 

Design Center and included: a gate house; visitor control center; vehicle search office; and 5-ID 

check booths capable of accommodating the Defense Biometrics Identification System.

DLA Installation Service Columbus (DSCC) opened this new main access control point in 

response to recommendations from the Defense Threat Reduction Agency (DTRA) and Joint 

Integrated Vulnerability Assessments (JSIVA). The new entrance now meets all current 

standards in Anti-Terrorism guidance. DSCC coordinated the security enhancement and its 

potential impact with installation neighbors: the City of Whitehall, City of Columbus (Water 

Division) and the American Electric Power, all of whom supported the new construction.

With the gate, DSCC implemented the Defense Biometric Identification System (DBIDS), an 

electronic card scanning system that strengthens installation security and access procedures. 

DBIDS verifies the authenticity of all DOD identification cards through the use of handheld 

scanners at all installation access control points. DBIDS provides enhanced capabilities to 

security personnel, enabling them to determine the identity and fitness of individuals requesting 

installation access. DBIDS tracks local barments and driving suspensions as well as those of 

other installations using DBIDS. It also checks all personnel against the National Crime 

Information Center and the Terrorist Watch List. The deployment of DBIDS has resulted in 

numerous personnel who pose a potential threat to the security of DSCC and the safety and wellbeing of its personnel, being denied access. 
DLA Land and Maritime

31

Finally, during FY14 DLA Installation Support Security and Emergency Services Division 

conducted an installation-wide full scale emergency Active Shooter exercise to assess critical 

installation emergency response procedures. The exercise’s focus was to fine-tune the 

effectiveness of safety procedures protecting the more than 9,000 people located on the 

Installation. The exercise was evaluated, observed and controlled by members of the DSCC 

Police, Fire and Ohio State Highway Patrol (OSHP) and observers from DLA HQ. All 

participating organizations reacted to the emergency announcements and implemented specific 

emergency action plans (EAP) which included locking down installation work areas. 

13. Community Relations

DLA Land and Maritime's community service included donating 23,427 pounds of food, an 

increase of 13,812 pounds from the previous year, to the 2014 Feds Feed Families program. 

Land and Maritime associates also participated in the 2014 Combined Federal Campaign 

generously contributing $225,000 to needy charities. 

DSCC’s Federal Women’s Program maintained a mentoring program with Whitehall-Yearling 

High School where installation employees provided tutoring services and assistance to the youth 

to help them prioritize career aspirations. Installation employees also coordinated with the local 

Broadleigh Elementary School to contribute to their annual winter clothing drive. DLA Land and 

Maritime also actively participated in local Whitehall Chamber of Commerce meetings to 

increase awareness of economic opportunities from neighborhood business owners to the 

workforce. Finally, DLA Land and Maritime maintained a Memorandum of Agreement with the 

City of Whitehall to provide required Emergency Medical Services to the On-Scene Commander 

in cases where additional capabilities are needed. DLA Land and Maritime responded 141 times 

in FY14 to off-base community members requiring aid. 

These ongoing collaborations keep communication lines open with Land and Maritime’s 

important Installation neighbors.

14. Awards Won

Charles Besore received the 2014 Department of Defense Diminishing Manufacturing Sources 

and Material Shortages Program Achievement Award; Lead Petty Officer Nakeia Brinson (USN) 

selected for 46th Annual DLA Winner for Outstanding DLA Personnel in Grades – GS/WG/WL 

1 thru 6; Roy Pitman GS-12 selected for 46th Annual DLA Winner for Outstanding DLA 

Personnel in Grades – GS/WG/WL 7 thru 12; Dr. Robert Boggs selected for 46th Annual DLA 

Winner of DLA Award for Achievement in EEO by a Supervisor or Manager; Tammy MunroReyes selected for 46th Annual DLA Winner of the Level 3 DLA Leader Award; DLA Land and 

Maritime High Value Contracts Branch I selected for 46th Annual DLA Acquisition Excellence 

Award for Excellence in Pre-Award Contracting; Jonathan Sanders selected for 46th Annual 

DLA Acquisition Excellence Award for Excellence in Contract Administration; DLA Land and 

Maritime’s Sourcing and Qualifications Division was awarded the DLA Director’s Strategic 

Goals Award for the fourth quarter of FY14; DSCC was the recipient of two American Electric 

Power awards and the Defense Logistics Agency award in recognition of energy savings; DSCC 

earned three financial awards in FY14 – two from the local electricity service provider; the Land 
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

32

Readiness Room and Emergency Buy Team received the Federal Executive Association of 

Columbus and Central Ohio, “Excellence in Customer Service Award” for their leadership, 

dedication, and lasting accomplishment to government service. 
DLA Troop Support

33

Defense Logistics Agency

DLA Troop Support

Fiscal Year 2014 Annual Historical Report

1. Introduction

The Defense Logistics Agency (DLA) Troop Support FY14 Annual Historical Report outlines 

the actions taken across Troop Support’s five supply chains, Subsistence, Clothing & Textiles, 

Construction & Equipment, Medical and Industrial Hardware, during FY2014 to support the 

needs of our customers around the globe. 

DLA Troop Support collaborates with the Military Services, the Combatant Commanders and its 

multitude of industry partners to balance Service requirements with industry capability in order 

to successfully meet warfighter demand. 

In addition to direct customer support, DLA Troop Support actively supported the agency’s goals 

to reduce inventory, decrease operating costs, decrease material costs, improve customer service 

and achieve audit readinesss.

a. Mission

DLA Troop Support provides effective and efficient support to our customers and warfighters 

with subsistence, clothing/textiles, construction and engineer equipment, medical supply and 

hardware solutions in order to allow them to achieve their global missions.

b. Vision

Warfighter-focused, globally responsive, fiscally responsible supply chain leadership.

c. Values

Our values mirror DLA's foundation for all we do, our basic guiding principles: Warfighter 

needs guide us, integrity defines us, diversity strengthens us, excellence inspires us.

2. Organization Overview

DLA Troop Support is one of six DLA primary-level field activities, and operates five separate

and distinct supply chains: Subsistence, Clothing & Textiles, Construction & Equipment, 
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

34

Medical, and Industrial Hardware. Sales for FY14 totaled $13 billion accounting for 

approximately one-third of all DLA sales. Staffing includes 2,232 civilians, 71 active duty

military personnel and 50 reservists.

DLA Troop Support provides a wide variety of essential items to members of the armed forces,

including utility and dress uniforms, headgear, footwear, personal protective equipment,

heraldics, tents and shelters, operational rations and fresh foods, force protection items, diving

gear, safety and rescue equipment, fire and emergency equipment, storage, HVAC, plumbing,

heavy equipment, metals and lumber, targets for training, pharmaceuticals, medical surgical and

medical equipment items, medical capital equipment, and consumable repair parts.

Using long-term contracts, tailored logistics support programs, prime vendor relationships, and

traditional contracts, DLA Troop Support procures products needed to meet the requirements of 

our warfighters serving around the globe. The Philadelphia-based field activity also oversees

two forward-based commands, DLA Troop Support Europe & Africa and DLA Troop Support

Pacific, headquartered in Germany and Hawaii, respectively, as well as forward-based offices

throughout the continental United States. Through this forward presence, DLA Troop Support

embeds employees in the continental U.S. and overseas with customers and key industry partners

to personally ensure we meet or exceed the needs of our service members.

3. DLA Strategic Focus Areas

a. Warfighter Support: Deliver agile and responsive logistics solutions to warfighters.

b. Stewardship Excellence: Manage DLA processes and resources to deliver effective 

warfighter support at optimal cost.

c. Workforce Development: Foster a diverse workforce, supporting culture and related

personnel practices to deliver sustained mission excellence.

4. Keys to Success/End State

Concentrating on the Enterprise strategic focus areas of warfighter support, stewardship 

excellence and workforce development, DLA Troop Support leadership identified the keys to 

success in optimizing performance to support the focus areas and ultimately drive the 

organization towards its desired end state. Leadership used various workforce engagements to 

communicate these keys to success to personnel throughout the organization.

a. Keys to Success

(1) Maintain the integrity of the procurement and acquisition process as we drive 

down prices, drive up quality and maintain schedule

(2) Develop the workforce to meet the requirements of the 21st Century business 

environment... take advantage of every training and education opportunity... mentor two 

levels down
DLA Troop Support

35

(3) Maintain our warfighter/customer focus... never lose sight of why we are here

(4) Communicate up, down, laterally... customers, suppliers and stakeholders

b. End State. Become the provider of choice for goods and services DLA Troop 

Support currently provide and can provide... focus on solutions.

5. DLA Troop Support Organization

The DLA Troop Support Command leadership team includes:

 Brigadier General Steven A. Shapiro, USA, Commander

 Mr. Richard A. Ellis, Deputy Commander

 Mr. William J. Kenny, Executive Director, Contracting & Acquisition 

Management

 Mr. Robert A. Ratner, Chief of Staff

DLA Troop Support experienced a changeover of several military and civilian directors across 

the supply chains and staff offices. The following leaders assumed their positions during fiscal 

year 2014:

CAPT Ricardo Wilson, SC, USN Director, Construction & Equipment

Col Patrick Owens, USAF Director, Clothing & Textiles

Col Glenn Chadwick, USAF Director, Industrial Hardware

COL Alex Zotomayor, USA Director, Medical

COL Richard Debany, USA Director, Procurement Process Support

Mr. Dan Keefe Dep. Director, Procurement Process Support

Mr. Nelson Alvarez J6 Liaison Officer
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

36

The DLA Troop Support organization structure follows:

6. DLA Troop Support Strategic Initiatives

During FY 2014, DLA Troop Support Commander, Brigadier General Steven Shapiro identified 

various strategic initiatives critical to ensuring the success of the organization’s mission. During 

the course of the fiscal year, various long range customer, industry and workforce engagements 

were identified and conducted directly related to successfully supporting these initiatives.

• Building the Bench... succession planning, recruitment and retention, training and 

education for the DLA Troop Support workforce

• National contracts awarded... Medical and Subsistence 

• Worldwide Maintenance, Repair & Operations (MRO) Prime Vendor coverage

• Global Medical Prime Vendor contract award 
DLA Troop Support

37

• Solidify DLA Troop Support’s relationship with the Defense Health Agency (DHA) and 

Veterans Affairs (VA)

• Expand C&T reach into supply chain... Recruit Training Centers (RTC), Central Issue 

Facilities (CIF), Organizational Clothing & Individual Equipment (OCIE) ownership

• Commercial Fastener Integrator (CFI)/Fastener Performance Based Logistics (PBL) 

timeline and award

• Time to Award

• Performance... backorders, material availability, inventory reduction

• Audit Readiness milestones

• Big Ideas... operational and materiel savings

• Continued engagement of Continuous Process Improvement (CPI) program

7. DLA Troop Support Supply Chain 2014 Accomplishments

DLA Troop Support played a significant role in the Agency’s support of Operations United 

Assistance (OUA). In total, DLA Troop Support provided $68.4 million in support providing 

items across all supply chains. Items procured include tents, netting, boots, gloves, personal 

protective equipment, fresh fruits and vegetables, Meals, Ready-to-Eat (MREs), bottled water, 

cots, graders, gravel and mechanical items. 

The following highlights major accomplishments by Troop Support supply chain during FY14: 

Subsistence

Completed a complex wartime food service transition in Afghanistan. The new prime vendor, 

Anham FZCO, took full responsibility for servicing the region in December 2013 supporting 

more than 140 locations in Afghanistan. The 66-month indefinite delivery, indefinite quantity 

fixed price contract with economic price adjustment is estimated at $8.1 billion. Actions taken 

ensured troops in Afghanistan continued to receive outstanding support throughout the difficult 

contractor transition period and beyond.

Evolved Subsistence Prime Vendor support in theater from primary use of the Northern 

Distribution Network (NDN) to a multimodal (surface-air) concept shortening the transportation 

pipeline CONUS to Afghanistan by an average of 50 percent or 90 days.
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

38

Developed the Integrated Food Service concept and stood up a specialized team in support of an 

evolving food service environment and modernization of the food service program.

Issued 40 CONUS Subsistence Prime Vendor awards with a projected annual savings of $70 

million.

Developed the Subsistence National Contract program. The first award resulted in price 

reductions of 20 percent. Future awards will result in similar savings.

Instituted programs to purchase locally produced products including fresh fruits and vegetables 

in Afghanistan, Jordan and Oman.

Maintained high fill rates and customer support levels while managing the Subsistence Prime 

Vendor during the Afghanistan drawdown.

Clothing & Textiles

Completed the implementation of RFID technology at all eight Services Recruit Training 

Centers. This program reduced the time required for recruits to receive their clothing and returns 

over 500,000 hours annually to the Training Commands.

Completed award of all contracts required to reduce the DLA distribution footprint for Clothing 

and Textiles items by moving inventory out of government storage in the Defense Distribution 

system and into commercial Third Party Logistics (3PL) providers. Distribution costs will be 

reduced by $5 million annually.

Established the Shade Council of Colonels and Captains as an engagement venue to address 

Service and industry concerns; completed 5 of 7 major items.

Supported Navy’s conversion to Fire Resistant Uniforms for shipboard use. Developed 

prototypes and supported shipments of approximately 400,000 coveralls within a year.

Supported the Army’s conversion to the new OCP uniforms ordering over 450,000 sets of Army 

Combat Uniforms (ACUs).
DLA Troop Support

39

Construction & Equipment

Awarded nine long term contracts in six separate product lines (Agricultural Equipment, 

Construction Equipment, Environmental Equipment, Fire & Emergency Vehicles, Material 

Handling, Trucks and Trailers and Cranes) in support of the Heavy Equipment Program. 58 total 

contracts now supporting these product groups.

Supporting worldwide coverage for Maintenance, Repairs and Operations (MRO), awarded 

MRO contracts for Japan, Korea, Hawaii and the Southeast U.S. region. Collaborating closely 

with the DLA Troop Support Europe and Africa Office, also awarded the MRO contract for the 

Africa Region.

Supported procurements totaling $17.3 million in the Central Asian States. Items procured 

included transmission conductor cables, transformers, generators, plywood, water heaters, HDPE 

pipe, smooth bar and rebar.

Implemented and supported successful GSA item transfer. Supported largest volume of items 

across all supply chains. 35,000+ lines of FSG 80 requisitions filled/2800+ awards in support of 

FSG 80.

Medical

Implemented the DoD Pharmaceutical National Contracts Program that in FY 14 awarded 20 

Pharmaceutical National Contracts and realized a cost reduction of $14.5 million. 

Awarded the $26 billion Global Pharmaceutical Prime Vendor Program that will reduce DoD 

pharmaceutical costs by a minimum of $100M/year.

Managed the National Prime Vendor Program that reduced DLA customer distribution fees 

realizing $48.2 million in savings.

Executed the DoD 2014 Flu Vaccine Program distributing 4 million doses valued at $40 million 

to warfighters and other DoD beneficiaries worldwide.
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

40

Expanded business by $12 million by purchasing medical stocks for the Centers for Disease 

Control in support of their Strategic National Stockpile Program.

Industrial Hardware

Awarded a contract to support the Commercial Fastener Initiative (CFI) initiative which changes 

supply strategy from depot direct to customer direct. The contract supports procurement and 

delivery of specific industrial hardware items for customers worldwide. 

Awarded the follow-on Navy Industrial Prime Vendor contract to SAIC. The 10-year, $500 

million maximum value contract supports 38,000 items for Naval Air Depots Jacksonville, 

Cherry Point, & North Island.

Completed market research for the AAC J Fastener Project seeking to streamline customer-direct 

purchase orders for items coded AAC J. 

Completed a total of 16 projects under the Strategic Fastener Initiative. This contract was 

implemented to reduce the number of single item long term contracts managed and gain greater 

efficiencies.

8. Financial

As reported in the Annual Operating Plan, the FTE goal for FY14 was 2,379, actual FTE number 

for FY14 was 2,232. The travel goal was set at $3.292M. Actual for FY14 was $2.159M. The 

training execution goal was set at $2.042M and the actual for FY14 was $575K.

Net Operating Result (NOR) tracks DLA’s revenues and expenses monthly, assesses

performance against the budget, identifies variance early in the fiscal year and allows the Agency

to take corrective actions necessary to achieve NOR targets. DLA Troop Support measures

performance against the plan. For DLA Troop Support, the NOR forecasted for FY14 was 

$248M. The Actual NOR was $268M for FY14.

Cash Plan Performance (CPP) is DLA’s total disbursements minus DLA’s total collections. A

negative CPP implies that more cash was collected than disbursed and increases the Cash

Balances. A positive CPP implies that more cash was disbursed than we collected and decreases

the Cash Balance. For DLA Troop Support, the forecasted CPP for FY14 was $538M. The Cash 

FY14 Actual was $569M.

Overall, DLA Troop Support performed favorably against these FY14 financial goals.
DLA Troop Support

41

9. FY14 Sales Breakdown

DLA Troop Support sales for FY14 totaled $13.0 billion. Sales by supply chain breakdown as 

follows:

Subsistence: $2.8 billion

Clothing & Textiles: $1.8 billion

Construction & Equipment: $2.3 billion

Medical: $5.6 billion

Industrial Hardware: $600 million

10. Recruitment and Workforce Development

DLA Troop Support workforce is vital to current and long-term success in effectively supporting 

warfighters at optimal cost. The organization must enable the workforce to capitalize on their 

skills, experience and potential. During FY14, DLA Troop Support continued efforts to develop 

and maintain a competent workforce of logistics and acquisition professionals. 

Recruitment strategy: Developed a management plan by reviewing organizational structure, 

FTEs and controlled personnel costs. Skills analysis accomplished by meeting with directors, 

managers and contracting officers so requirements for future recruitments could be identified.
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

42

Building the bench: Established the DLA Troop Support Mentoring/Succession Program to 

prepare upcoming leaders to fill senior level positions in the future. Starting at the GS-14 level, 

participants will rotate for a six-month period to gain experience and skills across various 

disciplines in the organization. Deployment of the program to the GS-13 level will occur in the 

future.

Professional development: DLA Troop Support encourages and supports professional 

development opportunities for the workforce. Leadership workshops and training was provided 

to managers and supervisors during FY14 to improve communication skills.

Workforce development: Based on feedback from the workforce regarding employee 

development, DLA Troop Support command established a plan for the enhancement of 

contracting skills, emphasizing Life Cycle Logistics career path and establishing a DLA Troop 

Support Diversity Program.

11. Continuous Process Improvement (CPI)

During the fiscal year, DLA Troop Support continued to enhance its Continuous Process 

Improvement competency. Numerous projects for improving processes across the organization 

were identified and completed. Additionally, personnel in both the supply chains and staff 

offices received CPI training.

FY14 CPI Projects Identified Savings

Personnel Trained Green Belt Certification Black Belt Certification

12. Support to Small Business

DLA Troop Support continued to strengthen its relationship with the small business community 

and special emphasis program partners. In the face of increased obstacles and many regulatory 

changes, small businesses continued to demonstrate the ability to successfully complete for a 

wide variety of DLA Troop Support acquisitions.

• Overall awards to small businesses exceeded $1.75 billion, including $144 million 

awarded to small businesses located in Historically Underutilized Business Zones 

(HUBZones).

• Awards to small disadvantaged and small women owned business concerns totaled more 

than $350 million.

• Awards to veteran-owned small business concerns totaled more than $172 million.
DLA Troop Support

43

• Other related socioeconomic programs include awarding contracts to non-profit agencies 

such as those under the AbilityOne Program – National Industries for the Blind (NIB) 

and SourceAmerica which employ individuals who are blind or have other severe 

disabilities. DLA Troop Support continued to be a major supporter to these organizations 

awarding over $111 million to AbilityOne entities. DLA Troop Support is also a strong 

supporter of Federal Prison Industries (UNICOR) with over $44 million awarded to 

UNICOR facilities.

• Six DLA Troop Support employees received awards from the National Industries for the 

Blind for support of programs for the blind under the AbilityOne Program.

• In 2014, small businesses concerns as well as AbilityOne partners continued to be a vital 

part of DLA Troop Support’s robust industrial base across its five supply chains.
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

44

BLANK PAGE
DLA Aviation

45

Defense Logistics Agency

DLA Aviation

Fiscal Year 2014 Annual Historical Report

1. Organizational Overview

A primary-level field activity of the Defense Logistics Agency, DLA Aviation is the aviation 

demand and supply chain manager for DLA and much of the Defense Department. Employing 

more than 3,500 civilian and military personnel in 18 locations across the United States, it 

provides aviation weapons systems and environmental logistics support to the defense aviation 

community and other government customers.

DLA Aviation supports more than 1,900 weapon systems with focused support to 143 major 

weapon systems and is the U.S. military’s integrated material manager for more than 1.1 million 

national stock number items, industrial retail supply and depot-level repairable acquisitions. 

DLA Aviation supports nine major product lines: engines and airframes; instrumentation and 

gauges, electrical hardware; chemicals and petroleum products; green products; industrial gases 

and cylinders; ozone depleting substances; topographic, hydrographic, aeronautical maps/charts 

(digital and print) and industrial plant equipment services.

DLA Aviation delivers unique customer support capabilities through its Industrial Plant 

Equipment Services (IPES) and Mapping Customer Operations divisions. IPES operates the only 

industrial plant equipment management facility and maintenance depot in the federal government 

dedicated to procuring, rebuilding, retrofitting, and repairing metalworking machinery for the 

Department of Defense and other federal agencies. Mapping Customer Operations delivers 

exceptional supply and demand chain support by providing digital and print map products to our 

military services and other geospatial intelligence customers.

DLA Aviation directly supports the warfighter through weapons systems management, industrial 

retail supply and strategic acquisition support operations. Using a comprehensive demand 

planning process and tailored logistics solutions, its priorities align with customer priorities.

What Guides Us
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

46

DLA Aviation is responsible for supply at six major industrial maintenance, repair, and overhaul 

facilities and for storage operations at three. Our five depot-level reparable (DLR) procurement 

organizations execute procurements of more than $1.9 billion annually. DLA Aviation is “The 

Power Source Behind the Force.” As such, we strive to deliver excellence in performance, and 

responsiveness in support of our worldwide customer network.

The activity’s dedication to customer support and a results-driven management style resulted in 

an effective and efficient supply chain management organization despite a fiscally constrained 

environment and a 3 percent reduction in personnel in fiscal 2014. 

2. DLA Aviation Organization Chart/Leadership

DLA Aviation’s Annual Operating Plan (AOP) is an outward-focused, strategic instrument 

reflecting the “Voice of the Customer.” The plan targets specific objectives to deliver highimpact, customer-based outcomes. DLA Aviation Commander Brig. Gen. Mark K. Johnson, 

United States Air Force, continuously engages military service senior leaders and asks for their 

input. By listening and committing to acting on and delivering the desired customer outcomes 

below, DLA Aviation is able to align its priorities with our customers’ priorities.

a. Voice of the Customer

 Deliver niche, targeted support solutions
DLA Aviation

47

 Provide responsive procurement

 Strengthen supportability analysis

 Redefine retail procurement

 Engage and communicate

DLA’s business functionality consists of six basic core processes representing key functions in 

supply chain management. These processes enable DLA Aviation to interact, support and meet 

warfighter requirements. 

Core Processes

Our AOP is built around four pillars that align with performance objectives and key initiatives as 

well as the agency’s strategic focus areas. Each pillar addresses DLA Aviation’s commitment to 

its customers; the agency’s strategic focus areas; Aviation’s core mission areas; and its 

processes, resources, and people.

Our Supporting Pillars
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

48

b. Mastering Basic Business

To master basic business, DLA Aviation implemented various initiatives in 2014 which 

improved key performance metrics such as material availability (MA) and unfilled orders. 

The activity implemented a workload prioritization schema, followed by all functional 

disciplines, focused on maximizing MA. This management tool is based on business drivers such 

as the Annual Demand Frequency (ADF) of the items and Required Award Dates (RAD). The 

schema, also known as the Planning Prioritization Table, resulted in a 21 percent reduction in 

purchase requests (PR). 

A second web-based commercial tool, Operational Assessment Support Information System 

(OASI), was implemented throughout DLA Aviation and significantly improved the material 

availability of critical items by providing DLA Aviation supply planners a 'one-stop-shop' view 

of essential Enterprise Business System (EBS) data, alerting them to situations needing their 

attention, and providing them with a decision-making tool to aid in resolving potential future 

material availability issues. 

DLA Aviation also instituted the use of MA-Driver Reviews. The reviews provide item-level 

visibility of national stock numbers (NSN) affecting DLA Aviation’s MA performance. 

Additionally, the reviews promote a team-approach to identifying solutions and process 

improvements. 

Combining the three tools above with the dedication and expertise of the entire DLA Aviation 

Team, the activity’s overall percent improvement for MA was 87.9 percent in fiscal 2014, 1.4

percent higher than in fiscal 2013. The activity saw its most dramatic procurement improvements 

in the categories of repeat offenders (improved from 14.6 percent to 60.51); F-16 Wing support 

(77.18 percent to 94.63) and industrial support to the Air Force’s Air Logistics Complex at Hill 

Air Force Base, Utah (93.5 percent to 96. 2) 

DLA Aviation senior leaders embraced the agency’s Time to Award (TTA) initiative to improve 

basic business and provide the best support possible to our warfighters. TTA initiatives produced 

a 26 percent reduction in administration-lead time for procurement actions and a 79 percent 

decrease in aged purchase requests. Overall, PRs on-hand was reduced by 34 percent from 

35,932 in September 2013 to 23,498 in September 2014.

Process improvements were initiated in the areas of technical/quality (TQ) blocks, with a oneday turnaround goal, and no quote procurement challenges. The activity improved TQ by 

developing processes that prevented TQ blocks from occurring. The processes include PR prescreening; using mass data updates; attacking technical operations review codes; creating and 

implementing processing time standards; establishing team goals and engaging TQ supervisors 

in the training and tracking of performance. These actions resulted in a 61percent reduction in 

blocks and a 25 percent reduction in PR processing time in fiscal 2014. 
DLA Aviation

49

PRs without a quote were reduced by 13 percent and the average age of no quote PRs were 

reduced by 44 percent during the same timeframe by establishing Procurement Readiness Teams 

and a No Quote Team. The No Quote Team, focusing on open solicitations, makes 

approximately 1,000 contacts per week, reaching 82 percent of all contractors that have not 

provided a quote. Forty percent of all calls made by the team in 2014 resulted in receipt of a 

quote and in a contract award within a week from contact.

3. Retail Supply Excellence

By focusing on basic business, the activity also accomplished significant gains in achieving retail 

supply excellence. In fiscal 2014, DLA Aviation expanded its internal elevation process and 

standardized use of the enterprise’s non-procurement policy for procurement actions, ensuring 

command involvement from first-line supervisors through the commander. This proactive focus 

resulted in a 41 percent decrease in backorders greater than three years and a 96 percent decrease 

in aged-backorders (PRs over 270 days old).

Retail Supply Excellence works hand-in-hand with rightsizing inventory and was achieved by 

increased responsiveness to our industrial customers. In fiscal 2014, DLA Aviation expanded its 

relationships with its military customers. The activity improved Army depot support through 

focused item support and a joint contracting effort to provide a single contract for repairables and 

consumables. The activity worked closely with the Navy on the successful implementation of 

the agency’s Inventory Management Stock Positioning (IMSP) initiative; and also with inventory 

investments to sustain aged aircraft weapon system platforms and lean forward in inventory 

investments on growing Navy systems. Through relationship building, DLA and Air Force senior 

leaders came to a shared understanding of the end-to-end procurement process and developed 

targeted solutions to provide greater value in stock positioning and the development of long-term 

contacts (LTCs) based on weapon system platforms. 

Brig. Gen. Johnson’s leadership helped DLA Aviation Industrial Support Activity (ISA) 

commanders obtain additional command and control authorities impacting procurement authority

from DLA Headquarters that allowed the activities to significantly reduce backorders at Air 

Force Air Logistics Complexes supported by DLA Aviation at Hill Air Force Base, Utah; Tinker 

AFB, Oklahoma; and Warner Robins AFB, Georgia. Overall, DLA Aviation reduced Air Force 

industrial maintenance backorders by 20.3 percent in fiscal 2014. In addition to significant 

industrial backorder reductions, DLA Aviation exceeded its 90 percent Air Force Order 

Response Time (ORT) goal by increasing ORT from 86 percent in March 2013 to over 92 

percent by July 2014. The ORT goal is to receive an item within two days of a requisition 

request.

Rightsizing inventory and enhanced support was, in part, achieved by successful implementation 

of Spiral 2 of the agency’s IMSP initiative at DLA Aviation industrial support activities colocated and supporting Navy Fleet Readiness Centers (FRCs) in San Diego, California;

Jacksonville, Florida and Cherry Point, North Carolina.

As evidenced by metrics and customer feedback, the teaming, cooperation and collaborative 

efforts by the IMSP Rollout Team, the impacted employees and the customer created a dynamic 
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that ensured successful implementation. Since IMSP Spiral 2 implementation, DLA Aviation has 

experienced increased performance as evidenced by the execution of more than 1,500 local 

procurement actions of aeronautical and non-production items at FRC Southwest, FRC 

Southeast, and FRC East. 

The activity also improved supply chain management and reduced costs through the efforts of a 

DLA Aviation employee, Fred Boyd, Jr. Mr. Boyd used his expertise to recommend changes to 

the agency’s Packaging Determination Table enabling the agency to implement its First 

Destination Transportation and Packaging Initiative eight months ahead of schedule. This 

innovative thinking by a DLA Aviation employee enabled DLA Aviation to drive new 

commercial packaging requirements to future procurements. In fact implementation of the 

recommended packaging changes resulted in saving of $2.3 million on a DLA Aviation LTC by 

using a less expensive alternate packaging method. Implementing new packaging requirements 

in fiscal 2014 allowed DLA Aviation to reduce vendors packaging costs, which contributed to a 

lower price of the item and significant material costing saving for DLA.

During fiscal 2014, DLA Aviation created, developed, and coordinated a Retail Supply Manual 

(RSM) that standardized retail support processes and procedures for DLA enterprise-wide. It

documents DLA’s broader retail support philosophies, roles and responsibilities, processes, and 

other initiatives and tasks agreed to by DLA, the Air Force and the Navy. The RSM also 

supplements Air Force and Navy policies and procedures that DLA follows to provide industrial 

support. Retail supply standardization ensures correct interfaces with DLA’s standard systems, 

like Enterprise Business System and Distribution Standard System. The manual allows agency 

employees to bring greater interoperability, improved quality, effectiveness, and provide the 

"single-face" interaction needed with DLA’s industrial customers. 

The DLA Aviation developed manual provides direction that will be followed agency-wide, 

from the four hardware supply chains in Philadelphia, Columbus, Ohio; and Richmond, Va., to 

the DLA Distribution Centers that are co-located with the services’ industrial operations.

4. Reduce Supply Chain Risk 

While rightsizing its inventory, DLA Aviation made great strides in reducing supply chain risk, 

improving retail supply support to our industrial customers, and ensuring continual customer 

support. 

DLA Aviation continued implementing two innovative employee-developed inventory 

management tools which enhanced the organization’s ability to dispose of inventory while 

maintaining customer support and readiness.

One of the tools, the DLA Aviation Disposal Database (DADD), provides a one-stop shop for all

disposal actions and also led to the implementation of the Inventory Risk Indicator Score (IRIS) 

Tool. The IRIS tool provides disposal recommendations by assessing the risk each item 

possesses based on its Annual Demand Frequency, mission system criticality, production-lead 

time, and inventory position. With the success DLA Aviation experienced in fiscal 2014 using 
DLA Aviation

51

the IRIS tool, the activity was asked by DLA Headquarters to spearhead an agency-wide 

implementation of the tool. 

Using the tools above, workforce expertise in inventory management and close collaboration 

with our customers, DLA Aviation met its fiscal 2014 inventory goal of $4.8 billion. A reduction 

of .2 billion in net inventory value, which included $690 million in inactive inventory disposals 

despite inventory increases from IMSP implementations at the Navy FRCs. Furthermore, by 

implementing an agency print-on-demand initiative in its Mapping Customer Operations 

Division, the activity also disposed of 98 percent of its excess or dormant paper map stock. 

DLA Aviation’s Industrial Plant Equipment Services Division (IPESD) continued to reduce 

supply chain risk by ensuring deploying vessels had equipment in an operational status to allow 

Sailors greater independence while at sea. Their unique skills and capabilities provide a one of a 

kind service for machine shops onboard naval vessels. During 2014, division employees 

completed multiple shipboard visits to complete machine assessments, perform preventative 

maintenance, and make repairs. In addition to machine shop services, the IPESD procured 

equipment for the full spectrum of Federal Supply Group 34 (metalworking) and awarded over 

$49 million dollars in new equipment contracts in support of all of DoD.

DLA Aviation also reduced supply chain risk with a deliberate focus on two key areas: strategic 

contracts and small business. 

In 2013, DLA Aviation developed a three-year strategic contracting plan. In fiscal 2013 DLA 

Aviation executed 16 major strategic efforts that included 3,521 NSNs with a value of $111

million per year. In fiscal 2014 DLA Aviation awarded 12 strategic contracts and added or

renewed more than 12 thousand items to existing LTCs. DLA Aviation LTC obligations rose 

from 34 percent in fiscal 2013 to 43 percent of the total overall aviation spending in fiscal 2014.

DLA Aviation’s strategic contracting efforts included a mix of weapons systems, commodityand supplier-focused acquisitions. These contracts will deliver acquisition efficiencies, cost 

savings, lead-time reductions, and customer support improvements. Currently, 70 percent of 

DLA Aviation’s 30,000 monthly PRs are covered through a LTC or are made via an automated 

award. DLA Aviation’s strategic sourcing plan is expected to reduce manual workload by 

55,000 purchase requests over the next five years based on projected LTC growth in fiscal 2015. 

DLA Aviation is only one of the three consumable-based field level activities that met the 

agency’s fiscal 2014 small business goal - even when the nature of aviation platforms are heavily 

sole-sourced to large business. Employee innovation and dedication to increasing small business 

opportunities and growing the supplier base resulted in the activity exceeding the agency’s goal 

of 25 percent by 3.1 percent in fiscal 2014, ending the year with 28.1 percent of contracts 

awarded to small businesses. An example of employee innovative set-asides is the Hub and 

Blade Virtual Prime Vendor contract valued at $78 million. The Hub and Blade set-aside 

included a non-traditional partial small business set-aside using a Federal Acquisition Regulation 

(FAR) deviation and a waiver to the non-manufacturer rule to enable a small business set-aside. 

DLA Aviation’s fiscal 2014 small business dollars awarded are more than $100 million higher 

than last year’s.
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5. Strengthen Aviation’s Culture

DLA Aviation leadership’s commitment to employees is a central part of its AOP and this 

commitment was reflected in the agency’s 2014 Denison Climate/Culture survey. DLA Aviation 

obtained the highest culture survey score amongst DLA activities. The activity obtained high 

marks and improved scores in the areas of empowerment, organizational learning, strategic 

direction and intent, and agreement. DLA Aviation’s cultural improvement was a direct result of

leadership involvement and a people-oriented approach to business. 

DLA Aviation’s culture promotes an environment where each employee, at every level of the 

organization, has the opportunity to lead every day. Professionalism demands that employees

respond to inquiries directly and with the best information available. The activity cultivates a 

“one call” customer service ethos. This “one call rule” directly relates to responsiveness and 

dramatically improves our customer interactions. 

The strength of DLA Aviation’s culture, indeed of the realization of our employees full potential, 

requires recognition of the value of every employee’s contribution to our mission, as well as an 

investment in their health and welfare.

Multiple times in fiscal 2014, DLA Aviation employees and teams were recognized by the DLA 

director for achieving the agency’s strategic goals of decreasing direct material costs, decreasing 

operations costs, rightsizing inventory, improving customer service and achieving audit 

readiness. 

Examples of fiscal 2014 employee accomplishments and recognition on an enterprise- and 

Department of Defense level include:

 DLA Aviation/Honeywell Team recognition for awarding a long-term strategic Joint 

Opportunity Contract (JOC) valued at almost $4 billion over a nine-year period. The 

contact will cover nearly 3,000 parts for 10 separate Honeywell business units and drive 

savings of $46 million over the life of the contract. This JOC will facilitate meeting 

acquisition objectives by providing world-wide support, improving production-lead time, 

production capacity, forecasting and material availability; and by reducing 

administrative-lead time, unfulfilled orders, set-up costs and unit pricing.

 DLA Aviation’s Reverse Auction Team members were recognized with the agency’s 

Reverse Auction Team for conducting approximately 5,000 reverse auctions with more 

than 3,500 suppliers, yielding agency savings ranging from four to 20 percent, surpassing 

the expected savings goal of $100 million. In fiscal 2014, DLA Aviation completed 337 

reverse auctions for a savings of $7.6 million.

 DLA Aviation’s FY14 Strategic Source and Plan Team was recognized for developing a 

cohesive forward-looking strategic sourcing plan that increases strategic spending from 

35 percent to more than 60 percent. The total savings of which are nearly $541 million 

including inventory holding, setup costs, and obligation authority avoidance.
DLA Aviation

53

 Crystal Ober, the deputy director of the DLA Aviation Office of Small Business 

Programs, received the Defense Acquisition Workforce Individual Achievement Award 

for transforming DLA Aviation’s small business program through her efforts to guide 

strategic acquisitions, mentor acquisition and small business specialists, develop and 

implement small business policies, increase workforce awareness, and increase small 

business program commitment.

 DLA Aviation’s Engineering and Technology Division was recognized for its Value 

Management Program which saved $88.2 million in fiscal 2014 by creating competition; 

through cost avoidance in material testing; and by providing support for pricing 

negotiations. 

In building a rich, proud legacy of excellence as a highly performing, world class supply chain 

organization, DLA Aviation leadership recognizes its success depends on maintaining a strong, 

diverse, well-rounded, healthy workforce, operating in a safe and secure environment. As such, 

the AOP includes objectives and actions strengthening the activity’s business and professional 

culture. 

DLA Aviation’s commitment to investing in its future workforce was evident in fiscal 2014. 

DLA Aviation budgeted $1.8 million to provide career enhancing training through leadership 

development programs, college tuition assistant programs for graduate and post-graduate degree 

programs, as well as professional development, career enhancing courses, and an internal 

rotational program. In 2014, DLA Aviation trained 95 Defense Logistic Agency’s Pathways to 

Career Excellence Program interns, accepted five employees into the annual DLA Aviation 

rotation program, and hired 21 college-level interns. Through information sharing with 32 local 

higher education institutions, 70 of our interns came from the local area. 

Working collaboratively, DLA Human Resources, DLA Aviation Procurement Process Support, 

and DLA Aviation’s Career Development Branch offered monthly procurement and 

technical/quality seminars, revamped training courses for the Fair and Reasonable Pricing 

Course and the Aviation Academy. The Career Development Branch also developed and offered 

Behavior-based Interviewing Courses at the supervisory and employee levels, as well as 

developed and offered a Basic DLA 101 Course to our military partners at Fort Lee and Langley 

Air Force Base, both in Virginia. 

Valuing diversity in the workforce, DLA Aviation provides quarterly diversity events. In 2014, 

seminars and workshops promoting diversity and inclusion were offered to senior leaders and 

employees covering topics such as “MACRO-MICRO Inequities: When BIG and Little Things 

Matter; Holocaust National Days of Remembrance Observance; History: LIVE by The 

Conciliation Project; and Lesbian, Gay, Bisexual, and Transgender: LGBT 101 Respect for ALL 

in the Workplace. Toward the end of fiscal 2014, DLA Aviation restructured its Special 

Emphasis Program to encourage more employee involvement in events. Under the new structure, 

each Aviation directorate will be responsible for developing workforce education and observance 

opportunities for the entire workforce.
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To ensure customer support in the face of potential workplace disruptions and realizing in this 

global environment that the workplace is not tied to a specific location, DLA Aviation’s 

workforce is telework ready, with approximately 2,138 employees being on approved telework 

agreements in 2014, and a 10.7 percent participation increase for the same time period.

As the highest ranking military official on Defense Supply Center Richmond, DLA Aviation 

Commander Brig. Gen. Johnson is also the installation commander and as such is responsible for 

creating a safe work environment and encouraging a sustainable, healthy lifestyle among 

employees.

DLA Aviation, and by extension Defense Supply Center Richmond (DSCR), is participating in 

the Voluntary Protection Program (VPP) Challenge, a three stage pilot initiative established by 

the Occupational Safety and Health Administration encouraging maximum employee, union and 

management involvement in work place safety. The challenge program outlines the requirements 

needed to develop and implement effective safety and health management systems through 

incremental steps. The three stages are: Stage I - assess, learn, and develop; Stage II -

implement, track, and control; Stage II -reassess, monitor, and improve. 

For fiscal 2014, the installation has completed 79 percent of the requirements for Stage II 

completion. During the year, management and leadership involvement in the challenge program 

increased and efforts were started to have all DLA Activities on the installation under one 

uniformed safety program. DSCR continues to maintain incident rates 82 percent below industry 

averages as a result of its steadfast, continuous compliance with safety practices outlined in the 

DSCR Safety and Occupational Health Plan. 

During fiscal 2014, Congress approved $87 million in funding for Phase 1 of the new DLA 

Aviation Operations Center on DSCR. DLA Aviation was also able to secure $6 million dollars 

in funding for a new installation access control point that will meet current anti-terrorism and 

force protection standards.

DLA Headquarters continued to support employee health and wellness by authorizing a 

maximum of one hour per day, up to three times per week, to engage in wellness or fitness 

activities. Realizing that a healthy lifestyle improves employees’ wellness, morale and 

productivity, DLA Aviation supports the DLA Headquarters’ Health and Wellness Program and 

allows employees three hours weekly to participate in the program. DLA Installation Support at 

Richmond’s Family, Morale, and Welfare Program operates a world class fitness center and 

hosts an active Wellness Program focused on health screenings, programs and seminars geared 

toward healthy eating, stress management, overall wellness and monthly Family Advocacy 

Program seminars.

Walking is encouraged year round with Walking Statistics Charts providing distance measures 

and calories count for the various walking trails available on center. In fiscal 2014, 419 

employees received free pedometers to track their walking progress. For each quarter in 2014 

fitness class participation increased, ending the year with 7,836 participants. Overall, the Fitness 

Center usage for fiscal 2014 was 49,293 and 2,891 for Health and Wellness programs, screenings 

and activities. 
DLA Aviation

55

DLA began an audit readiness (AR) initiative in 2012 after Defense Secretary Leon Panetta 

issued a memorandum to senior Defense Department leaders that brought attention and focus to 

the goal of making DoD financially auditable by 2017. As an agency, the DLA Director 

determined that DLA would be ready by 2015.

DLA Aviation successfully ensured a continued AR focus and forward progress with both 

command officials and employees by including and tracking its actions under its Strengthen 

Aviation’s Culture pillar as part of the activity’s AOP.

In a Dec. 2 Audit Readiness Roadshow, Simone Reba, program manager for DLA Audit 

Readiness, recognized DLA Aviation’s great progress in assisting with actions supporting the 

2014 completion of six DLA AR assertions: Environmental Liabilities Management; General 

Fund Statement of Budgetary Activity; Hire to Retire Travel; Plan to Stock: Inventory Existence 

and Completeness; Acquire to Retire: Internal Use Software; and Inventory Service Provider.

During fiscal 2014, DLA Aviation along with DLA Finance-Aviation and DLA Installation 

Support at Richmond reviewed and flowcharted its processes, reviewed outcomes, developed 

and performed internal control tests of the design and effectiveness of its processes. 

As part of the initiative to prepare DLA for an external audit in 2015, DLA Aviation continues to 

develop standard operating procedures, provide training and where possible standardized 

processes and procedures, and training to be reviewed and approved by DLA enterprise process 

owners.

6. Member of Richmond Metropolitan Community

DLA Aviation fosters relationships with the logistics community to help shape and grow 

logistics throughout the Greater Richmond Metropolitan region. During fiscal 2014, DLA 

Aviation hosted a Logistics Education Summit for local colleges and universities as part of its 

ongoing efforts to explore opportunities in logistics and supply chain management to further the 

professional development of its current and future workforce. More than eight educational 

institutions participated as well as the Defense Acquisition University, Army Logistics 

University, and two professional logistics organizations: the Commonwealth Center for 

Advanced Manufacturing and the Commonwealth Center for Advanced Logistics Systems. 

During the past year, members of the DLA Aviation workforce also exchanged information with 

companies and other federal organizations, including Richmond Logistics, Richmond’s Future, 

Amazon, Fort Lee, the Crater Planning District Commission, The Virginia Chamber of 

Commerce, Richmond Area Top III, the Logistics Officer Association, and the Virginia Military 

Advisory Council. 

DLA Aviation is an active member of the Fort Lee Civilian Military Council and the Jefferson 

Davis Association. Members in these organizations provide a platform to work with military and 

community leaders to inform them of the DLA Aviation mission and Defense Supply Center 

Richmond installation. In fiscal 2014, DLA Aviation briefed community leaders on its upcoming 

DSCR military construction projects and worked with the Crater Planning District Commission 

updating the installation’s economic impact study. In 2013, the latest year data was available for; 
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DSCR supported 3,840 jobs in the area. The study revealed that DSCR continued an annual 

contribution of over a quarter of a billion dollars to the area economy through wage and nonwage expenditures. 

Defense Logistics Agency Installation Support at Richmond’s Environmental Office continued 

to host DSCR Restoration Advisory Board (RAB) meetings in fiscal 2014 to discuss its ongoing 

Installation Restoration Program with representatives from the local community, the 

Environmental Protection Agency and the Virginia Department of Environmental Quality. The 

center established an Installation Restoration Program in 1978 and in the mid-1980s was 

designated as a Superfund Site. Its designation as a Superfund Site was as a result of waste and 

industrial disposal methods used prior to 1980. DSCR has 13 areas of environmental concern, 

called operable units (OUs), which are classified as either soil or groundwater OUs. The DLA 

Aviation commander and the installation site-director also hosted several employee town halls 

during the year providing historical background and updating the workforce on ongoing OU 

remediation actions. 

In conclusion, DLA Aviation efforts in 2014 established new benchmarks within the activity 

related to mastering its core business; providing retail support, reducing supply chain risk; and 

improving the organization’s culture. The DLA Aviation workforce successfully executed the 

activity’s 2014 Annual Operating Plan through communication, collaboration, accountability, 

and effective performance management at every organizational level. A proven performer, DLA 

Aviation had $3.8 billion in sales during fiscal year 2014; processed 2.4 million customer orders 

during the year; and conducted business with more than 5,395 suppliers as part of its support to 

its 16,234 customers.
DLA Energy

57

Defense Logistics Agency

DLA Energy

Fiscal Year 2014 Annual Historical Report

1. Introduction

DLA Energy enjoyed a very successful year in FY14, providing world-class global support 

through delivery of nearly 100 million barrels of fuel, 112 million cubic feet of helium and over 

1.1 billion kilowatt hours of renewable power. DLA Energy also expertly supported the 

Afghanistan drawdown, ensured un-interrupted service to troops in combat and increased Days 

of Supply inventory levels to the warfighter.

In FY14 DLA Energy identified how it will directly contribute to each of the DLA Big Idea 

initiatives. 

 Be smart buyers of the right stuff by reducing the direct cost of fuel across all fuel 

products through the use of agile acquisition techniques leveraging commercial supply 

chains, without creating redundancy.

 Improve process and productivity by reducing distribution and transportation costs and 

achieve efficiency gains from personnel, automated data processing, and facility 

maintenance and information technology.

 Clean out the attic by attacking both War Reserve Material and Operational Inventory 

through better leveraging of commercial infrastructure and agreements, along with 

reviewing and adjusting strategic requirements.

 Delight our customers by improving total service delivery and measuring ourselves by 

customer standards.

 Proving it by demonstrating our commitment to transparency and accountability along 

with using audit readiness as a lever to identify and drive future improvement 

opportunities.

In FY15 DLA Energy will build on those successes by Rebalancing additional fuel stocks, 

infrastructure and investment to the Pacific AOR in order to significantly reduce warfighter risk, 

while simultaneously supporting CENTCOM during the remaining drawdown. Our continuing 

partnerships with Department of Energy and Department of Defense agencies will lead and 

procure biofuels and other alternative fuel sources. DLA Energy will also seek to delight our 

customers by cutting materiel and operating costs. 
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Fiscal Year 2014 Annual Historical Report

58

We provide effective and efficient worldwide support to the warfighters...and to all our 

other customers as well!

2. DLA Mission, Vision and Values 

Mission: Warfigher support--we are Amercia’s Combat Logtistics Support Agency,

providng effective and efficient worldwide support to warfighters and other customers 

Vision: Warfighter-focus, global response, fiscal disciplined supply chain leadership

Values: Warfighter needs guide us, integrity defines us, diversity strengthens us, 

and excellence inspires us
DLA Energy

59

3. Organization Overview

Figure 1. Organizational Chart: DLA Energy is dedicated to providing exceptional support 

across the spectrum of energy operations whenever and wherever U.S. assets are utilized. 

4. Key DLA Energy Personnel

 Commander: Brig Gen Mark McLeod, USAF

 Deputy Commander: Mr. George Atwood, SES

 Executive Advisor: Ms. Kathryn Fantasia

 Chief of Staff: COL Peter Crean, USA

 Director, Business Process Support: Mr. Jim Mandziara

 Director, Procurement Process Support: Mr. Bruce Blank

 Director, Strategic Programs and Initiatives: Mr. Regina Gray

 Director, Customer Operations: Col Todd Cheney, USAF

 Director, Supplier Operations: Ms. Gabriella Earhardt

 Commander, DLA Energy Americas: COL Ronald Ross, USA

 Commander, DLA Energy Europe and Africa: COL Edward English, USA

 Commander, DLA Energy Pacific: CAPT Christopher Bower, USN

 Commander, DLA Middle East: COL Marc Thoreson, USA
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Fiscal Year 2014 Annual Historical Report

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5. DLA Energy Support 24 hours a day, 365 days a year:

 Delivers more than 14 million gallons of fuel worth $53M to DoD assets around the 

world. 

 Provides a wide-range of products & services to over 2,023 installations/stations in 38 

countries. 

 Manages 230 bunker and 506 Into-Plane contract locations (51 and 97 countries 

respectively).

 Provides more than 26 Along-Side Aircraft refueling locations across the globe.

 Conducts optimization at more than 22 locations ensuring efficient use of scarce 

resources.

6. We are more than petroleum. Each day we:

 Provide natural gas for more than 200 customers, 6.2 million kilowatt hours of renewable 

power and 95,000 standard cubic feet of gaseous helium.

 Lead the way in space supporting the USAF and five commercial launch and space 

programs.

 Supports the U.S. position as a world leader by providing over $1.1 million in foreign 

military sales.

 

 Figure 2. Support Outline
DLA Energy

61

Figure 3. Energy Summary

DLA Energy established numerous key operational goals, metrics and targets in its AOP, which 

included Agency Performance Review metrics, DLA Headquarters directed metrics along with 

DLA Big Ideas Energy initiative metrics. A summary of the goals and results from these metrics 

follows.

7. Agency Performance Review Metrics

Net Operating Result (NOR) tracked DLA Energy’s monthly revenues and expenses, assessed 

performance against the budget and identified variances throughout the fiscal year such that 

Leadership could take corrective action as necessary to achieve NOR targets. DLA Energy’s 

goal is to break even over time. DLA Energy’s end of FY14 NOR was a negative $1.213 billion 

versus a budget plan of negative $948 million.

Cash Plan Performance (CPP) tracked monthly disbursements and collections and assessed 

performance against the budget. It identified variances throughout the fiscal year such that 

Leadership could take corrective action as necessary to achieve CPP targets. CPP is DLA 

Energy’s total disbursements minus DLA Energy’s total collections. A negative CPP implies 

that more was collected than disbursed, increasing the cash balance. DLA Energy’s goal is to 

neither generate excess cash nor lose excess cash over time. DLA Energy’s end of FY14 CPP 

was a positive $52 million versus a budget plan of positive $561.5 million.
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Inventory Accuracy was used to track and support timely reconciliation, clean audits and 

accurate financial information. This metric measured aggregate totals of operating losses 

reported at the end of the month as compared to throughput to determine if losses have decreased 

monthly and over a period of time from previous performance periods. At the end of FY14 DLA 

Energy’s fiscal year to date loss was 580.35 million gallons of petroleum products which 

exceeded DLA Energy’s FY13 loss of 21.5 million gallons. This discrepancy is the result of a 

transition from a legacy accounting system to a new ERP, Enterprise Business System (EBS). 

Inventory reconciliations, gain loss reporting and other fiscal and inventory processes will be 

refined and finalized in FY15. In support of this measure, at the end of FY14, 68 percent of 

DFSP accounts were reconciled within two days of the end of the reporting period and 68.8 

percent of the DFSP accounts were reconciled within five days of the end of the reporting period.

The Fuel Infrastructure metric measured the level of effort to sustain and repair existing 

worldwide fuels infrastructure at capitalized sites (those sites that stored DLA owned fuel). The 

Fuel Infrastructure metric reflects the number of funded repair projects prepared by the 

Sustainment, Restoration and Modernization (SRM) division, measured against an annual plan. 

In FY14 the SRM division funded 1,203 projects versus a plan of 940.

The On Time Acquisition metric was used to provide a review of timeliness from requirement to 

contract award. In FY14 DLA Energy met it’s Time to Award goals in most months for both 

large (greater than $10 million) and small (less than $10 million) contract awards.

8. Additional Key Metrics

DLA Energy measured Telework in an effort to increase the number of employees who telework. 

Telework has the potential to support DLA’s COOP and allow workers to continue work despite 

unexpected disruptions and possibly make space available to allow hiring of additional 

employees. At the end of FY14, DLA Energy had 614 employees teleworking on a recurring 

basis (1-5 days a week).

DLA Energy measured organizational Diversity/EEO to increase the number of People with 

Targeted Disabilities (PwTD) and People with Disabilities (PWD) hired by the end of FY15 in 

accordance with the DLA Disability Plan. DLA Energy’s goal was to hire 70 PWDs and 15 

PWTDs in FY14. At the end of FY14 DLA Energy had a PwTD participation rate of 0.6 percent 

versus a National Civilian Labor Force PwTD participation rate of 3.00 percent and a PWD 

participation rate of 9.4 percent versus a National Civilian Labor Force PWD participation rate 

of 14.3 percent.

DLA Energy measured the value of DLA awards to Small Business, Small Disadvantaged 

Business, Women-Owned Small Business, Service Disabled Veteran-Owned Small Business and 

Historically Underutilized Business Zone Small Business against DLA established targets. 

During FY14 DLA Energy executed 25.83 percent of its contracts with Small Businesses against 

a DLA directed goal of 21.3 percent.

9. DLA HQ Directed Metrics
DLA Energy

63

Full time Equivalent (FTE) Management: Secretary of Defense Memo dated August 20, 2010, 

directed a cap on the number of FTEs for DLA at the FY10 level. At the end of FY14 DLA 

Energy had onboard end strength of 962 versus a target of 1002 and 970 full time equivalents 

versus a target of 904.

Travel and Training Budget: DLA was directed by the Office of Management and Budget to 

reduce travel budget execution by 30 percent from FY10 actual levels. In FY 14 DLA Energy 

executed $3.8 million of a travel budget of $8 million. It also executed $0.301 million of a $2 

million training budget.

Reverse Auctions (RAs): DLA PROCLTR 2012-33 mandated the use of RAs for 100 percent of 

eligible fully competitive contract awards. RAs will be covered in the Big Ideas portion of this 

report.

Long Term Contracts (LTCs): DLA PROCLTR 2012-34 directed the increase use of long-term 

contracts. This metric was used to monitor progress in increasing the dollars committed to long 

term contracts. In FY14 99 percent of dollars obligated by DLA Energy were via Long Term 

Contracts.

10. BIG IDEAS Initiatives and Supporting Metrics

a. Big Idea 1: Decrease Direct Material Costs, “Be Smart Buyers of the Right 

Stuff” DLA Energy Material Initiatives

(1) Procurement Systems and Process Improvement

Improve Demand Planning to reduce cost: DLA Energy projected a savings of $120.0 million 

through this initiative in FY14. At the end of FY14 DLA Energy was waiting for card program 

roll outs to determine Actual FY14 savings.

Afghan Drawdown: In the Afghan Drawdown savings resulted from reduction in Defense Fuel 

Support Point (DFSP) fuel stocks, termination of contractor reserves storage fees, and 

elimination of operating locations fuel requirements due to troop draw down. In FY14 DLA 

Energy realized a savings of $3.3 million versus a projected savings of $30 million from this 

initiative. Updated guidance with respect to timing and volume of DFSPs and contractor reserve 

reductions will push projected savings for FY13/FY14 to FY15. Savings are based on reduced 

storage costs and reduction in purchases as strategic reserves are shut and product displaces 

contract purchases.

War Reserve Material (WRM)/Swap Agreements: The inventory authority for WRM is 34.5 

million barrels of petroleum products. This effort focuses on developing plans and methods to 

reduce on-hand WRM quantities, such as swap/exchange agreements. At the end of FY14 DLA 

Energy realized no actual savings against a projection of $20 million.

Reduced Losses: Reductions in petroleum inventory operating losses have been an ongoing goal 

for DLA Energy. Over the last few years it made significant strides. DLA Energy’s intent in 
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FY14 was to further reductions and had a goal of 2 million gallons loss reduction over FY13 

losses. At the end FY14 DLA Energy’s fiscal year to date loss was 580.35 million gallons, 

which exceeded DLA Energy’s FY13 loss of 21.5 million gallons. This discrepancy is the result 

of a transition from a legacy accounting system to a new ERP, Enterprise Business System 

(EBS). Inventory reconciliations, gain loss reporting and other fiscal and inventory processes 

will be refined and finalized in F15.

Peacetime Operating Stock (POS) Reduction: DLA Energy is reducing purchases in an attempt 

to reduce Operating Stock from 25.7million barrels to 19.6 million barrels by FY19 saving over 

$800 million. In FY14 DLA Energy saved $49.8 million against a projection of $78.8 million.

(2) Strategic Sourcing

(a) Supplier and DoD Partnerships

 F76 to MGO Conversion: By converting from the use of military specification F76 to 

commercial specification MGO, DLA projected to save $6.0 million in FY15 through 

FY19. A strategic pause was implemented on this initiative in July 2014.

 Jet A Conversion: DLA Energy planned to obtain cost savings by converting from 

military specification JP8 to less expensive, commercially available Jet A with additives. 

In FY14 DLA Energy realized an actual savings from this initiative of $28.5 million 

versus a projected savings of $39 million.

 Installation Energy Commodity Alternatives: In FY14 DLA Energy projected reduction 

in natural gas obligation authority due to a process change. In FY14 DLA Energy 

realized an actual savings of $91.0 million versus a projection of $99.0 million.

 Advanced Negotiation Techniques: DLA Energy projected savings through advanced 

negotiation techniques such as: negotiated savings, revised payment terms, high lift 

guarantees, long term contracts and alignment of quality with commercial practices. In 

FY14 DLA Energy realized an actual savings of $84 million versus a projection of $81.7 

million via advanced negotiation techniques.

 Reverse Auction: DLA Energy conducted reverse auctioning on all fully competitive 

awards (both for material and services) with a value above the simplified acquisition 

threshold ($150K). In FY14 DLA Energy realized actual DLA savings of $52 million 

versus a projection of $20 million and DoD savings of $3 million versus a projection of 

$17 million via reverse auctions.

11. Big Idea 2: Decrease Operating Costs, “Improve Process and Productivity”

a. DLA Energy Operating Costs Operational Levers and Initiatives

(1) Acquisition of Services
DLA Energy

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 Equipment: DLA Energy terminated the Lab Equipment Program. A Business Case 

Analysis concluded there was no savings with extending lab funding to all Services.

 Consulting Contract Governance: DLA Energy projected savings by elimination of 

redundant requirements, identification of alternative solutions and/or de-scope of 

contractor effort. In FY14 DLA Energy realized an actual savings greater than $4 million 

against a projection of $2 million.

 Negotiated Savings – Services: DLA Energy planned to use traditional negotiation 

processes with the goal of substantially reducing contract costs. This effort included both 

Terminal Operations and Environmental Services. In FY14 DLA Energy achieved actual 

savings of $47.4 million versus a projection of $13.4 million from negotiated services.

 Travel 30 percent Reduction: DLA Energy projected to realize travel savings as a result 

of Office of Management and Budget 30 percent reduction to FY10 actual travel 

execution. In FY 14 DLA Energy realized travel savings of $2.339 million, which was in 

line with its projection of $2.339 million.

 Transportation: DLA Energy projected savings for barges, pipelines and tankers due to 

increased competition. DLA Energy realized FY14 savings of $17.8 million versus a 

projection of $15 million from this initiative.

 Reduced Terminal Operations: Commercialization of Jet fuel and shifting demand 

patterns should enable DLA Energy to decrease storage by 3.6 million barrels by FY19. 

Savings will be realized in: 1) reduced terminal operating costs; and 2) reduced SRM 

costs. DLA Energy did not realize any savings with this initiative against the projected 

$10 million.

(2) Personnel. Human Capital Balancing: DLA Energy projected FY14 labor 

savings due to Big Idea process changes. In FY 14 DLA Energy did not realize any savings 

against a projection of $5.0 million.

12. Big Idea 3: Reduce Inventory, “Clean out the Attic”: At the end of FY14 DLA Energy’s 

ending inventory was 55.86 million barrels of petroleum products versus a target of 57.39 

million barrels.

13. Big Idea 4: Improve Customer Services, “Delight our Customers”

a. DLA Energy Customer Service Initiatives

 Energy Convergence (EC): EC moved DLA Energy out of their legacy systems and into 

the Enterprise Business System. This move standardized processes and transactions. 

Further, it normalized service measures so evaluations for the DLA Material Supply 
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Chains apply to DLA Energy products and services. Lastly, EC should enable DLA to be 

audit ready. In FY14 DLA and DLA Energy completed all scheduled EC Rollouts (1-5).

 Captains of Industry (COI): This ongoing effort directed by DLA Director Vice Admiral 

Harnitchek was designed to reach out to industry leaders in each of DLA’s supply chains 

to find better ways of doing business that would eliminate unnecessary contractual costs 

and seek efficiencies to deliver better value to the warfighter and taxpayer. DLA Energy 

conducted one COI event in FY14. This event was held with our CONUS Bulk 

suppliers. The primary outcomes from the November 2013 Bulk Petroleum COI meeting 

focused on two key areas, program predictability and communications. Our industry 

participants indicated that returning to a more predictable schedule for issuing 

solicitations and making awards with the four major bulk petroleum programs spread 

across separate calendar quarters would help them plan and balance workload. Likewise, 

awards made no later than 60 days in advance of the beginning of the contract 

performance period would help minimize risk to offerors. The procurement cycle for the 

two domestic bulk petroleum programs were adjusted during FY14 with the Rocky 

Mountain West (RMW) program starting in October, the Inland East Gulf Coast (IEG) 

program starting in April, the Western Pacific (WESTPAC) program starting in January 

and the Atlantic Europe Mediterranean (AEM) program starting in July. Two programs 

have been awarded subsequent to the COI event, RMW, which was awarded 54 days 

prior to contract performance and WESTPAC, which was awarded 70 days prior to 

contract performance. IEG is the next program scheduled to be awarded and it is 

projected to be awarded 75 days in advance of contract performance. DLA Energy 

Contract Specialists, Demand Planners and Supply Planners initiated quarterly 

forecasting conference calls with each bulk supplier to minimize the impact of 

unexpected shifts in demand and allow suppliers opportunity to plan for these shifts in 

demand that impact ratability of orders. These meetings have been well received by our 

industry partners. In addition, DLA Energy senior leaders have begun to have annual 

meetings with each supplier to continue the COI dialogue and monitor the success of the 

initiatives that resulted from each of the COI events held to date. Meetings were 

conducted with 21 of the 25 suppliers with the consensus being that communication and 

program predictability have improved as a result of the initiatives from COI.

14. Big Idea 5: Achieve audit Readiness, “Prove It”

a. DLA Energy Audit Readiness Initiatives

 EBS EC: In FY14 DLA Energy committed to ensuring the “new” functionality in EBS 

meets auditability. The J6 Audit Readiness Technical Infrastructure Architecture team 

will continue testing this functionality in FY15. Any failures will result in corrective 

actions that will be tracked through the Audit Readiness Program.

 Fuels Manager Defense (FMD): In FY14 DLA Energy committed to ensuring FMD 

meets audit readiness standards. An upgraded version of FMD-8 was deployed in 2013-

2014 to the Defense Fuel Support Points. Some of the functionality related to interfaces 
DLA Energy

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between FMD and EBS was tested in FY14. The J6 Audit Readiness Technical 

Infrastructure Architecture team will continue testing this functionality in FY15. Any 

failures will result in corrective actions that will be tracked through the Audit Readiness 

Program.

 Data cleansing/Transition to EBS: In FY 14 DLA Energy committed to ensuring all data 

(balances, contracts, etc.) were thoroughly reviewed and supported prior to submission in 

EBS. This effort is on track for completion by the end of calendar year 2014. To date, 

DLA Energy has cleaned almost $600 million in unliquidated obligations in EBS. 

Additionally DLA Energy has cleaned almost $100 million in unliquidated obligations in 

its legacy systems. DLA Energy continues to work EBS aged unfilled customer orders, 

and EBS and legacy aged in-transit inventory.
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BLANK PAGE
DLA Disposition Services

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Defense Logistics Agency

DLA Disposition Services

Fiscal Year 2014 Annual Historical Report

1. Mission, Vision, and Values

a. DLA Mission: We are America’s Combat Logistics Support Agency. We provide

effective and efficient worldwide support to warfighters and our other customers.

b. Vision: We embrace the DLA Vision: Warfighter- focused, globally responsive, 

fiscally responsible supply chain leadership In support of the DLA mission and vision, DLA

Disposition Services supports the warfighter and protects the public by providing worldwide

reverse logistical solutions. Our goal is to become the Department of Defense's Reverse Logistics

Center of Excellence.

c. Values: Our values are DLA’s foundation for all we do. They provide our guiding

principles as we accomplish our mission, pursue our vision, and strive to do what is right for the

Armed Forces and DoD

2. Director’s Overview

FY14 was an exemplary year of overcoming challenges. Through teamwork, dedication,

professionalism and our collective focus on priorities, we excelled beyond expectations in 

many areas. In Afghanistan, we saved the warfighters there $15. 5 million and awarded the 

first ever usable sales contract with a rate of return of more than $2.7 million in proceeds 

through the end of calendar year 2014. By September 2014 our scrap totals exceeded 1 

billion pounds since our first full site stood up in Afghanistan in 2005.Our sales team 

continued its progress by replacing our largest usable term sale contract known as 

Commercial Venture (CV3) with anticipated annual revenue more than three times the 

historic rate of return. We also resumed ship recycling. The Law Enforcement Support 

Office team set a historical program record increasing reutilization by 40 percent, with an 

acquisition value of $749 million. Our Reutilization, Transfer and Donation program also 

set a record of over $3 billion in issues. The acquisition team saw an incredible 50% 

reduction in their acquisition lead time by creating a simplified process. Everyone, at every 

level, played a key role in our overall success.
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3. Organization Chart

4. FY 2014 Objectives & Initiatives

Improve Customer Service

 Perform CENTCOM Area of Responsibility (AOR) Retrograde Support 

 Develop Expeditionary Disposition Capability

 Improve External Customer Surveys

 Accomplish Material Handling Equipment (MHE) Training Plan

 Execute Workforce Replenishment Plan

 Increase Equal Employment Opportunity Participation Rates

 Increase DLA Disposition Services Telework Program Participation

 Expand the Culture Action Team (CAT)

Decrease Direct Material Costs
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 Achieve Contract Price Reduction by Adopting Private Sector Practices

 Reduce Acquisition Lead Time (ALT)

 Attain Small Business Award Goals

Decrease Operating Costs

 Pursue Network Optimization

 Consolidate CONUS HW contacts

Achieve Audit Readiness

 Attain Audit Readiness

 Sustain Reutilization Business Integration (RBI)

 Improve LESO Property Management
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5. Improve Customer Service

 Perform CENTCOM Area of Responsibility (AOR) Retrograde Support

Description: Provide the Central Disposition Services Director (DSD), and staff, the support for

the full suite of disposal operations in coordination with DLA Central and in support of the US

Forces Afghanistan (USFOR-A) retrograde, along with the Department of State (DoS) mission 

in Iraq. Our team provided the timely, forward-based disposition services support that has been

the hallmark of our operations to date. Forward-based support kept 6,425 soldiers and 5,171 

trucks off the road, contributing to the safety of U.S. forces while saving them $15.5 million in 

warfighter costs. The focus remained on anticipating DoD and DoS disposal needs and providing

solutions that enable USFOR-A elements to conduct combat operations while setting the 

conditions for successful property retrograde. Iraq efforts will continue to meet ongoing

requirements in country and future reductions in presence.

FY2014 Goal: Maintain disposition capabilities for USFOR-A drawdown and DoS operations

while maintaining removal capabilities that meet or exceed customer turn-ins by demilitarizing

450 vehicles / month and removing 60M lbs. of scrap/month. Vehicle goals were met or 

exceeded for the first two quarters, but were around 200 per month for the third quarter. The first 

and third quarter scrap removals were at or above goal while the second quarter averaged closer 

to 20 million pounds.

Additional retrograde achievements included:

 First usable good sales conducted in Afghanistan

 1,862 rolling stock items were demilitarized

 219 million pounds of scrap sold 

 4.3 million pounds of copper removed

 Assisted in the closure of 38 coalition and U.S. bases in Afghanistan

Owner: J5/DSD Central
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 Develop Expeditionary Disposition Capability

Description: Develop a DLA synchronized and Joint Force integrated expeditionary capability

by May 2014 that is able to deploy and support the full range of military operations and/or 

humanitarian assistance missions while resourcing expeditionary equipment sets that augment 

this capability. In 2014 we will conduct Overseas Contingency Operations Readiness Training

(OCORT) for civilian and military personnel, to include, two expeditionary equipment sets on 

hand to support training and operations

FY2014 Goal: 35% (or 56 personnel) of the deploying workforce (100 reservists and 62 CEWs)

attend OCORT 2014. Reduce deployment fallout to <10% for Civilian (<6) and Military

personnel (<10). 2 Expeditionary Equipment Sets resourced and formed. Forty-three reservists 

and nine civilians were trained at OCORT at OCORT 14. Additionally, reservists and civilians 

trained together at Incremental Duty Training (IDT) conducted at DLA Disposition Services at 

Fort Lewis, WA, from 1 – 15 September. The IDT training allowed personnel the chance to 

practice erecting Expeditionary Site Set structures as well as receiving traditional pre-deployment 

training (e.g., demil). An “over-the-horizon” capability in Kuwait: DLA was also developed for 

Kuwait. This team will be capable of reinforcing remaining DLA Disposition Services capability 

in Afghanistan in the post-2014 environment and will be capable of responding to emergent 

requirements else-where in the CENTCOM AOR.

Owner: J5
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 Improve External Customer Surveys

Description: The Customer Engagement Team will look at new and improved ways to conduct

customer surveys both in the short term (fiscal 2014) and for the long term (late fiscal 2014 and

out years). The goal is to increase response rate, allow customers to immediately respond to their 

experience and allow action officers to immediately react and assist. We will also attempt to 

incorporate a combination of both e-mail and telephone surveys to provide more opportunities 

for candid feedback. Lastly, we will explore the possibility of utilizing input from some form of

local surveys for walk-in customers, particularly in OCONUS.

FY2014 Goal: Develop milestone plan and meet milestones. Increase in response rate from fiscal 

2013. Overall Customer Satisfaction rate at or above 90%. Response rates were at goal 

throughout the year. One survey question was added in fourth quarter to address potential 

customer impact of the Disposition to Distribution alignment known as “D2.” 

In summary, the new survey methodology ultimately used for fiscal 2014 was a monthly survey 

sent to customers who used us the previous month, while ensuring no one customer was 

surveyed more than twice a year. This proved to be a very successful effort allowing us to get 

real time feedback from customers. The main objective was to improve Response Rate and we 

were successful in that venture, steadily improving all year and well exceeding the 16% goal. 

Results were as follows: Q1 – 18%, Q2 – 17%, Q3 – 20%, Q4 – 25%. We believe this steady 

increase in response rate indicates customers were more willing to participate knowing their 

input was asked for near the time of service and would be readily acknowledged and responded 

to.

In addition, we maintained an excellent customer satisfaction standard, with quarterly results 

reaching or exceeding the 90% goal consistently. Those results by quarter are: Q1 – 96%, Q2 –

92%, Q3 – 92%, Q4 – 95%. 

Finally, we have completed and submitted three Requests for Change (RFCs) to our systems to 

ultimately meet our long term goal of automating the customer survey process by sending survey 

links to customers directly from the system to the customer at the time they use our services. 

Owner: J411
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 Accomplish Material Handling Equipment (MHE) Training Plan

Description: DLA Disposition Services has established a training, testing and certification plan

that provides for safe MHE operation within areas of responsibility at DLA sites. The MHE 

training materials and timelines align with applicable CFRs and OSHA requirements. DLA

Disposition Services goal is to provide a pathway for consistency in MHE training throughout 

the PLFA while addressing any gaps in safety, operation, maintenance and training on any

required MHE. The training plan has been vetted through DLA Disposition Services Senior

Leaders with an approval to proceed and align with DLA mandated MHE training requirements

once those DLA mandates have been solidified.

FY2014 Goal: All MHE Operators complete training sessions on specific make of MHE at their

site(s). DLA Training advised DLA Disposition Services during January 2014 that it should hold 

off any of these classes until further notice and not conduct any training before the MHE 

Directive Type Memorandum (DTM) is approved by HQ DLA. A DTM was approved on June 

11, plus 51 Potential trainers, equipment and training needs were identified at each site. 

Procedures, and curriculum were being finalized and fully compliant training program is expected 

to be implemented in fiscal 2015. Authorized trainers will begin taking required DLA Training 

40 hour Instructional Skills Workshop once available with all trainers completing course by fiscal 

2016.

Owner: J5
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 Execute Workforce Replenishment Plan

Description: DLA Disposition Services faces a large number of retirements over the next few

years. This portion of the Operating Plan focuses on the plan for identification and replenishment

of talent that will be vacating our workforce due to retirement. Retirement data was pulled for 

the past five fiscal years. The analysis of the data received indicated that an average of

approximately 31 percent of the retirement eligible employees retired. Projections of future 

retirements will be based on 31% of eligible retirees actually retiring.

The reality of this loss has been known for a few years and efforts to augment the workforce 

through programs like the Intern Program and the PACER Program have been successful.

However, the scope of the retirement impact has not been identified – either by location or by

talent loss. We plan to identifying training, self-development, career / developmental

opportunities from hire to retire and integrate with Network Optimization/Human Capital

Working Group to better determine required skills to reshape the workforce and footprint.

FY2014 Goal: The plan was to establish positions with increased upward mobility outside of the

PACER Program and balance GS-05T09s against the need to increase the Wage Graded (WG) 

positions within the organization. However, there was no increase in upward mobility positions 

for fiscal 2014. There was also no increase in Wage Grade (WG) positions, as this was overcome 

by events due to D2 initiative where WG positions went to distribution.

Owner: J5
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 Increase Equal Employment Opportunity Participation Rates

Description: In support of the workforce replenishment plan that focuses on the

identification and replenishment of talent that will be vacating the workforce due to

retirement, the Equal Employment Office (EEO) will actively engage in this effort to assure

a diverse organization that empowers the workforce to achieve their full potential. We will

work diligently to analyze trends, ensure compliance with regulatory guidelines and seek

resolution at the lowest possible levels. The EEO will ensure leaders are provided timely

advice and guidance on maintaining a workplace that embraces diversity and to give employees

equal access to EEO services, timely resolution of complaints, and equitable remedy. The EEO 

mission aligns directly with the DLA Director’s Big Ideas.

FY2014 Goal: An increase in PWD/PWtD participation rates (14.3% for PWD and 3% for 

PWtD) and 100% formal complaints processed within 180 days. The percentage of PWD/PWtD 

participation and days to process formal complaints was used as a metric. We achieved and 

exceeded the goal for PWD the end of the fiscal year, but still only at about half of the goal for 

PWtD. All formal complaints were processed well within the 180 day goal.

Owner: EEO
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 Increase DLA Disposition Services Telework Program Participation

Description: Telework supports mission continuity by readying employees to continue work

despite unexpected disruptions. Telework also improves productivity by allowing employees to 

work at alternate locations. Also:

 Enhances work-life for eligible employees

 Serves as a recruitment and retention strategy

 Supports efforts to employ/ accommodate people with disabilities

 Creates cost savings by decreasing office space and parking facility needs

 Eliminates travel time to and from work site, energy consumption

FY2014 Goal: Increase telework participation rate by 8 percent from fiscal 2013. Participation 

goals were met, especially in the second quarter when rates were well above 70 percent.

Owner: J5
DLA Disposition Services

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 Expand the Culture Action Team (CAT)

Description: With the combination of several key initiatives converging in fiscal 2014, it is 

critical we continue to develop a culture of high performance. RBI has been fully deployed and

the upcoming year will focus on stabilization. Our employees continue to adapt to a financially

constrained environment while maintaining exceptional support to our customers. Our focus 

areas remain the same: leadership, communication, trust and accountability.

FY2014 Goal: The Culture Action Team will contribute to the creation of a holistic/systems

approach to our organization’s key initiatives in fiscal 2014 (RBI, Audit Readiness, Network

Optimization, DLA’s “Big 5.” The Culture Action Team will give feedback/input regarding the

progress of these efforts. The team will act as “change agents” and facilitate the breakdown of

silos. Our goal is to unite DLA Disposition Services (and ultimately DLA) into one team

focused on providing exceptional service to the warfighter. Toward that end, we have added new 

members from East and West regions to stabilize team. WE received Dennison survey results in 

July based on a 66 percent response rate from DLA Disposition Services personnel. There was an 

Action Planning Workshop for culture champions conducted at DLA headquarters during August. 

We also pursued quarterly training in last quarter to help bring on new members and prepare the 

team for analyzing survey data and making action plans.

Owner: D
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6. Decrease Direct Material Costs

 Achieve Contract Price Reductions by Adopting Private Sector Practices

Description: The strategy is to align government contracts with the private sector hazardous 

waste industry. Profile-Based Contract Line Item Numbers (PBC) were designed to provide

more detail about the waste streams and eliminate much of the speculation and financial risk to 

the contractor. Furthermore, pricing under the new model is primarily based upon container 

sizes, as opposed to “per pound” under the previous model. This alignment with the industry is

expected to result in more competitive pricing and a net savings to the government. In fiscal 

2013 a new CLIN schedule was finalized, customer outreach for pre-requirements were

completed, and the contract was awarded in fiscal 2014.

FY2014 Goal: Implement a CLIN structure for HW disposal contracts that more closely mirrors

commercial practices, reflects the true disposal facility market cost and eliminates, not shifts,

contractor risk, thus reducing cost. Incorporate a new schedule in hazardous waste contract

actions for continental United States and realize reduced prices for our customers. All renewal

actions contain the new schedule and cost avoidances are obtained; J7. Submit HW Disposal

Contract Procurement Requests (PRs) on all contracts due for renewal, using the new PBC

model. Monitor, support, and measure savings of actively-performed, awarded contracts. This 

goal was measured by comparing the dollar savings of actively performed contracts with the 

savings from the previous fiscal year. The real benefit of transitioning to the new bid schedule is 

alignment of Disposition Services practices with the private sector. A secondary benefit is 

expected to be reduction in number of task order modifications and reduced prices. Six long term 

hazardous waste contracts were awarded in fiscal 2014 with the new bid schedule. To date, we 

have realized an 8% reduction in the number of task order modifications on these contracts. It 

remains too early to ascertain whether the adoption of the new bid schedule has resulted in lower 

prices.

Owner: J7 & J3
DLA Disposition Services

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 Reduce Acquisition Lead Time (ALT)

Description: Reduce Acquisition Lead Time (ALT) for all non-GSA competitive contract actions 

in excess of $150,000 (ALT = Time from receipt of Purchase Request to contract award). In

third quarter of fiscal 2013 the J7 aligned their efforts with the DLA “Time to Award” team to 

develop enterprise- wide ALT goals for service contracts. A J7 “Huddle” was created to monitor

current performance.

FY2014 Goal: Attain a reduction in ALT in accordance with the targets identified by the DLA

“Time to Award” team that is analyzing ALT and process improvements enterprise-wide for 

supply and service type contracts. Reduce number of bridge contracts or sole-source contract

modifications as a result of extended ALT. 

Since 2011, DLA Disposition Services has focused on reducing ALT from the average ALT for 

long term contracts, which was 325 days. Reductions were realized each year. The ALT 

Enterprise standards for service contracts were established in June 2014. The below table depicts 

how Disposition Services’ performed in fiscal 2014 against the Enterprise standards. Even though 

the standards were established late in the FY, because of the previously initiated reduction efforts, 

Disposition Services exceeded the DLA standard for LTC and task/delivery orders, but fell short 

on below SAT transactions. The LTC and task/delivery order awards are relatively evenly spaced 

throughout the year. The below SAT contracts actions are bunched towards the end of the fiscal 

year with 64% of these actions being awarded during the last two months. The end of the fiscal 

year contract rush will make meeting the ALT standard more of a challenge because of the surge; 

albeit, the acquisition team will continue to push to reduce ALT whenever practical. 

NUMBER OF 

TRANSACTIONS

DLA STANDARD 

(DAYS)

FY ACHIEVED 

DISP SVC (DAYS)

LTC 36 135 110

Below SAT 86 35 50

Task/Delivery Orders 7,600 10 3.9

Owner: J7
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 Attain Small Business Award Goals

Description: Approximately 90% of DLA Disposition Services eligible obligations are on long

term contracts. Only two long term contracts (LTCs) up for renewal in fiscal 2014 are currently

held by large business that has the potential for conversion to small business; if successful dollars

would not be realized until fiscal 2015. Approximately 19% of our eligible small business

dollars support Ability One.

FY2014 Goal: Meet or exceed the DLA-assigned Disposition Services small business goal for

FY14, including the following socioeconomic categories: Small Disadvantages Businesses

(SDBs), Historically Under-utilized Business (HUB) Zones, Women-Owned Small Businesses

(WOSBs), and Service-Disabled Veteran Owned Small Businesses (SDVOSBs) and award all

eligible contracts to small businesses. 

The DLA Disposition Services small business specialist was honored at the Business Alliance 

Awards for her efforts in this area. Her reviews on acquisitions above $10,000 were credited as 

the reason 100 percent of long term contracts awarded this fiscal year in the continental United 

States were set aside for small businesses. Personnel also reached out to area veterans Oct. 29 

through the 9th Annual Veterans Business Conference presented by VetBizCentral and the 

Procurement Technical Assistance Centers of Michigan. Additionally, 100% of long term 

contracts awarded in FY14 were awarded to small business. Disposition Services achieved a 

small business obligation rate of 74.13% exceeding the goal of 68.14%

Owner: J7
DLA Disposition Services

83

7. Decrease Operating Costs

 Pursue Network Optimization

Description: Network Optimization supports the “Big Ideas.” The program objectives are threefold: DLA Disposition Services has an immediate need to reduce customer wait times for 

inbound property (improve customer service). To reduce backlog to less than three days, the

destruction of Demil code B and Sensitive Q material and the divestiture of Army and Marine

Corps tactical vehicles (reduce inventory). And lastly, to streamline processes (decrease 

operating costs & achieve audit readiness). Many of these initiatives will derive from

Continuous Process Improvement events.

Phase 1, the “Stabilization” effort, will increase property efficiencies and customer satisfaction.

Phase 2, “Optimizing the Network,” has an ultimate goal to accomplish a variety of short and long

term initiatives that will be monitored under this program umbrella.

Phase three, “Business Transformation” will begin concept development at the end of FY14.

D2 was implemented at collocated sites as planned in fiscal 2014 with optimization of work at 

those sites to be planned and implemented in future years. 

To ensure things were done right, Distribution and Disposition Services had the initial planning 

meeting for the next D2 phase in November of calendar 2014 and a follow on follow on planning 

meeting was scheduled for February 2015.

In fiscal 2014 hard work around the activity greatly reduced backlog, erasing it at some sites, and 

made a major reduction on the inventory of vehicles the Army and Marine Corps had divested 

through a combination of demilitarization as a condition of sale and special program reuse, plus 

reuse of vehicles as range targets. Changes to the contact for sale of rolling stock beginning in 

fiscal 2015 are expected to play a major role in ongoing inventory reductions while adding greatly 

to activity revenues.

Owner: Network Optimization Team
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8. DLA Dispositions Services Annual Operating Plan, 2014

 Consolidate CONUS HW Contacts

Description: Finalize a plan that results in a long-term reduction in the number of current

CONUS hazardous waste disposal contracts from the current fifty three without impacting

quality of service or Disposition Services achievement of small business and social economic

goals. Reduction in number of individual contracts is expected to reduce contract prices and

government pre and post award costs. During the fourth quarter of fiscal 2013, a complete

analysis of CONUS hazardous waste disposal contracts for possible consolidation considering

socioeconomic impact, volume, value and geographical area of coverage will be conducted.

Where feasible, we will consolidate CONUS hazardous waste disposal contracts.

FY2014 Goal: Decreased number of CONUS hazardous waste disposal contracts in fiscal 2013. 

To achieve this goal, DLA Disposition Services conducted an assessment of all existing CONUS 

hazardous waste contracts that considered waste volume (some site have seen substantial 

reductions), market research, input from private section and impact on small business and 

concluded that the consolidation would the following contract consolidation would be beneficial 

when contracts came up for renewal during the next four years: 

Norfolk/Williamsburg (FY15);

Bragg/Lejuene/Jackson/Shaw (FY15)

Anniston/Sandblast (FY15)

Warner/Parts (FY15)

Pendleton/San Diego (FY16)

San Antonio/Hood (FY18)

Expectation is that, once affected, the consolidation will benefit an industry that has indicated 

dissatisfaction with the small size of our contracts, reduce contract administration costs and 

contract prices. 

Owner: J7
DLA Disposition Services

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DLA Dispositions Services Annual Operating Plan, 2014

 Achieving Audit Readiness

 Attain Audit Readiness Milestones

Description: Meet the DOD requirement to achieve full audit readiness for all DLA financial

statements

FY2014 Goal: Stay on track for the September 2015 Assertion. Thus far we have completed 

SO/SC PCM revisions; validated Customer Master PCM, General Equipment PCM, and Real 

Property PCM; and coordinated with action officers and developed more detailed POAMs.

Re-validations were completed for the following during August 2014:

•Internal Use Software PCM

•Government Purchase Card Micro purchase PCM

•Working Capital Funds Monitoring – Field PCM

•Working Capital Funds Capital Investment Program

Deficiencies concerning enterprise level PCMs were identified, which will be corrected at the 

enterprise level. 

Disposition Distribution Process Alignment will be a phased approach with ultimate goal still 

being one DLA inventory management system. Due to the high cost to reprogram the system to 

meet this goal and limited time the decision was made to go with a phased approach. Phase I 

will concentrate on inventory and what is needed to assert existence and completeness by 

September 2015. The 2nd or follow-on phases will concentrate on one IMS.

Resource analysts from across DLA Disposition Services traveled to Battle Creek, Mich., for a 

three-day workshop from July 15 to 17. 

Owner: J5/Audit Readiness Team
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DLA Dispositions Services Annual Operating Plan, 2014

 Improve LESO Property Management

Description: Account for controlled property issued to LESO customers

FY2014 Goal: Sustainment of the Federal Excess Property Management Information System

(FEPMIS) through 100% registration and conduct 26 Program Compliance Reviews (PCRs). 

Twenty-eight PCRs were completed and all were compliant. Seventy- four (74%) of law 

enforcement agencies were registered in FEPMIS.

Owner: J4
DLA Distribution

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Defense Logistics Agency

DLA Distribution

Fiscal Year 2014 Annual Historical Report

1. DLA Distribution FY14 Accomplishments

a. Standardization

(1) Distribution-Disposition Process Alignment

In support of a HQ DLA audit readiness effort, Distribution J4 provided comprehensive Standard 

Operating Procedure (SOP) assistance to DLA Disposition in preparation for their Audit 

Readiness (AR) assertion. J4 teams conducted training for developing process maps and SOPs 

to link to key financial controls in the Process Control Memorandums (PCM) for AR. 

Distribution Business Process Analysts (BPA) and Subject Matter Experts (SME) attended 

multiple Disposition site visits with Disposition personnel to provide direct, hands-on process 

documentation training for standardization and AR. Distribution BPAs and SMEs lead working 

groups to develop Request for Change (RFC) submissions to update RBI (Disposition's version 

of the Distribution Standard System).

(2) Retail Standardization

DLA Distribution BPAs and SMEs conducted multiple site visits to DLA retail locations and 

mapped the current retail processes. DLA Distribution assisted DLA HQ J-342 in drafting the 

forthcoming DLAI that will align retail policy for Storage and Distribution (S&D) to the existing 

Distribution S&D SOPs. Process standardization and alignment benefit the entire DLA 

enterprise both for Warfighter support and for AR.

(3) Inventory Reconciliations in support of Audit Readiness

DLA Distribution J4 provided support to the DLA HQ efforts to establish an enterprise 

framework for Inventory Reconciliations as part of the DLA financial assertion and to provide 

accountability so that all DLA inventory will be reconciled to the financial record. This includes 

both mission stock in DSS and kitting components in the PC&P and DEPMEDS systems. In 

addition, J4 worked with HQ, J6 and Services to provide data for similar processes supporting 

the Services’ preparation for assertion. These efforts are in addition to the ongoing Quantitative 

Location Reconciliations (QLRs) that occur at end of day and periodically throughout the year. 

J4 provided education, documentation and recommendations to HQ and Supply Centers to 
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improve processes and controls on inventory that is stored outside of DSS in vendor-managed 

and service-managed sites.

(4) Wholesale - Engineered Standards

As of the end of FY 14, the standardization effort developed and / or validated 746 engineered 

standards across 20 wholesale sites, as identified through observations of standard work 

processes. These standards are based on 199 standard J4 BPA-approved processes. The site 

engineered standards are developed for each site based on standard processes and unique 

environmental factors. By December 16, 2014, the five remaining wholesale sites will have 

engineered standards delivered to DLA Distribution, although no standards have been 

implemented.

(5) Retail – Engineered Standards

Seven retail sites have been identified for engineered standards and geospatial data development. 

DLA Barstow was selected as the pilot site and will have site specific engineered standards 

presented on December 16, 2014. 

(6) Indirect Staffing for Staffing Model

DLA Distribution J4 representatives visited DLA Distribution Europe and DLA Distribution 

Tobyhanna to conduct research concerning DLA Distribution’s Standardization Initiative and 

conducted assessments to validate G&A indirect labor standards. At the DLA Distribution sites, 

the team validated interview data; identified task level of effort and unique functions of the 

Command Staff, General and Administrative (G&A) and Support Services. In addition, the team 

conducted work sampling, data collection, data analysis, performed research and analysis. The 

team reviewed established indirect standards and developed standard variances for each site 

unique indirect process. 

b. Distribution Supply Budget Project

DLA Distribution J4 successfully standardized and reduced costs to distribution (warehouse) 

supplies. In the last two fiscal years DLA Distribution has:

 Saved over $4.6M by negotiating a price reduction for pallets

 Reduced costs associated with packing list envelopes, standardizing envelopes from 17 

different NSNs to three. Cost savings are expected to exceed original estimates of $40K

 Standardized fiberboard boxes, reducing NSNs ordered by over 40%

 Standardized general packing tape to 6 standard NSNs, reducing costs up to $1 / foot

(1) Standardization and Audit Readiness SharePoint

DLA Distribution J4 established a SharePoint site that provides distribution employees with 

standard process, training, and audit readiness documentation. Documentation developed by J3 

Audit Readiness, J4 Process Owners and J1 Training is posted within 24 hours of receipt and 
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includes information such as: process maps, job breakdown sheets, standard operating 

procedures (SOPs), and process manuals. Links to compliance and quality control, base supply 

guidance, and engineered standards information is also available on the site.

(2) CPI Event - Electronic Document Management Services (EDMS) 

Standardization

DLA Distribution is standardizing the use of EDMS to improve retention and retrieval of process 

and Audit Readiness required documentation. The J4 led a joint team of DLA Distribution and 

DLA Document Services subject matter experts that identified process gaps and when corrected, 

will increase use of the system, improve how documents are scanned into the system, and 

increase retrieval of documentation. Process enhancements that will increase electronic transfer 

of documentation and allow for retrieval of large volumes of documentation for audit purposes 

are being evaluated.

(3) Standardized Position Descriptions

DLA Distribution J4 began an initiative to standardize position descriptions for all series within 

DLA Distribution which include Mission, Mission Support, Supervision, General and 

Administrative (G&A) Support. Originally, J4 looked at consolidating over 1700 direct labor 

position description and 514 indirect G&A position descriptions currently used within DLA 

Distribution enterprise. In August 2014, the focus shifted from consolidating position 

description to standardizing the major duties within the 28 functional areas as shown under the 

Standardization SharePoint site. J4 researches and references PCMs, Process Manuals, Process 

Maps, and SOPs and ensures the duties are aligned with Audit Readiness standards (i.e. internal 

controls, P2S). Since August, J4 researched over 90 of the 126 posted SOPs, and reviewed over 

70 of the 172 standard process maps and reviewed over 50 of the 100 PCMs within the 28 

functional areas. J4 has developed 14 Major Duties Workbooks out of a total of 28 for each 

functional area. Two of the workbooks are in coordination with J4 Subject Matter Experts. 

Once all 28 major duties workbooks are created and coordinated with the process subject matter 

experts, the workbooks will be combined into files aligned with RBAC user roles. 

(4) HQ Staffing Model

DLA Distribution J4 assisted DORRA in the development of a HQ staffing model. DORRA 

conducted over 120 interviews and 40 survey sheets for DLA Distribution Headquarters. Local 

union representatives were kept informed. DORRA received input data from divisions and 

populated 20 division level staffing models. Current status shows that J4, J5 and J9 staffing 

models are complete and require Directorate approval. Other DLA organization staffing models 

are in the review/validation stage. Final distribution acceptance of the staffing model is 

anticipated by February 2015.

2. Personnel

a. Culture
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The 2014 DLA Culture Survey was administered in April and May with over 4,100 employees 

participating and providing over 3,000 comments. The overall results of the survey showed a 

dramatic increase of 46% across all survey dimensions of a) mission alignment b) organizational 

adaptability c) consistency of operations d) and involvement of the workforce. Specifically, the 

survey showed significant improvement in accountability for results; trust in supervisors; 

diversity management; leadership communication; overall job satisfaction; and in leadership's 

ability to conduct action planning. In addition, DLA Distribution's various communication and 

integrated planning efforts led to improved clarity and alignment of strategic efforts as 

demonstrated by very high scores in understanding the impact of Audit Readiness and interest in 

the DLA Director's Big Ideas. The results of the survey demonstrate the commitment of both the 

leadership and our workforce to improving the organization in delivering effective, efficient & 

best value distribution solutions to our customers and stakeholders. 

b. Translation Services

DLA Distribution is comprised of over 7000 employees of whom more than 600 are foreign 

local nationals; all of which have varying English proficiencies. In FY14, DLA Distribution 

took the next step in assuring a seamless communications flow by establishing a support 

agreement that provides the translation of written, electronic, and multi-media communication 

into their targeted foreign language. A Memorandum of Agreement (MOA) was established 

with the National Virtual Translation Center (NVTC). The NVTC’s Executive Agent is the 

Federal Bureau of Investigation (FBI) and the FBI handles all invoicing and funds processing for 

the NVTC. To date, the services have been used extensively in support of the Audit Readiness 

and Standardization initiatives.

c. Full Time Equivalent (FTE) Execution 

For FY14, DLA Distribution consumed 6,883 FTEs against an approved target of 7,266, 

executing 5.3 percent below target. This was attributable to a decrease in workload and 

significant efforts to right-size staffing to that reduced workload.

d. Workforce Analysis

2014 Workforce Analysis Update was completed and submitted for review. The overall status of 

our workforce has stayed consistent in all areas, aging workforce, steady retirements, and 

demographics. 

e. FY14 Civilian Employee Recognition

DLA Distribution processed over 2,000 civilian awards for Calendar Year 2014. 

DLA Distribution employees won numerous prestigious awards:

 The 59th Annual DOD Distinguished Civilian Service Award: Mr. Patrick McCormick

 The 2014 NAACP Award: Ms. Ramona Douglas
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 The 2014 Roy Wilkins Renown Service Award: Ms. Ramona Douglas

 The 2014 NOMAR Meritorious Service Award: Ms. Blessings Foster

 The 2014 FAPAC Award: Mr. Mark Ayupan

 Mr. Ed Sweger, former employee of DLA Distribution Susquehanna inducted into the 

DLA Hall of Fame.

 DLA Distribution won 10 of the awards at the DLA 47th Annual Employee Recognition 

Awards Ceremony

 f. Functional Community Management (FCM) - 1670 Equipment Services

DLA Distribution’s Functional Community Manager (FCM) coordinated SMEs from across 

DLA Distribution to participate in the Gap Closure strategies for the job series 2001 and 0346 

Competency Development. Senior leadership was briefed by the FCM for these job series. 

g. Expeditionary Training

The Expeditionary Academy has been very beneficial to the support of DLA Distribution’s 

mission and DLA contingency missions. The academy was developed to train Distribution 

Reservists in support of full range military operations from humanitarian assistance/disaster 

recovery to major theater wars. This year they have been tasked to support the scale down of the 

Army's Brigade Combat Teams. Three Navy Reserve Units rotated through the Expeditionary 

Academy in FY14 providing Distribution with approximately 74 soldiers, sailors, and airmen in 

the green to deploy in the event of a HAVE/FEMA event. A total of 65 percent of DLA 

Distribution reservists have completed the training and are currently scheduled for a mission in 

FY15.

h. Operation United Assistance (OUA)

DLA Distribution successfully processed more than 50 DLA Distribution employees through the 

deployment platform in support of OUA making them ready to deploy on a short suspense. DLA 

Distribution worked countless hours to assure these members were successful and properly 

equipped to execute the mission. The OM/J-9 team led the Distribution effort on all deployer 

travel orders, travel reservations, entitlements, and the accountability through the pipelines. 

DLA Distribution deployed 29 members for OUA with most deployments taking 21 days from 

notification to arrival in Africa. This is a decrease by 50 percent of the time normally required to 

deploy DLA Distribution employees.

i. Reserve Support
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For FY14 Distribution reservists provided 28,497 man hours of support, completing 386,208 

lines which provided a $692,935 cost avoidance to the Agency. 

For FY14, Distribution reservists completed 93 deployments and exercises resulting in 6,584 

man days of support. 

j. EEO

The DLA Distribution Senior Executive Service Member was named as “Diversity Champion.” 

Distribution employees participated in 24 Special Emphasis Program observances held 

throughout DLA Distribution or its host installations. 

Defense Logistics Agency implemented a General Order, which incorporated EEO offices from 

all DLA Distribution sites under one umbrella at New Cumberland, Pennsylvania.

DLA Distribution EEO Staff trained over 3,000 employees on EEO subjects in the classroom. 

This training augments the Notification of Federal Employee Antidiscrimination and Retaliation 

(NoFEAR) training.

ADR Training was provided to all Commanders, Deputies and Directors during Audit Readiness 

Stand-down. This strategy continues to prove successful in resolving complaints at the lowest

level. 

There were two VTC brown bag luncheons held with 27 Union Officials Distribution wide to 

discuss, the EEO Accept/Dismissal Process, the Advantages of using Alternate Dispute 

Resolution for EEO and Non EEO conflict and Understand the EEO MD 715 report. 

A Federally Employed Women's Workgroup was established to promote education and 

participate rates on hiring, training and retaining females in federal employment.

There were 112 ADR sessions conducted during FY14 and 72 were resolved.

3. Customer Solutions

a. Big Ideas Savings

DLA Distribution continues to achieve the promised savings as early in the FYDP as possible 

while allowing for the agency to meet its mission with the lowest possible cost. DLA 

Distribution’s goal for Big Ideas through FY19 is $334.6M (FY14-FY19).

The FY14 DLA Distribution Big Idea savings target was $40.4M and saved a total of $137.M, 

$96.9M above the target.

Operating Cost Reduction $ 13.45 million

Travel Reduction $ 7.7 million

Supplies $51.7 million
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Scheduled truck $ 15.85 million

Container Utilization $ 12.1 million

STO’s $ 17.9 million

Contract Reduction $ 18.6 million

TOTAL $137.3 million

4. Optimization

a. Distribution Network Optimization 

DLA Distribution returned four buildings at Susquehanna’s Mechanicsburg site resulting in a 

492K gross square feet (GSF) reduction in support of the Agency’s building knockdown 

initiative. This organization is on track to achieve the planned GSF reductions for FY15.

b. Shape the Distribution Network

From December 1992 through the end of FY14, DLA Distribution has reduced its wholesale 

covered storage footprint by 67.2M GSF, or 63.5 percent. DLA Distribution will apply the same 

principles to the recent Retail and Disposition Services Storage and Distribution (S&D) and 

Navy Warehouse Transfer (NWT) infrastructure gains, incorporating them into the out-year 

Space Optimization planning.

 c. Equipment Life Cycle Management 

DLA Distribution developed and implemented the DLA Distribution Material Handling 

Equipment (MHE) Standard Operating Procedures that will be used as the Agency template for 

standardizing MHE licensing, training, and safe operations. The organization established and 

published MHE training guidelines to provide distribution centers with the necessary tools to 

implement their MHE training and licensing program.

In FY14, DLA Distribution completed the fiscal year Equipment Deep Dive Review, identifying 

379 pieces of MHE equipment for disposal with life cycle costs savings of over $12 million. 

DLA Distribution acquired $25 million in additional obligation authority to buy ahead against 

aged equipment, thereby accelerating efforts to achieve an MHE fleet inventory posture which 

consists of equipment that no longer exceeds its life expectancy. 

Working closely with Installation Support and its distribution centers, DLA Distribution turned 

in 66 vehicles to GSA for an estimated cost savings for the Agency of $1.4M across the FYDP.

d. GSA Eastern and Western Distribution Center Closure 

In FY14, DLA Distribution continued efforts to become the distribution service provider for the 

Whole of Government (WOG) by expanding its partnership with the General Services 

Administration (GSA). With a charter to provide the best value distribution solution to common 
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customers, DLA Distribution and GSA integrated GSA’s Eastern Distribution Center (EDC) and 

Western Distribution Center (WDC) functions into DLA’s Distribution network. 

During the third and fourth quarters of FY14, the two phase integration encompassed the transfer 

of more than 5.2K lines of GSA material from the GSA EDC and WDC into DLA Distribution’s 

CONUS Strategic Distribution Platforms (SDP). This transition resulted in storage utilization of 

195K GSF to include 10.5K GSF specialized storage for hazardous material.

Phase I focused on the seamless transition of 480 lines of mission critical material for the USDA 

Forest Service’s Wildland Fire Program. By 1 MAY 14, DLA Distribution established 

management of all Phase I material and began filling USDA Forest Service’s Wildland Fire 

Program customer requisitions.

Phase II focused on the remaining 4.8K lines of GSA hazardous material to be managed at DLA 

Distribution. By 1 JUL 14, DLA Distribution established management of all Phase II material. 

5. Operations

a. Continuity of Operations (COOP)

In FY14, DLA Distribution completed the annual review of the Continuity of Operations 

(COOP) plan, ensuring compliance with Federal Continuity Directive 1. The COOP training and 

exercise plan was approved and executed with four key activities conducted from February to 

December. The most significant exercises were the deployment of the mobile command center to 

an alternate work site, the relocation of designated Mission Critical Emergency personnel to the 

Alternate Work Facility (AWF) in Columbus, and the conduct of an emergency MRO pick, pack, 

and ship from Distribution Susquehanna during a notional Distribution Standard System (DSS) 

outage. The COOP staff was also responsible for the initial scope and deployment of the Mass 

Notification System across the DLA Distribution Susquehanna, PA installation.

b. Navy Warehouse Transfer (NWT)

c. DSS Implementation at New London and Cheatham Annex

The Navy needed to sunset U2 at the end of FY14, and DSS had to be operational at each site to 

ensure continuity of operations. Over the course of several months key stakeholders from DLA 

and the Navy met to facilitate this implementation: all IT requirements were resourced and 

phased to support implementation dates; appropriate training to support the implementation 

timeline was conducted; accountability of all inventory at each location, was established and 

maintained; and proper storage of all transferred items was validated. DLA-Distribution 

developed and executed a synchronized plan that enabled the organization to accomplish the 

DSS installation at Cheatham and New London in accordance with all established deadlines.

d. DSS Implementation at Port Hueneme and Gulfport 
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DLA Distribution, working in close concert with the Naval Facilities Engineering Command 

Engineering and Expeditionary Warfare Center (NAVFAC EXWC), has established a way 

forward for DSS implementation at NBVC Port Hueneme and NCBC Gulfport. The FY14 

planning effort will have ”go live” for DSS at these two sites during March and May 2015, 

respectively. 

e. Littoral Combat Ship Support

As part of the ongoing capitalization efforts, DLA accepted 2,405 line items for LCS 1.

f. Bahrain

The establishment of DLA Distribution Bahrain, Southwest Asia enhances customer support and 

improves material management through the use of an in-theater DLA-operated automated 

warehouse, with integrated transactions with the Distribution Standard System (DSS) and 

transportation management system and thereby enable forward positioning of wholesale assets to 

support the mission requirements in the USCENTCOM AOR. The forward stocking of General 

Services Administration (GSA) materials in Bahrain resulted in 1,697 Materiel Release Orders 

(MRO’s) being processed for fast-moving GSA managed items via local issue to joint customers, 

which resulted in improved war fighter readiness, a reduction of customer wait time, an 

increased use of surface transportation and increased availability of strategic airlift for other 

combatant commander priorities. GSA currently has 118 NIIN Lines on hand with support 

focused on UAE, Bahrain and all 5th Fleet vessels operating in the AOR. The end state is to have 

a 120-day supply of stock on ground that will occupy 25,000 square feet of warehouse space 

with expanded support Qatar and other locations within the region upon implementation of 

GSA’s Vendor Module in the 4th Quarter of FY15.

g. Army Prepositioned Stocks

Army Materiel Command transitioned 1278 line item to DLA Distribution Korea and 311 line 

items to DLA Distribution Yokosuka as part of the Army G-4's request to reduce storage of 

redundant items, reduce the shelf life liability of Army stored assets supporting APS-4 and 

mitigate costs associated with the disposal, transportation, purchasing and general administrative 

costs of stocking Army War Reserve Secondary Items (WRSI).

h. Disposition Services/ Distribution S&D Integration Initiative

The DLA Distribution and Disposition Services (D2) program seeks to align the S&D functions 

between the two PLFAs to increase enterprise effectiveness, to improve customer experience, 

and reduce enterprise cost by consolidating resources. The transfer of 16 co-located sites 

(CONUS & OCONUS) occurred by end of year FY14 with a total of 178 employees being 

transferred from DLA Disposition Services to DLA Distribution. At the close of FY 14, the 

program has developed business rules, an interface document and a Memorandum of 

Understanding (MOU) that outlines the working relationship, functions and responsibilities at all 

levels. The program will evolve into a closely aligned network between the Primary Level Field 
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Activities (PLFAs) where DLA Distribution will serve as the storage and distribution service 

provider in support to DLA Disposition Services. 

i. FY14 AOP Planning

DLA Distribution Future Plans coordinated and led a cross staff working group to develop the 

FY15 Annual Operating Plan using a modified Joint Operational Planning Process (JOPP). This 

deliberate planning effort used the operational design approach to analyze the current 

environment, perform a mission analysis, and develop three Courses of Action (COA), analyze 

and compare the COAs, and develop a core document. The FY15 focus of "shaping" will reset 

and posture the organization to consolidate all non-tactical storage and distribution work within 

Department of Defense (DoD), Whole of Government (WOG), and worldwide partners. 

j. Sustainment, Restoration and Modernization (SRM)

The DLA Distribution total SRM requirement is $406M. In 2014, we were awarded an 

operating budget of $141.3M which resulted in a 99% committed and 97.9% obligation rate. 

Major categories of work funded across the DLA Distribution footprint included $53.6M in 

Major Maintenance and Repair, $22.9M in Mission Support, $21.9M in Fire Suppression, 

$11.8M in Modification to Prior Year Projects, $6.5M in Utility, $5.5M in Demolition, $4.5M in 

Safety, $2.6M in Design for Future Year Projects, $1.7M in Energy, $1.1M in Cyclic 

Maintenance and Repair and $643K in Security. Of significance, is the coordination between 

DLA Installation Support and DLA Distribution that resulted in an allocation of $4.5M directly 

to depot site commanders to use at their discretion in FY15.

k. Military Construction Program (MILCON)

The DLA Distribution MILCON Program Priorities Package was forwarded to HQs in April 

outlining our 2016-2020 allocation of $244.1M. Our submission included two projects at Red 

River, Texas in FY 17; one project at Norfolk, Virginia in FY18; one project in Red River, Texas 

in FY19 and one project in Susquehanna (New Cumberland, Pennsylvania) in FY20. Over the 

last three years, nine projects have been completed at the cost of $207.7M. There are currently 

seven projects under construction at the cost of $208M. Five of the seven construction efforts 

are here at Susquehanna, the remaining two at San Joaquin, California. Susquehanna was the 

sole depot site with four projects in design at the cost of $16.6M.

l. Area Development Plan (ADP)

Master Planners considered future infrastructure requirements, utilization and capital investment 

strategy for 12 DLA Distribution sites: Albany, Anniston, Barstow, Cherry Point, Corpus Christi, 

Hill Jacksonville, Norfolk, Oklahoma City, Puget Sound, Red River and Richmond. In June, 

DLA HQs awarded a separate Master Planning contract through the Fort Worth Corps of 

Engineers Office to complete our remaining 10 CONUS and OCONUS ADPs as well as 17 other 

DLA Enterprise sites of which DLA Disposition has the major presence. 

m. Industrial Hardware Initiative 
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DLA Distribution provided input to the BCA process that determined the sourcing solution for 

industrial hardware that represented 2.4M annual requisitions at DLA Distribution Susquehanna 

and San Joaquin. Based on our input, the Director approved sourcing via long-term contract and 

continued use of the DLA Distribution network for this materiel. This decision will continue to 

provide the best customer wait time at the lowest cost to the Agency. 

n. GE F-Series Engine Contract 

In coordination with DLA Aviation and GE, DLA Distribution developed a performance-based 

logistics agreement that provides supply availability and leverages the organization’s existing 

storage and distribution capability at Oklahoma City. DLA Distribution looks to expand this 

business model to all PBLs in the future. 

o. Foreign Military Sales (FMS) Consolidation 

DLA Distribution opened a new business segment by establishing a Foreign Military Sales 

consolidation capability at DLA Distribution Susquehanna, Pennsylvania for the Greek Hellenic 

Army and Air Force. DLA Distribution willo extend this concept by adding Romania in FY15. 

This concept was developed with DSCA, USTRANSCOM and the MILSVC FMS Commands. 

p. U.S. Army Program Manager (PM) Materiel located at Tobyhanna

DLA Distribution integrated storage and distribution for 23 Army Program Managers’ materiel 

at Tobyhanna Army Depot (TYAD). This initiative will improve inventory accountability and 

provide asset visibility for materiel owned by the PMs that is utilized in the maintenance process 

at TYAD. 

q. IDA Study 

DLA Distribution provided input to the OSD-charted IDA study on the DLA roles and 

responsibilities. Our team conducted a site visit to Anniston and participated in several working 

sessions to ensure the DLA storage distribution’s capabilities were represented in the study. 

r. DNA Marking Storage and Distribution at Columbus 

DLA Distribution established a storage and distribution detachment in Columbus to support the 

Agency’s DNA Marking Program. This program involved DLA Land and Maritime, J6, and 

DES.

s. Aviation/Storage & Distribution IPT

DLA Distribution established an IPT to align and integrate DLA Aviation and DLA Distribution 

support at the three Air Logistics Centers (ALCs.) This IPT is focused on metrics, policy, and 

alignment.
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t. Joint Striker Fighter (JSF)

DLA Distribution attended several IPTs and established the foundation to become the long-term 

DLA storage and distribution provider for the JSF program. DLA Distribution DLA Aiation, 

JPO, Lockheed Martin and Pratt & Whitney to develop a future partnership. 

u. Meeting DLA Agency Performance Review (APR) Standard

FY14’s performance for Denial Rate metric was the best in more than a decade; at 0.32 percent, 

significantly besting the goal of 0.45 percent. Receipt metrics were cumulatively strong, 

exceeding the 90 percent standard with inductions at 91.4 percent and stows at 96.4 percent. 

v. FY14 Operational Challenges Met 

DLA Distribution’s Strategic Distribution Platforms (SDPs) assumed the GSA Fire Support 

mission and successfully expedited, issued, and received firefighting material in support of the 

Forest Service’s efforts to combat wildfires in the Western United States. DLA Distribution 

Susquehanna, Pennsylvania successfully provided FMS consolidation support to the Hellenic Air 

Force and Hellenic Army via Total Package Fielding (TPF) due to the inability of the Greece 

Freight Forwarder to provide such service. Additionally, DLA Distribution San Joaquin, 

California overcame challenges and successfully ramped up production of Unitized Group 

Rations (UGRs) meals, meeting a build requirement of 14K per month, to replenish Troop 

Support critical war reserves. 

w. Safety 

(1) Reduction in case rates/lost time rates

In FY14, DLA Distribution reduced its total case incident rate by 20 percent and its lost time 

case rate by 16 percent as the Distribution Centers remained well within the OSHA incident rate 

standards. 

(2) Safety Deep Dives

Deep dives with each distribution center on high risk hazards continued throughout the year, to 

include Risk Assessment Code (RAC) II and RAC III hazards, with a focus on proper interim 

controls and timely abatement actions by the hosts. From 2013 to 2014, DLA Distribution 

reduced the number of RAC II hazards by 77 percent and for 2014 DLA Distribution lowered the 

volume of RAC IIs by an additional 56 percent. For RAC III hazards, the organization reduced 

our volume in 2013 by 88 percent and in 2014 lowered the volume by an additional 75 percent. 

(3) Safety Program Assessments

DLA Distribution completed 10 Safety Program Assessments with the distribution centers, 

focusing our training and assessments on key incident drivers as noted in the Enterprise Safety 

Applications Management System (ESAMS). Doing so, achieved positive results in reducing the 
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overall number of safety incidents in the organization’s top categories, including an 18 percent 

reduction in overexertion mishaps and a 12 percent reduction in slip, trips, and falls. 

Additionally, DLA Distribution reduced material handling equipment mishaps by 38 percent vs. 

the 2013 baseline.

(4) Safety Assessments and Supervisory Inspections

DLA Distribution achieved above a 99 percent completion rate on scheduled safety assessments 

and supervisory inspections as the organization continued an aggressive stance in the timely 

identification and mitigation of hazards in the workplace. 

(5) Expeditionary Assets 

DLA Distribution planned and executed an exercise to Ft. Knox, Kentucky in support of the 

Army Brigade Combat Team (BCT) drawdown. This exercise demonstrated DLA Distribution’s 

capability to Army leadership. Army then requested, and DLA Distribution provided, additional 

support to Joint Base Elmendorf Richardson, Alaska, Ft. Stewart, Georgia and Ft. Drum, New 

York. Planning is ongoing for FY15 requirements. 

In support of Operation United Assistance (OUA), Expeditionary assets were deployed to West 

Africa to assist with humanitarian efforts in combating the Ebola Virus Disease. Warehousing 

operations were established in Dakar, Senegal and Monrovia, Liberia. Expeditionary teams 

established distribution operations, received, stored and arranged transportation of material to 

Ebola Treatment Units and in theater customers. 

(6) Transportation 

During FY14, the Scheduled Truck Program provided $11.4M in cost avoidance to our Service 

customers. The Vendor Shipment Module (VSM) program, which automates the route and 

freight charge selection process while providing a print capability for shipping labels and 

transportation documents, registered 11,252 new vendors during the year. By leveraging VSM 

with an expanded vendor base, we are able to reduce customer wait time, increase shipment 

accuracy, and improve in-transit visibility.

For FY14, DLA Distribution also established a satellite transportation office in Battle Creek, 

Michigan at the DLA Disposition Headquarters. This office will handle disposition 

transportation requests as well as offer additional support to vendors involved with First 

Destination Transportation.

x. Standardization/Audit Readiness 

(1) Compliance

DLA Distribution implemented an overarching Compliance program with structured elements 

that addressed both quality control and quality assurance logging over 11,000 completed 

surveillances in FY14. These targeted efforts spanned the distribution network and ensured 
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standardized process adherence, encompassing all business cycles and functional areas of 

operations. 

Dedicated Quality Assurance Evaluators (QAEs) were placed at all Distribution sites monitoring 

and reporting findings through the Quality Management System (QMS). Ownership of 

Compliance was driven to the lowest levels of the organization and quarterly Quality Control test 

plans were implemented by site leadership to address the key internal controls that support Audit 

Readiness. The product of these efforts is a sustainable and systematic approach tracking 

compliance findings from discovery through site developed Corrective Action Plans (CAPs) to 

final closure upon successful remediation.

(2) Audit Readiness

FY14 marked the year of consistent communication across the Distribution network on all 

assertions while providing key messages on P2S functions and testing results. Distribution 

hosted on-site training in New Cumberland with all Distribution Commanders and Directors to 

discuss Audit Readiness and the expectations of the Commanding General.

DLA Distribution asserted Audit Readiness in accordance with criteria based on the DoD FIAR 

Guidance where DLA is the Service Provider to the Military Services and also for DLA Supply

Centers concerning inventory in the custody of DLA Distribution centers. The assertions rely on 

a combination of substantive testing results and operationally effective systemic and manual 

internal controls. DLA Distribution identified, tested and asserted controls that are suitably 

designed and operating effectively, providing reasonable assurance that the Financial Reporting 

Objectives (FROs) are achieved.

In FY14, we advanced auditability across the enterprise, successfully documenting processes that

account for $1.6 billion of Department of Defense work, on time or ahead of schedule, while 

supporting Army, Navy, Air Force, and Marine financial audit requirements. To date, DLA 

Distribution completed the initial development and revalidation phases for process cycle 

memorandums (PCMs) falling under P2S Functions in addition to the crosswalk/outline of the 

P2S Business Cycle to Standard Operating Procedures (SOPs). The organization dispatched 

teams to all sites across Distribution, CONUS and OCONUS, to heavily test all key controls, 

ensuring each site is held accountable and responsible for their results and corrective actions.

The DLA Distribution J4 team developed process maps, JBSs, QC checklists and SOPs for 41 

processes and 19 sub-processes in the areas of Inventory, COSIS/Special Inspections, Shelf 

Life/Special Commodities, PPP&M, Kitting and Hazmat. They participated in the Audit 

Readiness (AR) revalidation of the Process Cycle Memorandum (PCM) for Stock Readiness, 

Inventory and Kitting, to include support in the area of both TOD and TOE testing. The J4 

supported planning and development of the floor-to-book Inventory CONOPs and testing to meet 

the Audit Readiness requirement.

y. Inventory 
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With J4 oversight, DLA Distribution has met or exceeded the DoD MILSTRAP inventory 

accuracy goals in all categories for eight consecutive years. This represents ~2.4M NSNs with a 

value of ~$105B. Inventory accuracy improvement and continued sustainment is the result of 

systemic controls, documented processes, targeted clean-up efforts and comprehensive training 

of distribution processes directly impacting the accountable balance record. Continual review 

and analysis of errors is ongoing to identify areas to improve processes and accountability of 

inventory. DLA distribution reversed 4,320 inventory adjustments through causative research for 

a total of 2.2M reaches and an aggregate dollar value of $313M. 

z. Stock Readiness

Through various Suspended Stock working groups, Distribution J4 Stock Readiness Team 

facilitated obtaining disposition instructions for distribution centers in order to remediate or 

dispose of suspended assets stored at the centers. The team sent 3,216 follow ups to Military 

Service Item Managers to obtain disposition instructions on aged SQCRs. During 2014, DLA 

Distribution centers closed over 54K SDRs and SQCRs. The team also distributed 116 Safety of 

Flight and Safety of Use messages to the centers. In addition, they distributed and tracked 1,725 

special inspection requests and stock screening inspections for potentially defective stock. All of 

this effort ensures that materiel is ready for issue to the warfighter.

aa. Kitting 

DLA Distribution successfully handled over 700,000 lines and completed a total of 40,143 kits 

for the year. Of this total, 11,922 kits were built for DLA Aviation, 24,568 for DLA Troop 

Support, 2,036 kits completed for Air Force, and 1,617 kits for USAMMA. Distribution J4 

worked diligently to have the first shipment of supplies (first aid kits) sent to the Ukraine per 

direction of the White House and Office of Secretary of Defense; the request was received and 

executed within a 24 hour timeframe. Additionally, the J4 has completed the Project, 

Consolidation & Packaging (PC&P) process manual which covers Supply Center EBS kits.

bb. DSS Implementations

The J4 supported the roll-out of the Distribution Standard System (DSS) at New London and 

Cheatham Annex. This included initial documentation of processes, training of the workforce, 

DSS testing, refresher training and IOC support for two to three weeks post-Go Live. Inventory 

SMEs were on site during Black Out to validate data conversion and perform sample inventories 

prior to IOC. They successfully completed two performance sample inventories in Feb 14 and 

Aug 14, meeting or exceeding all DoD goals and completed the Chief Financial Officer 

inventory in Sep 14. Additionally, shelf life programs were validated/emplaced. 

cc. Seasonal Flu Vaccine 

Distribution J4 worked with other stakeholders to have Seasonal Influenza vaccines 

(approximately 2.5M) receipted at DLA Distribution Susquehanna and distributed to members of 

all military branches, their dependents, and DoD civilian employees world-wide. Proper cold 

chain management packaging protocols were strictly adhered to by DLA Distribution Centers 
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and constant monitoring of temperature ranges while materiel was in storage and transit were 

accomplished to ensure material integrity for warfighter use. 

dd. CBRN countermeasure auto-injectors

In June 2013, DLA Troop Support identified concerns with the ATTNA auto-injectors to include 

those in storage at DLA Distribution Susquehanna Pennsylvania. All auto-injectors were 

immediately suspended pending investigation. DLA Distribution participated with the DoD 

Medical Logistics Community through weekly conference calls with all stakeholders to develop 

courses of action to be taken. Working with DLA Troop Support and the manufacturer, the 

majority of the auto-injectors were returned for corrective action utilizing specialized controlled 

temperature containers. The remaining assets in storage were maintained for immediate 

deploying units. These assets were entered into the Shelf Life Extension Program (SLEP) for 

FDA testing and possible shelf life extension as a stop gap measure until new production could 

be initiated, which is anticipated to begin early in 2015. Distribution J4 coordinated efforts to 

have these pharmaceuticals entered into SLEP database and FDA tested. Materiel in storage has 

now been tested, extended and returned to issuable condition for Warfighter use.

ee. Relabeling of DoD Pandemic Stockpile antivirals: 

Distribution J4 worked with other stakeholders to have the FDA grant a waiver to relabeling of 

DoD Pandemic Stockpile antivirals due to short periods between test periods and large quantities 

that would require relabeling. If a Pandemic event occurs, this materiel must be ready for issue 

and compliant with FDA guidance within 48 hours. Distribution can now meet these 

requirements for Warfighter support.

ff. GSA Mission

DLA Distribution began assumption of GSA’s distribution functions due to the planned closure 

of GSA’s two distribution centers located in Burlington, New Jersey and Sharpe, California by 

relocating GSA stock to DLA Distribution Susquehanna, PA and DLA Distribution San Joaquin, 

CA. One critical mission assumed included support for wildfires across the United States in May 

with the transfer of over 400 NSNs pertinent to the firefighter missions. Rapid changes to DSS 

programing, and internal Policies were needed to keep GSA stock segregated from DoD stock 

while still providing emergency support to combat wildfires. DLA has seen dramatic increases 

in our Containerization Consolidation Points (CCP) workload due to the closure of the GSA 

depot in Sharpe, and there is a planned increase for the closure of the GSA depot in Burlington 

due to the assumption of Direct Vendor Delivery material order by customers through GSA that 

is inducted into the DoD transportation network via our CCP functions at DLA Distribution 

Susquehanna, Pennsylvania and DLA Distribution San Joaquin, California. DLA Distribution 

has seen increases in overall workload with the assumption of all GSA stocked NSNs.

gg. IMSP Implementation 

DLA Distribution completed the Fleet Readiness Centers (FRC) Inventory Management Stock 

Positioning (IMSP) Implementation of three sites (FRC-W, FRC-SE, and FRC-E). DLA 
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Distribution worked in coordination with DLA HQ and DLA Aviation in implementing IMSP 

Spiral 2, extending DLA’s Enterprise Business System (EBS) and Distribution Standard System 

(DSS) process capabilities and system functionalities to the Naval retail sites and incorporating 

the FRC’s storage and distribution function into DLA Distribution’s storage and distribution 

purview. The function of the DLA Distribution team was to successfully transition wholesale 

practices/policies into retail practices/policies, identify gaps within the policies, create retail 

policies within DLA Distribution/DoD regulation, create training manuals for these policies, 

present and/or assist with the training of the converted retail employees, and coordinate with J6 

for the implementation of DSS into the Navy Retail. This effort converted approximately102K 

NIINs (collectively from the three sites), with an estimated dollar value of $320M and consumed 

approximately 10,000 man hours within DLA Distribution. Implementing IMSP at sites will 

assist DLA HQ/Navy in achieving increased visibility of enterprise inventory, will assist in 

leveraging DLA’s wholesale supply chain management and consumable items in a retail 

environment, optimize safety stock across multiple echelons of operating inventory, and allow 

for DLA to improve supply efficiencies by reducing inventories across FRC locations.

hh. OF-49 Data Cleansing

DLA Distribution met or exceeded the goals and metrics for Data Cleansing with regard to the 

OF-49 DSS to SAP Interface. Throughout the year the daily error metric was below the five 

percent threshold. Additionally, the DLA Distribution workload has been completed within the 

Enterprise wide 30 day timeframe.

ii. Audit Readiness 

DLA Distribution met or exceeded the goals and metrics for Data Cleansing with regard to the 

OF-49 DSS to SAP Interface. 25,554 IDOCs were worked during FY 14 increasing data 

integrity, inventory accuracy and allowing timely and accurate vendor payments. Throughout 

the year the daily error metric was below the five percent threshold. Additionally, the DLA 

Distribution workload has been completed within the enterprise-wide 30-day timeframe. 

jj. DSS Access Audit Readiness CAP 

DLA Distribution redesigned DSS Role Based Access Controls (RBAC) to enable the 

organization to integrate into the Account Management and Provisioning System (AMPS) for 

DSS system access. The redesign allowed for DSS to go from over 50 user roles to eight 

primary roles that have the segregation of duties business rules built into the user role 

configuration. The business rules are based on operational business needs and are supported by 

internal controls allowing for maximum flexibility of warehouse workers. This project consisted 

of three months of work redesigning roles and working with auditors for audit worthiness, and 

then four months of training all the distribution centers on the new processes. The DSS role 

redesign was approved by KPMG for audit. The J4 Team trained all distribution centers on the 

new roles and how to submit in AMPS. Every DSS user is now submitting for access using the 

new role structure in AMPS. To date, over 4600 requests have been approved. 

kk. DSS System Enhancements
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DLA Distribution tested and implemented a total of 87 Request for Changes (RFC) during FY 

14. These changes included enhancements to current processes to improve efficiency, changes 

due to new business operations being acquired and mandated changes per policies. Due to these 

changes DLA Distribution completed over three weeks of testing for each of the increments. 

The main increments were 14.03, 14.05, 14.06, and 14.09, with smaller audit readiness releases 

in between the main increments. DLA Distribution also conducted an RFC clean-up at the 

beginning of this year, which resulted in 18 RFC’s cancelled due to the requirements no longer 

being needed. In addition to the cancellations, requirements were updated on RFC’s that were 

still needed. This clean-up also fixed conversion issues left from the transfer of information 

from Infoman into the new Enterprise Change Request Tool that was fielded in FY 14. By 

cancelling the 18 RFCs, the resource impact was the same as if a full major increment was 

cancelled resulting in saving three weeks’ worth of system testing equating up to 300 hours of 

testing, up to 20,000 hours of coding, and administrative savings of briefing and approving RFCs 

through the ECRT process that includes approval by DLA HQ SES, J6 project management and 

estimation and costs for J6 and DISA to implement the RFCs

ll. Acquisition Operations

(1) Contract Awards/Small Business Goals

In FY14, Acquisition Operations awarded 2,600 contracting actions valued at $224.4M with over 

$13M in service contract savings achieved through negotiating, reverse auctions and improved 

cost reimbursement estimating methodologies. Additionally, DLA Distribution Jacksonville, 

Florida contract operation was converted from an unrestricted acquisition to a small business setaside, enabling J7 to exceed our established Small Business goal by four percentage points 

attaining a 72% Small Business rate for the FY. 

(2) Rollout of Quality Assurance Program

The Contract Quality Assurance Program Office (CQAPO) successfully completed the much 

anticipated rollout of the Quality Assurance (QA) program to all remaining Distribution Centers. 

Having already implemented this program at eight (8) Contractor-Operated and five (5) 

Government-Operated locations, the CQAPO was able to visit the eleven (11) remaining 

Distribution Centers, train their QA teams (over 352 classroom hours), and maintain daily 

interaction with all locations to ensure smooth and successful distribution oversight operations. 

The QA program was also revised to incorporate distribution-related requirements to satisfy 

contract oversight, DLA Distribution Compliance requirements, and Controls (key and non-key) 

for Audit Readiness. During FY14, CQAPO personnel conducted 8,560 surveillance and 

oversight reviews of site-submitted surveillances.

(3) Reduction of Government Purchase Card Holders

DLA HQ requested a reduction in the number of Government Purchase Card (GPC) Holders. 

DLA Distribution J7 began with 219 Cardholder accounts. DLA Distribution was able to reduce 
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the number of GPC cardholder accounts to 122, (44% reduction), across the Enterprise. This 

also resulted in the number of Billing Accounts being reduced from 95 to 68. 

(4) GPC Reviews

DLA Distribution J7 reviewed 15,552 GPC Transactions and further reviewed 2,689 of those 

transactions. Of the 2,689 transactions reviewed, there were 849 documented findings. Most of 

these findings were due to the continuous changes in the guidelines for the GPC and 

implementation of a new approval form and mandatory use of DoD EMALL.

(5) PCM’s for Government Purchase Card and Accountable Property for 

Audit Readiness

DLA Distribution J7 participated in the development, TOD and TOE testing of the PCM's for 

Government Purchase Card and Accountable Property for audit readiness. After multiple wallto-wall inventories and system updates/uploads, DLA was able to assert Capital Equipment 

September 30, 2014. 
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BLANK PAGE
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Defense Logistics Agency

DLA Human Resources (J1)

Fiscal Year 2014 Annual Historical Report

1. Introduction

DLA’s ability to attract, develop and retain a diverse, skilled and agile workforce is vital to our 

continued mission as America’s Combat Logistics Support Agency. Our workforce is highly 

skilled and committed to meeting the needs of the Warfighter, but there is always an opportunity 

to improve, particularly in our rapidly changing, global environment.

In Fiscal Year 2014, DLA Human Resources (J1) took a number of steps to improve and sustain 

the effectiveness and efficiencies of its service to customers, civilian and military, internal and 

external to DLA. J1 also used key operating goals, metrics, and other tools used to regularly 

monitor its performance and ensure DLA’s workforce had the capabilities to meet present and 

future mission requirements. 

J1 FY 2014 pursuits were shaped by the austere budget realities facing DLA. J1’s strategic 

initiatives and key operating metrics reflected an emphasis on rightsizing the workforce, 

increasing efficiencies, revalidating workforce investments, and pursuing initiatives that fostered 

an engaged, high-performing workforce. As DLA leaders navigated through adversity, J1 stood 

ready to help them choose the right mix of human capital strategies to achieve their workforce 

goals.

.
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2. Mission, Vision and Values 

 Mission

We are America’s Combat Logistics Support Agency. We provide effective 

and efficient worldwide support to Warfighters and our other customers.

In support of the DLA mission, DLA Human Resources (J1) finds, hires, 

trains, and sustains a mission-ready workforce for DLA and our HR 

customers, using world class policies, processes, programs, and tools.

 Vision

Warfighter-focused, globally responsive, fiscally responsible supply chain 

leadership

 Values

Our values are DLA’s foundation for all we do.

They provide our guiding principles as we accomplish our mission, pursue 

our vision, and strive to do what is right for the Armed Forces and 

Department of Defense (DoD):

 Warfighter needs guide us

 Integrity defines us

 Diversity strengthens us

 Excellence inspires us
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3. J1 Organization Chart 

J1 provides the full-range of human resources (HR) policy, programs, and service delivery to the 

civilian and military members of our workforce as well as to the DoD customers serviced by 

DLA.

Our team has end-to-end responsibility to execute for the enterprise a wide variety of products 

and services including: workforce planning, talent and capability management, labor and 

employee relations, change management, training and development, recruitment and staffing, 

position classification, benefits and entitlements, awards and recognition, performance 

management, telework, personnel action processing, personnel file maintenance, injury 

compensation, human resources systems and data, continuity of operations, drug testing, civilian 

expeditionary workforce, and personnel accountability. J1 also is responsible for special project 

areas such as Financial Improvement and Audit Readiness (FIAR), the Hire to Retire (H2R) 

Process, the Enterprise Organizational Alignment Board, and the Continuous Process 

Improvement (CPI) Board.
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4. Overview of J1 Resources and Key Leaders

 

J1 Full Time Equivalents (FTEs) (Authorized) 48

DLA HR Services FTEs (Authorized) 720

Direct-Funded Support 395

Reimbursable Support 325

Reimbursable – DOD Support 274

Reimbursable – DLA Support 51

GRAND TOTAL 768

Leader Position

Mr. Brad Bunn Director, DLA Human Resources (J1)

Mr. Billie Keeler Deputy Director, DLA Human Resources (J1)

Ms. Chaletta McCoy DLA HR, Human Capital Program Development (J12)

Ms. Pamela Molloy DLA HR, Labor and Employee Relations Policy (J13)

Ms. Stacey Salo DLA HR, Human Resources Policy (J14)

Ms. Cheryl Steptoe-Simon DLA HR, Human Capital Business Integration (J17)

Ms. Janet Hoffheins Administrator, DLA Human Resources Services (DHRS)

Mr. Derek Saunders Director, DHRS at Columbus

Mr. Peter Marchesani Director, DHRS at New Cumberland

Ms. Jill Dixon Cromer Director, DHRS, DoD Customers

Mr. John Van Vactor Director, DHRS, DLA Training

Ms. Kathryn Roberts Director, DHRS, HR Information Systems

Dr. Carrie Register-Haley Director, DHRS, Military Personnel and Administration

Ms. Donna Estep Director, DHRS, Injury Compensation

Resources

J1 Key Leaders
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5. Path to Mission Accomplishment

Goal 3 (Workforce Development) of DLA’s 2011-2017 Strategic Plan is to foster a diverse 

workforce and supporting culture to deliver sustained mission excellence. This goal recognizes 

that the DLA workforce is vital to the Agency’s current and long-term success. It acknowledges 

that DLA must enable employees to capitalize on their skills, experience, and potential; prepare 

for workforce transition as retirements increase in the years ahead; and leverage the diverse 

backgrounds and abilities of both civilian and military personnel. The Goal 3 strategies set forth 

in the Plan clarify the Agency’s approach to meeting this goal: (a) attain a workforce that 

reflects the diversity of America’s relevant civilian labor force, (b) attain and sustain a sound 

Enterprise culture, and (c) establish a comprehensive talent management program to ensure a 

high-performing workforce.

J1 supports the DLA Strategic Plan, and Goal 3 attainment specifically, by ensuring that DLA 

attracts, hires, develops, rewards, and retains a diverse, skilled workforce that meets DLA’s 

current and future mission requirements. J1 provides programs and services, and carries out 

initiatives, that are anchored to this overall purpose by six principles of HR excellence. These 

principles, or anchors, together define our path to mission accomplishment. The six anchors are 

defined as follows:

a. Plan deliberately: Plan DLA’s recruitment, training, and other workforce readiness 

strategies deliberately, based on functional expertise and data-driven workforce analyses 

and projections.

b. Recruit smartly: Recruit smartly to attract a well-qualified, diverse workforce capable 

of meeting DLA’s current and future challenges.

c. Train and develop strategically: Train and develop the DLA workforce strategically to 

build mission essential competencies, address skill gaps, and facilitate employees’ long-term 

career progression.

d. Perform efficiently and effectively: Perform efficiently and effectively to achieve 

economies of scale, deploy user-centric systems and processes, and deliver world-class 

service to the DLA and external customer.

e. Integrate corporately and collaboratively: Integrate corporately and collaboratively to 

ensure that human resources policies, programs, and personnel serve DLA’s overall mission 

requirements and workforce needs.

f. Evaluate regularly: Evaluate regularly to measure progress against human capital 

goals, make course corrections, and acquire data to inform new workforce development 

initiatives.
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6. J1 FY14 Initiatives

J1’s FY14 AOP initiatives were based on key operational metric results, other oversight and 

monitoring outcomes, and the overarching priority to efficiently and effectively position the 

workforce to carry out DLA’s mission. Each of J1’s FY14 initiatives was tied to our J1 mission 

through a primary anchor, i.e., to plan deliberately, recruit smartly, train and develop 

strategically, perform efficiently and effectively, integrate corporately and cooperatively, or 

evaluate regularly. By clearly identifying these anchors, we achieved a line of sight between our 

day-to-day operational concerns and our overall mission to be a premier HR services provider to 

DLA and non-DLA customers.

Each of J1’s FY14 initiatives also was categorized by whether it was (1) an initiative supporting 

the Director’s strategic objectives or (2) an initiative supporting overall DLA workforce 

readiness. While all of J1’s initiatives supported the Director’s strategic objectives in that they 

contributed to a mission-ready workforce, some initiatives were more explicitly focused on 

helping the Agency carry out those strategic objectives. J1’s FY14 initiatives were as follows:

J1 Initiatives Supporting the Director’s Strategic Objectives

Perform-1 Support DLA Workforce Shaping Goals.

Integrate-1 Prepare Workforce for EBS / Retail and Transformation Initiatives.

Evaluate-1 Lead H2R Business Cycle.

J1 Initiatives Supporting Overall DLA Workforce Readiness

Plan-1 Integrate Enterprise Strategic Workforce Planning into Agency Operations.

Recruit-1 Implement Pathways Program.

Recruit-2 Improve the DLA Supervisory Selection Process.

Perform-2 Meet POWER (Protecting Our Workforce and Ensuring Reemployment) Goals.

Perform-3 Deploy the Rapid Climate Assessment Team (RCAT).

Integrate-2 Develop DLA Enterprise Newcomers Getting a Global Entrance (ENGAGE).

Integrate-3 Support Flexible Workplace Alternatives.

Integrate-4 Support DLA Fitness and Wellness.

Integrate-5 Improve Employee Engagement through Awards and Recognition.

Evaluate-2 Reassess the DLA Enterprise Culture.
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7. J1 FY14 Initiative Outcomes

Plan Deliberately

Plan 1: Integrate Enterprise Strategic Workforce Planning into Agency Operations

This initiative’s objective was to sustain strategic workforce planning across the DLA enterprise. 

During FY14, DLA’s GS-0511 and GS-1102 workforces participated in Department of Defense 

web-based competency assessment surveys. These assessments were conducted during the third 

and fourth quarters of FY14. Also during FY14, Functional Community Manager working 

groups developed strategic workforce plans for eight occupational job series (0028, 0080, 0081, 

0083, 0260, 0346, 1670 and 2001). Finally, the sustainment contract for the DLA Integrated 

Workforce Analysis and Planning Model tool (IWAPM) was awarded.

Recruit Smartly

Recruit 1: Implement Pathways Program

This initiative’s objective was to use the Intern and Recent Graduates programs under Pathways 

as a way to both fill DLA vacancies and meet DLA recruitment initiatives. Accomplishments 

included: (1) publishing the Pathways Program Directive Type Memorandum (DTM) in April 

2014; (2) onboarding 144 DLA interns; (3) hiring more than 20 Recent Graduates to supplement 

DLA’s Pathways to Career Excellence (PaCE) hiring; and (4) incorporating Presidential 

Management Fellows (PMF) into the Pathways DLA Instruction (DLAI). The PMF program is a 

leadership program managed by OPM and, while DLA has not participated in the program in the 

past, DLA is moving forward to incorporate this into the suite of programs used by DLA under 

Pathways. 

Recruit 2: Improve the DLA Supervisory Selection Process.

This initiative’s objective was to develop a more rigorous, competency-based approach for 

selecting DLA supervisors. Past DLA survey results and other feedback mechanisms indicated 

ongoing issues with the quality of DLA leadership. Although DLA has in place rigorous training 

and development for new and existing supervisors through the Enterprise Leadership 

Development Program (ELDP), the front-end process (i.e., supervisory selection assessment) still 

needed improvement. This need drove this J1 initiative that was successfully implemented by 

the close of FY14. Accomplishments included evaluating existing supervisory selection 

processes, obtaining approval of and communicating the new process, and initiating the revised 

approach.

J1 evaluated DLA’s current self-report selection assessment methodology, researched findings 

on alternative assessment tools and validity ratings thereof, and reviewed products of selection 

assessment vendors. These efforts resulted in a decision to adopt the Office of Personnel 

Management’s (OPM) supervisory Situational Judgment Test (SJT) to measure critical 
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leadership skills. SJTs are deemed by research experts as highly valid in predicting successful 

job performance, and the OPM SJT measures competencies that align with the DLA/DoD leader 

competency framework. The proposal, approved by the DLA Alignment Group and endorsed by 

the union, integrates the OPM SJT into the existing selection process and thereby provides for a 

more holistic evaluation of supervisory candidates. Technical competency will be evaluated 

through improved occupational questionnaires; leadership skills will be evaluated through the 

OPM SJT; behavior-based interviewing will be used to further assess and confirm competencies; 

and reference checks will be conducted to validate findings. The improved process will provide 

DLA with more reliable, precise referral lists; better suited candidates for leadership positions; 

and an improved organizational culture. FY14 closed with OPM SJT customization efforts 

underway with a phased-in deployment targeted for FY15.

Perform Efficiently and Effectively

Perform 1: Support DLA Workforce Shaping Goals

This initiative’s objective was to strategically shape the DLA workforce by focusing on 

rightsizing, increasing efficiencies, and advising senior leaders on appropriate actions. During 

FY14, J1 provided management advisory services to customers to help them strategically shape 

their workforces, achieve efficiencies, and plan for future mission changes. During FY14, 76 

downsizing allocations were used to abolish positions, and an additional 53 restructuring 

allocations were used to reshape existing positions to better utilize Full-Time Equivalents (FTEs) 

within activities. J1 also assisted DLA Distribution and DLA Disposition with the consolidation 

of Storage and Distribution Functions between the two Primary Level Field Activities (PLFAs) 

to increase enterprise effectiveness, improve the customer experience, and reduce enterprise 

costs. This was accomplished in three phases by transferring approximately 64 Disposition 

employees to DLA Distribution sites where they are co-located. 

Also under this initiative, J1 developed a new staffing model that transitioned from one that 

covered transactional/operational staffing levels to one that covered operations, policy, 

programs, strategy and oversight, training and workforce development. The new staffing model 

covers a significantly larger portion of J1's staffing requirements and can be used as a gauge for 

future requirements by aligning our model with Federal and/or industry standards. The model 

not only supports DLA customers with HR services/support, but it also provides support for 

nearly 44,000 customers throughout the DoD Community. The J1 Staffing Model covers 

roughly 94% of all J1 staffing requirements. The remaining 6% that is not covered by the new 

model are those FTEs supporting Military Personnel and Administration, and all 300 series 

supporting HR. In June 2014, J1 received concurrence and approval from J8 and DORRA to 

use the model. The J1 Staffing Model was also briefed at the June AG meeting, with no 

concerns noted.

Finally, success under this initiative was measured and reflected by J1’s performance on its key 

metrics as follows:
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 J1 FTE Execution Rate: The annual goal for the J1 FTE Execution Rate is between 

98%-102%, while the Acceptable Performance Level (APL) is between 95%-97% or 

103%-105%. During FY14, there was a 3% reduction in FTE Authorizations across the 

agency for directly funded FTEs. J1s FTE Execution Rate was 96.9% which is in the 

acceptable performance range; however, it is right on target based on the 3% reduction.

 Mandatory Training Execution Rate: The annual goal for the Mandatory Training 

Execution Rate is 95% or above, while the APL is between 90%-94%. J1 not only met, 

but exceeded its goal, by achieving a 98% Mandatory Training Execution Rate.

 Time to Fill: The monthly goal for Time to Fill is 70 days or less, while the APL is 

between 71 – 80 days. In FY14, J1 met the APL each month and exceeded the goal in 8 

of the 12 months. The average Time to Fill for the year was 68 days.

 Customer Satisfaction for HR Svcs-Columbus: The monthly goal for Customer 

Satisfaction is to receive an overall rating of 4.75 or above, while the APL is between 

4.50-4.74. In FY14, HR Svcs-Columbus met and exceeded the goal in each of the 12 

months. The average Customer Satisfaction score for the year was 4.96.

 Customer Satisfaction for HR Svcs-New Cumberland: The monthly goal for 

Customer Satisfaction is to receive an overall rating of 4.75 or above, while the APL is 

between 4.50-4.74. In FY14, HR Svcs-New Cumberland met and exceeded the goal in 

each of the 12 months. The average Customer Satisfaction score for the year was 4.89.

 Time to Discipline for One-Step Actions: One-Step disciplinary actions include 

Reprimands, Letters of Discipline, and Probationary Terminations. The monthly goal for 

Time to Discipline is 7 days or less, while the APL is 8 days. In FY14, J1 met the APL 

each month and exceeded the goal in 11 of the 12 months. The average Time to 

Discipline for the year was 5 days.

 Time to Discipline for Two-Step Actions: Two-Step disciplinary actions include 

Suspensions and Removals. The monthly goal for Time to Discipline is 70 days or less, 

while the APL is between 71 – 80 days. In FY14, J1 met and exceeded the goal in each 

of the 12 months. The average Time to Discipline for the year was 58 days.

 Pay Action Timeliness to Payroll: The monthly goal for Pay Action Timeliness to 

Payroll is 98% or above, while the APL is between 95%-97%. In FY14, J1 met the APL 

each month and exceeded the goal in 9 of the 12 months. The average Pay Action 

Timeliness to Payroll for the year was 99%.

 Benefits Action Processing Timeliness: The monthly goal for Benefits Action 

Processing Timeliness is 98% or above, while the APL is between 95%-97%. In FY14, 

J1 met the APL and goal in 10 of the 12 months. The average Benefits Action Processing 

Timeliness for the year was 97.3%.
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 Military Readiness: The quarterly goal for Military Readiness is 95% or above, while 

the APL is between 85%-94%. In FY14, J1 met the APL in each of the 4 quarters; 

however, J1 did not meet the goal in any quarter. The average Military Readiness for the 

year was 87%.

 ELDP Level 3 Completion Rate: The annual goal for the ELDP Level 3 Completion 

Rate is 95% or above, while the APL is between 85%-94%. In FY14, J1 met and 

exceeded the goal. The ELDP Level 3 Completion Rate for the year was 96%.

 MSF Improvement Rate: The annual goal for the MSF Improvement Rate is 6% or 

above, while the APL is 5%. In FY14, J1 met and exceeded the goal. The MSF 

Improvement Rate for the year was 9%.

 IDP Established Rate: The annual goal for the IDP Established Rate is 85% or above, 

while the APL is between 76%-84%. In FY14, J1 met and exceeded the goal. The IDP 

Established Rate for the year was 90%.

 Average Number of Training Hours Invested: The annual goal for the Average 

Number of Training Hours Invested per Employee is 36.75 hours or more, while the APL 

is between 33.08-36.74 hours. In FY14, J1 met and exceeded the goal. The Average 

Number of Training Hours Invested per Employee for the year was 54.20 hours. 

 DoD Customer Service Metrics: The annual goals and APLs for the DoD Customer 

Service metrics varies by HR function supported on behalf of the customer. However, J1 

met or exceeded all APLs and/or goals for the year.

Perform 2: Meet POWER (Protecting Our Workforce and Ensuring Reemployment) Goals

This initiative’s objective was to meet POWER goals and, specifically, to increase the timely 

filing of Worker’s Compensation claims and Wage Loss claims. This objective was met in that 

we saw improvement across the Agency in the percentage of Workers’ Compensation claims 

filed in a timely manner. Prior to implementing this initiative, on average, 80% of new injury 

claims were filed within the 14 day timeframe. In FY14, on average, 96% of new injury claims 

were filed timely, which exceeded/met both the Acceptable Performance Level and stretch Goals 

of 94% and 96% respectively. We also saw improvement across the Agency in the percentage of 

Wage Loss claims filed in a timely manner. Prior to implementing this initiative, on average, 

80% of wage loss claims were filed within the seven-day timeframe. In FY14, both the 

Acceptable Performance Level and stretch Goals were met and exceeded, with an average 

timeliness rate of 95%.

Perform 3: Deploy the Rapid Climate Assessment Team (RCAT)

The RCAT was designed to provide a leadership intervention process for complex, recurring 

issues that do not fall within an already established avenue of redress. The RCAT is a 
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management tool to assess and recommend solutions to these issues. Under this initiative, J1 

developed both a Concept of Operations and a process to follow when an issue is identified as 

proper for RCAT intervention. The RCAT has been successfully launched.

Integrate corporately and collaboratively

Integrate 1: Prepare Workforce for Enterprise Business Systems (EBS)/ Retail and 

Transformation Initiatives

J1 met the goal of ensuring all tools were in place to have successful workforce use of Enterprise 

Business Systems (EBS) / Retail Integration and other transformations. Specifically, J1 provided 

Organizational Alignment, Change Management, and training support to Inventory Management 

& Stock Positioning (IMSP) Release 2.2 (former Navy sites) / Retail Integration. In addition, J1 

provided deployment support as well as post-deployment support for Retail Integration efforts. 

Overall, J1 met the objective of enabling workforce acceptance of EBS and other Retail 

Integration transformation initiatives.

Integrate 2: Develop DLA Enterprise Newcomers Getting a Global Entrance (ENGAGE)

This initiative’s objective was to develop a consistent, comprehensive onboarding program 

focused on DLA mission, vision, and values, with the long-term goal of retaining highperforming employees, promoting faster time-to-productivity, and maintain high employee job 

satisfaction level. This initiative supported the DLA Director’s goal and focus areas to 

effectively prepare new employees for success in their duty positions in support of the warfighter 

by providing clear, consistent, and timely information on DLA’s mission, values, culture, and 

history.

J1 led a working group with representation from all DLA activities to develop a comprehensive 

onboarding program for all DLA newcomers, regardless of geographic location, organization, 

job series, or grade. This program is called ENGAGE. Key deliverables included an ENGAGE 

online curriculum, checklists for newcomers, supervisors, and sponsors, and a 90-day feedback 

instrument. The ENGAGE curriculum is offered online through the Learning Management 

System (LMS) and has four courses: DLA Enterprise Orientation (EO) I, EO II, DLA ENGAGE 

101, and DLA ENGAGE 105. EOI is a four minute video that opens with a welcome from the 

DLA Director. We now have an ENGAGE page on eWorkplace and an ENGAGE post on the 

DLA Facebook, and we send an ENGAGE memo to newcomers and selecting officials through 

OPM Onboarding Manager. In addition, welcome packets are sent to all new employees with a 

welcome letter from the DLA Director and other materials designed to facilitate a smooth 

transition to DLA.

ENGAGE was implemented in early June 2014. Initial feedback has been positive, with 100% 

of survey respondents feeling committed to the DLA mission, 94% expressing job satisfaction, 

and 89% planning to remain with DLA long-term. Use of the LMS and other online media assure 

ENGAGE is available to all new employees at all 300+ DLA locations.
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Integrate 3: Support Flexible Workplace Alternatives

This initiative’s objective was to support the DLA’s use of flexible workplace alternatives 

(FWA) such as telework, virtual teams, remote siting, and hoteling. Accomplishments included:

 Serving as an executive sponsor for the Smart Workplace initiative and working group, a 

collaboration effort with DLA and the General Services Administration (GSA) to 

understand workplace culture, determine its underlying potential, and create a strategy to 

modernize and right-size our real estate footprint. The working group is also engaged in 

consolidating our National Capitol Region workforce into a single location at the 

McNamara Center. 

 Supporting continuity of operations during closure or dismissal events.

 Surveying the DLA workforce regarding telework in the 2014 DLA Culture Survey. 

Eighty-three percent of respondents rated themselves “prepared to effectively use 

telework to maintain productivity in the event of an emergency,” a 22 percent increase 

from 2012. 

 Exceeding telework eligibility and approval targets for FY14.

 Collaborating with J6 and J8 to merge Employee Activity Guide for Labor Entry 

(EAGLE)/ Defense Civilian Personnel Data System (DCPDS) data for generating reports. 

J6 and J8 have agreed to enhance EAGLE by adding routing of telework approvals and 

storage of agreements.

Integrate 4: Support DLA Fitness and Wellness

This initiative’s objective was to increase DLA employees’ knowledge and use of the Agency 

health awareness and health intervention programs, with the longer term goal of encouraging and 

motivating employees to develop health and lifestyle choices resulting in an enhanced quality of 

work life. Accomplishments included:

 Publishing the DLA Instruction in May 2014. 

 Providing regular data reporting and analysis including participation rates, worker’s 

compensation cost, and employee grievances for the Agency, as well as by PLFA and 

J/D codes. 

 Conducting a baseline evaluation of the program’s impact on the workforce and 

agency. Overall, the program participation rate has averaged over 40 percent since 

program inception. 
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 Assessing employee and supervisory perceptions in 2014 DLA Climate Survey. 

Overall results for employee respondents were overwhelming positive. Specifically, 

employees noted a positive impact on their attitude, energy level, morale, and 

productivity, as well as less sick leave usage. Supervisory perception was split. J1 

will continue to monitor both employee and supervisory perspectives.

Integrate 5: Improve Employee Engagement through Awards and Recognition

During FY14, J1 benchmarked and compiled awards best practices via open source research. A 

working group reviewed existing awards policies and procedures and discussed the difficulties 

experienced by supervisors in using the awards program. Supervisory concerns included: nonfamiliarity with the awards process, not knowing whom to contact with questions, being unable 

to locate correct forms, and a lack of time to devote to award preparation.

To ease some of the identified concerns, J1 posted procedures for all honorary awards, with 

sanitized examples of each type, to the awards website. This will help DLA leaders understand 

the items that constitute a complete package for each honorary award, the formats for written 

narratives, and the timelines associated with awards. Additionally, J1 and J5 representatives met 

to develop appropriate form templates so that awards procedures are repeatable and properly 

delineated. Finally, organizational award administrators were identified, and roles and 

responsibilities for awards administrators were documented and posted to the awards website.

Evaluate Regularly

Evaluate 1: Lead Hire-to-Retire (H2R) Business Cycle

This initiative’s objective was to sustain the H2R Civilian Pay assertion in preparation for the 

FY14 independent audit examination, and this objective was met. The larger goal was to obtain 

an unqualified or qualified opinion on the H2R Civilian Pay examination, and this goal also was 

met as Hire to Retire received a clean audit. No major H2R deficiencies were identified that 

would lead to a disclaimer.

In support of the Director’s Strategic Objectives, J1executed the FY 2014 Internal Controls over 

Financial Reporting (ICOFR) deliverables. They consisted of Process Cycle Memoranda, Risk 

Analysis, Test Plans, and Controls Assessment, and they were delivered in accordance with DLA 

Finance (J8) Program Management Guidance. J1 also completed the DLA HR Services Service 

Provider assertion requirements for customer’s FY14 SBR assertions.
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Evaluate 2: Reassess the DLA Enterprise Culture

The objectives for this initiative were to (1) reassess DLA’s culture and (2) revise action plans to 

improve Culture Survey results and overall DLA culture. J1 accomplished the first objective in 

that the DLA Culture Survey was administered to the DLA workforce from April 28 – May 30, 

2014, with a robust 61% response rate. Major steps within this overall accomplishment 

included: (a) coordinating extensively with Denison and the DLA Culture Champions before, 

during, and after the survey; (b) tailoring the climate portion of the survey to DLA’s strategic 

interests; (c) ensuring the survey was administered to the entire DLA workforce, both civilian 

and military, in the United States and overseas; (d) arranging both paper survey distribution and 

survey translations as needed; (e) marketing the survey to the DLA workforce via a variety of 

media (DLA Today, Director’s Blog, Director’s video, HR website, posters, screensavers, etc.); 

(f) briefing DLA senior leadership and our union partners; (g) providing guidance and 

workshops to DLA’s Culture Champions; and (h) distributing the survey results.

The second objective (“revise action plans to improve Culture Survey results and overall DLA 

culture”) was accomplished as well. Specifically, DLA activities analyzed their 2014 DLA 

Culture results and developed their culture action plans to address deficiencies. In August 2014, 

J1 held an action planning workshop for DLA’s Culture Champions as they play a key role in 

facilitating the action planning process within their organizations. In addition, J1 coordinated the 

process by which activities could acquire Denison support for their results analysis and action 

planning. Finally, J1 provided the Culture Champions reference material on the action planning 

process, as well as a standard template for documenting their activity’s overall action plan.

8. Conclusion

In FY14, J1 pursued the above-described initiatives to sustain and improve its service to 

customers. In focusing on providing HR services that efficiently and effectively enhanced 

DLA’s preparedness for mission, J1 also supported the DLA Director’s strategic objectives, i.e., 

“Big Ideas” and “13 in 6,” as well as the long-term workforce development goals and strategies 

documented in DLA’s Strategic Plan 2010-2017. 
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Defense Logistics Agency

DLA Logistics Operations (J3) 

Fiscal Year 2014 Annual Historical Report

Introduction

Fiscal Year 2014 was a milestone year for DLA, including the J3 organization. Our numerous 

accomplishments are documented in this Historical Report, including our support to warfighters 

around the globe, particularly in the U.S. Central Command Area of Responsibility. 

Notable accomplishments include:

• Afghanistan Sustainment and Drawdown

• Support against Islamic State of Iraq and Levant (ISIL)

• Material Availability increase

• Forward Stocking (PACOM/CENTCOM AORs)

• Inventory and Infrastructure Reduction

• Audit Readiness

• Operational Contract Support (OCS)/Local Procurement

• Federal Agency Support

• Healthy Base Initiative

• Humanitarian Assistance/Disaster Relief (Operation United Assistance)

Looking ahead, J3 will remain focused on the agency’s strategic priorities. Nobody does 

logistics as well as DLA does – we’ve proven it again and again. Our opportunities to provide 

unprecedented levels of support to our customers have never been greater.

 Signed/Jan 20, 2015

 Vince Griffith

 Rear Admiral, SC, USN

 Director, J-3 DLA Logistics Operations
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Contents

DLA Logistics Operations (J3) ................................................................................................ 121

Organization Overview .................................................................................................... 123

Goal: Afghanistan: Win the current fight and pivot to transition ............................... 126

Goal: Contingencies and Humanitarian Assistance and Disaster Relief Support...... 128

Goal: Industrial and Platform Support.......................................................................... 131

Goal: Decrease Direct Materiel Costs............................................................................. 137

Goal: Decrease Operating Costs...................................................................................... 141

Goal: Reduce Inventory ................................................................................................... 152

Goal: Improve Customer Service .................................................................................... 163

Goal: Achieve Audit Readiness........................................................................................ 182

Goal: Additional Key J3 Initiatives................................................................................. 184
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Organization Overview

Defense Logistics Agency (DLA) Logistics Operations (J3) Leadership

Rear Adm. Vincent Griffith Director DLA Logistics Operations (J3) Mr. Michael Scott Deputy Director DLA Logistics Operations (J3)

Rear Adm. Ron J. MacLaren Executive Director Joint Contingency Acquisition Support Office (JCASO) (J32) Mr. Guy Beougher Executive Director Operations (J31) Mr. Jeffrey Curtis Executive Director Support (J34)

 J3 welcomed new leadership in May 2014 as Mr. Michael Scott, former Deputy 

Commander of DLA Energy, became Deputy Director and acting Director J3. Mr. Scott 

assumed these positions following the March 2014 retirement of Major General Kenneth 

Dowd, Director J3, and the April 2014 retirement of Mr. Redding Hobby, Deputy 

Director J3. In June 2014, Rear Admiral Vincent Griffith became the new Director J3.

 Mr. Guy Beougher served as Executive Director Support (J34) from July 2013 to May 

2014. During his leadership the Material Policy, Process & Assessment (J33) and 

Strategic Integration (J35) Directorates merged forming the Executive Directorate 

Support (J34). Mr. Beougher now serves as Executive Director Operations (J31). 

 In June 2014, Mr. Jeffrey Curtis entered the Senior Executive Service as Executive 

Director Support (J34).

 Rear Adm. Ron MacLaren serves DLA in two roles: Director, DLA Joint Reserve Force 

and Director, Joint Contingency Acquisition Support Office, J32 (JCASO). JCASO was 

officially reorganized under J3 leadership in FY 2013. Mr Patrick J. Dulin, Deputy 

Executive Director deployed in August 2014 to Afghanistan for 12 months as the 

Executive Director for Sustainment (EF 5) under the Deputy Chief of Staff, Support, 

International Security Assistance Force (ISAF) Headquarters. Mr David Koch was 

detailed, from J34, into Mr Dulin’s position as the acting Deputy Executive Director J32.

DLA Logistics Operations (J3) Mission:

 DLA Logistics Operations (J3) is responsible for the end-to-end supply chain 

management of the DLA’s nine supply chains, providing logistics and materiel process 

management policy, guidance, and oversight while conducting continuous assessments of 

supply chain performance.
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 J3 integrates strategic, operational, and tactical perspectives, and Command and Control 

(C2) functions for contingency operations and adaptive planning in order to influence the 

end-to-end logistics supply chain. DLA J3 is the principal strategic, operational, and 

tactical planner for DLA business operations, championing best business practices, 

Enterprise Business System (EBS), and value-added logistics solutions for the warfighter.

 J3 oversees Operational Contract Support (OCS), the daily operations of all DLA 

logistics activities, and engages DLA HQ Directorates and Primary Level Field Activities 

(PLFA) to gather and interpret customer requirements for the Agency.

 In support of customers around the world, J3 serves to maximize readiness and logistics 

combat power by leveraging enterprise solutions. To fulfill this mission, organizational 

elements aligned under J3 include Executive Directorate Operations (J31), Joint 

Contingency Acquisition Support Office (J32 JCASO) Executive Directorate (J32), and 

the Executive Directorate Support (J34). 

Operations Executive Directorate (J31) 

 J31 supports the warfighter, engaging with the Military Service HQs and Major 

Commands, Combatant Commands (COCOM), and Military Service components around 

the world linking their mission needs with DLA’s capabilities.

 J31 is comprised of the DLA Joint Logistics Operations Center (JLOC) Division; 

Military Services Support (MSS) Division; DLA-United States (U.S.) Transportation 

Command (TRANSCOM) Support (DLA-T) Division; Mission Assurance Support 

Team, and the Portfolio Programs Support Team.

 J31 also oversees the activities of three Regional Commands who are embedded with 

COCOMs around the world -- DLA-Central embedded with U.S. Central Command 

(CENTCOM) in Tampa and DLA Support Teams in Afghanistan and Kuwait; DLAEurope/Africa supporting U. S. European Command (EUCOM) and U.S. Africa 

Command (AFRICOM), and DLA-Pacific aligned with U.S. Pacific Command 

(PACOM).

Joint Contingency Acquisition Support Office (JCASO) Executive Directorate (J32)

 J32 JCASO provides Operational Contract Support (OCS) capability across the 

Department of Defense (DOD) and the whole-of-government (WoG) during

peacetime and contingency operations.

 J32 JCASO assists the Combatant Commander (CCDR) with OCS planning and

Program Management (PgM), and assists DOD and the WoG with institutionalizing

and maturing OCS. JCASO provides the requested OCS capacity by deploying a 

Mission Support Team (MST) to support combat operations and contingency and postconflict operations involving multiple components, coalition forces, and government

agencies. J32 JCASO assists with coordinating and integrating OCS lessons learned

and best practices and facilitates interagency OCS coordination and communication 

within DoD and the WoG.
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 J32 JCASO is responsible for maintaining a deployable capability to enable OCS

planning and PgM, and functioning as an active voting member of the OCS 

Functional Capabilities Integration Board for program governance.

Support Executive Directorate (J34)

 J34 is responsible for developing and disseminating enterprise-wide policy of business 

and supply chain management for order fulfillment, planning, stock positioning, retail 

sustainment, asset management, transportation, distribution network, disposition, 

technical/quality functions, and business cycle processes.

 J34 engages with Office of the Secretary of Defense (OSD), Joint Staff, and Military 

Service leadership in partnership efforts directly related to logistics strategic programs 

and initiatives.

 J34 conducts research and analysis, and provides DLA leadership with insights to shape 

policy development and support decisions.

 J34 manages enterprise-wide logistics research and development and leads projects 

related to DLA’s Audit Readiness efforts.

FY14 Funding and Personnel Goals and Actuals

POC: J3 Business Management Office

FY14 Goals FY14 Actuals

Civilians (FTEs) 513 488

Active Duty Military Authorized 110 110

Reserve Military Authorized 70 70

(In Millions) (In Millions)

Labor (Direct only) $69.0 $73.1

Contracts $17.8 $21.8

Travel $1.6 $2.8

Training $.5 $.5

Other $1.3 $.7

Total $90.2 $99.0
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Goal: Afghanistan: Win the current fight and pivot to transition

Initiative: Afghanistan Transition 

Background: In FY2014, over the course of more than 10 months, roughly half of all the U.S. 

equipment in Afghanistan, which includes over 13 years of vehicles, generators, spare parts and 

office equipment, was drawn down in one of the biggest retrograde efforts in military history.

Description: DLA successfully supported the drawdown in Afghanistan over the course of 

FY2014. DLA Central and DLA Support Team Afghanistan coordinated support from DLA 

Distribution, DLA Disposition, DLA Troop Support, DLA Land and Maritime, DLA Energy and 

other organizations from across the enterprise. 

DLA Disposition continued to meet and exceed customer requirements during the draw 

down. They operated four main disposal sites and eight Hub-Based Disposal Operation (HBDO) 

locations. Using the “overwhelming overmatch” concept, Disposition removed over 375 million 

pounds of scrap, over 3,400 pieces of rolling stock, and implemented a Usable Goods sales 

program which returned over $1.9 million in proceeds. Disposition supported and continues to 

support the warfighter through Coalition Support, Hazardous Waste removal, and general 

support of base closure efforts. 

During the draw down efforts, DLA Troop Support served over 42 million meals in 

Afghanistan, introduced local fresh fruit and vegetables, purchased fresh eggs from Latvia, and 

perfected multi-modal shipments which cut the Order Ship Time from 120 to 75 days. In 

addition, they supplied over $1.2 million in uniform sales. They also supplied over 91,000 sales 

order lines of construction materials and equipment valued at over $46 million.

DLA Land and Maritime provided outstanding support to the customer during draw down 

operations, providing non-mission capable supply materiel to the warfighter to reduce Army and 

Marine Corps fleet density from 5,588 to 1,907 in the Army, and from 4,224 to 539 in the 

Marine Corps. Land and Maritime also maintained support for the Army’s Patriot missile 

system in the CENTCOM area of operations, supporting an average 90% in commission rate. 

DLA Energy continued to provide outstanding support, providing over $2 billion worth 

of fuel, including over 830,000 gals of aviation gasoline, 21,229,000 of diesel, 288,356,000 gals 

of jet fuel, and over 1,322,000 of gasoline. DLA Energy continues to provide support for base 

closures while managing the strategic drawdown of all types of fuel.

Outcome(s): Overall, DLA support played a major role in allowing CENTCOM and US ForcesAfghanistan (USFOR-A) to meet 100% of their draw down goals for FY2014.

Key participating organizations:

 Internal to DLA:

o J3

o J1

o J6

o DLA Central

o DLA Distribution

o DLA Disposition
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o DLA Aviation

o DLA Land and Maritime

o DLA Energy

o DLA Troop Support

 External to DLA:

o U.S. CENTCOM

o U.S. TRANSCOM

POC: J31
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Goal: Contingencies and Humanitarian Assistance and Disaster Relief Support

Initiative: Rapidly Respond to Crisis 

Background: As part of DLA’s “Focus on the Warfighter”, the J3 maintains a Joint Logistics 

Operations Center (JLOC), which integrates DLA’s adaptive planning processes, executes 

support of Department of Defense operations worldwide, and performs command and control 

functions during contingencies external to DLA Regional Command Structures. It provides 

continuous, integrated situational awareness throughout the DLA Enterprise to support decisionmaking, influences the logistics supply chain, develops policies and procedures to ensure 

responsive support to the Military Services, Unified Combatant Commands, designated Federal 

and State Agencies.

Description: FY2014 saw DLA respond to multiple crises and strengthen relationships with 

Combatant Commands and other Federal Agencies conducting emergency response. These 

include support to multiple operations in Europe, Africa, and the Middle East, in addition to 

supporting crisis relief in the US. 

FY2014 brought improved strategic partnership between DLA and Federal Emergency 

Management Agency. In January 2014, DLA secured a seat/position at the National Response 

Coordination Center (NRCC). DLA now sits amongst all Emergency Support Functions (ESF) 

within the National Response Framework (NRF) and is able to synchronize with FEMA during 

NRCC activations for contingency operations. DLA is invited to all FEMA Senior Leader 

Updates and injects its capabilities to support the survivors of a catastrophic event. DLA has 

become an integral part of the “Whole of Community/Government” approach to support 

survivors during an incident.

DLA participated in several exercises with FEMA in FY14. In February, DLA supported 

the National Level Exercise (NLE) Capstone focused on a 9.2M earthquake scenario in 

Anchorage, Alaska. DLA provided approximately $300M in fuel and commodity support in the 

exercise and assisted with finding alternative transportation solutions to provide support 

in/during the exercise. In July, DLA was activated to the NRCC during the 4th of July weekend 

for possible support to Hurricane Arthur. DLA J3 deployed the DLA Support Team (Mobile 

Command Unit) to Fort Bragg, NC to provide FEMA “boots on the ground” support until their 

Incident Support Base (ISB) was functional. In August 2014, DLA conducted a multiple 

catastrophic exercise (hurricane and wild fires) that incorporated multiple federal agencies 

including US Army Corps of Engineers, FEMA, and US Forest Service.

DLA developed and submitted twelve commodities support Pre-Scripted Mission 

Assignments (PSMA), one DLA Distribution Expeditionary (DDE) Incident Support 

Base/Federal Staging Area (ISB/FSA) Augmentation Support PSMA, and two fuel support 

PSMAs to FEMA (closely coordinated with Office of Secretary of Defense HDI & ATL). The 

Inter-Agency Agreement (IAA) was reviewed and approved by HQ DLA for another year as 

well.
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DLA also rapidly responded to two crises in the US Africa Command (AFRICOM) and 

US European Command (EUCOM) areas of responsibility. Operation UNITED ASSISTANCE 

was an AFRICOM effort to support US Agency for International Development (USAID) efforts 

to combat the Ebola virus outbreak in the West African nation of Liberia. Operation UNITED 

ASSISTANCE demonstrated DLA’s ability to quickly “flex,” across the Enterprise BY 

integrating the Supply Chains. Through December 2014, DLA expended about $95 million in 

support of the operation. DLA’s responsible Regional Command, DLA Europe and Africa, 

deployed personnel with the first U.S. military forces to arrive in country, and quickly 

established a DLA Support Team (DST) that at its peak totaled 41 DLA personnel from across 

the enterprise. The DST responsively set the strategic environment for new business 

opportunities supporting logistics operations for DOD, State Department, and USAID. DLA 

products and services provided across all supply chains include: 

o CL I OPRATS (MRE/UGR-H&S/UGR-A/BW/HCP and supplements) BW 66k+ cases, 

HCP 1,500+ bx, MRE 31,500+ bx (cs), Ice 9500+ cases, and Thanksgiving and Christmas 

holiday meals

o CL II 4k+ cots/ 12 TEUs pillows & blankets (MV VEGA)

o CL III (B) (Liberia & Senegal) JA1: 2.7mil gls/DF2 199k gls//Mogas 4.5k gls

o CL IV 262 TEUs of plywood, lumber, hardwood, fences post (MV VEGA) + MRO-PV 

procured building materials

o Cl VII, 34 light sets (VEGA & CAPE WRATH), 5 RTCHs, forklifts (RT and 

Warehouse), 10 waste management trucks

o CL VIII, @1.4mil personal protective suits, NMS for 10 ETUS

o CL IX, ASL for 14 helicopters – 4 x CH47, 6 x UH 60, 4 x HH-60

o Provided Contingency Contracting Support to the entire JFC until contracting capability 

& money could deploy

DLA Europe and Africa also supported EUCOM’s Operation ATLANTIC RESOLVE, 

which began in response to Russian aggression in Ukraine. In support of the North Atlantic 

Treaty Organization (NATO), EUCOM positioned forces in Poland, Lithuania, Latvia, and 

Estonia. US Forces are conducting unilateral training with NATO allies to build proficiency and 

cooperation. While the bulk of support is being provided by the Host Nations, DLA provided the 

following support: 

o Class I Operational Rations (MREs/BW, HCP) & Holiday meals totaled $824k, 

o Class III (B), JP-8 = 23, 300 gls * expected increase as mechanized forces are introduced

o Cl IV: $62k, lumber, concertina, sandbags & HESCO

o DDE is the main hub for all supplies using their weekly ground route.

DLA Europe and Africa has also been heavily involved in African with the Local 

Procurement Initiative (LPI). In partnership with AFRICOM and DLA JACSO, DLA Europe 

and Africa developed a pilot program to provide responsive logistic support in Western Africa 

grounded in locally procuring support on short notice and for small and irregular demands. 

Initially focused on Class I with mid- and long-term requirements for Class III and IV, the LPI 

pilot program looked to develop local sources in and near Niamey, Niger. The DLA EA-led 

team established venues to work with local vendors and leverage Partner Nation capacity to build 

a whole of government approach to short-term, small, but flexible support agreements. DLA 

Europe and African and AFRICOM continue to explore options to follow up on gains made by 
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the team in Niamey. The ground work done in Niger of developing a template on 

implementation of a local procurement as well as registering local business served as a model 

for support operations in Liberia as part of Operation United Assistance. The team will continue 

building on this success with further engagement with AFRICOM and with Special Operations 

Command - Africa in CY 2015. 

In early August 2014, in the US Central Command (CENTCOM) area of operations, US 

forces began to provide humanitarian aid to thousands of civilians fleeing from the Islamic State 

in Iraq and the Levant (ISIL) and stranded on Mt. Sinja in Iraq. DLA Central and DLA Support 

Team Kuwait led the planning and execution efforts to supply over 25,000 cases of special meals 

and bottled water. With DLA support, airlift operations performed by CENTCOM were 

successful in providing life-saving relief to the stranded refugees until they the ISIL forces 

surrounding them were mitigated.

Outcome(s): 

Key participating organizations:

 Internal to DLA:

o J3

o J7

o J8

o DLA Central

o DLA Europe and Africa

o DLA Troop Support

o DLA Distribution

o DLA Disposition

o DLA Energy

 External to DLA:

o USAID

o AFRICOM

o CENTCOM

o TRANSCOM

POC: J31
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Goal: Industrial and Platform Support

Initiative: Inventory Management and Stock Positioning (IMSP) at Fleet Readiness Centers 

Background: IMSP is the Defense Logistics Agency’s (DLA) initiative to extend consumable 

item supply chain responsibility from the wholesale level to the point of consumption. IMSP is 

an output from the Base Realignment and Closure (BRAC) 2005. It includes the transfer of 

material support operations from the Military Service Industrial Activities to DLA. Through 

IMSP, DLA is transforming itself from a manager of supplies to a manager of complete supply 

chains. The goal of IMSP is to extend the DLA enterprise closer to the Warfighter by merging 

wholesale and retail inventories into a national inventory managed in a more integrated manner. 

IMSP involves the implementation of DLA supply systems and distribution process capabilities. 

IMSP provides greater control and visibility of the entire supply chain which helps improve asset 

visibility and forecasting; reduces backorders and customer wait times; and enhances investment 

decisions. Delivering an optimized network strategy, IMSP positions material to provide optimal 

weapon system support and lower overall Department of Defense (DOD) inventory costs by 

reducing redundant inventory and covered storage requirements. IMSP enhances collaboration 

with customers and suppliers and allows better leveraging of commercial services where they 

provide best value.

Description:

 DLA worked with each Military Service to develop the best solution for their 

requirements. Since each of the Military Services came to the table with different 

expectations and requirements, the IMSP solution was tailored to fit accordingly.

 The Air Force’s Air Logistics Complexes (ALC) wanted to maintain their inventory 

management system (D035K) for non-DLA managed items. Therefore, DLA 

implemented IMSP for DLA managed material while DLA personnel continue to use the 

Air Force’s system for non-DLA managed material. DLA Aviation personnel are 

responsible for the DLA Supply Operations, as well as Storage and Distribution at the 

Industrial Activity.

 The Marines Corps did not implement full IMSP capabilities but chose to transfer their 

Storage and Distribution functions to the DLA at Marine Corps Depot Maintenance 

Command Production Plant Albany, Georgia and Production Plant Barstow, California. 

DLA Land and Maritime (L&M) was the initial activity in charge of the DLA operations 

at the Industrial Activity but the DLA Storage and Distribution Operations were 

transferred to DLA Distribution with DLA L&M maintaining Supply positions.

 The Navy Shipyards proved to be a challenge. IMSP was initially deployed at Norfolk 

Naval Shipyard (NNSY) in Jan 2012 but the DLA Information Technology systems were 

removed and the NNSY systems reinstated in Oct 2012 at the request of the Navy. There 

were two major lessons learned from the implementation. First, inventory should be 

capitalized rather than attriting in place. Leaving in place introduced end of day 

complications with Navy systems processing end of day transactions. Second, data must 
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be completely clean prior to transition between systems to avoid ordering and receiving 

transaction errors. Going forward, DLA and Navy must conduct end-to-end testing 

between all systems before future implementations at the shipyards to reflect business 

rule changes.

 The Navy’s Fleet Readiness Centers (FRC) wanted DLA to manage all sources of supply 

so the IMSP solution was slightly different than the ALCs. Additionally, the Navy 

wanted to requisition by “Unit of Use” vice a standard Unit of Issue. Many hours were 

dedicated to software development and integration from DLA HQ, DLA Aviation, DLA 

Distribution and Navy personnel. The excellent collaboration from all parties involved 

resulted in each implementation more successful than the previous one.

 Figure 1 is the completion timeline for the BRAC 2005 IMSP implementation efforts.

Figure 1

Military Service Industrial Activity Go-Live Date

Air Force

Warner Robins August 2009

Oklahoma City November 2009

Ogden January 2010

Marine Corps Albany June 2011

Barstow July 2011

Navy Fleet Readiness Centers

North Island (FRC-SW) June 2013

Jacksonville (FRC-SE) October 2013

Cherry Point (FRC-E) March 2014

Outcome(s): IMSP was successfully implemented at the Air Force’s Air Logistics Complexes 

and the Navy’s Fleet Readiness Centers. The two major retail supply metrics at the ALCs are 

Order Response Times and Material Availability (MA) which have continued to meet or exceed 

the 90% goal during FY2014. MA has been consistently above 90% since July 2013. At the 

FRCs, the two major indicators of success are the Local Fill Rate and MA. The Local Fill Rate 

at North Island consistently exceeds the baseline while the other two FRCs are below baseline 

but trending in the right direction. FRC-SE’s Local Fill Rate for September 2014 was down due 

to a large volume of end of year unplanned orders. The FRCs continue an upward trend toward 

meeting the performance target of 90% MA - currently 87% across the three FRCs. DLA 

Distribution is responsible for the Storage and Distribution at the FRCs and monitors internal 

retail metrics – Receipt Performance, Issue Performance, Denial Rate and Inventory Accuracy. 

All three FRCs have met or exceeded these internal metrics since April 2014 which coincides 

with the final Distribution Standard System implementation at FRC-E.

Key participating organizations:

 Internal to DLA:

o DLA Aviation

o DLA Land & Maritime

o DLA Distribution

o DLA Troop Support

o DLA Human Resources (J1)
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o DLA Logistics Operations (J3)

o DLA Information Operations (J6)

o DLA Acquisitions (J7)

o DLA Finance (J8)

 External to DLA:

o Assistant Secretary of Defense for Logistics and Materiel Readiness (ASD(L&MR))

o Military Services (Air Force, Marine Corps, Navy)

o Defense Logistics Management Standards Office

POC: J34
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Goal: Industrial and Platform Support

Initiative: F-35 Joint Strike Fighter (JSF) Cataloging and Support Efforts

Background: Supply Chain Management for the F-35 aircraft and F135 engine will be provided 

by Lockheed Martin (LM) and Pratt & Whitney (P&W). To control their supply chain 

operations LM developed a JSF-unique data system known as the Autonomic Logistics 

Information System (ALIS) that operates independently of Defense Department systems. ALIS 

will have minimal interface to existing DOD systems and uses commercial part numbers instead 

of National Stock Numbers (NSNs) to manage spare parts support. However, if the contractors 

desire to leverage existing Department of Defense (DOD) systems, infrastructure, services and/or 

support, the NSN will be the key enabler. Thus, Defense Logistics Agency Logistics 

Information Services (DLIS) has worked with the JSF Program Office, the contractors, and 

DLA Headquarters to develop a methodology to catalog and maintain the JSF NSNs in DLA’s 

Enterprise Business System (EBS).

Description:

 Generally, every weapon system is assigned a lead Military Service, even those that 

are planned to have contractor logistics support. The lead Military Service is 

responsible for initiation of provisioning and cataloging activities. Cataloging 

requests sent from the Military Services are transmitted systemically to DLA and the 

resultant National Stock Number (NSN) and other logistics data is automatically 

returned to the users using existing DOD infrastructure. For the JSF, there is no lead 

Military Service and no interface between ALIS and DOD systems for data sharing. 

 To accommodate LM as the management lead, an alternative means was employed 

for sharing data and assigning NSNs. This alternative method uses standard 

cataloging procedures to stage the NSNs in EBS. These unique JSF NSNs are 

segregated within EBS to prevent the system from trying to perform the usual supply 

chain management functions. However, DLA is able to maintain the data associated 

with each NSN. When or if it is determined that DOD can provide “best value” 

support to the JSF, the NSNs can easily transition to organic support at that time. 

 Neither the Program Office nor the manufacturers signed the Memorandum of 

Agreement (MOA) defining cataloging and management requirements. The lack of a 

signed MOA initially delayed delivery of the tech data and the start of cataloging. 

However, LM and P&W began to provide the data as needed to enable DLIS to start 

the cataloging process. 

 DLIS has a goal of cataloging 500 items a month. Since the F-35 is managed by the 

contractor using part numbers in their own system, the priority for JSF material is 

lower than all other active weapon system NSN requests. 

 Cataloging is dependent on the contractor’s cooperation to identify logistics 

management data, to provide access to technical data, and to render expert advice and 

collaboration to ensure proper coding and description of each item. Although there is 
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no system interface to transmit the requisite logistics management data, the 

contractors are providing standard spreadsheets with the data. Technical data is being 

provided by LM and P&W has agreed to make their technical data available. 

Discussions are in process with the lift fan manufacturer, Rolls Royce, in regards to 

access to their technical data. The lack of Rolls Royce data has not delayed cataloging 

for the rest of the aircraft. Two separate Weapons System Designator Codes (WSDC) 

were assigned by DLA, SFJ for the aircraft and JFE for the engine. These WSDCs 

were assigned for visibility only, and were not meant to be used in the “normal” sense 

to prioritize inventory/purchase decisions.

Outcome(s): At the end of FY14 there were 4,291 parts associated with the JSF that had NSNs 

assigned. Of these, 2,680 parts were cataloged and assigned a new NSN using standard military 

and industry specifications and technical data provided by the contractors. Another 1,611 JSF 

parts were matched to existing NSNs. According to estimates from the contractors there are 

about 15,724 parts remaining to be cataloged. Based on the goal of 500 a month, DLIS 

anticipates that cataloging actions will be completed by 3rd Quarter FY17.

Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations (J3)

o DLA Aviation

o DLA Information Operations (J63)

 External to DLA:

o Joint Strike Fighter Program Office

o Lockheed Martin

o Pratt & Whitney

o Rolls Royce

POC: J34
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Goal: Industrial and Platform Support

Initiative: Littoral Combat Ship Support 

Background: In April, 2014, a Memorandum of Agreement (MOA) was signed for Inventory 

Ownership Transfer, Warehousing and Replenishment of Littoral Combat Ship Spares between 

DLA J3, Naval Supply Systems Command and the Littoral Combat Ship Program Executive 

Office. 

Description: This initiative supports both the Littoral Combat Ship 1 Variant and Littoral 

Combat Ship 2 Variant. In the agreement, DLA agrees to hold stock for 7 years with no disposal 

requests. There are no transfers of funds between the parties under this agreement, and the 

agreement remains in effect until March 2021. The support can be modified at any time as 

mutually agreed to by the parties. This program supports over 38,000 National Item 

Identification Numbers, of which 43% are common with other platforms. Of the 57% items 

unique to the Littoral Combat Ship, 30% are common to both variants, 16% are unique to 

Littoral Combat Ship 1 Variant and 11% are unique to Littoral Combat Ship 2 Variant.

Outcome(s): - The Littoral Combat Ship 1 Variant and Littoral Combat Ship 2 Variant material 

transfers are complete, and procurement actions have been initiated to support Littoral Combat 

Ship 3 Variant and Mission Modules.

DLA was recognized by the Littoral Combat Ship Program Executive Office as Customer of the 

Year for their collaboration.

Key participating organizations:

 Internal to DLA:

o J31

o J34

 External to DLA:

o Naval Supply Systems Command 

o The Littoral Combat Ship Program Executive Office

POC: J31
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Goal: Decrease Direct Materiel Costs 

Initiative: Reduce Materiel/Operational Cost through Application of Value Management (VM)

Background: Office of Federal Procurement Policy (OFPP) Act 41 USC 1711 requires every 

Federal Agency maintain a Value Engineering (VE) Program. The Office of Management and 

Budget (OMB) Circular A-131 provides guidance to support the sustained use of VE to reduce 

program and acquisition costs. The Under Secretary of Defense for Acquisition, Technology and 

Logistics is increasing usage of VE to ensure the Department more efficiently spends limited 

resources.

Description:

 VE is an organized effort directed at analyzing the functions of systems, subsystems, 

equipment, services and supplies for the purpose of achieving the essential functions at 

the lowest life-cycle cost consistent with required performance, reliability, quality, and 

safety. These organized efforts can be performed by both agency and contractor 

personnel. Terms such as value analysis, value control, value improvement, and value 

management are synonymous.

 The Defense Logistics Agency VM Program is the overarching term for VE, Spare Parts 

Breakout, Should Cost, Reverse Engineering, and the Price Challenge Program. Most 

VM activity in DLA is performed in-house and is directed at reducing materiel-related 

costs of DLA-managed items. Other benefits include improved reliability and 

maintainability, reduced production lead times, and improved supply availability. VM 

not only applies to materiel cost reduction associated with the DLA Supply Chains, but 

also life-cycle savings across the Department of Defense.

 VM is a major contributor to the Director’s Big Ideas (Improve Customer Services, 

Decrease Direct Materiel Costs, Decrease Operational Costs, Reduce Inventory, 

Achieve Audit Readiness) and has identified the following actions in relation to these 

focus areas:

Focus Action

We must save money Focus on finding sources/obtaining technical data and 

improve processes that will enable the Agency to expand 

competition

We must know where we stand Timely status tracking/reporting quarterly to DLA 

Headquarters and Office of the Secretary of Defense (OSD)

We must get better at what we do Improve processes for identifying opportunities for savings 

and tracking savings

We must support the Supply 

Chains

Identify opportunities by reviewing top 200 backorder 

reports and aging Purchase Request (PR) reports.
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Outcomes: During FY 2014, DLA achieved savings in excess of $313M: DLA Aviation 

accounted for $152.7M; DLA Land & Maritime $80.9M; and, DLA Troop Support $80.2M. The 

Agency exceeded the DOD imposed goal of 1.5 percent of total obligation authority. DLA’s top 

three VM projects are:

 F-15 Wiring Harness: Savings of $24.8M in FY 2014 were due to an effort to expand 

competition beyond a sole-source Boeing contract where DLA Aviation Engineering 

offered direct support. A Should Cost Analysis provided estimates and VM provided 

technical support in contract negotiations and assistance with making this item 

competitive. Total savings to date on this effort exceed $73M.

 A-10 Ballistic Foam: Expanded competition brought an overall 70% price reduction and 

production lead time reduction from 6 to 12 months down to the current 21 to 90 days. 

Current manufacturing sources were unable to meet mission milestones due to the 

dramatic increase in forecasted requirements and excessive costs. Should Cost engineers 

determined the National Item Identification Numbers (NIIN) were overpriced and VM 

found additional sources of supply. The efforts resulted in tangible savings of $11.5M 

against the 800+ NSNs in FY 2014 with expectations of additional savings in cost and 

manufacturing lead times in the future. Total savings to date on this effort exceed 

$12.6M.

 Gunner Restraint: This item was procured sole source at an excessive price. DLA Land 

and Maritime contacted AmSafe Defense to discuss requirements to submit a Source 

Approval Request. After modifications and testing, Army approved AmSafe as a source 

for the Gunner Restraint. As a result, $9.9M has been saved and 861 production lead 

time days have been avoided.

Key participating organizations:

 Internal to DLA:

- DLA Aviation 

- DLA Land and Maritime

- DLA Troop Support

 External to DLA:

- Office of the Deputy Assistant Secretary of Defense, Systems Engineering

- Military Services and Defense Agencies

- Department of State

- Department of Transportation

- Department of Energy

POC: J34
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Goal: Decrease Direct Materiel Costs

Initiative: Honeywell Components Enterprise PBL Pilot Program 

Background: The Defense Logistics Agency, in conjunction with the Military Services, is 

leading an effort for the Assistant Secretary of Defense, Logistics and Materiel Readiness (ASD 

L&MR) to leverage the Department of Defense’s (DOD) large scale buying power by pursuing a 

pilot Enterprise Performance-Based Logistics (EPBL) program. This initial EPBL effort 

supports DOD’s Better Buying Power 2.0 guidance to “increase effective use of PerformanceBased Logistics” by providing incentives to industry to deliver increased reliability and 

availability at reduced cost. Honeywell is the Original Equipment Manufacturer (OEM) for 

aviation platform components and ground support equipment for the Army, Navy, and Air Force 

for which there are PBL contracts already in place. This pilot program intends to increase the 

value proposition of Military Service-level PBLs by putting the collective requirements of each 

Military Service under a single contract vehicle.

Description:

 The focus of effort for the program during this past fiscal year was to prepare the Request 

for Proposal (RFP) for release to Honeywell. The major issues requiring agreement by 

all stakeholders included determining the most appropriate pricing method for each 

component, completing the commerciality determination process for all consumables, 

and finalizing the Performance Work Statement (PWS). Challenges associated with 

completing the PWS included developing the language for each pricing method (demand 

band, flying hour band, or a hybrid of both), capturing each of the Military Service’s 

requirements, and addressing the top cost drivers identified by Honeywell. DLA 

provided an initial draft of the RFP to the Military Services and Honeywell in January 

2014 for their review. DLA and Honeywell participated in a Value Stream Mapping 

Event in January to streamline proposal development, post proposal actions and processes 

associated with the contract award timeline.

 After several working level group reviews, DLA provided an updated draft RFP to 

Honeywell in April 2014 that outlined Military Service unique requirements. The DLA 

Director signed the Honeywell EPBL Integrated Process Team Memorandum of 

Agreement (EPBL IPT MOA) on 15 April 2014 that delineated the business rules for the 

IPT and ensured that each Military Service stakeholder had the ability to conduct reviews 

and approve all major decisions and work products. Each Military Service subsequently 

signed the MOA signifying satisfaction of their respective Military Service requirements. 

DLA released the formal RFP to Honeywell on 30 April 14 reflecting each Military 

Service’s specific requirements. Some of these individual requirements had the potential 

to reduce the efficiencies and cost savings that the EPBL arrangement could yield. The 

scope and complexity of the proposal presented challenges going forward as each 

Military Service had differing requirements captured in the single RFP. A Pre-Proposal 

Conference was held in June 2014 to identify significant common ground between DLA, 
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the Military Services, and DOD audit agencies as it related to the Value Stream Mapping 

documents.

Outcome(s): Through discussions between DLA and Honeywell senior leadership, the 

Honeywell proposal delivery date was set as 14 Oct 2014. However, due to various proposal 

development issues from both the government and Honeywell, the final proposal delivery date 

slipped from 14 October 2014 to 30 January 2015. Efforts to mitigate further proposal 

submission delay and reduce the proposal review process for contract award are ongoing

Key participating organizations:

 Internal to DLA:

o DLA Aviation

o DLA Acquisition (J7)

o DLA Logistics Operations (J34)

 External to DLA:

o Honeywell Defense and Space

o Naval Supply Systems Command, Weapon Systems Support (NAVSUP WSS)

o Ogden Air Logistics Center, Hill AFB, UT (Ogden ALC)

o United States Navy Fleet Repair Centers

 East (Cherry Point, NC)

 South East (Jacksonville, FL)

 South West (North Island San Diego, CA)

o United States Army Material Command (USAMC)

 United States Transportation Command (TRANSCOM)

 Anniston Army Depot (ANAD)

 United States Air and Missile Command (AMCOM)

POC: J34
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Goal: Decrease Operating Costs 

Initiative: Improve OCONUS Shipment Container Utilization 

Background: In December 2011, the Defense Logistics Agency agreed with the United States 

Transportation Command’s (USTRANSCOM) proposal to adopt an 85% aggregate container 

utilization goal for all customers. The DLA Troop Support Subsistence Supply Chain agreed to 

an 85% per container goal for Afghanistan and 80% for all other locations. In March 2012, the 

DLA Office of Operations Research and Resource Analysis (DORRA) began distributing 

monthly container utilization performance reports for DLA Distribution and began the same in 

June 2012 for DLA Troop Support. Also, in March 2012, DORRA began capturing the cost 

avoidance and cost savings associated with DLA Distribution’s improved container utilization 

performance (DORRA will do the same for DLA Troop Support in FY15). USTRANSCOM 

reports DLA’s cost avoidance figures as part of the Distribution Process Owner Strategic 

Opportunities (DSO) under the Strategic Surface Route Plan umbrella.

Description:

 In an effort to optimize Theater Distribution, DLA Distribution developed a 

Global Theater Consolidation Shipping Point (TCSP) Performance Report to 

monitor volume and velocity by cargo type through all DLA TCSPs.

 No TSCPs were established in FY14 as the current network met anticipated 

requirements.

 In FY15 DLA Distribution intends on assessing initiatives to increase Container 

Consolidation Point (CCP) weight/cube thresholds for external shippers.

 DLA provided recommended adjustments to the supplier segment in the Time 

Definite Delivery (TDD) standards to USTRANSCOM. While USTRANSCOM 

concurred with the recommendations, the proposed TDD changes were not 

adopted during the TDD conference. DLA intends on pursuing new 

recommendations during FY15.

 DORRA will continue to capture metrics and produce monthly container 

utilization and cost avoidance reports for DLA Distribution and DLA Troop 

Support Class I shipments.

Outcome(s): DLA continues to accumulate cost avoidance and cost savings as a result of its 

container utilization improvement efforts. DLA will continue to partner with USTRANSCOM 

to save tax payer dollars on over ocean movements by maximizing the usable capacity of 

containers, which results in fewer containers being shipped through the transportation pipeline.

 DLA Distribution’s container utilization rate improved from 65% in February 

2012 to an average of 77% for FY14, with DLA Distribution Susquehanna having 

the highest average rate at 89%.

 DLA Troop Support’s container utilization rate has remained consistent from the 

73% rate in May 2012 to the FY14 average of 73%. Improvement is expected 
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once all of the Subsistence Prime Vendor (SPV) contracts are modified to include 

the applicable utilization percentage requirement and verbiage that defines the 

DLA Troop Support SPV adopted usable capacity figures for the various types of 

ocean containers.

Key participating organizations:

 Internal to DLA:

o DLA J34 Transportation Policy

o DLA Distribution J3 Ops

o DLA Troop Support Class I

o DLA Office of Operations Research and Resource Analysis

 External to DLA:

o USTRANSCOM J4/J5

POC: J34
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Goal: Decrease Operating Costs

Initiative: Long-Term Storage (LTS) of Demilitarization (DEMIL) Code B and Sensitive Q 

Property

Background: 

In 2007, the Office of Secretary of Defense (OSD), Assistant Secretary of Defense for Logistics 

and Materiel Readiness (ASD L&MR) raised concerns over Demilitarization (DEMIL) Code B 

and Sensitive Q items. These items, if released to the public, are considered sensitive for 

purposes of National Security to the extent that the loss of Department of Defense (DOD) control 

once outside of DOD custody poses too great a risk that these items could be sold (2nd and 3rd 

tiers buyers) without the proper Trade Security Controls (TSC)/Export controls, and ultimately 

end up in unfriendly hands. OSD tasked the Defense Logistics Agency to study current DOD 

Disposal Policies and recommend changes that would secure controls on this type of equipment 

to maintain National Security.

 In early 2008, DLA proposed a change to the current policy. On 14 November 2008, 

ASDL&MR, issued a new policy memo, “Materiel Disposition Policy Change 

Concerning F-14 Parts, DEMIL Code B Munitions List Items (MLI), and 

Demilitarization Code Q Commerce Control List Items (CCLI).” The memo stopped 

the sale of DEMIL Code B and DEMIL Code Q items deemed Sensitive to the public and 

instructed DLA to establish long term storage to hold these materials for an indefinite 

period of time. LTS principle mission was to receive, store and offer reutilization of 

usable equipment to Military Departments and authorized DOD community. The LTS 

began in January 2009.

 In 2012, DLA was tasked by ASD LM&R to study the existing policy and recommend 

appropriate changes for the management of these assets. This included the study of the 

Supply and Demand Reutilization history. In addition, DLA was to present their 

proposal to the House Arms Services Committee (HASC) and to the Senate Arms 

Services Committee (SASC) to ensure the updates met their guidance and support. In 

September 2012, DLA hired an independent contractor to analyze and recommend a 

solution to move forward. DLA’s proposal to hold property for a 24 month cycle and, if 

zero reutilization demands, remove property from inventory and mutilate, was presented 

to the HASC and SASC; both committees approved DLA’s recommendation.

 On 12 July 2013, the ASD L&MR, launched a new DEMIL Code B and Sensitive Code 

Q policy memo which gives authority for DLA to hold property for a 24-month cycle, 

then remove property that has had zero reutilization demands and mutilate the property in 

accordance with the existing disposal processes and to sell it as scrap.

Description: DLA currently operates under the OSD policy of 12 July 2013. DLA’s 

implementation of the OSD policy/guidance strengthened the DEMIL Code B and Sensitive Q 

property controls that led to the significant reduction of needless inventory, and no impact to 
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National Security concerns. DLA ensures business rules are working properly to manage and 

control inventory levels under the recent changes in system capabilities. DLA’s execution of the 

OSD policy was the solution to reduce levels of DEMIL Code B and Sensitive Q excess 

inventory in long term storage that had zero reutilization demands in a 24-month period. The 

policy’s intent was to reduce overall operating costs and storage space requirements. A potential 

risk is the inability to move property to ultimate disposal in a reasonable timeframe due to 

enormous volume and complexity of accumulation of inventory over a six year period.

Outcome: The DLA established key objectives to ensure the receipt and proper storage, 

reutilization and disposition of DEMIL Code B and Sensitive Q items identified for LTS 

reutilization opportunities for the Military Services and DOD community. DLA Disposition 

Services implemented the new policy in July 2013. The new policy has resulted in:

 Reduced storage by ~350K Cubic Sq. Ft.; eliminated 2 large warehouses 

 Reduced inventory by 135,000 Line Items (76,738 unique National Stock Numbers 

(NSN)), valued at $2.7M with Zero Demand/Reutilization 

 Inventory as of Dec 2014 consists of new items that have not been previously stocked in 

LTS and/or items with a demand in the last 24 months (34,389 NSNs, 1.7M pieces, 

$715M Acquisition Value).

Key participating organizations:

 Internal to DLA:

o DLA Headquarters Logistics Operations (J34)

o DLA Disposition Services

 External to DLA:

o Military Departments, as well as designated Special Programs such as the Firefighters 

and Law Enforcement activities

POC: J34
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Goal: Decrease Operating Costs

Initiative: Strategic Network Optimization (SNO) – Phase I

Background: The SNO Program originated in June 2009 as one of five initiatives under the 

Distribution Process Owner (DPO) Strategic Opportunities (DSO). The DSO initiative identified 

an actionable set of five enterprise level opportunities that could realize distribution process 

improvements, improve surface and air delivery performance, place materiel in forward 

positions, optimize the global distribution network, and generate cost savings/avoidances. In 

Fiscal Year 2010, the Secretary of Defense (SECDEF) directed the Department to identify 

initiatives to obtain efficiencies. Based on the SECDEF direction, the Assistant Secretary of 

Defense for Logistics and Materiel Readiness (ASD (L&MR)) established, with Joint Logistics 

Board endorsement, the SNO initiative as a logistics efficiency with oversight under the ASD 

(L&MR) and program authority to the Director, Defense Logistics Agency to administer it. The 

SNO Program objective is to optimize the Department of Defense Global Distribution Network, 

reduce operating costs, balance efficiency and effectiveness, and provide agility and performance 

to support the warfighter.

Description: Phase I of the SNO initiative was designed to use aggregated demand data in a 

network flow model to determine the most feasible, least cost network structure subject to 

performance and capacity constraints. The DoD Global Distribution Network included supply, 

distribution, disposition and transportation components. Based on measurable customer demand, 

the resulting design aligned elements of the network affecting the DOD flow of consumables 

through DLA Distribution Centers. Phase I implementation began in FY13 and continued 

through FY14.

 Economic SKU Build (ESB) logic was implemented the beginning of FY13. ESB logic 

consolidated CONUS stocking into three main DLA Wholesale Distribution points at 

DLA Distribution Susquehanna, Pennsylvania, DLA Distribution San Joaquin, California, 

and DLA Distribution Red River, Texas. All other DLA Distribution centers in the 

Continental United States (CONUS) maintained their retail mission including support to 

Industrial Activities (IA) and, where economical, can provide world-wide distribution 

support.

 Consolidation of volume into three main depots allowed for an increase use of scheduled 

truck routes. The Scheduled Truck Route Optimization (STRO) tool was deployed to 

DLA Distribution. The tool has the capability to design and update scheduled truck 

routes allowing for optimized workload planning resulting in more efficient use of assets, 

decreased transportation costs and decreased customer delivery times.

 SNO modeling identified 100 NIINs that were forward deployed to the United States 

Pacific Command (PACOM) region to support missions in PACOM. This forward stock 

positioning will optimize Supply Chain and Military Service transportation costs while 

improving material availability. The Pacific Fleet leadership has reported a significant 

increase in forward positioned items and a positive impact to the Seventh Fleet readiness.
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 The SNO Team also supported tasks, increasing the Routing Identifier Code (RIC) 

participation in In-Storage Visibility (ISV). These actions added an additional 250 RICs 

to the ISV Program allowing visibility of more excess inventory within the ISV program 

to support other Military Service and DLA requirements through lateral redistribution and 

procurement offset.

 Phase I implementation projects savings/cost avoidance of $402M over FY 14-19.

Outcome(s):

 The SNO Team produced a monthly SNO Metrics Report and distributed it to Office of 

the Secretary of Defense (OSD) and all SNO stakeholders. The report updated data on 12 

specific metrics tracked by the SNO Team with a focus on Phase I performance across 

the network. Trends and analysis were provided and selected metrics briefed at the 

monthly OSD Supply Chain Metrics Group meeting.

 The SNO Team attended monthly DOD Comprehensive Improvement Plan (CIMIP) 

Working Group Meetings and monthly IPRs to the Deputy Assistant Secretary of Defense 

Supply Chain Integration (DASD/SCI) to provide updates on the SNO Program Phase I 

execution and to ensure SNO initiatives were synchronized with CIMIP initiatives. 

 The SNO Team conducted SNO Face-to-Face (F2F) Engagements with all stakeholders 

at the Mark Center. Representatives participated from Office of the Deputy Assistant 

Secretary of Defense Supply Chain Integration (DASD (SCI))Joint Staff J4, the Military 

Services, United States Transportation Command (USTC), DLA J-Codes, and DLA 

Primary Field Level Activities (PLFAs). Updates were provided on Phase I 

Implementation and resulting network performance 

 Finding of No Significant Impact (FONSI) for the SNO Environmental Assessment (EA) 

in accordance with (IAW) the National Environmental Policy Act (NEPA) was approved 

and signed by Mr. David Rodriguez, DLA Director of Installation Support 

 The SNO Executive Council met to discuss the latest status on the SNO Program and 

provided guidance to the SNO Program Management Office 

 The SNO Team forwarded the SNO Program FY13 Annual Report to DASD (SCI) 

providing an update on current initiatives and other relevant changes from the previous 

fiscal year affecting the SNO Distribution Network.

Key participating organizations:

 Internal to DLA:

o Headquarters, Defense Logistics Agency 

o DLA Aviation

o DLA Disposition

o DLA Distribution

o DLA Energy

o DLA Land and Maritime

o DLA Troop Support
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 External to DLA:

o Office of the Assistant Secretary of Defense for Logistics and Materiel Readiness 

(ASD(L&MR))

o Office of the Deputy Assistant Secretary of Defense Supply Chain Integration 

(DASD (SCI))

o Joint Staff (J-4)

o Military Services (Army, Navy, Air Force, Marine Corps)

o Military Service Logistics Commands (USAMC, AFMC, NAVSUP and 

MARFORLOGCOM)

o United States Transportation Command (USTC)

o General Services Administration (GSA)

POC: J34
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Goal: Decrease Operating Costs

Initiative: Post-BRAC Efficiencies 

Background: As part of BRAC 2005, the Defense Logistics Agency sought to reduce 

unnecessary duplication in the supply and distribution processes. As part of these efforts, DLA 

teamed with the Navy to optimize the management of hazardous materials. This included 

management of the Chemical Management Services (CMS) initiative and transitioning naval 

sites to the Hazardous Materials Management System (HMMS) due to the sunset of the existing 

Regional Hazardous Inventory Control System (RHICS).

Description: HMMS and CMS are two different yet related concepts. The HMMS is a database 

tool used to track all aspects of hazardous material management. CMS is a service where a 

contractor provides end-to-end hazardous materials management support including preauthorization, procurement, storage and distribution, and disposal of hazardous materials. The 

CMS initiative is an opportunity to work with willing partners in an effort to reduce overall costs 

and standardize processes associated with the management of hazardous materials. HMMS will 

be used to manage hazardous material within the CMS.

Outcome(s): In June of 2014 DLA Strategic Programs Office (J34) completed the launch of 

HMMS at 4 Naval Shipyards. Also during FY 14, DLA implemented the first CMS location, 

teaming with the Marine Corps in Okinawa, Japan and awarded a contract for DLA to manage 

hazardous materials management. Efforts are ongoing to improve hazardous materials 

management in Okinawa, Japan. The next phase of execution in FY15 will focus on partnering

with the willing Military Service participants to implement CMS at West Coast sites, beginning 

with Marine Corps Air Station (MCAS) Miramar.

Key participating organizations:

 Internal to DLA:

o DLA HQ J34

o DLA Distribution

 External to DLA:

o United States Marine Corps

o United States Navy

o Coast Guard

POC: J34
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Goal: Decrease Operating Costs

Initiative: Building Knockdown 

Background: In 2004, the U.S. Army Corps of Engineers was tasked by the Army to manage the 

Facility Reduction Program (FRP). The FRP expanded to support multiple Department of 

Defense (DOD) federal agencies (DLA, National Aeronautics & Space Administration (NASA), 

Air Force, and Army Reserves) in their demolition requirements. In support of this effort, the 

Defense Logistics Agency initiated concepts that would possibly reduce DLA wholesale gross 

square footage (gsf) from 55M in 2008 to 25M in 2019 based on the successes of DLA’s 

inventory reduction and consolidation efforts. DLA developed the concept of Building 

Knockdown with the fundamental goal of demolishing empty government buildings on DOD 

installations across the enterprise that will drive reduced operating costs for the DOD.

Description:

 As a result of DLA’s inventory reduction and consolidation efforts, it is vacating 

buildings at various installations. Once the buildings are emptied, they are offered back 

to the owning Military Service. If the owning Military Service determines the building is 

not needed, DLA contracts and funds structure demolition.

 DLA Logistics Operation’s (J3) estimated $5.9B of DLA net inventory reductions 

through FY19 allows for return of 16 buildings at 4 sites totaling 977K gsf. Additionally, 

building returns planned through on-going optimization efforts will yield 21 buildings 

(and 1 partial) at 5 sites resulting in another 2.5M gsf reduction. The revised reduction 

plan totals 3.5M gsf. 

 The calculations were developed based on the following assumptions:

o The DLA net inventory reduction target as shown in Figure 1.

Figure 1

o 75% of disposals will have retention quantities; 25% will be total disposals with no 

retention quantities.

o 93% of disposals are material in covered storage.

o Future disposal dollar values across the distribution centers will follow historical 

percentages.

o 1 cube of material = $475 average inventory value.

o 1 gsf equates to 2.16 materiel cube.

o Optimization of space and subsequent building returns will occur in the FY following 

the inventory reduction.
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 As shown in Figure 2, applying the above assumptions results in a reduction of 1.34M gsf 

based on the target inventory of $5.9B.

Figure 2

$ to Material Cube to GSF Calculation

$

Total Disposals Covered Disposals Material Cube Cube to GSF

25% 93% 1 cube = $475 2:16:01

$5,900,000,000 $1,475,000,000 $1,371,750,000 2,887,895 1,336,988

 Matching inventory-generated gsf reductions to specific buildings reduces the 

1.34M gsf to approximately 977K gsf. Incorporating the 977K gsf with the 

previously planned reductions of 2.5M gsf, results in a total reduction of 3.5M 

gsf. This is the new baseline used for the Future Years Defense Program (FYDP).

 The FYDP plan includes a total return of 37 buildings/warehouses totaling 3.5M 

gsf~ 61 football fields as shown in Figure 3.

Figure 3

Outcome(s): Since 2012, DLA demolished 27 buildings totaling 4.7M gsf--approximately 87 

football fields. DLA contracted for demolition of 9 buildings at Defense Depot San Joaquin, CA 

(DDJC). To date, 8 of 9 buildings were demolished for a total of 1.3M gsf--approximately 28 

football fields. The remaining building is scheduled for demolition by the end of December 

2014. At Mechanicsburg, PA, eight buildings (965K gsf, approximately 16 football fields) are 

scheduled for demolition in December 2014.

Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations, J3

o DLA Installation Support
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o DLA General Counsel

o DLA Finance, J8

o DLA Distribution 

o DLA Disposition Services

o DLA Land and Maritime

o DLA Aviation

 External to DLA:

o U.S. Army Corps of Engineers

o Navy Installation Command

o Public Works Department Pennsylvania

o Military Services (Army, Navy, Air Force, Marine Corps)

POC: J34
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Goal: Reduce Inventory 

Initiative: Excellence in Inventory Management (Clean the Attic)

Background: Over the previous 12 years, the Defense Logistics Agency (DLA) inventory 

increased from $8.9B to $14.25B in February of 2012. With mission requirements decreasing in 

both Iraq and Afghanistan, it was time to reduce DLA inventory. In Feb 2012, The DLA 

Director, Vice Admiral Mark Harnitchek, launched his Big Ideas campaign which included the 

“Clean the Attic” initiative to reduce non Energy Inventory by $6B over the Five Year Defense 

Plan (FYDP). The FY14 goal of $10.99B was set during the Director’s monthly Inventory 

Management Council meeting with senior DLA leadership from DLA Headquarters and the 

commanders from the Primary Level Field Activities.

Description: The reduction efforts required the Agency to evaluate the breadth and depth of 

inventory in Contingency Retention Stock (CRS), Economic Retention Stock (ERS), and 

Potential Reutilization Stock (PRS). 

 In 2012, the Agency began to reduce Contingency Retention inventory for items with no 

demand in 10 or more years. The Agency made limited exceptions for nuclear-related 

weapons systems. Inventory meeting the criteria of no demand in at least 10 years was 

reduced by $420M dollars before the end of FY2012 with an eventual reduction of almost 

$700M.

 Over the last 15 years, numerous customers requested DLA retain items coded to their 

weapon systems. Over time, the number of weapon system exclusions grew to over 100. 

Prior to 2012, some progress had been made in reducing exclusions but Contingency 

Retention levels still exceeded $1.8B. In 2013, the majority of the Weapon System 

Disposal Exclusions were removed. Customers had to limit exclusion requests to specific 

items of concern as well as perform an annual validation. Since 2012, CRS Inventory has 

been reduced by $1.1B.

 DLA’s Economic Retention model was revised to increase the cost to store assumption 

from 1% of inventory value to 3% of inventory value so that funded and unfunded 

Sustainment Restoration and Modernization (SRM) costs were captured in storage rates. 

As a result, over $1 billion in ERS was identified for disposal. Additionally, supply 

chains identified items with specific characteristics (such as items being phased out) in 

which disposal risks would be minimal from both an operational and economic 

standpoint.

 PRS had been significantly reduced prior to FY12 but the Agency continued to focus 

efforts on ensuring no further growth occurred in this category of inventory.

 Figure 1 summarizes the timing of inventory reduction initiatives and the cumulative 

effect on disposals.
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Figure 1: Inventory Reduction Initiatives and Effect on Disposals

 Reduction of inventory levels has inherent risks—items disposed may have to be 

repurchased. The risk of rebuy increases as disposals are executed on depth of stock for 

items with a more active demand profile. As Figure 2 shows, DLA has had to rebuy 

approximately $147M of previously disposed material — 3% of the inventory disposed 

since October 2011.

Figure 2: Cumulative Rebuys for Previously Disposed Items
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Outcome(s): As of November 2014, DLA had disposed of over $5B in inventory and reduced 

levels from $14.2B to $11.2B.

Key participating organizations:

 Internal to DLA:

o DLA Aviation

o DLA Land and Maritime

o DLA Troop Support

o DLA Distribution

o DLA Disposition Services

o DLA Logistics Operations (J3)

 External to DLA:

o Military Services (Army, Navy, Air Force, Marine Corps)

POC: J34
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Goal: Reduce Inventory

Initiative: Peak Next Generation Program

Background: Peak/NextGen (PNG) brings together two groundbreaking inventory control 

algorithms which replace forecasting with risk management-based inventory levels. These 

algorithms balance the risks of out of stocks versus over-investing.

Description:

 PNG offers managers a single integrated decision across bottom line metrics – material 

availability, procurement requests (PRs) generated by the system, and dollars tied up in 

inventory.

 Peak Policy is used for items with sporadic demand (less than half the previous 20 

quarters have demand). Peak Policy finds the largest spike in demand and mitigates the 

risk against some affordable percentage of the spike.

 Next Generation Inventory Model (NextGen) is used for items with frequent (more than 

half the previous 20 quarters have demand) but highly variable (the standard deviation 

divided by the mean is >1) demand. Next Gen bases the decision on when and how much

to buy on the demand quantities and time between customers’ demands. It uses empirical 

rather than textbook distributions.

 The Defense Logistics Agency Logistics Operations (J3) and DLA Information 

Operations (J6) are working on an implementation plan to bring in all of PNG's logic 

within DLA's Information Technology (IT) environment.

Outcome(s): In October 2014, PNG set min/max levels for approximately 556,000 items with 

impacts to Planning, Procurement, and Finance:

 Material availability increased

o From 70% to 81% for Peak items

o From 85% to 89% for Next Gen items

 Churn in requirements were reduced – there are fewer buys that made and later 

cancelled:

o 72% fewer cancellations for Peak PRs

o 85% fewer cancellations for Next Gen PRs

 Procurement experiences less workload because 40% fewer PRs are generated.

 Outstanding unfilled orders (UFOs) are down 27%.

Key participating organizations:

 Internal to DLA:

o DLA Headquarters 

o DLA Aviation
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o DLA Land and Maritime

o DLA Troop Support

 External to DLA:

o Assistant Secretary of Defense for Logistics and Materiel Readiness (ASD(L&MR))

o Military Services (Army, Navy, Air Force, Marine Corps)

POC: J34
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Goal: Reduce Inventory

Initiative: Reducing On-Order Excess (OOE)

Background: OOE is material on order from a vendor that is no longer needed to meet 

operational requirements. Typically it occurs when customer demand declines significantly after 

the contract for material is awarded. OOE has been cited as one of the criteria the Government 

Accountability Office (GAO) uses for retaining Department of Defense Inventory Management 

on the GAO High Risk list. An audit of Defense Logistics Agency Inventory management was 

released in May 2010 and included a recommendation to “...evaluate the effectiveness of the 

Agency’s process for identifying and potentially reducing potential over-procurements and 

determine the feasibility of applying the process on a wider scale.” In 2011, the DOD included 

OOE as one of its primary inventory metrics within the Comprehensive Inventory Management 

Plan (CIMIP). The Plan established a goal to ensure Military Services and DLA reduce the 

percentage of OOE to less than 6% in FY14 and less than 4% by FY16. In 2014, DOD changed 

the term “on-order excess” to “due-in long supply”.

Description:

 In 2010, DLA’s rate of OOE was 8%. To increase focus and improve performance in this 

area, OOE was included as a metric in the Agency Performance Reviews (APR) for 2011 

and 2012. Each DLA field activity was required to reduce their rate of OOE for both 

Purchase Requests and Contracts. The metric was removed in 2013 at the same time a 

number of other performance indicators were removed from the APR.

 A system change request was initiated in 2012 to ensure non-cancellations of OOE 

Purchase Requests (PR) and contracts were reviewed by higher authority on both supply 

and acquisition side. It was implemented in early 2014. 

 In 2013 GAO initiated another review of DLA Inventory Management. They completed 

their audit in early 2014 and recommended reinstituting OOE as a metric in the APR; it 

has been a part of the APRs since June 2014.

Outcome(s): DLA has reduced OOE from 8% to less than 5.6% and achieved the FY14 DOD 

goal of less than 6%. Contributing factors included offline collaboration with customers 

regarding their forecasted requirements, and identification of “buy aheads”. The “buy aheads” 

support longer term demands while maintaining a consistent source of supply by keeping 

production lines going. The OOE remains a Senior Level focus in the APR.

Key participating organizations:

 Internal to DLA:

o DLA Aviation

o DLA Land and Maritime

o DLA Troop Support

o DLA Logistics Operations (J3)
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 External to DLA:

o Assistant Secretary of Defense for Logistics and Materiel Readiness (ASD (L&MR)

POC: J34
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Goal: Reduce Inventory

Initiative: Strategic Network Optimization (SNO) – Phase II

Background: The SNO Program originated in June 2009 as one of five initiatives under the 

Distribution Process Owner (DPO) Strategic Opportunities (DSO). The DSO initiative identified 

an actionable set of five enterprise level opportunities that could realize distribution process 

improvements, improve surface and air delivery performance, place materiel in forward 

positions, optimize the global distribution network, and generate cost savings/avoidances. In 

Fiscal Year (FY) 2010, the Secretary of Defense (SECDEF) directed the Department to identify 

initiatives to obtain efficiencies. Based on the SECDEF direction, the Assistant Secretary of 

Defense for Logistics and Materiel Readiness (ASD/L&MR) established, with Joint Logistics 

Board endorsement, the SNO initiative as a logistics efficiency with oversight under the ASD 

(L&MR) and program authority to the Director, Defense Logistics Agency to administer it. The 

SNO Program objective is to optimize the Department of Defense (DOD) Global Distribution 

Network, reduce operating costs, balance efficiency and effectiveness, and provide agility and 

performance to support the warfighter.

Description: SNO Phase II explores opportunities that improve inventory visibility and demand 

recording of all Defense Logistics Agency (DLA)-managed consumables in the network. In 

accordance with the vision developed by the SNO Executive Council in December 2013, SNO 

Phase II focus is on increasing inventory visibility and accessibility to maximize inventory 

availability to meet customer requirements. The two focus areas for Phase II are Enhanced InStorage Visibility (ISV) and Multi-Echelon Visibility.

 The Enhanced ISV initiative focuses on developing enhancements to the existing DLA 

ISV Program which supports reutilization of Military Service excess inventory via lateral 

redistribution and procurement offsets. Potential enhancements include visibility of retail 

inventory combined with automation of the ISV process and use of Military Service 

excess inventory as part of the DLA sourcing wheel. A Request for Change to support 

the Enhanced ISV requirements was submitted. 

 The Multi-Echelon Visibility initiative is a collaborative approach to eliminate redundant 

inventories at multiple echelons of supply by providing visibility of customer demands at 

all levels. It allows for coordination of planning and inventory management information 

between wholesale and retail levels. The initial Navy Proof of Concept, using modeling 

and simulation capabilities, explored the benefits of multi-echelon visibility. Using retail 

demand data from NAS Lemoore, NSB New London, NAS Oceana, and NAS Patuxent 

River, the SNO team constructed a multi-echelon inventory optimization model and 

executed a number of scenarios aiming to identify a realm of possible benefits. The Navy 

Proof of Concept results and analysis showed positive results with the following potential 

benefits: reducing inventory, increasing demand visibility, reducing the number of nonforecastable items, lower variability in shipment weights, and a reduction in wholesale 

delay time. As the analysis was limited to retail data from four Navy sites, the team is 
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expanding the model to include full fiscal year retail demand data from all Military 

Services to analyze the full potential across the Military Services.

Outcome(s):

 The SNO Team produced a monthly SNO Metrics Report and distributed it to OSD and 

all SNO stakeholders. The report provided updated data on 12 specific metrics tracked 

by the SNO Team. Three of the 12 metrics (Lateral Redistribution, Procurement Offset 

and RIC Participation) were added during FY 2014 based on the focus areas worked as 

part of Phase II. Trends and analysis was provided and selected metrics briefed at the 

monthly OSD Supply Chain Metrics Group meeting. 

 The SNO Team attended monthly DOD Comprehensive Improvement Plan (CIMIP) 

Working Group Meetings and monthly IPRs with the Deputy Assistant Secretary of 

Defense Supply Chain Integration (DASD/SCI)) to provide updates on the SNO Program 

Phase II development and to ensure SNO Phase II initiatives were synchronized with 

CIMIP initiatives. 

 The SNO Team conducted SNO Face-to-Face (F2F) Engagements with all stakeholders. 

Representatives participated from DASD (SCI), Joint Staff (J4), all Military Services, 

United States Transportation Command (USTC), DLA J-Codes and DLA Primary Field 

Level Activities (PLFAs). Updates were provided on Phase II development, Business 

Plan coordination and coordinating actions for Phase II (December 2013, May 2014 and 

August 2014).

 The SNO Executive Council met to discuss the latest status on the SNO Program and 

provided guidance to the SNO Program Management Office (December 2013 and 

September 2014).

 SNO Phase II vision was approved by the SNO Executive Council (December 2013).

 The SNO Team provided assistance to DLA Distribution using the SNO network flow 

model to conduct analysis on assessing existing DLA organic storage and distribution 

capabilities against planned Joint Strike Fighter (JSF) future locations and requirements 

(December 2013 – February 2014).

 The SNO Phase II Business Plan was approved by Mr. Paul Peters, ASD (L&MR). The 

plan supports the DOD CIMIP initiatives of increased visibility and accessibility of DOD 

inventory (June 2014).

 Submitted RFC BOF-C14-0065 in support of the Enhanced ISV initiative (July 2014). 

 The J34 Director signed and approved the DLA J34 SOP 2014.02; "Lateral 

Redistribution Orders and Procurement Offsets using Retail Materiel Identified through 

In-Storage Visibility Systems". This SOP documents the current process for DLA ISV to

establish a baseline on policies and business rules for DLA ISV (LR/PO) in order to 

identify process enhancement opportunities as part of SNO Phase II efforts (August 

2014).
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161

 Completed the Navy Proof of Concept using modeling and simulation capabilities to

explore the benefits of multi-echelon visibility with follow-on integration of other 

Military Services (August 2014).

 Conducted engagements with Military Services on results and potential benefits based on 

completion of the Navy Proof of Concept and gained consensus from Military Services to 

provide retail data to move on to the next step of expanding the Multi-Echelon Visibility 

modeling and simulation to all Military Services (September/October 2014).

 Submitted input to nest the two SNO Phase II focus area initiatives under the draft CIMIP 

Phase II Plan. The plan has an approval target timeframe of spring 2015. The two 

initiatives have been renamed from Multi-Echelon Visibility to Consumable Planning and 

Demand Visibility and from Enhanced ISV to Consumable Visibility (September 2014).

 Program Management for SNO transitioned from J346 Program Management Division to 

J342 Inventory Distribution Network Division (October 2014).

Key participating organizations:

 Internal to DLA:

o Headquarters, Defense Logistics Agency 

o DLA Aviation

o DLA Disposition

o DLA Distribution

o DLA Energy

o DLA Land and Maritime

o DLA Troop Support

 External to DLA:

o Office of the Assistant Secretary of Defense for Logistics and Materiel Readiness 

(ASD(L&MR))

o Office of the Deputy Assistant Secretary of Defense Supply Chain Integration 

(DASD (SCI))

o Joint Staff (J-4)

o Military Services (Army, Navy, Air Force, Marine Corps)

o Military Service Logistics Commands (United States Army Materiel Command 

(USAMC), Air Force Materiel Command (AFMC), Naval Supply Systems Command 

(NAVSUP), and Marine Corps (MC) Logistics Command (LOGCOM))

o United States Transportation Command (USTC)

o General Services Administration (GSA)

POC: J34
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Goal: Reduce Inventory

Initiative: Business Case Analysis (BCA) for Battle Dress Uniforms Standardization (Class II) 

Background: In recent years, each Military Service introduced combat uniforms with unique 

variations in design features. Consequently, the Defense Logistics Agency procures, stocks, and 

manages a plethora of items, each with its own management requirements and costs. Update: 

The 2015 National Defense Authorization Act language prohibited the Military Services from 

developing or fielding new Military Service-unique combat uniforms.

Description: As part of the Class II governance council, a business case analysis was proposed 

to study the possibility of a standardized ground combat uniform. Estimated manufacturing 

savings were 5%-7%, with similar supply chain savings possible.

Outcome(s): Plans to pursue the business case analysis were not funded by the end of fiscal year 

(FY) 2014. Future funding of the study is uncertain at this time.

Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations (J3)

o DORRA

o DLA Troop Support

 External to DLA:

o None

POC: J34
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Goal: Improve Customer Service 

Initiative: Client Level Customer Survey (06, GS-15, Flag Officer, SES) 

Background: During 2013, DLA Military Service Support Division received the results of the 

senior stakeholder survey given to senior logistics leaders in all the military services. The result 

of the survey, which is done every two years, was a “net satisfaction rate” for each service: Navy 

77%, Marine Corps 76%, Army 71%. One disappointing outlier was the Air Force, whose 

satisfaction rate was 30 points below the other services with a low of 46%. The Air Force 

National Account Management team launched multiple initiatives to strengthen the DLA-Air 

Force relationship. In order to gauge the success or failure of these efforts, the DLA Air Force 

team conducted an out-of-cycle Air Force specific survey during 2014. 

Description: The cornerstone for action focused on communication, relationships, and 

leadership. National Account Managers (NAMs) develop communication plans, continued 

communication flow between the J3 and service peer equivalents, ensure DLA leadership 

reinforces role of NAM when corresponding with service leaders, and pushed NAMs to engage 

in more face-to-face service meetings/conference in the National Capital Region (NCR).

Outcome(s): DoD logisticians understand the DLA mission / capacity to enable logistics, senior 

logisticians recognize their service NAM as a valued partner, and conducted a separate Air Force 

Survey during 2014

Key participating organizations:

 Internal to DLA:

o None

 External to DLA:

o Military Services (Army, Navy, Air Force, Marine Corps)

POC: J31
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Goal: Improve Customer Service

Initiative: Customer Quality Response Rate 

Background: During 2014, DLA conducted an Air Force specific survey. In keeping with the 

“demand chain” concept, the Air Force National Account Management team went to Richmond 

to meet face-to-face with the DLA Aviation Air Force Customer Facing Team. The Air Force 

Survey was conducted in July 2014.

Description: Prior to the July 2014 Air Force specific survey, a number of actions were taken to 

improve communications and material support to the Air Force. The team orchestrated a series 

of senior leader engagements between DLA and Air Force senior leaders. Regular visits, e-mails 

and phone calls by DLA leaders to their Air Force counterparts in the Air Force logistics 

community helped improve our relationships and reflected the commitment of our senior leaders. 

The DLA J3 spoke with the Director of Logistics at each of the Major Commands and the Air 

Force Director of Logistics. VADM Harnitchek was invited to be the keynote speaker at the 

October 2014 Logistics Officers Association Symposium involving a total of approximately 

1,800 physical and virtual attendees mainly Air Force officers. Many other actions focused on 

DLA’s retail mission at the Air Logistics Complexes (ALCs). 

Outcome(s): Air Force scores improved. This was validated by the 2014 Air Force Customer 

Satisfaction Survey which revealed that AF customer satisfaction improved from 46% to 73%. 

 DLA invested $288M and pushed inventory to the ALCs to improve depot throughput

 DLA adjusted stock policy, manually added 900 items to the shelf, increased retention policy 

and added safety stock resulting in a 67% drop in engine backorders and 58% cut in MICAP 

hours.

 To support the Air Force “shift to the pacific” and increase the operational readiness of Air 

Force units the team synchronized an effort by DLA-Pacific, Pacific Air Forces and Air Staff 

to forward stock 1,300 additional items valued at $3.8M to the Pacific theater. The effort 

aimed to cut the 4.7 day ground time for F-16s and A-10s on the Korean peninsula. 

Additionally, the relatively small investment increased the range of stock in the Pacific and 

improved readiness for the F-15, C-130, KC-135 and HH-60.

Key participating organizations:

 Internal to DLA:

o DLA Aviation

 External to DLA:

o Air Force

POC: J31
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Goal: Improve Customer Service

Initiative: Materiel Availability (MA)

Background: MA is used to measure the initial fill rate of warfighter repair parts orders. This 

initiative addresses the first key question maintainers ask about Defense Logistics Agency’s 

repair parts support: “When a mechanic needs a repair part from DLA, does DLA have the part 

available and do they immediately fill the order for that part?" DLA’s operational and industrial 

Military Service customers view MA as the top level metric of DLA’s impact on readiness by 

supporting requirements for weapon system repair parts.

Description: Based on guidance in Fragmentary Order (FRAGO) 3 to Operations Order 

(OPORD) 12-05, hardware supply chains Primary Level Field Activities (PLFA) were directed 

to achieve the Director’s established MA performance targets by the first quarter of FY14. 

These targets were 90% MA performance for DLA Aviation and DLA Land & Maritime supply 

chains and 93% MA performance for DLA Troop Support’s Industrial Hardware supply chain. 

Performance progress towards these targets was tracked by hardware supply chain PLFA 

leadership on a daily basis and reviewed with senior DLA leadership during monthly Agency 

Performance Reviews (APR).

Outcome:

 Table 1 depicts the FY14 MA monthly performance:

Table 1: FY14 Materiel Availability

Oct13Nov13Dec13Jan14Feb14Mar14Apr14May14Jun14Jul14Aug14Sep14

HW 89.6% 89.4% 89.7% 90.4% 90.9% 90.1% 89.9% 89.6% 89.4% 89.4% 89.2% 88.5%

AV 87.1% 86.8% 87.6% 88.5% 89.0% 87.8% 87.7% 87.5% 87.9% 88.3% 88.3% 88.2%

LM 88.9% 89.1% 89.3% 90.0% 90.7% 90.2% 89.8% 89.3% 88.6% 88.3% 88.1% 86.6%

IH 92.5% 92.2% 92.1% 92.6% 92.8% 92.2% 92.1% 91.7% 91.7% 91.6% 91.3% 91.0%

 Hardware (HW) consolidates the performance of Aviation (AV), DLA Land & Maritime 

(LM) and DLA Troop Support Industrial Hardware. For the Hardware Supply Chains – a 

great approximation for the overall status Class IX (repair parts) – the FY14 overall MA 

average was 89.7%, which represents a 0.5% increase from FY13. 

 DLA Aviation’s FY14 overall average MA was 87.9%, which was below the Director’s 

target level, but was 1.4% points higher than the FY13 average of 86.5%.

o Several events that adversely impacted DLA Aviation’s MA performance included 

Inventory Management and Stock Positioning (IMSP) rollouts at Fleet Readiness 

Center (FRC) Jacksonville (October 2013) and FRC Cherry Point (March 2014), and 

a high demand for an Incandescent Lamp during spring and summer FY14.

o Numerous efforts in FY14 focused on improving MA. A population of 

approximately 3K items considered “Crown Jewel items” was identified that 

accounted for 34% of the Aviation Supply Chain (ASC) demands. These items were 
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loaded into the Outcome and Assessment Information Set (OASIS) tool. Note: 

OASISTM is a forecasting tool used by DLA Aviation.

o OASIS tool which gave the Supply Planner greater visibility and helped to heighten 

support. Weekly MA reviews highlighted problem National Item Identification

Numbers (NIIN) enabling the planners to identify ways to improve support. The 

Planning Priority Table (PPT) code was developed to prioritize various workloads 

based on a NIIN’s demand volume and Business Driver Category code. These efforts 

contributed to improved performance in the ASC.

o Notable improvements include:

 Crown Jewels: 3,127 items, MA improved from 89.79% to 93.33% 

 Repeat Offenders: 197 items, MA improved from 14.57% to 60.51%

 F/A-18: 11,366 items, MA improved from 74.48% to 83.01%

 F-16 Wing: 526 items, MA improved from 77.18% to 94.63% 

 Ogden Support: 3,523 items, MA improved from 93.5% to 96.2%

 DLA Land & Maritime’s FY14 overall average MA was 89.1%, which was below the 

Director’s target level, but represents a 0.4% increase compared to the FY13 MA average 

of 88.7%. Most notably, DLA Land & Maritime maintained MA above the target 

throughout the second quarter.

o DLA Land & Maritime’s MA Focus Plan focused attention to high demand items and 

contributed to their best MA since December 2005 (90.7% in February 2014). The 

plan partitioned NIINs into groups based on Acquisition Advice Code and demand 

frequency and developed a target MA for each group. The High Demand group 

consisted of 30K NIINs accounting for 42% of order volume, and the Super Demand 

group consisted of approximately 620 NIINs accounting for 18% of order volume. 

The low quantity of NIINs in the Super Demand group enabled hands-on, intensive 

focus to comprehensively assess and proactively impact the health of each NIIN.

o Other actions contributing to their success include targeting root causes, recalibrating 

priorities, targeting Long Term Contract coverage for MA impact, and prioritizing 

awards for MA impact.

 DLA Troop Support’s Industrial Hardware’s FY14 overall average MA was 92.0%, 

which was below the Director’s target level, but remained high and relatively unchanged 

since FY13 (92.2%).

o Industrial Hardware’s MA performance remained constant for FY14 even through a 

change in customer ordering behavior characterized by an increased number of orders 

but a decreased average dollar value per order generated. Customers were submitting 

multiple small orders rather than one large order. Industrial Hardware continues to 

focus on its high annual demand frequency National Stock Numbers (NSN) and 

frequently teams with DLA Aviation and DLA Land & Maritime to prioritize 

requirements in order to maintain a fully supported posture. Despite changes in 

customer ordering behavior, Industrial Hardware is poised to make gains in FY15.
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Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations (J3)

o DLA Aviation

o DLA Land & Maritime

o DLA Troop Support

POC: J34
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Goal: Improve Customer Service

Initiative: Meet Agreed To Customer Repair Parts Order Delivery Performance Levels

Background: 

 Inventory Management and Stock Positioning (IMSP) is the Defense Logistics Agency’s 

initiative to extend consumable item supply chain responsibility from the wholesale level 

to the point of consumption. IMSP is an output from the Base Realignment and Closure 

(BRAC) 2005. It includes the transfer of material support operations from the Military 

Service Industrial Activities to DLA, transforming DLA into a retail support provider as 

well as a wholesale provider. IMSP was implemented at the Air Force’s Air Logistics 

Complexes (ALC) in 2009/10 and at the Navy’s Fleet Readiness Centers (FRC) in 

2013/14. Although start-up issues, system integration problems and the inevitable 

learning curves challenged performance, procedural and functional improvements are in 

constant development.

 DLA has worked closely with the Military Services to forward stock various items in 

support of specific, high visibility weapons systems. In particular, the Agency has 

focused on Outside Contiguous United States (OCONUS) sites supporting current 

operations in order to reduce Logistics Response Time (LRT). 

Description:

 The customer’s expectation is that they would receive the same or better support from 

DLA at the retail sites. The metrics to measure this support are heavily influenced by the 

availability of issuable parts and stock positioning decisions. Retail stock positioning, 

inventory reduction, acquisition decisions, distribution and transportation Big Idea 

Initiatives can all affect the customer’s metrics and warfighter readiness. 

 Beginning in October 2012, the Order Response Time (ORT) at ALC Ogden started to 

decline. In December of 2012 and January of 2013, a manual rebalance of materiel in the 

network for Retail items (11,664 STOs) was completed. Even though Dynamic 

deployment moves just enough materiel, it was decided to make larger moves of inactive 

materiel to the active retail locations. In coordination with Distribution, completed two 

large STO releases: 2,758 STOs on March 19th and 2,732 STOs on 2 April 2013.

 In January 2013, a Tiger Team was formed to research and identify the issues. The root 

cause was determined to be a change in the Air Force Express System which resulted in a 

demand pattern change. Over several months, Ogden performance drivers were 

identified and material was repositioned and/or buys were executed; an aggressive 

movement of material to the ALCs was put into place in April 2013, when the retail 

Stock Keeping Unit (SKU) criteria was adjusted to 2/2/12 (2 demands in at least 2 

months of the past 12 months) from 4/2/12 (4 demands in at least 2 months of the past 12 

months); and in August 2013, froze outbound STOs from DLA Distribution Depot - Hill, 
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Utah (DDHU), DLA Distribution - Oklahoma City, Oklahoma (DDOO), and DLA 

Distribution Depot – Warner Robins, Georgia (DDWG) for 30 days and adjusted the 

retail SKU criteria to 2/1/12 (2 demands in at least 1 month of the past 12 months). 

Additionally, 600 items with minimum safety stock levels set to zero were increased so 

that parts could be on the shelf and $80M was invested in Inventory Policy Optimization 

(IPO). And finally, DLA implemented a change to the deactivation timeframe for retail 

SKUs – instead of deactivating when there is no demand in 12 months, the retail SKU 

deactivates when there is no demand in 24 months helping to stabilize movement of 

material and increase availability at the industrial activity contributing to a decreased 

ORT.

 DLA worked with the Navy to identify specific high demand or critical items for 

particular Navy ship classes. These items were moved forward to depots around the 

world where those Navy ships are in use. This placed the items closer to the customer in 

advance of the requirement, thus reducing wait time.

Outcome(s): Outcomes for both maintenance and OCONUS customers showed improvement or 

met goals.

 For both Navy and Air Force industrial sites, DLA’s desired outcome is to meet or 

exceed the agreed to performance levels defined by the signed performance based 

agreement (PBA) between DLA and the appropriate Military Service management 

organization. At newly implemented retail sites, meeting these goals can occur months 

after implementation while the system reacts to the new information and demand 

patterns.

o The Air Force ALC Retail Metrics are:

 Order Response Time, Goal 90%, all sites met or exceeded goal for FY14

 Material Availability, Goal 90%, all sites met or exceeded goal for FY14

 Unfilled Orders, Goal 25% reduction from 30Sep13 and no more than 15% are 

greater than 180 days old; while the ALCs overall did not meet their Unfilled 

Orders (UFO) goals for FY14, they did have an 18% reduction for the year with 

no more than 24% of UFOs greater than 180 days old. 

 Logistics Response Time (measuring support to operational customers), Goal 18.2 

days; while the ALCs did meet the target in FY14, they were not able to sustain 

performance levels at the target. End of FY14 performance, 21.5 days.

o The Navy FRC Retail Metrics are:

 Local Fill Rate is measured against the pre-IMSP baseline as follows:

 San Diego went live in June 2013 and has met or exceeded their baseline of 

62.6% for FY14.

 Jacksonville went live in October 2013 and is not yet meeting their baseline of 

82.1% but is above go live performance level. They had a setback in 

September with large volume of unplanned orders.
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 Cherry Point went live in March 2014 and is not yet meeting their baseline of 

84% but is above go live performance level.

 Material Availability Goal of 90% is not yet being met but all sites are trending 

up since implementations.

 Unfilled Orders have different goals based on the types of items, age of the 

backorders, and whether or not the backorders are actionable. The FRCs were not 

able to meet performance goals in FY14 primarily due to increases in backorders 

during implementation. During the FY, the FRCs exceeded their baseline 

performance, but did not sustain those performance levels.

 Actionable backorders for Acquisition Advice Code (AAC) “D” DLA items -

goal is a 25% reduction from baselines.

 Aged actionable backorders greater than 180 days for AAC “D” items – goal 

is not to exceed 15% of current month’s total actionable backorders.

 Unfilled Orders for 3B and 9B DLA items in support of “G” components –

goal is to reduce by 15%.

 LRT for OCONUS customers was reduced from 46 days to 40 days between FY13 and 

FY14. In particular, LRT in the Bahrain area of operations has decreased from an 

average of 36 days down to 13 days during FY14.

Key participating organizations:

 Internal to DLA:

o DLA Aviation

o DLA Land & Maritime

o DLA Troop Support

o DLA Distribution

o DLA Logistics Operations (J3)

o DLA Acquisitions (J7)

o DLA Finance (J8)

 External to DLA:

o Military Services (Air Force, Marine Corps, Navy)

POC: J34
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Goal: Improve Customer Service 

Initiative: Executive Agent (EA) for Bulk Petroleum Supply Chain Assessment (SCA) (formerly 

Readiness Assessment)

Background:

 In accordance with Department of Defense Directives (DODD) 5101.1, Department of 

Defense (DOD) Executive Agent (EA), dated 3 September 2002 EA programs are 

assessed not less than every three years to provide an effective measure of program 

governance, continued need, effectiveness and efficiency in satisfying end user 

requirements. The assessment determines how well the lead organization is fulfilling its 

strategic EA responsibilities. DOD Directive 5101.8, DOD Executive Agent (DOD EA) 

for Bulk Petroleum, dated 11 August 2004, established the DOD EA for Bulk Petroleum 

and assigned the responsibility to the Director, Defense Logistics Agency (DLA), with 

the authority to re-delegate the responsibility to DLA Energy.

 As of 2012, the Bulk Petroleum EA responsibility had never been assessed. This 

responsibility was tasked to DLA. Consequently, a core working group consisting of the 

DLA Energy EA Office and DLA Office of Operations Research and Resource Analysis 

(DORRA) was established to develop an assessment methodology and to conduct the 

assessment.

Description: The SCA collects data using a survey instrument and a comprehensive data call 

intended to evaluate the effectiveness of the supply chain. The core working group interviewed 

key stakeholders and developed a data matrix of key questions. The assessment was based on 

Joint Publication 4-03, “Joint Bulk Petroleum and Water Doctrine”, and focused upon the 

capabilities of planning, controlling, and execution. These capabilities were assessed by 

DORRA through a data call to DLA Energy EA Office, and by conducting a survey of key 

constituents of the supply chain. The survey was developed in conjunction with the U.S. Army 

Training and Doctrine Command Analysis Center at Fort Lee, Virginia (TRAC-LEE). Vovici 

software was used as the survey tool.

Outcome(s):

 DORRA produced a draft report, “15-RO-BC001, Department of Defense (DOD) 

Executive Agent (EA) for Bulk Petroleum Supply Chain Assessment (SCA) 2014 

Analysis, 04 August 2014” documenting the methodology, results, conclusions, and 

recommendations. A key finding was that the role of the EA Office within DLA EnergyQEX is vital and should be continued.

 The DORRA report resulted in capturing a methodology and lessons learned for future 

supply chain EA assessments.

Key participating organizations:

 Internal to DLA:
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o DLA HQ J3 (Support and DORRA)

o DLA Energy

 External to DLA:

o Joint Staff, J4

o Office of the Secretary of Defense (OSD) Operational Energy Plans and Programs 

(OEPP)

o NAVSUP Energy

o Army Petroleum Center

o Air Force Petroleum Agency

o Combatant Commands

POCs: J34 and DORRA
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Goal: Improve Customer Service 

Initiative: Joint Contingency Acquisition Support Office (JCASO) and Operational Contract 

Support (OCS)

Background: JCASO was established under section 854, National Defense Authorization Act 

(NDAA) 2007. This federal statute provided Department of Defense (DOD) the authority to 

establish the) JCASO. The Deputy Assistant Secretary for Defense (DASD) Program Support 

institutionalized the JCASO to perform program management of OCS policy and doctrine, 

provide operational synchronization of theater-related contracting support planning, and help 

ensure Combatant Commands (CCMD) have a preplanned organizational approach to 

contingency acquisition.

Description: JCASO will, when requested, assist the Combatant Commanders (CCDR) 

implement and manage joint Operational Contract Support (OCS) Programs within the Area of 

Responsibility (AOR) and/or Joint Operating Area (JOA) during peacetime, contingency 

operations, combat and post-conflict operations. JCASO helps the CCDR implement and 

manage OCS by enabling joint OCS planning and program management (PgM). JCASO enables 

joint OCS planning and program management by organizing, staffing, leading, controlling and 

managing the joint OCS efforts.

Outcomes: JCASO Mission Support Team (MST) Personnel achieved and maintained 100% 

deployability through FY14. MST Personnel also maintained 100% deployable readiness 

through their respective Military Service medical web pages which was reported monthly via the 

Operations Director to the JCASO Director. Additionally, JCASO MST Personnel attended all 

required exercises and met all mission requirements in FY14 while never missing an operation 

commitment due to failed medical readiness.

JCASO participated in numerous exercises and supported operational efforts throughout FY14 as 

listed below.

 Exercise Participation

o Key Resolve- KEY RESOLVE 14 is a theater-level Computer Assisted Exercises 

(CAX) oriented on maneuver and operational level sustainment. The goal of KR14 is 

to strengthen alliance with the Republic of Korea, enhance training of Combined 

Forces Command and United States (U.S.) Forces Korea (USFK), and attain Initial 

Operational Capability for Republic of Korea Joint Forces Command and the Future 

Command Structure. During the two week long exercise, the MST, responded to 

exercise generated Master Scenario Events Lists (MSEL), participated in the USFK 

daily Battle Update Briefing (BUB) and Defense Logistics Agency (DLA) Energy 

daily update. The MST Personnel developed a Contractor Management Plan, 

reviewed requirement packages while directing and coordinating two Joint 

Requirement Review Boards (JRRBs) for the USFK J4.

o Panamax- PANAMAX 14 is an unclassified exercise that enhances regional 

relationships and exercises multi-national operational capability to defend the Panama 
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Canal against threats to its free and unimpeded operation. The exercise reinforces 

strategic communication themes by stressing common interests, cooperative 

solutions, and long-term security aimed at ensuring prosperity and democratic ideals. 

JCASO MST was dispersed to the Ground Component Command (GCC), Naval 

Component (NAVSOUTH), and the Army Component (ARSOUTH). Team 

members received and executed exercise MSEL injects at the GCC, created and 

published a Joint Task Force (JTF) JRRB Fragmentary Order (FRAGO), and 

facilitated JRRBs at U.S. Army South (ARSOUTH).

o Ulchi Freedom Guardian- (UFG) 14 is a Chairman of the Joint Chiefs of Staff 

sponsored, U.S. Pacific Command (USPACOM) directed, U.S. Forces Korea 

conducted, Joint Staff (JS) J7 South supported classified OPLAN oriented exercise. 

UFG 14 is a United States (U.S.)-Republic of Korea (ROK) Command 

(USKORCOM) Post Exercise. The goal of UFG 14 is to train U.S. Korea Command, 

Provisional, staff on developing plans, procedures, and concepts for the defense of the 

ROK and enhance coordination between the ROK government and Combined Forces 

Command during the early portion of the conflict and the transition to war. UFG is 

the Combined Forces Commander’s premier annual exercise focusing on transition to 

USKORCOM’s supporting role. The JCASO MST received and executed exercise 

injects, created and published a JRRB FRAGO, facilitated the JRRB, and participated 

in the 19th Expeditionary Sustainment Command Combat Update Briefs.

o 2014 Operational Contract Support Joint Exercise (OCSJX-14). The 412th 

Contracting Support Brigade (CSB) facilitated the first-ever Office of the Secretary of 

Defense sponsored OCS joint exercise. The exercise took place 7 through 31 January, 

2014 at the Fort Bliss, Texas Mission Command Training Center (MCTC). The 

exercise was based on the U.S. Northern Command (USNORTHCOM) response to a 

complex catastrophe (New Madrid Fault earthquake), and involved U.S. military, 

civilians, contractors, other federal agencies, and coalition forces in a Domestic 

Support of Civil Authorities (DSCA) scenario. The intent of OCSJX-14 was to train 

and assess OCS capabilities for USNORTHCOM, U.S. Army North (ARNORTH) 

and other Military Service components using the OCS Joint Metrics and Readiness 

(JMR) Guide and the established training objectives. JCASO MST provided a 

Logistics Planner to embed with the Doctrine Cell to review and recommend updates 

to existing and emerging OCS doctrine contributing to the final version of JP 4-10 

(Joint Publication-Operational Contract Support).

o The Mission Support Team worked in the ARNORTH OCS Cell in direct support of 

the ARNORTH G4, while supporting the NORTHCOM J4 Operational Contract 

Support Integration Cell (OCSIC). The team developed a Common Operating Picture 

(COP, an Analysis of the Operational Environment (AOE), published a JRRB 

FRAGO, facilitated two JRRBs, responded to exercise injects and requests for 

information, and assisted the requirements owners to draft requirements before 
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submitting through the JRRB. The MST synchronized and coordinated OCS amongst 

the three local Task Forces, Theater Sustainment Command, and the designated 

Senior Contracting Officials (and future N-JTSCC) across the JOA. 

o Exercise Unified Endeavour: The UE 14-1 Mission Rehearsal Exercise (MRX) 

trained, rehearsed, and contributed to the overall preparation of primary Headquarters 

(HQ) for units that will be assigned to International Security Assistance Force 

(ISAF), ISAF Joint Command (IJC) and Regional Command-East (RC-E). It is a 

multi-tier command post exercise (CAX/CPX). A 4 person MST participated in the 

exercise as the OCS Higher Control (HICON)/response cell for UE. Key activities 

included OCS storylines that included multi-national participation and OCS storyline 

injects to ensure participants understood OCS processes in place to support the theatre 

of Afghanistan. 

o Exercise Internal Union (IU): Central Command (CENTCOM) staff exercise with 

multi-national participation. JCASO provided two planners to participate in the 

planning and MSEL events. Exercise execution was cancelled. 

o Operational Contract Support Joint Exercise (OCSJX) 15: A three person MST 

attended the Concept Development and Experimentation (CDE) and follow-on 

planning events and helped write the OCS MSELs for exercise execution in 2015. 

JCASO will support the exercise with a three-man HICON/response cell along with a 

JCASO MST as a part of the training audience.

 Annex W Development: JCASO Planners completed six Tier III and one Tier IV Annex 

W for Contingency Plans across three Combatant Commands.

 Operational Support

o U.S. Army Central (ARCENT) Operational Contract Support Integration Cell 

(OCSIC). Training/Development-JCASO deployed four personnel from MSTKuwait for 60 days to observe, train, and support ARCENT OCS Integration Cell. 

The team drafted four Standard Operating Procedures (SOP) and handbooks, 

developed a Task Organization for the OCS Cell and assisted with the development 

of an Annex W. They also observed the JRRB process, and made recommendations 

on changes to improve the process. The team stood-up an OCS Working Group of all 

the major units and components in the CENTCOM AOR to synchronize and 

coordinate OCS activities under ARCENTs purview. The team also interviewed 

every person or activity that had a stake in OCS in Kuwait, to include 408th CSB 

personnel, JRRB voting members, and the major subordinate units supporting 

ARCENT in the AOR to help improve OCS activities and develop OCS Communities 

of Interest in the AOR.

o CENTCOM Forces (CF)-J: JCASO deployed a three person MST to Jordan in 

support of CF-J and to stand-up an OCSIC. The team prepared an OCSIC SOP, 

updated the Board, Bureaus, Cells, Centers and Working Groups (B2C2WGs) by 

staffing an updated FRAGO formalizing the establishment of the Joint Requirements 
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Review Board (JRRB) and OCSIC working group processes, developed a draft 

Synchronized Pre-deployment and Operational Tracker (SPOT) policy paragraph for 

insertion into contracts supporting CF-J and linked the OCSIC and J1 staff into 

requisite SPOT training in support of contractor accountability. The team provided 

advice as required on JRRB packets and packets that were reviewed by the Coalition 

Acquisition Review Board (CARB) and/or SUPER CARB process. The team hosted 

a week-long contract working group and established twelve ready on-the-shelf 

Performance Work Statements (PWS) that can be used as needed in the future. The 

team collaborated with DLA troop support to identify two approved local sources of 

bottled water.

o Operation United Assistance (OUA): response to the Ebola crisis in West Africa, 

JCASO deployed 2 Contingency Contracting Officers to Liberia to support 

contracting activities, 1 5-person MST to HQ U.S. Africa Command, (AFRICOM) 

and 1 5-person MST to U.S. Army Africa (USARAF). The MSTs established SPOT 

and Theater Business Clearance policies in support of the humanitarian mission, 

establishing B2C2WGs including the JRRB and JRVB for requirements review, and 

the charters for the OUA Work Group (WG) and JRRB at the HQ AFRICOM level. 

The teams also participated in the AFRIOCOM J4 combatant command (COCOM) 

Logistics Procurement Board and briefed updates on the OCS and worked closely 

with Interagency representatives from United States Agency for International 

Development (USAID)// Office of U.S. Foreign Disaster Assistance (OFDA) to 

support the mission. The team assisted the embedded planners with the drafting of 

the Contractor Management Plan (CMP) in support of OUA as appendix 2 to Annex 

W.

Key participating organizations: 

 Internal to DLA:

 DLA Logistics Operations (J32 – JCASO and J31- Joint Logistics Operations Center 

(JLOC))

 DLA Procurement (J7)

 External to DLA:

o Military Services and their Combatant Commands

o USAID

o Numerous North Atlantic Treaty Organization (NATO) Countries

POC: J32
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Goal: Improve Customer Service 

Initiative: Enhance Department of Defense (DOD) and Whole of Government (WoG) 

capabilities

Background: Joint Contracting and Support Office (JCASO) is responsible for enabling the 

institutionalization, synchronization, and integration of Operational Contract Support (OCS) for 

DoD, including WoG engagement.

Description: To assist with institutionalizing OCS throughout DOD/WoG, JCASO focused on 

three areas:

 DOD OCS Action Plan 2014-2017. JCASO is a member of the Working Group (WG) 

that meets monthly to review and update the progress of tasks in the OCS Action Plan. 

The Action Plan consists of 10 OCS capability gaps and 176 identified tasks assigned to 

various DOD organizations to close the gaps.

 Joint Exercise Saber Guardian 14 (SG14) and Operation United Assistance (OUA). As 

part of its responsibilities to enable OCS at the combatant commands, JCASO 

participates in joint exercises real-world operations. For the United States (U.S.) 

European Command’s (EUCOM) Exercise Saber Guardian 2014, JCASO provided onsite OCS support to the Joint Task Force (JTF) in Bulgaria and also assisted in building 

Unified Action/contingency program management (CPM), working with other 

governmental agencies, host and partner nations, international organizations, and the 

private sector via Public Private Partnerships. In the U.S. Agency for International 

Development (USAID)-led Operation United Assistance (OUA), JCASO Mission 

Support Teams traveled to U.S. Africa Command (AFRICOM) and its forward-based 

Joint Force Command to help ensure an organizational approach to contingency 

acquisition in accordance with DOD policy and joint doctrine. JCASO assisted in 

establishing the Joint Requirements Review Board to prioritize USAID-validated 

requirements in the West Africa operational area.

 Strategic Engagements. JCASO engages with various DOD and WoG organizations to 

further institutionalize, synchronize, and integrate OCS. Specific ongoing engagements 

include:

o Department of State (DoS)/DOD Afghanistan Executive Steering Group (twice a 

month)

o DoS/DoD Iraq Coordination Working Group (weekly)

o DOD OCS Functional Capabilities Integration Board (FCIB) (Quarterly) and working 

groups (WG)

Outcome(s): During the year, JCASO: 
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 Strengthened relationships throughout DOD and WoG with regular and consistent 

interactions with OCS partners in the Office of the Secretary of Defense (OSD), Joint 

Staff (JS), the Military Services, and other DOD Components.

 Increased its communication, collaboration, and interagency focus with a dedicated 

Interagency Specialist and a Liaison to the JS J4 and OSD. These actions have resulted 

in increased information sharing and inclusion in strategic initiatives led by OSD and JS, 

and greater awareness of OCS capabilities and support throughout the combatant 

commands and Military Service components.

 Supported U.S. Central Command (CENTCOM) on Central Asia States on local 

procurement efforts and hosted a “lessons learned” meeting of the CENTCOM Theater 

Engagement Team.

 Launched a local procurement initiative with AFRICOM as well as establishing an 

Executive Level Steering Group for AFRICOM, hosting a Business Development Event 

in Niger and participating in a vendor expo in Djibouti.

Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations (J32 - JCASO)

 External to DLA:

o Office of the Deputy Assistant Secretary of Defense (Program Support) 

[ODASD(PS)]

o Joint Staff J4 Operational Contract Support and Services Division (JS J4 OCSSD)

o Department of State (DoS)

o USAID

POC: J32
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Goal: Improve Customer Service 

Initiative: Enhance DLA Contingency Contracting Capabilities

Background: The Joint Contracting and Support Office (JCASO) Contingency Contracting 

Office (CCO) extends and expands the Defense Logistics Agency (DLA) Supply Chain and 

Military Service contracting capabilities. It focuses on humanitarian assistance and disaster 

response support in austere environments and synchronizes DLA contracting support with 

whole-of-government (WoG) partners.

Description: JCASO is responsible for enhancing DLA contingency contracting capabilities by 

developing a CCO that is fully trained and ready to deploy as well as able to synchronize and 

leverage other Department of Defense (DOD) and interagency capabilities. Additionally, 

JCASO must develop and expand more responsive contract vehicles to support multiple 

government agencies and contingency operations.

Outcome(s): The CCO reached Full Operating Capability on 1 January 2014 and was able to 

deploy CCO teams within 72 hours of notification. Additionally, the CCO continues to work 

with other DOD agencies to expand the contracting support. Examples include:

 Operation United Assistance (Ebola Response). In September 2014, the team’s 

contingency contracting officers, Michaella Olson and Craig Hill, deployed to Monrovia, 

Liberia and Dakar, Senegal in support of Operation United Assistance. They made over 

$1 million in purchases to ensure the success of the initial phases of the operation. The 

remaining team members provided reach-back support. Although not trained to do so, 

Craig Hill was called upon to serve as the DLA Support Team (DST) Commander in 

Senegal for a short period of time. Finally, a JCASO Procurement Analyst, Patricia 

Babida, deployed forward to Army Africa Headquarters in Vicenza, Italy to help build an 

Operational Contract Support Integration Cell (OCSIC), ensuring the United States (U.S.) 

Africa Command (AFRICOM) had an organizational approach to contingency 

acquisition in accordance with DOD policy and joint doctrine. She assisted in 

establishing the Joint Requirements Review Board to validate and prioritize DOD 

requirements in the West Africa operational area. She drafted the outline for an 

AFRICOM Instruction explaining the responsibilities and key tenets of Lead Military 

Service for Contracting Coordination for U.S. Army Africa (USARAF), and its 

associated Army Senior Contracting Official, the Commander of the 414th Contracting 

Support Brigade. She also served as an effective liaison between the DLA Acquisition 

Directorate, DLA Acquisition (J7), and the forward-based DLA CCOs in Liberia and 

Senegal.

 CCO Support to Special Operations Command (SOCOM). In support of the Campaign 

Plan for Global Special Operations and Theater Special Operation Commands (T-SOCs), 

JCASO was asked to develop a plan of action to expand CCO capability to support U.S. 

Special Operations Command (SOCOM). With the buy-in of the DLA Director to 
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provide this support, the team is preparing to deploy two internal CCO personnel to 

SOCOM Headquarters in Tampa, then to Special Operations Command-Africa (SOCAF) 

in Stuttgart Germany for follow-on assignments. The team is also working with various 

and appropriate DLA Headquarters staff elements to organize an on-call contracting 

cadre of 1102-qualified professionals to meet future DLA contracting requirements.

 Local Procurement. CAPT Jennifer Lednicky assumed the leadership role of the Local 

Procurement team, which saw a major change in focus. With the ongoing U.S. retrograde 

from Afghanistan, DLA local procurement in Central Asia and Afghanistan dropped to 

$1.5 billion. Local procurement in Central Asia declined as the year progressed due to 

the reduction of forces in Afghanistan. The local procurement team hosted closeout 

business forums early in the year in Uzbekistan, Kazakhstan, and Kyrgyzstan. 

Additionally, the team planned, coordinated and hosted a “lessons learned” meeting of 

the U.S. Central Command (CENTCOM) Theater Engagement Team. In April, working 

with the Latvian embassy staff, the team hosted a business forum for the Latvian Prime 

Minister, and a high-level business delegation at the Latvian Embassy. Mid-year, the 

local procurement team shifted focus from CENTCOM’s local procurement initiative to 

launch a new local procurement initiative in support of AFRICOM. Coordinating with 

AFRICOM, the team planned and executed the inaugural meeting of the Executive Level 

Steering Group, which included representatives from many interagency partners. In 

August, the team travelled to Niger and hosted a Business Development Event in support 

of the new initiative, which was attended by over 120 local vendors. The team also made 

an initial visit to Djibouti to meet with the various contracting entities and participate in a 

vendor expo.

Key participating organizations: 

 Internal to DLA:

o DLA Logistics Operations (J32 - JCASO)

o DLA Acquisition (J7)

 External to DLA:

o U.S. CENTCOM

o U.S. SOCOM

o U.S. AFRICOM

o U.S. Army

o Department of State (DoS)

o U.S. Agency for International Development (USAID)

POC: J32
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Goal: Improve Customer Service 

Initiative: Executive Agent (EA) for Medical Materiel Readiness Assessment (RA) Definition 

and Execution 

Background: Department of Defense Directives (DODD) 5101.1, Department of Defense 

(DOD) Executive Agent, defines Executive Agent responsibilities, and DODD 5101.9, DOD 

Executive Agent for Medical Materiel, assigns the Director, Defense Logistics Agency (DLA) as 

the EA for CLVIIIA, medical materiel. The supply chain assessment is part of the 

responsibilities assigned to DLA as the EA for CLVIIIA.

Description: The supply chain assessment began with a review of the policies to ensure proper 

alignment of responsibilities. DODD 5101.9 was outdated and required revision due the recent 

stand-up of the Defense Health Agency. The document was reviewed by all Military Services 

and reviewed/approved through the Defense Medical Logistics Supply Chain Council, the 

General Officer/Flag Officer level CLVIIIA governance council.

Outcome(s): Initial efforts included redefining the readiness assessment. These efforts resulted 

in changing the terminology to a supply chain assessment because the focus was on the supply 

chain rather than a readiness assessment. A successful initial coordination and update to DODD 

5101.9 was forwarded to the Washington Headquarters Service staffing process for coordination 

and approval. The initial supply chain assessment survey was sent to each of the Military 

Services, joint staff, and combatant commands. Responses were compiled and the data will be 

used to assess performance and identify areas where improvements can be made. The summary 

of the survey responses is projected to be reported to the governance committee in Calendar Year 

(CY)15. Contact with DLA strategic materials team was made to research methods to identify 

risks and vulnerabilities within the CL VIIIA supply chain. Efforts will continue in this area into 

FY15.

Key participating organizations:

 Internal to DLA:

o HQ Logistics Operations (J3)

o DLA Troop Support (Medical)

 External to DLA:

o Chief, Defense Health Agency Medical Logistics Division

o Joint Staff, J4 Medical Logistics Representative

o Combatant Command Medical Logisticians

o Senior Medical Logistics Representatives from each Military Service

POC: J34
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Goal: Achieve Audit Readiness 

Initiative: Order-to-Cash and Plan-to-Stock (Wave 3 Financial Improvement Audit Readiness 

(FIAR) Existence and Completeness (E&C) FY 14 Assertion and Order to Cash (O2C) FY 15 

Assertion)

Background: In October 2011, the Secretary of Defense issued a directive that set a compressed 

timeline for achieving audit readiness for the Department of Defense (DOD). Congress 

mandated full DOD auditability for all DOD financial statements by 2017. To prepare for a full 

financial audit by 2017, it will be critical that the Defense Logistics Agency develop complete 

and detailed supporting implementation plans. DLA created a management structure that 

includes both the Plan-to-Stock (P2S) and Order-to-Cash (O2C) Business Cycles; these two 

cycles are managed by the J3 Enterprise Business Cycle Owner (EBCO). The J3 EBCO is 

charged with ensuring both the P2S and O2C Business Cycles are fully auditable by 1 October 

2015. 

Description:

 The scope of the O2C business cycle team includes all processes, controls, and financial 

activities associated with DLA sales order processing; DLA billing and collecting cash 

from customers; and management of customer DOD Address Activity Codes (DODAAC) 

information.

 The scope of P2S includes all processes, controls, and financial activities associated with 

DLA requirements determination; receiving, storing, physical inventory control, 

distribution and issuing of inventory; and disposition of inventory.

o P2S is subdivided into Energy (generally supply class III), Non-Energy (generally 

supply classes I, II, IV, VIII, and IX) and inventory valuation. 

Outcome(s): On September 30, 2014, the J3 EBCO asserted that the P2S Inventory Business 

Cycle is audit ready and able to prove the E&C, Rights and Obligations (R&O) and Presentation 

and Disclosure of over $20B in combined Energy, Distribution and Vendor/Military Service 

Managed Inventory. The J3 EBCO, with support from the P2S and O2C Business Cycles 

Teams, are making final preparations to assert the remaining 24 end-to-end processes including 

O2C sales order and P2S valuation processes by 1 October 2015.

Key participating organizations:

 Internal to DLA:

o DLA Distribution

o DLA Troop Support

o DLA Land and Maritime

o DLA Aviation

o DLA Energy

o DLA Installation Support

o DLA Logistics Operations (J3)
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o DLA Information Operations (J6)

o DLA Acquisition Operations (J7)

o DLA Financial Operations (J8)

 External to DLA:

o Office of Secretary of Defense, Comptroller (Financial Improvement Audit 

Readiness) 

o Assistant Secretary of Defense for Logistics and Materiel Readiness 

ASD(L&MR)

o Military Services (Army, Navy, Air Force, Marine Corps)

POC: J34
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Goal: Additional Key J3 Initiatives

Initiative: Department of Defense Manuals (DODM) 1338.10, DOD Food Service Program 

(DFSP)

Background:

 The DoDM 1338.10, DFSP is applicable to Office of the Secretary of Defense (OSD), 

Military Departments, the Office of the Chairman of the Joint Chiefs of Staff and the 

Joint Staff, the Combatant Commands, the Office of the Inspector General of the 

Department of Defense (DOD), the Defense Agencies, and the DoD Field Activities, 

collectively known as DoD Components. The DOD Components operate appropriated 

military personnel feeding and dining facilities during peacetime and wartime under 

Military subsistence-in-kind appropriation in accordance with the DoD Financial 

Management Regulations. The DFSP covers appropriated food service operations, 

whether performed contractually or in house. The operations includes related research 

development; nutrition and nutrition stands; acquisition of food, supplies, and equipment; 

menu and recipe planning; meal preparation and service; compliance with “custom 

inspections,” for in-flight meals on internal flights; sanitation; design and layout of 

facilities; personnel; training; accounting and reporting; and consumer acceptability.

 Consistent with the authority, direction, and control of the Office of the Under Secretary 

of Defense for Acquisition, Technology, and Logistics (USD (AT&L) and Assistant 

Secretary of Defense for Logistics and the Office of the Materiel Readiness 

(ASD(L&MR)) overall guidance of the DFSP is provided through the Joint Subsistence 

Policy Board, chaired by the DLA.

Description: In March 2011, the Defense Logistics Agency (DLA), as the Executive Agent for 

Subsistence, began collaborating with all participating organizations to finalize and publish the 

revision to the DOD Manual 1338.10.

Outcome(s): The Manual previously dated, March 23, 1990 required a major procedural rewrite 

to include complete formatting changes. The DoDM 1338.10, DFSP was signed on November 

20, 2014 and published on the DOD issuances website on December 2, 2014.

Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations (J3)

o DLA Troop Support – Subsistence

 External to DLA:

o OSD Supply Chain Integration

o Military Services (Army, Navy, Marines, Air Force) Food Service Managers

o OSD Military Community and Family Policy
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o DOD Nutrition Committee

o United States Army Natick Soldier Systems Center

POC: J34
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Goal: Additional Key J3 Initiatives

Initiative: DLA Headquarters Healthy Base Initiative (HBI)

Background: In January 2013, the Defense Logistics Agency’s Headquarters Complex (HQC) 

was selected by the Office of the Secretary of Defense (OSD) for Military Community and 

Family Policy (MC&FP) as one of 14 pilot sites to participate in the HBI. The demonstration 

project, part of the Defense Department’s Operation Live Well (OLW), was aimed at making 

healthy living the easy choice and the social norm. OLW supports President Obama’s 2011 

National Prevention Strategy. It was designed to create an environment on military installations 

that encourages a healthy lifestyle through a set of programs derived from a wide range of best 

practices within and outside the Department of Defense (DOD). OSD (MC&FP) carefully 

selected 14 installations to participate in HBI based on leadership committed to an active, 

healthy lifestyle; adequate dining and fitness facilities; and, sufficient infrastructure to support 

innovation. The OSD HBI team worked with the HQC HBI team to establish programs and 

assessment practices to support the goals of improving nutritional choices, increasing physical 

activity, and reducing obesity. Although, the focus of the HQC HBI was on approximately 2,200 

DLA civilian and military personnel, the HQC tenant organizations (approximately 3,000 

personnel) were active participants in the HBI activities.

Description: 

 The DOD HBI was a one-year demonstration effort which began with a DLA HQ HBI 

kick-off on May 15, 2013. This event featured remarks from Dr. Jonathan Woodson, the 

Assistant Secretary of Defense (Health Affairs) and Director of TRICARE Management 

Activity and Mr. Charles E. Milam, Deputy Assistant Secretary of Defense for Military 

Community and Family Policy. They spoke on the importance of health in the military 

community and the background of HBI and OLW. The keynote speaker was author and 

television personality Montel Williams, who motivated the attendees by sharing his 

personal journey to health and fitness in the midst of serious illness and he charged the 

audience to take a proactive role in their health.

 HQC established a committee to oversee HBI, its programs and track the progress of the 

pilot. Army Major General Kenneth Dowd, director, DLA Logistics Operations, served 

as the senior sponsor of HBI at DLA HQC. A group of subject matter experts developed 

and implemented HBI from May 2013 until May 2014. The committee co-chairs, DLA 

Logistics Operations and DLA Installation Support, coordinated with OSD-OLW, 

providing updates and metrics on a bi-monthly basis.

o Farmer’s Market: DLA HQC’s first HBI program was the McNamara Farmers’ 

Market. The market ran weekly from May to November 2013. It returned in May 

2014. Three vendors participated in the 2013 program: C&T Produce, Great Harvest 

Bread Company, and Oak Spring Dairy. In 2014, two original vendors (C&T 

Produce and Great Harvest Bread Company) remained and two new vendors (Briggs 

Produce and Gypsy Hill Foods) were added. The Farmers’ Market provides DLA 
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187

HQC personnel a convenient avenue to purchase fresh produce, breads and other 

healthy food items during the workday.

o Smarter Food Movement: DLA HQC launched the Smarter Food Movement in Fall 

2013 with the goal of promoting better-for-you foods. Healthier food items were 

placed up front in the cafeteria and made more obvious and accessible to HQC 

employees. Using research conducted by the Cornell University Food Lab, healthier 

foods were prominently placed, while less healthy choices moved to less accessible 

locations. Cornell’s study of behavioral economics yielded insights on ways to 

encourage people to make more nutritious food choices.

o Go for Green (GfG): GfG is a nutritional labeling system to help DLA HQC 

employees make informed dietary decisions in the cafeteria. An OSD (MC&FP) 

dietician worked with Sodexo to establish the GfG criteria. The program began after 

the completion of the cafeteria improvements. The labeling system provides DLA 

HQC employees with a visual cue for healthier food choices by using color-coding to 

indicate the degree of nutrition of foods served. This helps create and foster a culture 

of awareness by providing a quick and easy visual prompt for employees to make 

more informed eating choices.

o Stairwell to Health: Stairwell to Health began in June 2013. The program 

encouraged DLA HQC employees to use the stairs instead of the elevator. Posters 

placed near and inside elevators throughout DLA HQC reminded employees that 

using the stairs can contribute to weight loss and a healthier body. To further support 

the program, the HBI team partnered with the Fitness Center and the HQC Fitness 

Council to sponsor fun and friendly stairwell challenges. Stairway to Health was very 

popular and increased awareness of ways to incorporate physical activity into daily 

routines in a simple, yet effective, manner.

o Bike Share Program: An exercise-related program allowed the addition of bicycles to 

the fitness center. The DLA HBI team collaborated on a bike safety policy issued 

enterprise-wide as a Directive Type Memorandum in December 2013. In June 2013 

DLA HQC Morale, Welfare and Recreation (MWR) purchased 15 bikes in a 

combination of types to allow a road, trail or mixed riding experience. The bikes are 

easily accessible for employees; bike helmets and locks are also available. 

Employees are required to read safety information and sign a log before checking out 

a bike. The goal of the program is to increase options for physical activity.

o Other notable activities include: DLA HQC MWR sponsored Musketeer Challenge, a 

three-month fitness challenge and several 5K Walk/Run events. The DLA HQC 

Fitness Council sponsored events such as Climb Everest challenge and trail mix bar. 

A DLA Top Chef Culinary Competition conducted in May 2014 marked the official 

end of the one-year HBI pilot at DLA HQC.

 The success of DLA HBI is attributed to support from key leadership, the crossfunctional DLA HBI Team, Strategic Communications, and HQC MWR.
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o Support from key leadership was critical to the program. DLA Director, Navy Vice 

Admiral Mark Harnitchek, was vital to the success of HBI at DLA HQC. His strong 

support for a healthy lifestyle and his willingness to shape DLA policies and 

programs contributed to the health and well-being of DLA employees and was a 

major reason HQC was chosen for the pilot. Major General Dowd maintained a blog 

on the DLA HBI program. Both senior leaders made a point of discussing HBI at 

their Town Hall forums.

o Strategic Communications was a crucial component. DLA Public Affairs developed 

a strategic communications campaign for HBI. Focused on modern, inventive 

delivery systems, combined with smart messaging and eye-catching graphics, the HBI 

campaign promoted the HBI principles for HQC occupants to participate in program 

events. The office published 19 HBI-related articles from May 2013 through July 

2014 which were also shared across various DLA social media platforms such as 

Facebook, Twitter, Google+, Vine, Polar and Storify. DLA Public Affairs and DLA 

Installation Support collaborated on a short video highlighting the personal successes 

of program participants. The DLA Public Affairs graphics team produced posters 

promoting HBI programs. During the holidays, DLA websites featured tips on 

healthy alternatives to traditional holiday foods. Finally, the July-August 2014 issue 

of Loglines, DLA’s flagship magazine, featured an article highlighting HBI programs 

and success stories at DLA HQC and across the enterprise.

o HQC MWR was an essential partner in HBI, initiating or co-sponsoring many 

programs. Several MWR representatives participated on the HBI committee, helped 

coordinate efforts between the two programs and assisted in increasing awareness of 

HBI activities taking place at HQC. The MWR office was invaluable in helping HBI 

reach its goals.

o DLA HBI Team collaborated on countless events and provided a forum for oversight, 

communication, and coordination of programs that fit the culture and needs of 

personnel at the HQC. The Team focused on the key initiatives but worked to 

implement other worthwhile activities. Through the team’s efforts, DLA HQC 

employees gained access to information and resources to assist and encourage them in 

choosing a healthier and more active lifestyle, both at work and at home.

Outcomes: As the first DOD site to implement HBI, HQC set the program standard, establishing 

a precedent for future sites. DLA HQC established sustainable HBI programs with solid 

foundations including multiple activities and events. Overall, HBI made a tremendous impact on 

the DLA HQC workforce, positively influencing multiple health behaviors.

 In a September 2013 HBI survey, more than 75% of respondents indicated they 

participated in HBI programs and that the program was successful in helping to achieve 

positive health benefits. Weight loss, increased energy, improved morale, increased 
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awareness of healthy choices, and increased mental clarity during the work day represent 

only a few of the ways that HBI tangibly impacted the workforce.

 The Culture Climate Survey conducted in April/May 2014 included several questions 

about HBI and related DLA Fitness and Nutrition programs. The survey indicated that 

staff overwhelmingly valued the HBI and nutrition and fitness related programs offered 

at DLA HQ. 

o Some metrics were developed to measure the success of the HBI program. The 

Farmer’s Market success was measured by the Vendor Sales meeting or exceeding a 

minimum dollar threshold set by the vendors. The vendors needed to have sales at a 

certain dollar amount to make it worthwhile to make participation in the program 

sustainable. The Vendor Sales continually exceeded the threshold. Another metric 

measured usage and repeat usage of the Bike Share program. 

o HBI’s success remains a permanent part of HQC. The program originated in DLA 

Logistics Operations, but transitioned to DLA Installation Support in June 2014 

under the HQC Health and Fitness Council. The council is expected to use HBI team 

experience to ensure continuity and consistency in the health and wellness efforts as 

the HQC continues to develop and enhance OLW at DLA. The DOD HBI will 

transition to the Operation Live Well Campaign in the future.

Key participating organizations:

 Internal to DLA:

o DLA HQ (Logistics Operations (J3), Strategic Plans and Policy (J5), Financial 

Operations (J6), Acquisition Operations (J7))

o DLA Protocol, DS

o Public Affairs

o DLA Energy

o DLA Troop Support

 External to DLA:

o OSD Military Community and Family Policy

o Defense Health Headquarters 

o Military Services

POC: J34
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Goal: Additional Key J3 Initiatives

Initiative: Rewrite of Department of Defense Directives (DODD) 5101.12, Department of 

Defense (DOD) Executive Agent (DOD EA) for Construction/Barrier Materiel 

Background: DOD Directive 5101.1 “DOD Executive Agent” dated September 3, 2002, 

provides a DoD-wide definition of DoD Executive Agent. It provides DOD approval authority 

for assigning DOD Executive Agent responsibilities, functions, and authorities within DOD. 

DODD 5101.12 “DOD Executive Agent (DOD EA) for Construction/Barrier Materiel dated July 

16, 2005, prescribes authority, policy, and responsibilities for the management of 

Construction/Barrier (Class IV) commodity across the spectrum of military operations. It 

designates the Director, Defense Logistics Agency as the DOD EA for Construction/Barrier 

Materiel with responsibilities for planning, procuring, managing and supplying construction/ 

barrier materiel required by the DOD Components. DODD 5101.12 required revision to reflect 

requirements of the Defense Acquisition Regulation.

Description: DODD 5101.12 prescribes authority, policy, and responsibilities for the 

management of construction/barrier materiel (Class IV) commodity in peacetime and across the 

spectrum of military operations. It identifies the roles and responsibilities of the DOD EA for 

Construction/Barrier Materiel and its relationship to the Military Departments and other 

applicable agencies worldwide. The major update to this Directive institutes a much broader 

definition of Class IV based on the DLA Integrated Materiel Manager responsibilities in the 

Defense Acquisition Regulation and how the private sector defines Class IV materiel and 

products.

Outcome(s): The revised DODD 5101.12 is currently going through the final review process. 

Final approval expected in January 2015.

Key participating organizations:

 Internal to DLA:

o DLA Troop Support

o DLA Distribution

o DLA Logistics Operations (J3)

o DLA Joint Logistics Operations Center (JLOC) (J31)

 External to DLA:

o Deputy Under Secretary of Defense (Supply Chain Integration)(DUSD/SCI)

o Joint Staff Chief of Engineers (JCOE)

o United States Transportation Command (USTRANSCOM)

o Military Services (Army, Navy, Air Force, Marine Corps)

o United States Army Corps of Engineers (USACE)

POC: J34
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Goal: Additional Key J3 Initiatives

Initiative: Write/Create Department of Defense (DOD) Manual 5101.12, DOD Executive Agent 

(EA) for Construction and Barrier Materiel

Background: DODD 5101.12 “DoD Executive Agent (DOD EA) for Construction/Barrier 

Materiel dated July 16, 2005, prescribes authority, policy, and responsibilities for the 

management of Construction/Barrier (Class IV) commodity across the spectrum of military 

operations. It identifies the roles and responsibilities of the DOD EA for Construction/Barrier 

Materiel and its relationship to the Military Departments and other applicable agencies 

worldwide. It designates the Director, Defense Logistics Agency (DLA) as the DOD EA for 

Construction/Barrier Materiel. The creation of a DOD Manual to supplement DoDD 5101.12 

was required to provide unique supply chain management requirements for Class IV.

Description: DODM 5101.12 will provide unique supply chain management requirements for 

Class IV. When complete, the manual will consist of seven sections that include Acquisition, 

Planning, Standardization/Cataloging, Metrics, Distribution, Asset Visibility and Organizational 

Oversight/Governance.

Outcome(s): Three Sections (Planning, Standardization/Cataloging and Metrics) have been 

completed and forwarded to the Office of the Secretary of Defense Supply Chain Integration 

(OSD (SCI)) for review and approval. The CL IV Advisory Group Writing Team is continuing 

to work on completing the remaining 4 sections. The tem anticipates completing the manual in 

4

th Quarter FY 15.

Key participating organizations:

 Internal to DLA:

o DLA Troop Support

o DLA Distribution

o DLA Logistics Operations (J3)

 External to DLA:

o Deputy Under Secretary of Defense (Supply Chain Integration)(DUSD/SCI)

o Joint Staff Chief of Engineers (JCOE)

o United States Transportation Command (USTRANSCOM)

o Military Services (Army, Navy, Air Force, Marine Corps)

o United States Army Corps of Engineers (USACE)

POC: J34
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Goal: Additional Key J3 Initiatives

Initiative: European Infrastructure Consolidation (EIC) Program

Background: On 25 January 2013, the Secretary of Defense (SECDEF) directed a European 

capacity analysis to provide the basis for reducing long-term expenses through footprint 

consolidations. The Office of the Under Secretary of Defense for Acquisition, Technology, and 

Logistics (OSD/AT&L)) is the EIC Senior Steering Group (SSG) chair. The group is working to 

eliminate excess capacity while ensuring the Department of Defense’s infrastructure properly 

supports operational requirements and strategic commitments. At the request of the Principal 

Deputy Under Secretary of Defense for Acquisition, Technology, and. Logistics 

(PDUSD/AT&L)), the Defense Logistics Agency was chartered on April 5, 2013, to lead the 

Logistics Common Support Function Work Group (CSFWG). The Logistics CSFWG consisted 

of six sub-groups: Fuels, Maintenance, Munitions, Storage and Distribution, Supply, and 

Transportation Throughput. Sub-group leads were at the 06/GS-15 level.

Description:

 To realize the SECDEF objectives, the EIC effort followed a Base Realignment and 

Closure (BRAC)-like analytical process with four phases; Capacity Analysis, Military 

Value Analysis, Scenario Development, and Final Recommendations. Within each of the 

phases DLA was responsible for managing the flow of information, providing 

standardization direction, integrating sub-group inputs into joint deliverables, and 

updating the PDUSD (AT&L) before EIC SSG presentation. Figure 1 illustrates the 

complexity of the Capacity and Military Value Analysis phases and the relative size of 

the deliverables.

Figure 1

Phase Deliverable Number of Pages/Questions

Capacity Analysis4

Capacity Approach Report538 pages

Capacity Questions6167 pages/132 questions

Capacity Analysis Report798 pages

Military Value 

Analysis8

Military Value Approach Report 71 pages

Military Value Questions 92 pages/65 questions

Military Value Analysis Report 125 pages

Scenario 

Development

14 - Scenario Reports977 pages

31 - Spreadsheets 141 tabs

Final 5 – Logistics Briefings10 23 - charts

 

4

Current infrastructure capacity less utilized capacity plus surge requirements equal excess capacity. 

5 How excess capacity will be defined, identified, and reported.

6 Questions developed, answered by the field, and results used to establish the analytical bases for excess capacity.

7

Report analytically defined excess infrastructure and provided an auditable foundation for possible infrastructure reduction 

and/or elimination.

8 Using a similar process as the Capacity Analysis, the Military Value Analysis establishes the analytical foundation for possible 

infrastructure reduction and/or elimination as opposed to a qualitative Military Judgment assessment. 

9

Reports could include more than one business case and economic analysis. 
DLA Logistics Operations (J3)

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Recommendations

 Based on the results of the Capacity Analysis, DLA identified installations and/or 

functional areas (such as warehousing) where excess infrastructure existed in the 

European Theater. These areas were compared with other like installations and/or 

functional areas using their relative Military Value (1-n list). The result identified 

possible scenarios that would provide Joint solutions for a future European logistics 

footprint that supported operational requirements and strategic needs at least-cost. The 

DLA and the Logistics sub-groups identified 15 specific installations and/or functional 

areas for scenario consideration and development based on these possible scenarios.

 To support the EIC SSG scenario development process, the DLA completed a two-step 

process. First, a detailed report was developed for each scenario which assessed all 

pertinent elements of the scenario under consideration: strategic-level objectives, force 

structure impacts, impacts on contingency plans, Military Construction (MILCON) costs, 

and environmental issues are examples of areas addressed in the scenario development 

reports. Each report was reviewed and approved by the EIC SSG. The second step 

estimated cost and savings associated with each scenario using the OSD developed 

Business Case Analysis Tool (BCAT). BCAT produced the cost and savings financial 

estimates for each of the scenarios and facilitated the comparison of scenarios by 

identifying those with the most favorable return on investment.

Outcome(s): The Scenario Development phase concluded with the final EIC SSG briefing on 

June 16, 2014. In support of the SECDEF’s objective to reduce long-term expenses in the 

European Theater, DLA produced 15 scenarios with six scenarios recommended for approval by 

the EIC SSG. These scenarios represent the potential savings of approximately $36 million 

dollars annually and $523 million dollars over the next twenty years. At the end of FY14, DLA 

began developing Business Plans to implement SECDEF approved actions. 

Key participating organizations:

 Internal to DLA:

o DLA Distribution

o DLA Energy

o DLA Installation Support

o DLA Logistics Operations (J3) - DLA Europe and Africa (DLA Eu/Afr)

 External to DLA:

o Deputy Under Secretary of Defense for Installations and Environment, (DUSD

(I&E)) – Basing

o Assistant Secretary of Defense for Logistics and Materiel Readiness (ASD(L&MR))

o Joint Staff (J-4)

 

10 Briefings were presented to the EIC Senior Steering Group.
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o United States European Command (EUCOM)

o United States Transportation Command (TRANSCOM)

o Military Services (Army, Navy, Air Force, Marine Corps)

o Defense Commissary Agency (DeCA)

o Army and Air Force Exchange Serve (AAFES)
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Goal: Additional Key J3 Initiatives

Initiative: 1033 Program: Law Enforcement Support Office (LESO) Congressional Oversight

Background: In August 2014, law enforcement response to unrest, in Ferguson, Missouri, 

initiated Congressional attention on the Department of Defense (DOD) programs providing 

excess military equipment to Law Enforcement Agencies (LEAs). On August 27, 2014 the 

Secretary of Defense received a letter from the Senate committee on Homeland Security and 

Governmental Affairs asking for representation at a September 9, 2014 hearing titled “Oversight 

of Federal Programs for Equipping State and Local Law Enforcement Agencies”. Furthermore, 

on October 20, 2014 the Secretary of Defense received a letter from the Subcommittee on 

Oversight and Investigations of the House Armed Services Committee asking for representation 

at a November 13, 2014 hearing titled “The Department of Defense Excess Property Program in 

support of U.S. Law Enforcement Agencies: An Overview of DOD Authorities, Roles, 

Responsibilities, and Implementation of Section 1033 of the 1997 National Defense 

Authorization Act.” Both hearings required countless hours of preparation and coordination to 

prepare and answer many pre- and post-hearing Questions for the Record (QFRs).

Description:

 The Senate Homeland Security and Governmental Affairs committee’s September 9, 

2014 hearing examined the numerous programs that have allowed local law enforcement 

agencies to acquire equipment, including military equipment and law enforcement 

support equipment, to include the Defense Department’s 1033 program. The hearing 

assessed the justification for the programs and the processes and policies in place for 

coordinating, managing, and overseeing them and the officials who administer and utilize 

them. The DOD, Department of Homeland Security, and Department of Justice were 

asked to testify. Table 1 outlines the pre- and post- hearing QFRs that required responses 

and coordination by the DLA team. The QFRs focused on general program management, 

items transferred, policies, standard operating procedures, the controlled equipment 

listing, lost/missing/stolen weapons, terminations and suspension listing, Freedom of 

Information Act (FOIA) information, and equipment returned to the Defense Logistics 

Agency (DLA). The most challenging data files to present were the items returned to 

DLA from LEAs and the “rebuy” items being issued to Law Enforcement while 

subsequently purchased by DOD. DLA’s role in coordinating with the Military Services 

to gather the “rebuy” information was a noteworthy achievement. Mr. Alan Estevez, 

Principal Deputy Under Secretary of Defense for Acquisition, Technology and Logistics, 

testified on behalf of DOD during this hearing. 

 The Subcommittee on Oversight and Investigations of the House Armed Services 

Committee (HASC) held a hearing on November 13, 2014 calling Mr. Estevez and Vice 

Admiral Mark Harnitchek, DLA Director, to testify as witnesses. The purpose of the 

hearing was for the members of the committee to gain insight into the Departments “1033 

Program”. Mr. Estevez and Vice Admiral Harnitchek testified on program compliance, 
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weapons accountability, general program management, and fielded specific questions on 

the types of property provided.

Table 1

Hearing Phase Request Deliverable

Senate Homeland 

Security and 

Governmental Affairs 

committee

Pre Hearing QFRs 11 Questions 

(McCaskill)

5 page response 

document with 14 

attachments/data files

Senate Homeland 

Security and 

Governmental Affairs 

committee

Post Hearing QFRs 45 Questions 

(McCaskill, Pryor, 

Coburn)

45 individual response 

documents with 11 

attachments/data files

Subcommittee on 

Oversight and 

Investigations of the 

House Armed 

Services Committee

Post Hearing QFRs 3 Questions 

(Duckworth, 

Tsongas)

3 individual responses

As a result of the 

HASC hearing

Congressman Henry 

Johnson (D-GA) 

congressional inquiry 

27 Questions 9 page response with 3 

attachments/data files

Defense Logistics Agency (DLA) Office of Operations Research and Resource Analysis 

(DORRA) assistance: DORRA provided analysis support on excess materiel provided by LESO 

to LEAs in FY10-13 that was subsequently repurchased by DOD. Using a list of all materiel 

provided by LESO, DORRA identified the materiel manager so that each Military Service and 

DLA could research the items that had been repurchased. Analysis indicated that the majority of 

the material issued through the LESO program was turned in by the Military Services. DORRA 

computed the dollar value of DLA managed items subsequently repurchased, and provided 

assistance to the Supply Chains in researching the reasons that the materiel had been 

repurchased.

Outcome(s): 

 As a result of the hearings DLA made several changes to the way the 1033 program is 

administered. DLA created an Operations Order clearly defining the roles of DLA J3, 

DLA Disposition Services, and DLA OIG in the handling of lost, missing, and stolen 

weapons and other controlled property. DLA created an amendment to the Memorandum 
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197

of Agreement between DLA and the States to require documented training plans and 

submission of the plans with new property requests for all tactical vehicles, aircraft, and 

weapons. Additionally, DLA hosted the Department of Justice and the Department of 

Homeland Security for the first coordination meeting to discuss programs which supply 

federal items to law enforcement agencies, as well as ways to coordinate and share 

information about individual LEAs. DLA anticipates additional program administration 

changes from the Presidential Review and potential future legislation that will affect the 

1033 program. 

 More detailed information can be found at 

http://www.hsgac.senate.gov/hearings/oversight-of-federal-programs-for-equipping-stateand-local-law-enforcement and http://armedservices.house.gov/index.cfm/hearingsdisplay?ContentRecord_id=E248A7D4-556D-4B41-A794-

B4DF23237150&ContentType_id=14F995B9-DFA5-407A-9D35-

56CC7152A7ED&Group_id=64562e79-731a-4ac6-aab0-7bd8d1b7e890

Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations (J3)

o DLA Legislative Affairs

o DLA General Counsel

o DLA Disposition Services

o DLA Directors Staff Group

 External to DLA:

o Office of the Under Secretary of Defense (AT&L)

o Logistics & Materiel Readiness, Supply Chain Integration
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Goal: Additional Key J3 Initiatives

Initiative: Counterfeit Parts/DNA Marking 

Background: Counterfeit parts pose a significant risk to weapon systems readiness and personnel 

safety. The problem was highlighted by the March 2011 Senate Armed Services Committee 

(SASC) investigation into counterfeit parts in the defense supply chain. The bipartisan 

investigation identified over one million suspected counterfeit parts in U.S. weapon systems, 

supplied by over 650 companies over a two year period from 2009 to 2010.

 In response to the investigation and other reports that identified the vulnerability of the 

Department of Defense’s (DOD) Supply Chain to counterfeit parts11, Congress directed 

counterfeit prevention actions through the FY12 National Defense Authorization Act 

(NDAA). Section 818 of the FY12 NDAA directed DOD to take actions to avoid, detect 

and mitigate counterfeit electronic parts throughout the defense supply chain.

 In April 2013, the Department issued DOD Instruction 4140.67, “Counterfeit Prevention 

Policy.” The policy established detection, prevention, training and reporting 

requirements for Military Services and Agencies to mitigate the risk of counterfeit parts 

entering DOD’s Supply Chain. 

Description: Combating counterfeit parts is a high priority for the Defense Logistics Agency 

(DLA). To address the growing problem, DLA established a comprehensive combating 

counterfeits program, which consists of a multi-layered defense to detect and prevent counterfeit 

parts from entering DLA’s Supply Chain. The program meets the objectives of both Congress 

and the DOD to take action to mitigate the threat of counterfeits to DOD’s Supply Chain. Key 

elements of the program include: policy, training, testing, traceability, trusted sources, 

technology and supply chain risk management.

Outcome(s): A summary of DLA key 2014 accomplishments to detect, prevent and mitigate the 

effects of counterfeit parts from entering its supply chain include: 

 Policy: Published DLAI 4000.04, “Counterfeit Material Prevention and Mitigation” 

policy, which assigns responsibilities and implements procedures to prevent the 

introduction of counterfeit material into DLA’s Supply Chain.

 Training: Over 21,000 DLA personnel completed counterfeit awareness and prevention 

training. The annual web-based training provides awareness of the threat of counterfeits 

and the mitigations available to counter the threat.

 Testing: DLA’s Product Test Centers, conducted over 13,500 product authentication 

tests to keep counterfeits and nonconforming parts out of DLA’s Supply Chain. DLA 

also enhanced its quality assurance and testing capability at its depots.

 

11 January 2010 Department of Commerce Report “Defense Industrial Base Assessment on Counterfeit Electronics; Inquiry Into 

Counterfeit Electronic Parts in the DOD Supply Chain”; March 2010 GAO Report “Defense Supplier Base: DOD Should 

Leverage Ongoing Initiative in Developing its Program to Mitigate Risk of Counterfeit Parts.
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 Traceability: Determining that a part is from an original manufacturer, or authorized 

distributor is an effective mitigation in reducing the risk of buying counterfeit parts. 

DLA tightened controls in its parts procurement contracts requiring suppliers to make 

available documentation certifying a part is from an original manufacturer or authorized 

distributor.

 Trusted Sources: To mitigate the risk of nonconforming or counterfeit semiconductors 

and microcircuits entering DLA’s Supply Chain, when there is no traceability 

documentation to the original manufacturer or authorized distributor, DLA implemented 

a qualification program for distributors. Under this program, approved distributors must 

test their electronic parts prior to shipping to DLA. In 2014, 19 distributors were 

qualified by DLA.

 Technology (DNA Marking): To prevent counterfeit microcircuits (an electronic part at 

high risk of counterfeiting) from entering its supply chain, DLA required suppliers to 

validate the authenticity of the microcircuits supplied to DLA using an anti-counterfeit 

technology called Deoxyribonucleic Acid (DNA) marking. The botanically derived DNA 

taggant, which cannot be copied or altered, is placed on the surface of the microcircuit to 

validate its authenticity after it has been inspected and confirmed to be from the original 

component manufacture or authorized distributor. In 2014, over 85,000 microcircuits 

were authenticated using DNA marking.

 Supply Chain Risk Management (SCRM): DLA improved its supply chain risk 

management processes for acquiring critical electronic parts. In collaboration with the 

Department of Homeland Security, DLA conducted over 70 supplier risk assessments.

Key participating organizations: 

 Internal to DLA:

- DLA Land and Maritime 

- DLA Aviation 

- DLA Troop Support 

- DLA Protect Test Centers

- DLA Acquisition Policy (J7)

- DLA Logistics Operations (J3)

 External to DLA:

o Office of the Under Secretary of Defense (AT&L) Logistics & Material Readiness

o Office of the Under Secretary of Defense (AT&L) Defense Procurement Acquisition 

Policy

o Defense Contracting Management Agency

o Department of Homeland Security

o Defense Intelligence Agency
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Goal: Additional Key J3 Initiatives

Initiative: Develop method to measure Executive Agent (EA) supply chain maturity

Background: The Defense Logistics Agency (DLA) is the Executive Agent (EA) for four classes 

of supply (I, IIIB, IV, and VIIIA) and the supply chain manager for one (Class II). The DLA 

Supply Chain Integration Division (J34) is responsible for three essential tasks:

 Develop long term strategy for efficient supply chain performance

 Provide effective governance to enterprise partners

 Conduct assessments to measure supply chain implementation

 A Maturity Model is being developed as a long-term approach to attain supply chain 

excellence:

o This Model identifies three stages of supply chain development: planning, 

programming, and maturing. Each stage has associated actions that must be achieved 

before a commodity is considered ready to advance to the next stage. The Maturity 

Model leverages the Director’s Big Ideas, approved future concepts, and internally 

developed guiding principles. These inputs were used to categorize 15 qualities 

essential to each supply chain. An ideal end state was developed for each quality. 

The goal is for each commodity to reach all 15 end states.

o A strategic metric, the Maturity Model scorecard, serves as a tool to measure the level 

of performance in each quality. The scorecard enables strategy development and 

continuous process improvement by laying out steps needed to advance to the next 

level of performance. Commodity governing boards provide leadership and 

stakeholder involvement. Periodic supply chain assessments (SCAs) provide 

customer feedback. This feedback is used to test new concepts and refine supply 

chain development.

Outcome(s): Full scale use expected for future EA supply chain assessments as well as 

supporting governance and strategy decisions. The model is undergoing “Beta Testing” with 

Class (CL) II and CL VIIIA SCAs. The results are expected to be briefed to applicable 

governance boards by 2nd Quarter, FY 15. Once complete, the Maturity Model will be refined 

and used for the upcoming CL I and CL IV assessments in FY16.

Key participating organizations:

 Internal to DLA:

o DLA Troop Support

o DLA Energy

o DLA HQ (Logistics Operations (J3), Strategic Plans and Policy (J5), Financial 

Operations (J6), Acquisition Operations (J7))

 External to DLA:

o Military Services
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201

o Non-DOD partners (varies per supply chain)

o Deputy Assistant Secretary of Defense for Supply Chain Integration (DASD(SCI))

o JS J4 (Joint Petroleum Office)

POC: J34
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Goal: Additional Key J3 Initiatives

Initiative: DLA/Army Collaboration via Army Supply Plan (ASP)

Background:

 Historically, Army has conducted industrial collaborative demand planning via Special 

Program Requirements (SPR) transmitted to DLA via the Defense Logistics Agency 

Transaction Services (DLA TS). DLA TS routed the SPR to the Source of Supply (SOS) 

and provided compliance screening of transactions to ensure proper formatting. SPRs 

that passed the screening process were transmitted to DLA’s Enterprise Business System 

(EBS) where the Buy Back Rate (BBR) was applied measuring forecast accuracy and 

adjusted projected requirements before incorporating the quantity in DLA’s supply plan.

 On 1 October 2014, DLA started accepting the Army Materiel Command’s (AMC’s) 

Army Supply Plan (ASP). The ASP is the output of AMC’s Logistics Modernization 

Program (LMP) “netted” depot production material requirements. “Netted” LMP 

requirements are determined by backing out organic Army on-hand resources which 

reduces forecasted material requirements needed to be sourced from DLA. 

 The transition from SPR to ASP utilizes the Army LMP and DLA EBS Collaboration 

process. The process is viewed as a system-to-system forecast that gains efficiencies for 

DLA and it will provide Army and DLA necessary business intelligence to support depot 

repair lines.

Description:

 LMP generates repair part requirements by month supporting five years of future 

requirements. It leverages existing capability within LMP to meet the requirement for 

transmitting Army depot parts forecast to DLA based on an LMP Materiel Requirements 

Planning (MRP) calculation. 

 Monthly, Army transmits updated ASP forecast requirements to DLA using the 

formatting prescribed by Defense Logistics Management System (DLMS) 830D. DLA 

receives the ASP and initiates evaluation methodologies to determine proper planning 

channels, e.g. Demand Data Exchange (DDE), Direct Vendor Delivery (DVD) or Peak 

and Next Gen planning. Items entering into the DDE are further evaluated to determine 

variances between current and previous ASP file submissions and DLA’s statistical 

forecasted value. If the ASP requirements breach a variance tolerance level, an exception 

flag is generated for customer forecast validation. These exceptions are collaboratively 

worked by DLA and Army Planners within the EBS/JDA (Corporation) Manugistics 

Customer Collaboration environment. ASP forecast requirements for DLA items 

currently managed using Peak/Next Gen (PNG) inventory level setting logic, are 

removed from collaborative planning procedures. ASP forecast requirements will be 

supported by existing PNG min/max level settings. 
DLA Logistics Operations (J3)

203

 As part of ASP implementation, DLA leadership agreed to convert DLA items that were 

previously categorized as non-stocked (ACC J) to a numeric stockage objective (NSO) 

(ACC Z) status. For the majority of ASP AAC J items; these items qualified to become 

ACC Z PNG items and appropriate min/max levels were set.

Outcome(s): 

 Achieved Go Live October 1, 2014.

 First year material obligation authority (OA) benefit estimated at $59.2M in OA 

savings.

 The conversion of previously non-stocked (AAC J) items to Peak & Next Gen (AAC 

Z) stocking methods is expected to improve DLA supply support as well as Army 

industrial productivity going forward. 

 Development and implementation of Army Retail Metric Portfolio is providing 

valuable and actionable information that will improve the Army industrial/DLA 

collaborative planning process, DLA’s inventory effectiveness/efficiency, as well as 

Army overall industrial productivity and reduced operating costs. 

Key participating organizations:

 Internal to DLA:

o DLA Headquarters

o DLA Land & Maritime

o DLA Aviation

o DLA Troop Support

o DLA Distribution

 External to DLA:

o Headquarters Army Material Command (AMC)

o Army Life Cycle Management Commands

 United States Army TACOM Life Cycle Management Command (LCMC), 

United Sates Army Communications-Electronics Command (CECOM). United 

States Army Aviation and Missile Command (AMCOM)

POC: J34
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Goal: Additional Key J3 Initiatives

Initiative: Defense Logistics Agency (DLA) Office of Operations Research and Resource 

Analysis (DORRA) Studies

DORRA conducted studies on issues critical to the Agency. This initiative identifies some of the 

key studies not incorporated with the results of other initiatives in this report.

Study Name: System of Integrated Metrics Analysis (SIMAN) Assessment of Lead-Time 

Corrections

Background: In 2013, the J3 Tiger Team developed a number of initiatives to improve customer 

service by adjusting planning parameters. DORRA was asked to use the SIMAN simulation 

model to assess the impact of these adjustments on various performance metrics.

Description:

 The three major initiatives developed by the Tiger Team were:

o Align the Lead-Time (LT) of record with historical observed lead-times

o Use Economic Order Quantity (EOQ) logic to set order quantities for forecastable 

items

o Update safety stock quantities for forecastable items

 DORRA used these updated parameters to produce a 3-year impact analysis using 

SIMAN. The model computed the impact on Material Availability (MA), Purchase 

Requests (PRs), Obligation Authority (OA), Cash Out, and Inventory value

Outcome(s): DORRA analysis was used to aid in the Go/No-Go decision for the implementation 

of the original Tiger Team recommendations. These were in fact implemented, in a major “Big 

Bang” in March 2014, as well as a smaller-scale “Little Bang” (using LT corrections only) in 

September 2014.

Key participating organizations:

 Internal to DLA:

o DLA HQ (J34, J7, and J8))

o DLA Land and Maritime

o DLA Aviation

o DLA Troop Support

Study Name: Time to Award (TTA)

Background: The DLA Director tasked RADM Patricia Wolfe (J9) with reducing the Agency’s

average administrative lead-time (ALT) by 50% for all types of buys. RADM Wolfe then 

formed the Time to Award Team (TTAT) with representatives from each PLFA and J7 to 

recommend the changes needed to meet the Director’s goal. RADM Wolfe requested analytical

and data support from DORRA.
DLA Logistics Operations (J3)

205

Description: As part of this effort, DORRA:

 Developed and generated monthly metrics for contract awards, PRs On-hand, PRs 

blocked, PRs cancelled, and exclusions and rejections

 Provided numerous ad hoc analyses and queries including PR minimum buy quantity,

long-term contract (LTC) items, small business process model, no-quote study, and post

award analysis

 Summarized buyer evaluations 

Outcome(s): DORRA’s TTA metrics were accepted by leadership became the standard and are

briefed each month to the DLA Director by each supply chain. J34 increased DLA’s minimum 

buy quantity based on DORRA’s analyses. As a result of DORRA’s efforts, award times have 

been reduced.

Key participating organizations:

 Internal to DLA:

o DLA HQ (J34 and J7)

o DLA Aviation

o DLA Land and Maritime

o DLA Troop Support

Study Name: Logistics Supportability Analysis (LSA) Continuous Process Improvement 

(CPI) Support

Background: The LSA is a plan assessment tool that seeks to define the total unconstrained 

logistical requirement for execution of a CONOPS. The LSA findings should highlight 

deficiencies and their associated risk to supporting theater operations. The LSA is directed by the 

Joint Staff in Joint Strategic Capabilities Plan Logistics Supplement and Joint Staff Instruction 

on Joint Combat Capability Assessments.

Description: The current ad hoc analytic process for conducting LSAs in DLA does not support 

budget decisions, resource allocation, or identify capability gaps as needed to support Combatant 

Commander (CCDR) Joint Strategic Capabilities Plan-Tasked Plans.

Outcome(s): The team established an LSA process capable of identifying critical requirements, 

capabilities and gaps, while reducing the time required for delivering an LSA to a maximum of 

six months. DORRA: 

 Developed the primary methodology for assessing DLA’s capability to support CCDR 

plans and other operational contingencies.

 Executed the assessment methodology to meet specific responsibilities in DLA’s overall 

plan to implement and improve the LSA process.

 Modified the assessment methodology to improve the soundness of the analysis as well 

as meet evolving requirements for the LSA process.

 Provided expertise in the area of quantitative analysis and specifically the LSA 
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Fiscal Year 2014 Annual Historical Report

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assessment methodology to the LSA CPI lead and all participants.

 Provided expertise in other areas relating to the LSA CPI such as the Integrated 

Consumable Item Supportability (ICIS) application used to generate item level 

requirements for contingencies as well as data, analysis and processes related to order 

management, customers and weapon systems.

Key participating organizations:

 Internal to DLA:

o DLA Logistics Operations (J3, JLOC and DORRA)

o DLA Central

o DLA Pacific

o DLA Europe and Africa

Study Name: Weapon System Improvement Initiative (WSII) Analysis

Background: Based on customer feedback, the DLA Director launched a weapon systems

support improvement campaign. Investment in a target set of DLA managed items was approved 

in July 2010 based on customer feedback, Integrated Consumable Item Support (ICIS) outputs for 

item level requirements and DORRA analysis of the requirements to assess DLA supportability. 

Based on DORRA analysis, Primarily Level Field Activity (PLFA) input and a collaborative 

approach on how to achieve the desired outcomes, supported items were targeted according to the 

following criteria:

 Replenishment Method Code (RMC) R – Forecastable

 Acquisition Advice Code (AAC) D – Stockable

 Commonality to three or more weapon systems

This targeted approach drove obligations of ~$70M over FYs 10 and 11 and continues to be

supported as part of the requirements objective.

Description: Based on extensive collaboration between DORRA, DLA Joint Logistics Operation 

Center (JLOC) and DLA Central, DORRA completed several revisions of the analysis to support

continuing investment strategies for WSII.

Outcome(s):

 DORRA conducted extensive analysis on WSII requirements to assess DLA’s capability 

to support weapon system readiness and to determine criteria for investment in materiel 

requirements to optimize DLA supportability for weapon systems while minimizing risk.

 Based on the collaboration identified above, revisions conducted in FY14 accomplished 

the following:

o Added material availability (MA) as a program metric.

o Provided investment options corresponding to the targeted set of items (i.e. RMC R, 

AAC D and commonality to weapon systems).

o Provided more fidelity to the investment options while using the same baseline for 

MA and shortfall costs for all options.
DLA Logistics Operations (J3)

207

o Provided alternatives to investment in other than stocked, forecastable items that, 

while not as beneficial to DLA in terms of inventory investment, can still make a 

difference in weapon system readiness.

o Conducted analysis to determine the asset posture by month for the next two years for 

the targeted set of items to include planning additives supporting WSII. This analysis 

includes current asset data such as stock on hand and backorders, due-ins and 

forecasted demand for the next two years. As a result of this analysis DORRA 

recommended the planning be turned off for a percentage of these items.

Key participating organizations:

 Internal to DLA:

o DLA HQ (JLOC, DORRA)

o DLA Central

Study Name: J34 Strategic Initiatives/Medical Contingency Requirements Workflow 

Model

Background: The Functional Executive Agent (EA) Medical Support (FEAMS) team is 

responsible for developing a single computation methodology for the Military Services’ medical 

surge and sustainment requirements. A web-based modeling tool was created to predict the 

medical material consumption in combat, disaster response, and humanitarian assistance 

missions for use in acquisition support planning. The model is known as the Medical 

Contingency Requirements Workflow (MCRW). The MCRW is a complex tool that uses 

clinical and logistics data to predict the requirement for medical material for a scenario lasting up 

to 180 days. DORRA was asked by the Strategic Initiatives/Medical Materiel EA for DLA, to 

evaluate the algorithms and methods used within the MCRW and assess whether the selected 

approach is a logical solution given the MCRW objectives, focusing on the probability and 

statistics approach used during the Patient Stream generation.

Description: After reviewing the Patient Stream algorithms, DORRA concluded that an 

analytical solution would be a better alternative to the Monte Carlo Simulation methods currently 

used in the MCRW. The Monte Carlo Simulation included 30 replications of the model, which 

was inadequate to produce mathematically valid output given the Discrete Multinomial 

probability distribution used within the MCRW.

Outcome(s): DORRA provided the mathematical techniques needed to compute the requirement 

for medical material without Monte Carlo Simulation. The analytical solution prevents having to 

increase the number of replications to a level that would cause computer run-time to be 

excessively long for the user.

Key participating organizations:

 Internal to DLA:

o DLA HQ (J3 and DORRA)

Study Name: United States (U.S.) Pacific Command (PACOM) Bulk Fuel War Game
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Fiscal Year 2014 Annual Historical Report

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Background:

 The DLA Director tasked the JLOC with developing a fuel-focused exercise for the 

PACOM Theater that stresses the full Class III bulk petroleum contingency requirements.

 The purpose was to test the strategic Class III B network (sources of supply, distribution, 

and storage) under the stress of the most demanding event in the PACOM Area of 

Responsibility. The Wargame was to answer the following questions:

o What are the main impediments to meeting operational requirements?

o What are the sources of supply, storage, and distribution centers of gravity?

o Where can DLA invest in sources of supply, storage, and distribution to achieve 

greatest flexibility and responsiveness to meet operational requirements?

Description: The game was molded after the Navy N4 Log Centric game. The intent was to use 

the most demanding event in the PACOM Area of Responsibility (AOR), and use the most 

dangerous, and then the most likely courses of action. The results were to be evaluated based 

upon Joint Logistics Principles and reported in a follow-on Senior Leader’s seminar. The Center 

for Naval Analysis (CNA) was tasked with game conduct, scenario development, and data 

analysis. DORRA developed a model that replicated the breadth and depth of DLA Energy’s 

business practices, and included the ability to add sources of supply during game conduct.

Outcome(s): The classified preliminary results were briefed to the Senior Leader Roundtable in 

October 2014. CNA is to provide detailed data analysis by March 2015. DORRA is currently 

working to provide the required data to CNA, and is being tasked by DLA Energy to digitize and 

further enhance the model for use in other AOR’s.

Key participating organizations:

 Internal to DLA:

o DLA HQ (JLOC, DORRA)

o DLA Energy

 External to DLA:

o CNA

o OSD Operational Energy Plans and Programs (OEPP)

o USTRANSCOM

o Joint Staff J4

o PACOM
DLA Strategic Plans and Policy (J5)

209

Defense Logistics Agency

DLA Strategic Plans and Policy (J5) 

Fiscal Year 2014 Annual Historical Report

1. Introduction

The DLA Strategic Plans and Policy (J5) Historical Record (HR) describes J5's actions and 

accomplishments over FY14. These accomplishments improve governance and process oversight 

while they support and sustain effective and efficient service to our civilian and military 

customers. Process management oversight and governance inform and guide the Agency by 

translating DLA’s vision and strategy into meaningful actions, goals, and measures. Through 

strategic management and oversight integration, J5 establishes meaningful linkages to financial, 

operational, and systemic metrics. It develops supporting governance forums that provide 

strategic direction and focuses to assist the Agency remain relevant, effective, and efficient. 

Through process integration, J5 leads the Agency through an Enterprise Process Management 

(EPM) program.

a. Our mission is the shared mission of DLA

We are America’s Combat Logistics Support Agency. We provide effective and efficient 

worldwide support to Warfighters and our other customers. The J5 provides advice and 

assistance to the Director to meet and sustain current and future logistics support 

capabilities. We are charged with the development of strategy, policies, procedures, programs, 

and oversight for strategic management and governance; policy management; risk assessment 

and process improvement as well as the Director’s special interest areas. 

b. Our Vision: Warfighter-focused, globally responsive, fiscally responsible supply 

chain leadership.

c. Our Values: Our values are the foundation for all we do. They provide our guiding 

principles as we accomplish our mission, pursue our vision, and strive to do what is right for the 

Armed Forces and DoD:

 Warfighter needs guide us

 Integrity defines us

 Diversity strengthens us

 Excellence inspires us 
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Fiscal Year 2014 Annual Historical Report

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2. Role within DLA

The J5 mission is to advise and assist the Director and Executive Board to build and sustain an 

exceptional Combat Logistics Support Agency capable of meeting the needs of the Armed 

Forces now and in the future.

Our mission is integral to the achievement of DLA’s strategic goals and objectives and the scope 

of our business covers the development of the essential policies, procedures, programs, and 

oversight in the following areas:

 Strategic Planning, Director’s Guidance, and Governance

 Enterprise Process Management (EPM)

 Enterprise Organizational Alignment, Policy Instructions, Manuals, Standard Operating 

Procedures, and Forms

 Enterprise Risk Management, Managers’ Internal Control, Management Review 

Integration, and Internal Review Oversight

 Continuous Process Improvement (CPI)

3. Structure

In FY14, we reorganized to accommodate new mission and functions assigned to us in 

General Order 06-14, dated August 20, 2014. We established the Enterprise Process Integration 

Division and Enterprise Process Management Branch. J5 realigned Risk and Controls, Policy 

Management, and Continuous Process Improvement under the new Process Integration Division 

to ensure DLA is properly aligned to support enterprise process management, audit readiness, 

and audit sustainment requirements and initiatives.
DLA Strategic Plans and Policy (J5)

211

4. Operating Budget

Portfolio (FY14)

 FTE Authorized/Actual 31/28 

 Budget $ 5.445M 

5. FY14 Goals

Each year we take a deliberate approach to align our goals and objectives with those articulated 

in DLA’s strategic plan, Director's Guidance, and the Director's Big Ideas. We set these goals in 

the J5 Annual Operating Plan (AOP.) Our goals and initiatives for FY14 follow:

1. Integrate Big Ideas and provide Governance support

2. Finalize the Concept of Operations (CONOPS) for the Enterprise Program Management 

(EPM) office and re-establish the Supply Chain Integration (SCI) forum.

3. Implement a new, risk-based approach and Enterprise Risk Management (ERM) within 

DLA to improve the documentation of Material Weakness and the Annual Statement of 

Assurance. 

4. Implement CPI support to Audit Readiness Business Cycle Team (BCTs) and Field 

Command Team (FCT) leads agency-wide

5. Integrate SOPs into Agency Issuance program

Additionally, we set several internally focused goals for FY14:

1. Articulate DLA strategy aligned with DOD strategy

2. Manage other metrics (FTE Execution, Telework Participation, and Vacancy Rate)

The rest of this historical document describes activities surrounding these goals and objectives 

along with our success rate in achieving them.
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FY 14 Goals, Metrics, and Results Tied to the Director's Guidance and Big 

Ideas

Goal 1: Integrate Big Ideas and Provide Governance Support

What did we say we were going to do?

As the Director’s Big Ideas Integrator/Governance Support lead, J5 will synchronize, 

coordinate, and optimize Agency activities associated with Big Ideas, via the Integration 

Framework. J5 will ensure that the progress of the Big Ideas and their key issues flow through 

the governance structure and we will brief the Executive Board on key milestones at Quarterly 

Scorecard Reviews. We will support Functional Group Leaders as they refine levers and business 

rules. Specifically:

 Leverage existing forums

 Facilitate decisions

 Share information (Common Operating Picture)

 Monitor business rules 

 Clarify guidance

 Share best practices

 Ensure maximum use of existing governance structures 

What would success look like? 

We would be successful if we supported attainment of $1.07B savings Agency–wide in FY 2014.

How did we do? 

We are proud to report successful completion of this goal. In FY14, the Agency 

achieved $1.6B savings.
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Goal 2: Finalize the Concept of Operations (CONOPS) for the Enterprise 

Program Management (EPM) office and re-establish the Supply Chain 

Integration (SCI) forum.

What did we say we were going to do?

J5 will develop and implement an integrated Enterprise Process Management (EPM) 

CONOPS in FY14. The CONOPS will establish business rules for a broad, multi-disciplinary 

governance forum that will align and synchronize business operations, systems, and auditability 

requirements in an integrated fashion. EPM will take a disciplined approach to improving 

Agency efficiency and effectiveness by working with process and functional stakeholders. EPM 

will establish E2E process metrics, review and approve changes to E2E processes, and ensure 

documentation of changes in process narratives, flowcharts, policy instructions, and SOPs. 

What would success look like?

The Alignment Group approves the EPM CONOPS by the end of the 3rd Quarter FY14. 

How did we do? 

We did not meet our goal; however, as of December 15, 2014, we have received 13 of 

14 concurrences. Our new completion date is set for the end of 2nd Quarter FY15.
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Goal 3: Implement a new risk-based approach and Enterprise Risk 

Management (ERM) within DLA, to improve the documentation of Material 

Weakness and the Annual Statement of Assurance (SOA)

What did we say we were going to do?

Improve the Agency’s approach to assessing, documenting, and reporting on internal 

controls by integrating enterprise risk management into the process. Controls help ensure the 

reliability of financial reports, operational effectiveness, and compliance with laws and 

regulations. Testing and reporting on these controls forms the basis for management’s assertions 

to their effectiveness. Management attests to these results in the Agency’s statement of assurance 

(SOA), which is signed by the Director and submitted to the Office of the Secretary of Defense 

annually. 

What would success look like?

We would be successful if we could validate results, prepare, and submit the SOA on time.

How did we do?

We successfully submitted the SOA on time (July 25, 2014.)
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Goal 4: Implement CPI support to Audit Readiness Business Cycle Teams 

(BCTs) and Field Command Teams (FCTs) leads agency-wide.

What did we say we were going to do?

J5 will work with DLA senior leaders to develop an Enterprise portfolio of CPI 

improvement opportunities. J5 will prioritize these opportunities by the level of support to the 

DLA Big Ideas initiative. We will present them to DLA Senior leaders who will select, 

participate, and support enterprise improvement projects for FY14. In addition, J5 will continue 

to support the Time to Award (TTA) initiative from FY 13; specifically, decrease Procurement 

Administrative Lead Time (ALT) in TTA (Supplies and Services.)

What would success look like?

We would be successful if we helped attain Big Ideas savings of $1.07B and improve efficiency 

of the TTA process in FY 2014.

How did we do?

We are proud to report successful completion of this goal. In FY14, we helped the 

Agency achieve:

 $1.6B in Big Idea savings

 Increased automated small purchases from 45% to 80% 

 Decreased ALT by 43%
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Goal 5: Integrate SOPs into Agency Issuance program

What did we say we were going to do?

J5 will expand DLA’s issuance framework by establishing policy and procedures to write, 

maintain, and store SOPs in a central repository in FY 2014. This initiative will require Agency 

supervisors and managers to document daily activities that support business operations with 

Agency systems, processes, and audit readiness/sustainment, and regulatory requirements. 

Specifically J5 will:

 Establish a requirement for writing SOPs

 Develop an SOP template and SOP standards document.

 Modify the DLA Issuances website to accommodate SOPs 

 Provide tools and training

 Manage Agency SOPs

What would success look like?

We would realize success if we write and publish SOP policy, develop an SOP template and 

standards document, and stand up an online SOP repository in FY14.

How did we do? 

We were partially successful. We wrote the SOP policy, created templates and a 

standard document, and modified the current DLA Issuance web site to accommodate 

SOPs. However, we did not publish the SOP policy. It is in the final stages of coordination and

we expect to complete this action by the end of the 2nd Quarter FY15. 
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J5 Specific Goals and Other Metrics

Internal Goal: Clearly articulate DLA strategy aligned with DOD strategy

What did we say we were going to do?

J5 will establish a common understanding of DLA’s mission, vision, and values and 

identify strategic goals to guide near-term imperatives and long-term opportunities, in 

synchronization with DOD strategy. We will detail the Director’s Intent in terms of strategy and 

objectives and provide a clear set of priorities for action. We will continue to establish the 

Strategic Plan, Director’s Guidance, and Annual Operating Plans to ensure alignment, focus, and 

optimal resource allocation.

What would success look like?

If we were able to complete a 100% review of DLA strategic documents for alignment with OSD 

strategy then we would be successful.

How did we do?

J5 successfully created and aligned all of the DLA strategic documents with OSD 

guidance. 
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Other Metrics: (Full-time Equivalent (FTE) Execution, Telework 

Participation, and Vacancy Rate)

What we did:

With DLA Big Ideas and good stewardship of taxpayer resources as the backdrop, J5 

identified approaches to support the DLA mission as efficiently and effectively as possible. We 

monitored areas impacted by declining budgets to make swift adjustments based on budget 

conditions. The metrics below address execution-to-plan for the FY14 Annual Operating 

Budget. 

FTE Execution

 Objective: Execute J5 FTEs to budget authorization

 Metric: Actual FTE execution/planned FTE execution

 Target: 31 FTEs

 Result: We ended FY14 with 28 FTEs. New division hiring in the 1st Quarter FY15 will 

bring our total FTEs to 31.

Vacancy Rate

 Objective: Manage positions to align with mission requirements and maintain staffing 

levels to ensure the most efficient use of resources.

 Metric: Number of vacant positions.

 Target: Vacancy NTE 3% of authorized positions (Note: 1 position equals 3%)

 Result: 9%. J5 had 28 FTEs at the end of FY 2014. We plan to hire 3 FTEs during the 

2nd quarter FY15, which will bring total FTE’s to 31 or 100%.

Telework Participation

 Objective: Maximize participation in telework program to ensure readiness.

 Metric: Percentage of eligible positions, percentage of personnel who have approved 

telework agreements, and percentage of personnel who teleworked during the month.

 Target: 100% for each metric

 Result: 100% of our positions are telework eligible and 100% of J5 employees have 

approved telework agreements. In FY14, on average, 88.6% of J5 personnel teleworked 

each month.
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Defense Logistics Agency

DLA Information Operations (J6) 

Fiscal Year 2014 Annual Historical Report

1. Mission, Functions, Goals, and Priorities

Mission: We are America’s Combat Logistics Support Agency. We provide effective 

and efficient worldwide support to Warfighters and our other customers.

J6 supports this mission by serving as the DLA knowledge broker, providing 

comprehensive, best practice Information Technology (IT) support to the Department of Defense 

(DOD)/DLA Logistics Business Community, resulting in highest quality information systems, 

customer support, efficient and economical computing, data management, electronic business, 

telecommunication services, key management, and secure voice systems for DOD, DLA, and 

geographically separated operating locations.

Functions:

 Develops and promulgates IT policy, plans, and strategies 

 Provides direction in the preparation and development of technical and implementation 

strategies for IT investments 

 Delivers IT capabilities solutions including architecture, infrastructure, and operations in 

support of mission needs 

 Establishes IT standards, processes, and measures 

 Serves as Agency Chief Information Officer responsible (CIO) for management and 

oversight of the DLA IT Investment Portfolio

2. DLA Information Operations FY14 Goals

GOAL 1

Keep our IT systems and services fully operational/mission capable, secure, and available for 

our global users every day.
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GOAL 2

Deliver new IT systems and capabilities to our DLA and DOD users on cost and schedule.

GOAL 3

Assess our performance, policies, procedures, and technologies to improve our IT systems, 

capabilities, and services.

GOAL 4

Develop our IT professionals to ensure they are fully prepared to meet the challenges of 

providing world-class IT services today and well into the future.

3. CIO’s FY14 Priorities

a. Security/Day to Day Operations 

b. Audit Readiness

c. Achieve Efficiencies

d. Workforce Development -- develop strategy/rules/expectations/outcomes

e. J6 Alignment and Synchronization with Enterprise Priorities 

f. Enhance Partnerships

g. Streamline Communications

h. Deliver and deploy programs within cost/schedule/performance parameters

4. CIO’s FY14 Summary of Accomplishments

We began FY 14 with an ambitious plan, and ended it with our CERT earning one of the highest 

scores ever during its recent DISA Computer Network Defense Service Provider evaluation.

In between, we tackled challenges and celebrated triumphs while continuing to build a robust, 

worldwide IT infrastructure for DLA and our other DOD customers. We have much to be proud 

of this year.

Several of the many achievements we attained during a very taxing year show just how hard you 

worked and just how talented the J6 team is:

-- We accomplished an important and far reaching realignment that will enable us to better serve 

our customers while keeping costs in check.

-- We migrated the entire Agency to a single Active Directory structure to gain process 

efficiency and save nearly a billion dollars.

-- We’re in the home stretch of completing E-Procurement and E-Convergence programs, a 

critical milestone that enables all supply chains to be serviced by a single system.

-- We significantly enhanced our partners’ and customers’ business processes with new IT 

systems and capabilities.
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- We institutionalized a disciplined and rigorous process – Enterprise Configuration Management 

– to control changes in our production environments. 

-- We oversaw the on-time and secure processing of 8.4 billion department-level transactions for 

orders, payments, and other critical exchanges.

-- We reassigned 4,800 items from GSA to DLA management, a first from federal to DOD, and 

assigned 105,000 new National Stock Numbers.

-- We passed two DISA FSO CCRI inspections, receiving ‘excellent’ grades for NIPR/SIPR in 

both and earned 2 favorable system SSAE 16s, the first ever in DLA.

-- We worked through extreme weather conditions, nearly impossible deadlines, and constantly 

shifting priorities to ensure that the President of the United States, First Lady, and staff working 

in support of the Administration received exactly what they needed, when they needed it.

-- We completed the Enterprise HelpDesk rollout to 32,000 personnel providing 24/7/365 

coverage while saving nearly $3 million and improving customer satisfaction rates by 9% over 

goal.

-- We developed a mobile command vehicle, providing full DLA business capabilities to forward 

locations during humanitarian crises.

-- We established a single, standard process for receiving and assessing new IT requirements –

the J6 IT Front Door – processing 400 requests for new IT capabilities in FY14.

-- We’re leaders in embracing new workforce concepts, including telework, hoteling, and virtual 

teams, something that’s only possible with your support.

We also ‘put up’ some very impressive numbers over the last year:

-- Achieved over 90% of our FY14 operating plan initiatives, including 

reduction/decommissioning of 251 applications and nearly 1000 tools, eliminating duplication.

-- Our system and network availability exceeded 99 percent uptime for the year.

-- Quadrupled DLA Director-mandated Big Ideas savings to 23%.

-- Achieved 84% compliance with IA certifications and 100% of acquisition certifications.

-- Consolidated 53 contract to 9 contracts, saving millions.

And we accomplished all of these important things while ensuring we stayed focused on the 

critical part we play in ensuring DLA meets its audit readiness goals.

Everywhere you look within DLA, from Alabama to Afghanistan, from the White House to 

remote forward operating bases, you find members of the DLA Information Operations team 

making a difference every day. Some of the many achievements you made this year will make a 

positive difference within the Agency for years to come.

I’m incredibly proud to be associated with all of you. I couldn’t ask for a better team of 

professionals supporting one of the most critical missions in all of DLA. I thank each of you for 

your hard work, patience, and dedication to mission.

As a leader of this organization, I know that not all heroes are found on the battlefield. 

Sometimes you find heroes writing code, troubleshooting network issues for critical systems, 

standing as the last line of defense between malicious hackers and DLA’s network. You are the 

heroes of DLA’s IT infrastructure.
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We have another tough year ahead, another set of ambitious goals. I know you’ll meet the 

challenges as you always do - with professionalism, a great work ethic and a can-do attitude. I’m 

proud to be on this journey with you.

Kathy Cutler

Chief Information Officer
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5. J6 Realignment

The J6 organization was realigned into an enterprise wide service based operating model 

consisting of four Enterprise Service Areas and the Chief Technology Office. J6 is organized by 

function rather than by geography, and all of the J6 field sites (J6F, J6P, J6N, etc...) have been 

eliminated.

As a result of the realignment, J6 is organized to carry out routine and contingency missions 

through centralized management and is able to deliver standard Enterprise IT services designed 

to provide specific capabilities for our customers.

The functional J6 organizations are: 

Compliance Management & IT Operations Support Services, J61:

The Cybersecurity Policy Advisor to the Chief Information Officer and acts as a liaison to the 

DLA Human Resources, DLA Finance and DLA Acquisition directorates for the J6 workforce. 

J61 provides Cybersecurity Policy & Compliance oversight, Cybersecurity Program 

Management, Cybersecurity Assessments, IT Workforce Management, IT Financial 

Management, IT Contracting & Licensing Management, IT Audit Readiness, and Process 

Management.

Program Executive Office, J62:

Develop, deliver, operate and sustain war-winning Combat Support Information Technology 

Solutions for the DLA and DOD Enterprises.

Stakeholder Integration Services, J63:

Stakeholder Integration Services (SIS) Directorate provides an array of services designed to plan, 

communicate and deliver information operations and technology to DLA customers and 

stakeholders in support of the DLA mission. SIS provides the Chief Information Officer (CIO) 

the customer focus and primary touch points for all J6 activity: Enterprise Helpdesk (EHD), 

Custom Liaisons (LNOs) and the IT Front Door. 

Central to the SIS mission is a focus on customer support to ensure J6 delivers the right services, 

with the right quality, and the right costs are allocated to achieve J6 and DLA strategic and 

operational goals.

Enterprise Infrastructure Services, J64:

Provide IT solutions, operations and sustainment services, in support of DLA mission success, 

through infrastructure technology and data services. Consists of global IT infrastructure, 

communications and security services. Responsible for delivering a full range of IT 

infrastructure solutions necessary to support DLA operations and its associated commitment to 

the war-fighting logistician. Provide oversight to three divisions, Cyber Security, Network and 

Telecom Services, and Technology Foundation Services. Provide solutions to meet customer IT 

infrastructure, communications, and security needs. Responsible for continuity of operations for 

infrastructure information technology, network and communications. Responsible for 
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implementing and sustaining the IA Program for IT infrastructure systems to ensure the 

confidentiality, availability, integrity and non-repudiation of sensitive and classified information 

residing on them. Responsible for network and system security intrusion detection, protection 

and prevention. Provides a reliable IT infrastructure for all applications, systems and users 

ensuring adequate availability for mission completion. 

Chief Technology Office, CTO:

The Chief Technology Officer is responsible for defining the DLA technology direction to 

support organizational goals and strategies; identifying, evaluating, and approving Information 

Technology (IT) products for use in the DLA enterprise; and managing the relationship between 

DLA and IT vendors whose products have become strategic to enabling DLA’s business 

processes. Definition of the DLA technology direction includes developing and maintaining 

both the enterprise architecture strategy and the enterprise data strategy. The Chief Technology 

Officer is also responsible for providing the guidance and support to development and 

sustainment organizations to promote technology standardization, awareness, competence, 

consistency, and efficiencies throughout the agency. 

 DLA Information Operations (J6) Organization

 

This chart depicts the realigned J6 organization.
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225

6. Key Leaders

Org Code Name Title

CIO Office

J6 Kathy Cutler Director/Chief Information Officer

J6 Robert Foster Deputy Director

J6 Kitty Eisler Strategic Analyst

J6 Cindy McGee Strategic Analyst

CTO Office

J6CTO Bruce Paton Chief Technology Officer

J6CTO Gregory Allen Chief, Enterprise Architecture

J6CTO Michael Ball Chief, Strategic Technologies & Vendor Relations

Compliance Management and IT Operations Support Services (J61):

J61 Linus Baker Director

J61 Freddy Hardin Deputy Director

Compliance Management Division (J611):

J611 Freddy Hardin Chief

J611A Karen Bell

Chief, Information Assurance Policy & Compliance 

Management Branch

J611B Robert Olear

Chief, Information Assurance Management & Technology 

Branch

J611B Brad Rahman Senior Information Assurance Manager (IAM)

IT Operations Support Division (J612):

J612 William Scott Chief

J612A Debra Davis Chief, Workforce Management Branch

J612B Linda Poleo Chief, Financial Management Branch

Performance Optimization Division (J613):

J613 Kevin Quick Chief

J613A Frank O’Rourke Chief, Contracting & Licensing Management Branch

J613A Len Nale

Team Lead, J62 Contracting & Licensing Management 

Support

J613A James Spell

Team Lead, J61, J63 & Chief Technology Officer (CTO) 

Contracting & Licensing Management Support

J613A Susan Lizzi

Team Lead, J64 Contracting & Licensing Management 

Support

J613B Alan Tripp

Chief, Cybersecurity Assessments, IT Audit Readiness & 

Process Management Branch

J613B Erich Gabris Team Lead, IT Audit Readiness Team

J613B James Moffett

Process Management Contracting Officer’s Technical 

Representative

J613B Shryll Brown Internal Compliance Team Supervisor

Program Executive Office, Enterprise Applications:

J62 William Tinston Program Executive Officer (PEO)

J62 Kenneth Fielding Deputy PEO

J622 Jeffrey Moorman Chief, Systems Engineer

PEO Operations:

J621 Bernadine Bowyer Director
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J621A Scott Warren Chief, Acquisition Support

J621B Miles Holtzman Chief, Business Support

J621C Cynthia Ellison Chief, Testing

J621D Donald C. Pipp Director, Defense Logistics Management Standards Office

Application Development & Sustainment

Defense Agencies Initiative:

J62A Sabrina Holloway Program Manager

J62A Ricky McClary Deputy Program Manager

Enterprise Capabilities:

J62B Cheryl Morrison Portfolio Manager

J62B Leslie Sofocleous Deputy Portfolio Manager

J62B Calvin Freeland Portfolio Analyst

J62BA Davis McLemore Program Manager, Defense Travel Systems

J62BD Sheldon Soltis Program Manager, Defense Information System for Security (DISS)

J62BE Joshua Lashbrook Program Manager, Next Generation Fusion Center

J62BH Robert Campbell Program Manager, Document Services

J62BJ Sharon Higbee Program Manager, Enterprise Media

J62BL Kirk Peri Program Manager, IT Services

J62C Zadoc-Lee Kekuewa Portfolio Analyst

J62CB Gary Pugliano Program Manager, Standard Procurement System (SPS)

J62CC Stacy Simmons Program Manager, Accessories/ Technical Demonstration

J62CD Phil Deboe Program Manager, DOD EMALL

J62CE James Johnson

Program Manager, Wide Area Work Flow (WAWF), 

Electronic Document Access (EDA) Development

J62CG Robin Gardiner

Program Manager, Subsistence Total Order & Receipt 

Electronic System (STORES)

J62D Jeffrey Charlesworth Portfolio Manager

J62D Jan Swinehart Portfolio Analyst

J62E Susan VanMeter Portfolio Manager

J62E William Gill Portfolio Analyst

J62E Nelson Gonzalez Program Manager

Enterprise Financial Management:

J62F Patricia Whitington Portfolio Manager

J62F James Carver Portfolio Analyst

J62FA Janet Hilbish

Program Manager, Human Resources/Employee Activity 

Guide for Labor Entry (EAGLE)

J62FB Marsha Harris Program Manager, Small Financial Applications

J62FC Bobby Blackley

Program Manager, Business Enterprise information 

Services Family of Systems (BEIS FoS)

J62FD Gretchen Anderson

Program Manager, Defense Retiree Annuitant System 2 

(DRAS-2)

J62FE Soma Durgam

Program Manager, Next Generation Resource Management 

System (NGRMS)

J62FF Catrina Murphy Program Manager, Enterprise

J62FG Elizabeth Comacho-Hart

Program Manager, Access Monitoring and Verification/ 

Segregation of Duties.
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J62FH Elizabeth Comacho-Hart Program Manager, Customer Pricing Tool (CPT)

Provisional Applications:

J62G Steve Costner Portfolio Manager

J62G LaTarra Barnes Portfolio Analyst

J62GA Eric Taylor Program Manager, EBS Applications

J62GB Richard Fitzgerald Program Manager, Small Applications

J62GC Amber Gentry-Upston Program Manager, DSS Applications

J62GD Michael Dougherty Program Manager, Apparel Research Network (ARN)

Federal Logistics Information System:

J62H Kenneth Surprenant Portfolio Manager

J62H James Daniels Portfolio Analyst

J62HA James Daniels Program Manager

J62HB Melissa Pratt Chief, Requirements & Operations

J62HC Derrick Drallette Chief, Mainframe & Mid-Tier Solutions

Energy Convergence:

J62I Kimberly Pisall Portfolio Manager

DLA Transaction 

Services

J62K Brad Lantz Director

J62K Deputy Director

Stakeholder Integration Services (J63):

J63 Joseph Cassel Director

J63 Karen Schreiber Deputy 

Customer Support & Readiness (J63A):

J63A Kevin Faber Director

J63A Scott Riddle Deputy 

J63AB Allison Shinn-Yuen Chief, Pacific Region

J63AC Kenneth Morris Chief, Europe, Africa & SWA Region

J63AC Gary Selph Deputy (Temp)

J63AD Christopher Judd Chief, Continental United States (CONUS)

J63ADA Dudley Bolbat Chief, Northeast Region

J63ADB Joseph Dihrkop Chief, Central Region

J63ADC Stella Nealy Chief, West Region

J63ADD Keith Blowe Chief, South Region

J63ADE Michael Bruffey Chief, HQ/ National Capital Region (NCR)

J63ADE Mark Stanley HQ/J and D Code LNO

J63AE Scott Pearson Chief, Enterprise Help Desk (EHD)

J63AF Ernie Sparages Chief, Customer IT Planning

Stakeholder Planning & Operations (J63B):

J63B Eric Fegley Director, Stakeholder Planning and Operations

J63BA John Mason Chief, Strategic Communications

J63BB Richard Tebeau Chief, IT Service Management

J63BC Lora Conrad Chief, IT Front Door

J63BD Kevin Hand Chief, IT Contingency Operations
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J63BE Valerie Byrd Chief, Enterprise Configuration Management

J63BF Kari Riskedahl Chief, IT Operations Center

J63BG Tammy Ortega Chief, Information Mgt. Management

Defense Information Systems Agency (DISA) Liaison Office (J63C):

J63C Dave Habeger Director

DLA Document Services (J63E):

J63E Steve Sherman Director

J63EA Shawn Magill Chief, Strategy Development

J63EB Florella Correa

Chief, Document Service Business Field Office—San 

Diego, CA

J63EB Wayne Voyles

Chief, Document Service Business Field Office—Bangor, 

WA

J63EB Daral Valtinson

Chief, Document Service Business Field Office—Oklahoma 

City, OK

J63EB Bruce Rueter

Chief, Document Service Business Field Office—

Pensacola, FL

J63EB Brett Hutchins

Chief, Document Service Business Field Office—

Philadelphia, PA

J63EB Wendy Glas

Chief, Document Service Business Field Office—Great 

Lakes Region

J63EB William “Joe” Barrett

Chief, Document Service Business Field Office—

Jacksonville, FL

J63EB Mark Rockwell Chief, Document Service Business Field Office—Norfolk,VA

J63EB Glenn Dixon

Chief, Document Service Business Field Office—

Washington, DC

J63EB Bob Kadomoto Chief, Document Service Business Field Office—Pacific

J63EC Pat McCabe Chief, Productions—Operations 

J63ED Steven Hawkins Contracting

DLA Logistics Information Services (J63F):

J63F Ray Zingaretti Director

J63F Randy Young Deputy

J63F Renee Hubbard Chief of Staff

J63F Michelle Moore Chief, Item Introduction & Maintenance Division 1

J63F Phillip Messner Chief, Item Introduction & Maintenance Division 2

J63F Michael Coykendall Chief, Item Introduction & Maintenance Division 3

J63F Cinzia Kirkendall Chief, Item Introduction & Maintenance Division 4

J63F Shannon Calhoun Chief, Customer Support Division

J63F Sheila Rayburn Chief, Data Services Division

J63F Theresa Knife Chief, Data Processes Division

Enterprise Infrastructure Services (J64):

J64 Michelle Jacobs Director

J64 Mark Jackson Deputy Director

J64 Susan Burke Operations

J64 LTC James Nichols Operations

J64 Tiffany Pierce Budget/Finance

J64 Lt. Jeffrey Clarke Operations Support Office

Cyber Security (J64A):

J64A Robert Dunlap Director
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J64A Suzanne Fairley Deputy Director

J64AA Susan Duckworth Chief, Security Integration Division

J64AAA Linda Clark Chief, Certification & Accreditation Branch

J64AAB Mike Puterbaugh (Actg) Chief, Engineering & Integration Branch

J64AAC Christopher Combs Chief, Vulnerability Management Branch

J64AB Jason Pratt Chief, CERT Division

J64ABA Vacant Chief, Incident Response Branch

J64ABB Adam Price Chief, Analysis & Support Branch

J64AC John Beecham Chief, Operations Division

J64ACA Scott Reid Chief, Identity & Access Management Branch

J64ACA Craig E. Anderson Team Chief, PKI Team

J64ACA Cindy Dissinger Team Chief, EBS Team

J64ACA Dan White Team Chief, Mainframe Team

J64ACA Kristine Beckwith Team Chief, Web Team

J64ACB John Stewart (Acting) Chief, COMSEC Branch

J64ACC Robert Porter Chief, Security Tools Branch

J64AD Travis Reid Chief, Disaster Recovery Division

J64ADA Vacant Chief, Planning Branch

J64ADB Vacant Chief, Operations Branch

Network and Telecom Services (J64B):

J64B Michael Ryan Director

J64B Sharon Sauls Deputy Director

J64B Vacant Management Analyst

J64BA Vacant Chief, Network Operations Division

J64BAA James Kraus Chief, Firewall/Management Branch

J64BAB Matthew Myers Chief, LAN Management Branch

J64BAB Vacant Team Lead, LAN Mgmt Branch Northeast

J64BAB Vacant Team Lead, LAN Mgmt Branch South

J64BAB Stephen Hughes Team Lead, LAN Mgmt Branch Central

J64BAB Vacant Team Lead, LAN Mgmt Branch West

J64BAB Ryan Cummings Team Lead, LAN Mgmt Branch Europe

J64BAC Gregory Weaver Chief, WAN Management Branch

J64BAC Veneice Mercer Team Lead, WAN Management

J64BAC Vacant Team Lead, WAN Management

J64BAC Paula Gray Team Lead, WAN Management

J64BB Charles Schell Chief, Service Management Division

J64BBA Audrey Jones Chief, Configuration Management Branch

J64BBB Joseph Clark Chief, Engineering Services Branch

J64BC Gregory Schrader Chief, Telecommunications Operations Division

J64BCA Linda Kiczenski Chief, SATCOM Services Branch

J64BCB Stephen Clark Chief, Voice Services Branch

J64BCC Romulo Faria Chief, Video teleconference (VTC) Support Branch

Technology Foundation Services (J64C):

J64C Dempsey Hackett Director
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J64C Jose Olivas (Acting) Deputy Director

J64CA Lynette O’Brien Chief, Technology Management Division

J64CAA Lisa D’Angelo Chief, Policy, Control & Support Branch

J64CAB Annette Marcel Chief, Technology/ Configuration Management Branch

J64CAC Patrick Lee Chief, IT Asset Management Branch

J64CB Jay Slothower

Chief, Enterprise IT Architecture, Storage & Industrial 

Support Division

J64CBA James Hartwig Chief, Enterprise Imaging Branch

J64CBB Jeffrey Still Chief Automated Identification Technologies Branch

J64CBC Karen Bailey Chief, COTS Applications, Remote & Tool Support Branch

J64CBD Harry Pfeffer Chief, Storage Support Branch

J64CBE Phillip Donovan Chief, Directory Services Branch

J64CC Vacant Chief, Data Center Internal Division

J64CCA Randell Davidson Chief, Database Services Branch

J64CCB Matthew Lyon Chief, Data Center Management Branch

J64CCC Chad Gandy Chief, Windows Administration Branch

J64CCD Roy Blackmon Chief, Unix Administration Branch

J64CD Sue Ellen Dumas Chief, Data Center External Division

J64CDA Raymond Matrone Chief, Database Services Branch

J64CDB Vacancy Chief, Data Center Management Branch

J64CDC Eric Dickendesher Chief, Windows Administration Branch

J64CDD Patrick Schalk Chief , Unix Administration Branch

7. Key Goals and Initiatives

GOAL 1: Keep our IT systems and services fully operational/mission capable, secure, and 

available for our global users every day. 

In partnership with U.S. Cyber Command (USCYBERCOM), J6 operates, maintains, and 

defends DLA’s portion of the DOD’s Global Information Grid (GIG), while maintaining a global 

perspective of DLA’s GIG assets and providing Agency-specific support to the Global Network 

Operations (NetOps) mission. 

The J63 IT Operations Center (ITOC) serves as DLA’s central point of contact for matters 

concerning the health and availability of enterprise IT systems, business critical systems, and 

local systems that comprise DLA’s portion of the DOD Global Information Grid (GIG). The 

ITOC maintains DLA’s GIG Situational Awareness (SA) capability and provides 24x7x365 

monitoring and escalation for critical DLA enterprise IT applications and the ETN. 

Significant accomplishments and activities performed in 2014:

- Number of Infospots processed: 675

- Number of Immediate Infospots: 334

- Number of SIPR (High side) Infospots: 15

- Number of Business Availability Center (BAC) alerts received: 4,278
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- Number of ITOC Service Desk Remedy tickets created: 2,609

- Number of Personally Identified Information (PII) incidents processed: 76. 

To ensure we maintain our system availability at our goal of 98.5 percent or higher, we have 

identified the following initiatives.

Manage Information Assurance (IA) Programs. 

Human Resources (HR) Summit: March 21, 2014: J61 held a HR Summit with J6 senior 

leaders this week to discuss topics related to our virtual organization. We also addressed some 

future needs/strategies in the areas of recruitment, telework, and training. The discussions were 

extremely productive and informative for all attendees. We appreciated J1 (Shelley DeIvernois 

and Christina Stada) participation and advice during the session. 

 

The Cybersecurity Assessment Program Office in J61 conducted three types of inspections to 

evaluate the Information Assurance posture of the DLA Enterprise. The pre Command Cyber 

Readiness Inspection performed at Philadelphia assisted the newly realigned Enterprise Service 

Areas in their preparations for the USCYBERCOM inspection conducted in June.

Five announced application penetration tests were conducted during the year as listed in the 

following table:

Date Application Environment Type of Assessment

May 5-9, 2014 Joint Contracting and 

Contingency Services

Hybla Valley Application Penetration Test

Jul 21-25, 2014 DOD Electronic Mall DOD

EMALL

DECC Ogden/Mechanicsburg Application Penetration Test

Sep 15-19, 2013 Wide Area Work Flow (WAWF) DECC Ogden Application Penetration Test

Sep 22-26, 2014 Defense Travel System (DTS) CDC1 - Carpathia - Dulles, VA 

CDC2 - AT&T - Annapolis, MD

Application Penetration Test

Oct 20-24, 2014 Defense Agency Initiatives (DAI) DECC Columbus Application Penetration Test
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Finally, the COMSEC Major Command (MAJCOM) performed assessments and staff assistance 

visits at the following locations throughout the year:

Site Date Type of Visit Rating

Ft. Belvoir, VA (Acct 653000) Jan 13-17, 2014 Assessment SATISFACTORY

New Cumberland, PA (CRO) Jan 20-24, 2014 Assessment SATISFACTORY

Dayton, OH (CRO) Feb 3, 2014 SAV SATISFACTORY

Columbus, OH (CRO) Feb 4-7, 2014 SAV SATISFACTORY

Pacific (CRO) Mar 17-21, 2014 SAV SATISFACTORY

Richmond, VA (CRO) Apr 14-18, 2014 SAV SATISFACTORY

Battle Creek, MI (CRO) May 19-23, 2014 SAV SATISFACTORY

Philadelphia, PA (CRO) Jun 9-13, 2014 SAV SATISFACTORY

Tracy, CA (CRO) Jul 14-15, 2014 SAV SATISFACTORY

Europe & Africa (CRO) Sep 08-12, 2014 SAV SATISFACTORY

Japan (CRO) Sep 29- Oct 3, 2014 SAV SATISFACTORY

Manage Infrastructure. This initiative consists of the following projects to manage the IT 

infrastructure.

Enterprise Mobility: The DIACAP process and the full Authority to Operate (ATO) for the 

Good infrastructure necessary to support DLA’s iPads were completed. The risk assessment and 

the operating procedures were documented in the CONOPS for Enterprise Mobility with Good 

infrastructure. 

DLA Information Technology Asset Management (ITAM): The goal of the ITAM initiative was 

to implement an Enterprise tool designed to ensure accountability/auditability for IT assets from 

acquisition to disposition. ITAM uses Enterprise business practices that join inventory with 

financial and contractual functions. This included DLA requests for hardware/software, 

procurement management, life cycle management, redeployment, and disposal management. J62 

provided program guidance, while J64 provided functional sponsorship.

Beginning in January 2014, all DLA IT Assets were converted from DLA site inventories to a 

single DLA Enterprise IT Asset system, tracked by location. As we moved forward under the 

new realigned organization, TFS Asset Management teams fine-tuned DLA site location of 

assets in the asset tracking system, Information Technology Asset Management (ITAM); 

combining all DLA sites locations assets and treating them as “One DLA” assets, shared by all. 
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This allowed each TFS Asset Manager to request assets on hand at other locations to fulfill our 

customers’ needs. This change provided faster delivery times and is very cost effective. It also 

keeps Asset Managers at any location in tune with other asset managers for future stock 

replenishment needs. All of these changes provide better support to our DLA customers.

 Status at the end of FY14 included the following J62 accomplishments:

o Deployed Analytics (enhanced and improved reporting capability)

o Provided ITAM Analytics DCO Training/Standard Operating Procedures to J64

o Atrium Discovery Dependency Mapping /Configuration Management Database 

Integration

 Scans to locate hardware/software on DLA Network

 Automated load of assets directly into ITAM’s database

Enterprise Email Migration: The goal of this effort is to upgrade from Exchange 2003 to 

Exchange 2010 and consolidate infrastructure locations supporting Exchange mailboxes and 

Blackberries. This effort aligns with the goals of Federal Data Center Consolidation Initiative 

(FDCCI) to reduce energy, reduce costs, and improve IT Security. Benefits include centralized 

management and Enterprise approach to message management, Exchange server standardization, 

email archiving and enhanced monitoring and analysis capabilities. This project is an interim 

step in preparation for the longer term transition to DOD Email or Cloud Email services. During 

the past year, we upgraded the Pacific and Europe Exchanges to 2010.

DLA Data Center Consolidation Initiative: This effort is DLA’s Technology Foundation 

Services implementation of the Office of Management and Budget memorandum directing the 

inventory, consolidation, and overall reduction in the number of Federal data centers called the 

Federal Data Center Consolidation Initiative (FDCCI). This consolidation effort focuses on four 

objectives: 

 Promote the use of Green IT (less energy use) by reducing the overall energy and real estate 

footprint of government data centers.

 Reduce the cost of data center hardware, software, and operations.

 Increase the overall IT security posture of the government.

 Shift IT investments to more efficient computing platforms and technologies.

In the past year, one data center was closed in the Pacific; one Logistics Information Services 

data center was closed; Richmond, New Cumberland and Columbus were designated as 

Installation Processing Nodes (IPNs); and Dayton and Tracy were designated as Special Purpose 

Processing Nodes (SPPNs).

Virtual Desktop Initiative (VDI): Deployment of the VDI infrastructure has been extended to 

over 360 thin clients with approximately 125 user sessions (Home Use and VDI). VDI was also 

deployed to approximately 50 contractors who were moved out of the Hybla Valley facility in 

support of the Director's initiative to close that site. As a result of the initial deployment, we 
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have decommissioned the Citrix Farm in New Cumberland (12 servers) as well as the Citrix 

Farm in Richmond (15 servers).

Reverse Proxy: DLA designed and implemented a Reverse Proxy solution in order to meet the 

CTO Tasking 10-065. Network and Telecommunications Services (NTS) implemented two 

CONUS Reverse Proxy DMZs on the Enterprise Telecommunications Network (ETN). DLA 

provided field sites with multiple training sessions and technical assistance to migrate existing 

internet/public facing applications into one of the Reverse Proxy DMZs. 

802.1X NAC Solution: The DLA LAN security design was disparate (by Activity) and lacked 

the ability to scale and be centrally managed. More importantly, the existing DLA LAN access 

control as a whole did not meet the DISA FSO STIG (Layer 2 Switch: NET-NAC-009). DLA 

implemented the 802.1X NAC solution in order to meet the DISA STIG requirements for 802.1X 

and provide the recommended NAC policy enforcement necessary to protect DLA from rogue 

network endpoints, provide centralized access control, and device discovery / classification. It 

delivers port-based network access control, which provides DLA with authentication and data 

privacy as part of its extensible security framework. 802.1X is a port-based authentication 

industry standard and best practice for NAC. The 802.1X NAC solution was originally designed 

to support wired networks but was adapted to address DLA’s WLAN security concerns because 

of its extensible security framework, powerful authentication and data privacy capabilities. The 

802.1X framework utilizes the secure exchange of user and/or device credentials, and prevents 

virtually any unauthorized network access since authentication is complete before a network IP 

address has been assigned. 

Wireless Intrusion Detection (WIDS): NTS implemented and configured a DISA STIGcompliant WIDS solution using the DLA approved solution, Aruba, for DLA Headquarters and 

satellite locations, Richmond, San Joaquin, New Cumberland and Mechanicsburg. The solution 

is designed as a centralized architecture with WLAN controllers used to manage hybrid access 

point (AP)/monitoring sensors, supported by server-based software applications and select 

operating system software modules. These system components were configured to provide 

enterprise WIDS capability. The centrally located WLAN controller operating system and the 

server-based AirWave NMS supports functionality such as: Network discovery, AP and 

controller configuration, Automated compliance audits, Real-time and historical trend reports, 

Ability to monitor multi-vendor equipment through Simple Network Management Protocol 

(SNMP)v3 for device status, Firmware distribution, Monitoring of devices connected to the 

network, thin, thick, and mesh network architecture.

The Aruba solution has been approved for use at all DLA-owned locations to be managed by 

Cyber Security (CS) and Network and Telecom Services (NTS). 

Radio and SATCOM: From June-September 2014, NTS replaced the 10 year old trunked radio 

system at DLA Richmond. The DLA Richmond Radio System was upgraded from a Motorola 

ARC4000 to a Motorola M3-Core. Initial work began in June 2014, and ended in September 

2014 with acceptance of the system. The new system provides over-the-air encryption for radio 

communications. Additionally in September 2014, NTS performed relocation and reutilization 
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of the trunked radio equipment from the closed Distribution depot at Lathrop, CA to Tracy, CA 

without radio service interruption to the users.

From September–November 2014, NTS obtained host nation approvals and frequency licenses 

for Satellite Communications and Land Mobile Radio communications in support of Operation 

Unified Assistance (OUA) in Africa. Recommended and advised J63 Contingency Operations 

personnel on the types and usage of Satellite equipment to support OUA. 

During the period of October-November 2014, NTS augmented J63 Contingency 

Communications and J6 Europe/Africa personnel by deploying to Afghanistan to install and 

configure Satellite Communications and provide IT support for new Disposition Services sites. 

Modernize Enterprise Application Monitoring:

a. Began monitoring with the DLA BSM the following applications for DLA Document 

Services: 

 ASSIST - Acquisition Streamlining and Standardization Information System 

 TPS - Travel Pay System

 CEDMS - Corporate Electronic Document Management System

 DSO - Document Services Online 

 TODPG - Technical Order Distribute and Print Gateway 

b. Began monitoring with the DLA BSM the following applications for DLA Logistics 

Information Services: 

 MEDALS – Military Engineering Data Asset Locator System

 CAGE - Contractor and Government Entity 

 PUBLOG – Public FLIS search

c. Terminated BSM monitoring due to retirement of the following applications:

 EBS DPACS - EBS DLA PreAward Contracting System

 LOLA Classic - Logistics On-Line Access

 DLA Energy Bulk Ports, Ground Ports, Distribution Plans and Fuels FES

Enterprise Telecommunications Network: During FY14, NTS maintained 98.5% uptime across 

the Enterprise Telecommunications Network/Secure Enterprise Telecommunications Network 

(ETN/SoETN).

GOAL 2: Deliver new IT systems and capabilities to our DLA and DOD users on cost and 

schedule. 

FY14 Program Deliverables: In FY14, the PEO continued to deliver, deploy and sustain 

programs on time and within cost/schedule/performance parameters. The FY14 metric was to 

deploy 90% of program capability deliveries on time. In FY14, J62 fielded 33 deliverables early, 

84 on-time and 13 met revised target dates for an actual FY14 rate of 97%.
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PEO Sustainment Metrics – Measures of Success: In February 2014, the CIO approved the 

recommended Sustainment Metrics for the PEO Enterprise Portfolio. These metrics are:

 System Change Delivery, System Change Accuracy, System Change Cost

 Service Request Delivery and Accuracy

 Problem Ticket Delivery and Accuracy

 Cost Per User

 System Availability

A 3-month trial was conducted from July to September 2014 with selected programs/portfolios 

to develop the capability to capture and report these metrics. The PEO is in the process of 

validating the metrics and adjustments will be made as needed.

J62 Rationalization Effort: In FY14, J62 continued the rationalization of DLA applications that 

it assumed control over as a result of the J6 organization realignment. The goal of rationalization 

initiative is to design the best organizational alignment and processes to support the applications 

while developing strategies to decommission them. This effort involves adding capabilities into 

DLA Enterprise applications or by reconfiguring current DLA Enterprise applications to 

leverage existing technologies. This in turn will drive long-term savings associated with the 

costs of hardware, software, maintenance, testing, storage, personnel and information assurance 

support costs.

An initial review was conducted of approximately 500 applications with the following results: 

50 applications were identified that were in the process of decommissioning; 170 applications 

were recommended for decommissioning; 190 applications were recommended for sustainment; 

and 80 applications are under review. In FY14, Program Managers (PMs) were assigned within 

the major categories of these applications to pursue decommissioning from the perspective of 

that which was in process or planned, recommended, or under further review. For the 170 

applications that were recommended for decommissioning, the effort necessary varied by the 

particular application and also included stakeholder engagement, the building of capabilities in 

other Enterprise solutions, and/or business process training or reengineering. The rationalization 

schedule varied by the individual application under review. Of the 190 applications 

recommended for sustainment, J62 conducted a comprehensive review to validate the need for 

doing this. The review conducted in a forum established by the Stakeholder Integration 

Directorate. 

J62 decommissioned a total of 112 applications in FY14 against a FY14 goal of 110. 

Engage SAP to Drive Efficiencies in Enterprise Business Systems (EBS): The purpose of this 

initiative was to partner actively with SAP in performing a Solutions Review of EBS to identify 

areas where J62 could reduce costs through the elimination of software customization in favor of 

using standard SAP functionality. The effort also included a review of system 

monitoring/management capabilities that were available, but not in use within DLA. 
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Recommendations from the Solutions Review were analyzed and implemented where costs 

savings and improved operations were identified. 

The detailed work behind this effort involved an analysis of the Solutions Review report 

provided by SAP and identified those recommendations that were determined feasible to 

implement with an associated positive return on investment (i.e., will reduce the cost to operate 

EBS). The goal in FY14 was to reduce overall EBS operating costs by 20% from FY13 levels.

 Status at the end of FY14: 93 recommendations from SAP to improve EBS efficiency

o 16 rejected; 28 completed

o 39 in process

o 325 custom objects recommended for elimination – potential savings $9.75 

million

o 29 custom objects may be replaced by standard SAP – additional potential savings

o 10 not started, dependent on:

 Enterprise Data Strategy

 SAP subject matter experts

The FY14 metric for this initiative was based on the percentage of requests for changes 

generated by June 30, 2014 for at least 90% of the SAP recommendations targeted for 

implementation. The actual metric achieved was 95%.

The next steps have been to retire custom objects and evaluate SAP standard functionality.

IT Service Request (IT-SR) Standardization. The goal of the IT Service Management (ITSM) 

initiative was to establish a DLA owned Enterprise solution that would integrate the Enterprise 

Help Desk and the ITAM Remedy versions into a single Enterprise ITSM solution. The 

incremental implementation of this initiative was designed to streamline service delivery and 

improves response to customers across the Enterprise.

 Status at the end of FY14 accomplishments included:

o Realignment Support

 Remapped EHD Remedy from site specific operation to ESA support 

groups

 Created Incident, Service Request and Escalation Management SOP’s

o Integrated ITSM Solution

 Defined scope and action plan for Enterprise ITSM solution

 Identified Critical Path tasks, interdependencies and technical issues

 Service Pack 5 upgrade, ADDM/CMDB integration, J64 TFS 

upgrade (v 8.1) & standardization of ITSM foundational data 

 Single consolidated Enterprise License Contract award

 Combines 21 “license contracts” into one contract
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 DLA savings of $500K per year

 Finalize requirements for ITSM solution

 Incident, Service Request, Problem Management, Asset 

Management, Self-Service Portal, Ticket Routing and Reports

 Schedule will be provided 2 weeks upon receipt of requirements

 Delivery of New Requirements

 Change Management, ECRT, Service Desk, DISA interface 

o Change Management delivered during initial deployment 

(Phase 1)

o ECRT, Service Desk, DISA requirements (Phase 2)

DISA Cost Savings. One of DLA’s goals for FY14 was to lower the DISA cost. Towards that 

goal, DLA identified two major savings areas. The first was data storage costs which represent 

20 percent of the DISA bill. The second savings area centered on “customized services”, which 

are enhancements that have been built in to many of our applications, and constitutes 37 percent 

of our total DISA bill. By looking at the two major savings areas, DLA achieved the FY14 goal 

and lowered DISA costs by $39.1M. 

DLA’s initiative to reduce DISA costs involves more effective partnering with DISA in order to 

address and identify business efficiencies and reduce costs without reducing IT services. 

Through this initiative, DLA re-evaluates standard versus custom solutions, achieves more 

upfront involvement on requirements determination, partners on emerging technologies, and 

applies more emphasis on strategic versus tactical engagement. This strategic engagement will 

increase leverage of DISA Enterprise Services, consolidate and virtualize servers, implement an 

aggressive archiving strategy, and improve efforts to “right size” solutions to fit DLA’s needs.

Level 1 Enterprise Help Desk (EHD) Consolidation. J63 brought all geographically separated 

help desks under the umbrella of the EHD and standardized and flattened our IT services, 

gaining efficiencies while simultaneously saving money. We have given all of our 28,000 DLA 

users the ability to get 24/7 support from the same place whether they are in the office, working 

from home or on the road TDY. We are now funneling all of our IT requests for service through 

one capture point, allowing us to better analyze trends and workloads leading ultimately to more 

robust and efficient IT service. We are nearing 100% completion of this initiative and well on 

our way to realizing savings in excess of $2.7M over the next 6 years. Our consolidation will be 

fully complete with the transition of the DLA Energy Help Desk (formerly BSM-E), currently 

scheduled for 2nd quarter FY15.

Records Management Capability Deployment. DLA Document Services began a multi-year, 

multi-phased implementation of RM in compliance with DOD Instruction 5015.2 (Electronic 

Records Management) for agency-wide records stored in multiple application databases. The 
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DACS-RM project was formally designated as Document Automation Content Services (DACS) 

– Records Management or “DACS-RM”. The solution, based on OpenText commercial off-theshelf software, included deployment of an RM solution for EBS applications as well as records 

collections within multiple non-EBS systems.

 FY14 Metrics: Stand up 5 Business Cycle Teams (BCTs) by Sep 2014

o Green = 5 BCTs compliant

o Yellow = 4 BCTs compliant

o Red <3 BCTs compliant

 Status at the end of FY14 accomplishments included:

o 1 BCT Compliant - 5 BCTs compliant by September 30, 2014

o Finalizing a complete revision of the Agency’s RM procedures manual; 

o Development of RM specific training for the Component Records Officers and 

Records Coordinators that identifies the critical functions needed to create, 

implement and sustain all elements of the RM program;

o Initiating implementation of the RM folder structure within an enterprise level, 

DOD 5015.02 certified RM system;

o Launching an enterprise review of DLA records series and retentions, starting 

with DLA Installation Support, which is the first major review of retentions in 

two decades; and,

o Restructuring the DLA Records Disposition Schedule to better align with the 

National Archives and Records Administration (NARA) General Records 

Schedule format – the first major change to the Schedule in fifty years.

GOAL 3: Assess our performance, policies, procedures, and technologies to improve our 

IT systems, capabilities, and services.

Network and Telecommunications Services (NTS) completed hardware upgrades to all CONUS 

perimeter firewall clusters in order to provide increased throughput and lower CPU utilization.

Completed the DLA Enterprise Network (DEN) LAN consolidations at Barstow, Battle Creek, 

Bremerton, Columbus, Hill, Ft Belvoir, Jacksonville, Mechanicsburg, New Cumberland, 

Oklahoma City, Philadelphia and Richmond. This initiative directly supports a “work from 

anywhere” Enterprise model by optimizing network infrastructure hardware and software while 

removing activity-based restrictions currently prohibiting application interoperability and user 

mobility.

NTS completed upgrades to the cable plans to enhance/improve network infrastructure. One of 

which was the migration of all 68 closet switches in Richmond, VA to dual 10Gbps connections. 

In conjunction with 10Gbps migration, during this process we re-terminated approximately 25% 

of all 10Gbps circuits (to include mid-point patches) due to issues related to back reflection.
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 Installed fiber infrastructure to migrate security cameras from inactive wireless network 

to hard-wired network. Work with facilities to bring up cameras after sitting dormant for 

more than 3 years. 

 Support of the design of the new Operations Center Building up to 95%.

 Installation of structured cable pathway and OSP connection in Building 24, to support 

ongoing renovation.

 Installation of structured cabling pathway and cable connection (approximately 150 

drops) in Warehouse 59, Bays B and C, to support a 31 tenant move in to the space.

 Cable and facilitate the move of the cafeteria to the officers club to allow for a refresh of 

the existing cafeteria.

 Installation, support and replacement of warehouse inventory and stock picking related 

wireless access points and end user terminals.

 Installation, support and replacement of base owned CCTV monitors and set-top-boxes.

 Installed pathway and cabling to 168 locations in support of the WIDS project. Assisted 

with the site survey for Richmond. Installed all WIDS Access Points and verified 

connectivity. 

 Installed pathway and cabling associated with the DBIDS project.

 Worked on the initial data collection and recommendations to upgrade all of DLA 

Richmond data closets to make them TIA/EIA, UFC 580 and Code compliant in 

preparation to migrate to VoIP. 

Enhanced Video Teleconferencing Infrastructure: NTS installed 6 VTC Rooms and equipped 5 

training rooms with VTC facilities at the Suffolk Building. Additionally installed 2 VTC rooms, 

and equipped two training rooms with VTC facilities at Lorton building, and installed 3 VTC 

Rooms in Philadelphia and 3 VTC room at Fort Belvoir. 

Manage Technology Insertion. This initiative focuses on efficiently and effectively 

introducing new technologies into the DLA Enterprise, or consolidating existing technology into 

a singular enterprise system, or extending new capabilities in order to improve customer service 

levels. The following technology roadmap shows the timelines and milestones for our efforts, 

which will directly affect DLA end users.

Active Directory (AD) Restructure: This ongoing Technology Foundation Services project

consolidates existing DLA Active Directory (AD) infrastructures into a single DLA Enterprise 

system. These critical AD systems provide authentication, authorization, applications, resources, 

security policy enforcement, and messaging functions across DLA. Presently, each PLFA or 

major organization has an instance of AD. This effort will consolidate the various instances into 

an Enterprise AD, while also migrating all users, workstations, servers, and applications into the 

new Enterprise system. The full implementation will enable DLA to reduce support and 

maintenance costs, improve user logon times, and implement consistent policies across the 

enterprise, which will expedite helpdesk and troubleshooting times. To date, all users and 
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workstations have been migrated to DIR, the Enterprise Active Directory Domain. 64% of all 

eligible servers have been migrated.

Modernize Telework Infrastructure: Virtual Desktop Initiative (VDI) and the Citrix Home Use 

Initiative are being utilized by many of the current Teleworkers supporting the pilot project in 

New Cumberland. The VDI team has been able to stabilize the VDI Farm in order to support the 

Home Use users during Telework.

Continuity of Operations Plan (COOP)/Disaster Recovery (DR) Planning: The Cyber Security 

COOP/Disaster Recovery (DR) team identified DLA’s 29 Critical Business Systems, validated 

its accuracy with DLA Senior Leadership, and moved to increase the DR/COOP capabilities for 

the identified systems. The Disaster Recovery posture for DLA IT systems was improved by 

implementing more frequent functional tests. Resources were dedicated to audit recovery plans 

with more scrutiny and on a more frequent basis to improve responsiveness to DR/COOP Audit 

findings and prepare IT systems to meet future Audit Readiness requirements. The team also 

improved DLA’s partner relationship with DISA by moving key business systems to their 

standard disaster recovery (COOP) offerings. 

Mobile Command Vehicle (MCV): The MCV enables an Initial Response Team (IRT), or other 

DLA elements that may deploy, to support a domestic natural disaster relief effort under the 

Defense Support to Civil Authorities (DSCA) umbrella. The MCV design supports a seven 

person IRT in addition to the Communications team and provides fully integrated mobile 

business capability, which can deploy in the event of a domestic disaster response requirement. 

In FY14, we continued to enhance and maintain deployment ready CONUS based MCV 

capability.
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MCV Communications for FY14:

FY 14 Event Location Customer

OCT Tropical Storm Karen (prepare to deploy) - cancelled JLOC/IRT

DEC DLA COOP EX Columbus, OH JLOC

FEB Northeast Winter Storm Warning Columbus, OH JLOC

MAR/

APR

CAPSTONE EX Elmendorf-Richardson, Alaska JLOC/IRT/NORTHCOM/FEMA

MAY DDE Readiness EX/ARMY BCT drawdown Fort Knox, KY JLOC/DLA Distribution

JUN Quartermaster Liquid Logistics EX Fort A.P. Hill, VA DLA Energy

JUN IRT Orientation Training New Cumberland, PA JLOC/IRT

JUL Tropical Storm Arthur Fort Bragg, NC JLOC/IRT

Objective: Maintain MCV capabilities and emergency essential staffing for responding to 

contingency operations.

Metric: Deliver and establish DLA network communications for contingency operations within 

24 hours (CONUS) or 72 hours (OCONUS) of receiving the execution order. 

FY14 Status: Green – Equipment and teams have met all objectives and metrics .

Ecommerce (FedMALL): The goal of FEDMALL is to be the premier Ecommerce solution for 

Department of Defense, Federal, State and Local government entities, and Foreign Military Sales 

customers. It will streamline the process for vendors doing business with the government. 

FEDMALL will replace the current DOD EMALL and the General Services Administration’s 

Advantage systems, which will reduce functional duplicity and IT footprint.

In FY14, the initial functional requirements for FEDMALL were gathered (continuous process) 

from primary stakeholders. The program management office finalized the Concept of 

Operations with OSD and GSA and formed an Integrated Product Team with the Services and 

DLA to identify specific business rules and address DLA audit readiness concerns. The Request 

for Proposal for the next generation development contract was issued in August 2014. 
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Section 508 Metrics: DLA Enterprise Test Directorate has the responsibility of making sure all 

IT Systems owned by DLA meet the Section 508 requirements established in the Rehabilitation 

Act of 1973. It is important that the systems be Assistive Information Technology compatible so 

that DLA can continue to improve accessibility for IT capabilities to support users with 

disabilities. 

 53 Enterprise complaints were received by 3rd quarter FY14

o 6 Tickets, Centralization of 508 EHD Initiative

o 1 Closed

o 5 In Process

 Working with EEO on survey that will advise of 508 issues/concerns

o 47 EBS Complaints Received from EBS Summit

o 43 Closed

o 4 In Process to be completed by August 1, 2014

o Updated EBS 508 Accessibility Desktop Setup document; distributed to Enterprise 

Help Desks; now used for configuring user desktops

Maps On Demand. DLA Document Services, DLA Aviation, DLA Logistics Information 

Service, and DLA Distribution have partnered with the National Geospatial-Intelligence Agency 

(NGA) to develop a “maps on demand” capability, enabling on demand and online access to 

NGA maps/charts and CDs/DVDs. In July 2013, limited production of NGA maps/charts and 

CDs/DVDs began at DLA Document Services Richmond, Virginia facility, with a phased 

transition to full production at five on-demand facilities by January 2014. 

There will be a transition period, during which shelf stock maps will decline and on-demand 

maps will increase. Once fully implemented, the DLA Document Services on demand operation 

and GPO term contractors will be producing several million maps a year. This initiative will 

result in printing, warehousing, and shipping cost savings for NGA and DLA. More importantly, 

this initiative will help ensure that Warfighters and other federal agencies always receive the 

most up-to-date 

edition of maps and not obsolete shelf stock. In addition, supply will be more closely aligned 

with demand, which will significantly reduce an overstock or understock scenario. 

In FY14, all maps on demand sites are operational – located at Document Services facilities in 

Richmond, Norfolk, San Diego, Ramstein Germany, Pensacola, Pearl Harbor and Yokosuka 

Japan. There is also a back-up facility at Quantico.

Printers/Multifunctional Devices Consolidation. The June 2013 FISMA data identified 

17,053 office document devices-network and stand-alone copiers, printers, multi-functional 

devices (MFD). An August 8, 2013 DLA Chief of Staff Policy letter called for equipment 

assessments to be performed for all DLA PLFAs and J/D Codes by DLA Document Services in 

FY14. The assessments will provide a review of current device inventory with costs and 

recommendation for an optimal mix of devices with costs. The assessments will identify savings 

associated with implementing the optimal device mix. All assessments across DLA have been 
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completed over 200 individual visits. Savings were originally projected at $3M annually and the 

revised projection will be $6M annually.

GOAL 4: Develop our IT professionals to ensure they are fully prepared to meet the 

challenges of providing world-class IT services today and well into the future. 

Maintain a highly trained and certified IT workforce. Network and Telecommunications 

Services continues to ensure that all personnel are compliant with Information Assurance (IA) 

and Computing Environment (CE) certifications IAW DODD 8570.1 and receive training for 

new skillsets to support new products or upgraded products in DLA.

APPENDIX A

FY14 SIGNIFICANT ACCOMPLISHMENTS FOR DLA DOCUMENT SERVICES

DLA Director’s Big Ideas. Printing Automation - The core of the Document Services mission 

is to transform how the DOD accesses documents from the use of traditional printing processes 

to automated processes - the production of documents on-demand and/or access to digital 

documents on-line. This more efficient means to store/access/output documents is cheaper to the 

customer. Our FY14 savings target is $800K and our actual savings through June is $1.4M. 

Reverse Auctions / Long Term Contracts - To support their Equipment Management Solutions 

(EMS) program (office document equipment in customer workspaces), Document Services has 

developed and awarded a multiple-award, indefinite delivery/indefinite (IDIQ) contract, that 

incorporates reverse auctions for each delivery order placed. This reduces vendor costs while it 

shortens the procurement lead time. Our FY14 savings target is $2.6M and our actual savings 

through July is $8.9M.

White House Support. Our J6 Team of individuals who work at the White House facility 

(located in the Old Executive Office building) have worked through extreme weather conditions, 

nearly impossible deadlines, and constantly shifting priorities to ensure that the President of the 

United States, First Lady, and staff working in support of the Administration receive exactly 

what they need, when they need it. Products include such items as tickets for Administrative 

functions, Staff itineraries, Travel plans and information, name tents/tags to identify dignitaries 

at the various functions and the “State of the Union Address”. Often, the Secret Service is 

standing by to rush finished products to a waiting Air Force One or session of Congress. 

Recently, one of our J6 team members of the White House Document Services staff was honored 

at a ceremony in the Pentagon Courtyard for the 2014 Department of Defense National Capital 

Area Public Service Recognition Week "Spirit of Service" Recognition Award, and the White 

House production facility was prominently featured in a Loglines article in the July-August 2014 

issue. 
DLA Information Operations (J6)

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Army Medical Department Center and School (AMEDDC&S). Ft. Sam Houston – Major 

scanning and conversion initiative (5M pages) for the Army Medical Department and School at 

Fort Sam Houston to improve processes and records management compliancy. The scanning is a 

multi-year requirement with an initial 5 million pages to be scanned and loaded into the J62 

managed application Document Automated Content System (DACS). Upon completion of phase 

1, an additional 5M pages will be scanned and processed. The customer goal is to reduce the 

foot print for warehousing of these paper documents and full compliancy for a paperless record 

management process. 

Cadastral Modernization Program. Document Services provided document conversion 

services and support for the electronic capture, reconciliation and electronic record storage of 

Naval Facilities Engineering Command (NAVFAC) Cadastral Modernization Program (CMP) of 

over 2M documents for ease of reference, retrieval and electronic document management. The 

CMP is a business solution powered by a geospatial platform for the data management of real 

estate land assets. The goal is to achieve a fully integrated system for land records management 

to increase the accuracy, authority, and accessibility of real estate information.

APPENDIX B

FY14 SIGNIFICANT ACCOMPLISHMENTS FOR DLA LOGISTICS

INFORMATION SERVICES

Realignment. Under the DLA Information Operations (J6) realignment DLA Logistics 

Information Service became DLA Logistics Information Services and resides under Stakeholder 

Integration Services (J63). We provide interoperable, integrated, quality logistics data for the 

Military Services, the Department of Defense (DOD), other federal agencies and international 

partners in order to optimize the effectiveness and efficiency of the DOD Supply Chain. Under 

the realignment, DLA Logistics Information Services has seven divisions – four cataloging, one 

customer support, data services and data processes division.

Federal Catalog Process Owner Services:

 The Federal Logistics Information System (FLIS) Portfolio System Manager and the Federal 

Catalog System Process Owner from DLA Logistics Information Services engaged with 

DLA Troop Support and the Defense Medical Logistics Item Identification System 

(DMLIIS) Program Manager for a system information sharing session. This was the first of 

three meetings and the goal for this meeting was to discuss system capabilities that support 

the Cataloging and Medical item missions. Overviews were provided for FLIS, the FLIS 

Portfolio Workbench, Electronic Cataloging, WebFLIS, the FLIS Portfolio Data Warehouse, 

DMLIIS, Medical Master Catalog, and the Prime Vendor Data Interface. The engagement 

will continue with the focus of the next meeting being system demos.
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 April 08, 2014, DLA Logistics Information Services and Air Force subject matter experts 

met to explore the possibility of utilizing existing Federal Logistics Information System 

(FLIS) Portfolio applications to perform item master cataloging related functions currently 

performed in Air Force legacy systems. The joint team is working on a gap analysis related 

to the functionality present in both the Air Force and DLA systems. This is an opportunity 

for the Air Force and DLA to gain efficiencies through business process re-engineering and 

system integration. 

 On August 20, 2014, DLA Logistics Information Services kicked off discussions on user 

requirements for Web Federal Logistics Information System (WebFLIS) from the Matching 

Acquisition Strategies to Industrial Capabilities (MASIC) research and development project. 

Participants included DLA Land and Maritime, J74, and J3313. The DLA Logistics 

Information Services requirements team will develop and document the user requirements for 

the J6 front door process.

Logistics Data Dissemination:

o 40.3M Federal Logistics Information System transactions

o 413.4M FLIS Portfolio Data Warehouse transactions

o 8.6M Universal Data Repository transactions

o 44.1M Military Engineering Data Asset Locator System transactions

o 35.3M WEBFLIS queries

o 315.6K Information products distributed

o 24.2K Tailored Data Products

 DLA Logistics Information Services met with representatives from the NATO Support 

Agency (NSPA) to discuss and answer questions on the DLA mandate to transition from File 

Transfer Protocol to Secure File Gateway (SFG). NSPA is the information hub for all data 

transactions going to and coming from NATO and partner countries. The U.S. is an integral 

part of the logistics data shared amongst participating countries.

Joint Certification Program:

o 6.9K Applications Received

o 6.2K Certifications Processed

 Reduced the processing time for applications for the Joint Certification Program from 30 

days to 5 days to meet the customer demands.

Logistics Data Management Services:

o 117K National Stock Numbers Assignments

o 404K National Stock Number Maintenance Actions Performed

o 239K Demilitarization Code Validations
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o 40K DLA Freight Updates

o 157 Provisioning Conferences Attended

o 150K Technical Data Processed

 Starting October 1, 2013, the DLA Mine Resistant Ambush Protected (MRAP) Joint Program 

Office (JPO) transitioned to a Service led program. Over 27,000 vehicles were fielded, 

thousands of vehicles upgraded and tens of thousands of lives saved or prevented from harm. 

DLA Logistics Information Services contributed to the great success of the MRAP program 

by accomplishing over 30,000 National Stock Number (NSN) assignments.

 October 17, 2013, DLA Logistics Information Services was part of the Clothing and Textiles 

Heraldic's Phased Out National Stock Numbers (NSNs) Continuous Process Improvement 

event. DLA Logistics Information Services individuals were recognized for their 

extraordinary research and analysis skills, process improvement and the cancellation of over 

1,300 NSNs resulting in an indirect cost savings of approximately $828,000 over FY13 and 

FY14.

 October 28, 2013, the DOD Demilitarization Coding Management Office (DDCMO) started 

implementing new export control reforms to ensure DEMIL coding is in compliance with the 

new law President Obama signed in March 2013 to consolidate the handling of export 

licenses for United States (U.S.) manufactured goods. The new law combines the U.S. 

Munitions List, Commerce Control List, and Trade Security Controls into one listing 

comprised of 21 categories within DOD Manual 4160.28 (Defense Demilitarization 

Procedural Guidance). Updates to the categories are being implemented in a phased 

approach which began October 15, 2013, and will continue through calendar year 2014. The 

first 2 of the 21 categories updated were Aircraft and Turbine Engines.

 February 4, 2014, DLA Logistics Information Services agreed to provide freight data for 

GSA managed National Stock Numbers (NSNs). In the freight challenge process, Mr. Jawad 

(Joe) Abdeljawad from the Engineering and Cataloging Division (QSDEC), Center for 

Supply Acquisitions (QSDE), Office of Supply Operations (QSD), Office of General 

Supplies and Services (QS), FAS/GSA, has given DLA Logistics Information Services 

permission to resolve freight issues. This will increase the timely processing and shipping of 

all GSA NSNs to the Military Services. 

 May 2, 2014, The DLA Logistics Information Services completed a project to develop a new 

approved item name for pork free Meals Ready to Eat (MREs). MEAL, INDIVIDUAL, 

PORK FREE (INC 69127) has been approved for use. This change was required to facilitate 

proper labeling of cases of MREs being shipped to Muslim countries.
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 DLA Logistics Information Services participated in the “Big Six” DLA/GSA initiatives by 

supporting the logistics reassignment of GSA items in Federal Supply Group 80 over to DLA 

management. On March 4, 2014, 4,500 transactions were processed to transfer material 

management from GSA to DLA with a June 1, 2014, effective date. The remaining 250 

transactions were processed June 2, 2014.

 August 6, 2014, successfully executed the annual price update process in the Federal 

Logistics Information System (FLIS). Approximately 4.3 million unit prices on National 

Stock Numbers (NSNs) were updated with an October 1, 2015, effective date. Nearly 4 

million of the NSNs are DLA managed.

 August 18, 2014, as a part of the annual price update process, processed approximately 

162,000 Navy transactions over the weekend to update repair net price information in the 

Federal Logistics Information System. All of these updates carry an effective date of 

October 1, 2014. 

 The Military Services and the JSF Program Office prepared a draft implementation strategy 

plan to transfer supply chain management responsibility for the F-35 aircraft from contractor 

support to DOD. Within the plan, the assignment of National Stock Numbers to F-35 parts is 

identified as a key enabler. Thus, DLA Logistics Information Service's current cataloging 

initiative with the JSF contractors stages DLA to support this strategy when the JSF Program 

Office receives approval. 

 In support of Time to Award, DLA Logistics Information Services completed detailed 

analysis on 30,000 National Stock Numbers (NSNs) identified by DLA Troop Support. 

Comparison was done on the Reference Number data in the Federal Logistics Information 

System (FLIS) to the Enterprise Business System (EBS) to ensure synchronization. There 

were 23 incompatibilities that were identified and immediately corrected.

 June 11, 2014, at the request of the United States Army, the DDCMO completed the review 

of 2,492 DEMIL codes on the Kiowa Helicopter (OH-58). The main purpose of the review 

was to validate the codes and to identify any controlled or hazardous items with harmful 

materials. This review was critical to ensure special handling instructions were in place as 

needed and to assist the Army with storage, shipping or disposing of items in the most cost 

effective manner. 

 August 22, 2014, Department of Defense (DOD) Demilitarization (DEMIL) Coding 

Management Office (DDCMO) responded to a request from the Joint Prisoner of 

War/Missing in Action (POW/MIA) Accounting Command based at Joint Base Pearl Harbor 

Hickam to assist in identifying an aircraft engine found in South East Asia. The DDCMO 
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249

was able to confirm that it was a T-53-L engine through photographs. This information helps 

investigators narrow their search and starting point of excavation. The DDCMO provided 

specific technical orders and technical manuals to assist in classifying parts that may be 

discovered in the future. 

 DOD DEMIL Coding Management Office (DDCMO) represents DLA on the Hardness 

Critical Items (HCI) working group in response to the FY14-001 FRAGO Freeze HCI. DLA 

and the United States Air Force (USAF) have “un-frozen” 1,490 items pertaining to the 

Minuteman and Peacekeeper Intercontinental Ballistic Missile, leaving 2,423 more items to 

validate. The partnership between the DDCMO data experts and the USAF and the ability to 

validate this data is critical to ensuring our national security posture by ensuring classified 

items are properly stored and managed. 

North Atlantic Treaty Organization Codification Process Owner Services:

 November 5-7, 2013, DLA Logistics Information Services representatives participated in 

three North Atlantic Treaty Organization (NATO) meetings in Copenhagen, Denmark, as 

part of their international cataloging mission. The NATO committee consists of 66 

participating nations and is a level one committee to the Conference of National Armaments 

Directors. Accomplishments included finalizing the Terms of Reference and outlining how 

the committee operates under NATO rules. The group closed out several action items to 

include funding methodology, relations with China, and Partner versus Sponsorship 

designation. Key Performance Indicators for National Codification Bureaus were reviewed 

and concerns about timeliness and quality were discussed and action items assigned. The 

World Codification Forum focused on partnering with industry. Several key note speakers 

were present; LtGen Per Pugholm Olsen, Commander of Danish Defense Acquisition and 

Logistics Organization, Mr. Ernest J. Herold, Deputy Assistant Secretary General, Defense 

Investment Division, NATO, and Brigadier General Mark Dunn, Head of Support Chain 

Management at United Kingdom Ministry of Defense. Multiple workshops were held to 

include Future Initiatives in Codification, integration between Codification Systems and 

Enterprise Resource Planning systems, and the Role of Industry. The United States (Mr. Ray 

Zingaretti) facilitated a workshop on Contractor Logistics Support and the F35 Codification 

Effort. 

 December 11, 2013, DLA Logistics Information Services provided training to the 

Afghanistan National Army on standing up an operational National Codification Bureau. 

The training was provided at the request of Major Joseph Young, USA, NATO Training 

Mission – Afghanistan. The NATO Allied Committee 135 is the governing body for the 

NATO Codification System (NCS) and assists countries in standing up their National 

Codification Bureaus. The NCS consists of policies and procedures that facilitate the use of 
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National/NATO Stock Numbers and the associated data for an item of supply enabling 

supply operations (stock, store, issue). 

 December 11, 2013, at the request of Major Robert Hill, USA, of the Defense Security 

Cooperation Agency, the U.S. NCB facilitated an overview of the NCS and the associated 

codification systems which are currently available for participating NATO and Sponsored 

Nations in AC/135. These codification systems provide the capability of sharing data 

between these partner nations.

 February 26-28, 2014, DLA Logistics Information Services hosted the 7th Allied Committee 

135 (AC/135) Technical Steering Group (TSG) meeting. There were representatives from 8 

nations and the NATO Support Agency (NSPA). The TSG is responsible for assessing 

processes and the need for technical solutions for the NATO Codification System (NCS). 

Topics included the adoption of XML for the NCS, volumetric data, applicability data and 

the development of a user interface for maintenance transactions. Along with the United 

States, the other nations in attendance were Australia, New Zealand, Canada, Czech 

Republic, Finland, France, Germany and the Netherlands.

 As the U.S. representative to the NATO Allied Committee 135 (AC/135) Budget and 

Strategic Planning Committee (BSC), participated in a meeting from March 18-20, 2014, 

hosted by the Austrian National Codification Bureau. The main topics of discussion were the 

restructuring of the NATO Support Agency (NSPA) and how support will be provided in the 

future to AC/135, funding methodology for AC/135 business, leveraging industry 

participation, revamping strategy map to align with current Conference of National 

Armaments Directors (CNAD) Management Plan, data sharing rules and redefining how we 

manage compliance to NATO Standard Agreements (STANAGS). Nations represented at 

the meeting; United States, Canada, Germany, France, Poland, Belgium, Austria, New 

Zealand, and several NSPA representatives responsible for providing support services to 

AC/135. 

 May 8-21, 2014, DDCMO working with the United States Forces-Afghanistan Fusion Cell 

and Forward Operating Base Shank have validated over 40 Demilitarization (DEMIL) codes 

on items of supply. Validation of these codes ensured only DEMIL ‘A’ (non-munitions list 

and non-commerce controlled) items of excess property are being sold to Afghan forces. 

Originally requests from the Foreign Excess Personal Property (FEPP) managers overseas 

came to the DDCMO routed through the Office of the Under Secretary of Defense, Supply 

Chain Integration and back to South West Asia. DDCMO and FEPP managers established a 

more efficient means of requesting code validations to ensure quicker processing of sales. 

To date, items of supply being validated and sold include metal detectors, vehicle barriers, 

generators, and electrical hardware.
DLA Information Operations (J6)

251

 May 19, 2014, the U.S. Budget and Strategic Planning Committee (BSC) representative and 

the new NATO Process Owner participated in the Allied Committee 135 (AC/135) BSC 

meeting in Luxembourg. The main purpose of the meeting was to finalize the AC/135 Main 

Group (MG) meeting presentation/proposal. The presentation included the proposals for; a 

change in the funding methodology that supports AC/135 operations, travel projections for 

the new 6 months and upcoming system and procedural changes in guidance that governs the 

MG. The MG meeting commenced May 20-22, 2014, in Luxembourg. Topics of 

discussions included; NATO suspension of Russia engagements and how it impacts AC/135 

relationships/operations with Russia, the suspension of other nations from AC/135 due to 

lack of progress in system maturity and/or participation, signing of Morocco as a Tier 2 

nation, cooperation with Allied Committee 327 on requirements for item tracking, review of 

performance metrics on timeliness and quality of all nations and engagements with industry 

and data sharing. The main group consists of 66 participating nations and is a level one 

committee to the Conference of National Armaments Directors.

 

 June 3-14, 2014, the United States Army J5 Joint Staff from the Pentagon hosted the United 

States-Chile Joint Staff talks with two topics being: 1) Joint Logistics Doctrine, and 2) DLA 

Logistic Information Services. As a result, a fact sheet on DLA Logistics Information 

Services and NATO Support Agency engagement was provided. It included criteria for 

Chile to become a Tier 2 country with the NATO Allied Committee 135 and addressed the 

request on how Chile could obtain access to the Federal Logistics Data on Mobile Media 

product. 

Operational Customer Support:

o 597K DLA Customer Interaction Center actions

o Forward Presence

o 3 Permanent 

o Civilian Expeditionary Workforce rotations

o 12K Customers trained on Logistics Data and Tools

 May 18-20, 2014, DLA Logistics Information Services personnel directly supported the 

Juniper Cobra 14 exercise by assisting the U.S. European Command. Training was provided 

on tools used to track, update, and report on key movement operations, both for the exercise 

and daily execution of the Logistics Common Operating Picture. 

 Fire protective material was transferred from General Services Administration (GSA) to 

Defense Logistics Agency (DLA) on May 1, 2014. In support of this new mission, a DLA 

Customer Interaction Center (CIC) customer support specialist worked with GSA, State and 

Local departments, Federal Fire Services and DLA representatives to provide guidance and 
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assist in the development of the ordering process. CIC agents are an integral part in 

educating and providing 24x7x365 support to the customer. Between May and October 

2014, the CIC took 3102 actions in support of the firefighter. 

 On August 14, 2014, DLA Logistics Information Services received a request from JLOC to 

support a Warfighter Support Representative position in Kuwait. This position is 

permanently assigned to DLA Logistics Information Services and will be a 6 month 

rotational billet. 

 Karen Nicholson (DLA Distribution San Joaquin), Darlene Schenone (DLA Distribution San 

Joaquin), and Darrell Pennington (United States Air Force DLA Military Installation 

Management) visited the DLA Customer Interaction Center (DLA CIC) on August 13, 2014, 

to discuss the Material Requisition Order (MRO) entry process. The visitors toured the DLA 

CIC and sat with agents to see how the MRO process works from beginning to end leaving 

with a better understanding of the CIC process for emergency orders. This will help pave the 

way for future discussions related to MRO entry.

 A Civilian Expeditionary Workforce (CEW) from DLA Logistics Information Services 

deployed to Taegu, Korea. The request for additional support was made during a visit to the 

Pacific by VADM Harnitchek. 
DLA Acquisition (J7)

253

Defense Logistics Agency

DLA Acquisition (J7) 

Fiscal Year 2014 Annual Historical Report

1. Introduction

The DLA Acquisition Annual Historical Record (J7 AHR) outlines the actions J7 took over 

the course of Fiscal Year 2014 (FY14) to improve and sustain the effectiveness and

efficiencies service to our customers, civilian and military, internal and external to DLA. It

also provides the key operating goals, initiatives, metrics, and tools used to regularly monitor

our performance to ensure DLA’s Acquisition workforce can meet present and future 

requirements

The J7 FY14 AHR is based on the J7 FY14 Annual Operating Plan (AOP) and our results in 

meeting that plan. 

The J7 AOP has three key operating goals and metrics that support the DLA Director’s

Guidance 2014 for decreasing direct material and operating costs and achieving audit

readiness. These key operating goals are:

 Reduce direct material costs and direct cost of fuel through the use of reverse auctions,

commercial-type contract terms, substantial industry partnerships, performance-based

logistics and prime vendor contracts, significantly reduced lead times, and increased

small business opportunities;

 Reduce operating costs by improving buyer productivity and service contracting,

pursuing continuous process improvement initiatives, and implementing best practices

in acquisition; and,

 Achieve audit readiness for financial reporting of the Procure-to-Pay (P2P) business

cycle; and,

The J7 AOP also has three key operating goals and metrics that support the Department of

Defense (DoD) Better Buying Power 2.0 Program focus on acquisition oversight and 

accountability, workforce development, and telework participation. These goals are:

 Incentivize productivity and innovation in industry and government across all DLA

supply chains;
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254

 Eliminate unproductive processes and bureaucracy; and,

 Improve the professionalism of the Total Acquisition Workforce.

The six key operating goals are supported by 24 initiatives that address driving down direct

material and operating costs, achieving financial auditability in P2P, improving acquisition

productivity and innovation, eliminating non-value added processes, and developing and

maintaining a world-class acquisition workforce that is warfighter-focused, globally

responsive, and fiscally responsible. J7 will standardize acquisition and contracting processes

and share best practices across the Enterprise as needed in support of these initiatives.

2. Mission, Vision, and Values

As America’s Combat Logistics Support Agency, we provide effective and efficient

worldwide support to Warfighters and our other customers. We receive guidance from 

the Assistant Secretary of Defense (Logistics and Materiel Readiness), and as a statutory

Combat Support Agency we report to the Chairman, Joint Chiefs of Staff and the

Combatant Commands in providing worldwide logistics support to deployed forces.

DLA is responsible for sourcing and providing most of the repair parts and virtually all

fuel and troop support consumable items used by our military forces. We also procure 

Service- managed depot-level reparables. In addition, DLA provides a broad array of

supporting supply chain management services, including storage and distribution,

reutilization or disposal of surplus military assets, managing Defense strategic

materials, providing catalogs and other logistics information, and supplying a wide

range of document services. We support U.S. allies through Foreign Military Sales and

are a vital contributor whenever this country undertakes humanitarian relief efforts at

home or abroad. We provide human resources management and workforce 

development services to other DoD components.

Warfighter-focused, globally responsive, fiscally responsible supply chain leadership.

Our values are DLA’s foundation for all we do.

They provide our guiding principles as we accomplish our mission, pursue our vision, 

VISION

VALUES
DLA Acquisition (J7)

255

and strive to do what is right for the Armed Forces and DoD:

 Warfighter needs guide us

 Integrity defines us

 Diversity strengthens us

 Excellence inspires us

3. Organization Overview

The DLA Acquisition mission and operations are integral to the achievement of

DLA’s strategic goals and objectives. The DLA Acquisition Directorate (J7) manages

the establishment of procurement policy, and is responsible for oversight of the

Agency’s acquisition operations and contract administration. With nearly $44 billion in 

annual sales, encompassing 5.2 million managed items, J7 provides Agency-level

oversight for DLA procurements to store and distribute food, uniform apparel, bulk fuel, 

engineering and construction equipment, industrial hardware, pharmaceutical, medical

and surgical products, and aviation, land, and maritime equipment and weapons system

repair parts for the military services and other customers worldwide. DLA Acquisition

includes J7 Headquarters (HQ), DLA Strategic Materials, and the DLA Contracting

Services Office (DCSO).

There was a significant change in DLA Acquisition leadership in FY14. 

Specifically, Mr. Matt Beebe fleeted up from Deputy Director to the Director of DLA 

Acquisition in February 2014 upon Ms. Nancy Heimbaugh’s retirement. In turn, the 

Chief of Staff, CAPT Will Clarke temporarily fleeted up to Deputy Director, until 

September, when Ms. Roxanne Banks assumed the position. Additionally, Ms. Yvette 

Burke assumed the newly-established J7 Acquisition Executive position May. The 

Director, Deputy Director, Acquisition Executive, and Chief of Staff comprise the DLA 

Acquisition Executive Leadership Team. 

CONTRIBUTION TO THE AGENCY’S MISSION
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Leadership Team

Rusty Wells

Chief

Glenn Starks

Chief

Joy Mullori

Chief

Kathy Hammer-Wells

Chief

Ronnie Favors

Administrator

Deputy Director serves as:

• Competition Advocate

• Senior Service Manager

• Ombudsman

Lillian Gardner

Director

Mickey Zayas

Chief

Ms. Yvette Burke

Karen Maskew

Chief

CAPT Will Clarke, 

SC, USN

Process 

Management

J71 Policy

Process 

Management

J71 Audit 

Readiness

Chief 

of Staff

On Board Civ Mil

J7 HQ 75 4

DCSO 95 2

DLA Strategic Materials 60 0

Total 230 6

Process 

Management

J71 Systems 

Acquisition

Executive

Director serves as:

• Component Acquisition Executive

• Senior Procurement Executive

DLA Acquisition Director • Head of Contracting Activity

Mr. Matthew Beebe

Deputy Director

Ms. Roxanne Banks

Strategic 

Materials

Acquisition 

Operations

J72 

Hilbert Rodriguez

Business Office

DLA Contracting

Services Office 

Acquisition 

Programs 

J74

Business

Operations

Compliance, 

Oversight 

Acquisition 

Workforce, J73 

ORGANIZATIONCHART
DLA Acquisition (J7)

257

People Currently On-Board/Authorized for FY14

Civilians 209 / 257

Active Duty Military 5 / 5

Active Reservists 1

Authorized Civilian Full-Time-Equivalents (FTEs): J7 has 257 FTEs authorized. J7 

currently scrutinizes vacancies across the organization and requires J7 Director approval for: (1)

filling all vacancies;

(2) all vacancy grade increases; and (3) all hires above the General Schedule (GS) 14 grade level.

J7 currently utilizes summer hire/temp positions as well as Military personnel to supplement its

workforce and reassign resources based on the workforce requirements and effectiveness.

J7 ended the year with an increase in both onboard and authorized civilians (as of September 

RESOURCES

FY14 Budget

• Annual Operating Budget

Labor

Non-Labor

Authorized Civilian FTEs

J7 Headquarters

DLA Contracting Services Office

DLA Strategic Materials

Active Duty Military Billets

Training

Travel

Overtime

(Obj Class 2500 minus training costs)

J7 Headquarters

DWCF

$34.0 M

$22.9 M

$11.1 M

NDSTF

$42.6 M

$10.2 M

$32.4 M

TOTAL

$5.8 M $82.4 M

$2.9 M $36.0 M

$2.9 M $46.4 M

•

•

•

•

•

$101 K

$464 K

$0 K

$323 K

$322 K

$0 K

$424 K

$786 K

$0 K

$2,449 K $0 K $2,449 K

$2,146 K

PERSONNEL – AS OF September 2014
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258

2014);

People Currently On-Board/Authorized for FY15

Civilians 230 / 265

Active Duty Military 5 / 5

Active Reservists 1 / 1

Travel: J7 scrutinizes all travel for trip location and purpose, approves only travel that supports

the mission, and ensures that travel costs are minimized to include using video-teleconferencing

facilities and reducing the number of personnel traveling per trip.

Standard Metrics for Tracking FTEs, Training, and Travel are as follows:

 Green – variances less than or equal to 2% from target;

 Yellow – variances greater than 2% but less than or equal to 5% from target;

 Red – variances greater than 5% from target

Acquisition & Pricing Reviews

Acquisition Workforce Management

Contracting Activities Compliance & Oversight

DLA Enterprise Acquisition Policy

DLA Enterprise Information Technology (IT) & Services Acquisition

Functional Proponent for Procurement Systems

Government Purchase Card Program

Strategic Acquisition Programs & Analyses

Strategic Materials

Acquisition Oversight Role for DLA

FY14 Dollars to Obligate on Contracts $35 B

Current Acquisition Workforce 5,856

Head of Contracting Activity (HCA) Primary Level

Field Activities (PLFAs)

4

Field Activities under J7 HCA 6

LINES OFBUSINESS

SCOPE OF BUSINESS FOR FY14
DLA Acquisition (J7)

259

J7 Headquarters

Acquisition Strategy Review Panels 5

Contract Pricing Reviews 35

DPAP Peer Reviews 5

Integrated Acquisition Review Boards 20

Procurement Letters 65

Procurement Management Reviews 6

DLA Contracting Services Office

Number of Transactions 3,300

Total $ Value of Transactions $950 M

DLA Strategic Materials

Strategic Materials Staffed/Unstaffed Depots 10

Total Number of Strategic & Critical Materials in

Inventory

25

Estimated Market Value of Inventory $1.3 B

Estimated Revenue from Sales $152.3 M

Transfer Payments $68.2 M

Environmental Remediation Projects/Cost 2/$3.5 M

Material/Services-Support Projects/Cost 21/$15.1 M

Congressionally Mandated Recurring Reports Stockpile Report to Congress,

Requirements Report, Annual Materials

Plan

DLA Acquisition Strategic Plan

J7 achieved a major milestone in the DLA Acquisition Strategic Transformation Initiative with 

the J7 Director’s approval of the Acquisition Strategic Plan in early August 2014. The 

Acquisition Strategic Plan has four goals and eight objectives that were developed in a 

collaborative process that began in December 2013 and culminated in July 2014 with a finalized 

plan. Input and feedback was provided at all levels, both within the J7 community and amongst 

the Primary Level Field Activities (PLFAs) and J Codes, as well as from the Alignment Group 

and the DLA Vice Director.

The Acquisition Strategic Plan will serve as the road map by which J7 in collaboration with 

PLFAs and J Codes aligns itself to focus on shaping, guiding, and enabling the DLA Enterprise 

acquisition strategy so that it is mission-focused, agile, and innovative, able to identify and 

resolve high opportunity initiatives, and enables DLA to meet its Big Idea savings goals. This 
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will sanction J7 to identify, establish and lead innovative acquisition best practices across the 

DLA Enterprise, create conditions for continuous savings and performance delivery, and enable 

DLA to be the strategic acquisition provider of choice by delivering responsive, effective & 

efficient solutions. J7 will ensure the acquisition community is strategically aligned and fully 

capable to support PLFAs and J Codes to achieve the agency’s operational objectives and 

respond to emerging requirements.

The next step is to form working teams to develop objective plans detailing proposed actions, 

milestones, targets, and key metrics for each of the objectives. The objective plans will then be 

reviewed at executive-level forums such as the Acquisition Career Program Board and the 

Enterprise Operations Planning Council for discussion and decision dissemination as appropriate 

prior to execution and implementation.

The J7 Director tasked the Program Management Office (PMO) Project Team Lead and the 

CALIBRE master black belt to work with the champions, sponsors, and leads to flesh out the 

expectations, resourcing, timing, scoping, etc. for the objective charters by September 2014. The 

charter timelines will drive the master phasing plan for the objective teams. Participation on the 

teams will be drawn from the J7 Enterprise, PLFAs, and J codes as determined by the champions 

and sponsors for the objective charters.

The Acquisition Strategic Plan’s goals, objectives, sponsors, and objective team leads are as 

follows:

A. Drive the acquisition priorities to ensure agency objectives & operational outcomes 

are met. (Champion – J7 Deputy, Ms. Roxanne Banks; Sponsor – J72 Division Chief, 

Ms. Kathy Hammer-Wells)

1. Establish & maintain collaborative partnerships with Agency-level stakeholders (PLFAs 

& J Codes) to ensure enterprise objectives & operational performance outcomes are met. 

Short Name: A1 – Engage Internal Stakeholders

(Team Lead – Mr. Patrick Ingram, J72)

2. Performance outcomes are transparent, accountable, & consistent across the Enterprise. 

Short Name: A2 – Prove It!

(Team Lead – Ms. Juanita McKee, J72)

B. Develop new business opportunities & strategies through strategic partnerships 

with Federal Agencies, OSD, MILDEPs & suppliers, in concert with PLFAs & JCodes. (Champion – J7 Director, Mr. Matt Beebe; Sponsor – TBD)

1. Establish a coordinated enterprise-wide framework & repeatable process for engaging 

stakeholders & customers to drive efficiencies & identify new opportunities for DLA. 

Short Name: B1 – Engage Customers & Stakeholders

(Team Lead – Mr. Kevin Burke, J7)

2. Establish a coordinated enterprise-wide framework & repeatable process for engaging 

vendors to drive efficiencies & provide innovative solutions to meet the customers’ needs 

identified in Objective 1.

Short Name: B2 – Engage Suppliers

(Team Lead – Mr. Luis Villarreal, J74)
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C. Identify, coordinate, support & implement acquisition best practices agency wide 

through policy, system enhancements and/or process improvements. 

(Champion – J7 Acquisition Executive, Ms. Yvette Burke; Sponsor – J71 Systems Chief, 

Mr. Rusty Wells)

1. Develop and implement a process to identify existing best practices and/or redesign 

current processes into best practices for replication across the acquisition enterprise.

Short Name: C1 – Develop & Implement Current Best Practices Process

(Team Lead – Mr. Mickey Zayas, J71)

2. Develop and implement a process to promptly vet, accept, and consistently replicate 

future best practices across the acquisition enterprise.

Short Name: C2 – Vet & Replicate Future Best Practices

(Team Lead – Ms. Karen Maskew, J71)

D. Align resources & capabilities, including a professionalized acquisition workforce, 

to existing & emerging agency requirements and mission. 

(Champion – J7 Deputy, Ms. Roxanne Banks; Sponsor – J7 Chief of Staff, Captain Will 

Clarke)

1. Strategically align the Acquisition Enterprise across the Agency for existing and 

emerging requirements & mission.

Short Name: D1 – Align Acquisition Enterprise

(Team Lead – Dr. Glenn Starks, J74)

2. Develop & sustain a fully capable Acquisition Workforce able to meet DLA mission 

requirements in both stable & dynamic environments.

Short Name: D2 – Develop & Sustain Acquisition Workforce

(Team Lead – Ms. Joy Mullori, J73)

KEY J7 GOALS, METRICS, AND INITIATIVES ALIGNED TO THE DLA

DIRECTOR’S GUIDANCE 2013

Description: Reduce direct material costs and direct cost of fuel through the use of agile

acquisition techniques leveraging commercial supply chains, without creating redundancy.

Mandate acquisition strategies and policies to drive decreased material costs by changing

policy to provide optimal customer support, reduce material costs, and maximize potential

savings. Maximize use of long term contracts, tailored logistics support, performance based 

logistics, and automated buys; maximize use of reverse auctions as a pricing tool; and

minimize manual buys.

Other Strategies

 Commercial-type contracts (PBLs, Prime Vendors, etc.)

 Substantial industry partnerships (“Captains of Industry”, etc.)

GOAL 1: DECREASE DIRECT MATERIAL COSTS ... “BE SMART BUYERS OF THE RIGHT STUFF”
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 Significantly reduce lead times

 Increase small business opportunities

Metrics/Targets:

 Reduce direct material costs to achieve $8.03 billion in overall savings in six years 

(FY14-FY19)

KEY J7 INITIATIVES SUPPORTING GOAL 1

MC-J7-01. Increase Reverse Auction Savings to Reduce Material Costs Across

Enterprise

 Role – OPR: J74; OCRs: PLFAs, DCSO

 Objectives – Increase the use of Reverse Auctions for competitive awards when in the

best interest of the government and industry.

 Metrics/Targets

 Target of $44 million in savings in FY14 and $956 million from FY14-FY18

 Status 

MC-J7-02. Increase Long Term Contract Coverage to Reduce Material Costs Across

Enterprise

 Role – OPR: J74; OCRs: PLFAs, DCSO

 Objectives – Increase the long-term coverage items in order to reduce manual 

workload, reduce lead times, and improve relationships with suppliers.

 Metrics – Increase LTC obligation rate, # NSNs, and LTC Actions over end of FY13

actuals

 Status 

(1) Achieved $35.61M in Savings in FY14 

(2) Achieved $35.61M in the first year of the FY14-FY18 target of $956M

(1) LTC obligation rate went down from 35.7% in FY13 to 34.1% in FY14 

(2) There was an increase in number of NSN in FY14 

(3) Decrease in LTC actions in FY14 in comparison to FY13
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MC-J7-03. Increase the use of Value Management to Reduce Material Costs Across the

Enterprise

 Role – OPR: J74; OCRs: PLFAs

 Objectives – Promote competition and drive materiel prices lower through Value 

Management. Includes: Reverse Engineering, Breakout, Source Approval Requests,

Should Cost and other Value Management processes.

 Metrics – FY14 savings of $41 million. FY14-19 target savings of $533 Million.

 Status 

MC-J7-04. Capture savings through Procurement Systems and Process Improvements

to Reduce Material Costs Across the Enterprise

 Role – OPR: J74; OCRs: PLFAs

 Objectives – Procurement Systems enhancements and process improvements within

acquisition systems such as Auto buy, EMALL, Advanced Negotiation Techniques,

Simplified Acquisition Efficiencies, Discounts and Buying Power, First Destination

Transportation Process Improvement (FDTPI), Business Case Analysis

improvements.

 Metrics – FY14 Target savings are $402 million. FY14-19 target savings are $3,169 

Million

 Status

Description: Reduce operating costs by improving buyer productivity and service

contracting, pursuing continuous process improvement initiatives, and implementing best

practices in acquisition.

Other Strategies

 Consolidate and co-locate infrastructure

 Achieve Base Realignment and Closure (BRAC) “Day 3” efficiencies

 Optimize the global distribution network

 Enhance retail industrial support

 Incorporate process improvements

(1) Achieved $144.91M in Savings in FY14 

(2) Achieved $144.91 in the first year of FY14-19 target of $533M

(1) Achieved $9.47M in Savings in FY14 

(2) Achieved $9.47M in savings of the FY14-19 target of $3,169M

GOAL 2: DECREASE OPERATING COSTS ... “IMPROVE PROCESS AND PRODUCTIVITY”
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Metrics/Targets:

 Reduce operating costs to achieve $4.78 billion in overall savings in six years (FY14-

FY19)

KEY J7 INITIATIVES SUPPORTING GOAL 2

OC-J7-01. Reduce Cost of Operations Across Enterprise in Acquisition of Services

Under Current DoD Downsizing

 Role – OPR: J74; OCRs: PLFAs, DCSO

 Objectives – Improve the acquisition of services and enhance and streamline 

acquisition mission execution by having the portfolio managers for

electronics/communications, knowledge-based services, and facilities-based services

work with the Senior Services Manager to increase competition and optimize

requirements for their portfolios, updating DLA policy on approval thresholds for 

services, reducing the use of time and material contracts, and developing standard

practices for acquisition of services such as utilizing the Automated Requirements

Roadmap Tool.

 Metrics – $243 million in FY14 savings in contract services and supplies across the

Enterprise.

 Status

OC-J7-02. Reduce Operating Costs through Strategic Sourcing

 Role – OPR: DCSO; OCRs: DSCO Key Customers

 Objectives – Create value and efficiency to our customers and the Agency by

consolidating similar material and service requirements into efficient contract vehicles,

thereby eliminating redundant contracts and leveraging scales and scope of awards to 

increase savings.

 Metrics

 10% savings for FY14

 100% of IT service awards over $20 million to use IPTs to develop contract award

documents

 Consolidate Information Technical requirements into efficient multi-award vehicles

 Status 

Achieved $419.33M in Savings in FY14

(1) Achieved $635.54M in Savings in FY14 

(2) 100% of IT service awards over $20 million using IPTs to develop contract award documents 

(3) Merged hardware software licenses and maintenance, from 126 contracts to 10. JETS contract 

consolidating IT Services contracting.
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OC-J7-03. Lead DoD in Management of Government Purchase Card (GPC) Program

 Role – OPR: J73; OCR: PLFAs, J Codes, DLA Installation Support, DCSO

 Objectives – DLA GPC Program fully supports mission while executing 100% in 

compliance with rules and regulation

 Metrics

 Achieve Monthly GPC payment delinquency of less than 5%.

 Conduct semi-annual GPC Town Hall meetings in January and July focused on 

GPC program issues and training.

 DLA Agency/Organization Program Coordinator (A/OPC) records will contain all

required appointment forms, training certificates, and DD Form 577 for each

billing official and purchase cardholder.

 Level 4 A/OPCs to review the purchase card accounts under their cognizant 

annually.

 GPC programs reviewed at least every 18 months by the DLA GPC Component

Program Manager.

 The GPC program is included in the DLA J7 Statement of Assurance and contains 

key management controls for the GPC program in accordance with Appendix B of

the Office of Management and budget (OMB) Circular A-123 and the DoD 

Charge Card Guidebook.

 Status 

(1) Achieved 42% completion in the monthly GPC payment delinquency of less than 5% 

(2) Semi- annual GPC town hall meetings focussing on GPC program issues and training have been 

conducted 

(3) All DLA A/OPC records contain all the required forms, training certificates and DD form 577 for each 

billing official and purchase cardholder 

(4)70% of level 4 A/OPCs review the purchase card accounts under their congizant annualy 

(5) All GPC programs are reviewed at least every 18 months by the DLA GPC Component Program 

Manager (100% complete) 

(6) The GPC program is included in the DLA J7 statement of assuarance (100% complete) 
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Description: Achieve audit readiness for financial reporting of the Procure-to-Pay (P2P) 

business cycle.

Strategies to Achieve Audit Readiness

 Culture of judiciousness ... this is an All Hands effort

 Identify and drive improvement opportunities

 Expand Audit Readiness beyond process integrity to process excellence

KEY J7 INITIATIVES SUPPORTING GOAL 3

AR-J7-01. Achieve Procure-to-Pay (P2P) General Fund Auditability in FY14 & Position

P2P for Working Capital Fund Auditability in FY15

 Role – OPR: J74; OCR: J89

 Objectives – The P2P Business Cycle Team (BCT) seeks to achieve audit readiness,

while documenting and relaying the identified strengths, gaps, and weaknesses

associated with DLA’s procurement and payable-related processes while validating

conformance with the Chief Financial Officer Act and Office of Management and

Budget Circular A-123 Appendix A. P2P is an assessment process that utilizes the

Enterprise Business Cycle to collaboratively evaluate automated and manual 

management internal controls in support of Audit Readiness assertion.

 Metrics

 100% of Process Cycle Memorandums supporting the P2P process.

 Status 

The process is 100% complete

GOAL 3: ACHIEVE AUDIT READINESS ... “PROVE IT”
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KEY J7 GOALS, METRICS, AND INITIATIVES ALIGNED TO BETTER BUSINESS

POWER 2.0

Description: Align profitability more tightly with Department goals; employ appropriate

contract types; increase use of Fixed Price Incentive contracts in Low Rate Initial Production;

better define value in “best value” competitions; when LPTA is used, define Technically

Acceptable to ensure needed quality; institute a superior supplier incentive program; and

increase effective use of Performance-Based Logistics.

KEY J7 INITIATIVES SUPPORTING GOAL 4

PI-J7-01. Partner with Industry to Provide Better Value & Eliminate Unnecessary Costs

 Role – OPR: J72; OCRs: PLFAs

 Objectives – Promote partnering and relationship building with industry via Captains

of Industry events in order to gain insight into cost drivers and industry best practices

to maximize value and eliminate unnecessary costs in the current declining budget

environment.

 Metrics

 Identify cost drivers and industry best practices for implementation

 Assist supply chains with implementation when necessary

 Export across the enterprise where applicable

 No defined savings targets associated with this initiative

 Status 

(1) Several ideas have been adopted to date-Conversion of special milspec additive jet fuel to 

commercial jet fuel for aircraft in the Energy COI, smaller/fewer catalogs in Subsistence COI, reduction 

of hard spec/brand name items in lieu of generic products in Subsistence COI, supply chain integration 

proposals (i.e. Honeywell and Boeing) in the Aviation COI, ship recycling (sales) and white goods/rolling 

stock (sales) by auction vs flat rate in Disposition COI/proposals.

(2) J72 has assisted Aviation with Honeywell and Boeing. Boeing has reached Phase I (sole source items) 

award and is working towards Phase II (depot PDM pilot). Honeywell is in the solicitation response 

phase. J72 has also worked with Disposition on the ship recycling strategy and the white goods/rolling 

stock strategy.

(3) Commercial strategies such as reduction of hard spec items, such as those seen in Energy (jet fuel 

conversion) and Subsistence, along with changing delivery routes/days to "pinwheeling" pallets on a 

truck to maximize capacity have been shared across the enterprise. Supply chain integration ideas, 

when not proprietary, have also been shared amongst our sole source suppliers.

(4) COI program has realized $144.6M is savings and projects savings/avoidances of $1,262.4M in 

GOAL 4: INCENTIVIZE PRODUCTIVITY & INNOVATION IN INDUSTRY & GOVERNMENT
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PI-J7-02. Achieve Agency FY14 Small Business Award Goal

 Role – OPR: J71; OCRs: DB, DLA Field Activities

 Objectives – Meet or exceed the OSD-assigned Agency small business goal for FY14,

including the OSD-assigned Agency sub-goals for the following socioeconomic 

categories: Small Disadvantages Businesses (SDBs), Historically Under-utilized

Business (HUB) Zones, Women- Owned Small Businesses (WOSBs), and ServiceDisabled Veteran Owned Small Businesses (SDVOSBs)

 Metrics - Meet or exceed the OSD-assigned Agency small business goal for FY14

(When OSD publishes the FY14 goals, this target can be replaced with the actual

assigned agency goal percentage; the FY13 agency goal is 32%).

 Status 

PI-J7-03. Promote Effective Competition to Increase Competed Dollars & Achieve 

Savings

 Role – OPR: J72; OCRs: PLFAs, DCSO

 Objectives – Increase overall and effective competition to drive down costs and

increase material savings.

 Metrics

 Monitor agency and supply chain progress towards OSD approved goals.

 Measure competition % rate achieved versus total DLA obligated dollars.

 Measure % of competed dollars with 2 or more offers.

 Targets – Increase overall competition by 2% from FY13 (FY14 OSD target to be

determined ... target may change.)

 Status 

PI-J7-04. Improve Industrial-Based Support to DoD Customers

savings through FY18. These figures cross FY12-14 at

this time. Only C&T does not show any savings to date, nor projected savings/avoidances. 

Realized/Saved-avoided to date: Subsistence $68.7M/$157.4M; Medical $8M/$225M; C&E $0/$25M; 

C&T $0/$0; Aviation $14.3M/$303M; Energy Bulk (CONUS) $13.2M/$275M; Energy (Natural Gas) 

$37M/$130M; Land $2.8M/$41M; Maritime $2.6M/$106M.

Achieved 34%

(1) Achieved 84.1% in supply chain progress towards achieving OSD approved goals 

(2)Achieved 84.09% in completion rate achieved versus total DLA obligated dollars 

(3) 91.1% of completed dollars had 2 or more offers
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269

 Role – OPR: J74; OCRs: PLFAs

 Objectives – The objective of the Industrial Capability Program is to provide Agency

adherence to the statutory and regulatory programs for defense industrial base to 

include risk analysis and assessment, to implement an effective surge and sustainment 

acquisition program, smartly invest in industrial preparedness measures through the

Warstopper Program, commission and conduct value-added industrial base studies,

and innovate the industrial base solution sets possible within DLA.

 Metrics/Targets – Complete industrial base risk analysis for each supply chain

 Status 

PI-J7-05. Execute FY14 Annual Materials Plan

 Role – OPR: DLA Strategic Materials

 Objectives – Provide oversight and management to ensure actions identified in the

Annual Material Plan (AMP) for acquisition of new and disposal (sale) of surplus 

materials are accomplished timely and in concert with market opportunities that best

serve mission while limiting market disruption.

 Metrics – Disposals (Sale) will be monitored quarterly for contract awards, revenue

collection and funds transfers that achieve payment goals. Revenue goal is $152.3M. 

Transfer Payment goals for Congressional programs are as follows: HHS $36M and

Spectrum $32.2M.

Minimum # Offerings Minimum Sales $ vs Collections $

1

st Quarter 4 25% of transfer goals

2

nd Quarter 3 25% of transfer goals

3

rd Quarter 3 25% of transfer goals

4

th Quarter 3 25% of transfer goals

 Status

PI-J7-06. Qualify New Domestic Source for & Stockpile Insensitive High Explosives

(IHE)

All are completed except Land & Maritime and C&T

Sales Revenue $108.27 M which exceeded revised goal of $82.6M due to legislative restrictions for 

tungsten sales. Transfer Goals were also met--$48.9M to Spectrum and $36M to HHS. This completed 

the current legislative revenue transfer goals under the HHS. 
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 Role – OPR: DLA Strategic Materials; OCRs: National Nuclear Security

Administration (NNSA) , Army, Navy

 Objectives – DLA Strategic Materials is funding NNSA, the Army, and the Navy to 

qualify a new domestic source of TATB and the TATB based molding powders. 

Pending legislative approval, DLA Strategic Materials will acquire TATB and TATB

molding powders for the National Defense Stockpile in FY14 and oversee the long

term operation of that stockpile against existing military specifications.

 Metrics

 Acquire full set of preliminary technical data from NNSA and DoD by end of the

Q1FY14.

 Ensure Revision of TATB DRAFT MIL-DTL-32337 (OS) by end of Q3FY14 

though Qualification Program with NNSA.

 Participate in Tiger Team Energetics Meetings throughout year

 Qualification of 9502 molding powder though program with NNSA NLT end of

FY14.

 Qualification of PBXW-14 molding powder through agreement with Army NLT

end of FY14.

 Qualification of PBXN-7 molding powder through agreement with Navy NLT end

of FY14.

 Status 

(1) Increased small business percentage above FY10 for three portfolios service acquisition groups: 

facility related services, electronics & communication and knowledge based services. 

(2) Achieved 100% of small business goal in support of DoD goals and related customer support benefits. 

Also, DLA Strategic Materials is moving forward with procurement of TATB in FY15. 
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PI-J7-07. Establish Strategic Materials Recycling & Recovery Process

 Role – OPR: DLA Strategic Materials

 Objectives – Establish the Strategic Materials Recycling & Recovery Process 

(SMRRP). It enhances our mission by developing a domestic supply chain of selected

strategic materials and thereby decreasing dangerous and costly dependence on 

foreign sources.

 Metrics

 Work with Tinker and Davis-Monthan Air Force Base to identify excess turbine 

engines and turbine engine components which can be incorporated into the

program during Q1FY14.

 Develop a Memorandum of Agreement (MOA) between DLA Strategic Materials,

DLA Disposition Services, and Tinker and Davis-Monthan Air Force Base 

organizations which define responsibilities relating to real property ownership and

fiscal responsibilities for the program. Should be in coordination NLT end of

Q1FY14.

 Release RFP relating to a pilot program for reclamation of strategic materials from

turbine engine components. NLT end of Q3FY14.

 Award contract for pilot program. NLT end of Q4FY14.

 Status 

Description: Re-emphasize AE responsibility and accountability; eliminate requirements

imposed on industry where costs outweigh benefits, reduce cycle times while ensuring sound 

investment decisions, and continue to increase the cost consciousness of the acquisition

workforce.

KEY J7 INITIATIVES SUPPORTING GOAL 5

PB-J7-01. Complete EProcurement Roll-out & Implementation

 Role – OPR: J71; OCR: J62

 Objectives – Complete program roll-out for 100% of DLA Buyers in EProcurement

Program Deployment by 30 May 2014.

(1) Increased small business percentage above FY10 for three portfolios service acquisition groups: 

facility related services, electronics & communication and knowledge based services. 

(2) Achieved 100% of small business goal in support of DoD goals and related customer support benefits. 

Also, DLA Strategic Materials is moving forward with procurement of TATB in FY15. 

GOAL 5: ELIMINATE UNPRODUCTIVE PROCESSES & BUREAUCRACY
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 Metrics – 100 % of On-Schedule Roll-Outs

 Status 

PB-J7-02. Award Acquisitions On Time Across Enterprise

 Role – OPR: J72/J74/Time To Award Team (TTAT); OCRs: PLFAs, DCSO

 Objectives – All contracting activities shall award an acquisition within one year or less 

from issuance of the solicitation or request for proposals until contract award.

Acquisitions which take longer than one (1) year from time of issuance of solicitation

or request for proposal until contract award shall be reported monthly to the

Director/Vice Director, DLA by the PLFA Commanders. TTAT’s mission is to 

reduce the time to award through development of process cycle efficiencies and

regulation/policy and assessment of resource capabilities. J7 works with the PLFAs

and TTAT to implement the efficiencies and ensure adherence with time to award

policy and timeframes.

 Metrics

 All manual awards under $150,000 awarded in 35 days, all manual awards over 

$150,000 awarded within 110 days, and all LTCs awarded within 140 days.

 Reduce the number of bridge contracts for high visibility acquisitions Enterprisewide by 50% using Sep 2013 as benchmark - Quarterly R&A.

 High visibility/high risk acquisitions precede 80% of the time in accordance with

Procurement Acquisition Lead Times milestones – Quarterly R&A

 Status 

100% complete

(1) All manual awards under $150,000 have been awarded at average of 161 days; all manuals over 

$150,000 were awarded at average of 383 days and LTC's were awarded within 393 days on average 

(2) reduced the number of bridge contracts by ~30% using Sep 2013 as a benchmark 

(3) Strategic contracts have not preceded 80% in accordance with Procurement Acquisition Lead Times 

milestones.
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273

PB-J7-03. Drive Agency Improvement in Pricing (Better Buying Power 2.0)

 Role - OPR – J72; OCR – PLFAs

 Objectives: Improve Agency Pricing skills and support DoD Pricing Initiatives

 Metrics

 Provide assistance to PLFAs when requested 100% of the time

 Meet external pricing reports suspense date 90% of the time

 Check Contract Business Analysis Repository (CBAR) use as part of pricing

reviews (J&A, PNM, etc.)

 Status 

PB-J7-04. Help Activities Improve Procurement Management

 Role – OPR: J73; OCRs: DLA field activities, J71, J72, J74

 Objectives

 Provide assistance to DLA activities to ensure they complete timely and quality

awards, comply with contracting regulations and policy, resolve issues identified

during reviews, and are audit ready.

 Provide support and assistance to DLA activities to ensure they complete 100% of

audit recommendations on time.

 Metrics

 Review award timelines to determine if the activity complied with Agency Time 

To Award goals

 Compare FY14 PMR ratings to previous ratings for each activity to measure level

of improvement

 Compare number of repeat findings to previous number of repeat findings for each

activity to measure level of improvement

 Compare PMR findings to Assist Visit issues/actions from previous years to

determine if actions effectively improved contracting quality

 Compare FY14 PMR findings to findings from previous years to determine if

enterprise-wide issues exist

 Review compliance with Audit Readiness Process Cycle Memorandums (PCMs)

(1) All requests from the PLFA's are answered 100% of the time. 

(2) All external pricing reports (DPAP, DCAA etc.) have met the suspense date 100% of the time since 

Jan 2014 

(3) All pricing reviews (PMR, Pre- and Post Award Reviews) conducted check the file/PNM for 

verification of use of CBAR 100% of the time.
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 Complete timely responses to all audit reports

 Monitor corrective actions for all outstanding audit recommendations/corrective 

actions

 Status 

PB-J7-05. Increase Use of Automation / Reduce Manual Purchases

 Role – OPR: J74; OCRs: PLFAs, DCSO

 Objectives – Increase automated actions in order to reduce the manual PR workload

 Metrics/Targets – 85% of all non-LTC awards under $150,000 by the end of FY14

 Status 

Description: Establish higher standards for key leadership positions; establish stronger 

professional qualification requirements for all acquisition specialties; and increase the

recognition of excellence in acquisition management.

Maintain J7 commitment to a highly performing and motivated organization serving the

Warfighter by ensuring a diverse, enabled, empowered and motivated workforce that delivers

and sustains acquisition excellence.

(1) FY14 reviews completed for EMALL, Land & Maritime, IH and C&E, Troop Support Prime Vendor, 

Energy, and Special Focus Aviation Review. Only Energy met TTA goals (2) EMALL Assist Visit - no 

rating for FY06 or FY14; Land and Maritime - Satisfactory for FY11, Excellent for FY14; Industrial 

Hardware - Satisfactory for FY14, no previous review; C&E - Satisfactory for FY12, Excellent for FY14; 

Prime Vendor - Satisfactory for FY12 and FY14; Energy - Satisfactory for FY12 and FY14; Special Focus 

Aviation Review - no rating for FY14, no previous review 

(3) EMALL Assist Visit - No repeats; Land and Maritime - 11 repeats in FY11, 3 in FY14; Industrial 

Hardware - No repeats; C&E - 3 repeats in FY12, none in FY14; Prime Vendor - 5 repeats in FY12, 2 in 

FY14; Energy - 4 repeats in FY12, 4 in FY14; Special Focus Aviation Review - no repeats 

(4) Corrective actions effectively improved quality in all but EMALL and Energy 

(5) Enterprise issues are Pricing, SAM, EDA, CORT Tool, CAR Data 

(6) PCMs not approved, therefore not ready for review 

(7) Timely responses to all audits were completed 

(8) All corrective actions for outstanding audit recommendations were monitored

Achieved 80% of all non-LTC awards under $150,000

GOAL 6: IMPROVE PROFESSIONALISM IN TOTAL ACQUISITIONWORKFORCE
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KEY J7 INITIATIVES SUPPORTING GOAL 6

TAW-J7-01. Establish Stronger Professional Development Qualification Requirements

for All Acquisition Specialties

 Role – OPR: J73; OCRs: DLA Field Activities, J1, J8, J3, J6, DTC

 Objectives – Ensure professional development of the acquisition workforce to meet

position qualifications and maintain professional currency; and implement Career 

Broadening Opportunities pilot program with J73

 Metrics

 100% DAWIA certification rate

 100% of DAWIA certification applications processed in less than 30 days

 Two participants in the J7 Career Broadening Opportunities pilot program

 Transition 1000 LCL personnel into acquisition positions by September 2014

 Status 

TAW-J7-02. Recognize Excellence in DLA’s Acquisition Workforce

 Role – OPR: J73

 Objectives – To ensure the DLA acquisition workforce is recognized for excellence in

performance for multiple award programs, for example:

 David Packard Excellence in Acquisition Award

 Defense Acquisition Workforce Individual Achievement Award

 Defense Acquisition Workforce Development Award

 Metrics/Targets

 100% notification rate to all eligible activities

 Maximum number of submissions allotted to DLA for each award category

 Status 

(1) 98.6% DAWIA certification rate 

(2) 100% of DAWIA certification application have been processed in less than 30 days 

(3) One person participating in the CBOP 

(4) Transitions 1250 LCL personnel into acquisition positions by September 2014

(1) 100% notification rate to all eligible activities was achieved 

(2) The maximum number of submissions (4) were submitted for each award category.
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TAW-J7-03. Improve J7 Culture in Mission, Empowerment, Coordination, &

Integration

 Role – OPR: J7 Culture Council; OCRs: J7 Divisions, DLA Strategic Materials,

DCSO

 Objectives

 Based on workforce feedback, three major focus areas have been identified as areas

of opportunity: Mission, Coordination, and Integration and Empowerment.

Action plans that focus on these three key areas to drive improvements will have 

far reaching impacts across DLA Acquisition.

 Our goal is to transform DLA Acquisition by promoting an environment of trust

where employees exhibit increased initiative, enthusiasm and innovation and are

provided the tools needed to achieve organization goals. Increased collaboration

and teamwork will allow for a more cohesive organization with employees across

the organization working toward a common purpose and fully understanding the

mission and strategic direction of J7 in the context of their roles.

 Metrics

 Ensure that all tasks identified in our action plans are completed.

 100% Compliance with all Quarterly Supervisor/Employee One on One

communication sessions.

 The Quarterly J7 Peer Award Program will be timely and reward high performers

for superior effort.

 All organizations will conduct at minimum a team meeting once a month.

 Ensure that all action items identified during J7 Director meetings with suborganizations are acted upon in a timely manner.

 Status 

(1) All actions identified in the actions plan were completed 

(2) 50% compliance with quarterly supervisor/employee one on one sessions 

(3) The J7 Peer Award Program has been timely and has awarded high performers 

(4) Most organizations have been conducting a minimum of one team meeting a month 

(5) All actions identified during J7 Director's meetings have been acted upon in a timely manner
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TAW-J7-04. Improve Telework Participation

 Role – OPR: J7 Business Office; OCRs: J7 Divisions, DCSO

 Objectives – Supports mission continuity by enabling employees to continue the work

of the Agency despite unexpected disruptions and improves productivity by allowing

employees to work in an alternative location that is relatively free of stress and

distractions. Additional noteworthy benefits include:

 Enhances work-life balance for eligible employee.

 Serves as an effective recruitment and retention strategy.

 Supports efforts to employ and accommodate people with disabilities.

 Creates cost savings by decreasing office space and parking facility needs.

 Reduces traffic congestion and air pollution resulting from the daily commute.

 Metrics/Targets – 5% increase in DLA Acquisition employees who participate in the

Telework Program above September 2013 baseline.

 Status 

We acheieved a 28% increase in the telework participation program
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BLANK PAGE
DLA Finance (J8)

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Defense Logistics Agency

DLA Finance (J8) 

Fiscal Year 2014 (FY14) Annual Historical Report

1. Introduction

The DLA Finance Annual Historical Report (J8 AHR) outlines the actions J8 took over the 

course of the Fiscal Year (FY) 2014 to improve and sustain the effectiveness and efficiencies of 

its service to our customers, civilian and military, internal and external to DLA. It also provides 

the key operating goals, initiatives, metrics, and other tools used to regularly monitor our 

performance to ensure DLA’s workforce has the capabilities to meet present and future mission 

requirements.

The J8 FY14 AHR is based on the J8 FY14 Annual Operating Plan (AOP) and our results in 

meeting that plan.

 

The J8 AOP has four goals that support the achievement of the 5 Big Ideas Strategic Focus 

Areas:

1. Decrease Direct Material Costs Dec

2. Decrease Operating Costs E

3. Reduce Inventory

4. Improve Customer Service

5. Achieve Audit Readiness

The four J8 AOP goals are listed below:

 Resource DLA’s operational strategies through the most cost effective means

 Provide comprehensive financial performance analysis and advice to our customers

o Assist business partners in evaluating and translating business initiatives into 

executable strategies that meet stewardship objectives

 Ensure Business Cycle Owners understand stewardship responsibilities to achieve 

accurate and assertable financial data and take appropriate corrective actions

 Ensure a diverse, enabled, empowered, and motivated workforce that delivers and 

sustains financial excellence 

The four goals are supported by 22 initiatives that identify actions and metrics to achieve those 

goals and, ultimately the overarching DLA Strategy. 
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2. Mission, Vision, and Values 

 Mission

We are America’s Combat Logistics Support Agency. We provide effective and efficient 

worldwide support to Warfighters and our other customers.

DLA Finance enables the DLA mission accomplishment by obtaining resources and 

providing financial management stewardship through expert and timely guidance, planning, 

advice, and analysis. 

 Vision

Warfighter-focused, globally responsive, fiscally responsible supply chain leadership

 Values

Our values are DLA’s foundation for all we do.

They provide our guiding principles as we accomplish our mission, pursue our vision, and 

strive to do what is right for the Armed Forces and DoD:

 Warfighter needs guide us

 Integrity defines us

 Diversity strengthens us

 Excellence inspires us
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3. Organization Overview

Current Scope of DLA Finance

FY 2014...Program Budget Review (PBR) 15 

o 10 Financial Management offices ... 731 personnel 

o Ensures DLA financial compliance is maintained across over 200 DLA and nonDLA owned systems

o Requested $1.2B of Total Obligation Authority (TOA) for 6 appropriations 

(Operations & Maintenance, Research and Development, Procurement, Family 

Housing, Military Construction and Working Capital Fund Direct)... spanning up 

to 10 years

o Defense Wide Working Capital Fund (DWWCF) Sales / Revenue $37.2B 

 Supply Chain Management $20.2B

 Energy $16.7B

 Document Services $338M

o Maintains sufficient cash balance within target range

 Project $1.464B 

o Payroll Center of Excellence service for Agency’s 26,000+ civilians 

o Coordinates with 5 DFAS Operating Sites

FY 2014 – Actuals

o 11 Financial Management offices ... 671 personnel 

o Ensures DLA financial compliance is maintained across over 200 DLA and nonDLA owned systems

o Received and provided execution oversight of $1.2B of TOA for 6 appropriations.

o Defense Wide Working Capital Fund (DWWCF) Sales/Revenue $37.7B 

 Supply Chain Management $21.4B

 Energy $16.0B

 Document Services $264M

o Maintains sufficient cash balance within target range

 $2.8B (currently)

o Payroll Center of Excellence service for Agency’s 26,000+ civilians 

o Coordinates with 5 DFAS Operating Sites 
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4. DLA Finance/J8 Organization Chart

5. Accomplishments: Non-Audit Readiness

 Provided financial oversight of $112M in DLA goods and services to fight Ebola in West 

Africa

 Defended FY 15 Defense Working Capital Fund/Appropriated Budget to 

OSD/Congressional Staff

 Developed business rules/monitoring of Full-Time Equivalent (FTE) and Travel cap 

restrictions

 Booked “Big Ideas” savings ... regular updates to the Alignment Group and Executive 

Board

 Developed and communicated financial strategies in support of fiscal “cliff”, 

administrative furlough, and US Government (USG) shutdown. For USG shutdown ...

o Effectively managed expense suppression and billing of customer orders

o Established business rules/vendor communication strategy ... payment approach

o Maintained cash solvency to ensure DLA workforce remained mission capable 
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 Realigned budget support to operationalized organizations ... one stop for J6/J8/DS

 Realigned budget support in response to J6 reorganization

 Implemented Customer Pricing Tool for improved customer billing accuracy 

 Assisted in the integration of Reutilization Business Integration (RBI) software 

development ($61M) into Enterprise Business System (EBS)

 DLA Energy ... collected $117.9M in aged accounts receivables and reconciled 17 Fuel 

Exchange Agreements ... collecting $112M for 26M gallons of fuel

 Payroll Center of Excellence 

o Partnered with J1/DG to provide timely and detailed employee Time &Attendance 

guidance for the execution of the administrative furlough 

o Providing evidential matter support to DG in addressing 1,600 appeals as a result 

of the administrative furlough

 Steadily strengthened controls and stewardship over Agency payroll processes ... 

extensive metric monitoring ... supports Hire-to Retire audit assertion

 Travel Services 

o Significantly improved DLA travel compliance ... travel card, authorizations, and 

vouchers

o Established clear review and approval process for Senior Executive/GO/FO travel 

6. Accomplishments: Audit Readiness 

 Reconciled General Ledger to the transaction level

o Obtained/reconciled transaction populations for high priority general ledger 

accounts

o Implemented key reconciliations with 5 critical reconciliations still in process

 Tested transaction samples to source documents to ensure we can provide them to an 

auditor in a timely manner

o Established automated response capability, timeliness factors remain 

o Performed substantive testing for targeted areas, remaining areas will be tested by

August 2015

o Deployed substantive testing guidebook to agency

 Control Activities operated effectively

o Processes were documented within process cycle memorandums and key controls 

have been tested across all key financial processes, some areas have corrective 

action plans underway to be completed and retested prior to assertion in September 

2015

o Standard Operating Procedures ... Developed SOPS across the enterprise for key 

financial processes and will implement and train employees on the SOPs by 9/2015

 IT General and application controls

o 12 core/feeder system ITGCs tested and substantially remediated

o 100 interfaces tested and remediated

 Service Provider processes, risks, and controls in scope

o Completed DFAS/DLA Mission Work Agreement

o DISA control scope gaps closing in FY 15
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o Currently testing DFAS micro-applications and developing corrective action plans 

as needed.

o Completed MOUs with Services for Inventory in DLA custody and provided 

assertion for existence and completeness

o Successfully passed SSAE 16’s for DAAS, DAI and WAWF

 Retrieval and storage procedures for financial data

o Successfully pulled required populations using manual techniques

o Implementing tools to improve

o Established solution for storage and retrieval by FY 15

 Asserted to and received an unmodified opinion on Civilian Payroll

 Asserted to and received a modified opinion on Environmental Liabilities

 Asserted to and received an unmodified opinion on Real Property Host Sites

 Asserted to Statement of Budgetary Activity (SBA) in June 2014.

 Asserted to Internal Use Software in September 2014.

 Asserted to Inventory Existence and Completeness in October 2014.

 Human Performance

o Developed AR “Victory is within Reach” Town Halls and 70 Info Blasts to let 

people know what audit readiness means to them

o Held regular brown bag luncheons to answer employee questions and provide 

more information on the changes underway

o Developed DLA Enterprise AR Training development and sustainment strategy 

with J1

o Developed DLA Enterprise Audit Readiness to Audit Sustainment strategy with 

J1/J5/J3/J7

 Travel ... Developed more assertive policy to ensure travel compliance; developing more 

standardized processes across J8 organizations 

 Data Clean-up ... Led data clean-up related to blocked invoices, aged accounts receivable, 

negative payables; beginning FY 14 cleansed:

o Blocked Invoices... $37M

o Aged Accounts Receivables...$25M

o Negative Payables...$118M
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7. Key Operational Goals, Initiatives, Metrics, and Linkage to Big Ideas

The DLA Finance goals that support the Big Ideas enable the achievement of the five Strategic 

Focus Areas: Decrease Direct Material Costs, Decrease Operating Costs, Reduce Inventory, 

Improve Customer Service, and Achieve Audit Readiness.

Goal 1: Resource DLA’s operational strategies through the most cost effective means

Initiative 1-1. Big Ideas Enterprise Tracking and Reporting: J8 issues targets and tracks 

Enterprise operational levers for Decreasing Direct Material Costs and Decreasing Operating 

Costs that are two of the five Big Ideas Strategic Focus areas. Updates are provided to the 

Executive Board quarterly.

 

Linkage to Big Ideas: This initiative tracks and reports Enterprise Big Ideas Savings

Metric: Updates are provided to the Executive Board quarterly

FY 14 Actual: $4.7B in savings (FY 12/13/14) reported against a $1.4B FY 14 goal...+3.3B.

Initiative 1-2. Big Ideas J8 Savings: J8 tracks and reports on its targeted reductions for the 

four operational levers that have been identified as potential cost saving areas (Personnel, 

Contractual Services/Supplies, and Acquisition of Assets).

 

Linkage to Big Ideas: This initiative reports Big Ideas J8 Savings.

Metric: Updates are provided to the Executive Board quarterly 

FY 14 Actual: $14.4M in savings (FY 12/13/14) reported against a $1.4M FY 14 

goal...+$13.0M.

Initiative 1-3. Program Budget Review (PBR) Schedule/Strategies: The Program Budget 

Review (PBR) process kicks-off in November with DLA Finance presenting its strategy to DLA 

Leadership and ultimately seeking the Director's approval. Once the strategy is approved, 

General Guidance is issued along with individual pieces including J6, J8, Corporate, DS and 

Mission. PBR submissions are typically due late February/early March time frame. Working 

Groups meet to review Business Case Analysis (BCAs) to determine which BCA(s) are to go 

forward to the EOPC for voting (Decision Lens Tool). The number of BCAs each working 

group is allocated to go forward to the EOPC is outlined in the General PBR Guidance. The 

results are then vetted through the Enterprise S&OP and the Senior Leader Roundtable. The End 

Game Proposal is briefed to the Director mid-June and then to AT&L in mid-July. PBR exhibits 

are completed and submitted via Select and Native Programming (SNaP), Program Resources 

Collection Process (PRCP), Comptroller Information System (CIS), and hard-copy.
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Linkage to Big Ideas: The Big Ideas are captured in the PBR 16 submit

Metric: Measures level of success in obtaining both the Total Obligation Authority (TOA) and 

Defense Working Capital Fund (DWCF) resources necessary to fulfill DLA strategies in the 

Strategic Plan and 

Director’s Guidance. Percent of funding (Total Obligation Authority/Defense Working Capital 

Fund Obligation Authority) requested in the President’s Budget to what was actually received. 

FY 14 Actual: All figures are President’s Budget 15 FY 14 request versus actual received.

1. Appropriated Accounts: Requested $1.223B. Received $1.201 (98.2% of requirement).

2. Defense Working Capital Fund:

a. Supply Chain Management: Requested $22.7B. Received $22.7B (100% of 

requirement). 

b. Energy: Requested $18.6B. Received $19.6B (105%...increase for higher product 

cost).

3. Overseas Contingency Operations: Requested $131.6M. Received $131.6 (100% of 

requirement). 

Initiative 1-4. President Budget (PB) FY 2014 Budget Targets/Metrics: Monthly budget 

execution tracking of labor, overtime, contracts, travel, and training (actual to plan).

Linkage to Big Ideas: Decrease operating costs

Metric: Actual against plan. Green < or equal to 2% of plan, Yellow < or = 5% of plan, Red > 

5% of plan.

FY 14 Actual: The J8 Enterprise executed 7% below the President Budget (PB) FY 2014 plan. 

See attached FY14 President Budget (PB) Target/Metrics Chart

Goal 2: Provide comprehensive financial performance analysis and advice to our 

customers

Initiative 2-1. Net Operating Result (NOR): Net Operating Result (NOR) tracks DLA's 

revenues and expenses monthly, assesses performance against the budget, identifies variance 

early in the fiscal year, and allows the Agency to take corrective actions necessary to achieve 

NOR targets.

Linkage to Big Ideas: Decrease Operating Costs 

Metric: Actual performance against the NOR plan. Primary: green <3% worse than plan, 

yellow >3% - <6% worse than plan, red >6% worse than plan. Secondary (for Fusion Center 

Activities only): green <$15M worse than plan, yellow >$15M - <$40M worse than plan, red 

>$40M. Secondary (for Non-Fusion Center Activities only): green <$5M worse than plan, 
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yellow >$5M - <$10M worse than plan, red >$10M. If one activity red then overall NOR is at 

best yellow.

FY 14 Actual: In FY 14, NOR was $205M better than planned primarily due to DLA Supply 

Chain Management...$470M better than planned due primarily to lower expenses; partially 

offset by lower than planned revenue. 

Initiative 2-2. Cash Plan Performance (CPP): CPP is DLA’s total disbursements minus 

DLA’s total collections. A negative CPP implies that more was collected than disbursed, and 

increases the Cash Balances. A positive CPP implies that more was disbursed than we collected 

and decreases the Cash Balance.

Linkage to Big Ideas: Decrease Operating Costs 

Metric: Actual performance against the CPP plan. Primary: green <3% worse than plan, yellow 

>3% - <6% worse than plan, red >6% worse than plan. Secondary (for Fusion Center Activities 

only): green <$15M worse than plan, yellow >$15M - <$40M worse than plan, red >$40M. 

Secondary (for Non-Fusion Center Activities only): green <$5M worse than plan, yellow >$5M 

- <$10M worse than plan, red >$10M. If one Activity is red, overall CPP is at best yellow.

FY 14 Actual: CPP $202M better than planned due to DLA Energy ($510M better than planned 

due to lower purchases (-8.1 mbbls); partially offset by lower sales than planned (-5.9 million 

barrels). In contrast, DLA Supply Chain Management net outlays were $299M worse than 

planned due to lower collections than planned; partially offset by lower disbursements than 

planned.

Initiative 2-3. Cost Recovery Rate (CRR)/Customer Price Change (CPC): The nonEnergy CRR is the amount added to the acquisition cost of an item to recover costs associated 

with purchasing and selling supplies to customers. These costs include such things as payroll, 

travel, training, depreciation, facilities maintenance, shipping, storage and cataloging.

Linkage to Big Ideas: Decrease Operating Costs 

Metric: To hold cost of operations to no greater than the cost recovery rate goals established in 

PBR 15 and ultimately PB 15. Green is </= target, Yellow is not applicable, Red > target.

FY 14 Actual: FY 14 CRR was budgeted at 13.2%. Actual CRR was 9.97%, continuing a trend 

of actual CRR coming in lower than the budgeted CRR dating back to FY 05 (conservative sales 

estimates during PBR process). 

Initiative 2-4. Total Obligation Authority (TOA) Execution: DLA Appropriations include: 

Military Construction (MILCON), Operations and Maintenance (O&M), Research, 

Development, 

Test and Evaluation (RDT&E), Procurement Defense-Wide (PDW), and Family Housing (FH). 

Programs are reviewed monthly to compare actual to planned obligations. Monthly tracking of 

execution allows monitoring against OSD execution goals and management emphasis of 

programs that are under executing.

 
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Linkage to Big Ideas: Decrease Operating Costs 

Metric: Actual performance against the obligation plan. Green </=2%, Yellow </=5%, Red 

>5%

FY 14 Actual: Execution hampered by extended FY 14 Continuing Resolution (CR).

Operations and Maintenance: (1 year appropriation): For funds expiring in FY 14 ($449.3M), 

DLA executed $426.0M...95%

Research and Development: (2 year appropriation): For funds expiring in FY 14 ($150.2M), 

DLA executed $148.8M...99%

Procurement (3 year appropriation): For funds expiring in FY 14 ($460K), DLA executed 

$437K...95%

Family Housing (1 year appropriation): For funds expiring in FY 14 ($1.069), DLA executed 

$990K...93%

Military Construction (5 year appropriation): For funds expiring in FY 14 ($236.2M), DLA 

executed $231.8M...98%

Initiative 2-5. Implement the Reengineered Military Inter-Departmental Purchase Request 

(MIPR) process: Outbound MIPRs are, in essence, intra-governmental contracts. The 

responsibility to ensure that they are properly prepared, services received, and Service provider 

paid adequately rests with the service receiver. J8 Aviation has revised process that, once 

implemented (target FY 13) should improve our MIPR receiving statistics and reduce negative 

payables. 

Linkage to Big Ideas: Decrease Operating Costs 

Metric: In FY 14, a 10% reduction in negative payables related to missing MIPR receipts from 

FY 13. 

FY 14 Actual: Implemented on October 1, 2014

Initiative 2-6. Enterprise Business System (EBS) Material Pricing Tool: Annually from 

May 1 – July 15, DLA Financial Operations (J8) and DLA Information Operations (J6 EBS FI 

Sustainment), resources conduct the annual pricing exercise during which prices are reviewed, 

validated and set for the upcoming fiscal year for over 4 million items. DLA issues 

approximately $140 million in sales order adjustments to customers each year; an estimated 10 

percent attributed to incorrect pricing. The Pricing Tool shall be deployed to DLA Pricing 

Analysts prior to the start of the FY 14 DLA Mass Annual Pricing Process.

Linkage to Big Ideas: Improve Customer Service
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Metric: Decrease sales order adjustments related to incorrect pricing from the current estimate of 

10% to no more than 2% in FY 14.

FY 14 Actual: The Customer Pricing Tool (CPT): Material pricing (DLA’s selling price for 

customer billings) is updated on an annual basis for over 4 million items managed by DLA. This 

is performed from May through Mid –July each year and becomes effective for the upcoming 

Fiscal Year (1 October through 30 September). Pricing updates are also performed as needed 

(Out of Cycle – OOC) throughout the year for a.) Material First-Time Buys, b.) Customer Price 

Challenge Resolution and c.) Unit of Measure Difference Analysis purposes. In January 2014 

the CPT was deployed to EBS to facilitate the Annual and OOC pricing updates – it is used by 

all of the DLA Supply Chain Pricing Analysts. The CPT provides the capability to directly 

access material pricing conditions for instantaneous review, update, and correction. Benefits 

include; a.) Pricing data now available in a single view, b.) Anomalies can be easily identified 

using configured pricing rules, c.) Real-Time update capability and d.) Mass Upload of price 

changes. This will result in minimizing credits to customers due to over billings; and 

maximizing revenue due to a reduction in customer under billings. Prior to deployment of the 

CPT, $140 Million in sales order adjustments were issued to customers annually (of which 10% 

are estimated to be attributable to incorrect pricing."

Goal 3: Ensure Business Cycle Owners understand stewardship responsibilities to achieve 

accurate and assertable financial data, and take appropriate corrective actions

Initiative 3-1. Audit Readiness: DLA Finance is the Program Manager directing DLA’s Audit 

Readiness efforts to ensure that an independent evaluation of DLA’s financial statements in 

FY15 will demonstrate that DLA has reliable business and financial internal controls to ensure 

reasonable and reliable financial statements that fairly present DLA’s financial condition, in 

accordance with acceptable accounting standards. To accomplish this, the Program Manager 

directs the efforts of 10 Enterprise Business Cycle Teams (BCTs), 7 Field Command Teams 

(FCTs), 8 Enterprise Support Team (ESTs), and DFAS support. The specific actions required of 

each BCT, FCT and EST are built into Detail Work Plans (DWPs) which allows the PM to 

monitor progress to plan in the integrated master schedule (IMS).

The Audit Readiness program support compliance with the Chief Financial Officers Act, the 

National Defense Authorization Act for Fiscal Year 2010 (which required DLA to auditable by 

2017), SecDef memo dated October 13, 2011, “Improving Financial Information and Achieving 

Audit Readiness”, and DLA-D memo dated June 15, 2012, “Revised DLA Audit Readiness 

Timeline Goals”. 

Linkage to Big Ideas: Achieve Audit Readiness

Metric: Each team is measured their approved progress within the IMS. The status is presented 

at Stewardship Committee meetings every two weeks. Their hypercritical and critical corrective 

action plans are measured and discussed at each Stewardship Committee. 
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FY 14 Actual: DLA is on-track to meet the September 2015 assertion date.

Initiative 3-2. Evidential Matter Availability: Evidential matter retrieval is key to passing an 

audit; it must be pulled timely and in its entirety to pass the audit. An Agency-wide storage 

location was identified in e-Workplace for 44 forms to be stored in a centralized location as of 

June 1, 2013. As audit ready walkthroughs occur, additional EM will be identified and a storage 

location designated. Each supervisor must ensure that employees understand and comply with 

the rules. In addition, J89 is working closely with J6 to ensure all unstructured data is stored in 

the Document Retention Management tool (DACS-RM) and is providing training across the 

Enterprise to ensure EM is readily available for auditors when requested. 

 

Linkage to Big Ideas: Achieve Audit Readiness

Metric: 100 percent of evidential matter (as defined by the audit readiness team) is being stored 

in the prescribed location. 

FY 14 Actual: Training is underway for DACS-RM and will be completed by March 2015 

across the Enterprise. Unstructured EM should be stored within DACS-RM by the end of the 

fiscal year. 

Initiative 3-3. Standard Operating Procedure Development: In April 2013, an Agency-wide 

initiative was developed to ensure proper documentation and training of Enterprise SOPs. 

Having SOPs and ensuring that employees are following them is crucial for audit readiness to 

ensure we have good internal controls over our processes. 

Linkage to Big Ideas: Achieve Audit Readiness

Metric: J8 Enterprise-Wide Standard Operating Procedures (SOPs) completed by September 

2014 and stored in the prescribed location. 

FY 14 Actual: DLA J88 is finalizing the initial versions of 33 Finance Standard Operating 

Procedures (SOPs). These procedures address operating process instructions and controls across 

the DLA enterprise and business cycles. As significant changes occur throughout FY15 

regarding Process Cycle Memorandum (PCM) consolidation, reorganizations, and system access 

changes related to Separation of Duties (SoD) conflict, J88 will be revising these SOPs and 

potentially creating new SOPs to ensure appropriate finance positions have instruction to execute 

key financial controls. J88 will place the final Finance SOPs in the J5 official SOP repository 

which becomes operational this month. Training is also being developed for finance employees 

and will be deployed throughout the year as the Agency prepares for audit.

Initiative 3-4. Aged Accounts Receivables and Accounts Payables: Old accounting data 

shows a lack of proper financial controls, distorts our financial records, and bogs down the 

system. Our processes and policies must ensure we clear old documents in a timely fashion. 

The J8 data focus for Aged accounts receivables is admin fees, EMALL, Intra-governmental 

transactions, orphaned interest, and public. The aged accounts payable focus is on blocked 

invoices/credit memos; failed FI 13 IDOCs, and Negative Payables. 
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Linkage to Big Ideas: Achieve Audit Readiness 

Metric: Working with our business partners, ensure that less than 5 percent of the accounts 

payable and accounts receivable balances are older than 2 years. 

FY 14 Actual: Accounts Payables goal was not met, accounts payable greater than 2 years is 

$127.9M, a $5.6M increase from FY2013 and .08% of our total Accounts Payable. The $5.6M 

increase is primarily driven by two vendor litigation cases that are under review. 

Initiative 3-5. Develop Enterprise J8 Audit Readiness Organizational Structure: Currently 

DLA Finance and DFAS do not perform all the functions required for long term audit 

sustainment. We identified these gaps and developed a more detailed Mission Work Agreement 

(MWA) between DLA/DFAS to ensure better oversight and metrics were in place beginning 

October 1, 2014. In addition, J8 is working on implementing a new organizational structures and 

job definitions for DLA Finance employees to ensure we can sustain auditability. 

 

Linkage to Big Ideas: Achieve Audit Readiness

Metric: (Agency-wide): Update new MWA and DLA Finance Organization structure and be 

ready to implement October 2015. 

FY 14 Actual: An updated MWA was signed and implemented October 1, 2014, as planned and 

will be updated annually. The J8 reorganization is underway and will be implemented by 

October 1, 2015. 

Initiative 3-6. Perform Financial Reconciliations. There are currently 25 financial 

reconciliations, performed by J8, that are executed monthly. These recons ensure that all data is 

passing correctly within EBS and that the auditor can perform their analysis from the financial 

statement back through EBS’s financials. An effective recon balances; if not, supportable 

adjustments should be made or corrective actions developed to correct or eliminate them. 

Linkage to Big Ideas: Achieve Audit Readiness

Metric: (Agency Wide) 25 financial reconciliations are performed monthly, with appropriate 

evidential matter available to prove they were performed and adjustments are supportable. 

FY 14 Actual: Completed. Developed, implemented, tested, and sustained financial 

reconciliations to support FY 2014 audit readiness assertion. 25 reconciliations were listed for 

information as back-up.

Goal 4: Ensure a diverse, enabled, empowered and motivated workforce that delivers and 

sustains financial excellence

Initiative 4-1. In response to concerns identified in the Culture Survey on communication, 

supervisory standards, and financial training, the DLA Finance Culture Working Groups are: (1) 

Updating the DLA Finance Communication Plan for distribution to all DLA Finance employees; 
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(2) developing email templates for clear and concise communication; (3) developing a process in 

which ideas can be effectively pushed up the chain; (4) Reviewing supervisory standards across 

J8 for consistency and accuracy; (5) Identifying alternative training methods for the FAST Track 

program to save costs and reduce travel; and (6) Energize the workforce on the benefits of the 

FAST Track program; 

 

Linkage to Big Ideas: Improve Customer Service

Metric: Marked improvement in any/all of the 12 indexes in the Culture Survey Denison Model.

FY 14 Actual: The results for J8 decreased across the board in the areas listed above. 

Management has met to discuss methods that can be implemented to raise the results in these 12 

index areas in the future. 

Initiative 4-2. Diversity Statistics: Improve J8 participation rates among key underrepresented 

groups by increasing hiring manager awareness and the use of best practices targeted recruitment 

strategies. 

 

Linkage to Big Ideas: Improve Customer Service

Metric: Review diversity statistics data to J8s internal Monthly Management Review (MMR) 

(1st Qtr, FY 14). Identify and implement corrective action plans as needed.

FY 14 Actual: DLA Finance continues to work towards meeting diversity rates with great 

success. Current emphasis is on Hispanic population which is currently below national average. 

Initiative 4-3. Workforce Readiness Index (WRI): Measures Talent Management success 

by aggregating, organizing, scoring, reporting, and analyzing a set of workforce readiness 

indicators, and drive improvements b in the way J8 acquires, develops, manages, and retains 

talent in accordance with Agency policies and OPM regulations.

 

Linkage to Big Ideas: Improve Customer Service

Metric: Assess J8s WRI results with goal of improving. Analyze WRI results, summarize 

findings and distribute to J8 leadership. With leadership, review results/findings and brainstorm 

potential mitigating actions. (1st Qtr, FY 2014). Disseminate results, develop action plan for J8 

Director approval and begin implementation (2nd Qtr, FY 14). Continue implementation and 

adjust action plan as necessary (3rd Qtr, FY 2014)

FY 14 Actual: DLA Finance had a slight decrease in the overall metrics associated with the 

goals – (80%).

Initiative 4-4. Credentials (Professional/Other): Assess the number of employees possessing 

financial credentials and encourage enrollment in degree/certificate programs.

Linkage to Big Ideas: Improve Customer Service
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Metric: Total number of degrees and total number of certificates held by Finance personnel. 

Data obtained through annual data call.

FY 14 Actual: 

 DoD FM Certification 28

 Professional Certifications 129

 Associate Degree 29

 Bachelor's degree 279

 Master's degree 126

Initiative 4-5. Telework Participation. Effectively manage use of telework. Track percentage 

of positions identified as telework eligible; percentage of employees who have current, approved 

telework agreements; and percentage of civilian employees who have teleworked during the 

month.

Linkage to Big Ideas: Improve Customer Service

Metric: 

 J8 telework eligible positions - 100%

 J8 employees who have current, approved telework agreements - track actual usage

 J8 employees who have teleworked at least one day during the month - track actual usage

FY 14 Actual:

 J8 telework eligible positions - 99%

 J8 employees who have current, telework agreements - 99%

 J8 employees who have teleworked at least one day during the month - 70%

Initiative 4-6. Full Time Equivalent (FTE) Management: Secretary of Defense 

Memorandum of August 20, 2010 directed a cap on the number of FTEs for DLA at the FY 2010 

level. The action was intended to preclude further personnel growth. The DLA Director will 

approve the FY 2014 FTE targets and J8 will provide those targets to the field activities and HQ 

staff offices to manage execution within their assigned targets. Tracking actual execution against 

the FTE target (to include vacancies) will allow the Agency to take corrective action if necessary 

to not exceed DLA's overall cap.

Linkage to Big Ideas: Decrease Operating Costs 

Metric (FTE): Actual performance against the target. Green – < or equal to 2% of target; 

yellow - < or = 5% of target; red – > 5% above target.

Metric (Vacancy Rate) = Vacancies/FTE x 100%

FY 14 Actual: DLA Defense Working Capital Fund (DWCF) executed Full Time Equivalents 

were 2,282 (24,006 actual versus a 26,288 OSD CAP)...8.7% below plan (Green). Labor costs of 

$2.235B were $183M below plan ($2.418)...operating cost savings. 
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DLA Joint Reserve Force (J9)

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Defense Logistics Agency

DLA Joint Reserve Force (J9) 

Fiscal Year 2014 Annual Historical Report

1. Mission, Goals, and Priorities

Mission: Provide DLA with trained and ready reservists for contingency operations and 

additive support requirements to include, but not limited to operational support, surge support 

and planning support. Advise the Director, DLA in the development and application of Joint 

Reserve Force (JRF) support, readiness posture and service policies affecting utilization of DLA 

assigned reservists.

The Joint Reserve Force provides the DLA Enterprise with high performing, customer focused, 

and globally responsive logisticians for contingency operations and contributory support 

requirements to include, but not limited to, operational surge and planning support. The JRF 

stands ready to advise the DLA Director on the development and application of reserve support, 

readiness posture, and service policies regarding the utilization of assigned reservists. 

DLA Joint Reserve Force FY14 Goals

GOAL 1

Support all Agency stakeholders, to more accurately project Agency deployment 

requirements and identify sourcing strategies to more effectively support all DLA 

missions.

GOAL 2

Shape the JRF to meet emerging requirements to more appropriately support all DLA 

missions..

GOAL 3

Improve JRF deployment readiness in order to meet increasing DLA deployment 

requirements..

GOAL 4

Improve JRF Ability to provide contributory support to PLFAs, J-codes and DLA support 

exercises.
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GOAL 5

Take aggressive fiscal steps to ensure accountability, reduce operational costs and 

achieve good stewardship of taxpayer resources.

J9 FY14 Priorities

1. Improve Customer Service

2. Decrease Direct Material Cost

3. Decrease Operating Costs

4. Reduce Inventory

5. Achieve Audit Readiness

2. FY14 JRF Resources

 Authorized Funded Billets

o Navy: 407 authorized

o Army: 198 authorized

o Air Force: 134 authorized

o Marine Corps: 13 authorized

Total 752 authorized billets

 Billets assigned by location

o DLA Headquarters: 105

o DLA Central: 4

o DLA Europe & Africa: 10

o DLA Pacific: 4

o DLA Aviation: 37

o DLA Land and Maritime: 41

o DLA Energy: 55

o DLA Troop Support: 48

o DLA Distribution: 218

o DLA Disposition Services: 230

Total 752 authorized

 Full Time Staff

o FTE: 6

o Army – AGR 4 (no cost to DLA)

 Mobilized 4 (no cost to DLA)

o Air Force – Active Duty 1 (no cost to DLA)

o Navy – FTS 3 (no cost to DLA)

Total 18 Full time staff
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 Budget

3. Organization Chart
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4. FY14 Summary of Accomplishments

The Joint Reserve Force began FY14 with a retirement ceremony for RADM Patricia Wolfe, 

honoring over 30 years of Naval service. The retirement of RADM Wolfe, ushered in a new 

Commander, RDML Ron MacLaren.

J9 has been supporting DLA deployment operations since 2001. During FY14, 191 reservists 

mobilized to support DLA’s two DLA Support Teams (DSTs) in Kuwait and Afghanistan. Since 

2001, over 1250 DLA reservists have activated, completing a total of 1497 tours of duty in 

support of Operations; Enduring Freedom, Iraqi Freedom, New Dawn, and Odyssey Dawn. 

Collectively, activated reservists logged more than 47,000 man-days of support to DSTs, Field 

Activities, and Headquarters’ missions in FY14. The Agency’s Stewardship Excellence initiative 

is carried out by the JRF in the 11,743 man-days of operational support provided, at no cost, to 

the Agency.

In order to meet deployment and operational support needs of DLA, the JRF completed 

multiple training activities in FY14. Over 197 DLA reservists participated in the 

Expeditionary Academy at DLA Distribution, Susquehanna, Pa. DLA Distribution’s 

Expeditionary Team partnered with the Organizational management and Expeditionary 

Logistics Division to design the two-week course, which includes hands-on training with 

a variety of Material handling Equipment (MHE), the Distribution Standard System and 

the construction of an inflatable Air Beam shelter. The objective of the course is to 

provide necessary training for DLA members, enabling them to deploy as trained assets 

for DLA Distribution. Additionally, 50 DLA reservists completed the Overseas 

Contingency Operations Readiness Training (OCORT) at DLA Disposition Services, 

Battle Creek, Mi. This training prepared participants for expeditionary requirements for 

Disposition Services to include; construction of work sites and receipt of property. The 

reservist partnered with members of the Civilian Expeditionary Workforce (CEW) during 

this training course, allowing for greater augmentation and knowledge sharing. 

To ensure training requirements match DLA needs and to keep DLA JRF leadership in 

unison, 91 reserve leadership and civilian employees participated in the Combined Drill 

Weekend at DLA Headquarters, in September 2014. This workshop included briefings on 

DLA’s current operations, future challenges, and service-specific requirements, as well as 

detailed discussions for planning JRF annual training opportunities. This forum ensures 

joint team leaders and senior enlisted throughout the JRF understand the current and 

future plans for manning, mobilization, training, and readiness. 

Key Goals and Initiatives

GOAL 1: Support all Agency stakeholders, to more accurately project Agency 

deployment requirements and identify sourcing strategies to more effectively 

support all DLA missions. 
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In FY14 J9 collaborated with all key stakeholders in support of DLA J3 efforts to more 

effectively deploy DLA personnel in support of the Agency. Bi-monthly meetings with 

mobilization stakeholders allowed for appropriate review of the forward mission, 

allowing for accurate deployment cycles and requirements identification. This provided 

J9 with the opportunity to identify personnel by name, six months prior to mobilization, 

affording them more than ample time to prepare for deployment. Concurrently, this work 

identified exercise support requirements, and afforded lead time for training and country 

clearances to be completed and obtained.

Significant accomplishments for mobilization:

- Number of deployed reservists: Increase 48% to196 personnel 

- Over 100 Soldiers from the 1st Mission Support Command, deployed for DLA missions

GOAL 2: Shape the JRF to meet emerging requirements to more appropriately 

support all DLA missions.

Collaboration with PLFAs and J-codes allowed for proper distribution of personnel, skill set, and 

rank structure to meet every task and requirement. FY14 spelled a reduction in forces across the 

military and the reserves were not spared from this. At the end of FY14, DLA was advised of 

upcoming reductions in Navy billets as well as Air Force drill day allotment. The DLA JRF 

Navy contingent was to be reduced by 20% and the Air Force reduced the number of authorized 

drill days, cutting them in half. J9’s efforts to accurate forecast manpower requirements, allowed 

the flexibility to adjust workload with the reductions. As the FY concluded, efforts begun to 

reclaim the lost Navy billets, and a restructuring of Air Force billet locations began.

GOAL 3: Improve JRF deployment readiness in order to meet increasing DLA 

deployment requirements.

Deployment readiness is the key to success for J9. The JRF’s ability to deploy and support DLA 

missions at home and abroad, requires J9 reservists to be mission ready. To be considered 

“green” for readiness, one must be in good standing for; medical/dental, active security 

clearance, up-to-date on Service specific training as well as DLA training, and a current passing 

physical fitness test. Prior to FY14, only one readiness training event was conducted. This 

method worked for several years; with the continuing dedication and work driven by Goal One, 

four different readiness events were planned and executed in FY14. DLA Distribution hosted the 

Expeditionary Academy in New Cumberland, Pennsylvania, focusing on all facets of the 

Distribution mission. More detail can be referenced in Appendix B. DLA Disposition Services 

conducted the Overseas Contingency Operations Readiness Training (ORCORT) in Battle 

Creek, Michigan; see Appendix C for greater detail. The Army Reserve Element (ARE) 

conducted a Training and Readiness Event, focusing on Soldier skills and readiness. DLA Land 

and Maritime conducted Contracting Officer Representative training to their reserve personnel, 

preparing them for future contracting operations.
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GOAL 4: Improve JRF ability to provide contributory support to the PLFAs, JCodes and DLA supported exercises.

VADM Harnitchek’s “Five Big Ideas” has the goal of “Decreasing Operating Costs.” J9 has 

minimal operating costs, so the decision was made to increase contributory support across the 

Agency by ten percent, over five years. FY12 was the baseline year for contributory support; that 

year the JRF provided 10,930 days of support. The goal for FY14 was a total of 11,438 days of 

contributory support. Overcoming Sequestration and increased deployments, the JRF was able to 

surpass its goal and complete 11,813 days of support. The below table shows the support 

provided over FY14.

GOAL 5: Take aggressive fiscal steps to ensure accountability, reduce operational costs 

and achieve good stewardship of taxpayer resources.

FY14 was a growth year for J9. Two full time employees (FTEs) were hired, rounding out 

vacancies that had plagued J9 for over a year. All training and travel budgets were on target and 

did not exceed budgeted levels. In support of the Audit Readiness initiative, J9 joined the rest of 

the Agency, in the creation and submission of internal Standard Operating Procedures (SOPs), 

focusing on those tasks required to orchestrate the JRF mission. 

GOAL 6: Implement action plans/strategies informed by J9’s 2012 Cultural Survey and 

Workforce Readiness Index results.

Identified in the 2012 Culture Survey, “Employee skill investment” scored the lowest across the 

surveyed population for the JRF. In 2014, emphasis on personnel education and growth was 

focused on, with several employees attending necessary and desired training courses, providing 

them with great knowledge and proficiencies in their jobs. In July 2014, the 2014 Culture 

Survey results were published and an increase in every focus area was seen for J9, most notably 

the “employee skills investment” area increased, shedding light on the renewed focus on 

employee education. Part of being a good steward of taxpayer resources is effective work. 
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During 2010, the National Capital Region (NCR) was shutdown due to a major snow storm. As 

such, J9 began issuing laptop computers and removing desktops, in an effort to be productive at 

all costs. All J9 personnel were capable to conduct teleworking operations during FY14.
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APPENDIX A

FY14 SIGNIFICANT ACCOMPLISHMENTS FOR DLA AVIATION, JOINT RESERVE 

FORCE

Accomplishments:

Air Force Colonel Paul Meyer led the DLA Aviation JRF team to another great year. The 463 

days of Operational Support provided by DLA Aviation were dedicated to several taskers and 

projects. Of these the researching of National Stock Numbers (NSNs) and working to reduce 

backorders and purchase requests help to provide faster and cheaper service to their customers. 

DLA Aviation JRF worked on the A-10 Ballistic Foam project, helping with sourcing strategies 

for the A-10. The JRF also assisted in the development of a DLA Aviation Retail Manual for 

customers. The Sourcing and Reliability Program Branch worked with the JRF to develop a 

master list and visual aid of Navy bases around the world and the aircraft platforms housed there. 

Awards:

Logistics Specialist First Class (LS1) Katherine Hoops won the Sailor of the Year award, 

competing against the rest of the Navy Reserves. Logistics Specialist Second Class (LS2) Scott 

Wichmann and Logistics Specialist Seaman (LSSN) Jordan Trader won the Blue Jacket of the 

Year award, also competing against the whole of the Navy Reserve.
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APPENDIX B

FY14 SIGNIFICANT ACCOMPLISHMENTS FOR DLA DISPOSITION 

SERVCES, JOINT RESERVE FORCE

Accomplishments:

Navy Captain Michael Kriger maintained command of the DLA Disposition Services JRF in 

FY14. As one of the largest reserve attachments assigned to DLA, Disposition Services 

provided nearly 1700 days of Operational Support. The supportive work provided by reservists 

in the Defense Reutilization and Marketing Office (DRMO) yard helps to reduce full time 

civilian overtime hours and backlogs in the DRMOs around the globe. Reservists are involved 

in most facets of Disposition Services, but are most effective; sorting, segregating, and 

conducting DEMIL operations within the DRMO. In FY14 reservists processed over 78,000 

line items, and $426M. Of the $426M processed, $11.9M was in precious metal recovery, 

$9.1M at the FT. Meade sorting and segregating facility, and over $33M in assisting with the 

Hill Air Force Base clean up. 

Awards:

LS1 Lance Wentworth received Sailor of the Quarter, for first quarter FY14, and went on to 

receive Sailor of the Year from the Naval Operations Support Center, Bessemer, AL. Ensign 

Christopher Deason was selected for the Direct Commission program and was promoted to the 

rank of Ensign.
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Defense Logistics Agency

DLA Installation Support (DS) 

Fiscal Year 2014 Annual Historical Report

1. Introduction

The Defense Logistics Agency (DLA) Installation Support (DS) Historical Record outlines the 

actions DS took over the course of Fiscal Year 2014 (FY14) to improve and sustain the 

effectiveness and efficiency of service provided to our customers, civilian and military, internal 

and external to DLA. It also provides the key operating goals, initiatives, metrics, and tools used 

to regularly monitor our performance to ensure we can meet present and future requirements.

The input in this report is based on the DS FY14 Annual Operating Plan (AOP) and our results in 

meeting that plan objectives. The DS AOP has seven key operating goals and metrics that 

support the DLA Director’s Guidance to decrease operating costs, rightsize inventory, improve 

customer service, and achieve audit readiness. These key operating goals are:

 Improve Safety: Demonstrate our commitment to the safety of all DLA employees and 

customers. Maximize employee awareness of safety programs and participation in safety 

programs to reduce workplace injuries.

 Improve Customer Service: Demonstrate our commitment and responsibility to 

customers

 Decrease Operating Costs: Achieve efficiencies and reduce operating cost

 Reduce Inventory: Review and adjust strategic requirements

 Achieve Audit Readiness: Actively participate with DLA efforts to demonstrate our 

commitment to transparency and accountability

 Optimize Business Processes: “Improve Process and Productivity” 
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 Improve Support to the DS Workforce: Formalize and coordinate policy and guidance 

that assists the workforce in performing their jobs.

2. Mission, Vision, and Values

a. Mission: DLA is America’s Combat Logistics Support Agency. We provide 

effective and efficient worldwide support to Warfighters and our other customers. 

b. Vision: Warfighter-focused, globally responsive, fiscally responsible supply chain 

leadership.

c. Values: Our values are DLA’s foundation for all we do. They provide our guiding 

principles as we accomplish our mission, pursue our vision, and strive to do what is right for the 

Armed Forces and DOD: 

 Warfighter need guides us

 Integrity defines us

 Diversity strengthens us

 Excellence inspires us

3. Supporting DLA Installation Support (DS) Organization Mission and 

Vision

a. Mission: Provide standard, effective and efficient Enterprise-wide installation 

support services to all DLA organizations.

b. Vision: Ensure consistent world-class installation support service, enabling DLA to 

accomplish its mission while enhancing our people’s well-being and readiness to accomplish the 

mission.

________________________________________________________

DLA Installation Support

Enabling DLA’s Primary Level Field Activities and Headquarters Staff to enhance DLA’s 

logistics and service capabilities in support of the warfighter

_________________________________________________________

4. Overview

a. Scope of Business: DLA Installation Support exists to enable the DLA mission of 

supporting the warfighter. Our goals support DLA’s strategy and our customers’ operations.

 Business Units: DS provides worldwide policy, program, and operational support in the 

areas of:
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 Installation Management

 Occupational Safety & Health

 Environmental Management

 Security and Emergency Services

 Business Management

 Family & Morale, Welfare and Recreation

DS provides worldwide operational support to over 33,000 customers to include DLA 

Headquarters (HQ), Primary Level Field Activities (PLFAs), Warfighters, the Department of 

Defense (DoD) and Federal / State agencies. Our strategic initiatives contribute to the overall 

DLA goals to improve service, cultivate and foster a safe environment, achieve significant 

efficiencies, and realize cost reductions. We are responsible for 1,991 civilian employees 

geographically dispersed across the United States and overseas consisting of five major stateside 

host installations, four non-host sites, and two overseas sites. In FY 14, DS provided oversight 

of the DS budget totaling $1.012B. This includes both DWCF and Appropriated funds. 

Successfully obtained congressional approval for $341 million for the FY14 MILCON program, 

the largest ever for DLA and have been one of the few DoD components to have obtained 

subcommittee approvals of all requested FY 15 MILCON projects. Exceeded plans by 

overseeing the obligation of expiring MILCON appropriations in excess of 99.5 % funds 

distributed to DLA. In support of the DLA Director’s goal to save $10.3B in materiel and 

operating cost through FY19, DS was assigned a new target to reduce operating cost by $11.2M. 

The cost reduction target was exceeded, reducing our operating costs by $13.92M. Eliminated 

$6.3 million of the Non-Automated Data Processing Capital program; saved $3.42M per year in 

energy consumption through the implementation of energy conservation initiatives; reduced 

police officer overtime by $1.7M; reduced travel costs by $1.5M; and saved $1M by using the 

Defense Threat Reduction Agency’s capability to conduct Anti-Terrorism Vulnerability 

Assessments.

b. Personnel 

 Full-Time-Equivalent (FTE) Authorized 1708

 Non-Appropriated Fund Civilians 282

 Military 1

 Total 1991

c. Budget: Achieved a 98% obligation rate for the Defense Working Capital Fund 

(DWCF) operations budget and successfully managed several Fiscal Year (FY) 2014 Annual 

Operating Budgets (AOBs) totaling $1.01 Billion. This includes $962.3 Million budget for 

DWCF, Appropriated, and Non-Appropriated programs, as well as the Defense Continuity and 

Crisis Management (DS-M) activity’s $55.5 Million budget.
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5. Organization
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6. Key Organizational Goals

DLA Installation Support (DS) strategic initiatives contribute to the overall DLA goals to 

improve service, cultivate and foster a safe environment, achieve significant efficiencies, and 

realize cost reductions. 

GOAL 1: DLA Installation Support: Improve Safety 

We demonstrated our commitment to the Safety of all DLA employees and customers and 

maximized employee awareness of Safety programs and participation to reduce workplace 

injuries, as evidenced in the following accomplishments:

Promoted the Occupational Safety and Health Administration’s (OSHA) Voluntary Protection 

Program (VPP) throughout the Agency. DLA achieved a Total Case Incident Rate of 1.12 and a 

Lost Time Case Rate of 0.42 against a goal of 1.54 and 0.51 respectively, in support of the 

Presidential Protecting Our Workers and Ensuring Reemployment (POWER) Initiative.

Deployed five safety specialists to Afghanistan to provide full time safety support for DLA 

operations located in Afghanistan. The goal was to improve safety procedures for DLA 

personnel involved with disposition and demil operations. Their experience provided valuable 

information that will be used in supporting DLA operations in the future. In support of DLA 

Support Team Afghanistan (DST-A): 

 Developed and established the Afghanistan AOR Occupational Safety and Health 

(OSH) program. These processes and procedures greatly improved the ability to 

reduce injuries, illness, or death, and material losses or damage and maintain safe and 

healthy working conditions. 

 Developed an Industrial Hygiene sampling plan for cutting operations to determine 

the correct respiratory protection for DLA employees; also developed and conducted 

Noise level exposure model for shredding and deforming operations

 Implemented a respiratory protection program including conducting negative pressure 

respiratory Fit Testing in accordance with 29 CFR 1910.134 for over 100 joint 

military/Expeditionary Disposal and Remediation Team (EDRT) members

 Integrated DLA’s operations in Afghanistan into DLA’s Enterprise Safety 

Application Management System (ESAMS). ESAMS is a centralized web based 

safety management tool used to report and monitor mishaps and to schedule and 

document inspections and hazard reporting.

Integrated DLA’s Occupational Safety and Health program into DLA’s support of Operation 

United Assistance and coordinated with various levels of DOD and DLA leadership to ensure 

DLA’s employees were provided protection during deployment and support during 

redeployment. 
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“General Public Safety Awareness”

Achieved the highest performance levels by establishing, implementing and maintaining 

safeguards to protect all DLA personnel, facilities, mission, and resources from terrorism, 

vandalism, misuse, theft, assault, espionage, sabotage, unauthorized disclosure or loss. In a year 

of several incidents at military installations--Zero terrorist or major criminal incidents occurred 

against DLA 

Authored several articles for DLA Today and DLA Installation Support Newsletter to educate 

DLA employees:

 Crime Prevention, Combating Trafficking in Persons (CTIP), criminal threats, mitigation 

and reporting procedures, emergency procedures and Fire Safety & Prevention. 

 Promoted use of DLA iWATCH through articles, exercises, tests, and development of a 

video script utilized to reinforce mechanisms for reporting suspicious activities across 

DLA. 

Improved the organic Criminal Intelligence (CRIMINT) capability at DLA Headquarters:

 Conducted liaison with numerous law enforcement agencies in Virginia and expanded the 

agency’s data mining capability by seeking and obtaining access to CRIMINT products 

published by the military services and other law enforcement agencies. 

 Authored over 50 "Weekly CRIMINT Summaries," detailing all criminal/force protection 

threat information with a DLA nexus. 

 Published numerous “Be-On-The-Lookout” (BOLO) advisories for dissemination across 

DLA, highlighting specific threat information and officer response procedures for dealing 

with known/suspected felons thought to be in the local vicinities. 

 Prepared and presented CRIMINT threat briefings for Installation Threat Working 

Groups and DLA leaders at DLA Headquarters. 

Developed standardized DLA Active Shooter Awareness Cards.

GOAL 2: DLA Installation Support: Improve Customer Service

We demonstrated our commitment and responsibility to all customers by enhancing Quality of 

Life and providing agile, responsive, and integrated installation support to enable DLA’s Primary 

Level Field Activities (PLFAs), and Headquarters Staff to enhance DLA’s logistics and service 

capabilities in support of the Military Services, Combatant Commands (COCOM) and 

designated Federal and State agencies. This includes leading the Agency’s Military Construction 

(MILCON) and Sustainment, Restoration, and Modernization (SRM) management and planning 

efforts. 

DS concluded DoD’s Model/pilot of a successful Healthy Base Initiative (HBI) with emphasis 

on providing an environment to promulgate health and fitness throughout DLA. Some of DLA 

HBI initiatives included health promotion/fitness councils, child development center expansion, 
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311

newly renovated cafeteria and healthier menu selections, health and fitness challenges through 

sites, and seasonal farmers markets. 

 Procured bicycles and support equipment for DLA host site Fitness Centers for patrons 

electing this form of exercise.

 Implemented Journeyman’s fitness program at DLA Fitness Centers to encourage and 

support fitness needs of new customers.

 Developed Health Promotion/Fitness Councils at DLA Host Sites.

 Implemented the Seasonal Farmers Markets at all locations where DLA is the host.

Coordinated the Agency’s National Preparedness Month activities, including participation in the 

Defense Department’s efforts by providing stories and information that was highlighted on the 

department’s preparedness website. Month long activities across the entire Enterprise provided 

information and training to enhance individual, family, organization, and community 

preparedness for catastrophic events. 

Developed a Fire & Emergency Services (F&ES) collaboration room in eWorkplace for F&ES 

personnel and leadership to retrieve F&ES data or information efficiently. Involved both IAFF 

and AFGE union representatives who represent their respective DLA F&ES Departments in Fire 

Chief Working groups and pre-decisional involvement meetings for the F&ES Fitness & 

Wellness and Emergency Communication Center policies: 

 This allowed union input and knowledge of F&ES policies and issues up front. 

 Participation with union representatives, established a good working relationship and a 

more effective process during the approval of the issuances. 

Conducted Real Time Automated Personnel Identification System (RAPIDS) staff assistance 

visits (SAVs) with DLA RAPIDS sites to ensure DoD compliance:

 DLA San Joaquin RAPIDS site recognized by Defense Manpower Data Center (DMDC) 

as one of the top 11 RAPIDS sites within DoD, March 2014.

 Developed Common Access Card (CAC) accountability methodology for returning 

CACs to DMDC for accountability. DMDC applauded method and is considering 

utilizing across DoD. 

Successfully ensured agency conducted 100% required installation full-scale exercises and 

evaluations including an Active Shooter scenario. DS Security and Emergency Services 

observed all full scale active shooter exercises and provided positive observations and areas for 

improvement, which will improve the workforce preparations for an active shooter threat 

ensuring DLA’s mission continues with little disruption.

GOAL 3: DLA Installation Support: Decrease Operating Costs 

Achieved a 98% obligation rate for its Defense Working Capital Fund (DWCF) operations 

budget and successfully managed several Fiscal Year (FY) 2014 Annual Operating Budgets 

(AOBs) totaling $1.01 Billion. This includes $962.3 Million budget for DWCF, Appropriated, 
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and Non-Appropriated programs, as well as the Defense Continuity and Crisis Management (DSM) activity’s $55.5 Million budget.

DS saved over $1.35 Million in travel costs in FY14 by continuing to improve the DS travel 

requirements planning, coordination, and review process. For the second year in a row, DS 

reduced travel expenses by more than 45% from actual FY12 travel expenditures in the effort to 

meet the Office of Management and Budget’s (OMB’s) mandated travel reduction objectives.

Successfully completed plans to reduce over $80.2 Million in DS costs from FY15 through FY20

during the PBR16 process.

Reduced Overtime (OT) costs by over $1 Million and Compensatory Time (CT) costs by over 

$400 Thousand. This was accomplished by continuing to provide oversight for OT/CT caps and 

tracking actual execution for each DS Site and Staff Office by conducting monthly reviews.

Implemented an enterprise-wide Energy Reduction Campaign that accomplished the following:

 Reduced energy consumption in DLA by 5.6% in FY14 from FY13. 

 Increased DLA renewable energy production from 0.1% to nearly 1.0% of DLA's 

consumed energy (this improvement required significant project execution and 

efforts).

 Published DLA Retained Savings policy in the 3rd QTR FY14, returning over $2.4M 

to DLA Host Site energy program budgets.

Managed the Sustainment, Restoration and Modernization (SRM) to meet execution goals and 

maintain installation excellence.

 Oversaw execution of the agency’s $630.5M facilities Sustainment Restoration and 

Modernization (SRM) program; $598.2M was obligated in FY14 (94.9%). 

 Completed the FY16 President Budget exhibits for DLA MILCON valued at $276 

million and comprised of nearly 100 pages of DD Form 1391 exhibits. All the 

exhibits were completed on time. None of them were rejected by OSD for formatting 

errors.

Successfully presented via oral testimony, and limited subsequent follow on written responses, 

on the $295 million dollar DLA FY15 MILCON President’s Budget Submission to the 

appropriate Congressional Committees.

Optimized FY14 MILCON project selection, as evidenced by 100% program approvals from 

OSD and Congressional subcommittees, on the largest ever $341 million program.

Adjusted MILCON project amounts to accommodate program cost growth, while exceeding 

obligation rates of 99.9% on over $218 million of expiring FY10 MILCON appropriations.
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Supported the DLA Energy/JCS/CoCOM Installation Planning and Review Board (IPBR) efforts 

to evaluate and prioritize over $450 million for FY18 and pre-IPRB board for FY19 future 

MILCON projects.

Successfully completed development of exhibits for a $1.4 billion MILCON Program Review 

Collection Process (PRCP) for DLA’s MILCON requirements across the future budget years.

Provided Congressional MILCON Notifications on over $17 million of unspecified minor 

construction projects or above threshold reprogramming.

Provided 10 USC 2851 reporting to the appropriate MILCON Congressional Committees and 

OSD on over $830 million on DLA MILCON projects in active execution.

The DLA Director directed DS to consolidate all DLA warehousing, storage, disposition, and 

installation support operations located on two separate sites (Tracy and Sharpe, CA) to our main 

site in Tracy. The consolidation effort was designed to offset declining DOD funds and support 

his Big Idea goal to decrease the Agency’s operating costs by $10.3B by the end of FY19. This 

consolidation effort and the transfer of the Sharpe site to the Army saved DLA $13.3M annually 

in labor and non-labor costs. 

Instituted intensive, quarterly DLA Enterprise facility tracking and validation of Acquisition, 

Returns and Demolition of buildings and building space

 Infrastructure Reductions: 4th QTR FY13-FY14 returns total 3.5M GSF (65 

Buildings/Spaces) 

 Infrastructure Demolitions: 4th QTR FY13-FY14 demolitions total 24 Buildings (2.7M 

GSF)

GOAL 4: Reduce Inventory

Finalized the plan to implement the Defense Property Accountability System (DPAS) as the 

agency Fleet Management Information System, per direction from OUSD(AT&L).

 Reduced vehicle petroleum usage by 7.1% in FY14 from previous year, exceeding the 

Federal goal of 2% per year.

 Facilitated establishment of a program to utilize E-ZPass toll payment transponders 

enterprise-wide and prepared a DTM to standardize the process.

 Developed options to achieve the DLA Director’s goal to reduce fleet by 25.5% to 1,085 

vehicles by end of CY14; as of 1 Dec 2014, fleet reduced by 81 vehicles, and ordered 

Low-Speed Vehicles and electric carts to replace another 90 motor vehicles in first 

quarter CY15. Eliminated 72 vehicles in FY14 (5% of fleet). 

 In FY14, 83% of all vehicles acquired were Alternative Fuel Vehicles (AFV), exceeding 

the 1992 Energy Policy Act requirement that 75% be AFV. 
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Completed an out-of-cycle reconciliation of DLA Police weapons ensuring 100% accountability. 

Once results have been validated through DLA Disposition, this action will make future 

validation inventories more efficient and accurate

GOAL 5: Achieve Audit Readiness 

In support of DLA’s mandate to be audit ready by 2015, DS reconciled over 90% of all real 

property assets, during the first ever book-to-book reconciliation effort. Also developed and 

submitted to the Office of the Secretary of Defense a packet to assert the Agency’s host 

installation real property assets.

 Successfully orchestrated an Independent Public Audit (IPA) to achieve an “Unmodified 

Opinion,” validating the Acquire to Retire (A2R) FY13 Real Property assertion. 

 Successfully completed an Independent Public Audit of the Environmental Liabilities 

Management (ELM) FY 13 Assertion. Leading the way for DLA’s ELM program to 

become a model for DoD’s Environmental Audit Readiness Initiative. 

 Inventoried 100% of all capital and 92% of general equipment property over last two 

years, leading the development and submission to the Office of the Secretary of Defense 

a packet to assert the Agency’s host installation General Equipment assets.

Deployed the Defense Biometric Identification System (DBIDS) as DLA's Physical Access 

Control System (PACS) in March-April 2014 at the DLA Headquarters Complex, Defense 

Supply Center Columbus, Defense Supply Center Richmond, Defense Distribution Center 

Susquehanna, and Defense Distribution Center San Joaquin: 

 DLA Police have scanned over two million credentials presented for installation access 

since DBIDS' deployment, and have registered over 4000 alerts for expired, revoked, and 

lost/stolen credentials. 

 DLA is the only DoD Component with 100% PACS deployment at hosted installations, 

ensuring our workforce is protected from unauthorized entry to DLA installations. 

Partnered with J7 and J6 to close out an Office of Inspector General (OIG) Trusted Associate 

Sponsorship System (TASS) Audit, identified as a top priority by the DLA Director, which 

resulted in 100% closure of audit recommendations. Efforts ensure only authorized DLA 

contractors possess DoD CACs. 

Successfully conducted 100% required installation full-scale exercises and evaluations including 

an Active Shooter scenario. DS Security and Emergency Services observed all full-scale active 

shooter exercises and provided positive observations and areas for improvement, which will 

improve the workforce preparations for an active shooter threat ensuring DLA’s mission 

continues with little disruption. 

Operationalization of the automated Police Records Management System (RMS) and developed 

a comprehensive RMS policy for inclusion in DLA Manual 4302, Police Manual, governing 

system use. RMS provides enhanced police incident reporting protocol, report writing format, 

and notification procedures for offenses reported to DLA Police. The system resulted in 
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improved standardization across the DLA Police Enterprise and affords HQ Criminal 

Intelligence personnel the ability to analyze and quantify threat reporting, identify potential 

trends, and provide actionable threat information to Agency senior leaders and the DLA security 

apparatus, to include DLA’s Office of the Inspector General, Insider Threat Working Group, 

Mission Assurance Working Group, and Installation Chiefs, Security and Emergency Services 

(S&ES), for use in identifying and mitigating threats to DLA assets. 

Facilitated operationalization of the DLA Enhanced 911 (e911) system, a DLA Director “fasttrack” $1.2 million dollar project. Once fully operational this system will provide a scalable, 

flexible, and adaptable platform for delivering wired, wireless, and Voice over Internet Protocol 

(VoIP) emergency calls to Emergency Communication Centers; enabling quick and accurate 

dispatching of emergency personnel. 

Ensured 100% of required Higher Headquarters Antiterrorism Vulnerability Assessments (IAW 

DoDI 2000.16) at DLA host sites received Joint Staff Integrated Vulnerability Assessments, 

resulting in cost savings of $600K. 

Conducted Real Time Automated Personnel Identification System (RAPIDS) staff assistance 

visits (SAVs) with DLA RAPIDS sites to ensure DoD compliance. 

 DLA San Joaquin RAPIDS site recognized by Defense Manpower Data Center (DMDC) 

as one of the top 11 RAPIDS sites within DoD, March 2014. 

 Developed Common Access Card (CAC) accountability methodology for returning 

CACs to DMDC for accountability. DMDC applauded method and is considering 

utilizing across DoD.

DS supported DLA’s Audit Readiness Initiative by providing oversight for DLA Installation 

Support’s (DS) financial standard operating procedures. This involved tracking, reviewing, and 

normalizing 100 separate financial Standard Operation Procedures (SOP) and consolidating them 

into 7 SOPs. 

DS established the new DS Records Management Program that is essential to supporting DLA's 

Audit Readiness Initiative and the DS Risk and Controls Program. DS was the first activity in 

DLA to publish its new Records Management (RM) SOP, and review a records series in the 

DLA records schedule for Family Morale, Welfare, and Recreation (FMWR) and NonAppropriated Funds in more than 20 years.

The DS SOP standardizes the records management process for the DS Enterprise. 

Goal 6: Optimize Business Processes 

Operated DS as a business by developing standard portfolio of missions, services, and 

performance goals based on statutory requirements. DS published its FY15 Annual Operating 

Plan (AOP) that directly aligned DS goals and objectives to the DLA Director’s Strategic 

Guidance.
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Successfully prepared and submitted DLA’s Strategic Sustainability Performance Plan (SSPP), 

which lays out the sustainability goals and performance expectations for DLA, to OSD (I&E) 

and to the Council of Environmental Quality.

Developed a DLA Enterprise Real Property Master Planning Framework to provide for DoD 

compliance and strengthen the justification for future facility investments (MILCON and SRM).

 Coordinated with CNIC for the identification, contracting and demolition of 5 buildings 

at Mechanicsburg, totaling 600K GSF. To-be demolished in FY15. Contract awarded 

September 30, 2014. 

 Developed and coordinated a plan of action with the Army and DS Susquehanna to rightsize Family Housing at New Cumberland/Susquehanna, securing funding for the 

demolition of 16 units that were under occupied due to size constraints.

 Provided strategic infrastructure planning program management and oversight for SNO 

and Freeze the Footprint initiatives, ensuring that the DLA infrastructure footprint was 

consistent with OSD guidance for acquiring or recapitalizing warehouse or administrative 

facilities.

Replaced the current version of CTIP annual mandatory training with a 15 minute revised 

refresher training, once employees have successfully completed the mandated initial training, 

they are authorized to take the revised annual training. 

 DLA achieved 97.7% CTIP training completion in Fiscal Year (FY) 2014, a 5.7% 

increase over FY 2013. DLA also maintained AT Level I completions above 90% all 

year. 

Researched and developed contracts for a validation study of the elliptical machine and police 

ammunition. Both contracts were awarded. The elliptical contract sets forth the requirement for a 

validation study of the PRECOR model EFX 556i and Life Fitness model 95X elliptical trainers 

as an alternative for the 1.5-mile run for the DLA Police Physical Agility Test (PAT) and will 

yield standards and procedures for its use that are equivalent to the current 1.5 mile run PAT test 

standards for agency police officers. 

Completed support for the DS-FC radio communications replacement project and with assistance 

from the DS Business office ensured full funding: 

 Led to $1.9M capital minor construction funding being reprogrammed to Columbus 

non-ADP capital equipment to fund the Columbus radio system. 

 Greatly enhanced communication system capacity and prevents major delays in 

mission critical communications during an emergency which would inhibit the 

effective response of first responders. 

Completed the definition of minimum radio communications requirements for Security and 

Emergency Services to assist with enterprise standardization of radio communication services, 

and prepared documents for presentation to J6. 
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All DLA Child Youth Services programs passed their annual inspections and will receive DoD 

certification. All Centers are now also Accredited by the National Association for the Education 

of Young Children.

GOAL 7: Improve Support for the DS Workforce

Created and maintained a work environment that promoted productivity, job satisfaction, respect 

for self and others, fosters initiative and responsible risk taking, and a culture that values and 

supports workforce diversity. Formalized policy and guidance that assist the workforce in 

performing their jobs.

Successfully implemented a workforce development program for the DS Enterprise:

 Improved DS training business practices and process and implementing training 

standards across the DS workforce.

 Improved mandatory training completion rate from 90% in 1st QTR FY14 to 94% in 

4

th QTR FY14. Also, training status across DS improved each quarter and now meets 

or exceeds the DLA Training Goal of 90% or greater for DS Enterprise-Wide 

Mandatory Training (EWMT)

Increased the number of DS participants in DLA’s Executive Development Program (EDP) by 

263% by reviewing 100% of submissions for DS employees. Of 22 DS employees 

recommended in FY14, 19 were selected by the DLA Executive Resource Board. Also, 24 DS 

EDP packets were submitted for FY15. 

DS achieved a 100% enrollment rate for new DS supervisors in the DLA Enterprise Leader 

Development (ELDP) program by the end of 2nd QTR FY14. 

Successfully implemented the new DS Climate Culture Program. This involved coordinating 

Denison culture training for our DS Culture Champions (March 2014). The DS Culture 

Champions leveraged training in preparing their Staff and Site workforce for participating in the 

DLA Climate Culture survey and learned how to link their Staff and Site culture survey results to 

action plans. These efforts established a forum for employees to identify strengths and 

weaknesses of their organization, encouraged employee involvement in creating a positive 

workplace, and improved communications between employees and managers.

Supported J3 as an administrator and stakeholder in the development of agency guidance, 

deployment, and implementation of a Mass Notification System (AtHoc), which provides an 

enhanced capability for our Mass Warning Notification Systems; reaching 25,000 DLA 

individuals at seven main locations. 

Additional Accomplishments

 DLA Aviation and DS Richmond selected as the recipient of the Commander’s-In-Chief 

Award for Installation Excellence.
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 Completed construction of an addition to the existing (CDC) at Defense Supply Center 

Richmond. The new addition has the capacity to support the care of an additional 52 

children

 DLA Installation Support at Richmond replaced 148 older T8 fluorescent lights in 

Building 103 with modern light-emitting diode lamps, reducing energy consumption for 

these fixtures by 53%.

 Seven DS security professionals are among the first in DoD to receive the Physical 

Security Certification (PSC). This is one of a list of specialized certifications that make 

up the Security Professional Education Development program. 

 DS San Joaquin, CA was recognized with a Site Excellence Award by the Office of the 

Under Secretary of Defense for Personnel and Readiness for outstanding performance in 

support of the Defense Enrollment Eligibility Reporting System (DEERS) and Real-time 

Automated Personnel Identification System (RAPIDS) during the period from October 1, 

2012 through September 30, 2013. 

 Promoted the CFC campaign and achieved 105.5% of DS HQC goal...$59,928 versus a 

goal of 56,824.

 DS Columbus, Richmond and San Joaquin Fire Departments have been recommended for 

reaccreditation through the Commission on Fire Accreditation International. DLA 

remains the only DoD Component/Agency that has 100% of their departments accredited.

 Worked with J6 and Auto Desk to enhance the Enterprise Emergency Response System 

Incident Command Board. The enhancement will provide vital real time data during an 

emergency incident, efficiently and effectively.

 Reviewed nine military construction projects, with a total value over $150M, to ensure 

DoD minimum Antiterrorism Standards and Level of Protection were met to ensure a 

safe and secure environment for DLA workforce
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Defense Logistics Agency

DLA Small Business Programs (DB) 

Fiscal Year 2014 Annual Historical Report

1. Overview/Missions

a. DBA: Small Business (SB) Programs, Policy, and Operations

 Principal advisor to the Director on all Small Business matters

 Provide small business advocacy and promote small business utilization to strengthen the 

competency, capability, and commitment of the industrial base that fulfills DLA’s 

mission as America’s Combat Logistics Support Agency

 Maintain liaison with OSD OSBP, SBA, other SB offices within DoD, other Federal 

agencies, and AbilityOne

 Conduct outreach to the small business community by providing counseling and 

assistance to firms seeking to do business with DLA

 Provide staff support to the Department of Defense (DoD) member of the Committee for 

Purchase from People Who Are Blind or Severely Disabled under the Javits-WagnerO’Day (JWOD) Act (the AbilityOne Program)

b. DBB: Procurement Technical Assistance Program (PTAP)

 The PTAP was established by section 1241 of the DoD Authorization Act for Fiscal Year 

1985 (Public Law 98– 525) in an effort to expand the number of businesses capable of 

participating in government contracts. The statute assigns administration of the program 

to DLA and authorizes cooperative agreements with states, local governments, nonprofit 

organizations and other eligible program participants to carry out the program.

 Within DLA, the Office of Small Business Programs (DB) is responsible for 

implementation and execution of the PTAP:

• Manage Congressional appropriation

• Evaluate/Award cooperative agreements from proposals received in response to 

our recent solicitation

• Perform oversight of the 98 PTA Centers (PTACs)

2. People
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 Authorized 14 Full Time Equivalents (FTEs) comprised of GS-1102 and GS-0343 

personnel.

 DB’s new Administrative Support Assistant, Ms. Carrie Booth, GS-08 came on board 

October 5, 2014.

 1 detail – Ms. Trish Culbreth, Deputy Director, is in a Temporary, not-to-exceed one year 

position. The former Deputy Director, Ms. Christina Young, was accepted into The 

Eisenhower School for the Fiscal Year 2014/2015 academic year.

 1 vacancy – GS-13 1102 Procurement Analyst

 2 FTEs are co-located with Troop Support and primarily service the DLA Contracting 

Support Office and Strategic Materials small business program needs.

 All FTEs are authorized to telework. 5 FTEs authorized one recurring telework day each 

week.

3. Organization Chart 

SMALL BUSINESS PROGRAMS (DB)

ORGANIZATION

Supervisors

Remote Location 

MS. AMY SAJDA 

DIRECTOR

MS. TRISH CULBRETH

DEPUTY DIRECTOR

MR. CHRIS HALL

PTAP PROGRAM MANAGER

MS. CARRIE Booth

ADMINISTRATIVE SUPPORT ASSISTANT

MS. PAT CLEVELAND

Procurement Analyst

SB Programs & Prime Contracting

Vacant

Procurement Analyst

SB Programs & Subcontracting

MR. CHRISTOPHER KEHOE

Management Analyst

MS. ALANDRA JONES

Procurement Analyst 

SB Programs Policy

MS. ROSITA CAROSELLA 

Associate Director of SB

DCSO SB Programs Office

MS. AGGIE GALLAGHER

SB Specialist

DCSO SB Programs Office

UPDATED 19 Dec 2014

MS. SHERRY SAVAGE

Grants Officer

MS. NATALIE ROSS

Grants Officer

MS. YOLANDA MCCAULEY

Grants Officer

MR. ELLIS ANDERSON

Program Analyst

Vacant/Hire Pending
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4. Mission Essential Task List – METL (Includes Challenges, Background, 

Operations) 

a. Establish Small Business Goals for FY 2014 

The Defense Logistics Agency (DLA) is committed to doing business with U.S. owned small 

businesses. DLA recognizes the necessity of small businesses remaining viable, valuable 

resources in our industrial base. Through the dedicated activities of our Primary Level Field 

Activity (PLFA) Offices of Small Business Programs, DLA continually works towards 

increasing small business participation in DLA procurements. In FY14, DLA surpassed its OSD 

assigned small business goal of 32% with 34.2% of eligible DLA contracting dollars awarded to 

small businesses.

DLA’s small business goal is an annual metric assigned by OSD OSBP. It is calculated as a 

percentage of eligible small business dollars as reflected in the Federal Procurement Data System 

(FPDS). In FY14, DB monitored achievement of awards in the following categories on an 

ongoing basis: Small Business (SB), Small Disadvantaged Business (SDB), Women-Owned 

Small Business (WOSB); Service-Disabled Veteran-Owned Small Business (SDVOSB), and 

HubZone Small Business. DB assigned small business goals to each PLFA and performance 

was reported in weekly updates to the Director and in the quarterly Executive Board meetings.

DB is responsible for submission of the annual Small Business Procurement Scorecard to the 

Director. This document is requested by the Small Business Administration via OSD at the end 

of each FY. The Scorecard describes DLA’s enterprise-wide small business achievements. 

b. Develop a Small Business Marketing and Improvement Plan

 

In FY14, The Small Business Marketing and Improvement Plan was a joint effort between the 

Office of Small Business Programs (DB) and DLA Acquisition (J7) to improve awareness by all 

associates of the small business goals established by the Office of the Secretary of Defense 

(OSD) for FY 2014. The Plan contained enterprise-level initiatives and concrete implementing 

strategies that addressed how DLA would increase small business participation to achieve annual 

small business and socio-economic program goals. The Plan stressed the importance of 

achieving goals by awarding contracts to small businesses, using set-asides as often as possible 

and changing attitudes regarding use of small business to satisfy requirements. The Plan was 

developed with the help of the PLFAs to ensure compliance across the enterprise. Progress and 

performance were monitored and reported on quarterly. The creation of this Plan was a success 

in FY 2014 and DLA exceed its OSD assigned small business goals.

*Marketing and Improvement Plan will be attached to response

c. Develop and Implement an Internal DLA Small Business Awareness Marketing 

Campaign

DB is working to improve this element in FY15. In FY14, DB created a Small Business Intranet 

website that provides useful small business information for acquisition professionals, program 
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office personnel, and PLFA small business personnel: 

https://hqc.dla.mil/smallbusiness/Pages/default.aspx. In FY15, we plan to do a better job of 

creating marketing material to be posted throughout the Enterprise, stressing the importance of 

achieving SB goals, awarding contracts to small businesses, utilizing set-asides as often as 

possible. We hope it will be successful in improving attitudes regarding the use of small 

business to satisfy requirements.

d. The Business Alliance Awards (BAA) 

Planned and executed by DB, the Business Alliance Awards (BAA) formally recognizes our 

outstanding industry partners and customers. Awards are presented to those vendors that 

demonstrate excellence in superior product quality, on-time delivery, exemplary customer

service, reliability, dependability, consistency, and accuracy. Planning the BAAs is a large task. 

Actions include; request for nominations, evaluation of submissions, award recommendations, 

notification to awardees and their Congressional representatives, planning the awards ceremony, 

and facilitating the award presentations by the DLA Director. The BAA Program is designed to 

also recognize our customer communities, DLA acquisition personnel, and SB professionals. For 

the FY14 BAAs, the Director personally acknowledged the dedication of DLA SB personnel as 

well as acquisition and program office personnel who supported small business utilization and 

helped DLA surpass its FY14 OSDB assigned goal of 32%. 

e. Commitment to Small Business Utilization and Goal Achievement

The Defense Logistics Agency (DLA) is committed to doing business with U.S. owned small 

businesses. DLA recognizes the necessity of small businesses remaining viable, valuable 

resources in our industrial base. Through the dedicated activities of our Primary Level Field 

Activity (PLFA) Offices of Small Business Programs, DLA continually works towards 

increasing small business participation in DLA procurements. DB monitors enterprise-wide 

small business goal achievement. 

DLA’s internal SB Standard Operating Procedures require each DLA PLFA to develop an 

annual SB strategy. The PLFAs develop new or updated strategy each FY addressing principal 

initiatives for utilizing SBs and meeting SB goals when obtaining DLA goods and services. 

In FY14, the DLA Executive Board (DLA’s senior leaders) addressed SB goals, targets, strategy, 

statistics, and achievements at quarterly meetings. The DLA Director of the Office of Small 

Business Programs (OSBP) provided guidance and clarification to the Executive Board on all SB 

issues. PLFA “echelon reviews” and Agency bi-weekly SB Friday meetings also provided 

opportunities for senior level discussion of SB strategy.

Standard DLA SB procedures in FY14 included: 

 Daily and weekly tracking and monitoring of SB achievements 

 Briefing PLFA and HQ senior leadership at least monthly on progress against goals 

 Posting sources sought notices on FedBizOpps (FBO) to identify small business and 

socio-economic categories for possible set asides
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 Reviewing all DD2579’s above $10 K for small business set aside opportunities

 Regularly attending SB outreach conferences and events

 Closely coordinating with the SBA Procurement Center Representatives (PCRs) to 

ensure SB set-asides 

 Aggressively seeking and developing new initiatives such as small business long-term 

contractual vehicles that enhance real growth opportunities for SBs

 Conducting outreach with an emphasis on Veteran-Owned and Service-Disabled 

Veteran-Owned Small Businesses

Achievement of the Agency’s small business goals is dependent upon the awarding of 

contracts to small businesses. Although procurement regulations stipulate preference for 

awards to small businesses, practical experience confirms the reality that not all requirements 

can be satisfied by small business. Participation on Acquisition Strategy Review Panels 

(ASRP) and Integrated Acquisition Review Boards (IARB) ensures that small business and 

socio-economic concerns are considered during the acquisition strategy and planning stages 

of a procurement. 

In FY14, DB participated in the following:

ASRP's:

 Small Format Color copier/Printer Acquisition 

 Chemical and Packaged Oil 

 Boeing 

 MRE Cold Storage

IARB's:

 Somerville

 Hammond

 Lithium Cobalt Oxide

 Sikorsky

* DLA FY14 Small Business goal achievement (preliminary) chart will be attached to 

response.

f. Outreach to the Small Business Community

DLA maintains an aggressive outreach program providing vital information and assistance to the 

small business community. DLA small business specialists regularly provide one-on-one 

counseling and marketing assistance to firms interested in doing business with DLA and provide 

small firms with information on upcoming DLA opportunities. They facilitate small business 

capabilities presentations for program offices. The OSBPs support external and host internal 

small business outreach events. They regularly update and maintain small business websites and 

outreach materials. They support Agency Industry Days and pre-proposal and pre-solicitation 

supplier conferences. They also brief government officials on small business issues. 
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In FY14, DLA OSBPs supported many local outreach events and traveled to specific VOSB 

national events. Small business specialists attended congressionally sponsored conferences, 

DOD sponsored events, U.S. Small Business Administration conferences, and conferences 

sponsored by Governors, PTACs, trade associations, and Chambers of Commerce. The OSBPs 

supported many external outreach events but also organized DLA events for the small business 

community such as Industry Days and pre-proposal and pre-solicitation supplier conferences 

specific to complex or high-dollar acquisitions.

In FY14, the DLA HQ Small Business Office (DB) participated in 38 small business outreach 

events and 11 speaking engagements.

DLA OSBPs maintain small business websites providing a wealth of educational information 

helpful to small businesses. For example, DB provides both a detailed “Overview for Vendors” 

guide and a condensed “Doing Business with DLA” brochure on its HQ website 

(http://www.dla.mil/SmallBusiness/Documents/Update%20Overview%20for%20Vendors%20-

%20April%20-14.pdf). The DB website provides links to each of the PLFA websites, a list of 

DOD large prime contractors with contact information, information about the DLA Internet Bid 

Board System (DIBBS), upcoming small business outreach events, and much more. 

DLA FY14 Small Business Outreach Calendar will be attached to response.

g. The Procurement Technical Assistance Program (PTAP)

The Procurement Technical Assistance Program (PTAP) was established by section 1241 of the 

DoD Authorization Act for Fiscal Year 1985 (Public Law 98– 525) in an effort to expand the 

number of businesses capable of participating in government contracts. The statute assigns 

administration of the program to DLA and authorizes cooperative agreements with states, local 

governments, nonprofit organizations and other eligible program participants to carry out the 

program. Within DLA, the Office of Small Business Programs (DB) is responsible for 

implementation and execution of the PTAP.

A cooperative agreement is a variation of grant and is distinct from a contract in that the 

principal purpose of grants and cooperative agreements is to carry out a public purpose rather 

than to acquire property or services for the benefit or use of the Government. Under the PTAP, 

cooperative agreement recipients establish Procurement Technical Assistance Centers (PTACs) 

that assist businesses in pursuing and performing under contracts with DoD, other federal 

agencies, and state and local governments. 

h. DB Management of the PTAP for Fiscal Year 2014

Funding for the PTAP, and for DLA’s administration of the program, is provided by an annual 

Operations and Maintenance appropriation. For FY14, the amount Congress appropriated for the 

PTAP was $36.262M, which was more than any prior year. FY2014 was also significant for 
DLA Small Business Programs (DB)

325

PTAP because the National Defense Authorization Act (NDAA) for Fiscal Year 2014 (Public 

Law 113-66) made statutory changes to the program. 

A law in Chapter 142 of Title 10, United States Code, authorizes the PTAP and assigns 

administration to DLA. Among other things, the statute includes requirements for cooperative 

agreement recipients to share the cost of the program and sets limits on the amount of funding 

that DLA is authorized to provide annually. NDAA Section 1611 authorized the PTACs to 

provide assistance to “covered small businesses” and provides that this special type of assistance 

is not subject to any cost sharing requirement or funding limitation. NDAA Section 1612 

increased annual, federal funding limitations from $600,000 (statewide PTACs) and $300,000 

(regional PTACs) to $750,000 and $450,000, respectively. It also increases the authorized 

federal cost share for most PTACs from 50% (i.e., a 1:1 ratio) to 65% (i.e., an almost 2:1 ratio). 

The federal cost share for PTACs serving “distressed areas” remained unchanged at 75% (i.e., 

3:1). These amendments had the potential to substantially increase the amount of funding 

required for the PTAP.

For FY14 DB entered into 98 cooperative agreements for PTAP coverage in Washington, D.C., 

Puerto Rico, Guam, and, for the first time in many years, all 50 states. Among the 98 PTACs, 

new or substantially restructured agreements for coverage were created in Indiana, California, 

Colorado and Kentucky. An agreement with the Minnesota American Indian Chamber of 

Commerce for assistance to Midwest and East Coast reservations was put in place.

Notwithstanding the increased authorizations provided by the NDAA, the FY14 appropriation 

funded the PTAP at approximately the same level as in FY13 when the authorizations were 

lower. Since DB did not have sufficient funding to pay the maximum authorized amount for all 

PTACs, initial cooperative agreements for FY14 were executed subject to the former, lower 

levels. The new flexibility provided by the NDAA, (along with some additional funds DLA 

made available in the fourth quarter) allowed us to modify forty-seven cooperative agreements 

and expand the program. In total, we obligated $36.5M for the PTAC’s use in FY2014. As a 

cost sharing program, $27M in non-federal funding was also committed.

The terms and conditions of cooperative agreements under the PTAP prescribe recipients’ 

responsibilities for monitoring performance and reporting to DLA. One of our major 

undertakings in FY14 was our reassessment of these requirements to improve our ability to 

measure performance and quantify program results. As part of this work, we used a pilot 

program to evaluate the changes under consideration and to understand the implications of 

changes from the recipients’ perspective. Beginning in October 2013, a select group of PTACs 

voluntarily made changes to their processes to accommodate revised performance reporting 

requirements. Participating PTACs collected and reported information in compliance with the 

new requirements throughout the year. The feedback we received from participants in this 

program will be instrumental in our ability to further improve the new report for long-term, 

program-wide use.
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DLA General Counsel (DG)

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Defense Logistics Agency

DLA General Counsel (DG) 

Fiscal Year 2014 Annual Historical Report

1. Introduction

The DLA General Counsel (DG) Historical Record (HR) outlines the actions the DG took over 

the course of Fiscal Year 2014 (FY14) to improve and sustain the effectiveness and

efficiencies service to our customers, civilian and military, internal and external to DLA. It

also provides the key operating goals, initiatives, metrics, and tools used to regularly monitor

our performance to ensure DLA’s legal workforce can meet present and future requirements.

The DG FY14 HR is based on the DLA DG Brief from November 2014 as well as the DLA 

Office of General Counsel (DG) General Order No. 33-09, effective January 15, 2010. The 

DLA DG office does not complete an Annual Operating Plan (AOP), so does not have a results 

section that reflects a yearlong plan.

2. Organization Overview

a. Contribution to the Agency’s Mission

The Office of the DLA General Counsel is the exclusive provider of legal advice, counsel, 

and representation for the DLA enterprise. The Headquarters Office of the General Counsel 

(DG) advises the DLA Director, the Vice Director, J1, J3, J5, J6, J7, J8, J9, DLA Installation 

Support, and the Special Staff on the full range of matters involving or affecting the Agency. 

DLA’s effectiveness as a Combat Support Agency is tied to how well it awards and 

administers contracts with the private sector for the products, support services, transportation, 

storage, hazardous waste disposal, and sale of surplus property and supporting information 

technology infrastructure that are at the core of DLA's mission. That mission is to provide a 

joint logistics capability that optimizes warfighter support, and best value integrated logistics 

solutions for America’s Armed Forces and other designated customers, in peace and war. 

DG provides legal advice, counsel, and representation that primarily relate to these contractual 

transactions and relationships and to the personnel and other resources required to put contracts 

in place and enforce them. The legal issues that arise often involve millions of dollars with the 

private sector parties represented by highly skilled attorneys. The issues and conflicts are 

frequently the subject of intense media, Congressional, and public interest. Expedient and 
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effective resolution of legal issues and challenges has a significant, favorable impact on the 

Agency’s achievement of strategic goals and on military readiness. 

DG provides legal advice, counsel, and representation in support of the civilian personnel 

management function of DLA to include personnel grievances, Equal Employment 

Opportunity (EEO) complaints, and labor relations matters. Additionally, DG advises on 

Uniform Code of Military Justice (UCMJ) matters for military personnel in coordination with 

the Services. 

DG is the proponent of five programs within DLA: the Standards of Conduct Program, the 

Alternative Disputes Resolution Program, the Litigation Program, the Legislation Program, and 

the Fraud Program, including Suspension and Debarment responsibilities. 

DG also manages the delivery of legal services at the field legal operations.

3. Organization Charts

The above chart provides an overview of the General Counsel throughout the agency, and the 

number of individuals at each site and in each of the agency’s Primary Level Field Activities 
DLA General Counsel (DG)

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The General Counsel Office within the headquarters was made up of the above sections and 

leaders. 

4. Resources. DG’s budget in FY 14 was $7.5 million (labor/non-labor). Please note that this 

figure represents the budget for the Headquarters office only. 

a. Personnel – As of September 2014

(1) People Currently On-Board/Authorized for FY14

Civilians 182 / 182

Active Duty Military 3 / 4

Active Reservists 4 / 4

b. Authorized Civilian Full-Time-Equivalents (FTEs): The General Counsel has 182 

FTEs authorized.
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(2) People Currently On-Board/Authorized for FY15

Civilians 182 / 182

Active Duty Military 3 / 4

Active Reservists 4 / 4

c. Travel: The General Counsel scrutinizes all travel for trip location and purpose, approves

only travel that supports the mission, and ensures that travel costs are minimized to include using videoteleconferencing facilities and reducing the number of personnel traveling per trip.

d. Standard Metrics for Tracking FTEs, Training, and Travel are as follows:

 Green – variances less than or equal to 2% from target;

 Yellow – variances greater than 2% but less than or equal to 5% from target;

 Red – variances greater than 5% from target

DG (Headquarters) spent $92,326 on travel in FY 14.

5. DLA General Counsel Functions

 Participate in planning and implementation of DLA objectives, programs, policies, and 

procedures ensuring compliance with laws and regulations. Offer alternative strategies 

for accomplishment of goals when legal impediments are encountered. Anticipate and 

resolve potential legal issues at the earliest stage of program development or execution. 

Participate as legal advisor at executive level meetings and conferences.

 Assist in formulation of acquisition policy and procedures. Analyze DLA mission impact 

of new acquisition statutes, regulations, and policies. Serve as DLA Legal Member of 

the Defense Acquisition Regulation Council.

 Assist in the preparation and review of solicitation and contract documents in connection 

with major acquisitions. Serve on source selection panels. Participate in the negotiation 

of contracts.

 Provide authoritative legal opinions, oral and written, on a broad range of complex issues 

and problems requiring knowledge and experience in diverse legal practice areas, both 

acquisition and non-acquisition related. Maintain proficiency in the numerous areas of 

practice required to provide DLA clients exemplary legal support. Areas of 

specialization include:

a. Acquisition

b. Contracts

c. Criminal Law

d. Equal Employment Opportunity (EEO)

e. Environment

f. Ethics, Personnel, and Labor Relations

g. Fiscal Law 
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h. Information Technology

i. Installations

j. Intellectual Property

k. International Agreements

l. Military Justice

m. Military Operations

n. Property Disposal

o. Release of Information

p. Standards of Conduct

 Assist in resolution of claims and disputes. Minimize potential program impact, 

operational delays, and adverse Department of Defense (DoD), media, or other attention. 

Engage in creative and effective interest-based negotiation and alternative dispute 

resolution, eliminating avoidable litigation expense and delay.

 Represent or arrange representation in administrative and court proceedings. Gather 

evidence, obtain witnesses, develop legal positions and arguments, and prepare pleadings, 

motions, and other filings. Provide litigation reports and other support to the U.S. 

Department of Justice. Forum in which representation is provided include:

a. Armed Services Board of Contract Appeals

b. Equal Employment Opportunity Commission

c. Federal Courts

d. Government Accountability Office 

e. Federal Labor Relations Authority

f. Merit Systems Protection Board

g. Environmental Appeals Boards

 Exercise DLA suspension and debarment authority, determining whether to exclude 

particular contractors from eligibility to receive government contracts.

 Manage Legal Programs:

a. Alternative Dispute Resolution Program. Promote and engage in faster and 

more cost effective alternatives to administrative and judicial litigation to resolve 

disputes and claims. Maintain a cadre of attorneys who are trained as neutral 

third parties to help resolve procurement, contract, employment, labor relations, 

environment, and other disputes.

b. Standards of Conduct and Employee Ethics Program. Serve as Designated 

Agency Ethics Official. Implements ethics program requirements specified in 

federal statutes and regulations and in Office of Government Ethics and DoD 

program directives. Provide mandatory ethics training for employees. Determine 

employees required to file financial disclosure statements and collect and review 

financial disclosure statements for legal sufficiency and potential conflicts of 
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interests. Advise on employee disqualification statements, divestitures, and postemployment restrictions. Make annual ethics program compliance reports to the 

Office of the Secretary of Defense and Office of Government Ethics.

c. Fraud Remedies Program. Examine allegations or indications of contract 

fraud, violations of antitrust laws, or other improper conduct by contractors and 

offerors. Refer matters that merit investigation to the appropriate investigative 

agency. Monitor and report on DLA-wide efforts to prevent, detect, deter, and 

remedy procurement fraud and related irregularities. Coordinate administrative, 

civil, and criminal remedies.

d. Litigation Program. Provide Headquarters oversight over all types of DLA 

litigation, whether in the federal courts or the administrative forums that handle 

contract disputes, bid protests, and personnel disputes. Actively engage to ensure 

that the interests of the Agency are fully and adequately represented. 

 

e. Legislation Program. Provide comments to the Office of the Secretary of 

Defense Office of Legislative Counsel on legislative proposals advanced by 

DOD, its components, and other Federal departments and agencies. Drafting, 

proposing, and advocating legislative changes that enhance DLA mission 

accomplishment. Drafting congressional testimony for DLA officials. Analyze 

the legal impact of proposed and new legislation.

f. Exercise professional management and control over field legal organizations. 

Monitor timeliness, effectiveness, and efficiency of services provided, ensuring 

competent legal support is available throughout DLA. For legal opinions, 

monitor consistency, quality, and conformity with the law and DLA policy. 

Recruit, select, promote, and discipline attorneys. Set appropriate performance 

standards. Provide attorney training.

g. Provide legal support for contingency operations. Foster and train an 

appropriate number of Agency attorneys specializing in disaster-preparedness and 

overseas contingency operations law. Specialists may be called upon to provide 

around-the-clock legal advice and assistance related to planned and unplanned 

DLA domestic and overseas logistics support operations.

h. Provide legal advice and representation with respect to such matters as local 

law, customs, international agreements, and federal employee and contractor 

rights in areas where humanitarian or military operations are taking place. 

6. FOIA/Privacy Act Division Functions

a. Mission: Develop policy, provide program oversight, and serve as the DLA focal point 

for DLA Privacy/FOIA matters. DLA-DGA is responsible for the following functions.

 Provide day-to-day policy guidance and assistance to HQ DLA and DLA Field 
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Activities in their implementation and execution of the DLA Privacy/FOIA Programs.

 Promote public trust by making information available to the public upon request, 

unless specifically exempted or excluded from disclosure by law. 

 Assess and provide guidance on proposed and existing DLA policies, procedures, or 

regulations which potentially affect the personal privacy of individuals or their access 

rights to DLA records. 

 Review, coordinate, and submit for publication in the Federal Register Privacy Act 

systems of records and Privacy Act/FOIA rulemakings. 

 Provide statutorily and regulatory required reports. 

 Provide privacy knowledge and support for the DLA Information Assurance 

Certification and Accreditation process to ensure Privacy Act compliance in DLA 

Information Systems. 

 Review, evaluate, and develop policy for new technologies with the potential to affect 

personal privacy prior to its introduction at DLA. 

 Make DLA records available to the public through a reading room.

 Provide customer oriented FOIA service centers. 

 Represent the DLA on the Defense Privacy Board, and serve as the FOIA Liaison 

Officer, established by Executive Order 13392, to the Defense Freedom of 

Information Program Office. 

7. DLA General Counsel Mission Highlights

a. Acquisitions Significant Actions

 Supported urgent procurements for Operation United Assistance (OUA). DLA has 

been working closely with U.S. Africa Command and was among the first group to 

arrive in Africa to identify sources of supply and establish logistics operations. With 

this added mission, came new and complex legal challenges. We quickly stood up a 

team of attorneys from each of the PLFA to work these issues and regularly coordinate 

on legal support provided to OUA. Legal support varied from acquisition support, 

disposal, and personnel issues associated with deploying and redeploying employees 

into and out of Ebola Outbreak Areas. Provided legal counsel on multiple 

procurements for military service support, including fuel, parts, medical, subsistence, 

uniforms, and other supplies.
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 Long term contracts with major OEMs such as Boeing, GE, and Honeywell valued at 

over $18 billion.



 Multiple contracts for the Pharmaceutical Prime Vendor program, valued at over $26 

billion.

8. Procurement Integrity: DLA & Service Suspension and Debarment 

Statistics:

a. Inter-Agency Suspension and Debarment Committee and DoD Procurement Fraud 

Working Group membership

 Excellent Cooperation among Federal Agency and Military Department Suspension 

and Debarment Officials

 Agency law enforcement support provided by DoD IG – Defense Criminal 

Investigative Service

9. DLA Litigation Program

a. Description: DLA field counsel serves as lead counsel in most cases with HQ 

oversight. Snapshot of Caseload
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Defense Logistics Agency

DLA Inspector General (IG) 

Fiscal Year 2014 Annual Historical Report

1. Mission, Vision, and Values

a. Mission: DLA is America’s Combat Logistics Support Agency. We provide effective 

and efficient worldwide support to Warfighters and our other customers.

b. Vision: Warfighter-focused, globally responsive, fiscally responsible supply chain 

leadership.

c. Values: Our values are DLA’s foundation for all we do. They provide our guiding 

principles as we accomplish our mission, pursue our vision, and strive to do what is right for the 

Armed Forces and DoD: 

 Warfighter need guides us

 Integrity defines us

 Diversity strengthens us

 Excellence inspires us

The DLA Office of the Inspector General’s (OIG) role in DLA’s mission is to assist management 

in making informed decisions to use resources effectively and efficiently, by:

 Providing impartial and unbiased findings and recommendations

 Facilitating a crime-free work environment for DLA employees and contractors,

 Identifying and mitigating crime conducive conditions and risk

DLA’s auditors focus on high risk areas and investigators conduct more than criminal 

investigations in support of the DLA Director’s priorities to decrease direct material costs, 

decrease operating costs, reduce inventory, improve customer service, and achieve audit 

readiness. Auditors and investigators routinely work together as a team using their 

complimentary skill sets to find facts and develop recommended solutions to complex issues for 

management. 
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2. Organizational Structure, People, Budget, and Customers

a. Organizational Structure:

b. People:

 In FY14, we had a change of Inspector General (IG). COL Allen W. Kiefer who was our IG 

retired and we welcomed Mr. Marshall W. Evers as our new IG. With a new IG at the helm we 

have been looking internally to see what changes can be made to better support the DLA Director 

and our customers.

 FTE Authorized/Actual 94/76

 Military Authorized/Actual 1/1

 18 vacancies include 4 investigators and 14 auditors. 

 OIG personnel are located at each of the PLFA sites and include Headquarters, 

Richmond, Philadelphia, New Cumberland, Columbus, Battle Creek and 

Kaiserslautern, FRG. Additional Special Agents are located in Hawaii, Tracy, 

Corona, Jacksonville, Texarkana, Denver, Dallas, Seattle, and Oklahoma City.

 100% of FTEs telework on a recurring basis. 
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c. Customers:

 Warfighters and the Armed Services

 The American People (Taxpayers)

 The Director/Vice Director

 PLFA Commanders

 The J-Code and D-Staff Principals

3. Functional Areas and Services Provided

a. Audit Division 

The DLA OIG Audit Division (AD) is the command assurance activity that performs 

independent internal audits, attestations, and advisory services in accordance with Generally 

Accepted Government Auditing Standards (GAGAS) and Department of Defense Inspector

General (DOD IG) requirements to assist DLA leadership in improving efficiency, 

accountability, and program effectiveness, for both DLA and its customers. 

The audits performed by DLA OIG AD fall under the category of performance audits as 

described below. OIG AD does not perform financial statement audits which provide 

reasonable assurance through an opinion (or disclaim an opinion) about whether an entity's 

financial statements are presented fairly in all material respects in conformity with generally

accepted accounting principles (GAAP). The authority for the conduct of financial statement 

audits is reserved by DODIG. DLA OIG can engage in audits of financial processes or for 

specified elements, accounts, or items in support of a financial statement. These financial audits 

(vice financial statement audits) report on internal control, compliance with laws and regulations, 

and provisions of contracts and grant agreements as they relate to financial transactions, systems, 

and processes.

Operational Audits - Operational audits are defined as performance engagements that provide 

assurance or conclusions based on an evaluation of sufficient, appropriate evidence against stated 

criteria, such as specific requirements, measures, or defined business practices. Operational 

audits provide objective analysis so that management and those charged with governance and 

oversight can use the information to improve program performance and operations, reduce costs, 

facilitate decision making by parties with responsibility to oversee or initiate corrective action, 

and contribute to public accountability. Operational audits include DLA worldwide logistics and 

acquisition operations, to include but not limited to distribution, disposition, supply chain 

management, and overall DLA enterprise support. 

Quality Assurance - Quality Assurance conducts ongoing or periodic assessments of work 

completed on audits and attestation engagements to provide DLA OIG reasonable assurance that 

the audit organization and its personnel comply with professional standards. The purpose of 

monitoring compliance with quality control policies and procedures is to provide an evaluation 

of (1) adherence to professional standards and regulatory requirements, (2) whether the quality 
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control system has been appropriately designed, and (3) whether quality control policies and 

procedures are operating effectively and complied with in practice. 

External Audit Liaison - External Audit Liaison provides coordination and oversight of all 

external audits performed at DLA by external audit and inspection agencies. This includes the 

introduction of external audit teams to senior management to ensure appropriate resources are 

provided to the team, coordination of requirements and requests, reporting, tracking and closure 

of all findings and recommendations.

COR/IPA Oversight - DLA OIGs primary responsibility is to provide oversight of Independent 

Public Accountant (IPA) firms during their performance of audit or attestation work related to 

the American Institute of Certified Public Accountants (AICPA) Statement on Standards for 

Attestation Engagements Number 16 (SSAE 16) and the examinations of the audit readiness 

management assertions in accordance to the OUSD (C) Financial Improvement and Audit 

Readiness (FIAR) guidance. DLA OIG auditors will monitor IPA attestation work as 

Contracting Officer Representatives (CORs), working closely with the Contracting Officer to 

ensure that DLA receives high quality examination reports and compliance with Generally 

Accepted Government Auditing Standards (GAGAS). The DLA OIG COR oversight is 

performed in accordance with U.S. Government Accountability Office, the President’s Council 

on Integrity and Efficiency Financial Audit Manual, Volume 2, Section 650, and the Council of 

the Inspector General on Integrity and Efficiency (CIGIE) Appendix F.

Audit Follow-Up – The audit follow-up process provides DLA Senior Leadership with a 

reasonable assurance that corrective actions from previously reported findings and 

recommendations are being implemented and that identified deficiencies have been corrected in 

a timely manner. It is a shared responsibility between DLA OIG auditors and DLA management 

on tracking recommendations and monitoring the implementation of corrective actions to reduce 

DLA’s risk of mission failure, increased costs, and vulnerabilities to fraud, waste, abuse and 

mismanagement of government resources. 

b. Investigations Division 

The Investigations Division (ID) performs investigations of matters of interest to the DLA 

Director, DLA Senior Leadership, and DLA Office of the General Counsel. In addition, 

Investigations Division assists Defense Criminal Investigative Organizations (DCIO) such as the 

Defense Criminal Investigative Service (DCIS), Naval Criminal Investigative Service (NCIS), 

Air Force Office of Special Investigations (AFOSI), United States Army Criminal Investigations 

Division Command (USACIDC) and other federal, state and local law enforcement agencies in 

their investigations where DLA is a party of interest. DLA OIG ID conducts investigations 

where DLA has an interest and when DCIOs or other investigative agencies decline to do so. 

Our criminal investigators are regionally organized (Eastern, Central, and Western) in order to 

effectively cover the globe.

Investigations – The Investigations Division provides the full range of investigative services and 

support throughout the Enterprise. Special Agents and Investigators assigned to ID receive 

complaints of crime and misconduct directly from victims, the DLA Enterprise Hotline program, 
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339

Commanders and Directors of PLFA, J and D Staff, and from outside agencies such as DCIS and 

the DODIG. Investigations are initiated, investigative plans are submitted and approved, and 

coordination is maintained with General Counsel and Human Resources throughout the life of 

the investigation. If credible information to believe a felony crime has been committed is 

developed, the appropriate Defense Criminal Investigative Organization, Federal Law 

Enforcement Agency, or State or Local Law Enforcement Agency is notified and the complaint 

is offered to them as a matter pertaining to their primary area of jurisdiction. If they decline, we 

continue the investigation and report the results. OIG ID’s mission is to seek diligently to 

discover the truth, deterred neither by fear nor prejudice; identifying crime conducive conditions 

that increase supply chain vulnerability interfere with supporting the warfighter and 

recommending solutions reduce or eliminate the vulnerabilities; in identifying and eliminating 

fraud, waste, and abuse; and in assisting in the protection of DLA installations, activities, 

personnel, supplies, and equipment. 

Hotline - The DLA Enterprise Hotline Program is intended to provide DLA personnel with an 

alternative communication to other processes in reporting suspected fraud, waste, abuse or 

mismanagement without fear of reprisal. DLA Hotlines are received through a web portal, 

email, phone or fax. The Hotline Program is intended to provide leadership with the clear 

coordination lines necessary for proper receipt and evaluation of allegations and that appropriate 

actions are taken as a result of any inquiries regarding those allegations. The DLA Hotline 

Program Manager acts as the liaison with the Defense Hotline Program.

Trade Security Control - Our Trade Security Control (TSC) Office prevents illegal acquisition 

or other unauthorized transfers of defense and dual-use technology goods, services and 

munitions by or to individuals, entities and / or countries whose interests are adverse to the 

United States. TSC helps prevent those technologies, goods, services and munitions from being 

exported directly or indirectly into unauthorized areas designated by the Secretary of State, the 

Secretary of Commerce, or the Director of Foreign Assets Control. ID Special Agents conduct 

investigations and ensure the enforcement of TSC, which identify and prevent the illegal transfer 

of Munitions List and Commerce Control List items for countries unfriendly to the United States. 

These activities include performing clearance checks on bidders prior to delivery of property and 

performing Post-Sale Investigations (PSI) and monitoring of property after delivery. ID 

conducts related criminal investigations pertaining to the worldwide sales of surplus property by 

DLA Disposition Services.

Compliance - The Investigations Compliance Officer serves as an advisor to the IG and Deputy 

IG for Investigations on matters pertaining to day-to-day operations within the Investigations 

Division, DLA OIG. The Compliance Officer is responsible for conducting independent quality 

assurance evaluations, reviews, and oversight activity of ID operations.

Crime Vulnerability Assessments (CVA) – CVAs are proactive examinations of activities, 

systems, environments, or processes toward identifying vulnerabilities to criminal activities 

before a crime or additional crimes.

Freedom of Information Act (FOIA) – DLA OIG is required to maintain and process all 

requests for records that by statute and regulation include all recorded information, regardless of 
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medium or format, made or received by DLA OIG under Federal law in connection with the 

transaction of public business, and is either preserved or appropriate for preservation because of 

their administrative, legal, fiscal, or informational value. DLA OIG ID maintains the central 

records repository for reports of general and criminal incidents investigated by DLA OIG. This 

repository is the source of documentation processed through the FOIA.

4. Summary of Accomplishments

a. Audit Division 

During FY14 the DLA OIG, Audit Division, issued 11 significant audit reports as well as one 

rescission letter for a previous audit report. The 11 audit reports and one rescission letter issued 

this year are:

• Law Enforcement Support Office (LESO) Program Oversight, issued November 21, 

2013

• Implementation of Prior Contract Oversight Audit Recommendations, December 2, 2013

• Maintenance, Repair, Operations Program, issued December 4, 2013

• Sustainment, Restoration, and Modernization Program – Europe, issued December 5, 

2013.

• Supply Discrepancy Reports - Vendor Follow-Up and Resolution, issued February 7, 

2014

• Government Purchase Card Follow-Up, March 5, 2014

• Rescission Letter for Real Property Additions, Disposals, and Construction-in-Progress, 

issued March 24, 2014

• DLA Information Operations Management Assertion for the Defense Automatic 

Addressing System (DAAS), issued April 15, 2014

• Follow-Up Nuclear Weapons Related Material and Small Arms, issued April 17, 2014

• Common Access Cards (CACs) Issued to Contractors at DLA HQ, issued April 28, 2014

• DLA Disposition Service Receipt of Generator Certifications, issued May 21, 2014

• Retrieval and Deactivation of Civilian Common Access Cards (CACs) at DLA HQ, 

issued September 30, 2014
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Crosswalk of Audit Reports to DLA 2014 Focus Areas

Decrease 

Direct 

Material 

Costs

Decrease 

Operating 

Costs

Improve 

Customer 

Service

Support 

Achieve 

Audit 

Readiness

Improve 

Workforce

LESO Program Oversight X X

Implementation of Prior Contract 

Oversight Audit Recommendations X X

Maintenance, Repair, Operations 

Program X X

Sustainment, Restoration, and 

Modernization Program X X

Supply Discrepancy Reports X X

Government Purchase Card X

Recission Letter for Real Property X

Management Assertion for DAAS X

NWRM and Small Arms X X

CACs Issued to Contractors X X

Generator Certifications X X

Retrieval and Deactivation of CACs X X

Decrease Direct Material Costs

Supply Discrepancy Reports

The primary objective of this audit was to determine if DLA had an effective process in place to 

follow-up and resolve suspension of new material reported in Z9 supply discrepancy reports 

(SDR). Specifically, the audit sought to determine if policies and procedures were in place to 

ensure that DLA received appropriate credit, refund, or replacement shipments for material 

suspended from issue and prevented the suspension of new material on future deliverables.

We determined that the process in place to follow-up and resolve the suspension of new material 

was not effective. This occurred because DLA policies for processing Z9 SDRs are stove-piped 

by functional specialty, thereby making it difficult for the functional specialists to understand 

each other’s responsibilities in the Z9 SDR process. We also found that the functional specialists 

responsible for processing Z9 SDRs at the supply centers were not following the job aids in 

place. Although the job aids require modifications to clarify the specific responsibilities of each 

functional specialty, many of the issues found during our audit could have been avoided had the 

guidance been properly followed. As a result, there is no assurance that DLA received 

appropriate credit, refunds, and replacement shipments or prevented the recurrence of suspension 

on new material.
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We also determined that DLA Distribution depots did not consistently follow the disposition 

instructions provided by the supply centers when returning discrepant material to vendors. This 

occurred because the information provided to transportation personnel was limited by 

Distribution Standard System (DSS). Specifically, transportation personnel did not receive the 

disposition instructions provided by the supply centers. As a result DLA paid shipping costs to 

return discrepant material that should have been returned at vendor expense.

NWRM and Small Arms

The objectives of this audit were to determine whether corrective actions: (1) related to previous 

audit findings identified within Nuclear Weapons Related Material (NWRM) and small arms 

receiving, shipping, and physical security have been implemented; and (2) taken have adequately 

addressed the risks associated with receiving, shipping, and physical security of NWRM and 

small arms. We reviewed three NWRM and two small arms reports and followed up on the 

recommendations related to receiving, shipping, or physical security.

We concluded that DLA Distribution took corrective actions related to the 13 NWRM and the 34 

small arms recommendations related to receiving, shipping, and physical security have been 

implemented. Because the corrective actions adequately addressed the risks associated with 

receiving, shipping, and physical security of NWRM and small arms, we have closed all 13 

NWRM recommendations and 34 small arms recommendations.

Decrease Operating Costs

LESO Program Oversight

The objective of our audit was to determine whether the Law Enforcement Support Office 

(LESO) program effectively ensures state compliance with the terms of the Memorandum of 

Agreement (MOA).

We determined LESO was generally effective in ensuring state compliance with the terms of the 

MOA. LESO tested for state compliance with the terms of the MOA by conducting annual 

inventory certifications and Program Compliance Reviews (PCRs). However, LESO did not 

consider all state MOA requirements when determining PCR compliance ratings and suspending 

states. This occurred because LESO only considered specific state MOA requirements or key 

controls to assign state PCR compliance ratings rather than considering all of the MOA 

requirements. As a result, LESO provided Minnesota with a compliant PCR assessment when 

the state did not meet the MOA requirement to obtain LESO approval before transferring 

weapons.

Implementation of Prior Contract Oversight Audit Recommendations

Our audit objectives were to determine whether the DLA Distribution and DLA Land and 

Maritime: (1) implemented recommended corrective actions related to the prior audit of DLA 

Distribution Contract Oversight (DAO 09-20, dated October 21, 2010), and (2) corrective actions 

taken adequately address the risks associated with contract award and oversight of depot 

operations. This audit report included 11 recommendations that addressed needed improvements 

in pre-award, continuing government activity, acceptable performance levels, and contract 

administration.
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DLA Distribution and DLA Land and Maritime acquisition operations personnel implemented or 

satisfactorily resolved 9 of the 11 recommendations previously reported. During the current 

audit, we verified the status of the previously reported nine recommendations to ensure they 

were implemented or satisfactorily resolved and closed. However, DLA Distribution did not 

fully correct or implement previously reported conditions for two recommendations. 

Specifically, DLA Distribution Contract Quality Assurance Program Office personnel did not 

always ensure the Quality Management System Integration Tool properly reflected changes to 

the current performance work statement for depot contracts or ensure the contract quality 

handbook was updated with changes to policy. These conditions occurred because the Contract 

Quality Assurance Program Office personnel did not effectively implement controls to address 

previously reported weaknesses. If a policy and procedure does not accurately set forth a process, 

then employees may perform the process incorrectly or fail to perform required procedures. 

Oversight and surveillance is an ongoing process to ensure that DLA Distribution contractors are 

providing supplies or services on time and in conformance with quality, timeliness and 

contractual requirements.

Maintenance, Repair, Operations Program

Our objective was to determine whether it was feasible for DLA Troop Support Construction and

Equipment (C&E) to obtain customer receipting information for non-CENTCOM (U.S. Central

Command) Maintenance, Repair, and Operations (MRO) orders from the U.S. Air Force’s 

(USAF) system. Specifically, we determined whether: (1) the USAF receipting information 

could be used to receipt orders in DoD Electronic-Mall (EMALL); and (2) the receipting 

information entered into EMALL could flow transparently into Enterprise Business System 

(EBS).

We determined that it was feasible to obtain customer receipting information for 

non-CENTCOM MRO orders from the USAF’s CEMAS system and transfer customer goods 

receipts into DLA systems. DLA Troop Support did not realize it was possible to transfer goods 

receipt data into DLA systems because they previously tried to obtain the information directly 

from the USAF without going through DLA Transaction Services. Since the information was not 

being obtained directly from the customers, DLA Troop Support was exploring paying a 

contractor to obtain this information.

Additionally, we found that USAF receipting information was not used to document receipt of 

the material in EMALL, nor did that information flow transparently into EBS. This occurred 

because customers are not typically entering receipt information into EMALL, rather customers 

are relying on DLA personnel to post receipt information for them. As a result, when information 

is transferred from EMALL into EBS the original customer receipt information is lost and it 

appears that DLA personnel were approving and accepting the order, resulting in an inadequate 

audit trail.

Sustainment, Restoration, and Modernization Program

The objective of this audit was to determine if Sustainment, Restoration, and Modernization 

(SRM) program funds in Europe were used in accordance with applicable laws and regulations.
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We concluded that DLA Energy did not always used SRM funds in Europe in accordance with 

applicable laws and regulations. This occurred because DLA Energy had not: (1) designed, 

implemented, or consistently executed key internal controls in the SRM process. Specifically we 

found that DLA Energy had not: created management review and approvals, recorded all existing 

installation-level projects in the SRM-E database, and individual SRM disbursements were not 

identifiable in the DFAS disbursement system, and (2) retained adequate project documentation 

and provided project oversight, instead they relied on execution agents or Services to monitor 

projects after obligating funds.

As a result of inadequate internal controls and project documentation, DLA Energy did not close 

out projects within 60 days of beneficial occupancy causing errors on the DLA Energy real 

property line in the financial statements. Additionally, we found that SRM funds were 

potentially: used for non-capitalized fuel facilities, misclassified as repairs instead of minor 

construction, and used on similar projects at the same site, indicating possible project splitting.

CACs Issued to Contractors

The objective of the audit was to determine if DLA Headquarters had an effective process to 

issue and retrieve contractor’s Common Access Cards (CACs).

We determined that the process in place to issue contractors’ CACs at DLA Headquarters was 

effective while the process to retrieve contractors’ CACs was not. We found that the Service or 

Agency Point of Contact (SPOC) did not provide effective oversight of the Trusted Agent 

Security Managers (TASM) and Trusted Agents (TA) to ensure that they performed all 

responsibilities associated with the retrieval process correctly. These responsibilities include 

semi-annually re-verifying the contractors continuing need to access government facilities, 

revoking the CACs’ authorization when access is no longer required, and coordinating the 

retrieval of the CACs to prevent unauthorized access to government facilities and DLA 

networks. We also found that contracting officers were not inserting Federal Acquisition 

Regulation (FAR) clause 52.204-9 in service contracts where contractors had routine access to 

DLA. This clause allows contracting officers to delay the final payment for contractors whose 

personnel fail to return government-provided identification, including CACs. This clause serves 

as a secondary measure for retrieving contractors’ CACs but is only enforceable when included 

in applicable service contracts. Additionally, we determined that contracting officer 

representatives (CORs) did not have a clearly defined role in the process for retrieving 

contractors’ CACs.

Generator Certifications

The objective of our audit was to determine whether DLA Disposition Services sites properly 

receipted items requiring generator certifications.

We determined DLA Disposition Services sites did not consistently receipt items requiring 

generator certifications. Specifically, we determined that certification designations in 

Distribution Standard System (DSS) did not match documentation attached to items. In addition, 

we identified receipt actions that did not comply with DoD policy for obtaining certifications. 

This occurred because there are no standard procedures that provide personnel instructions to 

properly process items in DSS that require generator certifications. Further, system controls do 
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not facilitate receipt of items in accordance with DoD policy. As a result, property received and 

processed without proper certification could potentially pose safety, environmental, and national 

security risks.

Retrieval and Deactivation of Civilian CACs

The objective of the audit was to determine if DLA had an effective process to retrieve and 

deactivate common access cards (CACs) from departing civilian employees at DLA 

Headquarters (HQ).

We determined that the process to deactivate CACs for separating civilian employees at DLA 

HQ was generally effective; however, the process to retrieve civilian’s CACs was not effective. 

This occurred because DLA Human Resources did not effectively communicate with key 

out-processing points of contact (POCs). Additionally, the DLA HQ Pass and Identification (ID) 

Office did not maintain documentation of the disposition of retrieved civilian CACs. As a result, 

there was no assurance separating civilian employees consistently completed the required outprocessing steps, which included surrendering their CAC.

b. Improve Customer Service

Government Purchase Card

The DLA Office of Inspector General (OIG) Audit Division conducted a follow-up audit of the 

Government Purchase Card (GPC) program at the request of the DLA Director. Our audit 

objective was to determine if DLA implemented recommendations from the DAO-12-24, Audit 

of Government Purchase Cards, dated September 30, 2013. Specifically, to determine if DLA 

Acquisition (J7):

• Required the GPC Program Manager to coordinate with J7’s Internal Control 

Administrator and:

o Established a plan to identify and establish key management controls for the GPC 

program in accordance with Office of Management and Budget (OMB), Circular 

A-123, Appendix B and the DoD Charge Card Guidebook;

o Ensured that the GPC program is included on the J7’s Internal Control 

Administrator’s master schedule for review;

o Reported the GPC program as a high risk area in DLA’s Annual Statement of 

Assurance;

• Ensured the DLA Instruction 2106 “Government Purchase Card” complies with OMB 

Circular A-123, Appendix B; DoD Charge Card Guidebook; and other applicable 

guidance;

• Conducted required training for all billing officials and cardholders;

• Reviewed Agency Program Coordinator (APC) records to ensure DLA has appointment 

documentation and training certificates on file for each billing official and purchase 

cardholder;

• Ensured there was a DD Form 577 on file for each billing official and purchase 

cardholder; and
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• Developed procedures to assist the APC in conducting reviews of all purchase card 

accounts at least once a year, including a timeline and relevant topics to cover in the 

review.

We determined that J7 has implemented and completed corrective actions for all six 

recommendations previously reported in DAO-12-24, Audit of Government Purchase Cards, 

dated September 30, 2013.

c. Support Achieve Audit Readiness

Rescission Letter for Real Property

Based on the results of an ongoing internal quality assurance review that found the original audit 

team had significant deficiencies in the documentation of their work ‐ I have decided that the 

most prudent course of action is rescind our final audit report on Real Property Additions, 

Deletions, and Construction in Progress. This is not an action that I have taken lightly, but 

believe that it is necessary given that the magnitude of the deficiencies identified. Because the 

original audit team did not have sufficient documentation to prove some of the facts in the report, 

recipients should determine if the reported conditions will assist them in identifying and 

improving operations. Although seven of the nine recommendations have been implemented and 

are either closed or closed not verified, all nine recommendations will be removed from follow‐

up tracking.

Management Assertion for DAAS

Our objective was to determine if EY LLP’s work complied, in all material respects, with 

GAGAS. Our monitoring efforts were different from an audit performed in accordance with 

GAGAS in that we did not reach a conclusion and provide recommendations. We reviewed EY 

LLP’s report and related examination documentation and discussed audit results with EY LLP 

representatives. Our review disclosed no instances where EY LLP did not comply, in all 

material respects, with GAGAS. Our review was not intended to enable DLA OIG to express, 

and we do not express, an opinion on the DAAS IT computing process systems and key controls. 

Accordingly, EY LLP is responsible for the attached auditor’s report and the conclusions 

expressed in the report.

d. Investigations Division 

ID opened 28 new criminal investigations and had a total of 76 criminal cases in progress at year 

end. We opened 34 new employee misconduct investigations and had a total of 26 in progress at 

year end. We opened 331 other actions and we had 292 in progress at year end.

On May 15, 2013, we opened an initiative to recover 966 lost, stolen, missing, or 

misappropriated (sold, traded, given away) weapons issued by the Law Enforcement Support 

Office, DLA Disposition Services (DS LESO), to Law Enforcement Agencies (LEA) located 

throughout the US and Territories. Our efforts resulted in resolving (recovering or otherwise 

accounting for, such as obtaining records of destruction) 512 weapons, leaving 454 targeted 

weapons as of September 4, 2014. Starting on September 5, 2014, the Director, DLA, instructed 

us to more directly support the DS LESO by verifying and validating information documenting 

the issue and status of each targeted weapon and providing the results to DS LESO for a 
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determination of the status of the weapon (dropped from or retained in the active inventory) and 

the responsible LEA (terminated, suspended, or reinstated). We are tracking 426 weapons, all 

indexed in NCIC. We have added five weapons to the tracking list and resolved 38 since 

September 5, 2014. Of the weapons we are tracking, 128 are listed as stolen, 233 are listed as 

missing, 3 are listed as lost, and 62 are listed as misappropriated (sold, traded, or given away). 

Validated information on 421 weapons has been referred to LESO for a program determination 

on the status of the weapon and LEA.

The Hotline received 224 complaints and completed 231 investigative actions during the year. 

82 actions were pending at the end of the year.

TSC opened 1191 new assessments and completed 1172. They reassessed 2335. The DLA 

performance standard is not more than 45 days to process each assessment. TSC maintained a 

7.5 day processing turn-around pace throughout the first three quarters but our pace slowed to a 

turn-around time of just over 17 days in the last quarter because TSC was assisting ID with the 

DS LESO program support effort.
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BLANK PAGE
DLA Intelligence (DI)

349

Defense Logistics Agency

DLA Intelligence (DI) 

Fiscal Year 2014 Annual Historical Report

1. Introduction

DLA Intelligence (DI) provides Enterprise-wide policy, program, and operational support for the 

following programs: Intelligence, Counterintelligence (CI), Special Security Office (SSO), 

Special Program Activities, Personnel Security (PERSEC), Information Security (INFOSEC), 

Operations Security (OPSEC), Industrial Security, and Foreign Disclosure (FD) to ensure DLA 

decision makers:

 Receive information needed to make informed decisions;

 Are aware of the sensitive international factors impacting current and potential support 

requirements;

 Have awareness of foreign threat activity occurring wherever DLA footprint resides;

 Have confidence DLA personnel have received adequate training, security clearances, 

and security awareness to ensure unclassified and classified information is protected from 

compromise. 

DI plays a support role in the three DLA Strategic Focus Areas of Warfighter Support, 

Stewardship Excellence, and Workforce Development.

 Augment DLA’s awareness of the sensitive international factors impacting current and 

potential support requirements.

 Focus on implementing risk mitigation strategies.

 Create a more highly skilled, diverse, agile, proactive, responsive, and trained 

intelligence and security workforce that is complementary to the overall mission goals 

and objectives.
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2. DLA Mission, Vision, and Values

a. DLA Mission:

 We are America’s Combat Logistics Support Agency. 

 We provide effective and efficient worldwide support to Warfighters and our 

other customers.

b. DLA Vision: Warfighter-focused, globally responsive, fiscally responsible supply 

chain leadership.

c. Values: Our values are DLA’s foundation for all we do. They provide our guiding 

principles as we accomplish our mission, pursue our vision, and strive to do what is right for the 

Armed Forces and DOD: 

 Warfighter needs guide us; 

 Integrity defines us; 

 Diversity strengthens us; 

 Excellence inspires us.
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3. Organization Chart

Region 1: Columbus, Philadelphia, Richmond

Region 2: Battle Creek, New Cumberland, Susquehanna, San Joaquin

Region 3: Energy, Pacific, Europe & Africa

4. Lines and Scope of Business

a. Policy Management

 Information Security (policy/training/oversight)

 Industrial Security (policy/training/oversight)

 Personnel Security (policy/training/oversight)

 Foreign Disclosure (policy/training/oversight)

 Operations Security (policy/training/oversight)

 Current Intelligence

 Counterintelligence (CI) (policy/training/inquiries/oversight)

 Sensitive Support Programs (policy/training/oversight)

 Special Security Office (SSO)/Sensitive Compartmented Info (SCI) Program 

Management (policy/training/oversight)

 Intelligence Oversight (policy/training/oversight)
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b. Risk Assessment and Process Improvement

 Operations Security Surveys/Assessments

 Continuous Process Improvement 

 Insider /Threat Working Group

 Intelligence support to Mission Assurance

 DLA Intelligence Security Compliance Reviews

 Staff Assistance Visits

 Foreign Contractor Vetting

 Evaluating Foreign Military Sales

 Preliminary Inquiry oversight of potential compromises to classified information

c. Special Projects

 Sensitive Support Programs

 Reviews of DLA web sites, briefings, reports, presentations

 Contract Documentation Reviews

 Supply Chain Risk Management

 Support to DLA Plans and Exercises

 Security Awareness days

d. Products

 Intelligence Summaries (3x/week)

 Threat briefings (daily) to Director, Vice Director, Chief of Staff, J3, J6, and 

Political Advisor

 Foreign Travel Briefs prior to OCONUS travel and debriefings

 Library of Country Travel Briefs for use by travel briefers

 Special intelligence studies (as required by DLA customers, to include Command 

Group, J3 planners, DLA Energy, JCASO)

 Counterintelligence Support Plans

 Briefings to employees prior to hosting foreign visits/debriefings following visits

 “Vetting” foreign visitors and foreign contractors

 CI threat assessments, as requested

 Security and CI education and training for DLA employees

 Critical Information Lists

 Security awareness products

 Reports of finding from security reviews

 DLA Security Classification Guide

 DLA Intelligence newsletter (quarterly)

 DLA Intelligence Security Compliance Review Reports
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e. Budget

 Labor = $5,561,764 

 Non-Labor = $ 205,320

 Contracts = N/A

5. Support to the “Big Ideas”

DI supported several FY 2014 Director’s Big Ideas (“Delight our Customers”, “Improve Process 

and Productivity”, “Clean Out the Attic”, and “Prove it”) as follows:

Security Division:

DI hosted orientation briefings with incoming PLFA decision-makers to ensure they had 

visibility on the support DLA Intelligence provides and to identify their requirements. 

Additionally, we partnered with DLA organization security representatives and coordinators and 

conducted oversight visits, self-assessments, quarterly meetings and training to ensure we stayed 

abreast of customer needs and maintained a cadre of liaisons to help execute the DLA security 

mission. We also used these forums to obtain feedback on DI support and made adjustments as 

necessary. 

DI security program managers participated in local, DOD, and Executive Branch-level working 

groups to influence DOD policy and training and maintain situational awareness of policy 

changes. The DI OPSEC Program Manager attended the OSD/USDI Defense Council for 

OPSEC Oversight (DCOO) meetings and attended the OPSEC Curriculum Working Group 

meeting co-sponsored by the Interagency OPSEC Support Staff and OSD/USDI. The DCOO 

focuses on high level strategic planning for the DOD OPSEC community, to include annual 

reporting, assessments, the Defense OPSEC Planners Course (DOPC) and incorporating OPSEC 

into planning throughout the department. During the OPSEC Curriculum Working Group, we 

conducted an overall review of the courses and determined the validity of the current courses 

based on DOD requirements. We also recommended a defined structure to ensure the training 

courses were in line with DOD requirements making sure we are providing appropriate training 

to OPSEC personnel throughout the department.

The DI Information Security Program Manager is a member of the Defense Information Security 

Advisory Board (DISAB). In this capacity, he participated in DISAB meetings that involved 

reviewing policies and initiatives with respect to Unauthorized Disclosure of Classified and 

Controlled Unclassified Information (CUI) on DoD Information Systems, Policy Status and 

Updates, Self-Inspection Program Report, CUI Update, SF 311 (Agency Security Classification 

Management Program Data) requirement, and Insider Threat Mitigation Program. 

The DI Industrial Security Program Manager is a member of the Government Industrial Security 

Working Group (GISWG), designed to provide a forum for sharing information between the 

Defense Security Service and the Government Agencies for which it provides industrial security 

services. He participated in discussions and provided input regarding changes to security 
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classification guidance for industry and several industrial security processes soon to be 

automated across the government. 

The DI Personnel Security Program Manager participated in several forums, to include the 

Washington Headquarters Services and 4th Estate Security Managers meeting, the Office of 

Personnel Management Security and Suitability Professionals Seminar, and the Security 

Executive Agent Advisory Committee Meeting. These forums allow DLA to provide input and 

gain information on new developments in personnel security, such as continuous evaluation 

process technology and associated policies, reducing the number of cleared personnel, updates to 

the adjudicative guidelines and ensuring reciprocity of clearances among agencies. 

Additionally, the DI Information and Personnel Security Program Managers participated in the 

Annual Security Curriculum Review hosted by the Defense Security Service Center for 

Development of Security Excellence, providing input on key DOD security training initiatives 

for future years. 

DLA participates in the DoD Foreign Military Exchange Program. The DLA Intelligence 

Foreign Disclosure Officer ensures those individuals have the appropriate documentation which 

outlines their duties and what information to which they may have access during their 

assignment. In FY 2014, there were three officers assigned; one Canadian officer assigned to 

JCASO, one German officer assigned to DLA Energy and one Australian officer assigned to 

DLA Distribution.

DI continuously sought process improvements to deliver optimized, value-added, benefits for our 

customers and employees, whether in providing foreign threat information, conducting 

awareness training and staff assistance visits/program, and/or processing personnel security 

actions. Each PLFA and HQ conducted Annual Information Security Self-inspections in FY14; 

DLA reports the results to USDI and the Information Security Oversight Office. Forty-four 

percent of the PLFAs and Regions completed OPSEC self-assessments this FY and DLA 

Intelligence conducted assessments at Battle Creek and DLA Europe and Africa. DI conducted 

100% of FY14 planned staff assistance visits (SAVs) and security compliance reviews, which 

included SAVs at Warner Robins AFB, Bahrain, San Joaquin, CA, and Tobyhanna, PA. 

In the area of DLA security awareness training, for FY14 the Annual Security Awareness 

Training completion rate was 93%; for OPSEC training, 95%; Derivative Classifier Training 

completion rate was 92%; and Original Classification Authority Training completion is at 100% 

for the enterprise. 

Some key process improvement efforts included digitization of DLA personnel security files, 

development of a Personnel Security Standard Operating Procedure (SOP), requirements 

development for the PERSEC database and partnering on development of several DLA Human 

Resources SOPs to improve the time-to-fill process, updating the DLA Security Pre-Publication 

Review Form (DLA Form 1923) to better formalize the process of reviewing information for 

public release, the DLA Security Debriefing Certificate (DLA Form 1834), to eliminate 

redundancy between existing forms, and the Classified Document Receipt, (DLA Form 27), to 

eliminate a redundant and ineffective classified materiel tracking method. 
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Furthermore, DI identified and documented an OPSEC process to help identify Critical 

Information down to the directorate level in order to best protect DLA information and 

associated resources. 

DI established an industrial security enterprise program manager to determine the scope and 

number of DLA contracts involving access to classified information and ensure the proper 

handling of such information in the hands of industry. 

DI also began updating several key issuances, to include the DLA OPSEC, INFOSEC and 

PERSEC instructions, and partnering with J31 to update the Foreign Visits and Foreign 

Disclosure instruction, to be finalized and signed in FY15. 

Intelligence Division:

Current Intelligence Team

This year, the Current Intelligence Team improved intelligence support by increasing the 

Intelligence Summary (INTSUM) production from three days to five and reorganized the format 

into a more globally inclusive product. This was the first year the Current Intelligence Team 

initiated a Customer Satisfaction Survey as part of the daily INTSUM. Although the responses 

were few, all indicated that readers were satisfied with the content and timeliness of the 

information and that the DI Comments enabled the customers to understand the “so what” to 

DLA. In keeping with moving forward on our focus on product improvement, the Team crafted a 

draft proposal for new Priority Intelligence Requirements (PIR) and is awaiting the arrival of the 

new DLA Director before staffing the PIR through the J staff and D codes for comments and 

concurrence and final approval. This iteration of the PIR expands from four to five PIR and 

refines the collection focus to more closely align with the DLA mission as it supports the 

COCOMs and other government agencies. 

The Current Intelligence Team also provided Red Team support to DLA War Game 14 with a 

focus on the PACOM AOR. The team participated in 12 Secure Defense Connect Online 

sessions and two rehearsals at the Center for Naval Analyses at its Clarendon headquarters, 

culminating in the week-long exercise. Current Intelligence participation enabled the team to 

build a better relationship with the customers as well as providing networking opportunities with 

PACOM intelligence and Defense Intelligence Agency counterparts. 

Counterintelligence (CI)

The first big test for the DI CI Team in FY14 was the successful completion of the DOD CI 

Policy Oversight Assessment in January 2014. The OSD assessment team rated DLA 

Intelligence “compliant” with all DOD Directives and Instructions.

During FY14, the DI CI Team supported DLA by conducting more than 825 name checks of 

guests representing foreign governments and commercial entities. The CI Program also 

spearheaded several initiatives to help mature the DLA Insider Threat/Threat Working Group 

(I/TWG), including active liaison with national and DOD insider threat entities; formulating the 
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initial versions of DLA Insider Threat Charter and Insider Threat Policy, and updating those 

documents following member reviews; maintaining the program objectives and milestones 

(POAM) and implementation plan; and, scheduling and organizing the quarterly I/TWG 

meetings and publishing the meeting minutes. The DLA CI Program personnel maintained 

currency on CI topics through participation in external meetings, including the DOD CI 

community management working group and threat working groups. To allow DLA’s active duty 

and reserve military, civilian and contract personnel the ability to complete their mandatory 

annual CI Awareness Training (CIAT) without the need to schedule an in-person facilitator, the 

CI Program personnel transitioned the annual face-to-face CIAT to the online Learning 

Management System. When DOD assigned DLA with CI and CI-related policy documents to 

review, the DLA CI team submitted corrections and revisions. The DLA CI Program also 

provided counterintelligence support to the DLA Critical Infrastructure Protection Working 

Group (DCIPWG).

Special Security Office (SSO)

SSO DLA continued to provide service to internal DLA customers as well as external customers. 

SSO DLA provided annual training to over 90% of the SCI indoctrinated individuals supported 

by the agency. During the year, there was a 20% growth in the number of DLA personnel 

requiring SCI and the SSO continued to provide support to more than 90 individuals from seven 

external DLA customers. The SSO also maintained the physical security aspects of the SCI 

Facilities (SCIFs). 

Special Program Activities 

DLA must ensure all classified and sensitive support requested by the Military Services, other 

DOD components, Executive Branch Agencies of the Federal Government, and non DOD and 

Federal Departments and Agencies complies with DLA Director's intent and is executed IAW 

appropriate legal and regulatory guidance. The Director, DLA Intelligence, is the individual 

tasked with ensuring oversight of sensitive support through the Focal Point Control Program and 

is the Focal Point Program Control Officer (FPPCO) for DLA. Throughout the FY, DLA

Intelligence received Focal Point information from other organization FPPCO's when DLA 

support was required. The FPPCO made the "need to know" determination and indoctrinated 

eligible DLA personnel to the program. 

Part of the oversight program includes identifying any classified or sensitive support being 

provided without headquarters oversight or approval. The DI Team conducted an annual data 

call to ensure all classified or sensitive support was approved at the headquarters where it 

received legal review and was coordinated with the DLA Special Programs Council (SPC), 

comprised of the Vice Director; Chief of Staff; General Counsel; Director, J1; Deputy Director, 

J3; Director, J6; Director, J7; Director, J8; and, Director, DLA Intelligence. 

The DI Team maintained a current access control list to limit inadvertent leakage of classified 

information and to facilitate quick verification of access for those who have been indoctrinated. 

External organizations will not permit DLA employees to attend conferences or meetings or even 

hold secure telephone conversations about Focal Point programs without first receiving 
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verification of their access to the particular program under discussion. Failure to verify could 

lead to DLA personnel being excluded from participation in Focal Point program activities to the 

detriment of DLA's mission or that of a supported command. 

The Team provided refresher briefings to those individuals participating in the program. The 

DLA training rate completion was 98.6% against a metric of 95%. Continued access to Focal 

Point programs is contingent upon receipt of refresher briefings each 12 months. Personnel who 

have not received the briefing are denied access to Focal Point information until they receive the 

refresher briefings. Those who support classified projects are unable to perform their duties 

absent these briefings. 

This year the DI Team made a concerted effort to update sensitive support MOAs extremely outof-date. Separate coordination with each of the 9 SPC members is taking much longer than 

expected. The Team completed 4 to date, and are awaiting requirements and drafts from 

customers for 3 others. These MOAs are important as they establish the limits of DLA's support. 

Since that support is reimbursable, the MOA establishes the processes for requesting DLA 

support, funding that support, and making payment for that support. MOAs also establish limits 

on DLA Support, and tell the customer what they can expect. The SPC ensures the requested 

support is lawful and that DLA equities are protected. 

6. Key DLA Intelligence Operational Statistics

a. FTE Execution 

In FY14, DI was required to reduce one FTE (from 53 to 52 authorized) to pay its share of the 

DLA Director’s Reserve withhold. All DI employees physically located at the supported DLA 

Field Activities are security specialists.

Full Time Equivalent (FTE) Authorized/Actual (as of 30 September 2014) = 52/50 

DLA Intelligence Locations

• at Battle Creek – 4/4 

• at Columbus – 3/3 

• at Philadelphia – 3/3 

• at Richmond – 3/3

• at New Cumberland – 4/4

• at Susquehanna – 1/1 

• at San Joaquin – 1/1

• for Energy – 3/2

• for Pacific – 2/2

• for Europe & Africa/Middle East – 2/2

• at Fort Belvoir – 7/6

• at HQC – 19/18
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DI leverages resources to augment its small staff through the Reservist Program and the 

Enterprise Rotation Program. This year, DOD budget cuts have impacted DI in the loss of its 

two Reservist positions. The Reserve officers have been an integral part of the overall effort in 

supporting the Enterprise, especially on the weekends since the JLOC transitioned to 24/7 

operations. At the end of the fiscal year, the Current Intelligence Team was authorized to 

sponsor a DLA member in the Enterprise Rotation Program. This is the first time DLA 

Intelligence has opened up the opportunity for a non-intelligence trained person to work with the 

team. This program will provide the Current Intelligence Team extra depth and flexibility.

Arrivals:

Derrick Broussard, HQ Industrial Specialist

Noelle Beato, HQ Personnel Security Specialist

Tyrone Wright, Personnel Security Policy

Robert Houle, Security Specialist, supporting DLA Europe & Africa

Janine Schaffner, Personnel Security Assistant, supporting DLA Distribution

Camilo Bolanoeslava, Counterintelligence Specialist (HQ)

Anthony Biafore, Security Specialist, supporting DLA Land and Maritime

Departures:

Noelle Beato, Personnel Security Policy

Robert Houle, Security Specialist, supporting DLA Land and Maritime

Susan Cooper, Personnel Security Assistant, supporting DLA Distribution

Major Dale Moore, Intelligence Reservist (weekends)

CDR Mark Dunnagan, Intelligence Reservist (weekends)

Demetrius Judkins, Counterintelligence PM (HQ)

b. Travel Execution

DI monitors the travel execution closely to ensure proper stewardship. DI’s top three spending 

priorities were for supervisors (who are located at the HQC) to visit supervised employees 

throughout the Enterprise and take mandatory supervisor training; to conduct Security 

Compliance Reviews (SCRs) and Staff Assistance Visits (SAVs) at the PLFAs, Europe & 

Africa, Central, and Pacific, to ensure they are implementing our policies and the policies are 

appropriate and achievable; and, for employees to take mission essential training commensurate 

with mission requirements. DI leadership continued to use available tools, to include VTCs and 

teleconferences, to augment the SCRs/SAVs at locations DI employees did not visit. 

c. Training Execution

The SPēD Certification Program is part of the DOD initiative to professionalize the security 

workforce. The purpose of the program is to promote interoperability, facilitate professional 

development and training, and develop a workforce of certified security professionals. The 

program consists of three core certifications: Security Fundamentals Professional Certification 

(SFPC), SAPPC: Security Asset Protection Professional Certification (SAPPC), and SPIPC: 

Security Program Integration Professional Certification (SPIPC). DI has exceeded its goal of 
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359

10% of DLA Intelligence security specialists obtaining the SFPC, with 42% obtaining the 

certification to date. 

Additionally, DI is co-leader of the DLA 0080 Strategy Development/Strategy Implementation 

Team and partners with DLA Installation Support and DLA Human Resources in this effort. 

The team charter is to analyze the findings and recommendations from the May 2013 DLA 0080 

Competency Assessment and develop an implementation plan to address identified competency 

gaps or strategic needs, training and career development.

DI is also a member of the Security Positions Working Group (SPWG). The SPWG is a Defense 

Security Enterprise Advisory Group led by the Office of the Under Secretary of Defense for 

Personnel and Readiness assigned to recommend a plan of action to identify an approach to 

record component decisions on security position identifications into appropriate manpower and 

human resource systems and databases. This was in line with Defense Security Enterprise (DSE) 

Strategic Plan Goal #3 to “Develop a professional security workforce to improve individual 

performance in accordance with the Security Functional Community” by identifying DoD 

security positions and those performing security functions within the DoD Civilian, Intelligence, 

Military Services, and Contractor populations. 

d. Telework Participation

DI fully participates in the DLA telework program. Throughout the year, DI tracked the 

following metrics:

• Civilian employees (strength) who occupy telework eligible positions – 52/43 

• Civilian employees who have current, approved telework agreements – 83% 

• Civilian employees who have teleworked at least one day during the month – 71% 

(personal choice, not management decision). 

7. Summary/Overall

FY14 was a very busy year for DLA Intelligence. Our security training programs are current; we 

are getting close to incorporating insider threat training into the Learning Management System 

(LMS); and, we acquired funding for a Joint Staff organization to conduct OPSEC surveys of our 

organizations starting in FY16. Our security subject matter experts have great reputations and 

are sought after by OSD when looking to develop new policies and procedures, as evidenced by 

the work done during various OSD policy working groups. Our CI program is making headway 

in both the CI and insider threat programs, even with departures of key personnel. We received a 

rating of “compliant” by the DOD CI Policy Oversight Assessment in January 2014. The 

Current Intelligence Team’s support to the Red Team during the DLA War Game 14 with a 

focus on the PACOM AOR added “credibility” to the threat and opened the eyes of many 

participants as to what actions the enemy could take during a real world situation.

In FY15 and out, we will continue to focus on our “big three,” i.e., policy, training, and 

oversight, of our security and intelligence programs. Based on lessons learned from SAVs, 
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inspections, and input from DI personnel, we continue to review DI mission responsibilities and 

personnel resources and make adjustments to ensure optimum organizational effectiveness and 

best utilization of the workforce. We will also update policy if warranted by these lessons 

learned and we determine there is a systemic issue. While the absence of DOD insider threat 

policy guidance did not deter us from moving forward with our own program, with the issuance 

of the DOD Directive 5205.16, subject: The DOD Insider Threat Program, on 30 Sep 2014, we 

now have timelines for implementation of a viable insider threat program within DLA. Our first 

steps are to issue the DTM and get the training included in LMS. Finally, while we had a 

DORRA manpower study completed in FY13, we are working with DORRA to be included in 

the overall DLA DORRA manpower study scheduled for FY15. 
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Defense Logistics Agency

DLA Legislative Affairs (DL) 

Fiscal Year 2014 Annual Historical Report

1. Mission and Activities 

The mission of the Defense Logistics Agency’s Office of Legislation Affairs (DL) is to provide 

executive-level advice and assistance to the Director, Vice-Director, Executive Board members 

and Field Activities on all matters regarding Congress, the White House and all national, state 

and local political activities bearing on Agency mission and operations. The vision of the office 

is to have continued proactive engagement with Members of Congress, Congressional 

Committees and their staffs to gain support for DLA’s mission, programs and initiatives. 

DL also provides full spectrum support to DLA Headquarters and Field Activities. Each 

legislative specialist is responsible for all congressional actions related to their specific 

portfolios. This includes congressional inquiries, Hill engagements (meetings/briefings) and 

hearing support. Congressional support is centralized within DL. The Field Activities, except 

Troop Support, have no dedicated legislative affairs specialists assigned to their organizations. 

However, there are designated legislative points of contact at each Field Activity who reside 

within either the General Counsel offices or the Command support staff group.

2. Organization

DEPUTY 

DIRECTOR

(GS-15)

Sr. LEGISLATIVE 

AFFAIRS SPECIALIST 

(GS-14)

LEGISLATIVE 

AFFAIRS SPECIALIST 

(GS-13)

LEGISLATIVE 

AFFAIRS SPECIALIST 

(GS-13)

LEGISLATIVE 

AFFAIRS SPECIALIST 

(GS-13)

ADMINISRTIVE 

ASSISTANT 

(GS-8)

MANAGEMENT 

ANALYST 

(GS-12)

DIRECTOR

(GS-15)

-Enegy 

-Strategic Materials 

-RDT&E 

-Aviation 

-MILCON 

-Legislation 

-Troop Support 

-Land & Maritime 

-Distribution 

-Disposition 

Total Personnel: 8
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The DL staff consists of eight full time employees; no contract staff. There are three GS-13, 

Legislative Affairs Specialist’s, tasked with direct legislative activity; one GS-14, 

Senior Legisative Affairs Specialist, who also provides direct legislative activity and is the lead 

for the legislative team. We have one, GS-12, Management Analyst, who provides information 

management and database support; one Administrative Assistant, the Director and the Deputy 

Director. The Director and Deputy are tasked with Direct Support to the DLA Director, Vice, 

COS, PLFA Commanders, J-Code Directors, and D-Staff Directors. The Legislative Affairs 

Specialists directly support the Legislative Director and Deputy, and their Director’s Staff Group 

(DSG), PLFA, J-Code, and D-Staff customers. 

3. OSD Efficiencies Initiative 

On January 13, 2013, as a result of the OSD Efficiencies Initiative, the DL Deputy Director, Mr. 

Cordell Francis, is dual-assignment as the Special Assistant to the Assistant Secretary of Defense 

for Legislative Affairs. The agreement between OSD (LA) and DLA assigned the Deputy to 

OSD (LA) three out of five days per week.

4. Congressional Engagements

In 2014 the Legislative Affairs office conducted in excess of 3K Congressional engagements. 

Specifically:

 528 – Congressional Inquiries

 11 – Congressional Reports

 2 – Hearings

 34 – Briefings/Meetings/Telecons

 11 – Budget Briefings

 1368 – Contract Announcements

 34 – Congressional MILCON Notifications

 2880 – Direct requests for information (calls, emails, faxes, etc)

5. Reports to Congress

DLA wrote or contributed to Congressional Reporting Requirements for the Congressional 

Defense Oversight Committees.

National Defense Authorization Act - FY14

DLA REPORT

- Meals Ready to Eat (MRE) War Reserve

o FY14 NDAA, (SASC) 1197 S. Rpt. 113-44,P. 91

o FY14 NDAA, (HASC), 1960 H.R. Rpt. 113-102, Sec. 1604, P. 305

- National Defense Stockpile Operations Report (OPS)
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o 50 USC 98h-2, Sec. 11a

- National Defense Stockpile Annual Materials Plan (AMP)

o 50 USC 5(2)

- Annual Industrial Capabilities Report

o 10 USC, Sec. 2504

DLA INPUT

- Consideration of Fuel Cell Systems

o FY13 NDAA, (SASC), Rpt. 112-173, p. 89 

o (HASC) Rpt. 112-479, p. 122. 

- Defense Logistics Agency Fair and Reasonable Pricing Analysis

o FY14 Approps (S 1429), S. Rpt. 113-85, P. 183 & 184

- Application of the Berry Amendment to the acquisition of athletic footwear in the DOD

o FY14 NDAA, (SASC), 1197 S. Rpt. 113-44, p. 141

- Tungsten Rhenium Wire for DOD Requirements

o FY14 NDAA, (SASC) 1197 S. Rpt. 113-44,P. 97

- Price Trend Analysis for Supplies and Equipment

o FY11 NDAA, PL 111-383 (Sec. 892)

- DLA Roles and Missions Assessments

o FY14 NDAA (HASC), HR 1960, H. Rpt. 113-102, p. 116

Defense Appropriations FY14

- Meals Ready to Eat (MRE) War Reserve

o FY14 Approps (S 1429), S. Rpt. 113-85, P. 52

o FY14 Approps (HR 2397) H.R. Rpt. 113-113, P. 90

6. Fiscal Year (FY) 14 Budget

ITEM ACTUALS

Labor $1,077,787

Travel $738

Training $5,735

Supplies/Equipment $13,128

Printing $2,203

*Contract $83,125
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DL had a budget of approximately $2.8M. The majority of the budget ($1M) is labor, followed 

by the only DL contract for Congressional Quarterly ($83K) for information and research 

services. The contract was shared with J8, J3, and J7. The next largest DL expense is supplies 

($13K), and the remainder was absorbed by training, travel and printing.

7. FY14 National Defense Authorization Act, P.L. 113-66

On December, 26, 2013, the H.R. 3304 became Public Law No. 113-66; The National Defense 

Authorization Act for Fiscal Year 2014. The bill authorized $625.1 billion for discretionary 

spending which was about $3.1 billion less than fiscal 2013. This legislation authorized $526.8 

billion in spending for national defense and an additional $80.7 billion for Overseas Contingency 

Operations. 

DLA specific and direct impact language, other provisions of interest to DLA, and top line 

budget numbers are below. There was an O&M mark for $11,028 million for the Cost of DISA 

computing service rates. 

DLA Specific/Direct Impact

- SEC. 322. DEPARTMENT OF DEFENSE MANUFACTURING ARSENAL STUDY AND REPORT.

- SEC. 323. CONSIDERATION OF ARMY ARSENALS’ CAPABILITIES TO FULFILL 

MANUFACTURING REQUIREMENTS.

- SEC. 331. ADDITIONAL REPORTING REQUIREMENTS RELATING TO PERSONNEL AND UNIT 

READINESS.

- SEC. 352. REVISED POLICY ON GROUND COMBAT AND CAMOUFLAGE UTILITY UNIFORMS.

- SEC. 823. ADDITIONAL RESPONSIBILITY FOR PRODUCT SUPPORT MANAGERS FOR MAJOR 

WEAPON SYSTEMS.

- SEC. 832. EXTENSION OF AUTHORITY TO ACQUIRE PRODUCTS AND SERVICES PRODUCED 

IN COUNTRIES ALONG A MAJOR ROUTE OF SUPPLY TO AFGHANISTAN.

- SEC. 1003. AUDIT OF DEPARTMENT OF DEFENSE FISCAL YEAR 2018 FINANCIAL 

STATEMENTS.

- SEC. 1411. USE OF NATIONAL DEFENSE STOCKPILE FOR THE CONSERVATION OF A 

STRATEGIC AND CRITICAL MATERIALS SUPPLY.

- SEC. 1412. AUTHORITY TO ACQUIRE ADDITIONAL MATERIALS FOR THE NATIONAL 

DEFENSE STOCKPILE.

- SEC. 1611. ADVANCING SMALL BUSINESS GROWTH.

- SEC. 1612. AMENDMENTS RELATING TO PROCUREMENT TECHNICAL ASSISTANCE 

COOPERATIVE AGREEMENT PROGRAM.

Items of DLA Interest

- SEC. 315. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT OF DROP-IN 

FUELS.
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- SEC. 324. STRATEGIC POLICY FOR THE RETROGRADE, RECONSTITUTION, AND 

REPLACEMENT OF OPERATING FORCES USED TO SUPPORT OVERSEAS CONTINGENCY 

OPERATIONS.

- SEC. 326. STRATEGY FOR IMPROVING ASSET TRACKING AND IN-TRANSIT VISIBILITY.

- SEC. 803. IDENTIFICATION AND REPLACEMENT OF OBSOLETE ELECTRONIC PARTS.

- SEC. 1216. REQUIREMENT TO WITHHOLD DEPARTMENT OF DEFENSE ASSISTANCE TO 

AFGHANISTAN IN AMOUNT EQUIVALENT TO 100 PERCENT OF

- ALL TAXES ASSESSED BY AFGHANISTAN TO EXTENT SUCH TAXES ARE NOT REIMBURSED

BY AFGHANISTAN.

- SEC. 1751. SENSE OF CONGRESS ON COMMANDING OFFICER RESPONSIBILITY FOR 

COMMAND CLIMATE FREE OF RETALIATION.

The bill authorized the following amounts for DLA:

FY 14 NDAA HR 3304 - House and Senate Agreement

Items of Interest

TITLE I – PROCUREMENT 

Sec. 4101 – Authorization of Procurement Appropriations Defense-wide Activities - 

($ in thousands)

 Budget Committee

 Request Chg Recommend

PDW – DLA 13,137 13,137

TITLE II – RDT&E

Sec. 4201 – Authorization of RDT&E Appropriations Defense-wide 

($ in thousands)

 Budget Committee

 Request Chg Recommend

RDT&E – DLA 249,477 249,477

0603264S Agile Transportation for the 21st Century 7,565 7,565

0603712S Generic Logistics R&D Tech Demo 20,000 20,000

 

0603713S Deployment and Dist Enterprise Tech 30,256 30,256

 

0603720S Microelectronic Tech Development 82,700 82,700 

 & Support 
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0605070S DoD Enterprise Systems Development 27,917 27,917

0605080S Defense Agency Initiatives (DAI) 51,689 51,689

 Financial Systems

0708011S Industrial Preparedness 24,691 24,691

 

0708012S Logistics Support Activities 4,659 4,659

TITLE III – OPERATIONS AND MAINTENANCE

Sec. 4301 - Authorization of O&M Appropriations Defense-Wide Activities - 

($ in thousands) 

 Budget Request Chg Recommend 

DLA O&M 462,545 451,517

- Cost of DISA computing service rates -11,028

Budget Activity 4: Admin & Service-wide 

Undistributed Marks: None

 

TITLE XIV—OTHER AUTHORIZATIONS

Sec. 4501 - Other Authorizations Budget Request Chg Recommend

*DLA Defense Working Capital Fund 46,428 46,428 

 

*DLA DWCF Direct request was for Reutilization, Transfer, and Disposal costs $46.4M. 

SEC. 4502 – OTHER AUTHORIZATIONS FOR OVERSEAS CONTINGENCY 

OPERATIONS (OCO)

 Budget Request Change Recommend

 

Defense-wide Working Capital Fund 131,678 131,678

DLA DWCF request was for: 

Theater Distribution Afghanistan 7,700

Disposition Services 35,500

IT Communication 3,000

IT Contractor Support 478
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Subtotal Supply Chain Mngt 46,678

Combat Fuel Operations 

Fuel Transp/Losses 85,000

 Total DLA OCO Request 131,678

SEC. 4601—MILITARY CONSTRUCTION AUTHORIZATIONS

 Budget Committee

 Request Chg Recommend

DLA MILCON: 

($ in thousands) 341,216 341,216

CONUS: 

MC Air Station Miramar, CA Replace Fuel 6,000 6,000

 Pipeline

DLA Distribution San Joaquin, CA General 37,554 37,554

 Purpose Warehouse

NAVSUP Fleet Log Center Jacksonville, FL 7,500 7,500

 Replace Fuel Pipeline

 

Panama City, FL Replace Ground Vehicle 2,600 2,600

 Fueling Facility 

Tyndall AFB, FL Replace Fuel Pipeline 9,500 9,500

Hunter Army Airfield, GA Replace Fuel Is 13,500 13,500 

Moody AFB, GA Replace Ground Vehicle 3,800 3,800

 Fueling Facility 

Joint Base Pearl Harbor-Hickam, HI Alter 2,800 2,800

 Warehouse Space 

Joint Base McGuire-Dix-Lakehurst, NJ 10,000 10,000

 Replace Fuel Distribution Components

Holloman AFB, NM Replace Hydrant Fueling 21,400 21,400

 System

Minot AFB, ND Replace Fuel Pipeline 6,400 6,400
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Atlus AFB, OK Replace Refueler Pipeline 2,100 2,100

Tinker AFB, OK Replace Fuel Dist Facilities 36,000 36,000 

DLA Dist Susquehanna, PA Upgrade Haz Matl 3,100 3,100

 Warehouse

 Upgrade Public Safety Facility 5,900 5,900

Arnold AFB, TN Replace Ground Vehicle 2,200 2,200 

 Fueling Facility

DLA Aviation, Richmond, VA Operations 87,000 87,000

 Center Phase I

NAS Whidbey Is, WA Replace Fuel Pier 10,000 10,000

 Breakwater 

Unspecified Minor Construction 7,430 7,430

 Subtotal Inside U.S. 274,784 274,784

NAF Atsugi, Japan Replace Ground Vehicle 4,100 4,100

 Fueling Facility

MC AS Iwakuni, Japan Construct Hydrant 34,000 34,000 

 Fuel System 

NAVSUP Fleet Log Center Yokosuka, Japan 10,600 10,600

 Upgrade Fuel Pumps

Royal AF Mildenhall, UK Replace Fuel Storage 17,732 17,732 

 Subtotal Outside U.S. 66,432 66,432

DLA FAMILY HOUSING: 

($ in thousands)

 Budget Committee

 Request Chg Recommend

DLA FAMILY HOUSING: 1,069 1,069 

 

($ in thousands)

DLA’s request was for $1.3M ($470K for Ops, $288K for Utilities, and $311K for 

Maintenance).
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8. FY14 Legislative Proposals

In FY14 DLA submitted three legislative proposals for inclusion in the President’s FY14 Budget 

Request to Congress. They were for (1) Additional Minor Military Construction Authority, (2) 

Authority to Acquire Additional Materials for the National Defense Stockpile, and (3) 

Reclaiming and Recycling Strategic Materials. None of the proposals were included in the 

President’s submission to Congress.

9. FY14 Consolidated Appropriations Act, P.L. 113-76

On January 17, 2014, H.R. 3547 became Public Law No. 113-76; The Fiscal Year 2014 

Consolidated Appropriations Act. The Act made appropriations for the Department of Defense 

and other Federal agencies through September 30, 2014.

10. FY14 Budget Briefings

DLA started the 2013 Congressional Year with the FY2014 defense budget briefings after the 

President’s Budget release to Congress on April 10, 2013.

Energy Staffer Day

Committee: HASC: Jamie Lynch & Debra Wada

SASC: John Quirk & Lucian Niemeyer

Members/Staffers:

- On April 12, 3013, representatives from DLA Energy, J8, and DL met with HASC and 

SASC professional staff to brief the DLA Energy Program. This was part of the annual 

staffer day hosted by OSD Installations and Environment (I&E). Other participants 

included representatives from Operational Energy Plans and Programming (OEPP), 

AT&L and OSD Legislative Affairs. DLA Energy’s briefing included an overview of the 

energy enterprise, alternative energy projects and Hurricane Sandy support efforts.

FY 14 President's Budget - R&D Briefing to HASC/SASC (S&T)

Committee: HASC/SASC

Members/Staffers:

- On April 16, 2013, representatives from DLA Logistics Operations, Finance, and 

Information Operations, and OSD DCMO briefed HASC and SASC professional staff 

members on DLA’s budget for S&T and the former Business Transformation Agency 

(BTA) enterprise systems that were transferred to DLA in 2011. The briefing was well 

received by the staffers. DL is working the due outs with J3 and J6.

DLA Science and Technology (S&T) and Business Transformation Activity (BTA) FY 14 

Budget Brief

Committee: HASC

Members/Staffers:
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- On April 16, 2013, representatives from DLA Logistics Operations, Finance, and 

Information Operations, and OSD DCMO briefed HASC and SASC professional staff 

members on DLA’s budget for S&T and the former Business Transformation Agency 

(BTA) enterprise systems that were transferred to DLA in 2011. The briefing was well 

received by the staffers. DL is working the due outs with J3 and J6.

FY 14 President's Budget - MILCON - HASC/HAC

Committee: HASC/HAC-M

Members/Staffers:

- On April 17, 2013, the DLA Installation Management staff visited Capitol Hill to brief 

professional staff members of the HAC and HASC on the DLA FY 14 MILCON budget 

submission. Staff from the offices of DLA Legislative Affairs (DL) and DLA Aviation 

also participated. The program request of $341.2 million for 22 projects includes 17 fuel 

infrastructure projects ($197.4 million), 3 distribution projects ($46.6 million), 2 

inventory control point or service center projects ($89.9 million), and 1 unspecified minor 

construction program ($7.4 million). Overall, the staffs were satisfied with our program 

presentation. We are responding to one House staff question regarding how DLA 

manages the risk of programming fuel projects vs non-fuel projects in the MILCON 

program. 

FY 14 President's Budget - MILCON - SASC/SAC

Committee: SASC/SAC

Members/Staffers:

- April 22, 2013

FY14 DLA O&M Budget Briefing

Committee: HASC & SASC

Members/Staffers: John Quirk, HASC PSM, Vickie Plunkett, HASC PSM

- April 30, 2013, representatives from J8 provided an O&M briefing to HASC & SASC 

PSMs. A reoccurring theme during the briefing was to clarify the FY13 budget figures 

by displaying: 13 Appropriated; 13 Adjustments; 13 Sequestration; and 13 current 

estimated to ensure they were capable of comparing the right figures between FY13 and 

FY14. The PSMs also discussed the services' readiness and furlough issues due to 

sequestration, but were looking to see if OSD agencies had taken their fair share of cuts 

to alleviate the impacts on the services. More specifically, Mr. Neimeyer implied that the 

O&M, DW account should take a larger sequestration cut so that the funds could be used 

by the Military Services to avoid furloughs. 

FY14 DLA DWCF Budget Briefing

Committee: HAC-D/SAC-D/HASC/SASC

Members/Staffers:
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- On May 1, 2013, representatives from J8 provided HAC-D, SAC-D, HASC, and SASC 

PSMs with DLAs FY14 DWCF budget briefing.

DLA Science and Technology (S&T) – MANTECH FY 14 Budget Brief

Committee: HAC-D/SAC-D/HASC/SASC

Members/Staffers:

- On May 9, 2013, representatives from DLA Logistics Operations, OSD and the Services 

briefed HASC and SASC professional staff members on their programs and budgets for 

ManTech Research & Development. The briefing was well received by the staffers.

Joint Defense Manufacturing Technology Panel (JDMTP) Budget Brief

Committee: HASC/SASC

Members/Staffers:

- On May 9, 2013, representatives from J-3 and DL participated in a Research and 

Development FY13 budget briefing to Professional Staff for the SASC and HASC. 

DLA’s briefing included a summary of the full spectrum of science and technology 

programs. Specifics were provided on the following President’s Budget Programs to 

include Logistics Research & Development projects and Industrial Preparedness 

(ManTech). The briefing were well-received.

FY14 DLA O&M Budget Briefing

Committee: HAC-D & SAC-D

Members/Staffers:

- May 13, 2013, representatives from J8 and DL provided an O&M briefing to HAC-D 

and SAC-D PSM's . Follow on issues regarded Joint Contingency Acquisition and 

Support Office (JCASO) funding to operations in Afghanistan and Business 

Transformation Agency (BTA) programs.

11. FY15 National Defense Authorization Act

On December 4, 2014, the House passed the FYI 5 NDAA by a vote of 300 to 119. On December 12, 

the Senate passed the NDAA by a vote of 89 to 11. The authorized funding levels are Consistent 

with the House budget, reflecting the Ryan-Murray budget agreement for FY 2014. The NDAA 

authorized $521.3 billion in base discretionary spending for national defense. That is consistent 

with the levels for national defense in the House-passed FY15 budget. In addition, the NDAA 

authorizes $63.7 billion for Overseas Contingency Operations (OCO). OCO funding reflects the 

President's initial request for $58.6 billion, belatedly made after the House had passed the 

NDAA, and his additional request of $5.1 billion to primarily cover counter-Islamic State of Iraq 

and the Levant (ISIL) operations. OCO funding is $15.7 billion below the $79.4 billion 

authorized by the House. The FY15 NDAA is $48.0 billion less than the enacted FY14 NDAA.

Agreement - FY15 National Defense Authorization Act
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S.1847 Report 113-58

This legislation is based on two bills: The FY15 NDAA ( HR 4435), and S. 2410, the Senate’s version. 

The two products were merged through a series of negotiations at all levels of the House and 

Senate. This “agreement” of the Fiscal Year FY 2015 National Defense Authorization Act (NDAA) 

authorizes approximately $577.1 billion for national defense programs. It includes $495.9 billion 

for the Department of Defense base budget and an additional $63.7 billion for Overseas 

Contingency Operations. 

DLA Specific/Direct Impact Language Included:

Matters relating to reverse auctions (sec. 824)

The House bill contained a provision (sec. 815) that would amend the Small Business Act (15 U.S.C. 

631) to prohibit the use of reverse auctions for procurement of certain goods and services if the 

contract is awarded using a Small Business Act procurement authority. It would also limit the use of 

reverse auctions in cases where only one offer was received or where offerors do not have the 

ability to submit revised bids throughout the course of the auction.

The section further clarified that the desire to use a reverse auction does not obviate federal 

agencies from the obligation to use a Small Business Act procurement authority. The Senate 

committee-reported bill contained no similar provision. The agreement includes the House 

provision with a clarifying amendment. We note that in conducting reverse auctions, buyers have 

the ability to cancel an auction at any time before the auction closes or to make the decision not to 

make any award after the auction closes with proper justification in accordance with the terms and 

conditions of the solicitation and all applicable regulations.

The agreement also prohibits the use of reverse auctions for military construction projects that 

require a specific congressional authorization.

SEC. 824. MATTERS RELATING TO REVERSE AUCTIONS.

(a) IN GENERAL.—Not later than 180 days after the date of the enactment of this Act, the Secretary 

of Defense shall clarify regulations on reverse auctions, as necessary, to ensure that—

 (1) single bid contracts may not be entered into resulting from reverse auctions unless compliant 

with existing Federal regulations and Department of Defense memoranda providing guidance on 

single bid offers;

(2) all reverse auctions provide offerors with the ability to submit revised bids throughout the 

course of the auction;

(3) if a reverse auction is conducted by a third party— (A) inherently governmental functions are 

not performed by private contractors, including by the third party; and (B) past performance or 

financial responsibility information created by the third party is made available to offerors; and

(4) reverse auctions resulting in design-build military construction contracts specifically 

authorized in law are prohibited.

(b) TRAINING.—Not later than 180 days after the date of the enactment of this Act, the President of 

the Defense Acquisition University shall establish comprehensive training available for contract 

specialists in the Department of Defense on the use of reverse auctions.
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(c) DESIGN-BUILD DEFINED.—In this section, the term ‘‘design-build’’ means procedures used for 

the selection of a contractor on the basis of price and other evaluation criteria to perform, in 

accordance with the provisions of a firm fixed-price contract, both the design and construction of a 

facility using performance specifications supplied by the Secretary of Defense.

Enhanced authority to acquire goods and services of Djibouti in support of Department of 

Defense activities in United States Africa Command area of responsibility (sec. 1263)

The House bill contained a provision (sec. 1245) that would provide the Secretary of Defense with 

an enhanced authority to acquire products and services produced in the Republic of Djibouti in 

support of Department of Defense (DOD) activities in the U.S. Africa Command (AFRICOM) area of 

responsibility. The Secretary would be required to make a determination that: (1) The product or 

service is to be used only in support of DOD activities in AFRICOM; (2) The limit on competition or 

preference for Djiboutian products or services is vital to the national security interest of the United 

States;

(3) The Djiboutian product or service is of equivalent quality to that which would have been 

otherwise acquired; and (4) The limitation or preference will not adversely affect U.S. military or 

stability operations in AFRICOM or the U.S. industrial base. The authority provided in this section 

would terminate on September 30, 2018.

The Senate committee-reported bill contained a provision (sec. 828) that would provide DOD 

missions in Africa with a limited procurement authority giving a preference to products and 

services produced in Africa. The agreement includes the House provision. Should the Secretary 

secure additional long-term agreements that provide for basing arrangements to support U.S. 

military operations, particularly counterterrorism operations, support to U.S. Department of State 

evacuation requirements, or force protection operational requirement of AFRICOM, we will 

consider a comparable acquisition preference.

SEC. 1263. ENHANCED AUTHORITY TO ACQUIRE GOODS AND SERVICES OF DJIBOUTI IN 

SUPPORT OF DEPARTMENT OF DEFENSE ACTIVITIES IN UNITED STATES AFRICA COMMAND 

AREA OF RESPONSIBILITY.

(a) SENSE OF CONGRESS.—It is the sense of Congress that—

(1) the United States forces should continue to be forward postured in Africa and in the Middle 

East; (2) Djibouti is in a strategic location to support United States vital national security interests 

in the region;

(3) the United States should take definitive steps to maintain its basing access and agreements with 

the Government of Djibouti to support United States vital national security interests in the region;

(4) the United States should devise and implement a comprehensive governmental approach to 

engaging with the Government of Djibouti to reinforce the strategic partnership between the United 

States and Djibouti; and (5) the Secretary of State and the Administrator of the United States 

Agency for International Development, in conjunction with the Secretary of Defense, should take 

concrete steps to advance and strengthen the relationship between United States and the 

Government of Djibouti.

(b) AUTHORITY.—In the case of a good or service to be acquired in direct support of covered 

activities for which the Secretary of Defense makes a determination described in subsection (c), the 

Secretary may conduct a procurement in which— (1) competition is limited to goods of Djibouti or 

services of Djibouti; or (2) a preference is provided for goods of Djibouti or services of Djibouti.
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(f) TERMINATION.—The authority and requirements of this section expire at the close of 

September 30, 2018.

Limitation on availability of funds for procurement of drop-in fuels (sec. 316)

The Senate committee-reported bill contained a provision (sec. 313) that would prohibit 

Department of Defense (DOD) funds to be used for bulk purchases of drop-in fuel for operational 

purposes, unless the cost of that drop-in fuel is cost competitive with traditional fuel, subject to a 

national security waiver.

The House bill contained no similar provision. The agreement includes the Senate provision with a 

clarifying amendment that would factor in the fully-burdened cost of fuel. We note that this 

provision adds a 30 day notice to the congressional defense committees prior to the purchase of 

bulk drop-in fuels for operational purposes, if the fully-burdened delivered cost is 10 percent over 

the fully-burdened market price of traditional fuels available for the same purpose. We also note 

that large-scale demonstrations count as operational purposes and are covered under this 

limitation. We expect DOD to not use a unique federal subsidy to buy or purchase down the cost of 

fuel so it falls below the 10 percent threshold.

SEC. 316. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT OF DROP-IN FUELS.

(a) LIMITATION.—None of the funds authorized to be appropriated by this Act or otherwise made 

available for fiscal year 2015 for the Department of Defense may be obligated or expended to make 

a bulk purchase of a drop-in fuel for operational purposes unless the fully burdened cost of that 

drop-in fuel is cost-competitive with the fully burdened cost of a traditional fuel available for the

same purpose.

(b) WAIVER.—

(1) IN GENERAL.—Subject to the requirements of paragraph (2), the Secretary of Defense may

waive the limitation under subsection (a) with respect to a purchase.

(2) NOTICE REQUIRED.—Not later than 30 days after issuing a waiver under this subsection, the 

Secretary shall submit to the congressional defense committees notice of the waiver. Any such 

notice shall include each of the following:

(A) The rationale of the Secretary for issuing the waiver.

(B) A certification that the waiver is in the national security interest of the United States.

(C) The expected fully burdened cost of the purchase for which the waiver is issued.

(c) NOTICE OF PURCHASE REQUIRED.—If the Secretary of Defense intends to purchase a drop-in 

fuel intended for operational use with a fully burdened cost in excess of 10 percent more than the 

fully burdened cost of a traditional fuel available for the same purpose, the Secretary shall provide 

notice of such intended purchase to the congressional defense committees by not later than 30 days 

before the date on which such purchase is intended to be made.

Sourcing requirements related to avoiding counterfeit electronic parts (sec. 817)

The Senate committee-reported bill contained a provision (sec. 824) that would clarify sourcing 

requirements related to avoiding counterfeit electronic parts. The House bill contained no similar 

provision. The agreement includes the Senate provision with a clarifying amendment.

Requirement to provide photovoltaic devices from United States sources (sec. 858)
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The Senate committee-reported bill contained a provision (sec. 829) that would provide additional 

acquisition opportunities for the Department of Defense with respect to photovoltaic devices. The 

House bill contained no similar provision. The agreement includes the Senate provision.

SEC. 858. REQUIREMENT TO PROVIDE PHOTOVOLTAIC DEVICES FROM UNITED STATES 

SOURCES.

(a) CONTRACT REQUIREMENT.—The Secretary of Defense shall ensure that each covered contract 

includes a provision requiring that any photovoltaic device installed under the contract be 

manufactured in the United States substantially all from articles, materials, or supplies mined, 

produced, or manufactured in the United States, unless the head of the department or independent 

establishment concerned determines, on a case-by-case basis, that the inclusion of such 

requirement is inconsistent with the public interest or involves unreasonable costs, subject to 

exceptions provided in the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.) or otherwise 

provided by law.

Authority to provide education to small businesses on certain requirements of Arms Export 

Control Act (sec. 823)

The House bill contained a provision (sec. 814) that would amend section 21(c)(1) of the Small 

Business Act (section 648(c)(1) of title 15, United States Code) by including a requirement that 

applicants receiving grants pursuant to that section shall also assist small businesses by providing, 

where appropriate, education on the requirements applicable to small businesses under the 

regulations issued pursuant to the Arms Export Control Act (chapter 39 of title 22, United States 

Code) and on compliance with those requirements. The provision would also amend section 2418 

of title 10, United States Code, by expanding the Procurement Technical Assistance Program to 

assist small business concerns with education related to export controls. The Senate committeereported bill contained no similar provision. The agreement includes the House provision with a 

clarifying amendment.

Strategy to prioritize United States defense interests in the Asia-Pacific region (sec. 1251)

The House bill contained a provision (sec. 1231) that would require the Secretary of Defense, in 

coordination with the Secretary of State and other heads of federal departments and agencies, to 

develop a strategy to prioritize U.S. interests in the U.S. Pacific Command area of responsibility, as 

well as an implementation plan to support the strategy. The Senate committee-reported bill 

contained no similar provision. The agreement includes the House provision with an amendment 

that would narrow the scope of the strategy to defense issues and remove the implementation plan 

requirement. The Defense Intelligence Agency should conduct the appropriate defense intelligence 

assessments focused on the matters included in subsection (a)(2)(B) to inform the strategy.

SEC. 1251. STRATEGY TO PRIORITIZE UNITED STATES DEFENSE INTERESTS IN THE ASIAPACIFIC REGION.

(a) REQUIRED REPORT.— (1) IN GENERAL.—Not later than 1 year after the date of the enactment 

of this Act, the Secretary of Defense shall submit to the congressional defense committees a report 

that contains the strategy of the Department of Defense to prioritize United States defense interests 

in the Asia-Pacific region. (2) MATTERS TO BE INCLUDED.—The report required by paragraph (1) 

shall address the following:
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 (A) United States national security interests in the Asia-Pacific region.

 (B) The security environment, including threats to global and regional United States national 

security interests emanating from the Asia-Pacific region, including efforts by the People’s Republic 

of China to advance their national interests in the Asia-Pacific region.

(C) Regional multilateral institutions, such as the Association of Southeast Asia Nations (ASEAN).

(D) Bilateral security cooperation relationships, including military-to-military engagements and 

security assistance.

(E) United States military presence, posture, and capabilities supporting the rebalance to the AsiaPacific region.

(F) Humanitarian and disaster relief response capabilities.

(G) International rules-based structures.

(H) Actions the Department of Defense could take, in cooperation with other Federal agencies, to 

advance United States national security interests in the Asia-Pacific region.

(I) Any other matters the Secretary of Defense determines to be appropriate.

ITEMS OF INTEREST: 

Sole source contracts for small business concerns owned and controlled by women (sec. 

825)

The House bill contained a provision (sec. 827) that would allow for sole source contracting to 

certain women owned small businesses. The Senate committee-reported bill contained no similar 

provision. The agreement includes the House provision with a clarifying amendment.

Plan for improving data on bundled or consolidated contracts (sec. 822)

The House bill contained a provision (sec. 813) that would amend section 644 of title 15, United 

States Code, by requiring the Small Business Administration to work with other agencies to create 

and implement a data quality improvement plan to promote greater accuracy, transparency, and 

accountability in the reporting of contract bundling and consolidation. The committee recognizes 

that properly labeling a contract as bundled or consolidated is important to small business 

competition, as the process of contract labeling triggers a series of reviews and mitigation steps 

that promote opportunities for small business. 

The Senate committee-reported bill contained no similar provision. The agreement includes the 

House provision with a clarifying amendment. We direct the Comptroller General of the United 

States to assess whether contracts are being identified properly as bundled or consolidated. The 

review shall examine a statistically significant sample of contracts awarded by the Departments of 

Defense (DOD), Energy, Health and Human Services, Homeland Security, Veterans Affairs, the 

General Services Administration, National Aeronautics and Space Administration and the Small 

Business Administration with values above $10.0 million in sectors 23, 33, 54, and 56 as defined by 

the North American Industry Classification System.

Not later than October 1, 2015, the Comptroller General shall provide an interim briefing to the 

House and Senate Committees on Armed Services, the Senate Committee on Small Business and 

Entrepreneurship, and the House Committee on Small Business with a summary of findings, 

including an assessment of (1) the quality of data reported pertaining to contract bundling and 

consolidation, and (2) interim recommendations, if any, to improve current data collection and 

dissemination on contract bundling and consolidation.
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In the final report, the Comptroller General shall evaluate (1) the pros and cons of implementing 

government-wide the “Federal Procurement Data System (FPDS) Contract Reporting Data 

Improvement Plan” published by DOD on January 12, 2010; (2) the plan proposed by the Small 

Business Administration under this section; and (3) whether other alternatives should be 

considered to improve reporting of bundled and consolidated contracts without requiring 

modification to FPDS.

Finally, the Comptroller General shall examine whether government-wide strategic sourcing 

vehicles are reducing the number of companies, including small business concerns, that are actively 

participating in the federal procurement system as prime contractors, and whether this reduction 

poses substantial risk to the industrial base. The final report shall be delivered to the House and 

Senate Committees on Armed Services, the Senate Committee on Small Business and 

Entrepreneurship, and the House Committee on Small Business not later than October 1, 2017.

Chief Information Officer authority enhancements (sec. 831)

The House bill contained a provision (sec. 5101) that would strengthen various agencies’ Chief 

Information Officer positions. The Senate committee-reported bill contained no similar provision. 

The agreement includes the House provision with a clarifying amendment.

PROVISIONS NOT ADOPTED FOR THIS AGREEMENT:

Revisions to previously authorized disposals from the National Defense Stockpile

The House bill contained a provision (sec. 1411) that would authorize revisions on limitations in 

asset sales contained in section 3303(a)(7) of the Strom Thurmond National Defense Authorization 

Act for Fiscal Year 1999 (P.L. 105-261), as most recently amended by section 1412(a) of the Duncan 

Hunter National Defense Authorization Act for Fiscal Year 2009 (P.L. 110-417), to increase the 

Department of Defense’s stockpile commodity disposal authority by $50.0 million, and extend this 

authority from 2016 to 2019. The Senate committee-reported bill contained no similar provision.

The agreement does not include the House provision. We encourage the Defense Logistics Agency 

to continue the planned upgrade of the beryllium stockpile held in the National Defense Stockpile.

FY 15 NDAA 

Bill S.1847 Report 113-58

December 2, 2014 

TITLE I – PROCUREMENT 

Sec. 4101 – Authorization of Procurement Appropriations Defense-wide Activities - 

($ in thousands)

 Budget Committee

 Request Chg Recommend
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PDW – DLA 7,436 7,436 

TITLE II – RDT&E

Sec. 4201 – Authorization of RDT&E Appropriations Defense-wide 

($ in thousands)

 Budget Committee

 Request Chg Recommend

RDT&E – DLA 212,073 212,073

0603264S Agile Transportation for the 21st Century 2,544 2,544

0603712S Generic Logistics R&D Tech Demo 16,836 16,836 

 

0603713S Deployment and Dist Enterprise Tech 29,683 29,683 

 

0603720S Microelectronic Tech Development 72,144 72,144 

0605070S DoD Enterprise Systems Development 15,326 15,326 

0605080S Defense Agency Initiatives 41,465 41,465

 (Financial Systs)

0605090S Defense Retired & Annuitant Pay Syst 10,135 10,135

0708011S Industrial Preparedness 22,366 22,366 

0708012S Logistics Support Activities 1,574 1,574

TITLE III – OPERATIONS AND MAINTENANCE

Sec. 4301 - Authorization of O&M Appropriations Defense-Wide Activities - 

($ in thousands) 

 Budget Request Chg Recommend 

DLA O&M 381,470 394,170

- PTAP Funding Increase 12,700 

 

TITLE XIV—OTHER AUTHORIZATIONS

Sec. 4501 - Other Authorizations Budget Request Chg Recommend

 

Defense-wide Working Capital Fund 44,293 44,293 

DLA’s DWCF appropriation request was for $44.3M (for Reutilization, Transfer, and Disposal costs).
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Sec. 4502 Defense-wide Working Capital Fund -

Overseas Contingency Operations 86,350 86,350

DLA’s request:

Dispo Services $35.5M

IT Comm $3.3M

IT Contractor Support $0.5M

Subtotal Supply Chain Mngt $39.3M

Combat Fuel Losses $10.0M

Fuel Transp/Fuel Losses $37.0M

 Total DLA OCO Request $86.3M

SEC. 4601—MILITARY CONSTRUCTION AUTHORIZATIONS

DLA MILCON: 

($ in thousands) Budget Committee

 Request Chg Recommend

CONUS: 

Naval Air Station Lemore, California 

 Replace Fuel Storage and Dist Facilities 52,500 52,500

Robins AFB, Georgia 

 Replace Hydrant Fuel System 19,900 19,900

Joint Base Pearl Harbor-Hickam, HI

 Upgrade Fire Suppression & Vent System 49,900 49,900

 Replace Fuel Tanks 3,000 3,000 

Joint Base Andrews, Maryland

 Construct Hydrant Fuel System 18,300 18,300

Selfridge Air Nat Guard Base, Michigan 

 Replace Fuel Dist Facilities 35,100 35,100

Seymore Johnson AFB, NC

 Replace Hydrant Fuel System 8,500 8,500

MC Air Station Beaufort, SC

 Replace Fuel Dist Facilities 40,600 40,600

Ellsworth AFB, South Dakota
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 Construct Hydrant Fuel System 8,000 8,000 

Defense Fuel Support Point, Craney Is, VA 36,500 36,500 

Defense Logistics Agency Aviation 

 Replace Access Control Point 5,700 5,700

Unspecified Minor Construction 5,932 5,932 

 Subtotal Inside U.S. 283,932 283,932 

Naval Station Guantanamo Bay, Cuba 

 Replace Fuel Tanks 11,100 11,100 

DLA FAMILY HOUSING: 

($ in thousands)

 Budget Committee

 Request Chg Recommend

DLA Family Housing 943 943

DLA’s request was for $429K for Ops, $170K for Utilities, and $344K for Maintenance. 

12. FY15 Consolidated and Further Continuing Appropriations Act

On September 19, 2014, The Continuing Appropriations Resolution became Public Law No. 

113-164. It authorized continued funding for Federal departments and agencies until December 

11, 2014. 

On December 11, both the House and the Senate passed a short term continuing resolution (CR) 

to keep the government operating through December 13. A short term CR was needed to afford 

the Senate additional time to pass an omnibus appropriations bill.

On December 11 , the House passed the Consolidated and Further Continuing Appropriations 

Act of2015 by a vote of219 to 206. The measure is comprised of 11 of the 12 annual 

appropriations bills, including defense appropriations and a CR for the Department of Homeland 

Security through February 27, 2015.

On December 12, the Senate began consideration of the Consolidated and Further Continuing 

Appropriations Act of 2015, and passed the bill on Saturday, December 13, 2014.

13. FY15 Legislative Proposals

In early 2014, DLA submitted three legislative proposals for inclusion in the FY15 DOD Budget 

Request; one proposal regarding the Procurement Technical Assistance (PTAC) program and 
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three proposals regarding the National Defense Stockpile (NDS). However, only one NDS 

proposal was included in the President’s FY15 Budget to Congress. It was a combination of two 

of the NDS submissions regarding disposal and acquisition authorities.

14. FY15 Budget Briefings

DLA started the 2014 Congressional Year with the FY2015 defense budget briefings after the 

President’s Budget release to Congress on March 4, 2014.

Budget Briefing - FY 15 HASC/HAC-M Defense-Wide MILCON Program

Committee: HASC / HAC-M

Members/Staffers:

- On March 11, 2014, representatives from Installation Support, J8 and DL participated in 

a DLA MILCON brief to HAC/HASC professional staff. Staffers received an overview 

of DLA’s MILCON projects for FY15. OSD/C and I&E also participated in the staffer 

day. The briefing was well received. Follow up items included: Review project 

requirements with Services to verify force structure distribution is accounted for and that 

the MILCON's are building the correct scope. Projects specifically identified included 

Robins (JSTARS reduced by 6 airframes) and Selfridge (lose 21 A-10's and gain 10 KC135's).

Budget Briefing - FY15 DLA DWCF to HAC-D/SAC-D/HASC/SASC

Budget Briefing - FY15 DLA DWCF

Committee: HAC-D/SAC-D/HASC/SASC

Members/Staffers:

- On March 14, 2014, representatives from J8 and DL provided HAC, SAC, HASC, and 

SASC PSMs with DLAs FY15 DWCF budget briefing hosted by OSD Comptroller. The 

DLA briefing team presented the defense committee PSMs with a top-level view of 

DLAs DWCF Budget for FY2015. The staffers had general questions regarding DLA's 

ability to meet changing customer demands. This was a good meeting; there were no 

follow up items.

Budget Briefing - FY 15 SASC/SAC-M Defense-Wide MILCON Program

Committee: SASC / SAC-M

Members/Staffers: SASC/SAC-M

Tina Evans, SAC-M Staff Director

Discussion: Michael Bain, SAC-M PSM

- On March 21, 2014, representatives from Installation Support, J8 and DL participated in 

a DLA MILCON brief to HAC/HASC professional staff. Staffers received an overview 

of DLA’s MILCON projects for FY13. OSD/C and I&E also participated in the staffer 

day. The briefing was well received. Follow up items included: Review project 

requirements with Services to verify force structure distribution is accounted for and that 

the MILCON's are building the correct scope. Projects specifically identified included 
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Robins (JSTARS reduced by 6 airframes) and Selfridge (lose 21 A-10's and gain 10 KC135's).

Budget Briefing - FY15 DLA O&M to HASC & SASC

Committee: HASC & SASC

Members/Staffers: John Quirk, HASC PSM

Vickie Plunkett, HASC PSM, Ryan Crumpler, HASC PSM

- On March 31, 2014, representatives from DL, J8 and Energy participated in OSD 

COMP's FY2015 O&M Budget Briefing to Congressional Staffers. The DLA briefing 

team presented the SASC, HASC, HAC, and SAC Committee PSMs with DLAs O&M 

Budget request for FY2015. The PSMs were satisfied with the briefing and DLA's 

budget. Follow up items included: (1I)s DLA producing more JSLIST chem bio suits; if 

so, what pattern?

Budget Briefing - FY15 HASC/SASC ManTech/JPMTP S&T Program

Committee: HASC/SASC

Members/Staffers:

Budget Briefing - FY15 DLA O&M to HAC-D & SAC-D

Committee: HAC-D & SAC-D

Members/Staffers: Katy Hagan, SAC-D

Jacqui Russell, SAC-D

Discussion: Adrienne Ramsay, HAC-D

- On April 1, 2014, representatives from DL, J8 and Energy participated in OSD COMP's 

FY2015 O&M Budget Briefing to Congressional Staffers. The DLA briefing team 

presented the SASC, HASC, HAC, and SAC Committee PSMs with DLAs O&M Budget 

request for FY2015. The PSMs were satisfied with the briefing and DLA's budget. 

Follow up items included: (1) Adrienne Ramsay, HAC-D, asked for a white paper on the 

"Defense Wide Unemployment line" which is being calculated as labor in FY15. (2) Katy 

Hagan, SAC-D, asked for something that talks to the movement of people and how we 

pay for it (in appropriated funds); she is referring to the headquarters reduction.

Budget Briefing - FY 15 DLA Energy to HASC/SASC

Committee: SASC: John Quirk, Dan Adams

HASC: Jamie Lynch, Debra Wada

Members/Staffers: John Quirk, SASC PSM

Dan Adams, SASC PSM

- On April 1, 2014, BG Giovanni Tuck, Commander, DLA Energy, and other 

representatives from DLA Energy and DL participated in OSD I&E's FY2015 Energy 

Staffer Day Budget Briefing. BG Tuck presented DLA Energy's FY2015 budget proposal 

and answered questions regarding the standard price of fuel and fuel projections. BG 

Tuck also spoke briefly with the staffers regarding DLA's concerns with underground 
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fuel storage facilities. The staffers were satisfied with the briefing and are working to get 

BG Tuck on their schedule to discuss the DFSP's in greater detail. Follow up items 

included: (1) Changes in the standard price over the last three or four Fiscal Years. (2) 

P.E. Funding for FY 15

Budget Briefing - FY15 DLA TRANSCOM / Science and Technology (S&T)

Committee: HASC/SASC

Members/Staffers: Kevin Gates, HASC PSM

Arun Seraphin, PhD., SASC PSM, Dan Adams, SASC PSM

- On April 7, 2014, representatives from J3, J8, Energy, and DL provided a briefing to 

Professional Staff Members from the HASC and SASC on DLA Logistics R&D and DNA 

Marking activities. The DLA briefing team presented the SASC and HASC staffers with updates 

on DLA activities and responded to questions throughout. The PSMs were satisfied with the 

briefing and pleased with DLA's activities to secure the logistics supply chain. DL is working 

with J3, J8, and Energy on the due outs. Follow up items included: (1) Provide any lessons DLA 

has learned from DNA Marking. (2) Rapid Innovation Fund: What has DLA submitted and been 

awarded from this program. (3) How many JCTD’s does DLA conduct per year (average). (4H) 

ow much does DLA realize in savings per gallon by moving to Jet A, and how much does DLA 

purchase per year.

Budget Briefing - FY15 HASC Briefing DOD Enterprise Business Systems (DEBS – former 

Business Transformation Activity (BTA) Systems) Budget Brief 

Committee: HASC

Members/Staffers: Kevin Gates, HASC PSM

- On April 10, 2014, HASC PSM, Kevin Gates, wanted an update on DLA activities with 

the former BTA systems now called the DOD Enterprise Business Systems. Due to a 

busy budget briefing cycle and DLA J6 unavailability during the designated time the 

PSM opted to receive the briefing slides and would forward any questions he had. DLA 

forwarded those slides on Thursday, April 10, 2014.

15. DLA issues of Congressional Interest

DLA had a number of issues gain Congressional interest in 2014. A snapshot of the most 

significant issues is listed below.

DLA Aviation Environmental Contamination: DLA Aviation had an issue of groundwater 

contamination by past industrial operations (1960s – 1970s) in the northern part of Defense 

Supply Center Richmond (DSCR). Groundwater samples from wells on the installation in 2014 

indicate the plume had spread farther south along the northeastern fence line. 

DSCR officials provided updated information to the Bensley Community to include planned 

future actions. DLA also held a special RAB meeting which was open to the public to 

communicate this information, and will share this information with the DSCR workforce through 

a town hall meeting. Additionally, DLA Legislative Affairs provided regular updates to Rep. 
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Randy Forbes’ office to inform them of the status and way ahead regarding the environmental 

contamination. 

FY15 NDAA Legislative Language Appeal: Prohibition on Reverse Auctions for Covered 

Contracts The House version of the NDAA contained language precluding the use of reverse 

auctions in contracts using a Small Business Act procurement authority. The language would 

have inhibited the ability of DoD contracting professionals to determine when reverse auction 

was an appropriate pricing tool to achieve price savings through competitive award. DLA 

provided appeal language to L&MR which was used in formulating the Departmental appeal 

which has been submitted to the Office of Management and Budget for interagency review. 

Tents: The tents issue related to DLA Troop Support’s transition of the procurement of tents 

from C&E to C&T. The acquisition strategy was revised to allow for a two-pronged approach 

with an award to a single integrator and multiple awards to suppliers. The DLA Director 

responded to written Congressional inquiries on the matter explaining the transition back to C&T 

allows for seamless support to the warfighter and ensures best pricing from suppliers. The 

transition back to C&T also aligns commercial and military spec soft shelter tents under the same 

operational area within DLA Troop Support.

SBA Size Standard for Footwear: The SBA interim rule change which took effect in January 

2012 increased the small business size standard from 500 to 1,000 employees for footwear. 

Previously, footwear manufacturing consisted of several NAICS codes for footwear. Footwear 

manufacturing has been consolidated into NAICS code 316210 to include boots as well as other 

unrelated types of footwear. DLA provided comments this year on the SBA interim rule change 

and expressed concerns about the impact of the rule change on the industrial base. OSD Small

Business submitted these comments on behalf of the Department. The changes to SBA size 

standard for footwear caught the attention of Sen. Carl Levin, Chairman, Senate Armed Services 

Committee last year and he has remained very engaged this year on the procurement of footwear 

(specifically boots). DLA participated in teleconferences with his staff and separate discussions 

with the SBA and the Office of Management and Budget concerning the rule change. SBA does 

not agree with the merits of DLA's comments and has continued the rulemaking process. 

JSLIST: DL fielded several Congressional inquiries on JSLIST chem bio suits and also 

participated in teleconferences with staffers on the issue. DLA Troop Support and J3 worked 

with the Joint Executive Program Office and the Joint Program Manager to assess the projected 

demand to determine feasible procurement options to balance the current large inventory of suits 

against the needs of the customer and the industrial base. DLA actively engaged with the sole 

source fabric supplier to determine the necessary production levels to sustain operations for the 

coming year. Consequently, DLA has increased its anticipated procurement levels for the next 

year. This issue will continue to require DLA engagement in the coming year.

DLA temporary suspension of surplus transfers Police and Firefighters due to 

Environmental Protection Agency regulation to Clean Air Act: In May 2014, DLA began 

investigating the potential transfer and/or sale of soft skinned HMMWVs. In the process of 

researching any potential challenges or restrictions, the Army informed us that the engines in 

these vehicles were not allowed to be “entered into commerce” as they were not specifically 
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approved as meeting Clear Air Act standards, but were instead granted a National Security 

Exemption (NSE) by EPA for military tactical use only dating back to 1988.

Consequently, release of all vehicles and equipment with diesel engines was temporarily 

suspended by DLA Disposition based on the statutory and regulatory language. Requisitions for 

other property and equipment continue to be released.

On August 13, 2014, DLA and EPA reached an agreement which allows DLA to resume all prior 

practices and procedures utilized for the disposal of excess military equipment that are covered 

by an NSE issued by EPA. This agreement re-instituted all processes and authorities; to include 

Transfers, Donations, and Public Sales previously available to program participants (LESO, FPP 

and FEPP). Specifically, this reset the original accountability requirements and continues the 

transfer of title to program participants.

DOD/DLA transfers of surplus equipment through the 1033 program in light of Ferguson 

Missouri:

A shooting incident in Ferguson, Missouri, in which a police officer fatally shot an unarmed 

teenager led to protests. The police department response was criticized and led to an interagency 

review of the Program led by the White House that provides equipment to local police 

departments. In total, DLA responded to numerous written inquiries, phone calls, and emails. 

OSD and DLA were called to Congress to participate in two congressional hearings which 

resulted in the introduction of legislation to significantly limit the program. The hearings and 

media coverage were largely politically driven to show that leaders were paying attention and 

being responsive to the issue, but there was not enough support in Congress to end or limit the 

program as most Members of Congress strongly support what the program does for the citizens 

in their states and districts.

- Rep Hank Johnson's inquiries and subsequent legislation regarding Defense Surplus 

Equipment

- September 9, 2014, Senate Homeland Security and Governmental Affairs Committee 

Hearing on State and Local Law Enforcement Oversight -- DLA Supported OSD 

Witnesses

- November 13, 2014, House Oversight and Investigations Subcommittee hearing on the 

Defense Excess Property Program – DLA Testified

- Numerous requests from member offices and Defense Committees on the 1033 Program.

LESO Annual Inventory:

Under the LESO program each State/US Territory is required to sign a Memorandum of 

Agreement (MOA) which requires the States to annually validate the accountability of all 
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Fiscal Year 2014 Annual Historical Report

386

weapons, aircraft, watercraft, and tactical vehicles with each LEA by having them conduct and 

certify a physical inventory.

On June 9, 2014, all States had provided the required certifications except North Carolina (NC). 

NC had 343 LEAs of which 157 were non-compliant. NC was suspended from the LESO 

program and had been notified termination procedures were being initiated for non-compliant 

LEAs, which required the return of all equipment. 

DL was the DLA liaison with the NC State Liaison, Ms. Virginia Johnson, to facilitate bringing 

the NC LEA’s into compliance. Consequently, NC completed their inventory.
DLA Equal Employment Opportunity (DO)

387

Defense Logistics Agency

DLA Equal Employment Opportunity (DO) 

Fiscal Year 2014 Annual Historical Report

1. Overview

a. Personnel / Resources

 Personnel

o Full-Time-Equivalent (FTE) Authorized 24

To include 2 FTEs from J6 & 1 FTE from Installation are included in this 

number

 Budget

o Defense Working Capital Fund (DWCF) $3.5 Million

 Labor $2.7 Million

 Non-Labor $822 Thousand

o Reimbursable Fund $455 Thousand

 Labor $319 Thousand

 Non-Labor $136 Thousand

2. Organization

Director

DO-C

Policy & Compliance 

DO-D

Affirmative Employment 

& Diversity

DO-S

EEO Operations 

Deputy Director
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Fiscal Year 2014 Annual Historical Report

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3. Key Mission Essential Tasks 

HQs Office, EEO and Diversity serves as the Agency’s lead respondent and subject matter 

experts on all EEO Complaints Process Management, Affirmative Employment Program 

Management and Diversity Management matters. In this role the DO staff: 

• Ensures agency-wide EEO compliance with federal statutes, regulations, executive 

orders, etc.; 

FERDINAND LECOMPTE, JR.

DIRECTOR 

VACANT

DEPUTY DIRECTOR

CARLOS NOCENTELLI, STAFF DIRECTOR 

COMPLAINTS AND COMPLIANCE DIVISION

(DO-C)

GABY REITAN

EEO SPECIALIST

LARNCE HOPKINS

EEO SPECIALIST

GILDA GRANT

EEO SPECIALIST

ARETHA CARR, STAFF DIRECTOR 

AFFIRMATIVE EMPLOYMENT PROGRAM / DIVERSITY DIVISION

(DO-D)

MARCO BAGNAS

EEO SPECIALIST

ALEX DURAN

EEO SPECIALIST

CYNTHIA SEXTON

EEO SPECIALIST

ERIC SPANBAUER

EEO SPECIALIST

JANICE SAMUEL, STAFF DIRECTOR 

EEO OPERATIONS DIVISION

(DO-S)

RENEE HARRINGTON

COMPLAINTS MANAGER

MICHAEL BELLINGER

EEO ASSISTANT

MICHELLE CRAFTS

EEO SPECIALIST

TAMARA WATTS

EEO SPECIALIST

THERESA HORNE

EEO SPECIALIST

ANN KAUFMANN

EEO SPECIALIST

KELLY MAJIROS

EEO SPECIALIST

VACANT

EEO SPECIALIST

VACANT

EEO SPECIALIST

VACANT

EEO SPECIALIST

MONIQUE RAY

ADMINISTRATIVE OFFICER

KATHRYN FIELDS

EEO ASSISTANT 
DLA Equal Employment Opportunity (DO)

389

• Provides guidance to Primary Level Field Activity (PLFA) EEO Offices in support 

of daily operations and;

• Advises agency leadership on EEO and diversity related issues

Compliance and Policy Division (DO-C)

• Provides oversight for enterprise-wide EEO Complaints Process, including DLA’s 

EEO investigation and Alternative Dispute Resolution programs

• Provides EEO training and development for DLA workforce (employees and 

supervisors) and DLA EEO practitioners.

• Issues, revises, and ensures compliance of agency EEO policies, instructions, and 

Standard Operating Procedures. 

Affirmative Employment Program / Diversity and Inclusion Division (DO-D)

• Manages the agency Diversity and Inclusion/Affirmative Employment program. 

• Oversees and ensures compliance with Federal Special Emphasis Program (SEP) 

requirements. 

• Manages the Reasonable Accommodations/Equal Accessibility Service Environment 

program.

• Analyzes workforce data and prepare internal and external reports highlighting 

agency demographics and trends that, in part, support the identification and 

elimination of work place barriers

Equal Employment Operations Division (DO-S)

• Provides HQ EEO customers with a timely and efficient EEO complaint and 

reasonable accommodations processing.

• Provides EEO-specific training to the workforce; e.g., Prevention of Sexual 

Harassment, No Fear Act, Reasonable Accommodations, EEO for Managers and 

Supervisors, etc.

• Develops, coordinates, and executes specific actions to meet the objectives of the 

Special Emphasis Programs, 

• Provides EEO services for Defense Human Resources Activity (DHRA) 

Headquarters and Components, Defense Technical Information Center (DTIC), and 

Joint Chief of Staff (JCS).

The overarching strategy for FY14 was to continue DLA’s effort to strengthen DLA initiatives to 

build on creating the “Model EEO Program.” staff and command relationships through robust 

outreach efforts, training and education. The following strategic goals per the “Six Elements of a 

Model EEO Program in accordance with the EEOC Management Directive 715 (MD-715) and 

diversity initiatives resulted in continued process improvement of a Model EEO Program for 

FY14 and beyond.
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Fiscal Year 2014 Annual Historical Report

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Essential Element A: Demonstrated Commitment by Agency Leadership

The DLA Director proactively advocates for Equal Employment Opportunity (EEO) in all 

aspects of recruitment, development, and retention and is committed to ensuring a work 

environment that is free of discrimination and harassment. The DLA Director not only 

demonstrates commitment through policy statements, but also, with funding and resources.

Additionally, the agency’s vice director and Chief of Staff are uniquely concerned and engaged 

in the discussion and resolution of EEO issues, and serve as champions for EEO programs and 

initiatives. In FY2014 both the Vice Director and Agency Chief of Staff were intricately 

involved with the progress of EEO initiatives, to include the update of the Reasonable 

Accommodation Instruction, acquisition of video relay interpreting service for deaf employees, 

the renewal and solicitation of new EEO Investigator companies, and continued participation in 

special emphasis program observances. 

DLA Commanders and Directors are actively involved with the resolution of EEO complaints 

and targeted recruitment efforts towards individuals with disabilities and individuals with 

targeted disabilities, and ensuring reasonable accommodations for the DLA workforce at their 

locations. Employees are encouraged to report allegations of prohibited discrimination to their 

servicing EEO Office. All allegations of discrimination and harassment are immediately 

addressed and appropriate corrective actions are taken. DLA managers, supervisors and 

employees are expected to engage with good faith in all constructive efforts to resolve any issues 

or concerns brought forward in the EEO complaint process at the earliest stage of the process as 

possible. 

Essential Element B: Integration of EEO into the Agency's Strategic Mission

B.1. Senior Leadership Orientation: During FY 2014, the EEO Director regularly conducted 

bi-weekly meetings with Agency Chief of Staff, quarterly meetings with PLFA Deputy 

Directors, and monthly meetings with Agency Vice Director, and Agency Director. The EEO 

Director also conducted “State of the EEO Program” briefings for the agency’s Senior 

Leadership and the Union Steering Council. 

B.2. Training and Education Programs: In FY 2014, the agency conducted an overarching 

review of EEO training and education programs offered to employees at the Primary Field Level 

Activities. This review revealed that EEO training modules are currently included in agency 

sponsored New Employee Orientation and as part of mandatory training for supervisors and 

managers. Additionally, the EEO Offices at the PLFA level routinely offered a range of EEO 

training for employees and supervisors which covered a range of topics that included: 

prevention of sexual harassment, No FEAR, reasonable accommodation, equal employment 

opportunity, diversity and inclusion.

During FY2015, the headquarters EEO and Diversity Office will establish a training tiger team 

that includes representation from the PLFA’s to review and update training content of all EEO 

related training modules and programs, as appropriate.
DLA Equal Employment Opportunity (DO)

391

B.3. EEO Staffing: During the FY2013 reporting period, a General Order was issued and 

implemented to eliminate EEO offices’ insufficient staffing levels across the Enterprise. As a 

result, all PLFA EEO offices are operating at maximum strength levels. During FY2014 as a 

result of the General Order, the DLA Headquarters EEO office was able to fill most of their 

vacant positions and stand up its new Affirmative Employment/Diversity Division. 

During FY2014, the DLA EEO Director hired a Staff Directors for Compliance and the 

Affirmative Employment/Diversity Programs, and filled the vacant Staff Director for the EEO 

Office that services DLA Headquarters and several external agencies. Collectively these three 

EEO leadership new hires bring a combined 30 plus years of EEO expertise at both the field and 

headquarters level. 

B.4. EEO Staff Development: In FY2013, DLA began a competency development effort for 

the GS-0260 EEO Specialist workforce. A competency model was introduced May 2013 with a 

survey administered enterprise-wide to EEO practitioners in June 2013. The resulting 

competency assessment was issued in July 2013. Due to change in the General Order and 

attrition of EEO staff, the enterprise did not fully focus on developing a plan , but actively made 

opportunities to develop competencies in response during FY2014. During FY2015, DLA EEO 

Office will develop a comprehensive competency development plan and take appropriate action 

to close skills and competency gaps among EEO practitioners currently working in the GS-0260 

OPM position classification series. 

The competency development plan will focus on three levels of competencies: Core 

Competencies, Technical Competencies and Leadership Competencies. Competencies identified 

for further development include: research and analysis; advisory guidance and counsel; policy 

evaluation and interpretation, and program administration and management. 

Essential Element C: Management and Program Accountability

C.1. Disability Program and Reasonable Accommodation. In the FY2013 MD 715 Report, 

the DLA reported that the agency Reasonable Accommodation Procedures were in the process of 

being updated. In Part H.2, MD 715-FY2013, the agency indicated that revised procedures had 

been vetted with the DLA Disability Program Coordinators at the PLFA. The document was 

identified as completed as of 28 March 2014. Although Part H-2 identified the document as the 

DLA RA procedures, the actual document in question was entitled “Guidelines for Processing 

Reasonable Accommodation Requests for Employees and Applicants with Disabilities.” DLA 

documented guidance which establishes RA policy and procedures are outlined in DLA 

Instruction 7409, was issued on 29 September 2009. 

Upon further consideration, it was determined that in keeping with agency requirements that 

instructions be reviewed and updated every two years, that the agency should re-direct its effort 

to updating the 2009 RA Instruction and that all foundational procedures included in the 

Guidelines be incorporated in the agency’s official RA Instruction. Although the process to 

update an agency Instruction takes approximately 6 months, this approach offered many benefits, 

including required vetting with all agency directorates and offices at the headquarters and PLFA. 

The process allowed the EEO office to engage agency stakeholders including general counsel, 
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Fiscal Year 2014 Annual Historical Report

392

human resources and information technology, and ultimately led to a more effective, efficient 

final draft that represented the Agency’s best interest. As of the end of FY2014, the procedures 

were being prepared for final vetting. DLA anticipates agency approval and implementation of 

the new RA Instruction by Quarter 2, FY2015. 

The FY2014 DLA Enterprise-wide Reasonable Accommodation Report reflects the agency’s

proactive effort and commitment to ensuring equal access and opportunity for individuals with 

disabilities. Of the total number of RA request reported, the agency issued a response to 88% 

within 30 days of receipt; 93 percent were granted; 3 percent denied; and 4 percent were pending 

decision at the end of FY 2014. In FY2015, DLA Headquarters EEO and Diversity Office will 

follow-up with appropriate PLFA’s to ensure the timely response to RA cases noted as 

“outstanding” at the end of FY2014.

Additionally, DLA disbursed a total of $814,180.44 in support of reasonable accommodation 

efforts for the DLA Workforce.

C.2. Targeted Hiring Programs. DLA EEO and HR worked in collaboration on the 

completion of the Disabled Veterans Affirmative Action Plan, and the development of the 2015 

Federal Equal Opportunity Recruitment Plan and 2014 Accomplishment Report. As a follow-on, 

the EEO Office has developed a corresponding action plan and allocated manpower resources to 

support HR in the accomplishment of 2015 FEORP goals. Additionally, DLA EEO personnel 

have been identified as members of the DLA HR Recruitment Cadre. 

DLA is committed to ensuring employment opportunities for college students with disabilities 

through the Workforce recruitment Program. In 2014, DLA was the second largest employer of 

WRP participants – hiring 45 students with Targeted Disabilities agency-wide. Of the 45 

seasonal hires, eight were extended offers of long-term employment with the Agency.

Essential Element D: Proactive Prevention of Unlawful Discrimination 

D.1. Agency Self-Awareness. The DLA Director for EEO and Diversity was installed in 

October 2014, and visited some DLA PLFA EEO Offices, DLA installations, and met with DLA 

0

500

1000

1500

Received Granted Denied Pending

1367 1271

38 58

DLA RA Cases - FY2014
DLA Equal Employment Opportunity (DO)

393

leadership during FY2014 to learn the DLA culture and socialize pending EEO issues and 

initiatives. Staff Assistance Visits (SAVs) are scheduled in FY2015 to assess the efficiency of 

DLA activities in the administration and compliance of the EEO program. . 

D.2. Sexual Harassment Awareness. Prevention of Sexual Harassment (POSH) for supervisors 

Enterprise-wide training launched was deployed 3rd quarter FY2014 on DLA’s Learning 

Management System. This training is a mandatory annual requirement. POSH training for DLA 

employees will be deployed 1st quarter FY2015; During FY2014, some DLA activities offered 

instructor-led training to both senior leaders and employees. 

D.3. Complaint Resolution. DLA EEO Offices continue to process complaints of 

discrimination based on the Title VII protected classes. The DLA Office of Human Resources 

(HR) established a Rapid Climate Assessment Team (RCAT). The RCAT is designed to address 

issues impacting the culture and morale of the workplace. Such issues include harassment that is 

not due to any of the Title VII protected classes. As the lead for the Agency’s workplace 

violence and anti-harassment program for harassment incidents outside the purview of EEO, the 

DLA HR has drafted policy and procedures regarding the aforementioned. These policies and 

procedures are currently under review by DLA leadership and planned to be implemented by the 

end of 2nd quarter FY15. 

All DLA offices continue to offer guidance and direction to senior leaders and employees in 

areas such as the No FEAR Act, conflict resolution, diversity awareness, and cultural awareness. 

Essential Element E: Efficiency

E.1. During FY2014, DLA HR started receiving applicant flow data from OPM. 3rd quarter 

FY2014, HR provided EEO with the first applicant flow data. HR and EEO have to finalize 

EEO personnel who will receive the information on a regular and recurring bases. DLA will 

continue working with HR to reconcile challenges that inhibit an effective barrier analysis. We 

will develop a strategy to address issues with applicant self-identification. 

Essential Element F: Responsiveness and Legal Compliance

F.1. Pre-Complaint Counseling and Formal Complaints Data 
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

394

*Number of complainants in FY 2014: 256

*Number of complainants in FY 2013: 280

 Among the 284 completed counselings (271 individuals), 87 individuals filed 89 formal 

complaints in FY 2014. 

 Number of formal complaints filed represents 31.1% of all pre-complaint counseling 

activities in FY 2014.

 57 cases settled at the pre-complaint stage represents 20% of all completed counselings 

as compared to 22% in FY 2013 and 19% in FY 2012. Of the settled pre-complaints, 

93% were settled through Alternative Dispute Resolution (ADR) and 7% through nonADR. Twelve percent settled at the formal stage.

 The top three bases filed in FY 2014 were reprisal (38%), race (34%), and disability 

(30%); while the top three issues filed were non-sexual harassment (37%), 

promotion/non-selection (15%), and denial of reasonable accommodation (13%). 

DLA will conduct a detailed complaints analysis to explain prevalence of reprisal and 

harassment claims; as well as conduct year-round analysis of agency practices to identify 

activities that are precursors to EEO complaints.

F.2. Pre-Complaint Alternative Dispute Resolution (ADR) Usage. In FY 2012, the 

government-wide pre-complaint ADR offer rate was 85.7% while DLA’s offer rate in FY 2014 

was 95% based upon 271 ADR offers made in 284 completed/ended counseling, remaining the 

0

50

100

150

200

250

300

350

Complaints Filed Complaints

Counseled

Formal Complaints

272 284

89

310

327

107

DLA EEO Complaint Trend Overview

FY 2014

FY2013
DLA Equal Employment Opportunity (DO)

395

same rate as FY 2013. The government-wide participation rate was 51.1%, in FY 2012, while 

DLA’s participation rate in FY 2014 was 65.8% (based upon 187 counselings accepted into 

ADR of the total 284 completed/ended counselings), down from 67.3% in FY 2013. 

F.3. Investigation Timeliness. For EEO complaint investigations conducted in FY 2014, DLA 

used both DoD's Investigation and Resolution Division (IRD) and contractors. To address 

untimely investigations, DLA awarded a contract to an independent contractor starting at the end 

of fiscal year 2012 through 2014. In FY 2014, one (1) complaint was assigned to IRD, which 

was completed in 154 days; while 57 complaints were assigned to a contractor which were 

completed within an average of 135 days as compared to 133 investigations in FY 2013 for an 

average of 214 days, and 52 investigations in FY 2012 for an average of 272 days, and 88 

investigations in FY 2011 for an average of 270 days. In FY 2014, a total of 57 investigations 

(or 98%) were timely completed while in FY 2013, a total of 75 investigations (or 56%) were 

timely completed as compared to 23% in FY 2012 (12 out of 52) and 32% in FY 2011 (28 out of 

88). In FY 2013, IRD completed seven timely investigations out of 33 (or 21%) while the 

contractor completed 68 out of 100 investigations (or 68%). DLA will continue to use contract 

investigators in FY 2015.

F.4. Merit Final Agency Decisions: The primary focus in FY 2014 was to improve the quality 

of final agency decisions and decrease issuance time. Quality greatly improved; however, 

issuance time remains an issue. In FY 2014, DLA issued 11% (3 out of 27) of timely merit final 

agency decisions without an EEOC Administrative Judge’s decision while in FY 2013, DLA 

issued 3.4% (1 out of 29) and in FY 2012, it was 8% (3 out of 38). The focus for FY 2015 is to 

maintain the level of quality and improve issuance time. Key factors for improving time include: 

(1) Improved framing and acceptance/dismissal of claims; (2) better subject matter/technical 

oversight of investigations in order to ensure quality/thorough Report of Investigations that will 

enable prompt decisions; (3) acquiring LexisNexis to improve legal research; and (4) improved 

legal analysis of the office’s FAD Writers. 

F.5. Final Agency Actions: DLA succeeded in issuing final orders implementing the 

Administrative Judges’ decision within the required timeframe (within 40 days). In FY 2014, 

there was one finding of discrimination while in FY 2013; there were no findings of 

discrimination.

In FY 2014, DLA’s processing time for issuing a decision dismissing a complaint on procedural 

grounds was 52.8 days, a slight increase of 50.2 days in FY 2013, but less than the FY 2012’s 

government-wide average of 92.5 days. (Note: EEOC maintains that, in general, acceptance 

letters/dismissal decisions should be issued well in advance of the 180 day time limit for 

completing an investigation, and has suggested a more practical time would be within 60 days of 

the filing of the formal complaint).
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Workforce Composition and Analysis

The DLA Workforce is comprised of 23,646 employees. Of that total 61.26 percent (14,486 

employees) are men and 38.72% (9,160 employees) are women. The DLA Workforce saw a 

decline in its numbers by 392 employees from 24,038 in FY2013 to 23,646 in FY2014. 

DLA has a total of 18,732 General Schedule positions, the majority of which 41.59 percent, 7791 

employees) are in Emerging Leader positions, followed by mid-level positions (32.52 percent, 

6,093), first level (16.44 percent, 3,081), and senior positons (9.43 percent, 1,767). DLA has 

9,332 persons encumbering mission critical occupations, with the majority at the GS-12 level. 

DLA analyzes its workforce levels as follows:

 Entry level: GS-01 through GS-08

 Mid-level: GS-09 through GS-11

 Emerging leader: GS-12 through GS-13

 Senior level: GS-14, GS-15, and SES

A total of 4,921 DLA personnel occupy Federal Wage System (FWS) positions. 4,270 (86.77 

percent) are Wage Grade. 303 (6.15 percent) are Wage Leaders, and 348 (7.07 percent) are 

Wage Supervisors. 

DLA hired a total of 3,085 persons during FY2014. With respect to MCOs, DLA hired a total of 

388 persons into MCO positions. The majority of DLA MCO positions are in the Contracting 

series of GS-1102 (2,978 employees), with both Inventory Management (GS-2010) and 

Information Technology Management (GS-2210) having 1,258 employees. Quality Assurance 

(GS-1910) has 803 employees. 

23646

9160

14486

DLA Workforce Overview - FY2014

Total Workforce

Females

Males
DLA Equal Employment Opportunity (DO)

397

During FY2014, attritions were higher than accessions. A total of 4,774 persons left DLA 

(4,481 voluntarily and 293 involuntarily). Additionally, DLA’s MCOs saw a total of 489 

retirements during FY2014. 

DLA HISPANIC WORKFORCE: Hispanics make up 5.32 percent (1,258 employees) of the 

DLA workforce. This is a decline of 15 employees from FY2013; however this is a very slight 

increase from their 5.2 percent participation rate in FY2013. Hispanics still remain below their 

9.93 percent NCLF. Hispanic males make of 3.4 percent (803 employees) of the DLA 

workforce, while Hispanic female’s male up 1.92 percent (455 employees) of the DLA 

workforce. Hispanics make up 4.90 percent (919 employees) of DLA’s 18,732 member General 

Schedule workforce. Overall, Hispanics make up 4.64 percent (143 employees) of the 3,081 

DLA entry-level positions; and 3.73 percent (66 employees) of the Agency’s senior level 

positions. The majority of the Hispanic workforce in General Schedule positions are at the GS09 through GS-13 level. Of that, Hispanics make up 5.35 percent (326 employees) of the 6,093 

mid-level positions. Although more Hispanics encumber emerging leader positions as opposed 

to mid-level, their participation rate is less than mid-level positions. Hispanics make up 4.92 

percent (384 employees) of DLA’s emerging leader positions. Hispanics make up 4.91% of 

DLA’s MCOs, with the majority in the GS-1102 series, at the GS-12 level. Hispanics make up 

5.33 percent of the GS12 MCOs. Hispanics make up 6.88% (339 employees) of DLA’s FWS 

positions. Hispanics make up 7.02 percent (300 employees) of DLA’s 4,270 WG positions; 4.29 

percent (13 employees) of DLA’s 303 Wage Leader positions; and 7.47 percent (26 employees) 

of DLA’s 348 Wage Supervisor positions. 26.94 percent (339 employees) of the Hispanic 

workforce (1,258 employees) encumbers FWS positions. When looking exclusively at the 

Hispanic workforce, 23.84 percent are in WG positions; 1.03 percent is in Wage Leader 

positions; and 2.06 percent are Wage Supervisors. Hispanics made of 4.24 percent (131 

employees) of DLA’s FY2014 overall hires, and 3.60 percent (14 employees) of the DLA MCO 

23646

1258

5845

841 148

193

DLA Workforce by Race, National Origin - FY 2014

Total Workforce

Hispanic

Black/African Americans

Asian

Native Hawaiian/Pacific Islander

American Indian
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Fiscal Year 2014 Annual Historical Report

398

hires. Hispanics made up 4.98 percent (238 employees) of the total separations from DLA. A 

total of 489 persons in MCOs retired from DLA, of which 3.68 percent (18 employees) were 

Hispanic. 

DLA Black / African American Workforce: Blacks/African Americans make up 24.72 

percent (5,845 employees) of the DLA workforce. This is a decline of 94 employees from 

FY2013, with relative no change in their participation rate. Blacks well exceed their NCLF of 

9.02 percent. Black men made up 12.94 percent (3,059 employees) of the DLA workforce, while 

Black females made up 11.78 percent (2,786 employees) of the DLA workforce. Blacks make 

up 23.39 percent (4,382 employees) of DLA’s 18,732 member General Schedule workforce. 

Numerically the majority of blacks encumber mid and emerging level positions. Blacks 

encumber 27.99 percent (1,706 employees) of the mid-level positions, and 20.10 percent (1,566 

employees) of the emerging level positions. Of the remaining position levels, Blacks make up 

25.47 percent (785 employees) of the Agency’s first level positions, and 18.39 percent (325 

employees) of DLA’s 1,767 senior level positions. Blacks make up 25.40 percent (2,372 

employees) of DLA’s MCOs, with the majority at the GS-11 level. Blacks make up 32.34 

percent (958 employees) of DLA’s 2,962 GS-11 level MCOs. The majority of Blacks in MCO 

positions encumber GS-1102 positions. Blacks make up 29.77 percent (1,465 employees) of 

DLA’s FWS positions. Blacks make up 28.92 percent (1,265 employees) of DLA’s 4,270 WG 

positions; 32.67 percent (99 employees) of DLA’s 303 Wage Leader positions; and 29.02 

percent (101 employees) of DLA’s 348 Wage Supervisor positions. When looking exclusively at 

the Black population at DLA, 25.06 percent (1,465) of the Black workforce (5,845) encumbers 

FWS positions. Of that, 21.64 percent are in WG positions; 1.69 percent in in WL positions; and 

1.72 percent are in WS positions. 

Blacks made up 20.72 percent (612) of DLA’s 3,085 FY2014 hires. With respect to MCOs, 

DLA hired a total of 388 persons into MCO positions: of which 19.07 percent (74) were Black. 

Blacks made up 21.93 percent (1,047) of DLA’s 4,774 separations. A total of 489 persons in 

MCOs left DLA, of which 20.04 percent (98) were Black. 

DLA Asian Workforce: Asians make up 3.55 percent (841) of DLA’s workforce. They are 

slightly below their NCLF of 3.90 percent. Asian males make up 2.20 percent (521) of the DLA 

workforce, and Asian females make up 1.35 percent (32) of the DLA workforce. Asians make 

up 3.41 percent (640) of DLA’s 18,732 General Schedule workforce. Numerically, the majority 

of Asians are in emerging leader positions. Asian make up 3.61 percent (282) of the 7,791 

emerging leader positions. However, when looking at participation rate, the majority of Asians 

encumber entry level positions: 4.28 percent (132) of 3,081 DLA entry level positions. Asians 

make up 2.87 percent (175) of DLA’s 6,093 mid-level positions and 2.88 percent (51) of DLA’s 

1,767 senior level positions. Asians make up 3.20 percent (299) of DLA’s MCOs, with the 

majority in GS-1102-12 positions: 3.16 (94) of 2,970 DLA GS-1102 positions. Asians made up 

4.08 percent (201) of DLA’s FWS positions. The 4,270 member DLA WG workforce is 

comprised of 4.21 percent (180) Asian employees; 3.63 percent (11) of the 303 WL workforce; 

and 2.87 percent (10) of the 348 WS workforce. Looking exclusively at the Asian workforce, 

23.90 percent (201) are in FWS positions. Of that, 21.40 percent are WG; 1.30 percent is WL; 

and 1.18 percent is WS. Asians made up 3.83 percent (11) of DLA’s 3,085 hires, and 4.63 

percent (18) of DLA’s external MCO hires. Asians made up 3.18 percent (12) of DLA’s 4,774 
DLA Equal Employment Opportunity (DO)

399

voluntary and involuntary separations: 3.2 percent (143) of 4,481 voluntary and 3.07 percent (9)

of 293 involuntary separations. Asians made up 2.24 percent (11) of DLA’s 489 MCO 

retirements. 

Native Hawaiian / Pacific Islander: Native Hawaiians/Other Pacific Islanders make up .62 

percent (148) of the DLA workforce. This exceeds their NCLF of .14 percent. NH/OPI males 

and females made up .43 percent (102) and .91 percent (46) DLA’s workforce respectively. 

NH/OPIs make up .48 percent of DLA’s General Schedule positions. Numerically, the majority 

of NH/OPIs (33) encumber the emerging leader positions. Yet, when looking at their 

participation rate, the majority are in first level positions, .84 percent (26 percent), with mid-level 

(.47 percent, 29 employees), emerging leader (.425 percent, 33 employees), and senior level .169 

percent (3 employees) following behind. DLA has a total of 9,332 Mission Critical Occupations. 

NH/OPIs make up .36 percent (34) of the MCOs. Eleven NH/OPIs are at the GS-12 level, with 

the majority in the GS-2001 (General Supply) series at the GS-12 level. NH/OPIs make up 1.15 

percent (57) of DLA’s FWS workforce, with 1.05 percent (45) in WG positions, 1.98 percent (6) 

in WL positions and 16.37% (57) in WS positions. When looking exclusively at the NH/OPI 

workforce, 38.51 encumber WG positions; 4.05 percent encumber WL positions, while 38.51 

percent are in WS positions. 

NH/OPIs made up .81 percent (25) of DLA’s FY2014 hires. However, they were only .25 

percent (one) of the external hires for MCOs. NH/OPIs made up .65 percent (31) of DLA’s total 

separations, and .40 percent (2) of DLAs MCO retirements. 

American Indians / Alaskan Native: American Indians/Alaskan Native (AI/AN) personnel 

make up .81 percent (193) of the DLA workforce. This is below their NCLF of 1.08 percent. 

AI/AN personnel make up .73 percent (137) of the DLA General Schedule workforce. The 

majority is in emerging leader positions .70 percent (55), but their largest participations rate is at 

the entry level 1.07% (33). Mid-level and senior level are next with both seeing a participation 

rate of .70 percent (43), with senior level at .33 percent (6) respectively. AI/AN personnel make 

up .54 percent (51) of the DLA mission critical occupations. The majority are in the GS-1102 

series, with the majority in that series at the GS-11 level (4 employees). Yet, the GS-2210-12 

series sees the most GS-12 level AI/AN employees (5 employees). AI/AN made up 1.13 percent 

(56) of DLA’s FWS workforce, with 1.17 percent (50) at the WG level; 1.32 percent (4) in WL 

positions, and .57 percent (2) in WS positions. AI/AN made up 1.04 percent (32) of the DLA’s 

general hires during FY2014, and .77 percent (3) of DLA’s MCO hires. However, they make up 

1.09 percent (52) of DLA’s general separations, and 1.02 percent (5) of DLA’s MCO 

retirements. 

Persons identifying as two or more races make up 1.82 percent (430) of DLA’s population. Of 

that total 1.11 percent (262) are men and .71 (168) are women. Persons identifying as two or 

more races make up 1.88 percent (354) of DLA’s General Schedule positions. The majority 140 

(1.79 percent) encumber emerging leader positions. However, the largest participation rate is at 

the mid-level 2.06 percent (126). The remaining two or more races workforce are at the first 

level (1.97 percent, 61 employees) and senior level (1.52 percent, 27 percent). Two or more 

races make up 1.93 percent (181) of the Agency’s MCOs, with the majority in the Contracting 

series (GS-1102), at the GS-11 level. Persons of two or more races make up 1.54 percent (76) of 
Defense Logistics Agency

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the DLA FWS positions, with 1.5 percent (65) in WG positions, 1.65 percent (5) in WL positions 

and 21.83 percent 76 in WS positions. Persons of two or more races make up 2.1 percent (65) of 

DLA’s overall new hires and 2.06 percent (8) of DLA’s external hires for MCOs. Two or more 

races made up 1.5 percent (72) of DLA’s separations. They made up 1.02 percent (5) of the 

DLA MCO retirements. 

WOMEN AT DLA: The DLA workforce is comprised of 38.72 percent of DLA’s workforce. 

GENERAL SCHEDULE WORKFORCE – 18,732

Women make up 44.28 percent (8,295 employees) of DLA’s GS workforce, with the majority at 

the GS-11 level. Women make up 45.62 percent (1,929) of DLA’s 4,228 GS-11 employees.

 White women 26.89 percent (5,038 employees)

 Black women make up 12.97 percent (2,430) of the DLA GS workforce; the majority of 

Black women are at the GS-11 level. Black women make up 16.72 percent (707) of 

DLA’s 4,228 GS-11 level employees, with emerging leaders following behind (578 

employees)

 Hispanic women make up 2.08 percent (391) of the DLA GS workforce; the majority of 

Hispanic women are at the GS-12 level. Black women make up 2.18 percent (109) of 

DLA’s GS-12 level employees. 

 Asian women make up 1.46 percent (275) of DLA’s GS workforce. The majority of 

Asian women are at the GS-12 level. Asian women make up 1.53 percent (76) of DLA’s 

GS-12 workforce. 

 Women identifying as having two or more races make up .80 percent 151) of DLA’s GS 

workforce. The majority of them are at the GS-12 and GS-11 levels. Two or more race 

9160

2786

455

320

168

46

5313

Women in the DLA Workforce - FY2014

Total Women

Black / African American

Hispanic

Asian

Two or more Races

Hawaiian / Pacific Islander

White
DLA Equal Employment Opportunity (DO)

401

women make up .72 (36) of the GS-12 population, with GS-11 following immediately 

behind at .82 percent (35).

 AI/AN women make up .34 percent 65) of DLA’s GS-workforce. The majority of 

AI/AN women are at the GS-12 level. AI/AN women make up .48 percent (24) of the 

GS-12 level employees. 

 NH/OPI women make up .21 percent (41) of DLA’s GS workforce. The majority of 

NH/OPI women are at both the GS09 and GS-12 levels. NH/OPI women make up .49 

percent of DLA’s GS-09 workforce, and .18 percent of the GS-12 level DLA workforce. 

MISSION CRITICAL OCCUPATIONS. Women make up 45.52 percent (4222) of DLA’s 

MCO workforce, with the following break-down:

 White women 26.02 percent (2,429 employees)

 Black women 14.34 percent (1,339 employees)

 Hispanic women 2.05 percent (192 employees)

 Asian women 1.50 percent (140 employees)

 Women in the remaining demographic groups make up less than one percent of DLA’s 

MCO workforce:

o Two or more races .87 percent (82 employees)

o AI/AN .26 percent (25 employees)

o NH or OPI .15 percent (14 employees)

FEDERAL WAGE SYSTEM. Women make up 18.71 percent (865) of DLA’s FWS positions. 

White women make up 7.60 percent 374) of the FWS positions, with Black women following 

closely behind at 7.17 percent (353 employees).

 The remaining demographic groups are:

o Hispanic women: 1.30 percent (64) of the FWS workforce.

o Asian women .91 percent (45)

o Two or more races .34 percent (17)

o AI/AN .14 percent (7)

o NH/OPI .10 percent (5).

WAGE GRADE. Women make up 17.86 percent (763) of WG positions, with the following 

breakdown:

 White women 7.77 percent (332)

 Black women 7.28 percent (311)

 Hispanic 1.33 percent (57)

 Asian .86 percent (37)

 Two or more races .35 percent (15)

 AI/AN .16 percent (7)

 NH/OPI .09 percent (4)
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WAGE LEADER. Women make up 16.50 percent (50) of DLA’s WL position. Black women 

make up the largest group of women in WL positions (7.26 percent, 22 employees).

 The remaining groups follow as such:

o White women 6.27 percent (19 percent)

o Asian women 1.65 percent (5)

o AI/AN women 1.32 percent (4)

o Hispanic women .99 percent (3)

o Two or more races .33 percent (1).

o There are no NH/OPI women in WL positions. 

DLA WAGE SUPERVISOR. Women make up 14.94 percent (52) of DLA’s WS positions. 

White women make up the majority of WS positions at 56.60 percent (197).

 Black women 29.02 percent (101)

 Two or more races 21.83 percent (76)

 NH/OPI 16.37 percent (57) 

 Hispanic women 7.47 percent (26)

 Asian women 2.87 percent (10)

 AI/AN .57 percent (2)

DLA HIRES (general). Women make up 29.99 percent (925) of DLA’s general hires

 White women 19.16 percent (591)

 Black women 7.46 percent (230)

 Asian women 1.20 percent (37)

 Hispanic women 1.10 percent (34)

 Two or more races .58 percent (18)

 AI/AN women .36 percent (11)

 NH/OPI women .13 percent (4)

DLA HIRES (MCOs) – 388

Women make up 29.99 percent (925) of DLA’s MCO hires.

 White women 22.16 percent (86)

 Black women 7.47 percent (29)

 Asian women 2.31 percent (9)

 Hispanic women 1.03 percent (4)

 Two or more races .51 percent (2)

 AI/AN women .25 percent (1)

 NH/OPI women 0

DLA SEPARATIONS – 4,774
DLA Equal Employment Opportunity (DO)

403

White women 23.04 percent (1100)

 Black women 9.26 percent (442)

 Hispanic women 1.65 percent (79)

 Asian women 1.15 percent (55)

 Two or more races .52 percent (25)

 AI/AN women .36 percent (17)

 NH/OPI women .19 percent (9)

DLA MCO RETIREMENTS – 489

White women 36.24 percent (170)

 Black women 12.57 percent (59)

 Hispanic women 1.70 percent (8)

 Asian women .85 percent (4)

 NH/OPI women 0

 Two or more races .63 percent (3)

 AI/AN women .42 percent (2)

ACTION PLAN: PLAN TO ACHIEVE MODEL EEO PROGRAM 

At DLA, all directorates are required to submit an Annual Operating Plan (AOP) that includes an 

overview of that components organization, structure, goals and activities for the upcoming year. 

AOP details must be aligned with DoD’s Strategic Plan 2012-2017 and show contribution to 

mission readiness while transforming and sustaining DLA’s as a national leader in diversity. 

AOP’s are approved by the agency’s senior leadership. 

The FY2015 AOP submitted by DLA Headquarters EEO and Diversity Office specifically 

identifies EEO mission and diversity goals, and includes corresponding actions that support the 

agency efforts to achieve a Model EEO Program, This plan further provides strategic direction 

and serves as the framework to ensure resources are targeted for long term success. 

In FY2015 the Headquarters EEO and Diversity Office will develop and implement programs 

and projects to support the advancement of the EEO mission and programs. Success will be 

evaluated by measuring qualitative and quantitative outcomes; accountability efforts by 

complying with current laws, regulations, and directives; feedback by internal and external 

stakeholders; and coordinating efforts to ensure continuing change. 
Defense Logistics Agency

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BLANK PAGE
DLA Public Affairs (DP)

405

Defense Logistics Agency

DLA Public Affairs (DP) 

Fiscal Year 2014 Annual Historical Report

1. Background

DLA Public Affairs (DP) supports DLA’s mission accomplishment and implementation of the 

Director’s guidance on “Big Ideas” through the management and execution of clear and 

consistent communications with DLA internal and external stakeholders and audiences. The 

desired long-term effects of DLA’s communications efforts – specifically the strategic 

communications goals – are focused on the following:

 Sustain and improve DLA’s reputation among key stakeholders 

 Grow awareness of DLA’s logistics capabilities among federal/state governments

 Promote the cohesion of the DLA workforce 

DLA Public Affairs contributes most effectively to the DLA mission and vision through the 

accomplishment of these strategic communications goals.

To best support the DLA mission, DLA Public Affairs provides guidance to the Director, Jstaffs, D-staffs and Field Activities. The office develops and administers proactive internal 

information, media relations and public outreach policies and programs that communicate DLA’s 

critical role as a combat support agency and the value we add to the Department of Defense, 

Combatant Commands, the military services, other Federal and regional agencies, and the 

American people.

DLA’s internal audience around, 24,000, is roughly the size of an Army division including its 

civilian support structure. Its external military/civilian audience is over three million, if including 

families that number may grow to six million. Outlying audiences encompass other Government 

agencies, the Defense industry and the American public as well as foreign nations. Because of 

the extent of DLA’s business dealings and the span of its commodity lines, DLA touches the 

commerce and economy segments of many of its external audiences. 

DLA Public Affairs is a full support communication office organized into five teams, each 

responsible for specific functions and capabilities at both the Enterprise and Headquarters 

Complex levels. 
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 Media Relations – engages with external media outlets to provide information about DLA 

activities, both proactively and in response to query.

 News and Web Operations – develops and communicates information about DLA 

activities to the DLA enterprise workforce and to the public via the DLA external website 

www.dla.mil 

 New Media, Plans and Analysis – creates and maintains communications plans and

strategies, interacts with stakeholders on social media platforms, and assesses the reach 

and impact of DLA communications

 Video Productions – Produces video news, feature stories and documentaries in support 

of the DLA mission, supply chains, special programs and services. 

 Director Support – Supports the DLA director’s internal/external public engagements 

through speeches, messages, talking points, pre-event coordination and post-event 

analysis. 

 Director: Douglas Ide / Joseph Yoswa

 Deputy Director: Jack Hooper / Patrick Mackin

 Administrative Specialist: Theresa Taylor

 News and Web Operations:

o Kathy Rhem, team lead 

o Jacob Boyer, senior editor

Director, DLA 

Public Affairs (1)

News and Web 

Operations(8)

Media 

Relations (3)

New Media, Plans 

and Analysis (3)

Video 

Productions (3)

Director's 

Support (3)

Deputy Director, 

DLA Public Affairs 

(1)

Administrative 

Specialist (1)

Total office strength: 23/23. Director’s Support includes 2 DLA Historians who fall under DP for administrative actions and Joint Secretariat for tasking.

2. Office Organization and Manning
DLA Public Affairs (DP)

407

o Sara Moore, writer 

o Beth Reece, writer 

o Amanda Neumann, writer

o MC1 Daniel Garas, writer

o Lally Laksberg, writer (temporary duty, National Guard Headquarters)

o Paul Crank, graphic designer

 Media Relations:

o Michelle McCaskill, team lead

o Mimi Schirmacher, media specialist

o LaTonya Johnson, media specialist

 New Media, Plans, and Analysis:

o Deborah Parker, team lead

o Christine Born, planner

o Mason Lowery, social media manager

o Samantha Nerove (Resigned in August after a six year medical absence from the 

team.)

 Video Production

o Nutan Chada, team lead

o Reid Bailey, producer

o Willie Cooper, technician

o Andrea Johnson, video asset analyst, contractor

 Director Support Team

o Jenny Lovett, speechwriter 

o Harold Raugh, historian

o Christine Reilly, historian

DP experienced a leadership change in Fiscal Year 2014 (FY 14.) Both the director and deputy 

director left within a three month period and were replaced by new personnel. The former 

director and deputy held those positions since 2008.

3. DLA Public Affairs Team Activities, Fiscal Year 2014

 Media

The media team distributed 13 news releases to various media outlets. The team increased use of 

PR Newswire to capture a wider audience of print, web, radio and television news media; 

releases were also sent directly to selected defense media news outlets. Topics of interest this 

fiscal year included: DLA utilizing commercial packing to save time and money; DLA 

exceeding small business goals; DLA using reverse auctions to save billions in taxpayer dollars; 
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DLA providing holiday meals and Super Bowl refreshments to deployed troops; and DLA 

ending logistics support for the State Dept. in Iraq. 

The media team facilitated 10 interviews, many of them with the Director. Examples include: 

 VADM Harnitchek was interviewed by a correspondent with the Al Jazeera America 

television program "Fault Lines" for a 30-minute piece on the 1033/LESO program.

 VADM Harnitchek met with the Defense Writers Group and addressed the following 

topics: DLA’s recently completed mission in Iraq supporting the State Dept.; the 

disposition mission in Afghanistan; “white goods” sales of excess commercial equipment 

to begin soon; the future of DLA as the war winds down in Afghanistan; right-sizing 

inventory and infrastructure; what DLA is doing to drive down operations and materiel 

costs; the agreement with Boeing regarding reimbursement for overpayment of spare 

parts; and what we’re doing to reduce the time it takes to award contracts. Media in 

attendance were: Air Force Magazine; American Forces Press Service; Breaking 

Defense; Aviation Week; Bloomberg News; Congressional Quarterly; Defense Daily; 

Inside the Pentagon; Freelance Defense Writer – Otto Kreisher; Inside the Pentagon; 

Jane’s Defense Weekly; National Defense; Politico; and U.S. News & World Report.

 VADM Harnitchek was interviewed by reporter Scott Maucione with Inside the Pentagon 

and discussed DLA's efforts to reduce the time to award contracts; Big Ideas; successes 

in reducing inventory and infrastructure; white goods sales in Afghanistan; sequestration; 

and Captains of Industry meetings which resulted in suggestions for improved 

performance and cost savings.

 VADM Harnitchek was interviewed by Vago Muradian for his Sunday morning Defense 

News television program. They discussed logistics lessons learned from Iraq, 

Afghanistan, hurricane Sandy; the importance of industry's role in logistics support; 

DLA's role in the drawdown in Afghanistan; and what can we do to ensure folks have the 

right amount of stuff but not too much.

 Reporter Sydney Freedberg with Breaking Defense interviewed Christine Metz, J-344, 

regarding DLA’s new anti-counterfeiting program and had some follow-up questions 

regarding costs for the following programs: the 18-month R&D project with Applied 

DNA; the ongoing DNA marking of microcircuits; the new RIF program; and a cost 

estimate for the in-house DNA marking of microcircuits.
DLA Public Affairs (DP)

409

The media team experienced a significant increase in queries in FY 2014, answering 431.* The 

vast majority of these dealt with the 1033/Law Enforcement Support Office (LESO) program 

from a myriad of national, international, and local television, radio and print outlets. 

The flood of queries began after the riots in Ferguson, Mo. – which occurred as a result of the 

Michael Brown shooting on August 9, 2014 – and the subsequent publication of a USA Today 

opinion piece on August 14, which blamed the rioting on the purported “militarization” of 

American law enforcement, stating specifically, “Pentagon fueled Ferguson Confrontation” and 

referencing the 1033 program as the driving force of that “militarization.” 

Non-stop queries were received for eight weeks, finally tapering down to a more reasonable level 

in mid-October 2014. 

The team’s other queries dealt with: DLA’s efforts to prevent counterfeit parts from entering the 

supply chain; a DoD IG finding that DLA overpaid Boeing for $13 million for spare parts; the 

sale of “white goods” in Afghanistan to local vendors; a DoD IG report stating that DLA Land & 

Maritime wasted $23 million buying HMMWV parts; purchasing fuel from Russia for use by 

military forces deployed to Afghanistan; a DOD IG report finding that DLA overpaid Bell 

Helicopter $9 million for spare parts; and the status of DLA’s fuel contracts with BP. 

*For the purposes of this report, queries were entered into the media query database by outlet only once so this number does 

not reflect the multitude of follow-up 1033/LESO queries received from the media.

 News and Web Operations

The News and Web Operations Team moved forward on its FY 14 initiatives, while continuing 

to produce a variety of content for the agency’s internal and external websites, DLA Today and 

DLA.mil respectively, and Loglines, the agency’s bimonthly magazine.

Formal and on-the-job (OJT) training for operation of both the internal and external websites 

continued, with all team members completing the required training. Challenges remain in 

obtaining the access that allows team members to post due to unclear processes within J6, but all 

team members continue to training to ensure posting capabilities are available at all times. Forty 

percent of the team’s members received refresher training on posting policies and procedures, 

and the DP director and deputy director both trained in Operations Security so they could operate 

the sites if required.

Work on the DLA Public Affairs Writing Stylebook continues, but remains behind due to 

personnel challenges. A one-page style sheet was developed, and in future will serve as the basis 

for the stylebook. Socialization efforts with PLFA communicators were put on hold until the 

writing stylebook is fleshed out.

The digital enhancement of Loglines magazine remains behind as the team continues to deal with 

personnel hurdles, but developments in DLA’s web platform may move this metric closer in the 

near future.

Also during FY 14, the team produced 251 products, including stories for both websites and 

articles for Loglines. This was despite one team member being detailed to the Director’s Support 
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Fiscal Year 2014 Annual Historical Report

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Team for nearly four months cumulatively. Additionally, the team supported higher-than-normal 

operational tempo throughout a snowy winter, ensuring websites and other communications 

vehicles were updated with closures and delays at the McNamara Headquarters Complex. 

As FY 14 concluded, the team chief departed for a position in DLA Human Resources, leaving 

the team under the guidance of its senior editor. The new team chief is expected to start 

November 30, 2014. 

 New Media, Plans and Analysis

In FY 2014 the DLA Social Media program continued to expand. Followers increased and two 

new applications, Thunderclap and Storify, were introduced. Inquiries and submissions for 

directorate and primary level field activity social media platforms continue, but few meet the 

criteria laid out in DLA Instruction 8550.01, Social Media, dated May 2013. Two new blog 

pages were accepted into the program, the DLA Acquisition Blog and the DLA Energy Blog.

The year saw the maturation of the DLA Big Ideas website as it became the primary venue for 

“big” idea submissions from the workforce. The first ever “suggestions for agency 

improvements” website was an outgrowth of Vice Adm. Harnitchek’s Five Big Ideas initiative. 

The site allows each submission visibility and equal assessment, with each proposal vetted and 

directed to the correct organizations for evaluation.

The Director’s blog, administered and moderated by the team, grew in popularity and remained a 

much sought form of communication to the DLA workforce. Begun in 2011, in FY 14 the blog 

hosted more than 60 senior leader posts. The team manages the platform’s editorial calendar for 

DLA senior staff. The calendar is scheduled four to six months in advance with major topics on 

policy changes, logistics operations and new initiatives, to name a few areas. 

The Ask a Leader site increased in both readership and participation, handling five to seven 

questions and comments daily. It is the preferred source for DLA employees to interact with 

senior leaders to get answers and comments on policies, processes and issues. Improvements and 

updates included the ability to create unanswered question reports and the introduction of 

notification emails for edited comments and answers.

Nine new communication plans, two plan updates and coordination on two OSD plans where 

DLA served as a major part of plan execution were completed in FY 14. Organizations faced 

with a major event or initiative now routinely come to the team for assistance in creating 

communication plans and products to promote their event or program. Additionally, the team 

reviewed, commented and approved 110 DLA instructions, directorate type memorandums and 

other policy documents.

Also in FY 14, the New Media, Plans and Analysis team continued to improve the DLA Public 

Affairs Collaborative Workspace. Created in 2011, the eWorkplace site continues to grow and 

evolve with each SharePoint upgrade. Currently, the site houses briefings, plans, documents, 

policies, photographs, graphics and numerous files for sharing across the Enterprise. The site 

allows public affairs professionals to share ideas and comment on important documents, all with 

the intent to create cohesion and synergy among the Agency public affairs staffs.
DLA Public Affairs (DP)

411

To increase synergy and further overall directorate and Enterprise performance, two revised 

document formats were introduced this fiscal year. The structure of the DLA Public Affairs 

Annual Operating Plan (AOP) was modified to ties AOP goals directly to budget and 

performance, allowing leadership to track functional areas precisely, while providing more 

responsive and meaningful metrics. The organization of the Agency’s public affairs guidance 

(PAG) template was adapted to ensure essential information is provided for each guidance 

document. This simplified layout was adopted across Agency public affairs offices, giving each 

set of PAG a degree of uniformity that allows for quick review and understanding. Additionally, 

the new format is expected to increase cohesion and interaction.

DLA Social Media platforms flourished during the fiscal year; from October 2013 to September 

2014 the following growth was charted:

o Facebook

 Increased audience size 76 percent, from 11,946 to 21,039

 Increased average total post reach 59 percent, from 2,900 to 4,607

 Increased average post engagement (likes, comments and shares) 72 

percent, from 112 to 193

o Twitter

 Increased audience size 42 percent from 3,023 to 4,296

o YouTube

 Increased new video views 79 percent, from 8,708 to 15,545 (37,191 total 

views)

 Increased new subscribers 65 percent, from 51 to 84 (218 total 

subscribers)

 Video Production

In Fiscal 2014 the video team lead was detailed to the Defense Department Office of Economic 

Adjustment from July 2013 to July 2014, leaving the team with two government employees, one 

full-time contractor and one vacant position. The absence of the team lead resulted in a decrease 

in the number of products produced by the team in FY 2014.

During the year, the team broadcast and/or recorded 57 events. Examples of live events include 

the annual Hall of Fame, Director’s Calls, J-code or other DLA organization town halls, Audit 

Readiness road shows, and training classes. 

Broadcast or recorded events require coordination with J6 Audiovisual, all products and 

broadcasts must be Section 508 compliant. When appropriate, the team works with the DP 

Internal News and Web Operations Lead to make any broadcast or recording and subsequent 

links available to compliment news stories or serve as reference material for web products.

Production of video products requires a mixed team of professionals, both civilian and contract: 

video producer, video crew, graphic artist, audio mix technician, video editor, and a technician to 
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Fiscal Year 2014 Annual Historical Report

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caption video and create the video links for use on DLA Today and DLA.mil web pages. The 

team also uploads appropriate videos to the DLA YouTube site. In Fiscal 2014 three productions 

and five messages were taped. They were:

o Why Buy Green - focuses on the mandate for federal supply personnel to buy 

green products. The video highlights four short stories that illustrate a 

different successful “green” initiative from the Army, Navy, Air Force, and 

Marines.

o Hearing Awareness: A Sound Idea – takes a documentary approach and uses a 

variety of military and civilian interviewees to talk about their hearing loss 

and the importance of using hearing protection. Footage of the interviews is 

woven with graphics and video that help bring the stories to life.

o DLA Troop Support Pacific – the corporate video for DLA Troop Support 

Pacific to use to educate customers about their mission.

o J1 Welcome Video – on-camera messages from DLA Director Navy Vice 

Adm. Mark Harnitchek and Director of DLA Human Resources Brad Bunn. 

The video is used for new employee orientations.

o Vice Adm. Harnitchek, Audit Readiness message.

o Vice Adm. Harnitchek, Culture Survey message/

o Brig. Gen. Giovanni Tuck, EEO message.

o DLA Vice Director Ted Case, Audit Readiness message

 Director’s Support Team

In FY 2014 Director’s Support continued its primary mission of providing speaking and 

appearance support to the DLA Director. During the year the team again experienced a 100% 

turnover of personnel which affected the team’s ability to accomplish the full spectrum of its 

mission. However, Director’s Support still met FY 2014 strategic and operational goals at the 

successful level. The Director is satisfied with the performance of this most committed and 

effective team. 

Major achievements of the team included development of an engagement report framework that 

provides insight into the depth, breadth and Director’s preference on speaking engagements and 

appearances. The report includes audience demographics and feedback as well as media 

coverage, if applicable. Using this format, the team was able to improve coordination of media 

engagement, internal news coverage, social media coverage and multimedia support. 
DLA Public Affairs (DP)

413

The team also increased use of social media at live events to amplify the Director’s primary 

messages on DLA and Big Ideas. In collaboration with New Media, Plans and Analysis, the team 

has a fluid Twitter and Facebook posting schedule that allows communication of the Director’s 

thoughts to be broadcast in near real-time and to a much wider audience, both inside and outside, 

the Defense Department. 

Events of particular significance in FY 14 include: 

 GSA Agreement signing, February 5

 Meeting with the Latvian Embassy, April 29

 AUSA Institute of Land Warfare Symposium, May 20

 Logistics Leaders Forum, May 22

 COLD Conference, September 

In total, Director’s Support produced forty sets of event remarks, ten PowerPoint presentations 

and three news stories during the fiscal year.

The chart below provides more detailed event product information:

Events (Quarterly) Products

Jan - Mar 2014 Messages PPTs BG'ers Stories IPR Social 

Media

Dcall

17 JAN MLK Day Message 1

31 JAN Heimbaugh Retirement 1

Loglines 1

5 FEB GSA Ceremony 1 1

11 FEB Audit Readiness Video 1

7 MAR Mahan Retirement 1 1

14 MAR Mueck Retirement 1 1

21 MAR Kachinski Retirement 1 1

25 MAR NCTO 1 1 1 1

Women's History Month - Director 1

Women's History Month - COS 1 1 1

30 MAR Dowd Retirement 1 1
Defense Logistics Agency

Fiscal Year 2014 Annual Historical Report

414

Totals: 11 2 2 2 5 0 0 0

Apr - Jun 2014 TPs/ 

Remarks PPTs BG'ers Stories IPR Social Media

Dcall Blog

1 APR Hobby Retirement 1 1

9 APR Annual Legal Conference 1 1 1

14 APR NDIA Log Forum 1 1 1

14 APR NDIA Log Keynote 1

17 APR Culture Survey 1

29 APR Latvia Embassy Meeting 1

7 MAY AAFA GCC Meeting 1 1 1

9 MAY Kiefer Retirement 1 1

14 MAY EMERGE Kick Off 1 1 1

20 MAY AUSA ILW Symposium 1 1 1 1

22 MAY Arnold Retirement 1 1

22 MAY Hawaii Log Leaders Forum 1 1

28 MAY Director's Call 1 1 1 1

29 MAY DLA Distribution CoC 1 1 1

3 JUN Audit Readiness Video 1

9 JUN Army Birthday 1

12 JUN Miyares Retirement 1 1

16 JUN SES Induction 1 1

Totals: 

17 3 8 0 12 0 0 0
DLA Public Affairs (DP)

415

As DLA Public Affairs moves into execution for Fiscal Year 2015, the directorate anticipates 

that careful planning, prudent resource expenditure, and the introduction of new strategies will 

yield greater results in the coming year.

TPs/ 

Remarks PPTs BG'ers Stories IPR Social Media

Dcall Blog

Jul-Sep 2014

1 JUL Independence Day Message 1

23 JUL DLA L/M Relinquishment of 

Responsibility 1 1 1 1

24 JUL DLA Energy Assumption of 

Command 1 1 1 1

31 JUL Hall of Fame 1 1 1 3

4 AUG EEO Leaders Summit 2 1 1

AUG Women's Equality Day 1 1

SEP Labor Day Message 1

SEP 9-11 Commemoration Message 1

SEP COLD Conference 1 1

16 SEP AFA Symposium 1 1 1 1 1 1

3 SEP Director's Call 1 1 1 1

Totals: 12 5 6 1 10 1 0 0