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Defense Logistics Agency Senior Leader Talking Points

as of October 2023 

 

DLA’s Value-add to the DoD 

• Established in 1961 out of reform initiatives to eliminate duplication of common item support 

• Economies of scale by buying large quantities of common commodities, reducing taxpayer costs 

• Continuing to reduce overhead costs to military customers

• Warfighting relevance – forward located regional commands provide logistics planning/customer support for the 

combatant commands 

• Deployable logistics command/control and distribution centers on alert for wartime and natural 

disaster/humanitarian crisis response 

• DLA’s commitment to modernizing its distribution network and focus on digital business transformation

investments highlight the agency’s continued efforts to become more efficient and effective world class leaders in 

supply chain logistics

o Major components of this investment include the new Warehouse Management System to ensure DLA 

Distribution Centers achieve and maintain modern state-of-the-art capabilities and replacing the legacy 

Federal Logistics Information System cataloging system with a modern and sustainable platform 

Warfighter Readiness 

• DLA’s number one priority is Warfighter readiness – “Warfighter Always” 

• DLA ensures the Warfighter has the parts on-hand to keep weapon systems operational, as a key component of 

readiness for the military services 

Support to Hurricane/Disaster Relief Operations 

• DLA support is vital to disaster relief efforts across the U.S. and to our allies overseas 

• DLA supports “all hazards” (hurricane, earthquake, flood, etc.) relief efforts every year with supplies, such as fuel 

and generators, support from deployable distribution teams and staffing support at national emergency response 

operations centers

• Quick response disaster/humanitarian support is possible because of agreements/liaison DLA has with FEMA, U.S. 

Northern Command, other combatant commands, the Dept. of State, the U.S. Agency for International 

Development and our industry partners 

DLA Financial Audit 

• Obtaining a “clean” audit opinion on financial statements for DLA Working Capital Fund, General Funds, and 

Transaction Fund activities is a top DLA priority 

• The audit, resulting findings, and subsequent corrective actions validate efficient and effective processes while 

ensuring we focus limited resources on where we are most vulnerable or inefficient 

• We will keep this up every year. This is how we will build a mechanism for sustaining improvements, resolving 

material weaknesses and strengthening internal controls around DLA's operations 

Law Enforcement Support Office (LESO)/1033 Program 

• In the National Defense Authorization Act for fiscal years 1990 and 1991, Congress authorized the transfer of 

excess DoD property to federal, state and local law enforcement agencies 

• Through subsequent revisions, the NDAA for fiscal year 1997 established the Law Enforcement Support Office 

(LESO/1033) Program, which DLA administers for DoD 

• Congress’ intent with the program is to enhance public safety and improve homeland security by leveraging 

taxpayer investments in defense technology and equipment 
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• Law enforcement agency participation in the LESO/1033 program is purely voluntary. DLA makes excess property 

available to interested federal and eligible state LEAs, and requires property accountability and other compliance 

for program participation via a signed Memorandum of Agreement 

• Property covers the gamut of items used by America’s military – computers and office supplies, tools and rescue 

equipment, vehicles, rifles, and other small arms. 

DLA Industrial Base 

• DLA depends upon the DIB to ensure the readiness of the Nation to carry out the National Defense Strategy 

• As the Nation’s Combat Logistics Support Agency DLA is in a unique position to assess the health of the DIB across 

its eight supply chains 

• The past several years has seen a combination of COVID, supply chain disruptions and inflation demands placed 

upon those supply chains, each in a different posture with respect to commerciality, health, structure and relative 

size in their respective industries so that there is no "one-size fits all" remedy to address those demands

• DLA works with several stakeholders - the DIB, the Services, OSD, Congress, and other federal agencies and strives 

to balance the requirements and demands of all while it meets its core mission of support to the warfighter 

Industry Engagement 

• DLA maintains a robust Industry Engagement Plan that articulates the agency’s priorities and objectives to its 

industry partners on behalf of military customers 

• Goal is stronger industry relationships to produce cost effective and innovative solutions that support Warfighter 

readiness 

• In a typical fiscal year, DLA contracts with approximately 9,000 suppliers, 2,000 new small businesses, and has 

about 21 strategic supply alliances and 43 supply chain alliances 

Small Business Programs 

• DLA maximizes acquisition opportunities for small businesses to achieve socioeconomic policy goals for: servicedisabled veteran-owned small business; HUBZone small business; small-disadvantaged business; women-owned 

small business. 

• DLA meets or exceeds its DoD assigned small business prime contracting goal annually 

• DLA’s success partnering with American small businesses reached new heights when it was named Agency of the 

Year at the National Small Business Conference on Feb. 15, 2022 

Red Hill Fuel Storage Facility 

• Following Secretary Austin’s direction, the DoD will safely defuel and close the Red Hill fuel storage facility in 

Oahu, Hawaii. The Red Hill facility will be defueled in compliance with environmental safeguards and in accordance 

with applicable federal, state, and local regulations

• Working closely with the Navy, DLA will reposition fuel stored at Red Hill using available capacity primarily offisland as well as on-island storage at a contractor-owned/contractor-operated facility. This plan mitigates additional 

risk to mission by utilizing well-established fuel movement procedures

• Fuel removed from Red Hill will be transferred by tanker ship to other fuel storage facilities within the DoD fuel 

supply chain. Fuel may be relocated to multiple locations across the Indo-Pacific region. 

• Defueling the Red Hill Bulk Fuel Storage Facility is set to begin on October 16, 2023, and expected to continue until 

January 2024. 

Bulk Petroleum Management/Procurements 

• Fiscal Year 2022 National Defense Authorization Act assigned USTRANSCOM as the single manager responsible for 

global bulk fuel management and delivery
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• DLA Energy will continue to execute its mission as Integrated Materiel Management (IMM) responsibility for bulk 

petroleum. This includes providing procurement, transportation, storage, distribution, ownership, accountability, 

budgeting, quality assurance and surveillance; and infrastructure sustainment, restoration, and modernization

• DLA Energy provides DoD and other government agencies with effective and efficient contract support for bulk 

petroleum – procuring over 3 billion U.S. gallons annually 

• DLA ensures the Warfighter has the fuel needed to keep weapon systems operational around the world and 

quality control specialists help ensure the fuel meets all recommended specifications 

• OSD Comptroller sets the DLA composite standard prices annually as part of the President’s Budget process

Carbon Pollution-Free Electricity 

• On Dec. 8, 2021, President Biden signed Executive Order (EO) 14057, “Catalyzing Clean Energy Industries and Jobs 

Through Federal Sustainability,” which sets the goal of the federal government sourcing 100 percent carbon 

pollution-free electricity (CFE) by 2030. 

• In response to EO 14057, the Department is piloting new CFE procurement approaches in both competitive retail 

choice markets and vertically integrated utility markets. For these CFE pilot procurements, Undersecretary of 

Defense (A&S) HON William LaPlante, directed DLA Energy to serve as the procurement agent for the aggregated 

Department of Defense requirement. 

• Achieving the CFE goal will require the Department to change how it procures electricity, including expanding the 

aggregation of electricity demand across regions, military departments, and defense agencies. 

• The procurement of CFE is currently expected to be integrated into existing electricity procurements in a phased 

approach over the course of several years, through both the transition of existing utility and retail supply contracts, 

new power generation procurements, and through performance contracts and real property assets for on-site CFE 

development. 

• On Dec 15-16, 2022, DLA Energy issued solicitations for the purchase of CFE to support DOD installations (or 

portions of installations) and federal agencies in two key regions of the United States, the Carolinas and Texas. 

• Supplier responses to the solicited electricity requirements, to include CFE quantities, pricing, availability, and 

other factors will be evaluated and negotiated. Award decisions are expected in late 2023 – early 2024. 

Strategic Materials 

• The National Defense Stockpile is a reserve of strategic and critical materials, established under the Strategic and 

Critical Materials Stockpiling Act, needed to support military weapon systems in a national emergency and to 

reconstitute military capabilities lost in a conflict 

• DLA Strategic Materials is the DoD organization responsible for managing the NDS 

DLA Cyber Security Posture 

• DLA operates a comprehensive Cyber Security Program to protect the agency’s cyberspace operating 

environment. The agency’s cyberspace ecosystem spans its workforce, and our customer and supplier bases

• The Cyber Security Program provides mission assurance for DLA’s logistics operations; defends the agency’s 

mission critical information environment; and proactively deters and responds to cyber-related threats

• DLA is laser-focused on the important role of protecting our network and systems against cyber threats. We 

maintain a persistent state of cyber situational awareness and preparedness, which is crucial to assuring our 

mission and attaining operational resilience in our contested cyberspace 

• DLA also works closely with our many partners to manage Global Supply Chain Risk within our diverse industrial 

base

Digital-Business Transformation (D-BX)

• Through its Digital-Business Transformation, or D-BX, the Defense Logistics Agency is leveraging emerging 
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technologies in cloud-based computing, customer service and supply chain modernization to transform its business 

processes. 

• D-BX will accelerate DLA’s ability to incorporate technology advancements, meet changing user needs and 

mitigate risk. It is one of three critical capabilities outlined in DLA’s Strategic Plan, fundamental to the agency’s 

transformation.

• DLA is focusing our IT and digital capability investments on key areas that will enable us to improve productivity, 

collaboration, transparency, speed and accuracy for our employees, customers and suppliers. DLA will work 

internally and with our partners to ensure the agency’s network, systems and data are protected from emerging 

and complex cyber threats.

• D-BX will enable DLA employees to better anticipate and meet warfighters’ future needs through new solutions, 

products and technologies that also respond well to the broader IT reform initiatives across the government.

Disposal of PFAS/AFFF 

• DLA is part of a nation-wide discussion to address Per- and poly-fluoroalkyl substances (PFAS) and Aqueous Film 

Forming Foam (AFFF) water contamination, which impacts some of DoD’s military installations

• DLA disposes of DoD PFAS-containing materials and AFFF for the military services, and works with regulatory 

agencies and communities to share information in an open and transparent manner

• The military services will start transitioning to a PFAS-free firefighting agent during calendar year 2023, which will 

generate large quantities of PFAS-containing materials which will require DLA disposal support

• DoD is committed to educating the public, Congress, and other stakeholders about the actions DoD is taking to 

address the PFAS through community engagements, quarterly outreach events, media roundtables, technical 

presentations, reports and briefings