Fact Book FY08

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TABLE OF CONTENTS

Foreword ........................................................................1DESC Corporate PostureHistory............................................................................ 2Vision & Mission ........................................................... 3Director’s Update for FY08 ........................................... 4Director’s Plan for FY09................................................ 6Organization Structure ................................................... 7Worldwide Locations ..................................................... 8Director’s Biography...................................................... 9Executive Director’s Biography.................................... 10Deputy Director’s Biography ........................................ 11Director of Operations’ Biography ............................... 12Organization Point of Contacts ..................................... 13Energy Summary........................................................... 15Civilian & Military End Strengths ................................ 16Petroleum, Natural Gas & Aerospace EnergyStatement of Financial Conditions ................................ 17Statement of Sales ......................................................... 18Net Sales by Category ................................................... 19Product Cost .................................................................. 20Purchases by Category .................................................. 21Worldwide Petroleum Fuel Ending Inventory .............. 22

Distribution DataNumber of Defense Fuel Support Points .......Obligations for Storage/Distribution Services Sustainment, Restoration & Modernization PFunding FY08 Commitments & Obligations .FY08 Worldwide Bulk Product TransportatioTransportation Expense ..................................Demurrage Collected .....................................DESC Business VenturesDESC Optimization Projects .........................Energy Savings Performance Contract AwardUtility Privatization Support ..........................Utility Privatization Awards ...........................Small Business Program Achievements .........International AgreementsFacility/Service Agreements ..........................Agreement Snapshot ......................................
TABLE OF CONTENTS

DESC Contract StatisticsPetroleum Contract Introduction ................................... 42Contract Award Data ..................................................... 43Top Ten Contributing Petroleum Suppliers................... 44Top Ten Contributing Installation Energy Suppliers .... 45Environmental Contracts .............................................. 46Testing Contracts .......................................................... 47Fuel ProcurementInto-Plane Contracts ...................................................... 48Ships Bunkers Contracts FY08 ..................................... 49Alongside Aircraft Refueling ........................................ 50Posts, Camps & Stations Contracts ............................... 51DESC Installation Energy ProgramsCoal Program ................................................................ 52Natural Gas Program ..................................................... 53Electricity Program ....................................................... 55Renewable Energy Program.......................................... 56Fuel Card ProgramsU.S. Government AIR Card® ........................................ 57

DOD Fleet Card ............................................................ 58SEA Card® ..................................................................... 59

Quality/Technical SupportPetroleum Quality Information System ........Research & Development Product Support ...Alternative Energy Program ..........................Cataloging & Standardization Functions .......Quality Assurance/Surveillance Program ......DOD Standard Practice (MIL-STD-3004B) ..7UDLQLQJ	&HUWL¿FDWLRQ3URJUDP'(6&5Aerospace Energy Posture$HURVSDFH(QHUJ\&XVWRPHU3UR¿OH ..............Contracting Overview ....................................Product Line Overview ..................................Major Programs Supported ............................Hazardous Material Shipments ......................Solutions for Today’s Energy Challenges ......Year in ReviewFY08 Highlights/Accomplishments...............Acronyms ......................................................
Foreword

The Defense Energy Support Center Fact Book cont

information regarding the Center’s business operations. 

Fact Book reflects the Center’s operational status at the en

fiscal 2008 (FY08) unless otherwise indicated. The in

is for the use of this publication as a source for gen

information purposes only. The Fact Book can also found online on the DESC Web site at www.desc.

mil in the Publications section of the web page.
History............................................................................................................................ 2

Vision & Mission ........................................................................................................... 3Director’s Update for FY08 ........................................................................................... 4Director’s Plan for FY09................................................................................................ 6Organization Structure ................................................................................................... 7Worldwide Locations ..................................................................................................... 8Director’s Biography...................................................................................................... 9Executive Director’s Biography.................................................................................... 10Deputy Director’s Biography ........................................................................................ 11Director of Operations’ Biography ............................................................................... 12Organization Point of Contacts ..................................................................................... 13Energy Summary........................................................................................................... 15Civilian & Military End Strengths ................................................................................ 16

DESC CORPORATE POSTURE
Defense Energy Support Center History

The origin of the Defense Energy Support Center (DESC) dates back to World War II. Originally it was an entity of the Department of Interior as the Army-Navy Petroleum Board. Its mission was to administer the critical petroleum requirements during World War II. In 1945, it was transferred to the War Department and became the Joint Army-Navy Purchasing Agency.The Agency underwent several name changes, but its mission remained essentially the same until 1962. At that time, it became a part of the consolidated military supply organization, the Defense Supply Agency, now known as the Defense Logistics Agency (DLA). The Center was designated the Defense Fuel Supply Center (DFSC) in 1964 as a single entity to purchase and manage the Department of Defense’s petroleum products and coal.In 1973, DFSC progressed from a wholesale fuel central procurement activity to a more comprehensive logistics mission as the Integrated Material Manager (IMM) for the Department of Defense (DOD) petroleum requirements. Under Phase I, DFSC added management of the acquisition, storage, distribution, and sale of fuel with responsibility ending at the Service installation boundary. In 1991, Phase II began, which expanded DLA’s ownership of bulk petroleum products to include most bulk storage installations. This effort was divided into two parts, Phase IIA, which capitalized aviation fuel, and Phase IIB, which capitalized ground fuels. As a result of Phase II Capitalization, DLA owns all bulk SHWUROHXPSURGXFWVIURPWKHSRLQWRISXUFKDVHXQWLOLWV¿QDOSRLQWRILVVXHto aircraft, ships, and ground equipment. In 1990, the DFSC mission was expanded to include the supply and management of natural gas, as well as the basic petroleum and coal products. Under this program, natural gas requirements were consolidated and centrally procured with a mission to provide direct supply of natural gas to customers when determined more economical than using gas from a local distribution company.Feb. 11, 1998, marked the beginning of a new chapter in the Center’s history with a name change to DESC. With it came a new mission to build an energy program aimed at moving the DOD out of the 

management of energy infrastructure and into the energy products. The energy enterprise mission was Military Services with the privatization of utility relaand energy savings performance contracts to decreand energy demand.The initiative to deregulate electricity in Continen(CONUS) added still another mission to DESC. As DESC pursues and awards contracts for electricity seDOD and Federal Civilian Agency installations in thprocurements for natural gas.On Oct. 1, 2001, DESC assumed a new mission Force and now serves as the DOD’s IMM for space products and services and provides world-class supsolutions to not only DOD, but other Federal Agencontractors, and academia. The new mission encompstock numbers with each product supporting at leasWeapon System. The addition of this mission maservice provider of all energy and energy-related proOn Aug. 11, 2004, the Secretary of Defense designExecutive Agent for Bulk Petroleum. This authorito DESC on Nov. 1, 2004 with the responsibility tChain Management for all DOD Bulk Petroleum, RQLPSURYLQJ HI¿FLHQF\ DQG PLQLPL]LQJ GXSOLFDWLRwithin the supply chain.On Oct. 1, 2006, DESC became the DOD IMM for b%UHDWKLQJ 2[\JHQ VSHFL¿FDWLRQ 0,/35)1LWURJHQ VSHFL¿FDWLRQ$$%RWKZHUHSUH

by Defense Supply Center Richmond (DSCR).DESC, despite changes in organization structurPLVVLRQ FRQWLQXHV LWV EDVLF PLVVLRQ WR VXSSRUW WKmanage the energy sources of the future.
Vision & Mission

Vision

Our Customers’ First Choice for Energy Solutions

Mission

To provide the Department of Defense and other government agen

with comprehensive energy solutions in the most effective and econo

manner possible.
Director’s Update for FY08

In Fiscal Year (FY) 2008, the Defense Energy Support Center '(6&FRQWLQXHGLWVFRPPLWPHQWWRVXSSRUWWKHZDU¿JKWHUas the Department of Defense remained steadfast in the Global War on Terrorism, Operation Enduring Freedom, Operation Iraqi Freedom and other contingency operations worldwide, to include natural disasters and humanitarian missions. Our customer base continued to grow around the world to include QRWRQO\WKHZDU¿JKWHUEXWDOVRIRUHLJQJRYHUQPHQWVIHGHUDOcivilian organizations and authorized commercial entities. In FY08, DESC continued to actively manage petroleum and aerospace energy supply chains as well as electricity, coal and natural gas commodities to support our customers’ fuel and energy requirements. Additionally, in response to the increasing research and interest, DESC began to further expand its energy solutions to include alternative fuels, renewable energy, utilities privatization and other installation energy conservation efforts. These areas represent steps toward energy security, environmental stewardship and HI¿FLHQW HQHUJ\ XVH ± FRPPRQ JRDOV VKDUHG ZRUOGZLGHFY08 also saw success in programs and initiatives designed and developed to support fuel requirements worldwide. One such program was the DOD-SEA Card Order Management System (DoD-SCOMS®), which continued its successful expansion in revolutionizing the ships’ bunkers fuel ordering process. In FY08, 1,115 orders were successfully 

SURFHVVHG ZLWK IXHO SXUFKDVHV RI 0475 vessels are now enrolled in DoD-Ssince its pilot program commencement, ovvalued at $689M have seamlessly and suSURFHVVHG E\ ZDU¿JKWHU RUGHULQJ RI¿FHUV the program led to an August 2008 initiatSCOMS® Open Market (OM) pilot. The the system’s potential at non-contracted poa select group of vessels an opportunity to non-contract open market purchase bunker this FY, the pilot has led to DESC succes3 orders valued at $588,969 and shows $V D ¿HOG DFWLYLW\ RI WKH 'HIHQVH /R(DLA), our goals and objectives are aligned with DLA’s. DESC initiated and programs and business practices designeever-changing challenges ahead. These programs, which are detailed throughout thiour Business Systems Modernization-Eneinformation technology and transformatDESC also successfully embarked upon a to converge with the DLA Enterprise ResDSSOLFDWLRQ ± (QWHUSULVH %XVLQHVV 6\VWHPEnergy Convergence Program will reach capability in FY12 and result in the termina
Director’s Update for FY08 (cont.)

Throughout FY08, DESC prided itself in continuing partnerships with its customers and the energy industry by fostering and maintaining business alliances around the world. To better serve those customers, as well as to improve internal business practices, DESC engaged in numerous successful Lean Six Sigma (LSS) initiatives. LSS allows us to infuse a culture of continuous process improvement WKURXJKRXW '(6& HQKDQFLQJ HI¿FLHQF\ DQG HIIHFWLYHQHVVDESC’s mission to provide comprehensive energy solutions LQWKHPRVWHIIHFWLYHDQGHI¿FLHQWPDQQHUSRVVLEOHKDVEHHQ¿OOHGZLWKFKDOOHQJHVUDQJLQJIURPORJLVWLFDOWUDQVSRUWDWLRQchallenges and increased operations to new energy initiatives and expanding world support. Through all these challenges, the DESC workforce has remained committed to the execution of our mission and meeting the demands of our customers. 
DESC is dedicated to providing continuous energy support to 

WKHZDU¿JKWHUDQGZLOOVWULYHWRIXOO¿OOLWVPLVVLRQLQHYHU\ZD\possible. Along with current Commodity Business Unit’s (CBU) mission requirements, DESC will support and play an integral part in DLA strategies and initiatives. DESC’s continued support consists of the following:

x (QJDJLQJLQGLUHFWVXSSRUWRIWKHZDU¿JKWHUWKURXJK

planning, participating and partnering with Soldiers, Sailors, Airmen, Marines, and Coast Guard to increase readiness through numerous exercises.

x Partnering with the Federal Emergency Management 

Agency (FEMA) to provide emergency supplies of gasoline and diesel to National Logistics Staging Areas (NLSAs) in the event of natural disaster.

x Aggressively supporting the Energy Security Integrated 

3URGXFW7HDPDQG'2'¶VEDVLFJRDOWR¿QGZD\VWRachieve energy security through assured energy supply DQGHI¿FLHQF\

x Partnering with the services to explore the viability or 

advantages of using synthetic fuel in weapons platforms.

x Maintaining ongoing efforts supported by research and 

development funding to include: studying hydrogen as a defense fuel; developing a Class III Bulk Automatic ,GHQWL¿FDWLRQ7HFKQRORJ\$,7V\VWHPWRVXSSRUWDlogistics common operating picture; modernizing the petroleum secondary sales process; and studying JP-8 +100 additive.

x Maintaining the DESC’s Balanced Scorecard to ensure 

DESC is making appropriate progress on strategies and LQLWLDWLYHVLGHQWL¿HGLQWKH'/$6WUDWHJLF3ODQIRU)<FY13. http://www.dla.mil/library/StratPlanFeb2007.pdf

x (QVXULQJ'(6&¶V¿QDQFLDOVWDWHPHQWVDUH

internally to commercial audit standards anDQGUHÀHFWDWUXHSLFWXUHRI'(6&¶V¿QDQF

x Seeking out and continuing to implement s

supplier/vendor alliances whenever possib

x 6XSSRUWLQJWKH2I¿FHRIWKH6HFUHWDU\RI'

(OSD) to achieve its goal of privatizing oninfrastructure and continue providing suppuse of energy savings performance contracenergy services contracts, the efforts of the meet mandated energy reduction and renewusage goals.

x Working diligently on the DLA Energy Co

program with the systems integrator, DLADESC to accomplish business process reenas needed to take full advantage of the SAsolutions while ensuring continual mission 

x Organizing for success by decentralizing a

responsibilities of the Inventory Accountabmission from Headquarters to the Regions

x Exploring emerging DESC Alternative En

opportunities.

x &RQWLQXLQJWRLPSURYHWKHHI¿FLHQFLHVRI'

business processes through Lean Six Sigmvarious Rapid Improvement Events (RIE), Support Management (CSM), Voluntary PProgram (VPP), Plant, Property and Equip3URJUDPDQG$XWRPDWLF,GHQWL¿FDWLRQ7HF

Director’s Plan for FY09
DESC ORGANIZATION
DES

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ELMENDORF AFB, AK

PEA

SINGAPORE

DESC HQs

DESC AMERICAS

DESC AMERICAS STAFF AMERICAS EAST HOUSTON, TX

AMERICAS WEST SAN PEDRO, CA

FORT BELVOIR, VA

DESC AEROSPACE ENERGYSAN ANTONIO, TX

DESC MIDDLE EASTBAHRAIN

KUWAIT

TAMPA, FL

AFGHANISTAN

PAKISTAN

DESC MEDITERRANEAN

TURKEY

SPAIN

EUCOM

AFRICOM

NATO

DESC UNITED KINGDOM

DESC USAFE

DESC WORLDWIDE LOCATIONS

DESC USAREUR / DESC NAVEUR

DESC EUROPEKAISERSLAUTERN
Biography

Mr. Kim J Huntley

Director, Defense Energy Support Center

Following his appointment to the Senior Executive Service in 2006, Mr. Huntley accepted the position as Executive Director, Customer Operations and Readiness (J-31) for the DLA. In this position, he oversaw the mission to engage customers around the world, maximizing readiness and logistics combat power by leveraging an enterprise solution through customer operations, performance monitoring and program support. Prior to his current assignment, Mr. Huntley was the Deputy Commander for the Defense Supply Center 5LFKPRQG 9$ D ¿HOG DFWLYLW\ RI WKHDLA and the primary source of supply for nearly 1.2 million repair parts and operating supply items including military-unique items supporting over 13,000 major Mr. Huntley received his Bachelor of Arts in busineGolden Gate University in San Francisco, CA, and cstudies in economics at California State University His personal awards and achievements include thand Campaign medals, DOD Meritorious UniDLA Meritorious Civilian Service award for DesExceptional Civilian Service Award for OperatioGuard, NATO Award, Meritorious Service Awand community awards for Youth Sports Coac

Kim J Huntley is Director of the Defense Energy Support Center located at the Defense Logistics Agency Headquarters, Fort Belvoir, VA. As Director, he is responsible for providing the Department of Defense and other government agencies with comprehensive energy solutions and HQVXULQJFRQWLQXRXVHQHUJ\VXSSRUWWR$PHULFD¶VZDU¿JKWHUVZRUOGZLGHDESC’s mission specializes in contracting support and management of all petroleum-based fuels, additives and other energy products and services including jet fuels, distillates, missile fuels, chemicals, gases, gasoline, diesel fuels, heating fuels, natural gas, coal and electricity. DESC also manages utilities privatization and other installation energy conservation efforts. A native of Clinton, Iowa, Mr. Huntley enlisted in the U.S. Navy August 1972 where he was assigned to the USS Niagara Falls operating in the Tonkin Gulf and Da Nang Depot, Republic of Vietnam. After completing WKUHH ZHVWHUQ 3DFL¿F FUXLVHV DERDUG WKH 866 1LDJDUD )DOOV KH ZDVKRQRUDEO\ GLVFKDUJHG DV D QG &ODVV 3HWW\ 2I¿FHU LQ $XJXVW Shortly thereafter, Mr. Huntley began his civil service career as an accounting technician with the Defense Subsistence Region 3DFL¿F $ODPHGD &$  +LV FDUHHU VWHDGLO\ SURJUHVVHG WKURXJKassignments as lead supply clerk, inventory management specialist, VXSSO\ V\VWHPV DQDO\VW DQG DFFRXQWDEOH RI¿FHU  ,Q  KH ZDVselected as Supply Branch Chief and transferred to the Defense Subsistence Region Europe. In May 1992, Mr. Huntley became the Assistant Chief, Supply Division, and promoted to Chief a year later. He was reassigned as the Director of Logistics, Plans and Operations for DLA-Europe in 1995. In 1997, he became the Deputy Commander of DLA-Europe. Returning to DLA headquarters in January 2001, he assumed the duties as Chief, Director’s Staff Group. In November 2003, Mr. Huntley transferred to J-4 to be the Staff Director, Customer Support 2I¿FH ZKHUH KH ZDV UHVSRQVLEOH IRUWKH - 6HUYLFH7HDPV 1DWLRQDOand Customer Account Managers, Customer Support Representatives, International Programs, and Homeland Security/Non-DOD Programs. 
Biography

Mr. Patrick J. Dulin

Executive Director, Defense Energy Support Center

(Sel). Following graduation in June 1996, Col. Dulin reported to Camp Pendleton, CA, as the Commanding 2I¿FHU +HDGTXDUWHUV DQG 6XSSRUWBattalion. In June 1998, he reported IRU GXW\ DV 2SHUDWLRQV 2I¿FHU *3) of the 1st Marine Expeditionary 

Force, Camp Pendleton, CA. In July 1999, Col. Dulin transferred to the Marine Forces Reserve, New Orleans, LA, for duty as the Chief of Staff. In August 2001, he transferred to Marine Corps Systems Command, serving as a Program Manager. In December 2001, he assumed the duties of the Chief of Staff at the Marine Corps Systems Command. Col. Dulin reafter serving 30 years in the Marine Corps. He career in the federal government as a civilian for the Marine Corps and then with the Defense 

Mr. Patrick J. Dulin, a native of New York City, was inducted into the Senior Executive Service June 12, 2006. Mr. Dulin comes to the Defense Energy Support Center from his previous duties as the Director for DLA Enterprise Support. Mr. Dulin graduated from the U.S. Air Force Academy, Colorado Springs, CO, June 1973. Upon graduation, he entered the Marine Corps. His initial assignment was with the 2d Marine Division, Camp Lejeune, N.C., where he served in a variety of infantry billets. Following his transfer from Camp Lejeune in Oct. 1976, 1st Lt. Dulin reported WR WKH G 0DULQH 'LYLVLRQ RQ 2NLQDZD DV DQ 2SHUDWLRQV 2I¿FHUDQG DV ([HFXWLYH 2I¿FHU RI +HDGTXDUWHUV DQG 6HUYLFH &RPSDQ\ GBattalion, 4th Marines. In January 1978, Lt. Dulin reported to Hawaii DW+HDGTXDUWHUV)OHHW0DULQH)RUFHV3DFL¿FZKHUHKHVHUYHGDVRI¿FHULQFKDUJHRIWKH&RPPDQG&HQWHUDQGDVWKH)RUFH5HDGLQHVV2I¿FHUIn December 1980, Capt Dulin transferred to 1st Marine Brigade, at .DQHRKH+DZDLLVHUYLQJDVD5LÀH&RPSDQ\&RPPDQGHUDQGODWHUDVWKH$VVW2SHUDWLRQV2I¿FHU6$LQG%DWWDOLRQG0DULQHV,Q-DQXDU\1981, Capt. Dulin reported to the Naval Postgraduate School in Monterey, CA as a student in Electrical Engineering. Upon graduation, he reported to the Marine Corps Development Center in Quantico, VA, as an Acquisition 2I¿FHU LQ WKH &RPPDQG &RQWURO DQG &RPPXQLFDWLRQV 'LYLVLRQIn May 1987, Major Dulin was transferred to the 1st Marine Division in Camp Pendleton, CA, where he served as the Asst 'LYLVLRQ 7UDLQLQJ 2I¿FHU DQG DV WKH ([HFXWLYH 2I¿FHU 3URPRWHGto Lieutenant Colonel in July 1990, he assumed command of the Marine Corps Security Force Company, Kings Bay, GA. In May 1993, Lt. Col. Dulin was transferred to the Combined Forces Command, Korea, and served in the C/J-3 Operations Section. In June 1995, he reported to the Naval War College, Newport, R.I., as a Colonel 
Biography

Captain Dianne A. Archer

Deputy Director, Defense Energy Support Center

Director of Operation Support

Meritorious Service Medal, Navy CommendatService Achievement Medal, Navy Achievement command awards.

Captain Dianne A. Archer, a native of Evansville, IN, became Deputy Director, Defense Energy Support Center in April 2007. Capt. Archer graduated from the U.S. Naval Academy at Annapolis, MD, and was commissioned in 1984. She earned a Masters of Business Administration degree from the Ohio State University at Columbus, OH, in 1996. Capt. Archer’s sea duty tours include Food Service, Sales and 'LVEXUVLQJ2I¿FHURQERDUG866&DSH&RG$'PDNLQJWZRdeployments. She was Principal Assistant for Services, Logistics DQG$VVLVWDQW6XSSO\2I¿FHURI866.LWW\+DZN&9ZKHUHshe deployed to the Arabian Gulf and was forward deployed to <RNRVXND -DSDQ6KHZDVODWHUWKH2I¿FHULQ&KDUJH0LOLWDU\Department, USNS Niagara Falls (T-AFS 3), forward deployed to WKH:HVWHUQ3DFL¿F&DSW$UFKHULVDTXDOL¿HG6XUIDFH:DUIDUH6XSSO\&RUSV2I¿FHUDQG1DYDO$YLDWLRQ6XSSO\2I¿FHUShore duty tours include her most recent assignment as Commander, 'HIHQVH(QHUJ\6XSSRUW&HQWHU3DFL¿F2WKHUDVVLJQPHQWVLQFOXGH)XHO 2I¿FHU 1DY\ 6XSSRUW )DFLOLW\ 'LHJR *DUFLD0LGVKLSPHQ'LVEXUVLQJ2I¿FHU861DYDO$FDGHP\ -RLQW3HWUROHXP3ODQV2I¿FHUDQG([HFXWLYH$VVLVWDQWWRWKH'LUHFWRU RI/RJLVWLFVDQG6HFXULW\$VVLVWDQFH863DFL¿F&RPPDQG'LUHFWRU&XVWRPHUOperations Department and Industrial Support Division, Naval ,QYHQWRU\ &RQWURO 3RLQW 3KLODGHOSKLD DQG ([HFXWLYH 2I¿FHUFleet and Industrial Supply Center Pearl Harbor. Her awards include the Defense Meritorious Service Medal, Navy 
Biography

Colonel Mark A. Olinger

Director of Operations, Defense Energy Support Center

Colonel Mark A. Olinger, U.S. Army, is the Director of Operations, Security Strategy from the National Defense UnDefense Energy Support Center, Defense Logistics Agency. He has served in a number of command and staff positions in the United States, Panama, Republic of Korea, the Middle East and Germany. His combat service includes Company Commander in the 528th Support Battalion (Airborne) during Operation Earnest Well/Prime Chance in the Arabian Gulf, Deputy Director of /RJLVWLFV - 86 6SHFLDO 2SHUDWLRQV &RPPDQG ± 6RXWKJoint Special Operations Task Force during Operation Just &DXVHLQ 3DQDPD DV D 6XSSRUW 2SHUDWLRQV 2I¿FHULQWKH WKSupport Battalion (Airborne) during Operations Desert Shield and Desert Storm, during Operation Iraqi Freedom he served as the Commander 142d Corps Support Battalion, and later the Assistant Chief of Staff for Logistics (G-4) for the 1st Armored Division. His previous assignment was as Commander, Defense Energy Support Center-Middle East, and was responsible for providing comprehensive integrated joint bulk fuel support to USCENTCOM within a 27-country area of responsibility. Colonel Olinger’s military education includes the U.S. Army’s ,QIDQWU\2I¿FHU%DVLF&RXUVH86$UP\¶V4XDUWHUPDVWHU2I¿FHUAdvanced Course, U.S. Marine Corps Amphibious Warfare Course (non-resident), Operations Research Systems Analysis Military Applications Course, and the U.S. Army Command and General Staff College. His degrees include a Bachelor of Science in Business Administration from California State Polytechnic University at Pomona, CA, in 1983 and a Master of Science in National 
Defense Energy Support Center

Organization Point of Contacts

Director ................................................................................ (703) 767-9706Executive Director ............................................................... (703) 767-9700Deputy Director ................................................................... (703) 767-9700Executive Assistant .............................................................. (703) 767-9676Director, Operations ............................................................. (703) 767-93012I¿FHRI&RXQVHO ................................................................. (703) 767-5011 ,QWHUQDO5HYLHZ2I¿FH ......................................................... (703) 767-7736Director, Aerospace Energy ................................................. (210) 925-4455Director, Bulk Petroleum ..................................................... (703) 767-9360'LUHFWRU%XVLQHVV,QWHJUDWLRQ2I¿FH ................................... (703) 767-9675'LUHFWRU&HQWHU6HQLRU3URFXUHPHQW2I¿FH ......................... (703) 767-8505Director, Customer/Command Support ............................... (703) 767-2945Director, DES Energy .......................................................... (703) 767-9284Director, Direct Delivery Fuels ............................................ (703) 767-8504'LUHFWRU(QHUJ\&RQYHUJHQFH2I¿FH .................................. (703) 767-2946Director, Energy Enterprise ................................................. (703) 767-5168'LUHFWRU([HFXWLYH$JHQW2I¿FH .......................................... (703) 767-8662Director, Financial Operations ............................................. (703) 767-9484'LUHFWRU)XHO&DUG3URJUDP0DQDJHPHQW2I¿FH ............... (703) 767-8606Director, Installation Energy ................................................ (703) 767-8572'LUHFWRU0DQSRZHU7UDLQLQJ$QDO\VLV2I¿FH..................... (703) 767-9474Director, Quality/Technical Support .................................... (703) 767-8363&RPPDQG6HFXULW\2I¿FHU .................................................. (703) 767-6717Market Research .................................................................. (703) 767-8376Public Affairs ....................................................................... (703) 767-50426PDOO%XVLQHVV2I¿FH .......................................................... (703) 767-9465
 Defense Energy Support Center

Regional Offices

AMERICASDESC Americas ..........................................................(713) 718-3883 ext.101DESC Americas East ..................................................(713) 718-3883 ext.102DESC Americas West .............................................................. (310) 241-2801PACIFIC'(6&3DFL¿F'(6&0LGGOH3DFL¿FDESC Korea ...................................................................011-82-505-764-5147DESC Japan ...................................................................011-81-311-755-2671DESC Alaska ...................................................................(907) 552-3949/5777EUROPEDESC Europe .................................................................011-49-631-411-5350DESC Mediterranean .......................................................011-39-050-54-7085DESC United Kingdom .................................................011-44-1895-61-6011DESC NATO .......................................................................011-32-2724-3118DESC EUCOM ..............................................................011-49-711-680-8263DESC AFRICOM .........................................................011-49-711-729-2536DESC USAREUR .........................................................011-49-6221-57-6588DESC USAFE .............................................................011-49-6371-405-7962DESC NAVEUR .......................................................... .011-39-335-101-2931MIDDLE EASTDESC Bahrain .................................................................011-973-1785-4650DESC Germany ...........................................................011-49-631-3406-4280DESC Kuwait ..................................................................011-965-2-389-5648DESC Pakistan ..............................................................011-92-345-851-8022DESC Afghanistan ...........................................................011-93-799-021990
Energy Summary FY08

(U.S. Dollars in Millions)

Source: Financial Operations, DESC 
CIVILIAN MILITARY

ONBOARD ONBOARD

FY08 920 59FY07 880 60FY06 760 69FY05 722 62FY04 743 61FY03 731 67FY02 689 68FY01 599 61

Civilian & Military End Strengths

Source: Manpower/Training Analysis Office, DESC 
Statement of Financial Conditions ................................................................................ 17

Statement of Sales ......................................................................................................... 18Net Sales by Category ................................................................................................... 19Product Cost .................................................................................................................. 20Purchases by Category .................................................................................................. 21Worldwide Bulk Fuel Ending Inventory ....................................................................... 22

PETROLEUM & NATURAL GAS
Statement of Financial Conditions

Petroleum, Natural Gas & Aerospace Energy (U.S. Dollars in Millions)

 ASSETS: FY2008

 Accounts Receivable $842.9 Inventories $8,694.3 Fund Balance with Treasury $425.3 Other Assets $124.9

TOTAL ASSETS $10,087.4LIABILITIES:

 Accounts Payable $2,170.9 Advances from Others $15.6 Other Liabilities $0.0 Estimated Cleanup Co $91.5 

TOTAL LIABILITIES $2,278.0NET POSITION:

 Accumulated Operating Results $7,809.4

TOTAL CAPITAL $7,809.4

 TOTAL LIABILITIES & CAPITAL 10,087.4

Source: Financial Operations, DESC
Statement of Sales

Petroleum, Natural Gas & Aerospace Energy (U.S. Dollars in Millions)

 CUSTOMER: FY2008

 U.S. Army $3,110.7 U.S. Navy $4,751.8 U.S. Air Force $8,500.3 U.S. Marine Corps $220.5 Other DOD $73.8

TOTAL DOD $16,657.0

 Other Government Agencies $478.5 $478.5

SUBTOTAL $17,135.5

 Foreign Government $750.2 State Government $1.4 Local Government $3.7 Commercial $766.3  MWR Activity $13.3 $1,534.9 TOTAL GROSS SALES $18,670.5

LESS:

 Price Reduction on Sales $0.0 Material Returns Credits Applied $907.9 Allowance for Retail Stock Loss $0.0 ($907.9) TOTAL NET SALES $17,762.5

Source: Financial Operations, DESC
Net Sales by Category

Petroleum, Natural Gas & Aerospace Energy (Quantity)

SUBTOTAL SUBTOTAL 120 97 3 , 122 86 ,2 122,4

TOTAL PETROLEU TOTAL PETROLEUM E

TRO

LEUM 130,655 132,484 132,

5

Source: Financial Operations, DESC
Product Cost

Petroleum, Natural Gas & Aerospace Energy

SUBTOTAL $10,575.7 $10,473.5 $16,44

TOTALPETROLEUM $11,504.1 $11,464.8 $17,94

Source: Financial Operations, DESC
Purchases by Category

Petroleum & Natural Gas

S

UBT

O

TAL 12

6,212 126,4

4

8 12

4

TOTAL

P

ETROLEU

M 135,894 13

6,0

6

0 134

Source: Financial Operations, DESC
Worldwide Bulk Fuel Ending Inventory

(Millions of Barrels & U.S. Dollars)

PRODUCT BARRELS DOLLARAVGAS 0.003 $0.Distillates & Diesel 10.387 $1,506.JP-4 (JP-4, JAB, JAA, & JA1) 7.840 $1,041.JP-5 13.010 $1,659.JP-8, JPTS 27.680 $4,417.Lube Oils 0.019 $2.MOGAS & Gasohol(Leaded & Unleaded) 0.211 $30.Residuals 0.298 $8.Additives 0.026 $7.Total On Hand & In transit 59.475 $8,674.Aerospace Energy $1

Source: Financial Operations, DESC
Number of Defense Fuel Support Points ...................................................................... 23

Obligations for Storage/Distribution Services .............................................................. 24Sustainment, Restoration & Modernization .................................................................. 25Funding FY08 Commitments & Obligations ................................................................ 26FY08 Worldwide Bulk Product Transportation ............................................................ 27Transportation Expense ................................................................................................. 28Demurrage Collected .................................................................................................... 29

DISTRIBUTION DATA
TYPE OF OPERATION ARMY NAVY AIR FORCE DLA 

Government - Owned Government - Operated (GOGO) 158 43 116 2 Government - Owned Contractor - Operated (GOCO) 24 32 40 61 Contractor - Owned Contractor - Operated (COCO) 0 0 0 39 North Atlantic Treaty Organization (NATO) 0 0 0 6 Commercial Pipeline 0 0 0 37 Floating Storage 0 62 0 0 Foreign Government 0 0 4 8 TOTAL 182 137 160 153 

NOTE: Defense Fuel Support Points (DFSPs) as of Sept. 30, 2008

Number of Defense Fuel Support PointsStoring Government-Owned Fuel 

Source: Inventory Accountability Office, DESC 
0

50

100150200250300350400

FY04 FY05 FY06 FY07 FY08

Expenses ($ in Millions) # of Terminals

NOTE: FY07 and FY08 increase was the result of a change to obligating entire five-year contract amount in first year. FY08 terminal increase was the result of adding 46 Air Force locations (contract for bulk storage only).

Obligations for Storage/Distribution ServiceGOGO/GOCO/COCO/FG/NATO 

 Source: Bulk Petroleum, DESC 
Source: Bulk Petroleum, DESC

Sustainment, Restoration & ModernizationProgram
Funding FY08 Commitments & Obligations

Source: Bulk Petroleum, DESC

$M Budget vs Execution: SRM & MCO
Transportation Costs

Tanker

52%

Truck

22%

Rail

2%

Pipeline

15%

Barge

8%

Container 

1%

Number of Shipments

 Container

1%

Rail

1%

Pipeline

7%

Barge

3%

Tanker

1%

Truck

87%

Barrels Shipp

Barge

11%

Tanker

34%

Container

>1%

FY08 Worldwide Bulk Product Transportati(Frequency - Cost - Volume)

Source: Bulk Petroleum, DESC

* Costs associated with OCONUS pipeline shipments are funded under International Agreement (DESC-BG) and have been excluded to avoid duplicat

** Costs associated with OCONUS Tankers include funding provided to MSC for support of OPDS.

TRUCK RAIL *PIPELINE BARGE **TANKER SEAVAN 

Shipments 16,679 133 989 240 259 287 

OCONUS Cost ($ Millions) 34.1 2.1 - 1.3 140.8 2.8 

Barrels (Millions) 2.9 0.5 9.1 1.3 33.8 0.1 Shipments 34,859 547 3,160 1,084 347 287 

TOTAL Cost ($ Millions) 83.7 6.3 60.0 32.1 203.3 2.8 

Barrels (Millions) 15.1 2.3 55.3 15.8 46.6 0.1 Shipments 18,180 414 2,171 844 88 - 

CONUS Cost ($ Millions) 49.6 4.2 60.0 30.8 62.5 - 

Barrels (Millions) 12.2 1.8 46.2 14.5 12.8 - 
WORLDWIDE PETROLEUM FUEL: FY2006 FY2007 FY2

 AVGAS $0.1 $0.1 $ Distillates & Diesel $77.0 $79.5 $1 JP-4, JAB, JAA, & JA1 $54.4 $67.6 $1 JP-5 $50.3 $47.5 $5 JP-8, JPTS $248.7 $238.1 $2 Lube Oils $0.1 $0.1 $ MOGAS (Leaded & Unleaded) $6.9 $6.8 $ Residuals $2.6 $1.4 $

TOTAL $440.1 $441.1 $5

WORLDWIDE AEROSPACE ENERGY $3.3 $5.6 $

Transportation Expense(U.S. Dollars in Millions)

Source: Financial Operations, DESC 
0.0

0.20.40.60.81.01.2

FY03 FY04 FY05 FY06 FY07 FY08

Millions

Demurrage Collected(U.S. Dollars in Millions)

Source: Bulk Petroleum, DESC

FISCAL YEAR TOTAL 

 2008 $0.23 2007 $0.40 2006 $0.25 2005 $0.04 2004 $1.00 2003 $1.08 Note: Demurrage is a charge assessed for holding a conveyance beyond the “free time” or “allowable laytime.” Demurrage collected is from ocean  barge modes of supply.
DESC Optimization Projects ........................................................................................ 30

Energy Savings Performance Contract Awards ............................................................ 31Utility Privatization Support ......................................................................................... 32Utility Privatization Awards .......................................................................................... 33Small Business Program Achievements ........................................................................ 39

DESC BUSINESS VENTURES
LOCATION SERVICE TYPE

CONTRACT

START DATE

CONTRACT 

END DATE

PROJECTE

OVER CONTR

(NPV

Ft. Jackson, SC (Retail) USA COCO Jun 99 2019 -.829 Palms, CA (Retail) USMC COCO Jul 99 2019 8Ft. Stewart, GA(Retail) USA COCO Jun 01 2021 3Moffett, CA (Bulk/Alongside Refueling)

ANG/

NASA GOCO May 03 2023 3

Simmons/Camp Mackall, NC(Bulk/Alongside Refueling)(2 Facilities)

USA GOCOs Sep 03 2023 4

Ft. Carson, CO (Retail) USA COCO Mar 04 2024 8Ft. Campbell, KY (Retail) USA COCO Jul 05 2025 .3USAF Bulk Fuels CONUS & OCONUS USAF GOCO Jun - Sep 08 2013 59Camp Lejeune, NC USMC GOCO/ COCO Pending +20 years 4

TOTAL 92

NOTE: *Non-quantified environmental liability added to risk and justified optimization 

Optimization Projects(U.S. Dollars in Millions)

Source: Bulk Petroleum, DESC 
Source: Energy Enterprise, DESC

Energy Savings Performance Contract Awards

LOCATION ENERGY CONSERVATION MEASURES ENERGY SERVICE COMPANY (ESCO) DATE TOTAL AWARD AMOUNTS 

1RUWKHDVW5HJLRQDO2I¿FH 15 ECMs Pepco Gov’t Services LLC Jun 99 $214.1M 

Fort Jackson, SC

Lighting Upgrades, GSHP 

5HWUR¿WV&KLOOHU3ODQW8SJUDGHV

Demand Limiting System

Ameresco

Solutions Sep 01 $43.8M 

Aberdeen Proving Ground, MD GSHP CES Sep 01 $14.6M 

Fort Hamilton, NY

/LJKWLQJ5HWUR¿WV(QHUJ\

Management Control System, 

Water Savings

Consolidated

Edison Solutions, 

Inc.

Nov 01 $7.3M 

Carlisle Barracks, PA Direct Digital Controls, HVAC EPS Jul 02 $16.3M 

Fort Hood, TX

Delivery Order #1

UMCS Improvements, Vending 

Machine Controls, Cooling Tower 

9)'V/LJKWLQJ5HWUR¿W

Johnson Controls Sep 03 $11.3M 

Fort Monmouth, NJ

Lighting Upgrade, HVAC 

Renovation, UESC 

Implementation, GHP, 

Cogeneration System Site 

Preparation/Feasibility

Ameresco

Solutions Sep 03 $51.4M 

Fort Hood, TX

Delivery Order #2

UMCS Improvements, Vending 

Machine Controls, Lighting 

5HWUR¿W

Johnson Controls May 06 $38.5M 
Contracts Awarded in FY 07

Contracts Awarded in FY 08 Previous Years Awards Previous Years Awards

FY 2008 – (Total Value - $706 Million)Fort Polk, LA - Water/WastewaterFort Hood, TX - Water/WastewaterWestover AFB, MA - ElectricGoodfellow AFB, TX - Electric

Utility Privatization Support

Source: Energy Enterprise, DESC

FY 2007 – (Total Value - $5.0 Billion)A.P. Hill, VA – Water/WastewaterFort Bragg, NC – Water/WastewaterFort Gordon, GA – Water/WastewaterFort Greely, AK – CHPP/Electric/Water/WastewaterFort Jackson, SC – Water/WastewaterFort Richardson, AK – Natural Gas/Electric/Water/WastewaterFort Wainwright, AK – CHPP/Electric/Water/WastewaterFairchild AFB, WA – Natural GasGrissom ARB, IN – ElectricScott AFB, IL - Water

FY 2006 – (Total Value - $613.5M)Charleston AFB, SC - GasFort Belvoir, VA – ElectricFort Bragg, NC – Water/Wastewater PlantsFort Gordon, GA – ElectricFort Myer/McNair, VA - ElectricNatick Soldier Systems Command, MA – ElectricFY 2005 – (Total Value - $302.3M)Andrews AFB, MD – Water/WastewaterFort Eustis, VA – Water/WastewaterFort Leavenworth, KS – ElectricFort Lee, VA – WastewaterFort Monroe, VA – Water/WastewaterNatick Soldier Systems Command, MA – ElectricFort Story, VA – Water/WastewaterFY 2004 – (Total Value - $530.5M)Dobbins ARB, GA – ElectricBolling AFB, DC – Water/WastewaterFort Bliss, TX – Water/WastewaterFort Eustis, VA – ElectricFort Lee, VA – ElectricFort Monroe, VA – ElectricFort Story, VA – ElectricFort Knox, KY – Wastewater/Stormwater

FY 2003 – (Total Value - Picatinny Arsenal, NJ – ElFort McNair, VA – GasFort Bliss, TX – GasFort Rucker, AL – ElectricFort Leavenworth, KS – WRandolph AFB, TX - WasSunny Point, NC - ElectriFY 2002 – (Total Value - Fort Bliss, TX - ElectricFY 2001 – (Total Value - Fort Detrick, MD – Gas Bolling AFB, DC – Gas Minneapolis-St Paul - Ga
Utility Privatization Awards

Source: Energy Enterprise, DESC

LOCATION SYSTEM CONTRACTOR AWARD DATE TOTAL AWARD AMOUNT

(Award Year Dollars)

Go

Sh

Fort Detrick, MD Gas

Washington Gas 

and

Light

Dec 00 $0.70M (Construction Project) 

Bolling AFB, DC Gas

Washington Gas 

and

Light

Jul 01 $0.43M (Construction Project) 

Minneapolis Saint

Paul ARS, MN Gas Minnesota Gas Sep 01 $0.17M (Construction Project) 

(Fo

Fort Bliss, TX Electric

Rio Grande 

Electric 

Cooperative

Sep 02 $98.1M (For 50 Years) $

(Fo

Picatinny Arsenal, 

NJ Electric

Sussex Rural 

Electric

Cooperative

Oct 02 $42.2M (For 50 Years) $

(Fo

Fort McNair, VA Gas Washington Gas and Light Feb 03 $0.40M (Construction Project) 

Fort Bliss, TX Gas Texas Gas Service Mar 03 $47.4M (For 50 Years) $

(Fo

Fort Rucker, AL Gas

Southeast 

Alabama Gas 

District

Apr 03 $8.6M (For 50 Years) 

(Fo

Fort Rucker, AL Electric Alabama Power May 03 $94.6M (For 20 Years) 

(Fo

*Difference between Government Should Cost Estimate used in economic analysis and NPV of Offerors proposal (Includes residual value except where **Excludes Residual Value
Source: Energy Enterprise, DESC

Utility Privatization Awards (Cont.)

LOCATION SYSTEM CONTRACTOR AWARD DATE TOTAL AWARD AMOUNT (Award Year Dollars) G

S

Fort Leavenworth, 

KS

Water/ 

Wastewater

American Water 

Services Sep 03 $95.7M (For 50 Years) 

(F

Fort Rucker, AL Water/ Wastewater American Water Services Sep 03 $118.4M (For 50 Years) 

(F

Randolph AFB, TX Wastewater San Antonio River Authority Sep 03 $26.9M (For 50 Years) 

(F

Sunny Point Military

Ocean Terminal, NC Electric Brunswick Electric Membership Sep 03 $17.4M (For 50 Years) 

(F

Dobbins ARB, GA Electric Georgia Power Feb 04 $13.0M (For 50 Years) 

(F

Bolling AFB, DC Water/ Wastewater Washington Suburban Sanitary Commission Mar 04 $26.8M (For 50 Years) 

(F

Fort Bliss, TX Water/ Wastewater American States Utility Services Jun 04 $197.6M (For 50 Years) 

Fort Eustis, VA Electric Dominion Virginia Power Jun 04 $39.0M (For 50 Years) 

(F

Fort Lee, VA Electric Dominion Virginia Power Jun 04 $68.0M (For 50 Years) 

(F

*Difference between Government Should Cost Estimate used in economic analysis and NPV of Offerors proposal (Includes residual value except where no**Excludes Residual Value
Source: Energy Enterprise, DESC

LOCATION SYSTEM CONTRACTOR AWARD DATE TOTAL AWARD AMOUNT (Award Year Dollars) G

S

Fort Monroe, VA Electric Dominion Virginia Power Jun 04 $23.8M (For 50 Years) 

(

Fort Story, VA Electric Dominion Virginia Power Jun 04 $11.9M (For 50 Years) 

(

Fort Knox, KY Wastewater/ Stormwater Hardin County Water District #1 Sep 04 $150.4M (For 50 Years) 

(

Andrews AFB, MD Water/ Wastewater American States Utility Services Sep 05 $114.3M (For 50 Years) 

(

Fort Eustis, VA Water/ Wastewater American States Utility Services Sep 05 $58.0M (For 50 Years) 

(

Fort Leavenworth, 

KY Electric

Leavenworth 

Jefferson Electric 

Cooperative

Sep 05 $65.5M (For 50 Years) 

(

Fort Lee, VA Wastewater American States Utility Services Sep 05 $23.5M (For 50 Years) 

(

Fort Monroe, VA Water/ Wastewater American States Utility Services Sep 05 $19.4M (For 50 Years) 

(

Fort Story, VA Water/ Wastewater American States Utility Services Sep 05 $21.5M (For 50 Years) 

(

*Difference between Government Should Cost Estimate used in economic analysis and NPV of Offerors proposal (Includes residual value except where **Excludes Residual Value

Utility Privatization Awards (Cont.)
Utility Privatization Awards (Cont.)

Source: Energy Enterprise, DESC

LOCATION SYSTEM CONTRACTOR AWARD DATE TOTAL AWARD AMOUNT

(Award Year Dollars)

G

S

Charleston AFB, SC Gas South Carolina Electric & Gas Sep 06 $4.6M (For 50 Years) 

Fort Belvoir, VA Electric Dominion Virginia Power Sep 06 $214.1M (For 50 Years) 

Fort Bragg, NC Water (Plant) City of Fayetteville Sep 06 $135.4M (For 40 Years) Fort Bragg, NC Wastewater (Plant) County of Harnett Sep 06 $91.1M (For 40 Years) 

Fort Gordon, GA Electric Georgia Power Sep 06 $71.4M (For 50 Years) 

Fort Myer/McNair, 

VA Electric Dominion Virginia Power Sep 06 $73.3M (For 50 Years) 

Natick Soldier 

Systems Command, 

MA

Electric NSTAR Sep 06 $23.6M (For 50 Years) 

Fort A.P. Hill, VA Water/ Wastewater American Water Sep 07 $98.1M (For 50 Years) 

Fort Bragg/Pope, 

NC

Water/ 

Wastewater

American States Utility 

Services Sep 07 $575.4M (For 50 Years) 

Fort Gordon, GA Water/ Wastewater Augusta Utility Department Sep 07 $202.5M (For 50 Years) 

*Difference between Government Should Cost Estimate used in economic analysis and NPV of Offerors proposal (Includes residual value except where 
Source: Energy Enterprise, DESC

Utility Privatization Awards (Cont.)

LOCATION SYSTEM CONTRACTOR AWARD DATE TOTAL AWARD AMOUNT (Award Year Dollars) G

S

Fort Greely, AK

CHPP/Electric 

Water

Wastewater

Doyon Utilities Sep 07 $553.3M (For 50 Years) 

Fort Jackson, GA Water/ Wastewater American States Utility Services Sep 07 $143.8M (For 50 Years) 

Fort Richardson, AK

Electric

Natural Gas

Water

Wastewater

Doyon Utilities Sep 07 $939.6M (For 50 Years) 

Fort Wainwright, AK

CHPP/Electric 

Water

Wastewater

Doyon Utilities Sep 07 $2,422.2M (For 50 Years) 

Fairchild AFB, WA Natural Gas Avista Sep 07 $1.9M (For 50 Years) 

Grissom ARB, IN Electric Miami-Cass Sep 07 $5.1M (For 50 Years) 

Scott AFB, IL Water American Water Sep 07 $67.3M (For 50 Years) 

Westover AFB, MA Electric City of Chicopee Apr 08 $19.9M (For 50 Years) 

*Difference between Government Should Cost Estimate used in economic analysis and NPV of Offerors proposal (Includes residual value except where n
Source: Energy Enterprise, DESC

Utility Privatization Awards (Cont.)

LOCATION SYSTEM CONTRACTOR AWARD DATE TOTAL AWARD AMOUNT (Award Year Dollars) G

S

Goodfellow AFB, TX Electric AEP Texas North Co. Sep 08 $8.2M (For 50 Years) 

Fort Hood, TX Water Wastewater American Water Sep 08 $329.7M (For 50 Years) 

Fort Polk, LA Water Wastewater American Water Sep 08 $348.6M (For 50 Years) 

*Difference between Government Should Cost Estimate used in economic analysis and NPV of Offerors proposal (Includes residual value except where 
Small Business Program Achievements

(In Thousands)

FY06 FY07 FY0

Small Business PreferenceProgram Targets Perfor. Dollars Targets Perfor. Dollars Targets PerforSmall Business Awards 23.00% 32.80% $2,532,594 22.9% 18.57% $1,506,339 24% 18.14% Small Disadvantaged Business Awards 4% 3.20% $244,830 4.0% 0.02% $2,017 4.20% 0.2% Section 8 (a) 0.10% 0.04% $3,695 0.10% 0.0% $63 0% 0% Women-Owned SmallBusiness Awards 1.10% 1.50% $119,044 1.10% 0.9% $71,230 1.9% 1.15% Hubzone Small BusinessAwards 1.10% .40% $30,103 1.10% 0.14% $11,158 1.5% 1.54% Svc-Disabled Vet-OwnedSmall Business Awards .50% 0.00% $2,790 .50% 0.02% $1,360 3% 0.0168% Total Domestic Awards $3,174,191 $1,592,167 

Note: All percentages based on total domestic dollars awarded.

Source: Small Business Office, DESC
Facility/Service Agreements ..........................................................................................40

Agreement Snapshot ......................................................................................................41

INTERNATIONAL AGREEMENTS
FY08 Port, Depot Storage, Pipeline, Product, Se

& Fuel Exchange Agreements(U.S. Dollars in Millions)

REGION AGREEMENTS FINANCIALDESC EUROPE (Service Costs) 11 $46.3DESC MIDDLE EAST (Product/Service Costs) 2 $2.7DESC PACIFIC (Product/Service Costs) 3 $227.4FUEL EXCHANGE AGREEMENTS (Sales) 29 $559.5 

Source: Bulk Petroleum, DESC 
Agreement Snapshot

Pipeline System (P/L)

Fuel Exchange Agreement (FEA)

Direct Bill (DB)

Source: Bulk Petroleum, DESC
DESC CONTRACT STATISTICS

Petroleum Contract Introduction ................................................................................... 42Contract Award Data ..................................................................................................... 43Top Ten Contributing Petroleum Contractors ............................................................... 44Top Ten Contributing Installation Energy Contractors ................................................. 45Environmental Contracts .............................................................................................. 46Testing Contracts .......................................................................................................... 47
NATURE OF DESC PETROLEUM PRODUCT CONTRACTS

FY08 Petroleum Contract Introduction

Source: Direct Delivery Fuels, DESC

t Contracts are indefinite delivery type contracts - requirements-type and quantity-typet Minimum/maximum delivery order limitations are defined.t Fuel is called forward through delivery orders.t Contracts contain price adjustment clauses.t Contract prices are indexed to market price indicators.t Contract prices are adjusted upward or downward as indicators rise or fall.t DESC pays the contract price in effect on the date of delivery or as otherwise adjusted  in the contract price.
Source: Procurement Process and Support Division (FPDS-NG) and input from the DESC CBUs

Note: Dollars are shown in Billions (B), Millions (M), and Thousands (T).

FY08 Contract Award Data

 AWARD TOTAL CBU CONTRACCOMMODITY BUSINESS UNIT (CBU) DOLLARS AWARD DOLLARS ACTIONBulk Fuel Division 13.6 (B) 203

Domestic 6.2 (B) Overseas 5.6 (B) Lubes/Additives 39.3 (M)Synthetic Fuels 1.5 (M)Foreign Military Sales (FMS) 307.9 (M)Operations Iraqi Freedom/Enduring Freedom 1.5 (B)

Bulk Facilities & Distribution Management Division 392.9 (M) 502

Storage 274.3 (M)Alongside Aircraft Refueling 53.3 (M)Environmental 13.5 (M)Testing/Services 50.8 (M)Miscellaneous 903.6 (T)

Ground Fuels Division 2.1 (B) 1,140

Domestic 401.3 (M)Overseas 1.7 (B)

Mobility Fuels 299.2 (M) 116

Into-Plane 190.8 (M)Bunkers 108.3 (M)

Installation Energy 1.8 (B) 53

Natural Gas 1.1 (B)Electricity 638.3 (M)Coal 46.0 (M)

Energy Enterprise 706.4 (M) 193

Utility Privatization 706.4 (M)Energy Savings Performance Contracts -0-

Aerospace Energy 52.3 (M) 52.3 (M) 1,687

TOTAL 19.0 (B) 19.0 (B) 3,894
FY08 Top Ten Contributing Petroleum Supp

(U.S. Dollars in Millions)

CONTRACTOR AMOUNT CONTRACShell $1,715.0 12.10%BP $1,523.0 10.74%Red Star Enterprises LTD $1,069.0 7.54%Valero Marketing and Supply Company $1,044.0 7.36%The Bahrain Petroleum Company $1,018.0 7.18%Abu Dhabi National Oil Company $918.0 6.48%Exxon Mobil Corporation $836.0 5.90%Motor Oil (HELLAS) (MOH) $725.0 5.11%International Oil Trading Company LTD $457.0 3.22%SK Corporation $337.0 2.37%TOTAL $9,642.0 68.00%

AWARD PERCENT OF 

Source: Procurement Process and Support Division (FPDS-NG) and input from the DESC CBUs 
 *Represents FY08 single and multi-year contracts

FY08 Top Ten Contributing Installation EnSuppliers* (U.S. Dollars in Millions)

Source: Installation Energy, DESC

SUPPLIER CONTRACT $ CONTRACBP Energy Company $164.2 11%Amerada Hess Corp. $161.6 11%Usibelli Coal Mine $138.6 10%Tiger Natural Gas, Inc. $91.4 6%Seminole Energy Services, LLC $76.1 5%Washington Gas Energy Services $70.0 4%PEPCO Energy Services, Inc. $63.6 4%Constellation New Energy $60.5 4%Cascade Natural Gas Corp. $53.6 4%Marathon $51.2 4%TOTAL $930.8 64%

PERCENT OF 
Source: Bulk Petroleum, DESC

LOCATION SERVICE PROVIDED CONTRACT PERIOD APPRO

ANNUAL VA

Anchorage, AK Assessment/Remediation 1 Mar 05 - 28 Feb 10 $20,6Casco Bay, ME Assessment/Remediation 1 Nov 05 - 31 Oct 10 $142,Charleston, SC Assessment/Remediation 1 Apr 04 - 31 Mar 09 $1,594Eielson, AK Assessment/Remediation 1 Mar 05 - 28 Feb 10 $92,0Fort Hood, TX Assessment/Remediation 1 Jul 04 - 30 Jun 09 $327,Grand Forks, ND Assessment/Remediation 1 Jul 04 - 30 Jun 09 $63,6+XQWHU$UP\$LU¿HOG*$ Assessment/Remediation 1 Apr 04 - 31 Mar 09 $137,Indian, AK Assessment/Remediation 1 Mar 05 - 28 Feb 10 $12,5Jacksonville, FL Assessment/Remediation 1 Apr 04 - 31 Mar 09 $126,Melville, RI Assessment/Remediation 1 Dec 03 - 30 Nov 08 $1,081Newington, NH Assessment/Remediation 1 Dec 03 - 30 Nov 08 $126,Norfolk, VA Assessment/Remediation 5 Dec 03 - 4 Dec 08 $451,Norwalk, CA Assessment/Remediation 1 Jul 08 - 30 Jun 13 $1,815Ozol, CA Assessment/Remediation 1 Jul 08 - 30 Jun 13 $2,434Philadelphia, PA Assessment/Remediation 1 Mar 00 - 28 Feb 09 $4,003San Diego, CA (Point Loma) Assessment/Remediation 1 Jul 03 - 30 Jun 10 $2,331San Pedro, CA Assessment/Remediation 1 Jul 08 - 30 Jun 13 $1,415Tampa, FL Assessment/Remediation 1 Apr 04 - 31 Mar 09 $258,Verona, NY Assessment/Remediation 1 Dec 03 - 30 Nov 08 $86,3Whittier, AK Assessment/Remediation 1 Mar 05 - 28 Feb 10 $352,N/A Environmental Document Updates 1 Oct 06 - 30 Sep 11 $367,N/A OPA-90 Training 1 Jan 07 - 31 Dec 11 $269,N/A Environment, Safety and Occupational Health (ESOH) 1 Aug 06 - 31 Jul 11 $36,3

TOTAL NUMBER OF CONTRACTS: 

APPROXIMATE ANNUAL VALUE TO DATE:

 1RWH$QQXDO¿JXUHGHULYHGE\GLYLGLQJWDVNRUGHUVWRGDWHE\WKHDSSUR[LPDWHSHULRGHODSVHG

$17,5

FY08 Environmental Contracts
CONUS

- 7 Contracts 7 Contracts- 39 Locations 39 Locations

Overseas Overseas- 7 Contracts 7 Contracts- 26 Locations 26 Locations

CONUS- 7 Contracts 7 Contracts- 39 Locations 39 Locations

Overseas Overseas- 7 Contracts 7 Contracts- 26 Locations 26 Locations

CONUS- 7 Contracts 7 Contracts- 39 Locations 39 Locations

Overseas Overseas- 7 Contracts 7 Contracts

- 26 Locations 26 Locations

Note: These are service contracts for testing petroleum products.

FY08 Testing Contracts (For Petroleum Products)

Source: Bulk Petroleum DESC
FUEL PROCUREMENT

Into-Plane Contracts ...................................................................................................... 48FY08 Ships Bunkers Contracts ..................................................................................... 49Alongside Aircraft Refueling ........................................................................................ 50Posts, Camps & Stations Contracts ............................................................................... 51
FY08 Into-Plane Contracts

Source: Direct Delivery Fuels, DESC

DOMESTIC

 325 Locations Supported 322 Contracts $996.5M Contract Value 9.7M Barrels

OVERSEA

 177 Locations Sup

96 Countries

 32 Contracts $926.3M Contract  9.2M Barrels

Represents active multi-year contract data as of 30 Sep 08
FY08 Ships Bunkers Contracts

Source: Direct Delivery Fuels, DESC

DOMESTIC

 111 Ports Supported 40 Contracts $456.9M Contract Value 5.8M Barrels

OVERSEA

 139 Ports Supporte

Countries

 25 Contracts $1.1B Contract Va 14.7M Barrels

Represents active multi-year contract data as of 30 Sep 08
LOCATION PERFORMANCE PERIOD AWARD AMOUNT APPROX

ANNUAL $ 

Brunswick, ME (Navy) 1 Jul 05 - 30 Jun 09 $2,596,128 $682,Camp Pendleton, CA (Marine Corps) 1 Oct 07 - 30 Sept 08 $2,085,360 $612,China Lake, CA (Navy) 1 Mar 03 - 31 Dec 08 $3,487,728 $871,Corpus Christi, TX (Navy) 1 Oct 07 - 30 Sep 08 $5,575,632 $1,549Dallas/Fort Worth, TX (Navy) 1 Apr 07 - 31 Mar 11 $4,176,000 $1,044El Centro, CA (Navy) 1 Jul 05 - 30 Jun 09 $5,880,000 $1,696Fallon, NV (Navy) 1 Oct 06 - 30 Sep 11 $11,071,637 $2,040Fort Hood, TX (Army) 1 Feb 07 - 31 Jan 12 $7,786,080 $796,Fort Lewis, WA (Army) 1 Sep 03 - 30 Sep 08 $2,041,392 $510,Hunter AAF, GA (Army) 1 Aug 05 - 31 Jul 10 $7,427,901 $1,591Jacksonville, FL (Navy) 1 Dec 06 - 30 Nov 10 $2,766,491 $1,550Key West, FL (Navy) 1 Oct 07 - 30 Sep 11 $6,654,384 $836,Kings Bay, GA (Navy) 1 Oct 04 - 30 Sep 08 $815,771 $238,Kingsville, TX (Navy) 1 Mar 04 - 29 Feb 08 $4,150,159 $957,Lakehurst, NJ (Navy) 1 Jun 05 - 31 May 09 $788,880 $202,Meridian, MS (Navy) 1 Apr 06 - 31 Mar 10 $3,251,721 $1,398Moffett Field, CA (NASA) 1 Dec 03 - 30 Nov 08 $4,021,636 $1,980North Island, CA (Navy) 1 Sep 04 - 31 Aug 08 $9,944,130 $2,227Okinawa, Japan (Marine Corps) 1 Apr 08 - 31 Mar 12 $1,410,516 $542,Patuxent River, MD (Navy) 1 Dec 05 - 30 Nov 10 $12,244,128 $1,530Pensacola, FL (Navy) 1 Mar 02 - 30 Nov 08 $5,446,610 $1,246Souda Bay, Crete (Navy) 1 Jun 05 - 31 May 09 $2,083,574 $646,Ventura, CA (Navy) 1 Apr 04 - 30 Nov 08 $5,190,960 $1,467Whidbey Island, WA (Navy) 1 Jul 02 - 31 Oct 08 $4,839,216 $1,757Whiting Field, FL (Navy) 1 Jan 02 - 30 Nov 08 $6,993,073 $1,177Yuma, AZ (Marine Corps) 1 Feb 04 - 31 Dec 08 $3,572,736 $988,

FY08 Alongside Aircraft Refueling

 TOTAL NUMBER OF CONTRACTS: 27 TOTAL $128,152,745 $30,76

Source: Bulk Petroleum, DESC 
DOMESTIC (CONUS)

t 225 Contractst 1433 Activities Supportedt $2.5B Contract Valuet 32.3 Million Barrels

OVERSEAS (OCONUS)

t 82 Contracts, 32 Countriest 246 Activities Supportedt $3.8 Billion Contract Valuet 36.2 Million Barrels

 Represents active multi-year contract data as of 30 Sep 08

FY08 Posts, Camps & Stations Contracts

Source: Direct Delivery Fuels, DESC
DESC INSTALLATION ENERGY PROGRAM

Coal Program ................................................................................................................ 5

2

Natural Gas Program ..................................................................................................... 53Electricity Program ....................................................................................................... 55Renewable Energy Program.......................................................................................... 56
Customers: 11 DOD

 1 Fed CivBITUMINOUS COAL:Capitol Power Plant, Washington, D.C.NAVFAC Washington, Indian Head, MDMarine Corps Base, Camp LeJeune, NCMarine Corps Air Station, Cherry Point, NCJoint Systems Manufacturing Center, Lima, OHWright Patterson AFB, OHRock Island Arsenal, ILRed River Army Depot, Texarkana, TXMalmstrom Air Force Base, MTSUB-BITUMINOUS COAL:Fort Wainwright, AKEielson AFB, AKClear Air Force Station, AK

DOLLARS AND PERCENT OF TOTAL DOLarge Business - $1,767,960 / 2.5%Small Business - $68,371,962 / 97.5%Total Dollars - $73,722,822

Coal Program

Source: Installation Energy, DESC

Army 283,500 $22.2 MillionAir Force 325,700 $26.3 MillionNavy 103,200 $18.7 MillionOther 40,000 $ 6.5 Million

Requirement

Tons Dollars

FY08

Summary of Procurements

Total 752,400 Tons $73.7 Millio
DESC is actively managing over 162M 

dekatherms of natural gas valued at over 

$1.03B under multi-year contracts

Natural Gas Program Summ

 200+ DOD & Fed Civ customer 50M+ Dekatherms delivered, an $30M+ Cost savings, annually

Contract Coverage in 38 States (including Alaska)plus District of Columbia

Customer Segmentatio

Natural Gas Program

Source: Installation Energy, DESC 
Component Customers per

Component

FY08 

Dths Delivered

(Million)

FY08

Expenditures*

(Million)

FY08 

Cost Avoidance**

(Million)

C

Army 50 18.5 $168.0 $13.4 

Navy/MC 52 13.5 $125.7 $15.5 

Air Force 36 9.9 $78.1 $6.9 

Other DOD 15 1.6 $15.8 $2.5 

Fed Civ 63 11.5 $102.0 $9.8 

TOTAL 216 55.0 $489.6 $48.1 

*Includes Commodity & Distribution Costs to the Burnertip **Represents Cost Avoidance at DESC Indexed 

Source: Installation Energy, DESC 
32%

8%

18%

15%

27%

Electricity Program

Source: Installation Energy, DESC

ArmAir NavOthFed 

Retail Access Implemented, DESC awarded contractsRetail Access Implemented, DESC solicited,no awardsRetail Access Pending, DESC monitoring market

Customer Segmentation

DESC is actively managing over 7.8M megawatt hours of electricity v

at over $640M under multi-year contracts
-

500,000

1,000,0001,500,0002,000,0002,500,0003,000,000

Geothermal 30,000 $14,700 26,112 $33,195 1,880 $4,700 0 Wind 10,000 $45,000 20,738 $205,488 385,810 $274,775 326,916 $507,611 116,155 $346,893 172,51Biomass 19,830 $46,600 49,500 $111,990 713,050 $283,620 776,969 $285,185 768,652 $855,011 535,03

MWh $ Value MWh $ Value MWh $ Value MWh $ Value MWh $ Value MWh 

2003 2004 2005 2006 2007 

Renewable Power: Any source of energy that is continually available or that can be renewed or replac5HQHZDEOH(QHUJ\&HUWL¿FDWHV5(&VA derivative product, the market value of which represents thRQWKHHQYLURQPHQWDOEHQH¿WVRIWKHJHQHUDWLRQRIHOHFWULFLW\IURPVSHFL¿FW\SHVRIUHQHZDEOHUHVRXUFHV Summary of Renewable Power Purchases (FY03 - FY

 Energy Policy Act 2005 Renewable Energy Goals increase from 3% to 5% in FY10.

Renewable Energy Program

Source: Installation Energy, DESC 
FUEL CARD PROGRAMS

U.S. Government AIR Card

® .........................................................................................57

DOD Fleet Card .............................................................................................................58SEA Card

® ......................................................................................................................59
 Note: U.S. Government Air Card® and AIR Card® are registered Trademarks of the DESC AIR Card® Program.

Source: Government Fuel Card Program Management Office, DESC

x :DU¿JKWHU%HQH¿WV

- Supports DESC into-plane contract refueling at over 500 locations- Accepted at over 7000 non-contract locations worldwide in 190 countri

x Fiscal Stewardship

- Non-contract discount: $21 million in savings from posted airport price 

x FY08 Sales Data

- $699.6 million contract fuel

199.3 million gallons258,223 transactions

- $166.7 million non-contract fuel

31.4 million gallons48,902 transactions
Source: Government Fuel Card Program Management Office, DESC

FY08 Sales*

*Sta

x :DU¿JKWHU%HQH¿WV

- Supports over 700,000 vehicle fueling transactions annually- Provides minor maintenance and roadside assistance support- Accepted at over 200,000 commercial locations1RWDFUHGLWFDUG±HQDEOHVVWDQGDUGXQLWSULFLQJ- $3.16 million direct tax rebates in FY08
®

Source: Government Fuel Card Program Management Office, DESC

x :DU¿JKWHU%HQH¿WV - Total online order management system supporting ships’ bunker ref

 (OHFWURQLFDOO\FRQQHFWV'(6&EXQNHUVPHUFKDQWWRYHVVHORUGHULQJ

3⁄4(OLPLQDWHVLQHI¿FLHQWPDQXDOSDSHUSURFHVV

x Global Support 

 - 400+ DOD vessels registered - 24/7 fuel ordering/customer service support - Contract support at 260+ contract  ports - Open Market support at 2000+  non-contract ports
QUALITY OPERATIONS SUPPORT

Petroleum Quality Information System .........................................................................60

Research & Development Product Support ...................................................................61Alternative Energy Programs .........................................................................................62

Cataloging & Standardization Functions .......................................................................63Quality Assurance/Surveillance Program ......................................................................64

DOD Standard Practice (MIL-STD-3004B) ..................................................................657UDLQLQJ	&HUWL¿FDWLRQ3URJUDP'(6&5 .....................................................66
x Purpose: OSD directive, 1989: To 

the collection and dissemination of standardized fuel quality data

x Allows for a proactive approach in 

identifying and monitoring productrends across a wide spectrum

x Largest publication of fuel quality 

information worldwide

x Used by customers and commercia

industry (TWA 800, GE engine development, trends, etc.)

x Publication includes data from UK 

Jet A-1 purchases

Petroleum Quality Information

System (PQIS)

Source: Quality/Tech Support Office, DESC 
x Program Manager for DESC funded projects

x Establishes and implements long-term projects and studies to resolve 

petroleum-product and additive related issues

x Partner with Commercial Industry, Military Services & Federal Agencx Projects Include

- JP-8 +100 additive study- Jet A conversion study- FAME contamination of jet fuel

R&D Product Support

Source: Quality/Tech Support Office, DESC
Alternative Energy Programs

x Synthetic Fuels

  0HPEHURI'2'6\QWKHWLF)XHOV7DVN)RUFHDQG'2(&RDO*DVL¿FD

 IPT  6XSSRUWLQJWKH$LU)RUFH)LVFKHU7URSVFK)7V\QWKHWLFIXHOVFHUWL¿ program

x Biomass to Energy - Partnering with Army and Bell Bio Energy to test 7 mobile units to co biomass (grass clippings, cardboard, wood, etc.) to fuelx Algae Oil to Fuel - Partnering with the Navy to certify platforms on JP-5 and F-76 fuel d from algaex Hydrogen

- Partnering with Army on hydrogen demonstration programs 

 (Congressionally driven)

- Developing database to track DOD hydrogen initiatives (similar to D

Source: Quality/Tech Support Office, DESC 
Cataloging & Standardization

x Lead Standardization Activity (LSA) for Federal Supply Group for Fue

Lubricants, Oils & Waxes

&RRUGLQDWHGQHZVSHFL¿FDWLRQVDQGVWDQGDUGV0,/'7/

 83133F, MIL-STD-3004B, MIL-PRF-9000J, DEF STAN 91-91 

x LSA for Liquid Propellant Fuelsx 0DUNHWUHVHDUFK	VSHFL¿FDWLRQDQDO\VLVx Work with DLA Standardization Executive Agencyx '(6&¶V4XDOLW\	7HFKQLFDO6XSSRUW2I¿FHPDQDJHVDQGPDLQWDLQVWKH

5HIHUHQFH/LVWRI&RPPRGLWLHV6SHFL¿FDWLRQVDQG6WDQGDUGV'(6&+

Source: Quality/Tech Support Office, DESC 
x Provides Direction and Control to Bulk, Direct Delivery, Aerospace Energy, Facil

Alternative Fuels CBUs QA/QS Programs

- Evaluates & Recommends Acceptability of KTR Exceptions to Quality  Requirements- Evaluates & Recommends Acceptability of KTR Deviations & Waivers to  Requirements

x Develops and Implements Quality Policy for DESC Headquarters & Regionsx Investigates and Resolves Customer/Depot Complaints (CDCs) and Product Qual

'H¿FLHQF\5HSRUWV34'5V

x 3URYLGHV'LVSRVLWLRQLQVWUXFWLRQVIRURIIVSHFL¿FDWLRQIXHOLQFRQFHUWZLWK'HIHQV

Supply Point Management (DESC-N) & Financial Operations (DESC-R)

x Maintains Quality Metrics for DESCx Manages the Commercial Laboratory Program

Quality Assurance/Surveillance

(QA/QS) Program

Source: Quality/Tech Support Office, DESC 
x '(6&¶V4XDOLW\	7HFKQLFDO6XSSRUW2I¿FHGHYHORSVDQGDVVXUHV

LPSOHPHQWDWLRQRI0,/67'%3'2'6WDQGDUG3UDFWLFH±4XDOLW\Assurance/Surveillance for Fuels, Lubricants and Related Products.”

x The Standard provides DOD Policy, general instructions and minimum 

procedures to be used by the Military Services and Defense Logistics Agin performing quality assurance/surveillance functions of U.S. Governmeowned fuels, lubricants and related products worldwide.

x This Standard includes policy and responsibilities derived from Executiv

Agency, Directive 5101.8, DOD Executive Agent (DOD EA) for Bulk Petroleum, Aug. 11, 2004, which designated the DLA Director as the DOExecutive Agent for Bulk Petroleum for the DOD with authority to re-deto DESC.

x The information is appropriate to quality assurance, where applicable (e.g

direct delivery to customers, destination acceptance, etc.).

x This Standard also contains intra-governmental receipt limits for U.S. 

government-owned fuels.

MIL-STD-3004B

Source: Quality/Tech Support Office, DESC 
x '(6&¶V4XDOLW\	7HFKQLFDO6XSSRUW2I¿FHGHYHORSVDQGLPSOHPHQWVWK

Quality Assurance Specialist (QAS) and QAS Supervisor’s (SQAS) Train&HUWL¿FDWLRQ3URJUDPIRU'(6&

x This Regulation outlines the DESC QAS and QAS Supervisor’s Training 

&HUWL¿FDWLRQ3URJUDPDVUHTXLUHGSHU'/$0'/$''/$,DOD 5000.52-M. DESC is responsible for DESC Center Quality Assuranoversight of the Quality Surveillance program.

x Program includes the development, implementation and teaching by DES

VWDIIRIVSHFL¿FSHWUROHXPUHODWHGFRPPRGLW\FHUWL¿FDWLRQFRXUVHVLQFOXG

- J07: Quality Assurance of Into-Plane Servicing Contracts- J08: Quality Assurance of Coal- XX: Coal Sampler- J20: Petroleum In-Plant Quality Assurance

Quality Assurance Specialist and QAS 

6XSHUYLVRU¶V7UDLQLQJ	&HUWL¿FDWLRQ3URJ

Source: Quality/Tech Support Office, DESC 
AEROSPACE ENERGY POSTURE

$HURVSDFH(QHUJ\&XVWRPHU3UR¿OH ..............................................................................67Contracting Overview ....................................................................................................68Product Line Overview ..................................................................................................69Major Programs Supported ............................................................................................70Hazardous Material Shipments ......................................................................................72Solutions for Today’s Energy Challenges ......................................................................73
Air Force 

64%

Commer

20%

Navy 8% NASA 2

Army 5%

Navy 1%

 Commercial

43%

Other 

FedCiv 

<1%

Army 17% NASA 10%

FMS <1%

Air Force 

29% Air Force 

64%

Commer

20%

Navy 8% NASA 2

Army 5%

Navy 1%

 Commercial

43%

Other 

FedCiv 

<1%

Army 17% NASA 10%

FMS <1%

Air Force 

29%

)<$HURVSDFH(QHUJ\&XVWRPHU3UR¿OH

Source: Aerospace Energy, DESC

By Total Sales By Number of Customers

 $53,624,000 681
Contracting Overview

Source: Aerospace Energy, DESC

161VGLIIHUHQWSURGXFWV

 - 3 Product Classes - Liquid Propellants, Cryogens and Compressed Gases$FWLYH&RQWUDFWV - 95% requirements-type contracts - Normally multi-year - 3 to 5 years - Both FOB Origin and Destination&UDGOHWR*UDYH3UHDZDUGWRFRQWUDFWFORVHRXW

(YHU\SURGXFWVXSSRUWVD'2'PDMRUZHDSRQV\VWHPRU'2' space application in some way 

 Graphic Source: NASA’s Conceptual Design of ARES I Rocket (Shuttle Replacement) 
NASA S

USAFDelta II

Army PTDS Aerostat Navy Tomahawk Cruise Missile Stinger Miss

Product Line Overview

Source: Aerospace Energy, DESC

Compressed Gases Helium Nitrogen Argon Hydrogen Deuterium1LWURJHQ7ULÀXRULGH Fluorine Xenon Krypton Neon

 PropellantsHypergolic Hydrazine Fuels - 7 grades Dinitrogen Tetroxide - 5 grades Inhibited Red Fuming Nitric AcidNon-Hypergolic Rocket Propellant - Grades 1 and 2 Isopropyl Alcohol Hydrogen Peroxide JP-10 Priming Fluid MethanolCryogenic Liquid Oxygen Liquid Hydrogen

Liquid Methane

Non-Propellant CryogensAviator’s Breathing OxygenLiquid NitrogenLiquid Air Liquid ArgonLiquid HeliumLiquid Carbon Dioxide
Major Programs Supported by the Aerospace 

Energy CBU

Source: Aerospace Energy, DESC

 USAF Delta and Atlas Commercial Evolved Expendable Launch 

 Vehicle - Lockheed Martin Atlas V and Boeing  Delta IV

 F-16 Emergency Power Unit F-15/F-16 Air Intercept Missile, Avenger,  Sidewinder Cruise Missiles - Navy Tomahawk, Harpoon & 

 USAF ALCM/ACM

 AIM-9 and Stinger Missiles R&D Programs
Major Programs Supported by the Aerospace 

Energy CBU - Cont’d

Source: Aerospace Energy, DESC

 Army THAAD (Terminal High Altitude Area Defense) DOD Aircraft Life Support & Maintenance USAF and Army Aerostat Programs Military and Commercial Satellites International Space Station DEA Drug Interdiction DOD Laser Programs NASA Space Shuttle
Hazardous Material Shipments

Source: Aerospace Energy, DESC

100% Delivery on time without incident

TRANSPORTATION SAFETY IS #1 PRIORITY

PRODUCT CYLINDERS/DRUMS BULKHelium 1613 118Argon 525Hydrazine 181 5JP-10/PF-1 58 23Dinitrogen Tetroxide (N2

O4) 111 7

RP-1 6 34IRFNA 42

Total 2536 187
Customer Challenge DESC Solutio

US Army OIF/OEF Aerostat Program(bulk helium)

42% increase in helium usage in OIF/OEF during worldwide helium shortage. Maintenance/Repair of in theater trailers

Increased number of tube-bank of traipressure cylinder assemblies to beef up Worked closely with supplier to insure the warfighter’s demand for helium. Mcontract to include minor repairs. Prorepair parts as government-furnished pshipped them from CONUS

All launch customers Disruptions in the supply chain due to Hurricane Gustav and Ike. Suppliers located in 

hurricane ravaged areas and shipments transit through affected areas.

Closely monitored ongoing shipments alternate routes or arranged for safe-havehicles. Worked with contractors/cumission delays. 

Xenon/IPA Customers Fluctuations in demand and supply for xenon 

and isopropyl alcohol resulting in extreme volatility in prices. Contractors unwilling to enter into long-term fixed price contracts

Established Blanket Purchase Agreemetechnically acceptable suppliers and reaward quotes at time of purchase ensusupply of these commodities. 

Aviator’s Breathing Oxygen (ABO) customers worldwide

Oversight of the ABO quality program. Worked with Quality Assurance Repre

suppliers to insure periodic samples mrequirements and to make repairs to Aas required. 

Aerospace Energy Solutions for Today’s EnergyChallenges

Source: Aerospace Energy, DESC 
Year in Review

FY08 Highlights/Accomplishments...............................................................................74
SUPPORT TO NORTHERN IRAQ CONTINUES 

UNABATED: During FY08, DESC Europe (DESC-EU) shipped over 19, 900 tank trucks loads of JP-8, Diesel and MOGAS to locations throughout Northern Iraq in support of Operation Iraqi Freedom (OIF). The 113 million gallons of fuel delivered were YDOXHGDW RYHU PLOOLRQDQG¿OOHG  RIWKHWRWDO TXDQWLW\ordered. This product was instrumental in supporting the U.S. Central Command (USCENTCOM) Commander’s “surge” operations that directly reduced overall violence within Iraq and enabled the transition of authority from U.S. forces to their Iraqi counterparts in large sections of the country. The 94% FY08 RUGHU¿OO UDWHLVDQLPSURYHPHQW RI  RYHUWKH)< RUGHU¿OOUDWHDQGLVLQGLFDWLYHRI'(6&(8¶VFRQWLQXHGFRPPLWPHQWWRVXSSRUWLQJWKHZDU¿JKWHUOPERATION IRAQI FREEDOM: Last year, over 617 million gallons of product were provided from Kuwait and Jordan in support of OIF. During this period, our Quality Assurance Representatives (QARs) were instrumental in reducing the number of contractor vehicles turned away at border crossings, in both Kuwait and Jordan, by 63%. The QAR’s achieved this by clarifying inspection procedures and by providing on-site training for both contractor and customer inspectors. DESC Middle East (DESC-ME) is FRQ¿GHQW LQ WKH FRQWUDFWRUV¶ DELOLW\ WR PRQLWRU WKHLU SURFHVVHVand inspection techniques that started in April 2008. The QARs continue to respond to U.S. Army Central Command’s (ARCENT) inquiries in support of Iraq Trucking Network operations and maintain a close relationship with USCENTCOM.OPERATION ENDURING FREEDOM (OEF): Last year, over 153 million gallons of products were provided in support of OEF. Russian grade aviation fuel (TS1) and ground fuels are supplied via 

supplier facilities in Afghanistan, but originate in Asia / Russia. QARs and contracted inspection coprovided quality assurance and support throduring the entire year. QARs provided supporduring the year and our newly contracted insprovided total on-site inspection during Septem5 QAR contractor oversight visits conducted iin Afghanistan. 4,831 tank truck inspections w3DNLVWDQHQVXULQJWKDWWKHSURGXFWUHFHLYHGZDand the proper procedures were being followed. CONVOY DELIVERY ADJUSTMENT: FRQFHUW ZLWK WKH ,UDT 6XE $UHD 3HWUROHXP 2I3rd Expeditionary Sustainment Command (ETransportation Battalion (Trans BN) arranged routes and procedures for fuel moving from Remarkably, this effort resulted in reducing totime to Al TaQqedum by more than 12 hours, thHIIHFWLYHQHVVDQGHI¿FLHQF\7KLVHIIHFWLYHO\ IUWUXFNDVVHWVWKDWDOORZHGJUHDWHUIXHOSXVKHVDQGZDU¿JKWHURED STAR/JLC PIPELINE: The Red Sdelivers unadditized TS1 jet fuel via pipeline to every day. It became fully operational in March an unprecedented impact on fuel operations anAfghanistan. On average, Bagram receives 250via the pipeline, although Bagram has received USG in one day through the pipeline. One of thaspects of this new method of delivery is that ibase to reduce the amount of trucks that enter tApproximately 40 fuel trucks per day no longe

Defense Energy Support Center

FY08 Highlights/Accomplishments
line outside the entry control point to be swept by security and 

force protection teams. By reducing the congestion at the Entry Control Point, trucks carrying additional classes of supply are able to access the base quickly, thereby improving Bagram’s ability to receive and process material for its various customers. U.S. EMBASSY KABUL, AFGHANISTAN LIAISON OFFICER (LNO): DESC-ME worked extensively with the Afghan ministries to address the political/military engagements and to facilitate the importation of fuel into the country in support of OEF. This effort included establishing effective working relationships with the Afghan Ministries of Finance and Foreign $IIDLUV DQG DVVLVWLQJ RI¿FLDOV ZLWK GHYHORSLQJ ULJRURXV ERUGHUmanagement procedures to ensure minimal operational impact to DESC suppliers. The DESC LNO also worked with senior embassy staff and coalition forces to clarify existing bilateral agreements and mentor the government of Afghanistan to grant exemptions from taxation to U.S. and coalition activities, contracts and contractor personnel. With the support of this team, Red Star successfully negotiated the abolishment of a 2% importation fee on TS1 imposed by the government, saving U.S. taxpayers over $4.7 million per year. U.S. EMBASSY, ISLAMABAD, PAKISTAN LNO: The DESC-ME LNO in Pakistan worked with the supplier Supreme, the American Embassy’s economic section head, and a director of the Federal Board of Revenue to modify the export regulation, 652ZKLFKSRVHGGLI¿FXOW\LQH[SRUWLQJIXHOIURP3DNLVWDQWRAfghanistan. The original regulation would not allow fuel tankers to cross the border if the variance was 0.5% an unrealistic standard considering the condition of the fuel tankers and the harsh driving conditions. By bringing together the right people, the LNO was able to synchronize the viewpoint of the American economics section, the supplier’s concerns, and the objectives of the Federal Board of Revenue to ensure the unimpeded delivery of petroleum products to the U.S. military in Afghanistan. All stakeholders were VDWLV¿HGZLWKWKHUHYLVLRQWRDYDULDQFHDZDLYHURIGD\V

and a revised regulation implemented 30 days thHELIUM SUPPORT TO THE WARFIGHTEAerospace Energy (DESC-M) OCONUS Bulk Hthe Air Force and Army Aerostat Programs and Wincreased by 42% or 66,410 cubic meters in FYthrough management of a challenging supply ch91 Tube Bank Trailers and 81 High Pressure Cyl(HPCAs) between United Arab Emirates (UAE) aSURYLGHGFXELFPHWHUVRIKHOLXPWRWKH:FY08, DESC-M took on the challenging endeavbulk helium to the Army throughout the treacAfghanistan. This successful mission was made the close relationship with our customer cofacilitating the delivery of 42,907 cubic meterteam overcame multiple challenges, laying the a successful mission with the increased requiremFY.SPECIALIZED HELIUM CONTAINER SWARFIGHTER: The DESC-M helium teaconstructed special HPCAs for helium deliveOEF. These HPCAs became popular with the maArmy Weather Squadrons in OIF during FY08. Tprocurement of 35 additional HPCAs to supZLWKFRQWDLQHUVXSSRUWLQ2()DQGIXO¿OOQHZFin OIF. All 35 HPCAs were manufactured and ¿HOG YLD DLUOLIWV ZLWKLQ QLQH PRQWKV IDFLOLWDWLQJIRUWKH:DU¿JKWHU7KHKHOLXPWHDPDOVRORFDWHGTube Bank Trailers in CONUS and aggressivefor refurbishment for the timely plus-up of customDuring FY08, 16 of the 19 trailers have srefurbished and airlifted to OIF and OEF, increof trailers in the supply chain from 75 to 91. Thifor mission success with the demand of helium in
DESC PROVIDES FUEL SUPPORT TO GLOBAL WAR 

ON TERRORISM (GWOT) UNDER AFGHANISTAN PROGRAM: The Direct Delivery Fuels (DDF) support to Bagram Air Base, Afghanistan, garners a high level of attention from DLA senior leaders and the Combatant Commanders. The acquisition itself is highly complex due to geopolitical issues, performance metrics, sole source negotiations and seasonal disruptions. The SURJUDPGLUHFWO\VXSSRUWVWKH*:27DQGZDU¿JKWHUVFRQGXFWLQJOEF. The complexity of the acquisition is further exacerbated as Afghanistan has been in a state of war and turmoil for numerous years resulting in limited logistical infrastructure necessary to supply fuel to areas engaged in heavy combat with insurgents. Planning for this acquisition began early and continued to evolve WKURXJK WKH SUHDZDUG SKDVH (QJDJLQJ WKH ZDU¿JKWHU DQGcollaborating with a cadre of subject matter experts strengthened our strategy and resulted in a resilient supply chain to the tip of the spear. Stakeholders include the Joint Logistics Command, USCENTCOM, the DESC Middle East Commander, contracting RI¿FLDOV DV ZHOO DV WKH '(6& 2SHUDWLRQV &RPPDQGHU 7KHteam incorporated lessons learned from the previous acquisition, several performance-enhancing innovations, and a requirement IRUPLWLJDWLQJWKHZDU¿JKWHU¶VH[SRVXUHWRVXSSO\GLVUXSWLRQ$VD UHVXOWRIWKHWHDP¶VOHDGHUVKLSWKH¿YHFRQWUDFWVDZDUGHGYDOXHGDWPHWWKHVWUDWHJLFJRDOVRIWKHZDU¿JKWHUand DLA leadership. In addition, contracts were awarded in support of the Afghan First initiative totaling $54 million, performance metrics were established incentivizing strategic storage, a second ground line of communication (GLOC) for JP-8 was established, which built resiliency into the supply chain, and the volume of strategic storage was doubled in overall quantity and proximity to base. DESC PROVIDES FUEL SUPPORT TO GWOT UNDER DJIBOUTI PROGRAM: The DDF Djibouti Program provides gasoline, diesel and jet fuel for Camp Lemonier, Djibouti, Africa. &DPS /HPRQLHU LV D 86 1DY\ EDVH VSHFL¿FDOO\ D )RUZDUG

Operating Site, situated in Djibouti and is hoJoint Task Force - Horn of Africa (CJTF-HOA) oCommand (AFRICOM). It was established as in the region for the support of Operation EndHorn of Africa (OEF-HOA). It is a former mithe French Foreign Legion. The competitively is for a period of three years delivering an estimU.S. gallons of jet fuel (JA-1) valued at $28,11U.S. gallons of premium unleaded gasoline ($140,601.79, and 8,362,632 U.S. gallons of dvalued at $19,178,422.09. DESC PROVIDES FUEL SUPPORT TO GQATAR PROGRAM: The DDF Qatar pro$410,716,444.35 provides commercially availabUSCENTCOM and the U.S. Air Force in Qatar GWOT, OIF and OEF. Qatar Fuel, a majority state-owned petroleum only source for the Midgrade Unleaded GasoSummer-grade Ultra Low Sulfur Diesel (DF2) pby USCENTCOM to support base operations. Sales Agreement, the estimated requirement fperformance period is 9,000,000 U.S. gallons $29,262,348.00, and 95,155,000 U.S. gallons at $376,426,519. This fuel is necessary for bacontinue without interruption. New initiatives fto implement the concepts obtained in Lean Six leveraging ground PORTs to improve the invoiclear out historically high accounts payable outstIn addition, DESC is permitted by the Qatarimport aviation gasoline (AVGAS) competitively contract because Qatar Fuel does not supply t$9*$6 LV VKLSSHG IURP D UH¿QHU\ LQ )UDQFShipping Containers (ISOs) to the port of Doha, then transported to the Al Udeid Airbase. This provides an estimated 775,000 U.S. gallons of 
at $5,314,841. This fuel supports numerous Unmanned Aerial 

Vehicle (UAV) operations throughout the USCENTCOM area of responsibility (AOR).COBRA GOLD 2008 EXERCISE: Continuing its efforts to VXSSRUW WKH ZDU¿JKWHU WKH '(6& GLUHFWHG LWV HIIRUWV WRZDUGsupporting the Cobra Gold 2008 Exercise in Thailand. The 2008 exercise is a joint-training exercise and humanitarian effort involving the U.S., Thailand, Singapore, Japan and Indonesia, in addition to other invited allied countries. Cobra Gold 2008 included ¿HOG WUDLQLQJ WKURXJK FRPELQHG DLU ODQG DQG VHD RSHUDWLRQVcommand post exercises, and civic action projects. Through its participation, the U.S. continues to show dedication to promoting peace, serenity and security among the participating countries. DESC awarded contracts for 371,152 gallons of jet aviation fuel, 45,137 gallons of diesel fuel #2, and 3,270 gallons of regular unleaded gasoline, which were needed to meet the requirements VXEPLWWHGWRVXSSRUWWKHZDU¿JKWHUVGXULQJWKHRSHUDWLRQVRIM OF THE PACIFIC (RIMPAC) 2008 EXERCISE: DESC 0LGGOH 3DFL¿F H[SHUWO\ IDFLOLWDWHG DQG FRRUGLQDWHG IXHO VXSSRUWfor the U.S. Navy and Allied Naval Forces during RIMPAC 2008 ([HUFLVH7KH0LGGOH 3DFL¿F RI¿FH FRRUGLQDWHGWKH GHOLYHU\ RIover 2 million gallons of JP-8 and JP-5 from Pearl Harbor to Marine Corps Base Kaneohe, Hawaii, to support surveillance aircrafts from the U.S. and Allied countries during RIMPAC 2008 ([HUFLVHZKLFKLVWKHODUJHVWPXOWLQDWLRQDOÀHHWH[HUFLVHLQWKHworld. Participants included 40 ships, 120 aircrafts and 18,000 Sailors from 10 countries. SUPPORT OF QUARTERMASTER LIQUID LOGISTICS EXERCISE 2008 (QLLEX) AND CONCURRENT EXERCISES: DESC Americas supported the QLLEX and two concurrent exercises (Golden Coyote, Camp Rapids, SD, and 3DFL¿F:DUULRU)RUW+XQWHU/LJJHWW&$4//(;LVDNH\H[HUFLVHfor the Army Reserve petroleum supply and transportation units during summer annual training. U.S. Army Reserve (USAR) units 

operate across the U.S. moving capitalized produFuel Support Points (DFSPs) to various customtraining involved 182 Army tanker trucks, 7 DFSQuartermaster Group (QM GP), Farrell, PA, proand control (C2). Our DESC QARs inspected efor suitability to carry DESC product, passin99%. Over 2,400 soldiers received critical trainiconvoy techniques and transported over 2.8 milliduring the exercises. SUPPORT OF ULCHI FREEDOM GUARDI08): In August 2008, DESC Americas augmenLQVXSSRUWRI8)*D863DFL¿F&RPPDQGUFG-08 exercised the defense of the Republic employing provisionally organized U.S. and headquarters, with the U.S. military in a suppoROK military. DESC Korea supported the KSupport Center (KPSC) providing integrated peand management to support Combined Forces C'(6&$PHULFDV2SHUDWLRQV2I¿FHUVHUYHGDVWKKPSC for the exercise. SUPPORT FOR PANAMA EXERCISE (PAPANAMAX 2008 was one of the largest multexercises in the world, involving more than 3aircraft and 7,000 personnel from 20 nationZDV FRQGXFWHG LQ WKH &DULEEHDQ DQG 3DFL¿F Dcanal, while land forces participated at ComaEl Salvador and Soto Cano Air Base in HondSouthern Command (SOUTHCOM)-sponsored on ensuring the defense of the Panama Canal, strategically and economically crucial pieces in the world. PANAMAX 2008 exercised groresponses to any request from the government of in protecting and guaranteeing safe passage throensuring its neutrality. The DESC Americas traveled to Panama to observe PANAMAX 20
site/mission orientation for the SOUTHCOM AOR. This visit 

coincided with the arrival of the Marine Vessel ‘Houston’, which successfully discharged 11.6M BBLs of JP-5 into DFSP tankage. Additionally, the Commander DESC Americas East met with CTF 43 and Naval Forces South (NAVSOUTH), managing PANAMAX 2008 logistics requirements. The group discussed possible improvements to exercise and operational support requirements. Productive meetings and discussions were also held with Parque Industrial Maritimo De Panama SA (DFSP contractor), ITS CalebBrett (DESC Laboratory Services Contractor) and GP Resources (DESC Bunker Contractor).TRADEWINDS 2008 EXERCISE: The Tradewinds Exercise, 

celebrating its 23rd year, is a collaborative effort of the regional Security System Caribbean made up of militaries from several Caribbean countries, the U.S. Army, U.S. Marine Corps Forces South, and U.S. Coast Guard. The Tradewinds Exercise was under the sponsorship of the SOUTHCOM. The mission of the 2008 Tradewinds exercise was to enhance the Dominican Republic Army with the ability to conduct offensive counter narcotics operations. DESC worked diligently to secure contractors capable of providing the 50,000 gallons of jet aviation fuel and 18,000 gallons of diesel fuel requested to ensure mission success.BALIKATAN 2008 EXERCISE: Since 1981, the U.S. and Filipino militaries have met to learn from one another and to improve their interoperability. In Filipino, the word Balikatan means “shouldering the load together” and the Balikatan 2008 Exercise was not different from any of its predecessors. The U.S. and Filipino armed forces conducted humanitarian assistance projects, such as offering free medical, dental and veterinary care, and constructing and repairing schools and other infrastructure in communities in need. This exercise also focused on training both forces to provide relief and assistance in the event of natural disasters and other crisis that could endanger public health and safety. To ensure success of the exercise, DESC successfully awarded fuel contracts to deliver 23,289 gallons of Fuel Oil Diesel 

#2, 1,378 gallons of premium unleaded gasolineof jet aviation fuel. In addition to the above rethan 500 additional gallons of premium gasoline needed on a day-to-day basis. SUPPORT OF MILITARY TRAINING MISSIONS IN ROMANIA AND BULGARIADESC supported several military training exerRomania and Bulgaria. These exercises representhat were not covered under DESC’s tradprograms. Working with DESC-EU/ U.S. Eur(EUCOM), the DDF team was able to obtain coMK Airbase, Constanta, Romania (493,900 galloand Graf Ignatievo Air Base, Bulgaria (277,500 gA1). The self proclaimed independence of Kosoprocurement process presented a challenge; hteam was successful in procuring fuel for all moperations within this area of the world. The pleased to note that in the Bulgaria area abundanreceived for a location that traditionally had limDDF’s direct involvement with suppliers in that in conjunction with maintaining a healthy worwith DESC-EU, contributed to this competitive sacquisition/program.EUCOM INITIATIVE SUPPORT: In suppfocus on developing capacity among new NATO EU provided fuel support to service compondifferent exercises and weapons training deploymand Bulgaria including operations at Joint TDESC-EU also supported Exercise Austere Chalwhich simulated high intensity combat operatioinitial operations in Iraq. DESC-EU planners pSKDVHVRISODQQLQJDQGDOVRGHSOR\HGWZRRSHUDWservice components during the execution phaseFHUWL¿FDWLRQRIWKHWK)OHHWDVD-RLQW7DVN)RUas a Joint Forces Air Component Command, and 
Combined Joint Forces Land Component Command. In response 

to Russia’s invasion of Georgia, EUCOM established an air bridge to deliver relief supplies to the people of Georgia. DESC-(8 SURYLGHG SODQQLQJDGYLFHWRWKH -RLQW 3HWUROHXP2I¿FHDQGLGHQWL¿HG IXHOVRXUFHVLQ(DVWHUQ(XURSHDQG*HRUJLDWRVXVWDLQthe air bridge, which ultimately delivered over 1052 tons of relief supplies including rations, cots, blankets, tents and medical supplies.OPERATIONS AND EXERCISE SUPPORT TO EUCOM, AFRICOM, AND USCENTCOM: Developed, managed and maintained the EUCOM/AFRICOM Class IIIB Exercise & Event Summary, a tool depicting upcoming exercises and important events impacting bulk fuel support throughout the theater. This summary was adopted as the common operational picture that EUCOM/AFRICOM utilized to manage and communicate bulk fuel requirements. The summary provided senior leadership with a comprehensive picture of upcoming exercises and events and alerted senior leaders to potential issues. Astute evaluation of the stated requirements in relation to sortie rates and fuel loads resulted in cost avoidance of an estimated $947,400 in three separate exercises in Romania and Bulgaria. Operations Division also monitored contract lift status on the 2007-2008 Atlantic-EuropeMediterranean bulk fuel contracts and ensured 100% of contract lift minimums were achieved. Over 566 million gallons, valued at $1.08 billion, were lifted in support of EUCOM, AFRICOM and USCENTCOM activities. Operations Division also right-sized the '(6&(8OHDVHG UDLOWDQNFDU 57&ÀHHW IURP57&VWRwhich resulted in savings of more than $285,000 annually. The 57&ÀHHW UHGXFWLRQZDVWKH UHVXOW RID VWXG\WKDW GLVFHUQHGWKHÀHHWZDVLGOHDWSHDNXVDJHRYHUWKHFRXUVHRIWKHODVW\HDUVQUALITY PRODUCT SUPPORT TO EUCOM, AFRICOM, AND USCENTCOM: DESC-EU Quality administered quality assurance on over $1.2 billion worth of contracts, including oversight on all fuel delivered via the Northern Ground Line of Communications into Northern Iraq in support of OIF. DESC-EU 

Quality also conducted into-plane contract audiin 45 countries throughout EUCOM and AFEU Quality operates a full service laboratory cgasoline, diesel and aviation fuels, which was reby the Institute for Inter-laboratory Studies for itthe third straight rating period.PRESIDENT OF THE UNITED STATES (POPROVIDED: DESC-EU supported four separWKURXJKRXW(8&20GXULQJ7KH¿UVWDQGYLVLWZDV3UHVLGHQW%XVK¶V¿YHFRXQWU\WRXU RIthe countries of Benin, Tanzania, Rwanda, Ghwhich resulted in the stand-up of Joint Task Formanage the massive operational and logistical DESC-EU team ensured bulk petroleum suppoconstrained environment and facilitated 129 missions in the delivery of over 1,664 short tonpersonnel to seven locations in six countries. TGLUHFWO\UHVSRQVLEOHIRUHQVXULQJRQVSHFL¿FDWLRQOne and the delivery of 2.3 million gallons of fuin 14 countries. The Joint Task Force Nomad described DESC-EU operational, quality and coDV 3PDJQL¿FHQW ́ '(6&(8 DOVR VXSSRUWHG Endeavor, for the POTUS visit to the NATO sumRomania and a meeting with Russian Presidentin Sochi, Russia. For this visit, DESC-EU and fuel support plans for four locations in less thensured a projected 3.5 million U.S. gallons wWLPH UHVSRQVLYHO\ DQG RQVSHFL¿FDWLRQWRWKH FManagement also supported POTUS visits to boEuropean Union summit in Slovenia to round out for DESC-EU in direct support of the CommandQARs overcame numerous scheduling and travel still provided timely service ensuring the fuel fmet the standards required for the safe movemen
DESC PROVIDES FUEL SUPPORT UNDER ALASKA 

PROGRAM: The DDF program in Alaska, valued at $188,354,828, is a culmination of challenges due to the extreme nature of the Alaskan environment, the weather and diversity of the requirements themselves. Despite the complexity and challenges, '') HQJDJHG WKH ZDU¿JKWHU DQG FROODERUDWHG ZLWK WKH YDULRXVstakeholders to provide excellent service. DDF Alaska contracts provided support for over 80,000,000 USG of ground fuel to numerous DOD activities and federal civilian locations (ie. FAA, National Park Service). This is done with 12 different contractors throughout Alaska. The success of the mission in Alaska depends on the hard work and dedication of the DDF team, along with insight from DESC Alaska (DESC-AK), the activities and our supplier base. Through persistence, dedication and collaboration, this team developed a proven solution for ground fuel support in Alaska. The basis for success was founded by establishing a strong line a communication between the customer and DESC. This communication helped DESC to better understand the requirements and help the activities establish better requirements for themselves. Communication was also the cornerstone to success with the Alaskan vendors. The vendors are a source of knowledge that DESC uses on a constant basis to understand the conditions and situations that exist within the Alaskan area of operation. SUPPORT TO ALASKA: During FY08, DESC-AK provided over 83 million gallons of product in support of operations in Alaska via tank truck, barge and pipeline to over 116 customer locations. Over 17 million gallons were supplied to Post, Camps and Stations (PC&S), which are spread across Alaska in remote locations that are subject to extreme weather conditions. DESCAK provided fuel support to the 18 remote North American Aerospace Defense Command (NORAD) radar sites that are a critical piece of America’s missile defense system. DESC-AK DFWLYHO\ SDUWLFLSDWHGLQ5HG )ODJ$ODVND D VHULHV RI 3DFL¿F$LU

)RUFHVFRPPDQGGLUHFWHG¿HOGWUDLQLQJH[HUFLVHwhich provides joint offensive counter-air, inair support and large force employment trainincombat environment. DESC-AK also participamilitary training exercise in Alaska, Northern exercise involved more than 120 Air Force, Armand Air National Guard aircraft. In FY08, arctiStar, Inc., accepted the challenge from DESC UH¿QLQJ FDSDELOLW\ DW 3HWUR 6WDU¶V 1RUWK 3ROHDIWHU WKH SUHYLRXV VXSSOLHU RSWHG RXW RI -3day-one, Petro Star demonstrated the highest lservice and commitment in providing this crDUFWLF ZDU¿JKWHU DQG KDV GHOLYHUHG WKH KLJKHVWDOZD\V RQVSHFL¿FDWLRQ DQG RQWLPHWR JHRJUDScustomers located in interior Alaska. DESC-AJP-4 to Arnold AFB, TN, and Eglin AFB, FL, in sengine research and development and testing. DEprovided laboratory testing for 49 customers fuel operations for Air Force One. Furthermorlaboratory saved an estimated 2 million dollars in FY08. Keeping the arctic mission going, DESto support Clear AFS, Eielson AFB and Fort Wplants with over 480 tons of coal. The Air Owned Governmant Operated (GOGO) bulk aground fuel storage sites at Elmendorf AFB awere transformed into DESC managed Contract Operated (GOCO) facilities. DESC became reoperation and performance of maintenance at thfacilities, which accounted for over 58 million gWorking Capital Fund-owned (DWCF) petr7KH '(6&$. 2SHUDWLRQV QRQFRPPLVVLRQHG (NCOIC) deployed to the CENTCOM AOR in suOEF providing outstanding support to the DESBulk Helium Support Mission. Finally, FY08 saw Barge” operations supporting 611th Air Support 
operating location at Galena Airport, Alaska. This critical mission 

dates back to the early days of World War II. In accordance with the 2005 Base Realignment and Closure Commission, 611th turned over the keys to the town of Galena. Thanks to the hard work of the DESC-AK team, Galena’s closure was truly a winwin situation for the Air Force, the Galena community, and the state of Alaska. The installation was transformed into the Galena Interior Learning Academy, which now houses over 250 students LQHQHUJ\HI¿FLHQWGRUPLWRULHVDQGDODUJHUGLQLQJIDFLOLW\FDSDEOHof feeding all of the students and faculty at one time. SUPPORT TO JAPAN: With a staff of 10 professionals, DESC Japan managed the throughput of 422 million gallons of petroleum and cryogenic products worth $1.8 billion to 15 DFSPs, supporting 518 customers and 107,000 DOD employees across Japan. Challenged with typhoons, earthquakes and roadblocks, the DESC Japan team ensured their customers received the right product, in the right place, at the right time. They also helped reestablish critical into-plane refueling services at Haneda Airport, Tokyo’s second largest International Airport. They reconciled fuel product transactions under the Acquisition and Cross-Servicing Agreement, Foreign Military Sales Program and International Fuel Exchange Agreement, recouping $17.3 million replacementin-kind (RIK) transaction replacing 267,963 gallons of JP-8 to the host nation of Japan. Their quality assurance team supported U.S. Presidential visits to Japan in support of the G-8 Summit and China during the 2008 Olympic Games. Their petroleum distribution team assisted with the awards of three new PC&S contracts, which proved critical in meeting 99.6% of customer LGHQWL¿HG UHTXLUHPHQWVDQGHQVXUHGDFWLYLWLHVZHUHDEOHWRPHHWstrict sulfur emission laws. The contracts also shifted a heavy fuel distribution workload off of the U.S. Army. DFSP Okinawa installed a $4 million ocean tanker single point mooring buoy system, which provides critical strategic JP-8 product distribution to the island region. The U.S. Air Force received much needed relief when DESC launched two Bulk Storage Operations and 

Maintenance contracts at Kadena and Misawa AJapan bid fond farewell to the USS Kitty Hawk anuclear powered USS George Washington, the IRUZDUGGHSOR\HGDLUFUDIWFDUULHULQWKH$PHULFDQ SUPPORTING OPERATIONS IN KOREAprovided continuous monitoring and oversight of gallons of DESC inventory, maintained at 32 loexcess of $281 million. DESC Korea supported U(USFK) by directing movement of over 85 mbulk fuel by rail, tank truck and over 23 milliowere moved via pipeline. The team was responswholesale fuel and energy solutions to 35,000 mother Federal Agency employees. DESC Korea PC&S contract, valued at almost $72.5 million, tcontract, worth an estimated $335 million, and the barge contract, worth $35 million. Additionaldirected a network of 32 accounts with a volu200,000 fuel transactions annually, valued at $3consistently achieving average account reconciliaDESC Korea was also accountable for the plannexecution of bulk fuel activities for 2 Operational that support PACOM, United Nations CommanCombined Forces Command and USFK. Prior Korea’s existing contracts did not contain conContingency clauses have been developed and will be included in current and future contracts. R0LQLVWU\ RI 1DWLRQDO 'HIHQVH 52. 01' FUHYLHZ VXEPLVVLRQV DQG¿OO UHTXLUHPHQWVWRFRQour armistice contractual needs under a state contingency. ROK MND may assign the samWKHLU VXEFRQWUDFWRUV WR IXO¿OO RXU FRQWUDFWXDO Ucontingency, or they may assign different comIXO¿OO RXU FRQWLQJHQF\ QHHGV GHSHQGLQJ RQ Wof the clause by the contractor. Several facilitito fruition during FY08 to include a $721,000 
replacement from Pyongtaek DFSP to the hot refuel point at Camp 

Humphreys. Due to this upgrade, fuel is transported via pipeline rather than trucks, saving the DOD both manpower and an annual cost of $150,000. Another completed project transpired at Camp Casey. This project consisted of installation of receipt and issue ¿OWUDWLRQ VHSDUDWRUV D ZDWHU UHPRYDOSURGXFW UHFRYHU\ V\VWHPSDQWRJUDSKERWWRPORDGLQJDUPVRQ¿OOVWDQGVDQGRIIORDGLQJarms on 5 JP-8 rail car off-loading headers. This new capability allows the U.S. Army to distribute aviation grade fuel throughout WKH QRUWKHUQ 52. UHJLRQ 7KH ¿QDO SURMHFW DFFRPSOLVKPHQWby the DES, DESC team was a $2.2 million hydrant refueling V\VWHP UHSDLU DW .XQVDQ $% 7KLV LQYROYHG UHSODFLQJ ÀRZFRQWUROV WR LQFOXGH PRGL¿HG SLSLQJ YDOYHV SURGXFW UHFRYHU\tank, back pressure control valve, programmable Logic controls and pantographs. The DESC Korea team assured the quantity and quality of 14 pipeline shipments with over 23.2 million gallons JP8, worth over $79 million and 4.1 million gallons DPK worth 13.5 million. In addition, we assured the bulk fuel tanker and barge loading of over $598,000,000 of quality bulk fuel and improved South-North pipeline shipment procedures resulting in zero out of tolerance gains or losses in FY08. PROPELLANT SUPPORT FOR LAUNCHES: DESC-M supported 23 government and U.S. commercial launches, and many of their payloads with propellant and pressurants during FY08. Launches included four shuttles, seven Delta II rockets, four Atlas V rockets, one Delta IV rocket, two Falcon I rockets and ¿YH6HD/DXQFK=HQLWURFNHWV'(6&0VXSSRUWVODXQFKHVZLWKpropellants such as aerozine 50 hydrazine, dinitrogen tetroxide and RP-1 rocket propellant. Pressurants provided by DESC-M include gaseous helium, gaseous and liquid nitrogen. Some launch vehicles are also supported with ground support propellant equipment. NASA vehicles and satellites lofted by these vehicles included the Gamma-ray Large Area Space Telescope observatory, the Kibo science laboratory module and robotic arm system for the International Space Station, the Japanese experiment logistics 

module, the Jason 2 spacecraft to measure seand the European Space Agency’s Columbus sPRGXOH'2'SD\ORDGVLQFOXGHGFODVVL¿HGSD\O5HFRQQDLVVDQFH 2I¿FH DQG PLOLWDU\ SD\ORDGVGlobal Positioning System Block 2R military navWKH ¿QDO 'HIHQVH 6XSSRUW 3URJUDP PLVVLOHDQG WKH ¿UVW :LGHEDQG *OREDO 6$7&20 spacecraft. Commercial launches supported th19 communications satellites for Intelsat, the Gimaging spacecraft, the EchoStart 11 direct-tobroadcast satellite, the ICO G1 mobile communthe DirecTV 11 direct-to-home television brthe Thuraya 3 mobile communications satelliteCOSMA-SkyMed radar Earth-imaging satellite.INTERNATIONAL AGREEMENTS SUPEU hosted two fuel exchange agreement summNATO foreign government marine and aviation Participation included current agreement pKingdom, Turkey, Italy, Greece, France, Spaas well as military petroleum representatives Poland, Romania and Slovenia. The focus owas on standardizing mutual fuel support acother non-NATO countries. This team effort EU, DESC International Agreements (DESC-Retail Management (DESC-RR). The member standardize strategic business relationships betThe efforts were instrumental in recouping over the DESC Defense Working Capital Fund.DESC FEMA CONTINGENCY TEAM SUATLANTIC HURRICANE SEASON: The hurricane season was a busy one with 16 namhurricanes with 5 of them being major Category 3 DESC was engaged, before and throughout the seto ensure effective FEMA contingency support. TContingency Team includes a mix of headquar
support members. A FEMA contingency contract was set up to 

support FEMA response during a hurricane or other natural or man-made disasters. Foster Fuels was under contract with DESC in FY08 to provide contingency contract support to FEMA in the event of natural or man-made disasters in FEMA Region VI (TX and LA) and FEMA Region IV (MS, AL, FL, GA, SC and NC) with the primary regional threat of hurricanes. A contingency contract was established well in advance of any contingency. It proved to EHEHQH¿FLDOIRUDOOVWDNHKROGHUVDVLWDOORZHG'(6&DQG)(0$to focus on operations rather then how to administratively support such a contingency. Leveraging DESC’s ground fuels PORTS system to place orders effectively standardized the ordering process and further enhanced responsiveness and execution. In addition, the team conducted a proof-of-concept drill at Meridian NAS, so if a real life contingency happened they would be prepared and able to ensure all objectives and requirements were fully met. The drill allowed intra-governmental cooperation and the incorporation of lessons learned, which ultimately paved the way for successful execution when our country needed us most. DESC successfully supported back-to-back contingencies (Hurricanes Gustav and Ike) in 2008 through a developed and proven solution for ground fuel support and strong command and control. Hurricanes Gustav and Ike affected the Gulf Coast (TX and LA) by shutting down 13 UH¿QHUVWRWDOLQJPLOOLRQEDUUHOVSHUGD\RIFDSDFLW\DQGUHGXFLQJRSHUDWLRQV OHYHOV DW  DGGLWLRQDO UH¿QHULHV 8OWLPDWHO\ *XVWDYand Ike produced no adverse impacts to DESC Americas DFSPs, QARs or operations. DESC Americas supported the hurricane requirements by deploying to the Continuity of Operations Plan (COOP) site in San Antonio, dispatching DESC LNO to NORTHCOM headquarters and pre-positioning QARs as FEMA LNOs to continually monitor contract performance on site and resolve communication barriers. DESC monitored the contract’s performance 24/7, ensured adequate funding and seamlessly placed orders to support growing requirements that emerged as a result of back-to-back presidentially declared disasters. DDF’s 

contingency contract provided support for 123,39fuel to 9 National Logistics Staging Areas (NLessential resources needed for evacuation, searcforward positioning of critical supplies. Supporfor 47 days. DESC ACTIVATES AND VALIDATES CAmericas validated the ability to operate from thtwice during the 2008 Atlantic hurricane seasonCOOP in response of two storms that threateneDESC Americas’ COOP site is located at DESC A6DQ$QWRQLR7;'(6&$PHULFDV¿UVWRSHUDWHsupport of Hurricane Gustav, which made land2008, 35 miles southwest of New Orleans, LA. DESC Americas operated from the site was case scenario of a major storm strike to Housto(Hurricane Ike) in September 2008. Both Callowed DESC Americas to provide support to FEresponse efforts in the Gulf Coast region. On both redeployment from the COOP site back to Houstowithout incident. DESC AMERICAS FLAGSHIP TERMHOUSTON) DAMAGED BY HURRICAN+RXVWRQWKH'(6&$PHULFDVÀDJVKLSKXEWHUPLthe Houston Ship Channel, was knocked out of IHHWRIÀRRGZDWHUVIURP+XUULFDQH,NH')63+terminal owned and operated by Magellan MiInc., reported the truck rack was damaged alon(JP-5, 51 MBBLs), and Tank 363 (F-76, 51 MÀRDWLQJIURPWKHLUIRXQGDWLRQVDVDUHVXOWRIKHDYterminal. The terminal also lost power due to the the DESC Americas East Distribution Team, in coBulk Fuel and Tanker Branch, developed a consustain the mission. After several weeks and UHFRYHU\RSHUDWLRQV')63+RXVWRQ¿QDOO\UHWXUQ

status and with a 25M-BBL Colonial Pipeline b
21-day journey to the Norfolk Naval Base, VA. 

DESC SUPPORTS CALIFORNIA WILDFIRE RELIEF: As was widely seen throughout the nation, the state of California was WKHVFHQHRIRQHRIWKHODUJHVWZLOG¿UHRQUHFRUG2FWREHU,Wwas reported in the press that at least 1,500 homes were destroyed and over 500,000 acres of land burned across southern California, creating a need for rapid relief efforts. DDF was called to assist ZLWKHPHUJHQF\ IXHO UHTXLUHPHQWVLGHQWL¿HGDW&DPS3HQGOHWRQMarine Corps Base, as all electrical power had been lost at the EDVHGXHWRWKHXQFRQWUROOHGZLOG¿UHVWKDWUDYDJHGWKHDUHDThe DDF fuels team for California started making calls to the vendors to identify those willing to support Camp Pendleton and make arrangements for fuel to be delivered to Camp Pendleton’s power generators for area 43. Fuel deliveries to Camp Pendleton continued uninterrupted until the San Diego Gas & Electric restored power to the base. AFRICOM JOINT PETROLEUM OFFICE OPERATIONAL:$)5,&20 ZDV GHFODUHG D XQL¿HG FRPPDQG LQ 2FWREHU DESC-ME and DESC-EU inventory managers, QARs, contract WHFKQLFDO UHSUHVHQWDWLYHV DQG RSHUDWLRQV RI¿FHUV¶ FRXQWHUSDUWVworked together to achieve a smooth transfer of responsibilities from DESC-ME to DESC-EU as the HOA shifted from USCENTCOM to AFRICOM. AFRICOM has administrative responsibility for U.S. military support to U.S. government policy in Africa, to include military-to-military relationships with 53 African nations. Through the DESC LNO to EUCOM, DESC-EU helped establish a JPO within the AFRICOM logistics division. A dedicated DESC LNO to AFRICOM is assigned to the AFRICOM JPO, which augments its U.S. Navy JPO chief and U.S. civilian ORJLVWLFVSODQQHU$)5,&20-32KDVDOUHDG\SOD\HGDVLJQL¿FDQWrole in improving support to Camp Lemonier, Djibouti and in supporting the U.S. Navy African Partnership Station activities in the Gulf of Guinea.AFRICOM STANDS UP: As AFRICOM stood up, it became 

increasingly important to gain additional insights imarket in the Africa region. DESC’s Bunkers PHB) led the efforts to gain this perspective to the many challenges facing fuel procurement in IXHOVSHFL¿FDWLRQVVHFXULW\LQIUDVWUXFWXUHEXVLQcompetition. An extensive market research ef1RYHPEHUZLWKDUHTXLUHPHQWVEULH¿QJWRNaples, Italy, and the release of a Request for InfZHUHDQDO\]HGDQGXVHGWRVROLGLI\¿QDOUHTXLUHPbriefed during the EUCOM Petroleum LogistiMarch 2008. Subsequently, a competitive solicito pursue coverage through the AOR for over 90 15 countries. Additionally, in partnership with fellow DESC counterparts, and industry, DESto plan and execute two success pre-proposal cothe Worldwide Energy Conference and one in C$IULFD7KXV IDU GXULQJWKH SURFHVV RI ULJRURXV

negotiations, potentially more than 50 line itebeen targeted to utilize the new open market futhe SEA Card® OM Program, with a DESC-RI¿FHU DZDUGLQJ DQG DGPLQLVWHULQJ D OLRQ¶V VKDAlthough additional activities are still ongoing, it $)5,&20ZLOOEHDEOHWRRSHUDWHLWVPLVVLRQZLthat mechanisms to obtain fuel are ready.CAPITALIZATION ENHANCEMENT: AMulti-National Forces Iraq (MNF-I), a team visited eight bases during the period of 29 Jan ascertain the readiness of those sites for capitalizsolutions were provided and out briefs were concommand to provide follow-on guidance to prepacapitalization requirements. Three bulk sites (Al Aand Speicher) were capitalized in June 2008, and were brought under the umbrella of existing capiThe upfront efforts of the DESC-ME team greathe successful transition from Service accountin
to DESC accounting responsibilities. 

HISTORIC AVIATION SYNTHETIC FUEL PROCUREMENT: DESC-EU performed quality assurance RQWKH ¿UVWHYHU SURFXUHPHQW RI )LVFKHU7URSVFK ,623DUDI¿QLFKerosene (FT-IPK) from SASOL Oil Ltd, in Johannesburg, South Africa. This Fischer-Tropsch processed synthetic aviation fuel (synfuel) supports the U.S. Air Force synthetic fuel initiative and its program to test, evaluate and certify aircraft using a 50:50 synthetic fuel blend. In late July 2008, a DESC-Europe QAR witnessed the sampling, testing and loading of 12 intermodal containers (60,000 USG) of the FT-IPK at the SASOL Oil Secunda, South Africa UH¿QHU\7KHSURGXFWPHWWKHVSHFL¿FDWLRQ UHTXLUHPHQWVDQGWKHQAR accepted the product on behalf of DESC.DESC HELPS INCREASE SOUTHCOM MARITIME LOITER TIMES: In 2008, the SOUTHCOM Commander established a bilateral Memorandum of Understanding (MOU) for the Chilean Navy to provide at-sea replenishment support to SOUTHCOM maritime operations. DESC Americas and DESC headquarters worked with SOUTHCOM to increase the number of bunker locations a Chilean Navy oiler could use to perform resupply missions in the SOUTHCOM area of focus. DESC teamed to coordinate Marine Gas Oil (MGO) fuel requirements from DESC Bunker locations and then reconcile transactions. 7KH028ZDVIRUGD\VDQGUDQIURP)HE±$SU7KHChilean Oiler, Araucano, increased the operational and maritime loiter time for U.S. counter-narcotic maritime forces. DESC’S UTILITY PRIVATIZATION PROGRAM: FY08 was another banner year for DESC’s Utility Privatization Program. During the FY, DESC’s dedicated team of contracting and engineering professionals privatized 4 utility systems for the U.S. Army and 2 for U.S. Air Force. The total contract value for utility services to be provided is over $706 million. Working with DESC as its appointed contracting agent, the teams were able to meet the Army’s and Air Force requirements. 

DLA PARTNERS WITH THE U.S. AIR UTILITIES PRIVATIZATION: On Sept. 17Director met with the Deputy Air Force Civil EMemorandum of Agreement (MOA). This MOpartnership between the U.S. Air Force and DDESC will provide Utilities Privatization conservices through FY17. This agreement expandmission from a pre-award focus, to include thof awarded Utilities Privatization contract serapproximately 172 utility distribution and collectAir Force Utility Privatization Program. This is toward developing future partnerships between DESC for utility energy services, renewable efuels andeEnergy conservation measures. NATURAL GAS: During the previous FY, DE

team completed a comprehensive solicitation which resulted in several improvements to its apractices. Of particular importance, this revteam identify opportunities to streamline its PRUH HI¿FLHQW DQG HIIHFWLYH SURFHVVHV WKDW Zcommercially accepted standards. With contract to expire September 2008, DESC’s Natural Gas tthese new process improvements and issued its lsolicitation to date. These events promoted the of over 112 million dekatherms of natural gas $1.1 billion. Additionally, the team experienced in competition from the previous procurement, increase from small businesses. INVENTORY ACCOUNTABILITY MISSAmericas began planning to organize for succerelative the taking on new responsibilities assimpending decentralization of the Inventory (IA) mission. IA implementation and assoactions included the transfer of responsibilDFSP Management (DESC-N) to DESC Ame
month (EOM) reconciliations for 169 sites in July, November 

and December. DESC Americas East assumed reconciliation responsibilities for the last 125 sites in January 2009. At the conclusion of all transfers, DESC Americas East will be responsible for reconciliation of 294 locations and 1,082 accounts. Also in FY09, DESC Americas West will begin transfer of the Kinder Morgan distribution systems and Direct Deliver and West Coast Barge/Pipeline. The new IA teams aggressively work ledgers in RUGHUWRKHDGRIIDQ\GLI¿FXOWLHVZLWKWLPHO\(20UHFRQFLOLDWLRQout-of-tolerance gains or losses, and/or excessive variances for DOO PRYHPHQWV +LULQJ DFWLRQV DQG DQ RI¿FH H[SDQVLRQ ZHUHnecessary as the total DESC Americas end-strength will grow by 13 to accomplish the new IA mission. INITIATION OF INSTALLATION LEVEL REVIEW (ILR) IN SUPPORT OF THE SUSTAINMENT, RESTORATION AND MODERNIZATION (SRM) PROGRAM: The ILR LV D ¿YH\HDU F\FOH RI YLVLWLQJ DOO '2' LQVWDOODWLRQV KROGLQJDESC fuel in government owned real property and assessing the condition of fuels infrastructure. The overall goal of the ILR is to assist DESC in programming funding to bring Service owned fuel systems storing and distributing DESC capitalized fuel into compliance with appropriate operating standards. In February 2008, DESC awarded a contract to a contractor team of BAH, DRS-TSI, RK&K, and Encore for the performance of the ILR at POL facilities on military service installations. ILR data is entered into the SRM database called SRM-E. There are 489 installations scheduled for visits with the goal of completing the assessments by mid 2011. By the end of FY08, 90 sites had been visited. U.S. AIR FORCE GOVERNMENT OWNED CONTRACTOR OPERATED BULK STORAGE: DESC awarded 21 contracts valued at $90,255,676 for contractor provided bulk aviation and ground fuel storage operations and maintenance at 46 Air Force EDVHVZRUOGZLGH7KLVLVD VLJQL¿FDQWFKDQJHLQ UHVSRQVLELOLWLHVfor both the Air Force and DESC. The program supports DESC’s expanding role to provide total supply chain management. This 

program also facilitates Air Force compliancBudget Decision (PBD 720) manpower reductE\ VKLIWLQJ SHUVRQQHO IURP VXSSRUW FDSDELOLWLHcapabilities. The effort is projected to save the DRESOLVING CHALLENGES IN JAPAN Historically, the DESC-PLB has been faced challenges in supporting both ultra low sulfur gasoline requirements in Okinawa, Japan. availability, stricter environmental regulations reduction of sulfur in diesel fuel, and the pendinUH¿QHU\RQ2NLQDZDPDGHLWLPSHUDWLYHWKDWWKH

make fuel support in Okinawa a high priority. Iwas able to negotiate a contract to support the Mon Okinawa for a 12-month period. This provisolution, which would allow the contracting teareassess support capabilities on the island. To effthe issues, the team met with several vendors. WHDP UHFHLYHGZRUGWKH QHZ RZQHUV RIWKH UH¿were very interested in doing business with DDESC-PLB has awarded over 20 million gallonmillion gallons of FJ-1 to three vendors.NEW DINITROGEN TETROXIDE (N2OCONTRACT: A new contract to haul Dinitrogen in bulk trailers was awarded to Superior Carriewhich has a carrier terminal in Sulphur, LA, showcost savings because their terminal is in close proM’s N2O4 supplier in Yazoo City, MS. Superior for DESC for many years and proved again thservice cost is a best value to the government. DESC SUPPORTS THE ECONOMIC CORE

with the Small Business Act, it is the policy oto provide maximum practicable opportunities ito small business, veteran-owned small businessveteran-owned small business, HUBZone smal
disadvantaged business and women-owned small business 

concerns. Such small businesses must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with HI¿FLHQW FRQWUDFW SHUIRUPDQFH 7KH JRYHUQPHQW UHFRJQL]HGearly on that the small business was at the very core of the U.S. economic stability. In order to facilitate the participation of small businesses in federal contracting, the Small Business Specialist (SBS) was created. The SBS’s primary function is to be the bridge that connects the small business community to the federal contracting community. The SBS utilizes several means of outreach (counseling, conferences, focus events and roundtable discussions) to engage, educate and empower the small business community. Counseling and roundtable discussions are designed to provide the small business with technical advice regarding the federal contracting process, information on the agency, and a platform to be heard. DESC has held over 21 counseling and roundtable discussions for every category of small businesses. Many of these included contracting representatives from the different Commodity Business Units (CBUs) within DESC and focused on alternative energy (biodiesel B20), GOCOs and environmental remediation service type contracts. These efforts have assisted tremendously in increasing the industrial base to support DESC’s mission. Additionally, it provided the small business community with the necessary resources to compete for opportunities with DESC. DESC’S SUBCONTRACTING PROGRAM: The mission of the 6PDOO%XVLQHVV2I¿FH¶V6XEFRQWUDFWLQJ3URJUDPLVWRHQVXUHWKDWdomestic small businesses receive a fair and equitable opportunity to participate in requirements awarded by DESC, including subcontracts resulting from award of prime contracts. A major role of the Subcontracting Post Award Team is conducting reviews of DESC Prime Contractors small business and subcontracting programs. The Small Business Program Review can have a VLJQL¿FDQWLPSDFW RQWKH ZD\ DODUJH FRQWUDFWRU DGPLQLVWHUVLWV

small business program. Reviews by DESC, thAdministration or Defense Contract Managemoften the only formal evaluation of a contractor’s its subcontracting plans. Areas addressed during sourcing, the SBS may be able to help a contresources to locate small business concerns ffuture contracts; validation of the SubcontracIndividual Contracts/Summary Subcontract ReWUHQGDQDO\VLVWKHFRQWUDFWRU¶VSHUIRUPDQFHIRUW

(or for as many years available); and overall contractor’s subcontracting program good faith eSmall Businesses an opportunity to compete. ThMentor Protégé programs is being stressed fosubcontracting goals during program reviews%XVLQHVV 2I¿FH '(6&'8 FRQGXFWHG  3during 2008. The Post Award Team also conducOrientation and Assistance Reviews (SOARs). A formal process/visit to a contractor facility to pto the contractor in elevating its small business pcases, a SOAR will be a site visit conducted basis to encompass a variety of purposes, sucproblem with the ISR/SSR detected during a Perfdiscussing the required capabilities of small for an upcoming or current project, training contractor on new small business program issugoal category or new legislation, and getting fwith a new company such as touring the plant or mEX\HUVDQGWKHFRPSDQ\¶VVPDOOEXVLQHVVOLDLVRDU conducted 11 SOARs during FY08. In preparation for the Electronic SubcontrSystem (eSRS) to be implemented in Octobeof the Post Award Team attended training sessioand offsite to enhance knowledge of the systeeSRS is an internet-based tool created to streamof reporting on subcontracting plans and provi
access to analytical data on subcontracting performance. eSRS 

is the mandatory postaward system for all DOD. Initial training to DESC’s acquisition workforce was held in July 2008. The WUDLQLQJZDVSUHVHQWHGE\ UHSUHVHQWDWLYHV IURPWKH2I¿FHRIWKHSecretary of Defense and the Business Transformation Agency. 82 DESC employees attended this initial training where contracting RI¿FHUVDQGFRQWUDFW VSHFLDOLVWVZHUHWUDLQHG RQ VSHFL¿FDFWLRQVUHTXLUHG E\ WKHLU DVVLJQHG UROH DV HLWKHU D &RQWUDFWLQJ 2I¿FLDO(CO) or Designated Government User (DGU). Online training ZDV FRQGXFWHG E\ WKH 6PDOO %XVLQHVV 2I¿FH IRU PHPEHUV RIthe DESC Acquisition Workforce who were unable to attend WKHSUHVHQWDWLRQ$OOFRQWUDFWLQJRI¿FHUVDQGFRQWUDFWVSHFLDOLVWVare required to complete training prior to registering for system access. Additional training was facilitated by the Subcontracting Program Manager for non-DESC employees assigned to other DLA agencies who were also preparing for eSRS implementation. Over 150 employees and 20 vendors were successfully trained on the registration and use of the system. Training is ongoing for DESC employees who have not had an opportunity to attend any of the prior sessions. Assistance is also being provided to vendor SHUVRQQHO ZLWK V\VWHP GLI¿FXOWLHV RU PLVXQGHUVWDQGLQJ RI WKHLUreporting requirements in eSRS. DESC SMALL BUSINESS CONFERENCES: DESC hosted two Small Business Networking and Training Conferences in Baton Rouge, LA, in December 2007 and Naperville, IL, in June 2008. DESC’s primary objective for these conferences were to enhance small business services in the areas of: petroleum UH¿QHULHVWHUPLQDOVLQ WKH SURGXFWLRQ RI DYLDWLRQ IXHOV DYLDWLRQgasoline, Naval Fuel Distillate (F76), gasohol, gasoline, diesel fuels, heating oils, and alternative fuels (biodiesel “B20”, ethanol “E85”); suppliers of natural gas; producers of aerospace fuels to include liquid propellants, non-propellant cryogens and compressed gases; suppliers of electricity including wind, biomass and geothermal renewable energy: suppliers of coal; managers of GOCO/COCO storage terminals; and utility privatization 

services. Breakout sessions were held by reprDESC CBUs, the Small Business AdministratTechnical Assistance Centers, DLA and DESC 2I¿FHVWR SURYLGHWUDLQLQJ DQG RSSRUWXQLWLHV IR

questions, develop partnerships and to network wDQGJRYHUQPHQWRI¿FLDOVINDIAN HEALTH SERVICE SYMPOSIUM

effort to enhance customer relationships and acquiDESC-PLB sent a representative to the 2008 IndiaProcurement Symposium in Rapid City, SD. Thian opportunity to further strengthen DESC’s relakey non-DOD partner. The Indian Health Service attended by 50 Indian Health Service and Bureau representatives from throughout the Customer Oregion. Currently, DESC provides fuel support tHealth Service and Bureau of Indian Affairs loand South Dakota, Minnesota, Nebraska, and Neof the requirements DESC supports were as a procurement symposium held, and DESC’s suppto steadily increased. EXECUTIVE AGENT PROGRAM: The D$JHQW 2I¿FH '(6&; DQG WKH EXON SHWUROrepresented by the Component Steering Group to move forward on important issues.The Terminal Operations Service (TOS) effostandard performance work statement for DFSP produced a basic module ready for coordination.Resupply of Petroleum, Oils and Lubricants (REPa SIPRNET web-based construct, begun under th0DQDJHPHQW ,QWHJUDWHG 3URFHVV 7HDP ZDV ¿fruition by DESC’s Contingency Plans and Op(DESC-DL). The Joint Staff informed the CSG twould begin using the new REPOL in early FY0In support of the DLA Fusion Center, DESC-X 
set in motion the Bulk Petroleum Common Operating Picture (BPCOP) initiative. The contracted effort provides the basis for a 

IXQFWLRQDOUHTXLUHPHQWVGH¿QLWLRQ7KHLQIRUPDWLRQFRQWDLQHGLQthe study serves as a starting point for future development efforts in support of DESC and DLA efforts through the Information Technology Capability Request (ITCR) process.7KH%XON3HWUROHXP$XWRPDWLF ,GHQWL¿FDWLRQ7HFKQRORJ\ $,7initiative began with a Concept of Operations (CONOPS) study to identify appropriate AIT baselines within the community. The purpose of the effort is to further enhance bulk petroleum operations and safety, increase data capture accuracy and potentially reduce manpower. Further study is planned to achieve the objective of applying AIT media where it is effective and prudent to improve bulk petroleum supply chain management.The First Article Test (FAT) was completed on the initial collapsible fuel storage tank (bladder) built to the new collaborative joint VSHFL¿FDWLRQ'(6&;SURYLGHG([HFXWLYH$JHQW($IXQGLQJfor the testing of two out of the four U.S. Army TACOM contracts awarded for such bladders. In FY08, FATs were the beginning steps toward standardizing tactical fuel storage.In an effort to further enhance bladder performance, DESC-X awarded a Congressionally-mandated Research and Development effort in the amount of $1 million. The project will continue for 12 months and produce technical report documenting viable improvements to bladder fabrication techniques and tank design.TEMP & API COMPENSATING METER PROJECT: In 2008, DESC-X initiated a DESC Americas proposal to install Temperature and API Compensating Meters (TACMs) at six locations in the DESC Americas. The $600,000 TACM program is managed by DESC-X and will collect 6 months of data at each location. DESC Americas West took the lead and established the test bed that included one Navy, one Marine Corps, one Army, two Air force and one DFSP location. The data collected at each site is being examined for inventory accuracy and transaction timeliness. The data on Camp Pendleton, CA, and DFSP San Pedro, CA, 

has been collected and DESC representatives, 2I¿FHRI2SHUDWLRQV5HVHDUFKDQG5HVRXUFH$Qrepresentatives met at DFSP San Pedro, CA, to dprogram managed by DESC-X. The group escenarios and analyzed meter technology to deteTank truck loading and unloading procedures wDFSP San Pedro and Camp Pendleton, CA, and reviewed for loss/gain determination.The TACM program is expected to show tVLJQL¿FDQWO\ EHWWHU WKDQ WKH VWDWXV TXR $XWRPor hand gauging after receipts for quantity deremaining locations will be examined in 2009. ENVIRONMENTALLY PREFERABLE F-7

maximum sulfur content of NATO Code F-76 fuel was reduced from 1.0% to 0.5%. The limit had been in effect for 50 years prior to 2step with worldwide reduction of sulfur confuel grades, DESC implemented lower sulfur spectrum of worldwide bulk fuel contracts. DE7HFKQLFDO6XSSRUW2I¿FHNHSWWKHFXVWRPHU1DYprogress of this conversion and briefed Allied this important transition. The Navy’s move to lDV GRFXPHQWHG LQ VSHFL¿FDWLRQ 0,/'7/to reduced levels of acid rain and supports the gGothenburg Protocol. BIOMASS TO ENERGY PROGRAM: DESand Bell Bio Energy are partnering to demonstrof Bell BioEnergy’s biomass to energy platfoinstallations and one DLA location (DFSP San Pinstallations are Fort Bragg, Fort Lewis, Fort SHill, Fort Benning and Fort Drum. If the technobe successful, the supply chain can be reduced by the area of operation and converting it to fuel at f
bases.

DINITROGEN TETROXIDE (N2O4) AND HYDRAZINE CONTAINER MEETING: DESC-M invited all N2O4 and Hydrazine customers, suppliers and manufacturers to attend and participate in the annual N2O4 and Hydrazine container meeting held at DESC-M, in San Antonio, TX, October 2007. The meeting was an excellent opportunity for all users to openly discuss container issues and get a chance to meet and network with DESC-M and industry counterparts. Container issues such as cylinder loading and unloading procedures, cylinder handling procedures, leak testing, standard prices, plant, property and equipment accountability, Department of Transportation (DOT) dockets, special permits and approvals and future endeavors were discussed.PERSONNEL DEPLOYED IN SUPPORT OF OIF/OEF: In 2008, DESC Americas had three personnel in theater supporting 2,)DQG2()7KH'(6&$PHULFDV2SHUDWLRQV2I¿FHUUHWXUQHGWRWKH+RXVWRQRI¿FHLQ)HEUXDU\DIWHUPRQWKVDVWKH'(6&LNO to MNF-I, DLA Contingency Support Team-Iraq (DCSTIraq). In July 2008, DESC Americas mobilized one of their USAR RI¿FHUVIRUD\HDUWRXUDVWKH([HFXWLYH2I¿FHULQ'(6&0(Finally, in October 2008, DESC Americas deployed their U.S. Air Force QAR for a 6-month tour in support of the DLA Support Team-Iraq (DST-Iraq) mission in Baghdad. PERSONNEL PROVIDED FOR DLA INITIAL RESPONSE TEAM (IRT):'(6&$PHULFDVLGHQWL¿HGIRXUSHUVRQQHODV&ODVVIII Specialists, each to be a part of a 5-member multi-discipline DLA Initial Response Team (IRT) . DLA IRTs are comprised of a select group of experts from across the agency that must be SUHSDUHGWRGHSOR\ZLWKLQKRXUVRIQRWL¿FDWLRQDQGHVWDEOLVKWKHinitial communication lines between the Combatant Commander, Joint Task Force, or federal agency, and the DLA Director. These select volunteers serve 1-year tours and form an enthusiastic team that provides continuity and an immediate source of information 

on DLA products and services. IRTs provide support in a joint operations area. Each IRT membspecialized training and equipment that readied this mission. In May 2008, DESC Americas depClass III Specialists to Fort Lewis, WA, as part to support Ardent Sentry 2008. The DLA IRT psupport to the Theater Sustainment Command anDESC SHIFTS HALF OF WORKFORNATIONAL SECURITY PERSONNEL SYNSPS is a human resources management system 5 U.S.C. 9902(a) that compensates and rewards on performance and contribution to the mission. IDESC transitioned 470 personnel, over half of its the General Schedule to NSPS. From May th2008, the newly-transitioned workforce learnthrough training sessions and workshops proemployees worldwide. In spring of 2008, an NSPexercise was held. The exercise was educationNSPS employees with valuable lessons on the In mid-August 2008, 353 DESC employees atte$VVHVVPHQWZRUNVKRSVKHOGDW¿YHVHSDUDWHVLWHworkshops focused on tips and techniques for wAssessments. DESC-H and NSPS trainers were training was professionally executed and informPool Panel deliberations took place from Octobe2008. All NSPS rating and pay actions were comby early January 2009.
Acronyms

Acronyms .......................................................................................................................91
ABO Aviator’s Breathing Oxygen

AC Austere ChallengeACM Air Cruise MissileAEP American Electric PowerAFRICOM Africa CommandAIM Air-to-Air Missile (Sidewinder)AIR Aviation Into-plane ReimbursementAIT $XWRPDWLF,GHQWL¿FDWLRQ7HFKQRORJ\ALCM Air-Launched Cruise MissileANG Air National GuardAOR Area of ResponsibilityARCENT Army Central CommandAVGAS Aviation GasolineBAH Booz Allen HamiltonBBL BarrelBP Beyond PetroleumBP-COP Bulk Petroleum Common Operating PictureBSC Balanced ScorecardBSM-E Business Systems Modernization-EnergyC2 Command and ControlCBU Commodity Business UnitCDC Customer/Depot ComplaintCENTCOM Central CommandCES Constellation Energy SourceCHPP Central Heat and Power PlantCJTP Combined Joint Task ForceCO &RQWUDFWLQJ2I¿FLDO

Acronyms
COCO Contractor-Owned Contractor-Operated

COCOM Combatant CommandCONOPS Concept of OperationsCONUS Continental United StatesCOOP Continuity of Operations PlansCPI Continuous Process ImprovementCPX Command Post ExerciseCRM Customer Relationship ManagementCSG Component Steering GroupCSM Customer Support ManagementCTF Combined Task ForceDB Direct BillDCST DLA Contingency Support TeamDDF Direct Delivery FuelsDEA Drug Enforcement AdministrationDES DLA Enterprise SupportDESC Defense Energy Support CenterDF Diesel FuelDFSP Defense Fuel Support PointDFSC Defense Fuel Supply CenterDGU Designated Government UserDLA Defense Logistics AgencyDOD Department of DefenseDOD-SCOMS DOD-SEA Card Order Management SystemDOE Department of EnergyDORRA '/$2I¿FHRI2SHUDWLRQV5HVHDUFKDQG5HVRXUFH$QDO\VLVDOT Department of Transportation

Acronyms
DPK Dual Purpose Kerosene

DSCR Defense Supply Center RichmondDST DLA Support TeamDTHS DekathermsDWCF Defense Working Capital FundEA Executive AgentEBS Enterprise Business SystemsECM Energy Conservation MeasureEOM End-of-MonthEPS Energy Performance ServicesESC Expeditionary Sustainment CommandESCO Energy Service CompanyESOH Environment, Safety and Occupational HealtheSRS Electronic Subcontracting Reporting SystemEUCOM European CommandFAA Federal Aviation AdministrationFAME Fatty Acid Methyl EsterFAT First Article TestFEA Fuel Exchange AgreementFEB Federal Executive BoardFEMA Federal Emergency Management AgencyFG Foreign GovernmentFMS Foreign Military SalesFOB Free on BoardFOC Full Operational CapabilityFPDS-NG Federal Procurement Data System-Next GenerationFT Fischer-Tropsch

Acronyms
FT-IPK )LVFKHU7URSVFK,623DUDI¿QLF.HURVHQH

FY Fiscal YearGE General ElectricGFP Government-Furnished PropertyGHP Geothermal Heat PumpGLOC Ground Line of CommunicationGOCO Government-Owned Contractor-OperatedGOGO Government-Owned Government-OperatedGSA General Services AdministrationGSHP Ground Source Heat PumpGWOT Global War on TerrorismHOA Horn of AfricaHPCA High Pressure Cylinder AssemblyHQ HeadquartersHVAC Heating, Ventilating and Air ConditioningIA Inventory AccountabilityIMM Integrated Material ManagerILR Installation Level ReviewIPA Isopropyl AlcoholIPT Integrated Process TeamIRFNA Inhibited Red Fuming Nitric AcidIRT Initial Response TeamISO Intermodal Shipping ContainerISR/SSR Individual Contracts/Summary Subcontract ReportITCR Information Technology Capability RequestJP Jet Petroleum (JP4, JP5, JP8, JP10, Jet A1, Jet B, etc.)JPO -RLQW3HWUROHXP2I¿FH

Acronyms
JPTS Jet Propellant Thermally Stable

JTF Joint Task ForceKPSC Korean Petroleum Support CenterKTR ContractorLNO /LDLVRQ2I¿FHULSA Lead Standardization ActivityLSS Lean Six SigmaMBBLs Thousands of BarrelsMCO Minor Construction OperatingMGO Marine Gas OilMOA Memorandum of AgreementMOGAS Motor GasolineMOH Motor Oil (Hellas)MOU Memorandum of UnderstandingMSC Military Sealift CommandMUM Midgrade Unleaded GasolineMUP Premium Unleaded GasolineMWR Morale, Welfare and RecreationNAS Naval Air StationNASA National Aeronautics and Space AdministrationNATO North Atlantic Treaty OrganizationNAVEUR Naval Command EuropeNAVPAC Navy Facilities Engineering CommandNAVSOUTH Naval Forces SouthNCOIC 1RQ&RPPLVVLRQHG2I¿FHU,Q&KDUJHNLSA National Logistics Staging AreaNORAD North American Aerospace Defense Command

Acronyms
NORTHCOM Northern Command

NPV Net Present ValueNSN National Stock NumberNSPS National Security Personnel SystemOCONUS Outside Continental United StatesOEF Operation Enduring FreedomOIF Operation Iraqi FreedomOM Open MarketOPA-90 Oil Polution Act of 1990OPDS Offshore Petroleum Discharge SystemOPLANS Operational PlansOSD 2I¿FHRIWKH6HFUHWDU\RI'HIHQVHPACOM 3DFL¿F&RPPDQGPANAMAX Panama ExercisePBD Program Budget DecisionPC&S Posts, Camps and Stations ContractPF-1 Priming FluidP/L PipelinePOL Petroleum, Oil and LubricantsPORTS Paperless Ordering and Receipt Transaction ScreensPOTUS President of the United StatesPP&E Plant, Property and EquipmentPQDR 3URGXFW4XDOLW\'H¿FLHQF\5HSRUWPQIS Petroleum Quality Information SystemQA Quality AssuranceQAR Quality Assurance RepresentativeQAS Quality Assurance Specialist

Acronyms
QLLEX Quartermaster Liquid Logistics Exercise

QS Quality SurveillanceR&D Research and DevelopmentREC 5HQHZDEOH(QHUJ\&HUWL¿FDWHREPOL Resupply of Petroleum, Oils and LubricantsRIE Rapid Improvement EventRK&K Rummel, Kepper and KahlRIK Replacement-In-KindRIMPAC 5LPRIWKH3DFL¿FROK Republic of KoreaROK MND Republic of Korea Ministry of National DefenseRP-1, -2 Rocket PropellantRTC Retail Tank CarSAP System Analysis and Program DevelopmentSAPO 6XE$UHD3HWUROHXP2I¿FHSBS Small Business SpecialistSEA Ships’ Bunkers’ Easy AcquisitionSIPRNET Secure Internet Protocol Router NetworkSK South KoreanSOAR Subcontracting Orientation and Assistant ReviewSOUTHCOM Southern CommandSPAWAR Space and Naval Warfare Systems CommandSRM Sustainment, Restoration and ModernizationSRM-E Sustainment, Restoration and Modernization-EnergySynfuel Synthetic Aviation FuelTACM Temporature and API Correcting MeterTACOM Tank-Automotive and Armaments Command

Acronyms
THAAD Terminal High Altitude Area Defense

TOS Terminal Operations ServiceTS1 Russian Grade Aviation FuelTrans BN Transportation BattalionUAE United Arab EmiratesUAV Unmanned Aerial VehicleUESC Utility Energy Service ContractsUFG Ulchi Freedom GuardianUK MOD United Kingdom Ministry of DefenceUMCS Utility Management and Control SystemUS United StatesUSA United States ArmyUSAF United States Air ForceUSAFE United States Air Force EuropeUSAR United States Army ReserveUSAREUR United States Army EuropeUSCENTCOM United States Central CommandUSFK United States Forces KoreaUSMC United States Marine CorpsVFD Variable Frequency DrivesVPP Voluntary Protection Program

Acronyms
Defense Energy Support Center

8725 John J. Kingman Road

Fort Belvoir, VA 22060

www.desc.dla.mil