Bulk PetroleumExecutive Agent

Cynthia F. SmithPETRO

May 30, 2012

Overview

• DLA Energy – Historical Perspective

• Executive Agent for Bulk Petroleum

• Evolution of DLA Energy’s EA Program

• A Way Ahead -- EA 2021

• EA 2021 – Vision for the Future

• Summary

DLA Energy – Historical Perspective

Army/Navy Petroleum Board 1942

Joint Army/Navy Petroleum Purchasing Agency 1945

Armed Services Petroleum Purchasing Agency 1948

Military Petroleum Supply Agency 1957

Defense Petroleum Supply Center 1962

Defense Fuel Supply Center 1964

“Integrated Materiel Manager” Designation for Class III 1973

Wholesale Expansion 1993

Defense Energy Support Center 1998

Assumed Missile Fuels 2001

Retail Integration Ongoing

Executive Agent 2004

Defense Logistics Agency Energy 2010

DLA Energy – Historical Perspective - Terms -

• Lead Nation– “One  nation, based on capabilities, agrees to assume the responsibility for procuring and

providing a broad spectrum of logistic support for all or a part of the multinational force and/or headquarters.” (NATO Logistics Handbook 1319, Chapter 13)

• Integrated Materiel Manager– The IMM attempts to oversee “… a logistic concept utilized when a single agency of the

Department of Defense has total management responsibility for supplying a specific product or group of related items to the Armed Forces of the [U.S.].” (Joint Publication 4.03)

• Supply Chain Manager– The SCM attempts to achieve “The added value produced for the end user or ultimate

consumer by integrating the processes involved in managing the flow of products, services, and information from supplier to the end user.  The process of orchestrating the end-to-end plan, source, make, deliver, return process within the supply chain, and establishing the collaborative processes between the organizations supplier's supplier and its customer's customer.” (DoD Directive 5101.8)

• Executive Agent– “The Head of a DoD Component to whom the Secretary of Defense … has assigned

specific responsibilities, functions, and authorities to provide defined levels of support for operational missions, or administrative or other designated activities that involve two or more of the DoD Components.” (DoD Directive 5101.8) 

Executive Agent for Bulk Petroleum- Policy / Responsibilities -

DoDD 5101.8, DoD Executive Agent for Bulk Petroleum (Aug ‘04) • Defense Logistics Agency (DLA Energy) shall:

– Execute supply chain management– Share and leverage DoD resources– Ensure standardization and interoperability– Expand joint petroleum training

• Combatant Commanders shall:– Integrate EA into joint operations planning and execution– Integrate EA analysis and recommendations during planning

• Military Departments shall:– Budget and fund reimbursement for goods and services– Ensure organic capabilities exist to meet EA responsibilities

Executive Agent for Bulk Petroleum- Partners -

• Military Service Control Points want:– Value added from EA pursuits

– Selected funding by DESC of operations / items

– Participation in decision making

– Equitable and reasonable cost spread

• COCOMs want:– Rapid response to theater problems

– Simple POC arrangements

– Coordinated Joint positions

– Movement / action

Evolution of DLA Energy’s EA Program

• November 2004: DLA Energy built program to comply with DoD directive 5101.8, DoD Executive Agent for Bulk Petroleum

• June 2005:. EA end state identified merely as a “state of affairs” in the initially developed roadmap documents

• December 2009: Program initiatives successfully moved EA effort forward. However, no clear end state established -- too difficult to do --different approach needed

• December 2011: EA 2021 Concept to adjust program inertia, clearly identify EA end state, and refocus on appropriate supply chain activities

A Way Ahead – EA 2021

• More effective execution of policy stated in DoDD 5101.8

• Quicker elimination of redundancy

• Improved supply chain visibility

• Identification of all capable funding arrangements to accommodate

potential expanded mission demands

• Measurable performance standards

• New EA strategic plan with implementation strategy

A Way Ahead – EA 2021Integration of EA Focus Areas and EA 2021 Thrust Points

Planning

Operations

Equipment & Facilities

Resources

Training & Education

Product Standard & Quality

E2E Distribution

Information Mgmt

Equipment & Training

Quality

EA 2021 Thrust Points

EA Office Focus Areas

A Way Ahead – EA 2021Alignment with DLA Strategic Goals

EA 2021 – Vision for the Future- Warfighter Support -

• Planning

– Create more robust / centralized operations center

– Establish common reporting system

• Operations

– Build efficiencies / effectiveness into the supply chain

– Improve interoperability

• Product Standards and Quality

– Combine military / commercial standards

– Integrate / maintain product quality

– Enhance role alternative fuels acquisition manager

EA 2021 – Vision for the Future- Stewardship Excellence -

• Equipment and Facilities

– Standardize specifications

– Consolidate requirements and centralize acquisitions

– Optimize life cycle management

• Resources

– Optimize supply chain management

– Leverage DoD resources

EA 2021 – Vision for the Future- Workforce Development -

• Training and Development

– Enhance petroleum training courses

– Establish a career field education program

– Benchmark energy training / education opportunities

• DLA Energy’s Executive Agent program:

– Robust program

– Fully integrated with the Military Services and COCOMs

• EA 2021:

– A strategic vision for the Bulk Petroleum Supply Chain

– Critical for long term success in a fiscally constrained environment

Summary

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DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT SUPPORT LOGISTICS AGENCY

DEFENSE LOGISTICS AGENCYAMERICA’S COMBAT SUPPORT LOGISTICS AGENCY

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