October 2014

32 Pages·2014·7.82 MB·English

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CONTENTS
from the commander
Our strategy will also
address a number of
larger Department of
Brig. Gen. Mark McLeod, USAF Defense imperatives,
including aging fuel
DL
Defense Logistics Agency Energy infrastructure through our
military construction and
Sustainment, Restoration
All men can see these tactics whereby I conquer, but what and Modernization
4
none can see is the strategy out of which victory is evolved programs, right-sizing
– Sun Tzu that infrastructure
in cooperation with
In the coming weeks, we’re putting a lot of DLA “Energy” commercial partners,
into revising our global petroleum strategy for the De- and lowering overall
8
partment of Defense. Our premiere kickoff event in the environmental risk.
endeavor, which you can read more about in this edition, Our partnerships
takes place this month here — the United States Pacifi c with Department of
12
Command Fuel Wargame. Energy, DoD and other
government agencies
The DLA-hosted wargame will culminate several years will lead the world in
of effort borne out of President Barack Obama’s declara- operationalizing biofuels and other alternative fuel sources 16
tion of U.S. “Rebalance” to the Pacifi c. In order to set the for our customers. DLA Energy will also seek to delight
theater for successful operations, we’ll ensure there is suf- those same customers by cutting materiel and operating
fi cient fuel from the global supply chain, available through costs.
20
agile military and civilian delivery means to resilient and
dispersed locations, and all backed up with an enduring On the topic of strategy, Jack Welch, the former CEO of
strategic theater reserve. Those objectives lie at the heart General Electric, once said that “you’ve got to eat while
of larger strategic resource allocation decisions on behalf you dream …” So expect us to not only continue delivering
of our global combatant commanders, designed to coun- world-class quality and quantity on our short-term com-
ter developing anti-access/area denial capabilities, lower mitments, but to develop and implement the long-range
warfi ghter risk and clearly demonstrate America’s commit- strategy and vision that ensures victories “none can see.” En
ment to partner nations through liquid logistics. United
States Central Command “setting-the-theater” discussions
will follow shortly thereafter to ensure that we continue to
be postured to execute defense planning guidance against 24
any potential foe around the world in the coming decade.

Energy Source
Commander Energy Source is an offi cial publication distributed by and for the Defense Logistics
Agency Energy and energy-oriented clientele. Contents of this publication are not
Air Force Brig. Gen. Mark McLeod
necessarily the offi cial views of, or endorsed by, the U.S. government, Department
Deputy Commander
of Defense, Defense Logistics Agency or Defense Logistics Agency Energy.
George Atwood Energy Source is prepared by desktop publishing applliiccaattiioonnss.. W
Chief of Staff Photos not credited are courtesy of DLA Energy sources..
Army Col. Peter Crean
Address correspondence to:
Public Affairs Offi cer ATTN: DLA Energy-DCA 28
Irene Smith 8725 John J. Kingman Rd.
Editor Suite 4950
Jonathan Stack Fort Belvoir, VA 22060-6222 31
Writing Staff Commercial: 703-767-4108
Terry Shawn Address email to:
Susan Lowe [email protected]
Christopher Goulait
Layout/Design Front cover by: Jonathan Stack
Back cover by: Jonathan Stack
Jonathan Stack
2 www.energy.dla.mil
CCOONNTTEENNTTSS
DLA Energy HQ
4
Welcoming a New Commander
4
Welcoming a New
Commander DLA Energy Commander Air
Force Brig. Gen. Mark McLeod
sits down with the Energy Source
8
Time is Money editor and discusses his vision for
the organization.
12
A Valuable Tool
16
Wargame Prep
16
Wargame Prep
20
Revitalizing Infrastructure A wargame putting the Pacifi c’s
fuel network to the test will focus
on determining improvements
Sept. 29 to Oct. 3 at the Center
for Naval Analysis Complex in
Arlington, Virginia.
Energy
24
Environmental Restoration
24
Environmental
Restoration
Defense Logistics Agency Energy
funds the environmental resto-
ration projects turning fuel and
chemically contaminated land
into parks and open recreation
space.
We Are DLA
28
Helium Drawdown
28
Helium Drawdown
Operations in Afghanistan are
drawing down to enduring
31
One Face locations, the Army’s reconnais-
sance and surveillance aerostat
program is reducing its numbers,
and DLA Energy is involved in a
drawdown of the helium supply
chain.
Energy Source l October 2014 3
WWeellccoommiinngg aa NNeeww Commander
Air Force Brig. Gen. Mark Mcleod
r
By Jonathan Stack g
t
ES: How has your time at Defense Logistics Agency En- c
ergy been? t
b
McLeod: This has been an absolutely splendid landing for me e
here at DLA Energy. It’s an organization with a lot of the same
goals and objectives as I had at U.S. Pacifi c Command where I was A
the J-4, and I’m kind of excited about laying down strategic frame- t
work for the next fi ve years and then sharing that with everybody.
E
ES:What do you do on the typical day as the commander? y
a
McLeod: There are a lot of meetings here, and I’ll tell you straight
up there are too many. I’m trying to get a lay of the land on the M
fl ow of the organization right now and again to come back to the u
idea of strategic focus on the organization – I spend a lot of time t
and clear my schedule to try and think about the things we should a
be doing at a senior engagement level, because that’s my role as b
the commander. It’s not to get involved in all the tactical details of
what everybody is doing – there are way too many, and for me to
inject myself through meetings and things like that, it just slows
the organization down. I come into organizations and try to change
the focus away from the commander to teveryone else.
I spend a lot of time thinking about the wargame we are going to
have in October. It’s going to have very strategic implications for
not only PACOM, but the other combatant commands as we rebal-
ance global petroleum and other products around the world.
I’m spending a lot of time right now going through everyone’s
comments in the climate survey, because there are some great
ideas and things I feel have great potential benefi t to the organi-
zation. There’s a recurring theme in particularly in the climate
survey this year and it’s communication – there’s a shortfall in the
organization.
That’s kind of what my day is right now.
ES:What would you like the customer and supplier to
think when they hear the name DLA Energy?
McLeod: I would like them to think that we are the prime pro-
vider of energy for the Department of Defense. Whenever anyone
in any of the services or the government hear DLA Energy, they
should immediately think that’s the place we go to get the best
value for our products and that’s the place we go to get the best
4 www.energy.dla.mil
Welcoming a Neww CCoommmmaannddeerr
return on our investments for energy savings and reduction pro-
grams. I think embedded within this world-class organization is all
that capability, but a lot of people haven’t taken advantage of it. A
couple customers like the Army have stepped up in a big way and
the Air Force has as well, but some of the outer agencies are just now
beginning to realize the power that DLA Energy has. So I think that’s
exciting as we go forward.
Also, I think a big part of the strategy for the next couple years is
thinking about how we get more and more of that in our portfolio.
ES:How do you feel your past experiences have prepared
you for the leadership role here as the primary-level fi eld
activity commander?
McLeod: I burned a lot of gas in my time, so I think I
understand the vital role and relationship between
the users and what we provide as not just an
acquisition and contract management agency,
but as that direct user interface between
Graphic by Christopher Goulait
Energy Source l October 2014 5
DLA Energy Commander Air Force Brig. Gen. Mark McLeod greets a guest after his assumption of command ceremony at Fort
Belvoir, Virginia, July 23. Photos by Christopher Goulait
product and product user. That piece is very important. listen, to talk and to introduce. I like to say that I will get
out to the point where you don’t notice me, and at that
From a practical standpoint, I think I’ve been around point I feel I have accomplished what I want, because it’s
enough joint staffs and enough combined organizations not just the commander or the general out there it’s just
and civilian organizations to understand the real nu- oh there he is again, and I’m comfortable with that.
ances of what military leadership and civilian leader-
ship have to do to work together and be effective. It’s ES:What do you look forward to when you come
not unique, but it requires some special attention that I to work?
think I have a feel for from my time 15-to-20 years ago at
Kelly Air Force Base, Texas, [now known as Kelly Field McLeod: Every day is a challenge in thinking about
Annex] up until now. how you make a difference; that can be the difference in
one person’s life or the difference in an organization.
It’s a great place to be able to apply leadership to, be-
cause it’s so diverse. So many people have their hands For example, out in Lorton, Virginia, we are trying to
in the pie or interest in the process that it becomes very establish a small fi tness area where people can exercise
complex, upper level management kind of experiences, in a facility where people don’t have that right now. Lis-
which I enjoy taking on. tening to the feedback from employees, then going back
and working on those things – that’s what this job is all
ES:What is something you do as the commander about. It can range from a NATO warning all the way
that employees might not be aware of? down to a fi tness center or a different battle rhythm for
communication. There’s always something here to make
McLeod: I walk around a lot, and hopefully I will dispel a difference, and that’s what excites me. Leadership is
things people are not aware of by getting out. Not just very exciting. This is the thing I really enjoy.
getting out for business reasons too – getting out to just
6 www.energy.dla.mil
McLeod (right) stands at attention as DLA Energy Chief of Staff Army Col. Peter Crean hands DLA Director Navy Vice
Adm. Mark Harnitchek the DLA colors during McLeod’s assumption of command ceremony.
ES: What direction do you envision DLA
Energy going in the future?
McLeod:Our portfolio will grow. I think our fo-
cus will change a little bit away from not the neces-
sity of procurement, process and contract manage-
ment, but to focus more towards the combatant
commands’ unique needs.
To come back to the PACOM exercise, it’s really
going to focus this organization in a way that
we are going to emerge from as what is truly the
executive agent for fuel. That phrase has been
kicked around for a few years now, but what does
it really mean? The executive agent doesn’t always
come away with authorities. It comes with the
responsibility, but not necessarily the authorities,
and as I said earlier, so many people are involved
in decision and have interest in the pot. It’s hard
for somebody to say I’m in charge of this and
we’re going to do this, but this concept of the
executive agent gives us the umbrella authority to
bring people in and start to give them direction
from a global standpoint. I think when we do that
and we emphasize that this particular combatant
command has our focus now; we’ll get the Joint
Staff and the Offi ce of the Secretary of Defense to
focus on that and provide supporting fi res. That
will begin to synchronize the world. I think that is
the direction in the next 12 months – we become
more of the lead agency for synchronization – kind
of fulfi ll that lead executive agent role that DLA McLeod pitches a kickball during the annual Kickball Klassic
Director Navy Vice Adm. Mark Harnitchek has tournament during a DLA Energy team-building picnic at Fort Hunt
named us as. Park, Virginia, Sept. 24.
Energy Source l October 2014 7
TTiimmee iis Money
By Susan Lowe
Defense Logistics Agency Energy
acquisition professionals have been
working to reduce the time it takes
to award contracts since an enterprise-wide
initiative was implemented in October 2013.
The Time to Award initiative, or TTA, was
developed by DLA Acquisition to standard-
ize and streamline the contracting process,
and it applies to all DLA procurements.
“We have empowered our contracting of-
fi cers to use streamlined procedures in
order to decrease the time it takes to award
contracts,” said Kathryn Fantasia, former
DLA Energy executive advisor. “Our acquisi-
tion professionals have ‘bought into’ the new
process, and because of that we are more ef-
fi cient in our support to our customer – the
warfi ghter.”
Prior to the TTA initiative, DLA Energy
processes and procedures contributed to
lengthy acquisition lead times, said George
Atwood, DLA Energy deputy commander.
Sometimes those lead times were 300 days
or longer.
By implementing the TTA processes and
establishing our procurement milestones
in accordance with the TTA goals, we have
awarded some of our larger programs well
8 www.energy.dla.mil
Timee iiss MMoonneeyy
under the established goals, he said. said Kevin Ahern, DLA Energy Bulk Petroleum Products
business unit director. “We made fi nal awards on day 171,
The awardee is given additional time to prepare for con- which beat the TTA goal by 19 days.”
tract performance when the “white space,” or extra steps
in the process are removed, Atwood said. That’s important “During our Captains of Industry meetings for Bulk
for DLA Energy’s customer and for the taxpayer, too. Petroleum Products, our vendors indicated that though
shortening the duration of the procurement process was
“For our customer and our industry partners, TTA injects something that they saw as important, they placed more
predictability into the process by making sure our awards emphasis on awarding contracts at least 60 days in ad-
are completed based on our program milestones,” he said. vance of the performance period,” Ahern said.
“For the taxpayer, our acquisition processes are more ef-
fi cient and we can better utilize our resources to complete Holding barrels of future production to commit to DLA
other actions.” Energy procurements adds a level of risk to doing business
with the government, he said. Industry suppliers wanted
DLA Energy is meeting its TTA goals on a regular basis, some assurance that award decisions would be made in
Atwood said. time to release those barrels for other commercial business
if their offer was not successful.
“We achieved our TTA goals back in April and continue
to execute our contracts within our assigned goals,” he “By demonstrating a commitment to making awards at a
said. “Our goal is to award long term contracts under $10 minimum of 60 days in advance of performance, we mini-
million in 140 days, and for long term contracts over $10 mize those risks to the offerors,” Ahern said. “Anytime we
million the goal is 190 days.” can reduce risk in the procurement process, we are likely
to see competition enhanced and better pricing.”
“The DLA Energy Bulk Petroleum Products team is a
perfect example of how ‘buying into’ a new process like “A change in plans early in the procurement process had
TTA helps us reach our goals and has led to great success,” the potential to cause major slippage in our milestones;
Fantasia said. however, the team worked diligently to make up that
time and beat the Time to Award metric and awarded the
The DLA Energy Bulk Petroleum Products business unit contracts 54 days in advance of performance,” he said.
awarded the Rocky Mountain/West Coast/Offshore pro- “This was viewed as a major leap forward by our industry
curement, which is often referred to as Rocky Mountain partners.”
West, Aug. 8. It is one of the business unit’s four acquisi-
tion programs and one of DLA Energy’s largest procure- Ahern said he attributes the team’s success to teamwork,
ment programs, with an estimated dollar value of $2 communication, determination and an overwhelming
billion dollars. dedication to getting the job done.
“These were the fi rst Rocky Mountain West annual “Everyone pulled together, did their part and supported
procurements subject to the new Time to Award metric,” each other,” he said. “We needed an opportunity to get to
Energy Source l October 2014 9
A California Army National Guard soldier fuels up a UH-72 Lakota helicopter at a landing zone at the Lodge Fire near
Laytonville, California. In part of the Time to Award initiave, a DLA Energy Bulk Petroleum Products team awarded the
Rocky Mountain/West Coast/Offshore procurement, which has an estimated dollar value of $2 billion dollars and enables
services on the West Coast to procure fuel. Photo by Army Sgt. Ian Kummer
the plate and hit a home run … and this team hit a offering under the set-aside solicitation to provide
grand slam. I couldn't have asked for anything more.” product from a large supplier.
Ahern said his team also substantially increased small “Our small business participation and awards saw sig-
business participation with this particular procure- nifi cant improvements,” Ahern said. “During the last
ment. three fi scal years, our percentage of dollars awarded
to small businesses averaged 7.3 percent. In fi scal
“Typically the Rocky Mountain West procurement is year 2014, the percentage of dollars awarded under
solicited annually as a single large program buy with the primary solicitation was 17.2 percent.”
all requirements included in a single solicitation,”
he said. “This year, in support of agency-wide small When the set-aside solicitation is considered, the total
business goals, we broke out a portion of the Rocky percent of dollars awarded to small businesses is pro-
Mountain West program to set-aside solely for the jected to rise to almost 23 percent, representing a 213
participation of small business suppliers.” percent increase in small business awards.
The Small Business Administration granted DLA “To even think about doubling the small business
Energy a solicitation-specifi c waiver to the non-man- numbers this year seemed impossible,” he said. “In-
ufacturer rule, thereby allowing the small marketers stead, we tripled the numbers.”
10 www.energy.dla.mil