Overview of DLA Energy

Transcription

1 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY Overview of DLA Energy April 11, 2017

2 Defense Logistics Agency Director Lieutenant General Andrew E. Busch United States Air Force DLA Land & Maritime DLA Troop Support DLA Aviation CORPORATE STAFF DES Installation Support J-1 Human Resources J-3/4 Logistics Operations DLA Disposition Services J-5 Strategic Plans & Policy J-6 Information Ctr DLA Energy BG Chapin J-7 Acquisition DLA Distribution J-8 Finance J-9 Joint Reserve Forces

3 DLA Energy Organization Internal Review Equal Employment Opportunity Commander s Action Group Small Business Public Affairs Protocol Manpower Workforce Analysis Sexual Assault Prevention & Response Program Joint Secretariat Procurement Process Support Customer Operations Supplier Operations Logistics Operations Customer Relationship Management Bulk Petroleum Supply Chain Services Inventory Accountability Strategic Programs and Initiatives Mobility Fuels Direct Delivery Fuels Inventory Management Business Process Support Aerospace Energy Utility Services Plans and Operations Aerospace Energy Supplier Division Installation Energy Bulk Petroleum Products Quality/Technical Support Facilities Management SRM Key Installation Energy

4 DLA Energy Region Organization Europe/Africa Ft Belvoir Americas West Middle East Pacific East Approximately 1,100 military and civilians worldwide

5 DLA Energy Region Functions Regions do lots of stuff, but primarily they do seven basic things: Forward customer support Monitor/manage inventory levels Start order process for Bulk Fuel Program, except tanker liftings Arrange transportation for Bulk Fuel Program, except tankers Provide quality surveillance & assurance (QA & QS) Perform Pre-award Surveys Work with DLA Energy HQ to provide bulk fuel inventory control and reconciliation 5

6 Defense Working Capital Fund Fuel sales to DLA Energy customers at standard price or Cost Plus DLA Energy product & service procurements from contractors $ $ $ DWCF Operational costs: Labor Travel ADP Rent/Utilities Training DFAS Support DLA corporate overhead DLA Energy overhead costs to provide fuel support to customers $ Transportation Assets $ Storage Infrastructure

7 How We Do Business DLA Energy Costs Dollar Breakdown FY 2017 $94.92/Barrel (Oct 1 - ) $ Terminal Ops (5%) & Product 77% Transportation DLA Energy Operations 7% (5%) SRM 6% 3 7

8 DLA Energy FY15 Ground Fuels $1.0b (11%) Contract Awards Bulk Fuels $ 6.8b (73%) Aerospace Energy $0.04b (<1%) Total Awards FY 2015 Installation Energy $0.02b (<1%) Bulk Storage/Services $0.3b (3%) $9.37 Billion Utility Services $0.3b (3%) Mobility Fuels $0.9b (10%)

9 FY15 Product Cost (millions of dollars) Bulk and PC&S Programs Intoplane Bunkers Local Purchase Aerospace Energy Total 7, , % 6% 2% 10% <1% 100%

10 Where DLA Energy Gets Its Typical Dollar Foreign FY15 Sales Data Govt s Fed Other DoD Commercial & Other 3 Navy 28 Army 9 4 Civ 3 1 Marines <1 Air Force 52

11 FY 2017 Standard Price (Oct 1- ) Refined Cost, 77% $94.92/Barrel $2.26/Gallon SRM, 6% TOPS, 5% Ops, 7% Trans, 5%

12 The Bulk Fuel Supply Chain Service Partners Suppliers Deliveries Refuelin g Customers Requirements Contracts Delivery Orders DLA Energy Services pay for fuel only when they use it

13 Bulk Petroleum Business Process Primarily FOB Origin Refinery QS Logistics Operations & Bulk Petroleum Supply Chain Services DLA Energy Arranges Transportation QA Military & Commercial Specification Fuel OS Determine Storage Requirements Customers PWR

14 MILSPEC vs Commercial Spec Product F76 (vs MGO) Naval Marine Distillate Fuel Pour Point & Storage Stability JP5 (no commercial spec) Naval Shipboard Jet Fuel 140 Degree Flashpoint JP8 (vs Jet A and Jet A-1) FSII, CI and ASA additives F-24 (Jet A w/additives) FSII, CI and ASA Additives Fuels System Icing Inhibitor Corrosion Inhibitor (Packaged) Anti Static Additive (Packaged) Lubricity Improver Additive (LIA)

15 Other Bulk Petroleum Fuel Purchase Programs Lube Oils Jet Propulsion Thermally Stable (JPTS) Fuel System Icing Inhibitor (FSII) Deep Freeze (National Science Foundation) Alternative Fuels Renewables and synthetics 15

16 DLA Energy Fuel Purchased by Product FY15 Heavily Weighted to Jet Fuel (81%) High Volume Few Items % Products Similar to Commercial Barrel = 42 U.S. Gallons JP5 Commercial Jet Tied with SWA as 4th largest Buyer of Jet Fuel (8% of US Market) JP8 Bunkers Gasoline Distillates Less than 1% of total U.S. POL market <1 Residuals/Others

17 Logistics Operations & Bulk Petroleum Supply Chain Management Maintenance and Repair Government Storage Requirements Storage Contractor International Agreements Environmental Compliance Environmental Remediation Safety MILCON Optimization Inventory Accounting DLA Energy-LI

18 Logistics Operations The DFSP Management group manages those aspects of the fuel business that provide storage and distribution assets Storage Requirements (Commercial, Contractor-operations, International Agreements, MILCON) Storage and Distribution Optimization Sustainment, Restoration, and Modernization (SRM) Environmental Compliance, and Remediation Inventory Reconciliation and Accounting Transportation Tanker scheduling 18

19 Bulk Petroleum Supply Chain Services Major Buying Unit for Service Contracts Domestic and Overseas Storage Contracts Aircraft Alongside Refueling Contracts Environmental and Lab Testing Contracts International Agreements 19

20 Direct Delivery Business Unit Primarily FOB Destination QA IntoPlane Vendor Commercial Spec Bunkers Transportation PC&S Fuel Card Programs AIR Card Swipe Card Small Service Tanks QS Fleet Card SEA Card

21 Installation Energy Gas Marketer Commercial Spec Transportation Vendor Facility Spec Transportation Power Marketer Commercial Spec Transmission FOB LDC City Gate Burner Tip FOB Destination QA FOB UDC Interconnect QS Meter Service Point Customers

22 Installation Energy Energy Savings Performance Contracts (aka ESPCs) Renewables

23 Utility Services DLA Energy helps Service Customers coordinate/ consolidate DoD privatization efforts Service Providers or Utility Companies Gas Lines and Electrical Distribution Systems Customers Water and Waste Water Systems Utility Infrastructure Privatization

24 Aerospace Energy Located at FOB Origin/FOB Destination Lackland AFB, TX QA QS Supply Points MILSPEC Performance Spec Products Customers Energy & Contractor Intermediate Storage Arranged Transportation Propellants Compressed Gases Cryogenics

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26 Any More Questions?

27 David Herrick

28 BACK-UP SLIDES 28

29 Standard Prices - $ Per Gallon FY15 1 Oct 14/ Feb 15 FY16 1 Oct 15/1 Feb 16/1 Apr 16 FY17 1 Oct 16 JP8/JA1/TS1 3.70/ /2.61/ F / /2.59/ JP5 3.73/ /2.64/ F / /2.63/ MUR 3.61/ /2.55/ MUM 3.82/ /2.70/ MUP 4.27/ /3.01/ DS1 3.77/ /2.68/

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