Bulk Petroleum Executive Agent Cynthia F. Smith PETRO 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 Board1942 Joint Army/Navy Petroleum Purchasing Agency1945 Armed Services Petroleum Purchasing Agency1948 Military Petroleum Supply Agency1957 Defense Petroleum Supply Center1962 Defense Fuel Supply Center1964 “Integrated Materiel Manager” Designation for Class III1973 Wholesale Expansion1993 Defense Energy Support Center1998 Assumed Missile Fuels2001 Retail IntegrationOngoing Executive Agent2004 Defense Logistics Agency Energy2010

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 ) 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 )

Executive Agent for Bulk Petroleum - Policy / Responsibilities - DoDD , 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 , 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 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 2021 Integration of EA Focus Areas and EA 2021 Thrust Points

A Way Ahead – EA 2021 Alignment 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

15 DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT SUPPORT LOGISTICS AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT SUPPORT LOGISTICS AGENCY 15 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 15