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DEFENSE LOGISTICS AGENCY ISSUE

The Publication of Record for the Military Logistics Community

Special Pull-out supplement Defense logistics Agency

LOG Communicator Maj. Gen. Kenneth S. Dowd

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June 2013 Volume 7, Issue 5

Director, Logistics Operations Defense Logistics Agency Exclusive Interview with: Vice Adm. Mark D. Harnitchek Director Defense Logistics Agency

V2DR Afghanistan Drawdown O Cases and Containers O DLA Energy Commercial Transportation O Inventory Control O Mainframes


MILITARY LOGISTICS FORUM

June 2013 Volume 7, Issue 5

Features

Cover / Q&A DLA Special Pull-Out Supplement Exclusive interview with Vice Admiral Mark D. Harnitchek Director Defense Logistics Agency

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DLA TOP CONTRACTS

Special Section Modes of Transport

Through various programs, DoD is harnessing the size and scope of commercial transportation partners. The Defense Transportation System consists of organic military assets and capabilities as well as those provided by commercial providers, both of which exist side by side symbiotically. By Peter Buxbaum

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A convergence of new technologies and the ongoing budget constraints are prompting the military to deploy inventory systems and novel processes to improve the way it handles its massive stockpiles of parts and materiel. By Scott Nance

The Defense Logistics Agency purchased 5.1 billion gallons of fuel in fiscal year 2012 at a cost of $18.6 billion. Total DLA sales to Defense Department customers in the same year were 4.5 billion gallons for net revenue of $16.7 billion. By Henry Canaday

The ability of the U.S. military to deploy quickly, anywhere in the world, demands a supply of shipping containers and cases that can support that deployment. Industry has responded to that demand with products that today are lighter in weight yet more durable and more quickly deployable than ever before. By Heather Baldwin

There are common challenges faced by organizations still reliant on mainframes for backend processing. Here are offered two proven alternatives to transform these essential systems into the modern, cost-effective environments By Joe Trickey and Wendy Williams

Inventory Control and Readiness

Keeping It Running

Departments

Case Management

Processing Power

Industry Interview

2 Editor’s Perspective 4 Log Ops 6 People 8 Log Leadership Lessons 16 Supply Chain 31 Resource Center

Mark A. Whalen

Senior Vice President, Operations AM General

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Your single-source solution for material and services. www.SupplyCore.com

Major General Kenneth S. Dowd

Director, Logistics Operations Defense Logistics Agency

“Years ago we tried to synchronize efforts from DLA here at the Headquarters at Fort Belvoir. Now we’re physically sitting in those logistics meetings in country to make sure we’re synched with what the warfighter needs.” - Maj. Gen. Kenneth S. Dowd


Military Logistics Forum Volume 7, Issue 5 • June 2013

Publication of Record for the Military Logistics Community Editorial Editor-In-Chief Jeff McKaughan jeffm@kmimediagroup.com Managing Editor Harrison Donnelly harrisond@kmimediagroup.com Online Editorial Manager Laura Davis laurad@kmimediagroup.com Copy Editors Sean Carmichael seanc@kmimediagroup.com Laural Hobbes lauralh@kmimediagroup.com Correspondents Heather Baldwin • Christian Bourge Peter Buxbaum • Henry Canaday Cheryl Gerber • Hank Hogan • Marc Selinger Karen Thuermer

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EDITOR’S PERSPECTIVE Despite denials, there is certainly an aggressive campaign underway by China to target both U.S. military computer systems as well as those of major—and not-so-major defense contractors. To date there has been an admitted level of information that has been compromised—which most of us believe is only a fraction of what has been offensively acquired. China is not alone in going after U.S. computer systems, but they seem to possess the more robust capabilities. In another form of assault on the U.S. military, some foreign entities are making a killing selling substandard parts into the U.S. supply chain. In this issue of Military Logistics Forum, I asked Vice Admiral Harnitchek about Jeffrey D. McKaughan Editor-IN-CHIEF DLA’s role in fighting the counterfeit parts war and the current level of risk. He was blunt in his assessment that it’s as bad as it has ever been—and it’s only going to get worse. He described the four main elements of DLA’s defense against rogue parts and they range from the basic—common sense approach—to the very sophisticated. The first is to know who you are buying from and then, secondly, test vigorously and often, even from known vendors. Third, the agency harnesses technology in the form of software that is designed to search and identify patterns—and more importantly— identify anomalies to those patterns. Much like your credit card company watches out for variances in routine, so too does the DLA. The fourth element in the DLA counter-counterfeit toolbox is a sort of DNA marker being used on all of its acquired microcircuits. Recently, Laura Davis, KMI Media Group’s online editor, interviewed the vice president of Applied DNA Sciences, a manufacturer of DNA marking technologies. The article describes the fascinating development behind the technology and how it can be applied to protecting the electronics supply chain from corruption by counterfeit parts. DNA marking is half the story, the other half being the ability to easily be able to test and read the DNA marker to verify the authenticity of a part. Virtually as simple as seen on an episode of CSI, the DNA marker can be scanned with a rapid non-forensic handheld device or swabbed for a more detailed analysis. To read Laura’s interview, visit her blog, Attention!, at www.kmimediagroup.com/blog-attention.

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LOG OPS

Compiled by KMI Media Group staff

KC-46A Basing Plans Announced Air Force officials recently announced Altus Air Force Base, Okla., as the preferred alternative for the KC-46A formal training unit (FTU). McConnell AFB, Kan., was selected as the preferred alternative for the first active duty led KC-46A main operating base (MOB 1) and Fairchild AFB, Wash., and Grand Forks AFB, N.D., are the reasonable alternatives. The preferred alternative for the first Air National Guard KC-46A main operating base (MOB 2) is Pease Air Guard Station, N.H., and Forbes AGS, Kan.; Joint Base McGuireDix-Lakehurst, N.J; Pittsburgh IAP AGS, Pa., and Rickenbacker AGS, Ohio, are reasonable alternatives. During detailed, on-the-ground-site surveys of each candidate base, the major commands evaluated the bases against operational and training requirements, potential impacts to existing missions, housing, infrastructure, and manpower. The site survey teams also developed cost estimates to bed down the KC-46A for each candidate base. The results of the surveys were briefed to the Secretary of the Air Force Michael Donley and Air Force Chief of Staff, General Mark A. Welsh III, who selected the preferred and reasonable alternatives for this mission.

4 | MLF 7.5

“The Air Force chose these locations using operational analysis, results of site surveys, and military judgment factors,” said Timothy Bridges, the Air Force deputy assistant secretary for installations. Altus AFB was selected as the preferred alternative for the KC-46A FTU because it provides great training opportunities, he said. There is significant benefit of collocating KC-46A trainers with both tanker and heavy receiver aircraft for training purposes. Altus AFB also has better infrastructure capacity, greater fuels dispensing capability, and requires considerably less new construction, Bridges added. Welsh explained the 179 planned KC-46A aircraft are just the first phase of a threephase effort to replace more than 400 KC-135 and 59 KC-10 aircraft. The first phase of tanker recapitalization will complete deliveries in FY2028. He went on to emphasize the importance of continuing KC-135 modernization efforts. “I want to stress that the KC-135 units not replaced with the KC-46A will continue to fly the KC-135R for the foreseeable future,” Welsh said. “Throughout tanker recapitalization, the Air Force is committed to ensuring continued support of combatant commander requirements.”

Army’s Newest Microgrid U.S. Army and Lockheed Martin officials have commissioned the first U.S. Department of Defense gridtied microgrid integrating both renewable resources and energy storage during a ribbon cutting ceremony at Fort Bliss, Texas. The project was funded by DoD’s Environmental Security Technology Certification Program. The Fort Bliss grid-tied microgrid is designed to reduce overall greenhouse gas emissions and energy costs while providing the capability to operate independent of the electric utility grid when needed to provide energy security. “We are excited to lead the Army in energy efficiency. This microgrid supports Fort Bliss’ Environmental Campaign Plan, aimed at reducing our carbon footprint. This cost-effective project will incorporate renewable energy sources, lowering our electric output,” said Major Joe Buccino, Fort Bliss spokesperson. “The tactical utility of this technology is its ability to allow us to operate off the grid. We are entering an age of emerging threats and cyber warfare. We are assuming an unacceptable measure of risk at fixed installations of extended power loss in the event of an attack on the fragile electric grid. This project represents the future of military energy security.” “The Fort Bliss microgrid will provide DoD and other government and commercial organizations with the data and confidence necessary to transition microgrid technologies into wider scale use,” said Jim Gribschaw, director of energy programs at Lockheed Martin. “Microgrids are the key to an energy-efficient and secure future for sites such as defense installations, hospitals, universities, commercial businesses and industrial sites.” In 2010, Lockheed Martin received the contract to demonstrate an Intelligent Microgrid at the U.S. Army’s brigade combat team complex at Fort Bliss. The microgrid consists of onsite backup generation, a 120-kilowatt solar array, a 300-kilowatt energy storage system, utility grid interconnection and Lockheed Martin’s Intelligent Microgrid Control System. The energy storage system is especially critical in lowering cost and maintaining a steady stream of energy. The system also stores energy to respond to high periods of energy demand and to produce reliable power.  Lockheed Martin completed Integrated Smart BEAR Power System (ISBPS) and hybrid intelligent power (HI Power) microgrid system contracts last year. ISBPS equips the U.S. Air Force with lightweight, air-transportable microgrid assets to power a mobile air base. HI Power provides the U.S. Army an efficient, reliable and secure microgrid configuration to reduce fuel consumption at tactical operations centers.

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LOG OPS Online Parts and Supply Provider Expands Melbourne-based GovBuy recently announced the expansion of its government-centered online marketplace. The site now hosts over 700,000 commonly purchased industrial and facility maintenance, repair, and operations parts and supplies from 26 commodity groups. GovBuy.com is the largest commercial online marketplace targeting taxexempt users including Department of Defense customers, federal agencies and individuals supporting facilities, bases and motor pools. According to GovBuy president David Hahn, “With the expansion of the GovBuy site we are helping to simplify and streamline the procurement process for government purchasing personnel and facility managers. Our online reconciliation and reporting capabilities provide them greater control and help ensure compliance with the maze of regulations they need to adhere to.” The site, GovBuy.com, allows only authorized and validated government and taxexempt users to register and order online. The site is available to valid users worldwide.

Compiled by KMI Media Group staff

Extracted Container Delivery System The 772nd Expeditionary Airlift Squadron (EAS) recently executed the first combat extracted container delivery system (XCDS) airdrop, successfully demonstrating the increased accuracy that this new technology provides. The new airdrop method is designed to pull the bundles out of the aircraft at a faster rate than the current airdrop process, which improves the overall accuracy of the drop itself. “Normally a bundle falls out of the aircraft due to gravity, with the speed mostly dependent on the deck angle of the aircraft,” said Captain Raeanna Elms, 772nd EAS. “With XCDS, there is an additional parachute, attached to a group of bundles, that pulls them out of the aircraft together and at a faster speed, resulting in a smaller dispersion area on the ground.” For the loadmasters working with the CDS bundles, the new method adds more complexity to the rigging inside the aircraft, said Senior Airman Marisa Powers, a loadmaster with the 772nd EAS. Because of the added complexity, Powers and her fellow loadmaster on the mission were very thorough in their preparations.

Seeing the bundles pulled out of the back of the aircraft, rather than trickling out as usual, was an unusual sight, Powers said. After the bundles had landed, however, the accuracy of the XCDS drop was proven—the dispersion of the bundles on the drop zone was about twothirds smaller, highlighting the value of the XCDS method in having the best placement for the soldiers. “Our goal is to get the people on the ground what they need, where they want it,” said Elms, who is deployed from Little Rock Air Force Base, Ark. “Plus, since we’re trying to build a positive relationship with the local people, we want a more accurate airdrop method that reduces the risk of a stray bundle damaging their homes and crops.” Article by Capt. Brian Maguire, 451st Air Expeditionary Wing Public Affairs

PEOPLE Army Reserve Colonel Michael Dillard has been nominated for appointment to the rank of brigadier general and for assignment as commander (troop program unit), 310th Expeditionary Sustainment Command, Indianapolis, Ind. Dillard most recently served as chief of staff (troop program unit), 451st Combat Support Sustainment Expeditionary Command, Wichita, Kan.

6 | MLF 7.5

Compiled by KMI Media Group staff

Andrew P. Hunter has been assigned as director, Joint Rapid Acquisition Cell, Office of the Under Secretary of Defense for Acquisition, Technology and Logistics, Washington, D.C. Hunter previously served as special assistant to the under secretary of defense for acquisition, technology and logistics, Office of the Under Secretary of Defense for Acquisition, Technology and Logistics, Washington, D.C.

Marine Corps Major General Robert R. Ruark has been nominated for appointment to the rank of lieutenant general and for assignment as director for logistics, J-4, Joint Staff. Ruark is currently serving as director, J-4, logistics and engineering, U.S. Central Command, MacDill Air Force Base, Fla. Lieutenant General (Ret.) Robert T. Dail, Supreme Group’s

chief commercial officer, was recently awarded the secondcategory Order of Viesturs, the highest state honor for Latvia. The award was presented by Andris Bērziņš, the president of Latvia, in recognition of Dail’s outstanding public service to Latvia, and his support for non-military cargo transit from Latvia to Afghanistan during his former role as the director of the U.S. Defense Logistics Agency.

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LOG LEADERSHIP LESSONS

Compiled by KMI Media Group staff

Jim Hall has addressed a variety of logistics challenges as a line manager in industry, a principal of management consulting firms, and as an Assistant Deputy Under Secretary of Defense. Jim served as a surface warfare officer in combat operations in Southeast Asia. He now assists DoD utilize Gartner research to improve logistics.

Why Should We Do That? “Why should we do that?” is often the response to new ideas. As I’ve worked with senior leaders of commercial firms and DoD, I’ve found the successful answer to that challenge comes through the ability to address several concerns embedded in the question. Comprehensively, yet concisely, addressing each concern produces converts not critics. When presented with an initiative to approve, leaders have many questions, including: • What problem is solved? • What characterizes success? • Why will improvements occur? • Who else is doing this? • What alternatives exist? • What are the risks? • What resources are required? What Problem is Solved? Senior leaders are regularly presented with new ideas. Some come from their seniors, some from their staff, and some from individuals and organizations who wish to be helpful. Implementation of new ideas requires effort and will have challenges. It is critical to be able to describe what problem exists and why the proposed idea solves that problem. That is, assuming the effort is successful, what performance problem goes away? This explains why it’s worth it to spend the time and effort necessary. What Characterizes Success? A clear description of the future demonstrates understanding of the expected result. A description of success as viewed by end users/customers, staff, suppliers and other stakeholders shows senior leaders a robust understanding of who will be impacted and how. This also describes what changes need to be made. Successful leaders won’t commission a project start without a realistic 8 | MLF 7.5

understanding of where the effort is headed and how they will know when the initiative’s objective has been achieved. Military leaders know they may rotate and a new leader will assume responsibility to complete the initiative. The description of success will help ensure the effort stays on track over time. Clear and compelling descriptions of success will lead to another question. Why Will Improvements Occur? The answer to this question for a senior leader requires an explanation of the source of the savings, not simply what performance category is impacted. Specifying high-level categories, such as material cost or inventory reduction is necessary but not sufficient. Explaining the reason the saving occurs is essential, e.g., “Cycle time will be reduced because tasks, now performed in sequence, will be performed in parallel.” Senior leaders will have confidence that improvements can be measured and the basis for the improvement understood or challenged. Who Else is Doing This? Few desire to be on the bleeding edge of change so the desire for risk mitigation and self preservation occurs. Demonstrating that an idea leverages proven principles and lessons learned provides confidence that you are not setting out on uncharted waters or to reinvent the wheel. However, it is also critical to describe how principles that are successful in a different environment will be successful in yours. Successful commercial practices must be translated to apply to a world that doesn’t know when or where peak demand will occur, whose units continually move, and who often work in non-permissive environments. All organizations have unique characteristics and the ability to translate across those differences will lead to success.

What Alternatives Exist? Gaining agreement requires showing an understanding of what happens if nothing is done, as well as showing there has been thoughtful consideration of other options. Just as you have provided a description of the characteristics of the successful outcome, a description of the characteristics for the organization if no action is taken will build your case. Explaining choices that were considered and discarded will shown the selected choice is the result of careful consideration and a full understanding of multiple alternatives. What are the Risks? Showing an understanding of potential risks demonstrates awareness of organizational and technical obstacles and the recognition that there will be critics, not just supporters. This raises confidence that there are no ‘red flags’ or ‘showstoppers.’ What Resources are Required? With appropriate answers to the questions above, it’s likely to be asked, “What do you need?’ A response that communicates an understanding of the work effort will build confidence. “Let’s Do That” Clear, concise and compelling answers to the questions above will produce agreement and support. Defense logisticians must initiate efforts to respond to different threats, changing fiscal realities, new operating tempo, reoriented geographic priorities and reduced force structures. Logisticians must initiate efforts to produce the readiness, responsiveness, reliability and resilience, all at a rational cost, expected for the warfighter and by the taxpayer. Successfully addressing the challenge “Why should we do that?” will contribute to superior logistics performance.

jim.hall@gartner.com www.MLF-kmi.com


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Too much inventory hurts the bottom line, not enough inventory hurts operational readiness. By Scott Nance MLF Correspondent As a corporaA convergence of new technologies and the ongoing budget contion, Alion provides straints is prompting the military to deploy inventory systems and Department of Defense novel processes to improve the way it handles its massive stockpiles of customers several tools and serparts and materiel, according to several companies that are working vices to better manage inventories, on the transition. Along the way, these new tools and ways of thinking Fletcher said. are also enhancing readiness. This includes a “rapid fabrication capability” to “That’s where a little bit of paucity of funding provides the produce parts and supplies when and where they are needed, he said. opportunity for innovation that otherwise never would have been “So you don’t have to carry as much inventory if you have a considered because of the institutional inertia against major change,” manufacturing capability that’s mobile and forward-located with the said Charlie Fletcher, senior vice president of Alion Science and user—and it’s responsive to the user. This is an offset to the classic Technology, a Washington, D.C.-based engineering firm that provides ‘carry inventory around with you and use that inventory to meet your the military technologies to better understand and manage their needs as you develop requirements’ [approach],” he said. “That’s a inventories. very innovative and different way to approach the problem that we The Defense Logistics Agency (DLA), for instance, is “in a very do at Alion.” tight money situation, so they are very interested in finding innovaFor the Air Force, and in a pilot project for the Army, the comtive ways to reduce inventory cost,” said Fletcher, who recently served pany has developed algorithms to help better underon a committee of the National Defense Transportation stand investment decisions across their programs, Association, which at the request of the DLA director, Fletcher said. looked at DLA and performed an analysis and applied Those tools are becoming more in demand best business practices to determine if there was a way because of ongoing funding constraints. “Services to improve responsiveness at less cost. need to understand what the impact is of cutting That committee put forward several recommendafunding in one area—what that does to potential tions that could “dramatically reduce DLA’s inventory readiness in other areas,” he said. “That would cost, which they are obviously very interested in doing,” include things like funding for spares and funding if the application of the best commercial practices for parts, and what would that do in terms of its proved successful. trickle-down impact on other programs and readiIn the past, military logistics differed from comCharlie Fletcher ness of those programs.” mercial practice because the military had to prepare to engage in unplanned events in places that might be unknown ahead of time, “and your competition is Automating Procurement lethal,” said Fletcher, who previously served as director of operations and plans for the U.S. Transportation CribMaster, a Marietta, Ga.-based commercial Command. inventory management company, is also providing “These were the … pieces of the argument that the military with software and systems aimed at says that military logistics is different than commercial minimizing the steps to control their stores of parts logistics. But I think that paradigm is changing in that and supplies—and also increase readiness, said Dave there is a recognition that best logistics practices— Cothran, channel manager who oversees distribu[while] recognizing the differences in the military—are tion channels for a majority of United States, and applicable to incorporation within the military logistics until January directly handled CribMaster’s business Dave Cothran structure and process,” he said. with the Marine Corps. 10 | MLF 7.5

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“We’ve had a tremendous amount of success with the military as a whole,” he said. CribMaster’s systems reduce the steps it takes to replenish items through automation, so “we know exactly when to re-order and how much to re-order, without having someone to go count inventory and then manually process purchase orders or requisitions back to a supplier. The system or the software is capable enough to do all of that automatically,” Cothran said. CribMaster’s software also allows users the ability to more easily locate specific items when needed, he said. “It potentially shuts down a facility until an item is recovered. If we can reduce that time of looking for an item exponentially, by telling the individual or telling the group where it’s at, there’s a tremendous cost savings there just in the labor cost,” he said. CribMaster boosts readiness by allowing the military the capability of more easily “having a product when you need it”—and having the correct number of that product, Cothran said. “They can’t afford downtime because that aircraft or that unit may be deployed at any moment,” he said. The company’s systems also are helping the military better deal with the budget crunch, Cothran said. “Obviously, with what’s going on with the military now and the tremendous amount of cost reductions, we’re a pretty good fit because not only are you reducing costs based on usage, the individuals are getting what they need, when they need it. But they’re not getting three times more than what they need because they are held accountable for transactions now,” he said. CribMaster systems also can automate purchasing procedures, so when a re-order is needed, it’s not necessary to write another requisition to replenish, Cothran explained. “The system knows exactly what the parameters are and can automate all of that information back to the supplier with all of the pertinent information around it. You don’t have to have five or six hands touching that order process, which obviously costs the government … money to manage.”

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Supply-Chain Management Inventory Locator Service (ILS) isn’t an inventory-control company, per se, but the military is using the Memphis, Tenn.-based commercial supply-chain firm to better manage its logistics nonetheless, said Brigita Rasys, senior director of business development and international sales. “On a daily basis, we fit in when people’s normal supply chain processes break,” she said. “When [DLA] does not have an item that it critically needs for its customer base, they will use ILS to find suppliers to Brigita Rasys fulfill their needs for their customer; including the validation and cross reference to cataloged government information such as: national stock numbers, part numbers, technical characteristics, and past procurement histories.” Of further benefit, the military can ensure that they are working with suppliers they approve through preferred vendor selections, and they can gauge pricing from ILS from procurement histories and other sources. In a nutshell, ILS serves the military in one step; www.MLF-kmi.com

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sourcing a part, finding a repair facility, cross referencing to government data, and researching preferred suppliers. In particular, procurement history provides a track record to guard against overpaying and it help with cost control. “Finally, use of ILS not only has controlled costs—but also enhanced readiness,” Rasys said. “We have worked with a number of platforms supporting mission readiness, such as the C-130 and C-17. We have been instrumental in maintaining mission readiness,” she said. Also, when a deadly tsunami swept the Pacific a decade ago, Military Sealift Command was able to find a critical part on ILS that allowed a U.S. Navy ship to be ready to deploy on the rescue mission, she said. “We certainly help readiness when you consider the different military endeavors that we have helped support,” Rasys added. “You have to ensure that our warfighters have access to the best equipment and operational readiness is being met. The military tries to avoid using an aircraft as a carcass, so to speak; that is a costly practice If you can avoid cannibalization and find parts that are the correct parts—that are tested, that have the right certification, that come with the right paperwork—you are actually impacting readiness very [directly].”

Preparing for the Next Time Cubic Global Tracking Solutions, a Washington, D.C.-based logistics technology company, has been working with the Army for five years to develop a new inventory-control system based on innovative technology that is being used as the U.S. military prepares for its withdrawal from Afghanistan, according to Jim Kilfeather, Cubic’s vice president of engineering and operations. Cubic’s developed technologies are part of an Army wireless communications program to produce low-cost, networkable devices used by Army to “track their rolling stock and containerized assets,” Kilfeather said. The firm is also working with the Army on an operationally deployed version of that technology called Army Mobility Asset Tracking System (AMATS), which is in use today at Army facilities in

Kuwait, as well as at Bagram and Kandahar in Afghanistan, he said. Using the technology, the Army tags its vast number of rolling stock containers, Kilfeather said. “The tags themselves all form an ad-hoc, mobile mesh network. We can instrument a yard and cover square miles of territory with very low infrastructure cost. As devices enter and leave the network, the network forms around them— they join or disjoin the network automatically,” he said. “The Army’s taken a pretty exhaustive look at the business case here, and by having this inventory-control model, they save a great deal of time and labor in processing of assets for return, repair, retrograde or for reset.” Jim Kilfeather The Cubic system has been proven and can be manufactured in quantity, Kilfeather said. “We’re ready to roll out to as many locations as the Army would like us to roll it out to,” he said. The latest expansion of the technology is coming as part of the Army’s work to pre-position stock in theater as it prepares to leave the Afghanistan, Kilfeather said. “As the Army withdraws from Afghanistan, they’re going to bring everything home. They’re going to pre-position equipment in the Middle East for the next time it’s needed. As part of that, they need a secure and managed yard,” he said. Being able to track assets and supplies with the Cubic system decreases the need for contractor labor “very significantly,” he said. The system provides the Army with the ability to “quickly audit and ascertain the status of your units’ fighting material, [which] does contribute to readiness.” O

For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.

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If military equipment is powered by a fossil—or bio—fuel, DLA Has a hand in supplying it. By Henry Canaday MLF Correspondent

The Defense Logistics Agency purchased 5.1 billion gallons of fuel in fiscal year 2012 at a cost of $18.6 billion. Total DLA sales to Defense Department customers in the same year were 4.5 billion gallons for net revenue of $16.7 billion. Volumes bought and sold do not match because DLA buys fuel not just to meet current military demand, but also to maintain operation and readiness levels, explained Energy Customer Operations Deputy Director Linda Barnett. About 70 percent of DLA fuel purchases are for jet fuel, with significant purchases of distillates and diesel fuels. DLA Energy Strategic Energy Analyst Jeanne Binder said the agency is also buying 33.6 million gallons of biodiesel blend and 16.6 million gallons of ethanol 85 for military fleet vehicles. Overall, the Air Force and the Navy are the big fuel users, accounting for more than three-quarters of consumption. [See table on page 14.] DLA fuel buying is big business and is conducted with a keen eye on contract clauses. The delivery-order limitations-scope of contract (bulk) clause provides the minimum-lift guarantee, which commits the government to take at least a specific percentage of the awarded quantity. This clause allows the vendor to plan economic production runs www.MLF-kmi.com

to provide competitive prices. The clause works with delivery and ordering periods clauses that delineate the monthly pro rata the government has the right to order and the supplier the obligation to deliver under long-term bulk contracts. These two clauses are important planning tools for DLA inventory managers when making long-term plans. Economic price adjustment clauses provide price escalation formula. Adjusting prices for market changes protects suppliers and the government in highly volatile markets. Without escalators, suppliers would compensate for risk of higher market prices by a higher contract price. And the government does not want to award fixed prices in a falling market. DLA Energy uses price-escalation formulas typical in the commercial markets. It can use different formulas that yield similar prices under the same procurement, allowing each supplier to select the formula that suits its business. Length of contract is very important. Most bulk-fuel contracts were for 12-month delivery until recently. Now DLA guidance requires multiple-year solicitations. DLA Energy is now soliciting and evaluating the first major bulk purchase for multiple years in Atlantic, Europe and the Mediterranean (Solicitation SP060013-R-0033). Once awards are made, DLA can determine the cost saved by three-year contracts. MLF  7.5 | 13


FY12 Fuel Purchases—DLA Millions of Gallons

Millions of Dollars

Avgas

0.5

$3

BUNKERS

86.8

$305

No. 2

865.0

$2,764

Gasohol

16.5

$54

Into-Plane

199.8

$761

JP4

992.4

$3,470

JP5

526.4

$1,675

JP8

2,002.2

$6,698

Local

351.7

$2,672

Lube Oils

1.0

$6

Mogas

49.0

$170

Residuals

7.6

$22

Total

5,098.8

$18,598

Air Force

2,384.4

$8,401

Army

730.9

$3,581

Navy

1,356.7

$4,694

Marines

17.6

$60

Total

4,489.5

$16,736

Source: DLA

One important tool is the way DLA evaluates offers. DLA Energy allows suppliers to offer either free-on-board origin or FOB destination proposals, differing in whether government or contractor is responsible for transportation. DLA uses a bid evaluation model to determine the overall best value. This tool allows suppliers to offer volume discounts and other conditions that can yield lower cost to the government. It also aids inventory managers by producing distribution routes for planning and ordering supplies. For more than a decade, Air BP and other BP businesses have provided an unprecedented level of support to the Defense Department, stressed Mark Iden, defense key account manager for BP Products North America. To fuel U.S. and NATO forces in Kosovo, BP mobilized people, re-fueling equipment and trucks throughout Europe and imported jet fuel from Greece into Tirana, Albania. The response went well beyond contract terms and built a relationship between BP and DoD that continues to this day. BP was one of the first major oil companies to provide fuel to U.S. forces in Afghanistan. Securing supplies from the Attock refinery in Rawalpindi, Pakistan, BP delivered millions of gallons of commercial jet fuel. “This mission was accomplished in one of the most austere and hostile regions of the world with fueltransport personnel frequently operating near combat areas,” Iden noted. Air BP was recognized by DLA as “Innovative Business Performer of the Year–Large Business” for its work in Afghanistan and Iraq. Over the past several years BP has been one of the top-three fuel suppliers to DoD and was top supplier in fiscal 2011. BP typically supplies 9 to 12 percent of DoD’s global demand for fuel. Despite the Environmental Protection Agency’s temporary prohibition on BP entering new U.S. government contracts, the 14 | MLF 7.5

firm has already committed to sell the government more than 470 million gallons of jet fuel and 230 million gallons of marine diesel fuel in 2012 and 2013. Iden attributes BP’s success to its ability to secure fuel supplies in remote locations and to meet surge demand for military and humanitarian missions. BP boasts high safety and operating standards, indepth knowledge of military requirements and innovative and flexible solutions. Supporting DoD requires scale and reach, which BP has with 80,000 employees deployed in more than 80 countries. In Singapore, BP stores U.S. Navy jet fuel (JP5) and marine diesel fuel (F76). It has been a key supplier of commercial aviation gasoline for unmanned aerial systems for both European and Central commands. BP also serves DoD customers at 105 commercial airports around the globe. DLA follows Defense Department policies in seeking alternatives to conventional fuel. Defense wants drop-in alternatives, requiring no modification to engines, derived from a non-food feedstock and with life cycle greenhouse gas emissions less than or equal to conventional petroleum fuels, all at costs competitive with conventional fuels. The Air Force seeks to be prepared to acquire half its domestic aviation fuel as alternative blend by 2016. The Navy would like to obtain half its consumption from alternatives by 2020. Solazyme has provided significant quantities of algae-based alternative fuels to DLA and the services for testing since 2009. Vice President of Fuels Commercialization Bob Ames said Solazyme remains interested in working with defense customers and he is hopeful the Navy will certify the firm’s products for operational use later this year. Solazyme will complete construction of a commercial-scale plant capable of producing 30 million gallons a year in Moema, Brazil, later this year. Ames predicted Solazyme product will be competitive with crude oil prices. He also cited research at Wright-Patterson Air Force Base that suggests biofuel has advantages over traditional petroleum products. Ames said biofuel will be cleaner, with fewer impurities, burn at lower temperaBob Ames tures, reduce heat signatures from tail pipes, be lighter per energy content, show greater thermal stability and reduce wing stress, and may allow less-frequent engine maintenance. Other firms seek to save fuel costs by reducing fuel use. HDT Global delivers several types of energy-efficient products, explained Chris Colelli, Energy Efficiency Program Manager at HDT Expeditionary Systems Group. It supplies electric generators, electric distribution systems, multi-fuel heaters for shelters and self-powered units for heating, cooling and air filtration. The firm also makes non-metal shades and control barriers to increase energy efficiency, fabric shelters, and hybrid and renewable energy systems. “HDT has a 60kW trailer-mounted generator, 60kW skid-mounted generator, a digital 35kW generator environmental control unit [ECU] trailer [GET], and our next-generation GET,” Colelli noted. “Each has a controller capable of tying to a power distribution grid.” HDT also makes heaters with more than 80 percent efficiency, like the HDT MTH400, MTH35SP, MTH60SP and MTH200. HDT’s hybrid tactical microgrid was demonstrated for the Marine Corps in May. It combines smart energy control and blending, 6400W www.MLF-kmi.com


of solar energy harvesting and 16kWh of energy storage by batteries. The grid controls a 10kW generator with autostart so energy is on demand. Under heavy loads, the microgrid ran its generator less than half the time, using renewable energy for most energy loads. The generator runs even less under light loads which can be supported by batteries and solar. Colelli said all HDT systems save energy for DLA. They reduce fuel consumption compared with older systems. They are scalable so energy needs are met with right-sized equipment, adjustable by modular components. DLA thus buys and ships only necessary equipment, which is lighter and more compact. “Fuel saving is tremendous, especially with hybrid systems, reducing the need for fuel convoys on the battlefield.” The HDT exec said his firm’s products are distinctive in their ability to integrate as a platform of interoperable components. The company is researching lighter shelter The Military Sealift Command fleet replenishment oiler USNS Henry J. Kaise, left, delivers a 50-50 blend of advanced biofuels and fabrics with better insulation. It continues to traditional petroleum-based fuel to the guided-missile cruiser USS Princeton during the Great Green Fleet demonstration portion of Rim of the Pacific 2012 exercise. [Photo courtesy of U.S. Navy/Seaman Apprentice Ryan J. Mayes] improve efficiency of generators and heaters and is upgrading its hybrid systems by enhancAnd DRS is working with the Naval Surface Warfare Center in ing communication among components and adding a sophisticated Philadelphia on an advanced fan coil assembly. Ships’ central chillers monitoring tool. HDT will soon release a 1.5-ton, one-phase ECU that bring fresh water to a low temperature, which then goes through pipes adds cooling to its hybrid microgrid. and cools spaces. Today, these systems are set either on or off, low or DRS Power and Environmental Systems Group makes and deploys high speed. DRS wants to install variable-speed drives and motors that tactical microgrids, explained Rob are tied into thermostats like a microgrid to allow heating and cooling Sainsbury, vice president of business to match the demand of each space. Sainsbury said the upgrade would development for power, environmenmake crews more comfortable and improve power density by putting tal and sustainment services. It has more cooling power in less space. “We are hoping this will be for both about 10,000 tactical quiet generators current and new ships,” he said. in the field now. These generators are Energy stored well may be fuel not wasted. EnerSys is the largest used in microgrids, “typically one genmanufacturer of industrial batteries in the world, and its Aerospace erator for one tent or one major load, and Defense division supplies batteries for ground vehicles, aircraft, like an ECU heater,” Sainsbury said. ships, submarines, satellites, unmanned aerial systems and soldierThe DRS microgrid ties these worn electric devices. generators together, thus dramatiRob Sainsbury EnerSys assists military customers in choosing the right battery cally improving efficiency. If each load for each use based on several factors. Is the battery meant for immedidepended on only one generator, the ate active use or will it be held in reserve and activated later? Is the generator would have to run 24/7, although much of its energy would battery to be used once or will it be recharged many times? Does the be unneeded. The microgrid averages out the loads, resulting in less battery need to maximize power or energy and over what temperature generating power and less fuel required. Sainsbury estimates savings range? Which chemistry is suitable for the application? Which conat 20 to 35 percent. figuration and form factor are required? For example, communication DRS also makes devices that control the generators, turning some batteries for soldiers must be light and comfortable to wear yet deliver into masters and other into slaves. The different generators must be enough capacity for long missions. Lithium-ion pouch cells meet operating at roughly the same voltage and their frequencies must be these requirements. in phase, or fire could result. DRS control devices can be programmed EnerSys makes a variety of battery chemistries, including Lithto prefer one generator for its fuel-using efficiency or to attempt to use ium-ion, Lithium-silicon-iron-disulfide, Lithium-thionyl-chloride and all generators equally to minimize maintenance actions. Lead-acid, each with different power and energy densities, voltages, DRS is now working with the Marines to develop a microgrid temperatures and cycle lives. By matching the right battery or capable of exploiting solar and wind power, along with battery storage. combination of batteries to each military use, EnerSys helps the Sometimes it would not even need generators at all. Sainsbury said military find the best integrated energy storage solutions. O this integrated small unit power program is in the second phase of development. DRS also makes the larger ECUs that serve major loads on the For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories battlefield. The company has submitted a proposal to the Marines to at www.mlf-kmi.com. improve energy efficiency of these units by about 20 percent. www.MLF-kmi.com

MLF  7.5 | 15


SUPPLY CHAIN

Compiled by KMI Media Group staff

Air Supply Airborne Systems, a division of HDT Global, has announced delivery of the final 10,000 pound Joint Precision Aerial Delivery System (JPADS 10K) to the U.S. Army under an initial full rate production contract. The JPADS 10K is a ram-air parachute system capable of carrying a cargo payload weighing up to 10,000 pounds. Deployed from an altitude up to 24,500 feet, the 10K can navigate more than 20 kilometers on its own before delivering its cargo to a preprogrammed designated location. The JPADS 10K will be placed into service throughout all services of DoD. It will be used to reduce the need for ground resupply convoys to remote locations and also allow aircrews to drop cargo far away from any ground threat.

“This milestone is the product of more than five years of effort by hundreds of people,” said Aaron Mebust, JPADS program manager at Airborne Systems. “We had a very challenging delivery schedule but we willingly accepted that challenge and with great teamwork we made it happen,” said Dave Seifert, vice president general manager operations. “We delivered the systems on time and to strict military requirements. As a result, U.S. forces now have a system that will save lives by keeping servicemembers out of harm’s way,” said Seifert. “The JPADS 10K is the second type classified JPADS purchased by the Department of Defense, following the selection and purchase

Trucks on Contract Mack Defense LLC, a wholly-owned subsidiary of Mack Trucks Inc., recently announced that it had been awarded a fixed-price with economic-price-adjustment/indefinite-delivery contract from the Defense Logistics Agency (DLA) Troop Support in Philadelphia, Pa. As part of this contract, Mack Defense will supply trucks and tractors of varying sizes and applications to the Army, Navy, Air Force, Marine Corps and federal civilian agencies through 2018. “We look forward to supplying DLA with our legendary Mack products for years to come,” said Steve Zink, president of Mack Defense. “We’re known for our durable trucks and a well-rounded portfolio. We will offer as many product variants to DLA and their customers as possible. Today’s trucks are all produced in the United States and are the cleanest and most fuel-efficient we’ve ever built.” The contract award is valued up to a maximum of $177.5 million.

16 | MLF 7.5

of the FireFly as the system of choice by the U.S. Army’s 2,000-pound JPADS 2K program,” concluded Mebust. The JPADS 2K has been in service in Afghanistan since 2008.

DLA Land and Maritime Earns Installation Excellence Award On May 20, Defense Secretary Chuck Hagel announced that DLA Land and Maritime was one of five winners of the 2013 Commander in Chief’s Annual Award for Installation Excellence. In recognition of the award, DLA Land and Maritime Commander Navy Rear Admiral (select) David Pimpo said, “Associates of this center have a proud tradition of excellence. Not only are they now a seven-time winner of the Commander in Chief’s Award for Installation Excellence, … they set a high standard throughout the Defense Logistics Agency that separates them from the rest. “It is the hallmark of excellence that has allowed us to achieve the success that we celebrate today,” he said. “It means that we are committed to sustaining high levels of performance from every part of our mission, … from contract specialists, to supply technicians, to those who serve on contingency teams on the front lines, to those who maintain this installation and keep us safe. And the bottom line is that [Defense Supply center Columbus, Ohio] associates are focused on meeting the readiness demands of the warfighter,” Pimpo said. DLA Land and Maritime Deputy Commander James McClaugherty also expressed his appreciation to the workforce. “This is the seventh time in 21 years we have won this award; leaders change, but this incredible workforce persistently excels,” he said. “This recognition is yet another affirmation of our associates’ sustained commitment to excellence in support of our men and women in uniform.” DLA Land and Maritime was recognized for its focus on performance, transformation, culture and its warfighter support providing logistic solutions to critical supply requirements. In addition, the installation was cited for its sales and operational planning implementation, mine resistant ambush protected vehicle sustainment program management, and the innovative actions taken to decrease backordered items.

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Critical Supplier Vice Adm. Mark D. Harnitchek Director Defense Logistics Agency

2013

Defense Logistics aGENCY


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Air ForceDefense Life sUSTAINMENT Logistics Agency CENTER

Critical Supplier

Q& A

Staying in Tune to Keep the Supply Chain Moving

Vice Admiral Mark D. Harnitchek Director Defense Logistics Agency

Vice Admiral Mark D. Harnitchek became director of the Defense Logistics Agency in November 2011. As such, he is responsible for providing the Army, Navy, Air Force, Marine Corps and other federal agencies with a variety of logistics, acquisition and technical services in peace and war. These services include logistics information, materiel management, procurement, warehousing and distribution of spare parts, food, clothing, medical supplies and fuel, reutilization of surplus military materiel and document automation and production. This worldwide mission is performed by nearly 27,000 civilian and military personnel. He previously served as deputy commander, U.S. Transportation Command, Scott Air Force Base, Ill. Harnitchek, a native of Philadelphia, received a Bachelor of Arts degree from Penn State University in 1977 and was commissioned through the Navy ROTC program. In 1987, he received a master’s degree in management from the Naval Postgraduate School, Monterey, Calif. Harnitchek has served in a variety of sea tours including two submarines, USS Will Rogers (SSBN 659) and USS Buffalo (SSN715); two ships, USS Holland (AS-32) and USS Proteus (AS-19); and the aircraft carrier USS Theodore Roosevelt (CVN-71). His shore tours include commander, Submarine Group 7, Yokosuka, Japan; the Navy Ships Parts Control Center, Naval Air Station Oceana, Va.; and the Chief of Naval Operations Staff. Flag assignments include commanding officer, Naval Inventory Control Point; vice director for logistics, the Joint Staff; Director, Strategy, Policy, Programs and Logistics, USTRANSCOM; and director, U.S. Central Command Deployment and Distribution Operations Center in operations Iraqi and Enduring Freedom. Q: You recently returned from a visit to the CENTCOM AOR [area of responsibility]. What’s your impression of CENTCOM’s progress toward retrograde disposal operations in theater and such, and what are some of the biggest challenges the DLA faces? A: I was, as usual, very impressed by everybody I met, whether in the Caucasus, Central Asia or Afghanistan. I think that the CMRE www.MLF-kmi.com

[consolidated materiel response element], which is a brigadesized unit responsible for retrograde that we’re a part of, is ready to go. They have their sea legs in terms of figuring out what the problems are and designing processes that are as streamlined as possible. The CMRE has their principles set in terms of minimizing risk to warfighters, touching things as little as possible and spending a lot of time moving or handling items that will eventually become scrap. For DLA, if we’re going to scrap something, we’re going to scrap it in place, touch it as little as possible and minimize movement across the road only to scrap it somewhere else. Simply put, be smart and be good stewards. Other than the magnitude of the job, I don’t see any sort of enormous challenges with the retrograde and disposition mission. We know what we’re capable of doing just because we’ve been doing this a while. Everything got there in a timely fashion and on time so whatever the timeline is for coming out of Afghanistan, I’m confident that we—the big we, the logistics nation—are going to figure out a way to support it. Defense Logistics Agency | MLF 7.5 | 1


dEFENSE lOGISTICS aGENCY

A rough terrain container handler of the 146th Transportation Company loading 20-foot shipping containers onto an outbound convoy. The image illustrates the partnering of commercial transportation assets directly with deployed military units. [Photo courtesy of U.S. Army]

Q: For the retrograde, does the DLA have a place at the table in formulating the timetable or has that guidance already been issued? A: We absolutely have a place at the planning table and that planning starts with the president’s guidance in regard to the force cap and the mission and everything else cascades from there. DLA’s big role in the retrograde mission is the disposition of all the equipment and material that will not leave Afghanistan. That could be hundreds to thousands of vehicles, tens of thousands of containers and damaged or excess equipment. We have the capacity now to cut up about 450 vehicles a month in Afghanistan and the wherewithal to process 40 million pounds of scrap a month. However, I don’t think that’s quite enough, so we’re going to expand our capability in the coming months. Something important is that we’re doing it all forward with major disposition sites at Bagram, Camp Pratt in the north, Kandahar in the south and Camp Leatherneck in the southwest. We’re also setting up something called hub-base disposal where a large forward operating base supports a satellite of combat outposts and smaller FOBs. The smaller installations send their disposal to the hub base and it will be cut up there. We’re looking to expand to about eight or nine of those. Overall, we’ll have the large complexes that are 20-30 acres, and probably between eight and nine smaller disposition operations out there throughout the regional commands with the intent to move it once, destroy it, and sell it as scrap. Q: What else is important to know about DLA’s forward presence in Afghanistan? 2 | MLF 7.5 | Defense Logistics Agency

A: We are everywhere. You really don’t go anywhere our forces are where there’s not a DLA representative of some kind. We have in the neighborhood of 200 people in Afghanistan representing all nine of our supply chains. In terms of volume and expense, two of our big missions there are supplying food and fuel. We want to make sure we’re in tune with the theater commander so as he draws down, we draw down. Both food and fuel are big commodities that you don’t fly in and have long lead times. Fuel sometimes is transported from as far as Latvia, food sometimes as far as here in the United States. It means planning ahead and making those adjustments for how long it takes based on lead times. It’s not rocket science, but if you’re not doing the arithmetic, you can either get behind pretty quickly or have too much. But I think we’re in good shape. The folks here, in the theater, the services, the agencies, and the interagency are really thinking hard about this and I’m confident we’re going to get it right. Q: How much of your budget comes from your customers, and how much of it is dependent upon what they purchase? A: It’s pretty much all from our customers. Last year we were $44 billion in sales, this year we’ll probably be in the neighborhood of about $40 billion. And all, with the exception of $4-5 billion in operating cost—comes from the sale of our material—food, fuel, repair parts, construction material, etc. So as DoD’s budget goes up and down, the art and science for DLA is matching our obligations [what DLA buys] to what the services have to spend—what they buy from us. If we get that roughly right, we won’t buy more www.MLF-kmi.com


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DEFENSE LOGISTICS AGENCY

cOMMANDERS & dIRECTORS

Vice Adm. Mark D. Harnitchek, SC, USN Director

Rear Adm. David F. Baucom, USN Commander DLA Troop Support

Brig. Gen. Mark K. Johnson, USAF Commander, DLA Aviation

Col. Jan K. DeMartini, USA Director DLA Office of Inspector General

Amy Sajda Director DLA Small Business (DB)

cORPORATE sTAFF

David Rodriguez Director DLA Installation Support

Brad B. Bunn Director DLA Human Resources (J1)

Maj. Gen. Kenneth S. Dowd Director, DLA Logistics Operations (J3)

Col. Joe E. Arnold Jr., USA Commander DLA Pacific

Col. Joseph E. Ladner IV, USA Commander DLA Europe and Africa

Col. Mark A. McCormick, USA Commander, DLA Central

Rear Adm. Ron J. MacLaren, USN Director Joint Contingency Acquisition Support Office


DEFENSE LOGISTICS AGENCY

Command Sgt. Maj. Sultan A. Muhammad, USA Senior Enlisted Leader

Renee L. Roman Chief of Staff

Edward J. Case Vice Director

Rear Adm. (Sel) David R. Pimpo, SC, USN Commander, DLA Land and Maritime

Brig. Gen. Susan A. Davidson, USA Commander, DLA Distribution

Brig. Gen. Giovanni K. Tuck, USAF Commander, DLA Energy

Phyllisa Goldenberg Director, DLA Strategic Plans and Policy (J5)

Kathy Cutler Director DLA Information Operations (J6)

Deborah L. Greger Director DLA Logistics Information Service

Fred T. Pribble DLA General Counsel (DG)

Stephen T. Sherman Director DLA Document Services

Twila C. Gonzales Director DLA Disposition Services

J. Anthony Poleo DLA Finance (J8)

Nancy M. Heimbaugh Director DLA Acquisition (J7)

Ronnie Favors Administrator DLA Strategic Materials

Rear Adm. Patricia E. Wolfe, USN Director Joint Reserve Force (J9)


dEFENSE lOGISTICS aGENCY

To reduce both cost and risk to personnel, and taking a lesson learned page from Iraq, the Army has established a number of materiel redistribution yards at several locations around Afghanistan. As much equipment, stores and scrap is handled and moved as few times as possible. [Photo courtesy of U.S. Army]

with our working capital than what the services have to buy from us. Again, not rocket science, but we have to pay attention to get this right. As for the budget, right now there’s a lot of uncertainty and we’re just taking it one step at a time, but we’ll get through it. In the early ’90s we went through some tough financial times and in my view it that was actually a little bit worse, so I’m confident we’ll get through this as well. As the vice chief of naval operations said at the recent meeting when he coined a phrase from the British during the dark days of the ‘Blitz’ in 1940: ‘Keep Calm and Carry On.’

we were there to support. From barges, blankets, cots and trash removal, we did a little bit of everything. Q: Were the relationships with FEMA and NORTHCOM preexisting to Sandy? A: Yes, the efforts for both food and fuel were pre-scripted. FEMA told us exactly what they wanted as a starting point so we were not trying to figure it out during the disaster, while the rain was coming down. Our arrangements for food and fuel are all contingency contracts and the second it looks like it’s going to be bad, we go into motion with our shipmates at FEMA.

Q: The services—Army, Navy, Air Force, Marines, Coast Guard— are obvious customers of yours. What is DLA’s role in servicing other governmental agencies in much the same way you do with the military?

Q: Over the past few years, an area of interest to DLA has been workforce development and diversification. What are the challenges in this area?

A: Our big role with other government agencies is during disasters. We were really very involved last fall during Hurricane Sandy relief efforts. We were linked at the hip with FEMA, NORTHCOM and the services basically for food, water, fuel and whatever else they needed. We provided approximately 12 million gallons of fuel, and not just diesel but we were putting gas in gas stations, we were putting gas in doctors’ cars, police cars, buses, taxicabs—we even fired up the Verizon diesel generators so they could keep the network running up there in the Northeast. We supplied power, water pumps, and working closely with the Army Corps of Engineers we provided generators to augment their capabilities. In all manner of logistics,

A: We’ve been very fortunate to enjoy fully funded budgets for the past 11 or 12 years. We’ve been very well-supported by the Congress with regard to supplementals so we’re not going to stop developing our workforce, but I want folks to be a little more judicious when they’re spending money. Certainly some of that will apply to professional development, but one of the things I’ve been very impressed with here at DLA is we’re very mindful of our investment in people. We have a host of schools we send people to, employees can get a master’s degree; however, I don’t want to say the sky’s the limit. But this is a great place to work if you’re looking for professional development, online training and off-campus training. That’s at every level, so

6 | MLF 7.5 | Defense Logistics Agency

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dEFENSE lOGISTICS aGENCY

I think we have a very great model here that looks at where you are in the organization and what you need to know to do your job. I’ve been really impressed with the leadership and learning continuum. We’re not going to stop focusing on workforce development, but I think we’re going to have to lean ourselves out a little bit. Q: Is there a concern that there might be a brain-drain based on the age of your workforce and the development of upcoming in size and the limitations you make? A: I’ve been hearing about the aging workforce since I was an 06 in the late ’90s. I can recall commanders showing the ‘average age of our workforce is 48’ slide and projecting that the older workforce would eventually keel over from all the work. Well, today the average age is still about 48 and I’m not worried about it. I’ve come to find that that average 48-year-old is a highly experienced, seasoned veteran in logistics who not only knows what it is they’re supposed to do, they know how to do it, and they have the benefit of many years of experience and knowledge that they can pass on to our new generation of employees. I don’t know what the phenomenon is here that keeps our workforce right around 48 years old, but whatever it is I want to keep it going.

Q: What are the measures DLA implements to monitor against counterfeit parts entering the supply chain, and are those efforts more manpower-driven, are they technology-driven? A: The risk now is higher than it’s ever been and it’s only going to get worse. You have entire industries overseas whose mission is to sell us counterfeit parts or parts that don’t perform as well. The risk is highest on the electronic end because they’re so easy to counterfeit. But all of the parts in our supply chain, to one extent or another, are subject to some risk so we’re taking a measured but aggressive approach. We’re focusing on the supply chains that are most at risk, and that’s the microchips and components that go in electronic equipment. The parts themselves don’t cost a lot of money, but you have $100 microcircuits that go in a Minuteman missile, a Virginia Class submarine, an F-16, you name it. The problem, of course, is that when that part fails or doesn’t perform very well, ultimately people’s lives and the mission are at risk. It’s up to us as the folks who buy these microchips to ensure that the technicians doing the work have the right parts. There are four things we are doing. First is to only buy from vendors on our qualified producer or distributor list. Fundamentally, if you’re not on the list, we’re not buying from you.

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dEFENSE lOGISTICS aGENCY

With materiel handling equipment in the foreground, and stock awaiting disposition in the background, the Bagram Air Filed resort facility is one flow point for the movement of materiel out of Afghanistan. [Photo courtesy of DoD]

Second is a vigorous effort to test what we already have in stock. We have routines where we regularly pull items off the shelf and test to make sure it’s compliant—if it is, we put it back. If it’s not, we do something about it. Third is a software system that operates much like the routines that your credit card company uses. For example, if there’s a pattern on your credit card bill that doesn’t quite look like you, somebody will pick up the phone and call you, or freeze your credit card and say ‘Hey, did you spend money in Shangri-La?’ And of course the answer is no, which means someone is using your credit cards. Our software looks at people who want to do business with us that perhaps have never done it before, which is not necessarily bad, but it’s a red flag. Companies with post office boxes, but not real addresses, phone numbers that go nowhere, etc. All the record-keeping forensics that indicates that a person we’re about to do business with isn’t quite on the up-and-up, or that a person we have done business with is sort of suspect. Fourth, and this is a big one, we are now requiring all of our microcircuit suppliers to apply a DNA mark to all of their microcircuits. That is a process whereby the microcircuit is marked with DNA-impregnated ink. It’s nearly impossible to counterfeit and is a fail-safe way of determining whether or not you have an authentic microcircuit. You can check the microcircuit by doing nothing more than shining one of those little lights on it that the TSA uses to check you ID at the airport. Basically, give somebody a light and they’re a counterfeit part detector. If it doesn’t have that mark, it’s not one of ours. We’re paying our suppliers to apply that mark and it’s part of the contract for all of our microcircuit producers. 8 | MLF 7.5 | Defense Logistics Agency

Q: About how old is this process? A: It was being tested when I got here about 14 months ago, and our folks think that this is the only fail-safe way to assure that we’re getting good parts. We have four lines of operation to combat counterfeit parts with the DNA marking being just one of them. You shine a light on it and can tell that it is, in fact, marked so it’s a good part. If you have further questions, you can send it back to the manufacturer and they can actually look at the DNA, tell you exactly where it came from, who made it and where it was made. Each manufacturer has its own unique DNA marking. Q: DLA has used reverse auctions in the past. Are you still a fan of reverse auctions? A: I’m a big fan of reverse auctions. They don’t work for everything but where there’s a lot of competition, the acquisition value of the contract is big and it’s a multiyear contract, they work very well. Reverse auctions don’t work as well for items where there’s not a lot of competition and the dollar value of the acquisition is relatively low. But when the dollar value is big and there’s a lot of competition, folks get very focused on competing for that next contract. We just had a recent example at DLA Troop Support where a reverse auction enabled almost half a billion dollars in savings— that’s some real money. But the auctions don’t work for everything and we’re working closely with our suppliers to determine where to use the tool to get the best outcome. www.MLF-kmi.com


dEFENSE lOGISTICS aGENCY

Defense Logistics Agency Director Vice Adm. Mark Harnitchek, Maj. Gen. Kenneth Dowd, DLA Director, Logistics Operations, and others take a tour of the DLA mobile command trailer during a disaster support table top exercise. The mobile command trailer was being used as an emergency command center. [Photo courtesy of DoD]

Q: A program that’s been instituted here is Captains of Industry. Can you tell me about that program, why it exists, what the benefits are, and is it going to expand?

Q: Do the people that you invite, the captains of industry, include the leaders of the big companies, but also small businesses?

A: In the SECDEF’s Defense Planning Guidance, he said, “…talk to industry.” There’s a lot of trepidation out there in industry about what the Budget Control Act and sequestration holds for them. So rather than just let people guess, it’s best to go talk to them. The folks at AT&L [Acquisition, Technology and Logistics] will tell you the relationship between government and industry takes place at two levels. It takes place at my level and my counterpart’s level in industry, and it takes place at the contracting officer level. And for the relationship to work, that relationship needs to exist at both levels, not just the contracting officer. And frankly with all this budget pressure, we’re not going to take the cost out of the enterprise with talking to our shipmates in industry. So it’s imperative that we talk to industry about what it is we’re trying to achieve strategically. Our big program here at DLA is called our “10 in 5”—reducing costs in our material and operations by 10 percent in five years. Industry is going to be a big part of that, if not the biggest part, because that’s where all our money is. So this effort has been very well received. We met with all of our supply chains the first year and we’re starting our second round. We decided that our mission is to further delight the warfighter while taking cost out of the logistics equation. And we have a host of initiatives to do that and we’re going to hold ourselves accountable to do them all.

A: Yes we do. In fact, some our supply chains, like Clothing and Textile, are almost all small business—and last year DLA spent more than $2.6 billion in that supply chain. That is big money in a lot of small businesses. And for those who attend, I ask them to not just represent Boeing, DeRossi uniforms, or Sysco foods. Instead, I ask them to represent their industry and find out where—competition notwithstanding—there are issues and interests that apply to them all. So even though they are ferocious competitors in the market for DLA’s business, one of the things we must do collectively is forge a better relationship that drives costs out and better serves the warfighter.

www.MLF-kmi.com

Q: Any closing thoughts about the men, women and mission of DLA? A: I’ve been a customer of DLA for 35 years. I knew it was big, I knew it was powerful, but I never knew how big or how powerful until I got here. It is frankly a national treasure. And the real treasure is our dedicated workforce and their performance is eye-watering. They do it all over the country and around the world. DLA is a big, complex, wonderful machine and I am tickled pink to be in charge. I’m delighted every day watching what our people do and how they do it. It’s a great time to be serving our country as a logistician. O Defense Logistics Agency | MLF 7.5 | 9


dEFENSE lOGISTICS aGENCY

DLA Top Contracts FY12 SUPREME FOODSERVICE AG

$2,543,688,933.50

EQUILON ENTERPRISES LLC

$2,017,272,908.28

AMERISOURCEBERGEN DRUG CORP.

$1,378,124,617.85

VALERO MARKETING AND SUPPLY COMPANY

$1,231,988,085.35

REFINERY ASSOCIATES OF TEXAS INC.

$1,193,389,702.80

WORLD FUEL SERVICES EUROPE LTD

$964,668,470.88

ATLANTIC DIVING SUPPLY INC.

$817,714,465.12

BP PRODUCTS NORTH AMERICA INC.

$815,772,268.32

B P WEST COAST PRODUCTS LLC

$781,823,915.50

RED STAR ENTERPRISES LTD

WESTERN REFINING COMPANY, LP

$197,874,000.00

HONEYWELL INTERNATIONAL INC.

$93,651,726.36

ALON USA, LP

$196,555,231.93

$91,488,529.99

LOCKHEED MARTIN CORP.

$190,031,915.19

BELL BOEING JOINT PROJECT OFFICE

CONOCOPHILLIPS COMPANY

$183,548,891.71

SEVEN SEAS SHIPCHANDLERS LLC

$88,766,780.76

OWENS & MINOR DISTRIBUTION INC.

$179,754,008.24

MCDONNELL DOUGLAS CORP.

$87,892,615.62

MCKESSON CORP.

$179,400,696.25

$87,785,979.60

RAYTHEON COMPANY

$177,984,363.62

HERMES CONSOLIDATED LLC

PETRO STAR INC.

$172,570,555.38

NORTHROP GRUMMAN SYSTEMS CORP.

$87,631,646.45

CANADIAN COMMERCIAL CORP.

$83,475,387.58

READYONE INDUSTRIES INC.

$80,339,779.83

BAE SYSTEMS AEROSPACE & DEFENSE GROUP INC.

$79,718,056.29

LOCKHEED MARTIN AERONAUTICS SERVICE-INTERNATIONAL

$79,160,973.37

BELL HELICOPTER TEXTRON INC.

$77,836,034.20

CARDINAL HEALTH INC.

$169,078,227.01

CFM INTERNATIONAL INC.

$168,137,293.09

QATAR FUEL (WOQOD)

$162,905,613.00

GS CALTEX CORP.

$162,380,646.55

$688,467,145.56

AMERIQUAL GROUP LLC

$156,139,271.68

CARDINAL HEALTH INC.

$560,841,975.48

HONEYWELL INTERNATIONAL INC.

$153,917,401.12

KUWAIT PETROLEUM CORP.

$556,300,985.37

BP PRODUCTS NORTH AMERICA INC.

CROWLEY PETROLEUM DIST INC.

$151,173,003.02

$552,521,276.24

S-OIL CORP.

$511,387,221.24

BELL HELICOPTER TEXTRON INC.

$148,755,197.59

IPC (USA) INC.

$77,275,560.28

SOURCE ONE DISTRIBUTORS INC.

$145,235,929.69

TIMKEN AEROSPACE TRANSMISSIONS LLC

$73,275,937.00

OSHKOSH CORP.

$142,777,245.82

GOODRICH CORP.

$71,705,324.03 $71,456,798.46

ABU DHABI NATIONAL OIL COMPANY FOR DISTRIBUTION

$423,049,392.00

SCIENCE APPLICATIONS INTERNATIONAL CORP.

$418,570,808.74

ASIA COMMERCE NETWORK

$139,911,306.00

VEYANCE TECHNOLOGIES INC.

EXXON MOBIL CORP.

$409,361,367.27

CARDINAL HEALTH 200 INC. (5186)

$135,759,315.45

CARTER ENTERPRISES LLC

$71,046,123.65

BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION

$134,030,446.72

PTT PUBLIC COMPANY LIMITED

$70,589,820.79

AMERICAN APPAREL INC.

$70,263,483.62

$126,454,818.68

IRVING OIL TERMINALS INC.

$69,238,810.90

$124,406,305.55

MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.

$406,497,328.14

TOTAL RAFFINAGE MARKETING

$385,224,950.58

CHEVRON U.S.A. INC.

$357,138,331.97

COMPANIA ESPANOLA DE PETROLEOS SA

PHILLIPS 66 COMPANY

$354,409,335.76

DELEK REFINING LTD.

GENERAL ELECTRIC COMPANY

$339,995,941.06

PLACID REFINING COMPANY LLC

$336,134,788.27

PETROMAX LLC TESORO HAWAII CORP.

HUNT REFINING COMPANY

$69,165,008.41

W.S. DARLEY & CO.

$68,607,362.30

THE BOEING COMPANY

$123,121,984.01

FEDERAL PRISON INDUSTRIES INC.

$120,158,216.07

BAHRAIN MARITIME AND MERCANTILE INTERNATIONAL

$67,441,624.89

$314,652,971.60

UNITED TECHNOLOGIES CORP.

$115,493,554.36

NATIONAL INDUSTRIES FOR THE BLIND

$66,990,293.97

$302,703,782.62

NORDIC CAMP SUPPLY APS

$109,717,252.50

SUPREME FOODSERVICE GMBH

$107,060,781.55

BAE SYSTEMS SPECIALITY DEFENSE SYSTEMS OF PENNSYLVANIA INC.

$63,855,358.39

$284,409,340.25

TESORO REFINING AND MARKETING COMPANY

ANHAM FZCO LLC

$235,069,572.97

BP SINGAPORE PTE. LIMITED

$105,443,964.50

NUSTAR MARKETING LLC

$62,847,521.60

ACCENTURE NATIONAL SECURITY SERVICES LIMITED LIABILITY COMPANY

$62,257,439.54

THEODOR WILLE INTERTRADE AG

$60,952,345.95

SIKORSKY AIRCRAFT CORP.

$219,535,134.82

WORLD FUEL SERVICES (SINGAPORE) PTE LTD

$217,825,375.37

UNITED TECHNOLOGIES CORP.

$216,737,383.44

CALUMET SALE COMPANY INC.

THE BOEING COMPANY

$104,393,600.96

U.S. FOODSERVICE INC.

$101,176,109.82

CARDINAL HEALTH 200 LLC

$100,174,935.06

U.S. OIL TRADING LLC

$97,964,746.00

$211,121,550.00

SK ENERGY CORP.

$95,537,486.66

COASTAL PACIFIC FOOD DISTRIBUTORS INC.

$55,985,847.83

ENI SPA

$210,384,000.00

THE WORNICK COMPANY

$94,676,293.13

SOPAKCO INC.

$55,682,810.76

GARY-WILLIAMS ENERGY CORP.

$202,216,686.65

HAMILTON SUNDSTRAND CORP.

$93,931,815.70

HAMILTON SUNDSTRAND CORP. (3584)

$55,063,555.07

10 | MLF 7.5 | Defense Logistics Agency

www.MLF-kmi.com


SUPPLY CHAIN

Compiled by KMI Media Group staff

Modeling and Simulation for Seabasing The U.S. Navy’s seabasing concept can get troops and equipment to shore even if land bases are inaccessible or unable. But first, personnel and equipment must be transferred from large ships to smaller landing craft, no matter what the conditions. Unsteady and unpredictable waters and weather can create a difficult environment to perform transfers, putting people—and the mission—at risk. To address this challenge, Alion Science and Technology developed an actively controlled ramp system for the Office of Naval Research. The uniquely designed system counteracts the forces of waves and weather to function in choppy and turbulent seas with waves as

high as 2.5 meters and winds as fast as 21 knots, conditions which have never before been achieved. The Navy’s current process is to build a temporary bridge between two vessels, which makes it extremely tough to span two ships that are rising, falling and twisting at different rates, coupled with Marines and sailors lugging backpacks and other equipment. It becomes even tougher—not to mention more dangerous—to steady the bridge between an aircraft carrier and a much smaller ship, such as a water taxi. Starting with computer-generated designs, Alion’s engineers first produced a 1/12 scale model, which showed how the system could

C-130J—Newest Million Miler

The worldwide community of Lockheed Martin C-130J Super Hercules operators recently surpassed a landmark 1 million flight hours milestone, logging this time through numerous combat, special operations and humanitarian missions.

Thirteen countries operating C-130Js and members of Lockheed Martin’s Flight Operations and the U.S. government’s Defense Contract Management Agency teams contributed to this achievement. Hours were tracked beginning with the C-130J’s first flight on April 5, 1996, through the end of April 2013.

Radio Power Perkins Technical Services Inc. (PTS) has developed a device that provides warfighters the ability to remove tactical radios from a vehicle and have them operational anywhere there is AC power within minutes. The Power Supply Docking Station (PSDS) provides the warfighter with the ability to use tactical radios in fixed and semi-fixed environments without batteries or deadlined vehicles using AC or AC/DC power in a continuous, reliable and cost-effective fashion. “The PTS goal is to have our products available for use with every military organization,” said a company spokesperson. “The need for this capability exists across DoD.” According to the company, the PTS PSDS is efficient, lightweight, and provides a small footprint solution. While providing zero radio downtime and no lost communications, the PTS PSDS saves money, makes organizations more efficient, and can save lives. Designed to meet differing deployment requirements, the system supports 11 different systems supporting Harris, Raytheon and SINCGARS tactical radios.

www.MLF-kmi.com

greatly reduce the rolling and pitching of the ramp. The Alion team then successfully built a quarter-scale version that was demonstrated in real-world trials, as evidenced in Alion’s YouTube video. The tests proved the viability of the system and confirmed the technology’s ability to remain steady in difficult sea conditions. Now, based on the success of the trials, Alion is developing a full-scale demonstrator of the technology to support rapid and safe transfers of personnel from ship to ship, although the actively controlled system can also be applied to vehicle and cargo transfers as well. Ultimately, Alion’s transfer-at-sea ramp system brings seabasing one step closer to reality.

Safe Operations and Maintenance Support Honeywell has won a three-year, $72.4 million maintenance and training contract from the U.S. Army for Total Package Fielding Army Modernization Training to provide mission-capable vehicles and requisite training to safely operate and maintain heavy tactical vehicles. The award is a component of the ongoing support that Honeywell Technology Solutions Inc. (HTSI) has been providing to the Heavy Tactical Wheeled Vehicles Program for over 18 years. Heavy Tactical is part of the U.S. Army Tank-automotive and Armaments Command (TACOM) Heavy Tactical Vehicles Program Manager under the TACOM Transportation Systems Program Executive Office. HTSI was selected based on its expertise with maintenance, repair and overhaul, and up-armoring, fielding and training for military vehicles of all types. The HTSI staff is composed of experienced, certified mechanics who ensure that a new truck is fully mission-capable at the time of acceptance. Mechanics use Maintenance Support Devices that interface with the truck’s onboard computer systems to obtain pertinent data and guide all maintenance actions. Carey Smith, president of Honeywell Technology Solutions Inc., said, “HTSI has been involved in total package fielding for over 18 years, and our experienced staff of professional managers, mechanics and instructors offers the Army the best value team available. Our teams have fielded and trained thousands of soldiers all over the world, and they understand the importance of ensuring that our soldiers are equipped to operate and maintain these trucks in any situation and in any region.” MLF  7.5 | 17


AviAtion Supply ChAin

AAR has more of what government and defense organizations worldwide require — for airlift support, maintenance and modifications, logistics, mobility products and integrated communications. AAR solutions improve readiness and efficiency for critical missions ranging from defense to humanitarian relief. Agile, reliable and proven, AAR is a trusted supplier to government and defense customers.

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LOG Communicator

Q& A

Integrated Communications Help Ensure Smooth Logistics Support

Major General Kenneth S. Dowd Director, Logistics Operations Defense Logistics Agency

Army Major General Kenneth S. Dowd assumed duties as the director of logistics operations for the Defense Logistics Agency in August 2012. Prior to assuming his current position, he served as commanding general, 1st Theater Sustainment Command at Camp Arifjan, Kuwait, U.S. Army Central Command, Operation Iraqi Freedom, Kuwait, and Operation Enduring Freedom, Afghanistan. A native of Abington, Pa., Dowd graduated from Cumberland College, Williamsburg, Ky., in 1979 with a bachelor’s degree in history. He also received his commission through the ROTC program. He holds a master’s degree in logistics management from the Florida Institute of Technology, and is a graduate of the U.S. Army War College. His other military schools include the Quartermaster Basic and Advanced courses; Logistics Executive Development Course, the U.S. Army Command and General Staff College, Fort Leavenworth, Kan.; and the Armed Forces Staff College, Norfolk, Va. Dowd served in numerous assignments, starting in 1979 as battalion motor officer, 702nd Maintenance Battalion, 2nd Infantry Division, 8th United States Army, South Korea. Later positions include battalion motor officer; commander, Headquarters and Headquarters Company, 4th Supply and Transportation Battalion; S-2/3, 3rd Support Battalion, 4th Infantry Division (Mechanized), Fort Carson, Colo.; deputy chief of staff for logistics, G-4, U.S. Army, Washington, D.C.; logistics staff officer, and later supply and service management officer, U.S. Army Logistics Management Center, Fort Lee, Va.; operations chief, supply and services, director of logistics and deputy director, engineering and logistics, Sharpe Army Depot, Lathrop, Calif.; support operations officer; executive officer, 3rd Forward Support Battalion; and chief, Division Materiel Management Center, Division Support Command, 3rd Infantry Division (Mechanized), U.S. Army Europe and 7th Army, Germany. Dowd assumed command of the 299th Forward Support Battalion in June 1996, deploying to Bosnia-Herzegovina in support of Operation Decisive Edge. In June 2001 He commanded the www.MLF-kmi.com

Division Support Command, 1st Armored Division, U.S. Army Europe and 7th Army, deploying in support of Operation Iraqi Freedom, Iraq. His next assignment was acting deputy chief of staff and later as assistant deputy chief of staff, G-4, U.S. Army Europe and 7th Army. In August 2004, Dowd returned to Washington, D.C. to become the executive officer to the deputy chief of staff, G-4, U.S. Army. His joint assignments include logistics plans officer, J-4, United States Atlantic Command, Norfolk; director, logistics, engineering and security assistance, J4, U.S. Pacific Command, Camp H.M. Smith, Hawaii. In 2007 he served as the director for logistics, J-4, U.S. Central Command, MacDill Air Force Base, Fla. Dowd’s awards include the Distinguished Service Medal, the Defense Superior Service Medal; Legion of Merit with one Oak Leaf Cluster; Bronze Star Medal; Defense Meritorious Service Medal; Meritorious Service Medal with five Oak Leaf Clusters; Army Commendation Medal with five Oak Leaf Clusters, the Army Achievement Medal with two Oak Leaf Clusters, and the Army Staff Identification Badge. Q: General, I understand you’re making visits to DLA customers around the combatant commands. What are you seeing, what are you hearing? MLF  7.5 | 19


A: First of all, I’ve been here about nine months. I can tell you that Vice Admiral [Mark] Harnitchek is very aggressive about delighting our customers as we pursue cost-saving measures. We’re reaching out to strengthen our ties with our stakeholders. We have very experienced people forward deployed in the combatant commands’ logistics directorates. The feedback we’re getting is very good. A lot of decisions are being made on the ground, material disposition [retrograde] in Afghanistan for example, and we know within hours if customers want us to change a process, a procedure or anything else that needs to be addressed. Those linkages are very good with the folks in theater, both in the COCOMs and with the services. Several years ago we established service teams, led by O6s, and call them national account managers [NAMs]. These folks serve as a liaison to the services and DLA—they make sure we know services’ intents and priorities. Q: The NAMs, who are they linked with at the services? Their equivalent of J4 offices? A: The NAMs are linked directly to the service 4s. They connect with them in their daily updates and briefs, so when they have their [common operating picture-warfighter] or COP-Ws in the morning, they have a chair at the table. We’re linked very well with those folks. Q: The Joint Logistics Operations Center [JLOC] was recently recognized for its support of Hurricane Sandy. Tell me about that recognition of what they do, and also what is the center routinely tasked to do? What lessons learned from that disaster will you take forward into planning for the future? A: In March, the Joint Logistics Operations Center accepted the 2012 Unit of the Year award from SALUTE Magazine. This was a big honor. It took the greater DLA team to execute the many actions required to support the East Coast after the storm. We were tracking that hurricane as it was coming in, so we stood up our JLOC, which is a common operating joint logistics cell that went to 24 hour operations. After Hurricane Sandy devastated parts of the East Coast, we went into high gear. The DLA team immediately postured itself to provide support. The boss sent me forward into New York and New Jersey and we started providing logistics—pushing water, rations, generators and fuel, as well as arranging for debris removal. We contracted for water pumps from Florida, Texas and most of the East Coast, and brought them in so they could pump out the New York system. We treated it just like a combat operation. I was forward providing the boss intelligence on what we might need as far as water, blankets, electricity, copper wire, and whatever else the states needed. We were very well linked with the Federal Emergency Management Agency throughout the entire episode. We had DLA logisticians embedded with FEMA so we were able to quickly move assets and supplies to areas that needed them most. U.S. Northern Command realized what an enabler DLA is and we were plugged into NORTHCOM as well, almost like its Theater Sustainment Command 20 | MLF 7.5

We’re doing tabletops exercises with NORTHCOM and FEMA, looking at incidents that may happen in the southern and Midwestern United States, the New Madrid seismic zone for example. One tabletop we had included 26 of our partners—Red Cross, FEMA, Army Corps of Engineers and Army, for example. Because of how we prepare, we were ready when Sandy hit. Q: Things like the fuel and water removal capability, and all those things, were those capabilities that you already had in place? Were they part of your pre-established plan? A: Yes, our J7 [Acquisition directorate] has pre-negotiated contracts in place for those kinds of enablers in the event we need them. For instance, and just one example, one of the companies where we have a pre-negotiated contract was able to push 300,000 gallons of fuel within a matter of hours. We have several of these contracts in place to help us respond quickly to humanitarian contingencies. Q: Let’s talk about your interactions with logisticians from the other services. Do you interact with them on a regular basis? What form does that interaction take in order to make sure the procedures, tactics and techniques match between the services and what DLA requires? A: I have learned a great deal having spent the last 60 months developing the logistics in Kuwait and Afghanistan, and overseeing the drawdown in Iraq, forward-deployed with CENTCOM and as the Theater Sustainment Command commander for the two years prior to my DLA assignment. I know what it is to be a soldier sitting in a foxhole in Afghanistan in the middle of the night, wondering if his requirement has made its way all the way back to big DLA or Army Materiel Command. When I got back here, I wanted to make sure I developed the linkages with the services that would answer questions like that. For example, I meet with the service 4s probably once a quarter. Right after our talk here, I have a video teleconference with Lieutenant General [Patricia] McQuistion [AMC deputy commanding general] and we talk about material disposition and related issues. I do a weekly session with the team in Afghanistan, Brigadier General Steve Shapiro, Major General Ken Dahl and Major General Kurt Stein, on logistics efforts and what DLA’s doing. I’m really big on the communications out to those logisticians, to work those issues before they become major concerns. I’ve learned all that from the last 60 months while the CENTCOM J4 and in theater. We have to be able to link to the team at the theater level, operational level and strategic level. I really just try to shorten that gap. Q: Let’s turn to money and how that may affect you. How is DLA adjusting to today’s fiscal environment, and how does that affect how you do in particular? A: Right now for Afghanistan and the Pacific and those places that are hotspots, we’re providing the support they need. We’re taking a hard look at our forecasting and those things for the future that are currently in our inventories. We need to be as efficient as possible while supporting our warfighters. www.MLF-kmi.com


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U.S. Flag Services


Q: Do you use software systems to try to help you with predictive buying, predictive maintenance? A: We’ve got some of the brightest 06s [captains and colonels] here, who’ve done things like strategic oversight of depots. They adapt their operational experience into our DLA Enterprise Business System to get at effectiveness and efficiency. One of the big things Vice Admiral Harnitchek has done is Captains of Industry outreach, where he brings us together with companies like IBM, Boeing, UPS and FedEx. We talk about what we’re trying to do and how we can be more efficient. In turn they provide us with industry insight, and perhaps better ways to do supply and support efforts. Q: Ten years since the start of the Iraq War, and you spent five years or so in support of that theater. What are the experiences you bring back from that, and how has that impacted how you do business today—you as an individual in this slot? A: While I was overseeing the Iraq drawdown and the Afghan plus-up, I couldn’t help but notice that we have some great men and women—who are doing great things—and who have good ideas about how to do things better. I just wanted to bring the things I learned from those young men and women back here, and let the folks at the strategic level understand how hard it is to bring supplies into Afghanistan and to our bases there. When we are briefed back here in the states, we all sit here and say, ‘12 days; that’s pretty easy!’ But when you look at the infrastructure in Afghanistan and the other logistics challenges, it’s amazing what is being done daily by our troops forward deployed. The one point I always try to stress is how important logistics is on the ground and how well those young men and women have done. I don’t want people to misunderstand the difficulties and overburden the system with more than it can handle. There is a lot to deal with—the various supply routes, the border crossings, forward operating bases trying to manage supplies in and process excess inventory out. And as we know too well, the enemy gets a vote, too. I just try to lay out how tough this is and I want people to have a little patience back here, because those folks on the ground really are working it hard. Teamwork is the key—all supported by great processes and solid communications. Q: Are there any standout lessons learned from Iraq that you’re using today in your role at the J3 here? A: We’re working with some great leaders in U.S. Army Central and U.S. Central Command. The big thing was to take lessons learned from Iraq and push them to Afghanistan. For example getting RPAT [redistribution property accountability team] yards, demilling gear, and making sure we have the right kinds of equipment in the right place. We built the current plan based on lessons learned and information from Iraq. One of the things we did in Iraq was to put everything under the 1st Theater Sustainment Command [TSC] for Command and Control so we had one belly button. We took that concept and moved it to Afghanistan. Now the 1st TSC is the belly button for the logistics in Afghanistan. So we have one person to go to, and 22 | MLF 7.5

there are not five or six different organizations out there trying to prioritize things. One big lesson learned is how to manage the containers and scrap at the forward operating bases [FOBs]. Instead of putting a soldier at risk driving scrap back to Bagram, we cut it up and dispose of it in place, if at all possible, using our hub-based disposal operations. Q: As you said, you’re using the same concept; the mode of transportation getting out of the country is important, but you’re doing most of the work ahead of time before it even gets on the transport. A: In Kuwait we had use of the big road from Iraq into Kuwait, and so if we miscounted, for example thinking that we needed to send 20 trucks to a FOB to pick up containers, and they really needed 40, I could easily send more trucks up there to adjust. With Afghanistan being land-locked, we have to be pretty synched in our movements so when we go to a FOB and think that there are 50 containers and 40 vehicles there, we’ll have just the right amount of transport to get them out. There won’t be a lot of access because we’ll either be moving them down through Pakistan, up the Northern Distribution Network, or doing multimodal operations. So the land-locked country makes it a little harder than what we had to deal with in Iraq. Q: What will be DLA’s role in managing the drawdown? Specifically, what is DLA’s responsibility, what are you all managing? You’ve described some of those things, but what is the role to make sure what’s coming out is what should be coming out, what’s being disposed of in place is being disposed of in place? How does DLA work then? A: We have made sure we have a DLA footprint in those logistics camps. Years ago we tried to synchronize efforts from DLA here at the Headquarters at Fort Belvoir. Now we’re physically sitting in those logistics meetings in country to make sure we’re synched with what the warfighter needs. DLA knows the theater drawdown plan; we know what needs to come out as far as equipment, and we now know what needs to be demilled and where those demilling locations will be. We’re taking our cues from the warfighter, and we’re right in the meetings, so when they look around and say ‘Okay DLA, we’d like you to go to this location and help cut those things,’ we can be responsive. OSD has done a really good job in giving us policies on what we can cut up and what they want brought back. Having those policies in place early was a huge help and a lesson taken from Iraq. Q: Much of your career, if not all of it, has been spent doing logistics work. How would you characterize that, and all of those lessons that have helped you take over the job you’ve had today? A: The biggest thing is I just feel honored. I was trained at Fort Lee, went out to Grafenwoehr in Germany, did all those exercises wearing the Miles gear and learned how we do logistics. Then I had the ability to go and lead my team into Iraq in 2003 www.MLF-kmi.com


and set up logistics up to Baghdad. Basically, just the ability to do it in a fight and be successful and never have a guy like General Petraeus or General Brooks look back and say ‘Hey, where’s my logistics?’ Having been trained to do all that and the ability to do it in a fight these last five years—I couldn’t be more blessed as a soldier.

thinking about doing next?’ We need to continue doing a good job in mentoring our folks. The young colonels I see coming up are much smarter than I was; they are very aggressive and have been one of the big pluses for our logistics capabilities. Our military is in great hands as we move into the years ahead. Q: Is there anything else you’d like to add?

Q: Is DLA doing the right things now to grow the next-generation logisticians so that it’s not someone who just knows how to load a container, but it’s someone who thinks first, second, third order of effects out when you’re planning for logistics? A: A big part of my job is mentoring and talking to folks who are coming up, those young colonels, those young brigade commanders. So I think we have the right people who are coming up. Years ago when I started out, it was always about ‘I had more information than you did,’ so I knew something that you might not know—so I was the smartest guy at the table. What I’m seeing now and what I’m trying to push with our young logisticians is for them to share the information and take time with the young kids coming up in their command. Then those young kids who come up, you see them in the middle of Bagram or Kandahar and you take the time as a leader to sit down with them and say ‘Hey, you’re doing a great job. What are you

A: Well first, I’m honored to work here. I love the environment, I love the culture, I love who I’m working for. Vice Admiral Harnitchek pushes the envelope in a good way, a kind of guy who lets leaders like me run with the football. I try to finish every conversation by thanking the young men and women in our military and their families. The last five years, just like all of the other families, my wife led the way and did the duty getting our kids to and through college, and keeping things together at home. Families really are our heroes—they are the ones allowing these young men and women to go off and fight and take care of all of us at home. Our families are unsung heroes, and I couldn’t be on a better team. The Army Chief of Staff, General Ray Odierno, says it best: “The strength of the nation is our Army. The strength of our Army is our soldier. The strength our soldiers are our families.” The same could be applied to the DLA team. O

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Case Management A look at what’s new in

military shipping cases and containers. By Heather Baldwin, MLF Correspondent next two years as we further refine requireDoD biennial inventory was 319,981. This The ability of the U.S. military to deploy ments for development.” The aspects already number represents a 4 percent drop from quickly, anywhere in the world, demands a being fielded include enhanced capability to two years previously when inventory stood supply of shipping containers and cases that support more efficient monitoring of potenat 333,486. The drop is a typical fluctuation, can support that deployment. The industry tial container-related charges, due to factors including has responded to that demand with products and consolidated data views containers damaged beyond that today are lighter in weight yet more to improve internal business economical repair or having durable and more quickly deployable than processes. reached their maintenance ever before. Pelican Products Inc. expenditure limit, and DoD “What we hear from our military customhas been working with an providing containers to other ers comes down to three key needs: flexibilunnamed partner in the area entities through diplomatic ity, mobility and durability,” said Tim Smith, of trackable cases. “We are agreements or in support of government program manager for Stanley looking specifically at weapother enduring missions. “A 4 Vidmar. “Cases and containers must be flexible ons tracking,” said Kevin percent washout of containers enough to adapt to multiple uses and multiple Deighton, vice president of over a two-year period is users, highly mobile for fast deployment wherMark LaRue new product development at quite low, considering the ever the military needs them, and durable Pelican. “Customers are tryenvironments where DoD enough to stand up to harsh conditions and ing to do asset tracking, not operates, the average lifespan heavy usage.” just case tracking. They are of an ISO container and Stanley Vidmar cabinets originally were definitely concerned about the volume of containers created for heavy-duty industrial use. Through assets going missing.” Pelican reassigned,” said Mark LaRue, precision engineering, they have evolved to and its partners are leveraging chief, Global Container meet the toughest military applications. “We RFID and GPS technologies to Management for the Army’s like to say we’ve moved from practical to tactiensure weapons are accounted Surface Deployment and cal,” Smith said. “Our cabinets are designed to for during transportation and, Distribution Command minimize weight, yet individual drawers can upon arrival at a destination, (SDDC). hold up to 400 pounds each of heavy tools and ensure inventory inside a DoD uses different capaequipment.” Kevin Deighton case is automatically checked bilities for in-transit visibility, Recently, Stanley Vidmar released a Rapid against the payload list at the much of which Deployment Container Insert point of origin, reducing the need for physical is specifically geared toward and a Vertical Weapon Storage inspections. Reporting is by exception. tracking container content. System, both created with the “We are building in the ability to know Currently, DoD is researchspecific demands of the miliwhere a case is in the warehouse and when ing different technologies for tary in mind. “With these offerit leaves the warehouse. Customers can even use in tracking containers and ings and many others, we are put in route information; if a case is supposed other assets, but no specific able to provide comprehento be going down the 405 and it varies even solution has been approved sive solutions for the military. five miles off course, they’ll know,” Deighton or funded for implementation We can store weapons, we can explained. “It’s a secure web-based system across the DoD container fleet. store parts, we can be a mobile that we are taking down to the weapon level. Currently, DoD is developing a forward supply point, or we Assets are tracked inside the case and the case “comprehensive, single user can be a mobile backshop with Tim Smith is tracked as well.” interface solution for accountthe tools and parts necessary In December 2012, Pelican acquired ing for and tracking all containers owned or to maintain a fleet of wheeled vehicles, tracked Minnesota Thermal Science (MTS), used by DoD,” LaRue said. “Some aspects vehicles or aircraft,” Smith said. veterans of the temperature control case of that capability are already being fielded In the area of larger containers, the number business who specialize in moving critical this year while others will be built over the of DoD-owned containers as of last summer’s 24 | MLF 7.5

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Most recently, SKB Cases introduced the biopharmaceuticals and clinical trial 3RR series removable rack, shock and vibramaterials from point to point. In conjunction tion isolation rack case. These cases have with MTS, Pelican is working on cases been independently tested to meet MIL-STD that communicate in real time whether 810G. One of SKB’s primary focus points temperatures are trending outside acceptable when developing this new series was on the parameters. This technology will be available inner rack latching system. SKB designed a in late 2013 or early 2014. patented inner latch that directly couples the On the design side, Deighton said Pelislide-out inner rack cage into the outer rack can’s inter-stacking pattern (ISP) cases, which frame, thus transmitting all of the shock and are compatible across six different case sizes, vibration directly to the isolation system and from 4 to 25 cubic feet of storage, are trendprotecting the electronics within. ing toward rapid deployment capability. The design of these cases allows for stacking of unlike-size cases—a difficult, if not imposGoing Green sible, task prior to the ISP. “In the past, loadmasters had to work out the sizes of cases that Today’s energy-conscious military is would fill a 463L pallet. With the ISP, they pushing for lighter weight and more energy know they can put six cases on there and it efficiency in its containers. To meet that is just a matter of figuring out what goes in demand, AAR’s Mobility Systems division those cases,” said Deighton. As a result, Pelirolled out the lightweight multipurpose shelcan is seeing ISP cases increasingly being used ter (LMS), which the U.S. Army approved in to deploy immediately for humanitarian aid as July 2012. The LMS passed first article testwell as for military operations. ing, a critical milestone in the production and When designing cases to withstand the delivery of the shelter systems. military’s tough specifications for weight and The LMS design elements played a major durability, one of the key areas SKB Cases role in the Army’s selection of it. The LMS takes into consideration is material selection. features a multi-panel design rather than the SKB has worked with polymer companies to traditional folded two-panel design, manudevelop a polypropylene co-polymer for its I factured using friction stir welding (FSW) series injection molded case line that “has an techniques. FSW enables metals to be bonded impact strength that is 2.83 times stronger in their natural state, without melting or than our competitors,” said Robert Wilkes, the use of studs or fasteners. The result is a senior vice president, global operations at SKB stronger, lighter-weight shelter that is EMI Cases. “This allows us to design cases which capable, providing added value, isolation and will be lighter in weight and more durable protection for critical in-theater military and than other competitive products on the mardefense equipment. ket. Weight and durability are key points “Through this innovative manufacturing for the military as these cases are designed process, AAR improved the design and durafor deployment and we do bility of these critical defense not want to weigh down our structures while meeting warfighter any more than weight requirements,” said absolutely necessary. LighterLee Krantz, vice president weight cases also reduce logisand general manager of AAR tics costs. Every pound you Mobility Systems. “We believe do not have to airlift directly friction stir welding is a breakreduces transport costs.” through approach to building As the military focuses these shelters and represents more on C4I, electronic warthe future in welding and fare and cybersecurity, its lightweight design.” Robert Wilkes need for electronics cases has The U.S. Army, via RDEincreased. In response, SKB COM Contracting Center, Cases carries a full range of shock and vibration Natick Contracting Division, previously isolated rack cases, from 20-inch-deep hand awarded AAR Mobility Systems a five-year carry cases to 30-inch server racks. One line IDIQ contract valued at $14 million to manuof SKB rack cases has a patented 270-degree facture three variations of the LMS, includswinging hinged door, which Wilkes said is ing the Type I (electromagnetic interference the only rack case on the market that can be [EMI] shielded), Type III (EMI shielded with opened and closed while it is stacked, greatly tunnel), and Type V (Non-EMI shielded with reducing the deployment time. double rear doors). www.MLF-kmi.com

At Sea Box Inc., President Jim Brennan said he continues to note a trend toward “green.” As of mid-May 2013, Sea Box had delivered roughly 4,000 units to the Army, including dry-freight containers, shelters and workshops. That delivery pace is on par with 2012, when Sea Box delivered 10,000 total items in those three categories to the Army. One of the newest additions to the Sea Box catalog is its collapsible re-deployable shelter (CRS), a shelter built from shipping containers with high-grade insulation in the roof and walls. The CRS collapses to 2 feet in height for shipping; four collapsed shelters are the same size and shape as a standard cargo container, making them easy to ship. Since initial testing by the Army last year, Brennan said the company has made several improvements to the product and it is now in its third or fourth generation. Among the improvements: The door to the CRS is threshold-free so there is no tripping hazard. Additionally, the door is now self-closing via a hydraulic arm Sea Box added that is flush with and hidden within the wall panel. The self-closing capability will eliminate energy lost due to a door mistakenly left open. Another improvement: Sea Box created a closed-loop air conditioning system with pipes that click into the building. “You can deploy, take it apart, redeploy and you don’t need a mechanic,” explained Brennan. Quick-disconnect refrigerant lines mean no leaks and no need to charge the air conditioning system. Finally, Sea Box designed solar panels that simply snap onto the top of a shelter. “You plug it in, set it to the angle you want and you are on solar power,” said Brennan. The solar panels, embedded into 8-by-20-foot platforms, are the same shape as the container. They are 9 inches thick and stack 12 high; a stack of 12 is the same dimension as a container, making them easy to ship. Sea Box’s solar panels output 310W each, so at 24 total—the number used in the array for the CRS—the array produces 7.4kW of peak electrical power per hour. At five hours maximum power output per day, this can add up to more than 13,000 kWh in one year— more than the average energy consumption of a U.S. household, which was 11,280 kWh in 2011. O For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.

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Special Section

Modes of Transport Harnessing the size and scope of commercial transportation partners. By Peter Buxbaum, MLF Correspondent “Ocean carriers make enormous capital investments in On April 29, a civilian cargo plane operated by their fleets.” National Airlines crashed at Bagram Air Field in AfghanThe National Defense Transportation Association istan. Aviation experts later opined that the pilot was has estimated it would cost the U.S. government $65 likely taking off at a steep angle in order to limit expobillion to provide and maintain 60 militarily useful sure to enemy fire and lost control of the aircraft. vessels as compared to the $186 million the federal The incident illustrates the dangers to which civilgovernment now spends annually on the Maritime ian transportation providers are exposed when deliverSecurity Program (MSP). Under the MSP, established ing shipments to U.S. forces. The U.S. military relies in 1996, participating U.S. flag operators make their heavily on civilian operators to deliver a myriad of resources available to DoD during times of war or primarily non-lethal cargoes domestically and internaEric Mensing national emergency. In general, U.S. law requires that tionally. military and other government cargoes be carried on Leading transportation carriers pride themselves on U.S.-flag vessels. being able to put their global networks at the disposal of “The U.S.-flag commercial fleet is the most costtheir military customers. Still others specialize in develeffective means of sealift available to the government,” oping networks and infrastructures in remote locations, said Chris Heibel, vice president for sales and marketallowing the military to distribute such essential coming at American Roll-on Roll-off Carrier (ARC). “DoD modities as food, fuel and uniforms to forward operating has ready, reliable access to commercial vessels, interlocations. With the drawdown from Afghanistan, carmodal and logistics networks, and civilian crews that goes headed for combat zones are dropping, leading the are also available to crew government reserve vessels U.S. Transportation Command to wonder what it will do in time of need. MSP provides significant cost savings with the excess capacity within the Defense Transportaand efficiencies for the government, including zero tion System and to strategize around that dilemma. Kirstin Knott capitalization costs for expensive resources like ships The Defense Transportation System consists of and intermodal networks, zero maintenance costs for organic military assets and capabilities as well as those assets, and zero training costs.” provided by commercial providers, both of which exist Maersk Line has invested $1.7 billion since 2000 side by side symbiotically. “We are a complement to modernize its fleet and spent $500 million renewto what the military has the ability to do,” said Eric ing eight vessels in its Mideast Container Line service Mensing, senior vice president for government trade to support the U.S. effort in Afghanistan. “There is a at American President Lines, a U.S.-flag maritime carmilitary gray-bottom fleet,” noted Svenningsen, “but rier. “In terms of what we provide, we can do it faster, it cannot meet the entire military transportation cheaper and more efficiently by combining the military requirement by any stretch. The military fleet was not business and weaving it into our commercial networks. allowed to call on ports in Pakistan which were used We have the ability in very short order to pour DoD to deliver shipments to warfighters in Afghanistan.” business into our pipelines and ship it anywhere in the Chris Heibel The use of contract transportation services is not world. We go to any country where DoD can conceivably limited to the theater of operations. “By utilizing DoD’s Domestic be moving cargo.” Express Contract, DoD can ship within the U.S. using the FedEx “When the U.S. military contracts transportation with a commerdomestic network,” said Knott. “DoD no longer needs to provide cial carrier, it frees up military capability to be used in other areas where organic lift between Travis AFB and McGuire AFB, since they can tap commercial carriers may not yet be ready to provide service,” said into the FedEx flight from the Bay area to Newark via our Memphis Kirstin Knott, managing director at FedEx Services. “The commercial hub. This allows the organic lift to be used in more hostile areas.” industry has the ability to recapitalize aircraft much more frequently The disadvantages to contracting with commercial carriers are and with a lot less bureaucracy. As the U.S. military fleet ages and uncerminor, according to Knott. “When contracting for less than plane tain budgetary times continue, a buy-it-versus-fly-it decision must be load shipments, the U.S. military is limited to the scheduled service made. It makes more sense to use commercial capabilities instead of which the commercial carriers provide. A tradeoff is that the ability to putting additional hours on old planes.” reroute a commercial aircraft is eliminated,” she explained. “The government doesn’t have the wherewithal and the money to Knott views the optimal cargo for commercial air carriers as do what we do as an industry,” said Torben Svenningsen, senior direc“pretty cargo,” small parcels or loaded on a wooden pallet. “These tor of government sales at Maersk Line Ltd., also a U.S.-flag carrier. 26 | MLF 7.5

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Special Section are much more easily tendered to a commercial carrier,” she said. “Commercial carriers do carry oversized cargo. Sensitive items can be also handled via commercial carriers, although extra permits and diplomatic clearances are often required.” Ocean carriers can carry all types of cargo, according to Heibel. “Break bulk, container, sensitive, classified, perishable, medical, explosives, expedited delivery, military personal property, are all suited for contracting and are being used in support of ongoing operations,” said Heibel. “We have access to specific vessel types,” added Svenningsen. “We have the capability to move big generators and other awkward and odd-sized pieces where the military’s organic fleet might not.” Air express carriers like DHL Global Forwarding often carry high-priority, mission-essential cargoes for the U.S. military, such as equipment spare parts. “Most shipments move by ocean,” noted Pete Demarest, a director for strategic development at DHL. “Shipments that move by air are high-priority, high-value mission parts, things that affect readiness and capabilities like aviation. Aircraft get

grounded when they don’t have parts.” Other high-priority items moved by air include medical supplies. DHL won landing rights in Kandahar and began servicing military operations in Afghanistan toward the very beginning of the war. “DoD quickly became our largest customer,” said Demarest. Private transportations and logistics companies often bring unique solutions to the delivery of military cargoes and the repositioning of military assets. One logistics service, Supreme Group, has specialized in developing distribution networks for the U.S. military in remote environments since the 1950s. “We made specialty of serving hard-to-service areas,” said Craig Hymes, Supreme Group’s director of transportation. “A core competency of our company is to provide logistical services and support in hard-to-reach locations. Much of our focus over the last decade has been in Afghanistan, but we have a pretty broad coverage area.” Entering remote environments often means having to set up distribution networks from scratch, a task which Supreme Group accomplished in Afghanistan. “We set up a network from the warehouse

Enterprise Readiness Center: Preparing defense transporation for the future The drawdown will leave the Defense Transportation System with excess capacity. The thought at USTRANSCOM is that this capacity needs to be preserved in order to ensure future military readiness. But in order to accomplish that goal, this excess capacity cannot be allowed to lie fallow. And that means that the Defense Transportation System, which is defined in federal regulations as the military and commercial resources that support DoD transportation needs, has to drum up some new business. Some potential business may be just waiting to be grabbed up, because USTRANSCOM has been focused on supporting war efforts and has neglected other opportunities. But that depends on whether USTRANSCOM can tighten up its operations and offer potential customers some good deals. In order to make that happen, USTRANSCOM has established the Enterprise Readiness Center (ERC), a cross-functional team formed from USTRANSCOM and other military transportation components, to coordinate enterprise readiness initiatives and synchronize readiness efforts. “The expected decline in DoD-wide funding and workload after the redeployment of forces from Afghanistan will have a negative impact on the Defense Transportation System and USTRANSCOM’s ability to deploy, sustain and redeploy forces using organic and commercial transportation resources,” said U.S. Air Force Colonel Edward Koharik, the ERC chief. “At the highest levels of DoD, there is an awareness of the vital role USTRANSCOM’s organic and commercial mobility capabilities play in supporting not only ongoing operations but the new national military strategy as it emerges.”

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The ERC emerged as a result of the strategic plan for USTRANSCOM articulated by its commander, Air Force General William M. Frazier III. The plan requires budget cuts coupled with greater efficiencies. It also calls for providing higher and broader levels of service across DoD and other government agencies, especially to those elements that may have been underserved while the wars in Iraq and Afghanistan were ongoing. “When looking at the budget issue, we thought that establishing a cross-functional team was a good way to find opportunities to improve efficiency,” said Koharik. The ERC sees its essential mission as preserving the readiness capability for USTRANSCOM. “The ERC identifies and pursues opportunities to offset reductions in Defense Transportation System workloads by enhancing transportation services provided to existing customers, as well as expanding services and capabilities to other customers,” explained Koharik. The collaborative aspect of the ERC is the dialogue being conducted among U.S. military transportation officials from within and outside USTRANSCOM and with the command’s industry partners. “It brings together different modes of transportation as well as our military and commercial partners,” said Koharik. “We are taking a time-out during the drawdown to improve our processes. One way we are doing this is to look at commercial processes and see how we can incorporate them. This is more difficult to do in the middle of a war.” Another strategic focus for the ERC is to develop strategies to overcome the downturn in revenue as a result of decreased workload, by promoting USTRANSCOM as the transportation provider of choice. “This will involve generating

new Transportation Working Capital Fund business via strategic and customer-focused solutions and to expand services to non-Defense Transportation System customers,” said Koharik. Becoming the provider of choice means expanding USTRANSCOM’s focus beyond meeting the requirements of the Central Command for the conflicts in Afghanistan and Iraq. “Our customers include the armed services and the combatant commands as well as organizations such as the Defense Logistics Agency and agencies that work with foreign military sales [FMS],” said Koharik. FMS is another area where Koharik believes USTRANSCOM can pick up a lot of business. FMS business took a lower priority from the command during the Southwest Asia wars. “Foreign military sales are not always required to move cargo within the Defense Transportation System,” said Koharik. “We can work with FMS to combine cargoes with other customers so that everyone pays less for transportation.” USTRANSCOM also seeks to move non-military government cargoes, which could include shipments for the Department of State and the U.S. Agency for International Development. “We already have those relationships and have agreements in place with some of those agencies,” explained Koharik. “But we may not have been able to provide the services they were looking for while the wars were still going on.” The ERC also intends to help USTRANSCOM adapt to new U.S. national strategic priorities. “With the strategic pivot to the Pacific we will have to redefine what the transportation requirements will be,” said Koharik. “We intend to help the system adapt as the nation changes its focus.”

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Special Section “In-transit visibility can be very manual,” said Svenningsen. “Some to the tail end of the supply chain, where the end-users are located,” of the items can be sent by electronic data interchange but others can’t. said Hymes. The company makes use of its own transportation assets In some areas you can’t use GPS to track shipments or cell phone comas well as those of contracting companies. munications to get updates. The driver sometimes has to wait until he Supreme has been involved in Afghanistan since the beginning of leaves the base to report on the status. That may take some time.” that conflict. Much of its efforts have been directed toward the distriOther elements of the unique relationships surround military verbution of food and fuel. nacular and acronyms and the regulations and procedures surroundUPS is best known for parcel delivery, but its services to the U.S. ing military acquisitions. “DoD has its own language and it takes some military span its portfolio of supply chain management services. One time to understand any language,” said Demarest. “Nobody has more interesting piece of business UPS has taken on has been in the repoacronyms than DoD.” sitioning of armored vehicles out of Afghanistan. “The contracts are based on the Federal Acquisition Regulations,” “We created a multimodal solution,” said Greg Diven, managing said Heibel. “The FAR often have requirements above and beyond comdirector of enterprise accounts at UPS’s government defense sector. mercial terms and conditions. Costs must be incurred “The Marine Corps has hundreds of vehicles coming in order to be compliant with government regulations.” out of Afghanistan. We arrange to have those trucked “The Federal Acquisition Regulation is 1,875 pages from forward operating bases to the major airports long,” said Lloyd Knight, director of global government in Afghanistan. From there they are prepared for air operations at UPS. “It’s difficult to get involved in this shipments and we fly them two or three hours to ports market if you don’t have people familiar with the ins in Dubai or to Aqaba, Jordan. There they are washed and outs of the regulation.” and go through customs and turned over to our ocean “It is challenging for a small company to be complitransportation partner for shipment back to the United ant with government regulations,” said Knott. “Larger States.” companies have the resources to be able to review and APL pioneered a trans-Siberian route to get matedevelop standard operating procedures which comply rial into Afghanistan to complement ocean-inland Lloyd Knight with government contracting regulations.” routes through ports in Pakistan and Turkey. “Prior “The bottom line,” said Demarest, “is that you need to the conflict in Afghanistan, one of the few places in a deep understanding of the military supply chain to do the world we didn’t go was Afghanistan,” said Mensing. a good job.” “But we do have a long history in Pakistan.” Companies must also be able to absorb risk to Political and security problems suggested that carry shipments for the military. “For example,” said supplying forces in Afghanistan via Pakistan should Knott, the WWX5 contract, which covers worldwide be de-emphasized. The trans-Siberian route moves express service, international small parcel and air cargo from the U.S. west coast to the Russian port of freight shipments up to 300 pounds, “requires a sigVostochny on the Pacific coast, from which it is railed nificant presence within Afghanistan, yet there are 9,000 miles across the Asian continent for overland minimal commercial shipments being sent between the delivery to Afghanistan from the north. “The Russian Eric Ebeling U.S. and Afghanistan.” rail network is mature,” said Mensing, “and the Rus“It takes a company that has some risk tolerance to sian government has been cooperative.” operate in austere areas,” said Hymes. “There is a lot of uncertainty in The relationships forged by transportation and logistics providthese location and a lot of inherent dangers associated with working ers with the military differ significantly from those with commercial in these areas.” customers. “If DoD doesn’t get what it needs, lives may be at risk,” Perhaps one risk that needs to be borne is the reality that military said Mensing. “In the case of commercial customers, their factory operations in a given area and the business associated with it will might shut down.” eventually come to an end. “With the drawdown, volumes are already Perhaps because of the sensitivity of the cargo, the visibility way down in the region,” said Demarest. On the bright side, there will demands the military places on its carriers far exceed those which always be new opportunities. “We are looking at supporting the diploprevail commercially. “Commercial customers want to know where matic and aid activities that will continue,” he added. their cargo is, but they manage by exception, while the military keeps “There is strong support on Capitol Hill and within DoD for the tabs on their shipments as they flow through the network,” said use of commercial vessels and assets in the transportation of military Mensing. “DoD wants to see it coming as opposed to waiting for it goods,” said Eric Ebeling, president and chief operating officer of ARC. to arrive. We, as a company, recognize that delays could keep troops “The recent reauthorization of MSP through 2025 demonstrates both from getting food, so we give military shipments very high service DoD and Congressional commitment to the program and the use of priority.” commercial assets in the transportation of military goods.” “Military requirements for visibility exceed those in the comWith the drawdown in Afghanistan and better than a decade of hot mercial market,” Diven concurred. “They want visibility of containers conflicts coming to an end, changes are coming to DoD, no less than and all commodities in the container. In the case of moving assets to the United States Transportation Command. The future is uncertain like vehicles, they want full visibility at all touch points. They want to and challenging. O know when they leave the base, when they are in-gated at the airport, when they are loaded, when they arrive at transit points, when they arrive at washing point, when they are finished with washing, when For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories they are available to be loaded on a ship, when they are loaded, and at www.mlf-kmi.com. when the ship arrives at its destination port.” 28 | MLF 7.5

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Unlocking the full potential of a data center through mainframe transformation. In logistics, time is a precious resource. The key to successful operations is closely tied to speed, accuracy and efficiency. IT administrators supporting our global forces are increasingly being asked to enhance flexibility and response times, integrate with external agencies and partner with the private sector—all within a constrained annual budget. Yet, the applications central to these administrators daily existence are often based on outdated technology and cumbersome, proprietary systems. The pressure to improve operational efficiency should be motivation enough to modernize the valuable but costly legacy systems that support such operations. However, fear of change and risk of disrupting ongoing operations, both with users accessing these systems on the front-end and with administrators managing the back-end systems, often prevents an agency from changing the status quo. This article outlines the common challenges faced by www.MLF-kmi.com

organizations still reliant on mainframes for backend processing and introduces two proven alternatives to transform these essential systems into the modern, costeffective environments required for longterm success. For decades, mainframe computing has been the quintessential way to manage, process and support major IT operations. These systems have been entrenched with many of us since the beginning of data center operations and IT departments and became affectionately known as “big iron” because of their ability to handle massive workloads. As the heart of IT, these big iron systems often house the lifeblood of an organization with applications such as the Defense Enrollment Eligibility Reporting System (DEERS) and the Air Force Integrated Maintenance Data System. But these system giants have grown an Achilles’ heel—increasingly complex supporting

By Joe Trickey and Wendy Williams

environments, proprietary closed-system applications and software, and costly support staff made up of highly specialized developers, coders and administrators. Today, alternative x86 platforms are available with more agility and faster performance. They offer an open-system architecture and support commercial off-the-shelf software applications, with operation and maintenance costs at just a fraction of their big iron brothers’ annual price tag. These new platforms pave the way for new technologies and solutions, while their expensive brothers have to find ways to reinvent themselves—often adding hundreds and thousands of lines of code in the process. But many organizations lack the time, technology or proper methodologies to transplant the lifeblood of their operations onto these nimble new systems. And with continuing resolutions, budget allocations and the sequester, federal IT organizations MLF  7.5 | 29


are being forced to make tough choices and do more with less. With a legacy environment eating up 50 to 70 percent of an IT department’s annual budget, there is not much room left for integrating new technologies and solutions. Add in the fact that the once young and plentiful support staff of dedicated COBOL, RPG, Assembler and Fortran coders are retiring—followed by the next generation of developers that is focused on areas such as Java, C#, and .NET—and you see a staffing support pool shrinking to a critical mass.

Enter: Application renewal and transformation

Application renewal and transformation allows an IT organization to assess the applications, processes and assets they own and effectively shift these resources from expensive mainframe computing solutions to more cost-effective and agile x86-based environments. This can be achieved by re-hosting or re-architecting, with each clearly dependent on the IT department’s end goal in mind. The first method of re-hosting involves moving mainframe workloads, largely intact, to open-system architectures. By preserving existing application code, data and end-user interfaces, re-hosting offers the benefit of minimal disruption to ongoing agency operations while providing a scalable and stable environment for migrated mainframe workloads of any type. The key tenant of this approach is to minimize risk throughout the process. Only minor changes are made to transplant an application from the mainframe environment to the new x86 platform. Data is maintained intact and there is no change to application functionality and user interfaces, maintaining a familiar experience for operators and end users. This approach usually provides the fastest delivery and most desirable total cost of ownership. The second method of re-architecture involves redeveloping existing mainframe applications to take advantage of modern architectures (e.g., Java, .NET). Re-architecting retains critical agency functionality and eliminates obsolete code without disrupting an organization’s operations or service delivery. During the re-architecture process, automated tools are used to analyze existing code and develop an 30 | MLF 7.5

operating model of the environment. From this model, there is a clear picture of the application functionality, support elements and user process around it, as well as the end results. In a sense, it can unwrap legacy “spaghetti code” and streamline everything into an updated programming language using the original code and operational requirements as a blueprint. This approach also provides an opportunity to improve or add functionality to an application or set of applications to achieve a future state or better integrate an application into the existing environment from a functional standpoint. Every application transformation solution is unique and customized to meet an organization’s needs. This is an in-depth, deliberative, end-to-end process that follows a prescribed series of steps. Portfolio rationalization and application assessment are often needed first to provide a clear understanding of what exists today and how various renewal and transformation alternatives should be utilized to best improve agency services, reduce costs and boost efficiency. Application renewal and transformation has been utilized by hundreds of organizations to successfully modernize their key applications and processes to achieve overall cost savings and provide an impactful return on the investment to their bottom line.

Two Real-world Success Stories A human resource information provider for the U.S. military re-hosted its DEERS application off the mainframe to distributed servers to reduce costs and improve operating performance and efficiency. The organization determined that re-hosting its AON- and IBM CICS-based system provided the greatest return and represented the lowest risk to its users. By choosing to re-host, the agency was able to reduce its annual operating costs 75 percent and implement a target system that has successfully run millions of transactions per day for over a decade. A Canadian province re-architected a critical motor vehicles application to a modern environment to comply with new regulations. The agency’s 15-year-old application, written in 2 million lines of natural code, was costly to update and difficult to support. After consolidating

functions and removing unused components, the modernized application reduced code complexity to 356,000 lines of Java and 168,000 lines of XHTML. Re-architecture helped create a system with a vastly simplified program base and significantly reduced maintenance costs, while maintaining all required businessrelevant functionality.

Selecting the Best Approach The questions you need to ask yourself are simple. Does your agency face cost and agility challenges as it looks toward the future? Even more importantly, does your mainframe computing environment allow you to rapidly execute on your plans and visions? One of the biggest roadblocks to application modernization is fear of change. Organizations are used to running things a certain way, and their legacy applications are a result of years of hard work and experience. No commander was ever criticized for maintaining the status quo and delivering the required applications of the past; however, the new reality is that the world and technology are changing and applications must be reworked to provide core business benefits in today’s environment. New federal goals and mandates add yet another challenge, along with new technologies like cloud computing. That means that these applications must be modernized, re-hosted or re-architected if the organization is to take advantage of the cost, flexibility and agility benefits of modern IT infrastructures. Fortunately, the solutions and tools to deliver this type of end-to-end modernization solution are readily available, simple to deploy and, with a company like Dell, backed by an organization with significant experience and commitment to making modernization work. O Joe Trickey (joe_trickey@dell.com) is Dell’s federal marketing manager, Dell Inc. Wendy Williams (wendy_williams1@ dell.com) is Dell’s application modernization marketing manager.

For more information, contact Editor-in-Chief Jeff McKaughan at jeffm@kmimediagroup.com or search our online archives for related stories at www.mlf-kmi.com.

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The advertisers index is provided as a service to our readers. KMI cannot be held responsible for discrepancies due to last-minute changes or alterations.

MLF RESOURCE CENTER Advertisers Index AAR Corporation.........................................................................18 www.aarcorp.com American Military University.....................................................23 www.amuonline.com APL................................................................................................21 www.apl.com/usflag Aviall...............................................................................................7 www.aviall.com Boeing.............................................................................................5 www.boeing.com CribMaster...................................................................................11 www.cribmaster.com/missionready Dell............................................................................................... C3 www.dell.com/appmod DynCorp.........................................................................................9 www.dyn-intl.com IHS..................................................................................................3 www.ihs.com Inventory Locator Service LLC...................................................12 www.ilsmart.com/military Oshkosh Corporation Defense.................................................. C2 www.oshkoshdefense.com/jltv SAIC.............................................................................................. C4 www.saic.com/logistics SupplyCore.....................................................................................1 www.supplycore.com Special PULL-OUT SUPPLEMENT

National Industries for the Blind................................................3 www.nib.org Perkins Technical Services Inc....................................................7 www.pts-inc.com Supreme Group.......................................................................... C2 www.supreme-group.net Supreme Group.........................................................................4-5 www.supreme-group.net

Calendar June 12-14, 2013 National Logistics Forum Arlington, Va. www.ndia.org/meetings/3760

September 20-23, 2013 NGAUS Conference Honolulu, Hawaii www.ngausconference.com

August 5-7, 2013 Tinker and the Primes Midwest City, Okla. https://diausa.org/ tinkerandtheprimes

September 24-26, 2013 Modern Day Marine Quantico, Va. www.marinecorpsexpos.com

September 16-18, 2013 Air & Space Conference National Harbor, Md. www.afa.org

October 31-November 3, 2013 Airlift/Tanker Association Convention/Symposium Orlando, Fla. www.atalink.org

NEXTISSUE

July 2013 Vol. 7, Issue 6

The Publication of Record for the Military Logistics Community

Cover and In-Depth Interview with:

Sharon E. Burke Assistant Secretary of Defense for Operational Energy Plans and Policy

Features

Global Supply Chain

Warehousing requirements and systems in forward locations.

Rock Island Arsenal

A profile of the current and planned contributions of the facility.

Domestic Emergency Response Logistics

Whether a hurricane, a super storm or a terrorist event, civilian response can be aided by the military’s ability to surge logistics capabilities.

PBL & Delivered Savings

Can PBLs deliver the level of savings and cost avoidance they have always promised?

Special Section Asset Visibility Tracking systems allow what starts on the manifest to arrive at its destination not just on paper but in the now.

at the U.S. Army Sustainment Command A special pull-out supplement featuring an exclusive interview with Colonel Mark Paget, commander of the 401st Field Support Brigade. The two-page Who’s Who pictorial spread will be a detailed look at the Army’s Sustainment Command, as well as its top contracts.

Insertion Order Deadline: June 21, 2013 Ad Material Deadline: June 28, 2013 www.MLF-kmi.com

MLF  7.5 | 31


INDUSTRY INTERVIEW Military Logistics Forum Mark A. Whalen Senior Vice President, Operations AM General Q: How would you characterize AM General’s logistics and support operations?  A: AM General’s Spare Parts Logistics Operations provides primary service and spare parts to the existing global fleet of HMMWVs. We are the only company certified to remanufacture HMMWVs to original specifications. We also provide after-market service, training and technical publications for company products on a worldwide basis. Additionally, the company’s Systems Technical Support group is providing engineering and logistical support to the U.S. Army’s TACOM Life Cycle Management Command and PEOs under contracts for medium and heavy trucks as well as the HMMWV family of vehicles. AM General STS has also supported several other U.S. Army systems in the past such as the M9 armored combat earthmover, the M1A1, minesweeping and mine removal equipment, deployable bridging systems and associated boat supporting systems. During the past 50 years, AM General has distinguished itself as the premier light tactical vehicle manufacturer in the world, having produced more than 1.5 million vehicles, approximately 300,000 of those being the venerable HMMWV which we have built, sold … and continue to sell worldwide. That said, with the tremendous wear and tear these vehicles are subjected to on a daily basis, consistent, reliable and affordable service and support is absolutely key in providing our valued customers what they need. We provides award-winning worldwide supply chain management and field service support, dealer and technician training, advanced driver training, warranty support, customer satisfaction analysis, and on-site warehousing and parts support at strategic locations—from military depots to overseas locations. In the past 12 months, we have shipped more than 4.7 million certified lineitem parts worldwide for HMMWV fleets in 21 nations in addition to U.S. armed forces. We have also provided specialized instruction to more than 3,200 students from 12 countries and have deployed field service representatives [FSRs] to 23 countries to 32 | MLF 7.5

assist customers. Our FSRs provide up-todate technical expertise and hands-on training to operators, technicians and military instructors. We also provide global support for optimizing total life cycle performance through maintenance planning, interactive technical manuals, spare/repair parts provisioning, and other services for HMMWVs and other military systems. Our facilities in Indiana include an administrative center for order processing and a 300,000-square-foot warehouse that stocks, packs and ships parts around the world. AM General supports and supplies more than 30,000 part numbers and carries an on-hand inventory of more than 15,000 part numbers.  Q: Is your experience in global logistics and support a discriminator when bidding? A: Absolutely. For decades, AM General has demonstrated it can provide immediate fielding logistics support using the company’s world-class infrastructure and personnel already in place. This is the same capability that earned accolades in the latest CPARS evaluation for the HMMWV Integrated Logistics Partnership Customer Pay Program in the areas of quality control, responsiveness, cost control, customer service, personnel and small business utilization. Additionally, AM General performs interim contractor support for a number of pre-fielded, fielded and recap/reset vehicles. In addition to supplying the government with FSRs, we have initiated engineering support into the field to assist with engineering efforts related to the HMMWV. Also, we have TRADOC certified training personnel

available to perform classroom and handson training to meet vehicle fielding requirements. AM General FSRs are also available to support unit fielding, support incident investigation, assess battle damage/repair, report the findings, and return the vehicle(s) to ready status. AM General presents an highly skilled array of experienced technical staff to effectively provide our customers with total fleet life cycle support—from beginning concept through production and into reset and recapitalization to extend the fleet life cycle. This is an immensely important discriminator, and no other contractor can make this claim in the unique light tactical fleet segment. This talent and experience will be particularly valuable to our customers as AM General continues supporting the U.S. military with the most effective solutions for JLTV and for GMV1.1 light tactical vehicle programs. Q: How are you working with the military to help introduce cost savings? A: When one looks at the number of military vehicles we have produced over the years … approximately 1.5 million; the long-term relationships we have built with our suppliers in 43 states and around the globe; and the commonality of proven parts that we have built into our numerous vehicle offerings, it’s not hard to see the tremendous affordability we can offer based on economies of scale. Having a vast U.S. supplier base already established is another reason AM General can affordably meet the military’s deadlines. We can also leverage our global supply chain network. Because AM General has 50 years of experience in designing, developing and producing light tactical vehicles, it can leverage a commonality of parts through its U.S. and global supply chain network to realize savings, maximizing economies of scale. Also, because many of these common parts have been tested and battle-proven in our existing portfolio of light tactical vehicles, AM General does not have to invest in manufacturing unique, high-cost, non-tested parts for its innovative portfolio of vehicle solutions. O www.MLF-kmi.com


Break the legacy chains holding you back. Dell Application Modernization Services can transform your legacy IT systems into the modern, efficient environment you need to outpace your competition. Our comprehensive suite of application modernization services will help you migrate entire application portfolios with less risk and more speed.

Learn more at dell.com/appmod


Logistics Solutions for Affordable Readiness NATIONAL SECURIT Y The U.S. military needs reliable operational availability at a low life-cycle cost. To provide this affordable readiness, SAIC delivers a wide range of logistics, product support, and supply chain management solutions. Smart people solving hard problems. Visit us at saic.com/logistics

NATIONAL SECURIT Y • ENERGY & ENVIRONMENT • HEALTH • CYBERSECURIT Y

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MLF Vol. 7 Issue 5 (June 2013)