FORT BELVOIR, Va. –
Transforming future capabilities rely on understanding the role of a combat support agency and its expertise in supply chain management, the Defense Logistics Agency director said while meeting with the Assistant Secretary of Defense for Energy, Installations and Environment July 30.
“We're a combat support agency, so we should prioritize those things that support our warfighters and the execution of their combat mission,” said DLA Director Army Lt. Gen. Mark Simerly.
DLA senior leaders met with ASD for Energy, Installations and Environment Dale Marks to discuss challenges with critical mineral storage, aging infrastructure, bulk fuel support and emerging chemicals concerns.
Marks emphasized the critical minerals mission.
“It is not about mining critical minerals, but ensuring we store these critical minerals in the proper infrastructure and in locations with adequate rail, transportation and distribution networks to move the material in a time of need,” he said.
Referencing the Defense Department’s efforts to consolidate and divest DLA’s strategic materials-handling roles and responsibilities after the Cold War, Simerly said there are always opportunities to change the agency’s operating procedures to meet new mission requirements.
“While the current reporting for strategic materials is done annually asset availability is going to be important moving forward,” he said.
Marks stated that the Defense Department's AI data centers depend on two essential elements for operational integrity and optimal performance: comprehensive security to protect sensitive data and a reliable energy supply for cooling.
There is also a partnership opportunity by understanding the agency’s footprint and using the workforce’s expertise to establish a hybrid approach to address these concerns, he added.
“By leveraging our current storage and distribution network, we can potentially reduce the need to acquire more infrastructure as well,” said DLA Vice Director Brad Bunn. “Currently, we have storage for current strategic materials needs but may require more storage in the future.”
Bunn explained how DLA could use existing contracts to meet the fencing and fuel requirements for the data centers as well.
DLA Energy’s bulk fuel support and challenges
DLA Energy serves as the Integrated Material Manager for the nation’s bulk fuel supply chain for the Defense Department’s global customers.
“Our goal is to optimize the supply chain, ensuring efficiency, cost-effectiveness and responsiveness to customer needs,” DLA Energy Commander Navy Rear Adm. George Bresnihan said. “We do this through buying, storing and delivering ‘Class III,’ bulk fuel.
Bresnihan emphasized his team’s role in managing the entire lifecycle of bulk fuel, from procurement and storage to distribution and disposal to ensure it’s available where and when it’s needed.
He also explained how reduced cost sharing with the military services and aging fuel storage infrastructure overtime are negatively impacting his supply chain’s sustainment, restoration and modernization efforts.
“As the services look to us for low fuel price points, we have to be very careful with this because it increases risk to the working capital fund overtime,” Simerly said in response, highlighting how the departments biggest spend on the Defense Working Capital Fund is fuel.
Bresnihan also spoke on the Joint Petroleum Enterprise, which is a joint effort to address the nation’s most pressing fuel challenges. It represents a force multiplier that directly supports the department's ability to project power globally while reducing operational risk. Optimizing the bulk fuel supply chain leads to cost savings through reduced waste, better inventory management and streamlined processes.
“This integrated approach ensures that regardless of where our forces operate, they have the fuel needed to accomplish their missions and return home safely,” Bresnihan said.
Emerging chemical updates
DLA Logistics Operations Emerging Chemicals Process Integrator Doug Martin
discussed how DLA is building a new Hazardous Material Information Resource System software that uses DOD-managed artificial intelligence to extract and catalog suppliers’ Safety Data Sheet information with full chemical formulation for all products purchased by the department. The new software will enhance DLA’s support to the department and minimize costs to the government.
“Once full operational capability is reached, DLA will be able to identify across the department what products contain specific chemicals and minerals that are identified as being at risk in the supply chain,” he said. “This will allow the DOD to take decisive action to mitigate these risks.”
Other discussions during the session included aging infrastructure in the DLA footprint and the administration’s proposed plans to close several federal buildings could have a direct impact on DLA employees and operations.
“My biggest job is to be your biggest advocate,” Marks said. “I want to understand your roles and responsibilities, ingest the work and advocate on your behalf.”
Simerly and Marks both agreed to have routine engagements in the future to discuss challenges and identify opportunities for advocacy on behalf of the agency while partnering for critical mission success.