FORT BELVOIR, Va. –
Partnership with industry is crucial to overcoming the challenges of contested logistics, the Defense Logistics Agency director emphasized during a Demand Forecast and Industry Association Leadership Meeting at the McNamara Headquarters Complex Nov. 17.
Army Lt. Gen. Mark Simerly stressed the importance of open communication, saying that understanding industry challenges and DLA’s responsibilities and roles is crucial for an effective partnership.
Demand Forecast
Contract obligations grew steadily in fiscal 2025, which are expected to continue in fiscal 2026, said Matthew Beebe, DLA Acquisition director. Since fiscal 2022, there has been 15% overall growth, primarily driven by DLA Weapons Support and DLA Troop Support. He attributed a slight decrease in DLA Energy support to price fluctuations and some volume reduction.
DLA had more than 8,500 industrial base suppliers in fiscal 2025, marking the first increase since fiscal 2016, he said. The agency averaged 11,000 awards per day, totaling 3.9 million contract awards for the year.
Tim Morefield, DLA Logistics Policy and Programs Executive Directorate planning process owner, said DLA has seen fluctuating demand since fiscal 2022 due to impacts from COVID-19, Working Capital Fund challenges, support to Ukraine and Israel, and humanitarian support for Hurricanes Ida, Ian, Helene and Milton.
Compared to fiscal 2025, the fiscal 2026 demand is projected to be 13% higher at almost $879 million for DLA Weapons Support, 11% lower at around $2.7 billion for DLA Troop Support, and 4% higher at about 129 million gallons for DLA Energy.
Hamida Ahmadi, DLA Logistics Operations procurement analyst, projected that service contracts in fiscal 2026 will total $5 billion. The largest categories of spending are facility services, transportation and logistics services and information technology.
Strategic Transformation
DLA will be undergoing acquisition reform in alignment with the Pentagon’s new acquisition transformation strategy, said DLA vice director Bradley Bunn, which emphasizes commercial solutions and a shift from a culture of compliance to one of speed and execution. He highlighted the three priority outcomes from the Nov. 7 memo: field technology and modernize systems at a rate that outpaces our adversaries; increase production capacity and deliver wartime surge capacity for key capabilities, systems, weapons and munitions to the warfighter and allies and partners; and put the entire acquisition system and the industrial base on a wartime footing with the urgency and mandate to accept more risk.
“The focus is on major defense acquisition programs: how we procure and sustain weapon systems and platforms,” Bunn said. “Some key themes that we're seeing are structural changes around how the Department, the military services and other components acquire those platforms. A focus on speed and a sense of urgency around velocity to bring capability to bear.”
DLA is also investing in digitizing supply chains, said Navy Rear Adm. George Bresnihan, DLA Energy commander. This involves implementing advanced data analytics to support scenario analysis, demand and supply forecasting, health visualization and risk mitigation.
“We are laser-focused on supply chain resiliency and doing that through digitizing all nine segments of our supply chains across the board,” said Army Brig. Gen. Sean Kelly, DLA Troop Support commander.
Digitization is probably DLA’s biggest area of partnership moving forward, he added.
Part of that effort is to improve supply chain visibility, both internally and with its industry partners, to identify potential bottlenecks and optimize performance.
Cybersecurity Maturity Model Certification
The new Cybersecurity Maturity Model Certification increases the cybersecurity posture of the defense industrial base and better protects sensitive unclassified information. All defense contractors and subcontractors will be required to demonstrate compliance with applicable security requirements — through self-assessment or independent assessment — prior to contract award, excluding commercial-off-the-shelf procurements.
Brooke Wunderly, DLA Acquisition procurement policy analyst, explained CMMC’s phased implementation, which began on Nov. 10. She encouraged all industry partners to review which levels they desire to compete for and start the process to obtain the necessary certification early.
Small Businesses
In fiscal 2025, small businesses made up 80% of DLA suppliers, said Daniele Kurze, DLA Small Business director. This accounted for $22.6 billion in spending and with a 20% increase in new entrances across the board for DLA, mainly in Class IX, subsistence and energy.
Kurze introduced the new Supplier Pathway Program designed to help small businesses identify potential demand and navigate the contracting process. The program has a search and product tool that matches a business’ nomenclature or product or service with what DLA purchases, brings them into that specific supply chain and provides information from a demand perspective from the previous year.
She also encouraged small businesses to visit the DLA Small Business webpage for topical training guides.
Collaboration
“DLA is actively transforming its approach to warfighter support by strengthening the partnerships that we have, assessing industrial capability and integrating industry insights into real-world scenarios, all to ensure resilient and responsive supply chains,” said Sharon Croll, program manager for DLA Acquisition Industrial Capability and Warstopper Programs.
Bunn encouraged all industry partners to maintain an open line of communication and address challenges in real time. Other key areas for collaboration include data sharing, participation in war games and exercises, and providing feedback on DLA’s processes and procedures, which Simerly emphasized.
“We can't do our mission without you,” Simerly said. “Everything that we deliver begins with you. So we are fascinated by anything that you can share with us that we can do together to improve support.”
Slides from the event are available on the DLA Demand Forecast for Industry website.