History of DLA Energy
The Defense Logistics Agency is America’s combat logistics support agency responsible for sourcing and providing nearly every consumable item used by our military forces worldwide. DLA Energy is a DLA major subordinate command responsible for providing the Department of Defense and other government agencies with comprehensive energy solutions in the most effective and efficient manner possible.
DLA Energy’s roots date back to World War II. Originally, the organization was an entity of the Department of Interior as the Army-Navy Petroleum Board with the mission of administering critical petroleum requirements during the war. In 1945, the organization was transferred to the War Department and became the Joint Army-Navy Purchasing Agency.
The organization underwent several name changes, but its mission of administering critical petroleum requirements remained essentially the same until 1962. At that time, it became a part of the consolidated military supply organization called the Defense Supply Agency. Today, that agency is known as the Defense Logistics Agency. In 1964, DLA Energy was renamed the Defense Fuel Supply Center and designated as a single entity to purchase and manage DOD’s petroleum products and coal.
In 1973, DLA Energy progressed from a wholesale fuel central procurement activity to a more comprehensive mission as the Integrated Materiel Manager for the DOD petroleum mission. Phase I of IMM added management of the acquisition, storage, distribution and sale of fuel with responsibility ending at the Service installation boundary. In 1991, Phase II expanded the ownership of bulk petroleum products to include most bulk storage installations.
In 1990, DLA Energy’s mission was expanded to include the supply and management of natural gas in addition to basic petroleum and coal products. Natural gas requirements were consolidated and centrally procured with goal of providing direct supply natural gas to customers when determined more economical than using gas from a local distribution company.
In 1998, DLA Energy became the Defense Energy Support Center with a new mission to build an energy program aimed at moving the DOD out of the management of energy infrastructure and into the management of energy products.
The initiative to deregulate electricity in the U.S. added another mission to DLA Energy’s responsibilities. As states deregulated, DLA Energy pursued and awarded contracts for electricity services to DOD and federal civilian agency installations.
With the issuance of Defense Reform Initiative #49 in 1998, which directed the military services to privatize their utility systems, DLA Energy took the lead providing contracting expertise in support of aggressive DRI goals. DLA Energy developed a core competency in utilities privatization and has become the single procurement organization for Army and Air Force utility services contracting.
In 2001, DLA Energy assumed a new mission from the U.S. Air Force to serve as the DOD’s IMM for space and space-related products and services, providing support and business solutions to not only the DOD but also other federal agencies, government contractors and academia. The addition of this mission made DLA Energy a full service provider of all energy and energy-related products.
In 2002, DLA Energy assumed the mission to manage and perform the worldwide energy quality mission, consolidating functions previously performed by the Defense Contract Management Agency.
In 2004, the Secretary of Defense designated DLA as the Executive Agent for bulk petroleum. The authority was delegated to DLA Energy with the responsibility to execute Supply Chain Management for all DOD bulk petroleum, with an emphasis on improving efficiency and minimizing duplication and redundancy within the supply chain.
In 2006, DLA Energy became the DOD IMM for both bulk Aviator’s Breathing Oxygen and liquid nitrogen which were previously managed by DLA Aviation.
In 2009, DLA Energy’s mission continued to expand, incorporating emerging areas of renewable and alternative energy sources. As the nation embraced conservation, had a renewed awareness of environmental impact and sought energy security, DLA Energy’s business units pursued solar power, hydrogen power, synthetic fuels and other alternative fuel and renewable energy sources as new procurement, research and development initiatives materialized.
In 2010, DLA Energy adopted its current name in support of DLA’s “We Are DLA” initiative. DLA Energy supported a single-agency environment, internally and externally, building a greater sense of community and ownership for employees and creating a clearer and more definitive identity for customers and stakeholders.
In 2012, DLA Energy set new standards for disaster relief efforts following Super Storm Sandy with the delivery of more than 9 million gallons of fuel to New York, New Jersey and Connecticut.
In 2014, DLA Energy transitioned from the Energy Convergence program to the DLA Enterprise Business System, which standardized processes, transactions and normalized service measures applying DLA Material Supply Chains evaluations to DLA Energy products and services.
In 2016, DLA Energy awarded its largest energy savings performance contracts to date at Tinker Air Force Base. The $243-million facility modernization project will save at least $20 million annually in energy and operational costs over the 25-year life of the contract.
DLA Energy implemented additional capabilities in strategic locations in the Middle East when the Defense Fuel Support Point Salalah, Oman, opened in 2017. The new facility improves the Naval Central Command operational reach and is the first step in increasing logistics capabilities outside the Arabian Gulf.
In 2017, DLA issued a directive outlining command relationships, responsibilities and reporting of regional commands, primary level field activities, and J/D codes. The Command and Control initiative fundamentally changed the way regional commands and primary-level field activities interface with customers. One commander now acts as the DLA interface for customers in each region (DLA Central and Special Operations Command, DLA Europe & Africa, and DLA Pacific).
Through evolution in mission and name changes, DLA Energy is committed to providing world class support to the warfighter.