DLA Fiscal 2024 Annual Report

DLA’s Digital Strategy outlines strategic focus areas designed to propel DLA toward continuous transformation, modernization, and digital adoption. This strategy not only enhances agency mission performance and capabilities, but also enables the DLA Strategic Plan, DoD strategies, and a digital advantage for DLA.

DLA established the Artificial Intelligence (AI) Center of Excellence (CoE) on June 4, 2024, to lead and advance the strategic implementation of AI initiatives within DLA. The AI CoE will foster innovation, collaboration, and responsible AI practices to drive transformation within the Agency.

DLA’s Warehouse Management System (WMS) was successfully deployed across all 63 DLA Disposition Centers, all nine Recruit Training Centers, two of seven Vendor Shipment Sites, and 22 of 34 DLA Distribution Centers. WMS is a critical component of DLA’s Enterprise Solution to perform logistics, warehousing, and transportation business processes, and provides global services and worldwide support.

DLA’s Warstopper Program is a critical supply chain risk management tool, designed to anticipate and adapt to shifts within the Defense Industrial Base, ensuring resilience and readiness. The program identifies threats using data-driven assessments, recommends risk response strategies, and invests in readiness. By the end of FY24, Warstopper Program identified over 45 risks and completed 51 studies.

• Awarded 688 Army depot level repairable contracts totaling $2B.
• Subsistence (CL I): delivered 186M meals ($1.2B) to 1,179 customers.
• Recruit Training Center: provided 5.1M uniform items (99.3% Fill Rate) of requirements to all four Army Basic Combat Training sites.
• Bulk Fuel (CL III): 236.7M net gallons of fuel ($0.9B).
• Construction & Barrier Materiel (CL IV): provided 300.8K line items ($2.4B) to 10,645 customers.
• Medical Supplies (CL VIII): provided 24,724 items ($298.4M) to 3,207 customers.
• Pharmaceuticals (CL VIII): provided 7,907 items ($51.7M) to 870 customers.
• Distribution & Warehousing: managed $37.5B of Army inventory supporting 276 Army Supply Activities.
• Disposition & Reutilization: inducted 1.1M line items and filled 5,940 reutilization requisitions ($223M) at 42 installations.

• Working with the Army, DLA prioritized Class II, IV, VIII and IX FMS support to Ukraine. On June 13, 2024, the U.S. entered into a 10-year bilateral security agreement to maintain a credible defense for Ukraine, accelerate its Euro-Atlantic integration, and provide U.S. consultation on future Russian escalations.
• DLA provided $14 million in Ukraine Security Assistance Initiative FMS support and collaborated with Army Materiel Command (AMC) to provide ~$43.5 million in Cl IX parts.
• DLA Land and Maritime collaborated with the Security Assistance Group-Ukraine and AMC to support land systems for excess defense articles divested to Ukraine by providing high priority parts for Bradleys and M915s.

• DLA Land and Maritime leaned forward on $37.5 million in parts for Patriot missile systems, the Army’s most advanced air defense system. These parts support Patriot reset and recapitalization programs at Letterkenny Army Depot, PA, and insulate the line from increased lead-times and obsolescence associated with this aging weapons system.
• Collaborated with AMC, HQDA G4, and FORSCOM to improve independent demand planning between the Army and DLA. Ongoing efforts include sharing demand data to identify trends and prioritize investments on Army readiness drivers.
• Partnered with the XVIII Airborne Corps G4 to reconcile previous years’ orders while addressing high-priority backorders through lateral support and expedited procurement.

• Funded over $96.5 million in Sustainment, Restoration, and Modernization projects and another $88.8 million in Recurring Maintenance & Minor Repair at Army installations.
• $885.3 million total FY24 Petroleum and Aerospace sales.
• Executed on Presidential Executive Order 14057 “Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability,” which sets a Federal government goal of sourcing 100% carbon pollution free electricity by 2030. Laid the groundwork for DoD transition to carbon pollution free energy by signing a $248 million 15-year contract to use renewable sources to power Fort Liberty, NC, and other installations in the southeastern U.S.
• Effectively planned and executed the Quartermaster Liquid Logistics Exercise, delivering ~2.5 million gallons of jet fuel to 17 DoD installations across the nation

• Supported Army’s Prepositioned Stock-2 with 28 thousand items of medical materiel valued at $2.5 million in FY24.
• Collaborated with counterparts at Army Medical Logistics Command to negotiate revisions and restructure the Army Medical Materiel Agreement. The agreement, when restructured, will be signed by the DLA Director, CECOM Commander (for AMC), and ARCENT Commander.
• The Construction & Equipment Supply Chain awarded a five-year contract for the Army Combat Fitness Test kit to alleviate backorders with a maximum dollar value of $48M.
• The Army operates 215 Dining Facilities (DFACs) around the globe. For OCONUS DFACs, DLA Subsistence’s Prime Vendor Program (SPV) enables the Army to control the Class I supply chain, maintain the quality of the food items available, and surge to scale. A consolidated SPV program allows the Army to gain economies of scale in pricing and savings

• Rapid Removal of Excess (R2E) Pilot Program: DLA Disposition Services helped XVIII Airborne Corps test a property-thinning program by accepting ~15K items. The pilot grew tenfold and expanded to other units.
  • ~80% of identified excess equipment is being transferred to DLA Disposition Services
  • ~165K pieces of equipment were approved for disposition to DLA, with ~132K pieces directed to Disposition Services and ~33K pieces to DLA Distribution.

• Provided 89% of Marine Corps repair parts in support of two USMC Depots (Albany, GA, and Barstow, CA).
• Subsistence (CL I): delivered 32M meals ($205M) to 230 customers.
• Recruit Training Center: provided 2.9M uniform items (97.8% Fill Rate) of requirements to two USMC Depots (Parris Island, SC, and San Diego, CA).
• Bulk Fuel (CL III): 11.3M net gallons of fuel ($40.6M).
• Construction & Barrier Materiel (CL IV): provided 54,178 ($777.5M) to 476 customers.
• Medical Supplies (CL VIII): provided 3,701 items ($64.8M) to 373 customers.
• Pharmaceuticals (CL VIII): provided 1,485 items ($7.5M) to 155 customers.
• Distribution & Warehousing: managed $596.8M of USMC inventory supporting five Supply Management Units.
• Disposition & Reutilization: inducted 89Kline items and filled 2,240 reutilization requisitions ($23.1M) at 42 installations

• Worked with Marine Depot Maintenance Command (MDMC) to reach full operational capability for the industrial support activity (ISA) set for March 2025. The ISA achieved success in optimizing readiness support cost reduction, maintaining an average materiel availability of 94.5% with an average order volume of 21,936 items per month. Close collaboration to prioritize backorders, forward stock the right material, and resolve engineering support requests.
• Supported USMC modernization efforts as the amphibious combat vehicle (ACV) replaces the aging amphibious assault vehicle as the USMC’s next-generation vehicle moving vehicle moving Marines from ship to shore.

• Funded over $50.8M in Sustainment, Restoration, and Modernization projects and another $18.6M in Recurring Maintenance & Minor Repair at USMC installations.
• $41.5M total FY24 Petroleum and Aerospace sales.
• Signed a $248M 15-year contract to use renewable energy sources to power USMC Air Station Cherry Point and Camp Lejune, NC, and other installations in the southeastern U.S.
• DLA Energy funded $3.2M to support the cleaning, inspecting and repair project on bulk fuels storage tanks at USMC Air Station Futenma, Japan.

• USMC Customer Operations provided extensive wholesale supply operations training to over 350 Marines and Sailors at 15 sites and provided the USMC Wholesale Resident Course. As a result, Marine Aviation Non-Mission Capable Supply (NMCS) backorders were reduced by 24% (against a 10% goal) and reduced NMCS Customer Wait Time by 5 days.
• V-22 Weapon System Program Manager (WSPM) collaboration with Strategic Acquisition and OEMs to facilitate payment of a consideration fee of $187.5K to expedite material in
  support of V-22 Prop Rotor Gear Box removal and replacements across the Air Force, Navy, and USMC. DLA was able to fill 35 lines for the quantity of 997 unfilled orders directly
  contributing to a daily average of 143 aircraft available.

• Completed a 100% Annual Inventory of USMC’s 5K lines of material stored at DLA Distribution sites. DLA Distribution registered a 98.8% accuracy rate for USMC materials in FY24.
• In FY24, all five USMC Distribution sites transitioned to Warehouse Management System (WMS).
• Created service Qlik applications to share WMS-specific performance metrics for collocated Distribution Centers, and published tools for the USMC WMS implementation.

• The design for a new DLA Disposition Services Pendleton, CA, building is 35% complete. This facility is critical, as ongoing operations in Area 22, adjacent to Marine Corps Air Station Camp Pendleton, NC, are impacted by planned runway expansions. The new facility will support DLA Disposition Services’ mission to dispose of excess DoD property.

• Awarded 30 depot level repairable contracts totaling $22M.
• Subsistence (CL I): delivered 116M meals ($650M) to 614 customers.
• Recruit Training Center: provided 2.4M uniform items (84.8% Fill Rate) of requirements for Recruit Training Command Great Lakes.
• Bulk Fuel (CL III): 1.1Bnet gallons of fuel ($4.1B).
• Construction & Barrier Materiel (CL IV): provided 197.5K line items ($2.5B to 1,523 customers).
• Medical Supplies (CL VIII): provided 21,059 items ($94.2M) to 1,219 customers.
• Pharmaceuticals (CL VIII): provided 6,958 items ($31.3M) to 808 customers.
• Distribution & Warehousing: managed $41.5B of Navy inventory supporting eight Supply Systems Command Fleet Logistics Centers.
• Disposition & Reutilization: inducted 285Kline items and filled 10,977 reutilization requisitions ($121M) at 45 installations.

• Committed to USN priorities via support to the public shipyards with supply fulfillment across all Chief of Naval Operations maintenance availabilities at 84%, pre-availability stock onhand at 94%, and a 96% churn fill rate for over 176K orders valued at $389M.
• Provided customer support to Navy’s nuclear reactor program, consistently exceeding the Agency’s goal of 95% Materiel Availability (avg. 96.4%).
• Standing up operations in Guam to provide on-site retail supply, storage and distribution support to intermediate-level submarine maintenance. Shop Store material has been placed
  into stock and is ready for issue at DLA Distribution Guam in support of the establishment of Pearl Harbor Naval Shipyard Detachment Guam operations.

• Funded over $522.5M in Sustainment, Restoration, and Modernization projects and another $73.8M in Recurring Maintenance & Minor Repair at Navy installations.
• $4.2B total FY24 Petroleum and Aerospace sales.
• Coordinated with USTRANSCOM to sustain naval operations in the Middle East. Due to the increased Houthi threat in the Gulf of Aden and Red Sea, carrier strike groups have been
  refueling through CONSOL-capable vessels that provide resupply at sea, which DLA helped orchestrate three times.
• DLA Energy executed a Services Legacy Contract Transfer for NAS Key West, FL (Wastewater, ~$18M) and a Service Contract Award for NSF Indian Head, MD (Electric, $117M).

• With collaborative partners, DLA supported improvements in F/A-18 Windscreen, Canopy, and Auxiliary Power Unit repairs at FRC-Southwest. Improved demand planning, optimized levels, faster awards, and delivery timelines helped the Super Hornet Fleet achieve mission-capable aircraft despite a 49% increase in backorders since 2022.
• DLA’s Navy Customer Operations determined 21% of NIINs caused 43% of backorders; 15 components were evaluated, resulting in optimized planning levels to support the Naval Aviation Enterprise’s “Get Real, Get Better” initiative.
• DLA’s Navy Customer Operations team reviewed 104 P-8 unique items and optimized planning levels ($1.8M), improving long-term support and readiness for these items.

• DLA Distribution worked closely with NAVSUP to implement a Material Processing Center (MPC) capability in Okinawa, Japan, beginning on Jan. 9, 2024. The new MPC at Okinawa processed over 550 lines in direct support of Naval Forces in the region within the first 30 days of implementation.
• In an effort to mitigate rising contract costs, DLA Distribution reduced the administrative cost percentage for Navy Fleet Readiness Center HAZMAT Direct Fund Cite support contracts from 10% to 7.02% for FY25. This adjustment is expected to yield a significant cost savings of $1.2M for the Navy in FY25.
• Inventoried 99.96% of Navy’s 421K lines of material stored at DLA Distribution sites. DLA Distribution registered a 99.3% accuracy rate for Navy material during FY24.
• In FY24, 16 Navy Distribution sites transitioned to the Warehouse Management System (WMS); three sites remain for FY25.

• Working with the Navy’s Inactive Ships Office, DLA successfully recycled 10 ships, allowing the Navy to avoid millions of dollars in maintenance and disposal costs. In the past 18 months, a DLA Disposition Services contractor dismantled five naval vessels at its facility in Brownsville, TX, generating $360K in revenue

• Awarded 12K Air Force depot level repairable contracts totaling $2B.
• Subsistence (CL I): delivered 55M meals ($311M) to 355 customers.
• Recruit Training Center: provided 2.3M uniform items (99.4% Fill Rate) of requirements for AF Basic Military Training, Lackland AFB, TX.
• Bulk Fuel (CL III): 1.5B net gallons of fuel ($5.6B)
• Construction and Barrier Materiel (CL IV): provided 127,929 line items ($826.9M) to 688 customers.
• Medical Supplies (CL VIII): provided 64,931 items ($361.4M) to 344 customers.
• Pharmaceuticals (CL VIII): provided 21,109 items ($944.1M) to 214 customers.
• Distribution & Warehousing: managed 34.7B of Air Force inventory supporting 207 Air Force Logistics Readiness Squadrons.
• Disposition & Reutilization: inducted 376K line items and filled 8,854 reutilization requisitions ($567M) at 45 installations.

• Provided essential support to Israel Defense Forces critical effort “Swords of Iron,” fulfilling 453 orders directly supporting Israel’s F-16 Program.
• Launched the Aircraft on Ground cell working group in support of the KC-46. Since October 2024, 837 mission-capable parts (MICAPs) orders (USAF and DLA) were fulfilled, with an average of 482 MICAPs processed daily. This initiative fostered timely fulfillment of MICAPs, accelerated repairs, and minimized aircraft downtime to drive higher fleet readiness.
• Conducted analysis on C-5 Galaxy platform’s 58K-item weapon system designator code portfolio, identifying 1,091 high-risk items, 682 selected for investment, and a $10M Business Case Analysis targeting 95% materiel availability over a two-year initial investment and three-years of sustainment.
• DLA’s Air Force Customer Facing team researched and closed 5,628 customer requests for support and status, a 14% improvement over the previous year.

• Funded over $484.5M in Sustainment, Restoration, and Modernization projects and another $112.2M in Recurring Maintenance & Minor Repair at USAF installations.
• $5.8B total FY24 Petroleum and Aerospace sales.
• Signed a $248M 15-year contract to use renewable energy sources to power Seymour Johnson AFB, NC, and Shaw AFB, SC, and other installations in the southeastern U.S.

• Provided 750 yards of Hexcel CE-9000 fabric for B-1 bombers, avoiding a work stoppage at Tinker AFB, OK.
• Signed a $29M four-year contract for anti-gravity suits. Purchased from a small business, these suits protect pilots during gravity-induced maneuvers.
• Awarded a long-term contract for AM2 landing mats, with a maximum contract value of $148M. AM2 landing mats are in high demand and used for expedient airfield construction. These aluminum landing mats benefit all Services..

• Inventoried 99.9% of Air Force’s 96K lines of material at DLA Distribution sites. DLA Distribution registered a 97.6% accuracy rate for Air Force material during FY24.
• DLA Distribution Mapping Richmond, VA, shipped over 381K maps and chart products to all Services.
• In FY24, nine Air Force Distribution sites transitioned to the Warehouse Management System; four sites remain for FY25.

• In July 2024, Law Enforcement Support Office facilitated the transfer of three King Air 350 cargo transport aircraft ($51M value) from USAF Special Operations Command to the Department of Justice and the U.S. Marshals Service’s Air Surveillance Unit.