DLA Energy, Air Force complete jet fuel conversion, initiative will save millions in costs
FORT BELVOIR, Va., Nov. 18, 2014 /PRNewswire-USNewswire/ -- Defense Logistics Agency Energy, in partnership with the Air Force Petroleum Agency, completed an initiative to convert all Air Force bases from a military specification jet fuel, or JP8, to a commercial standard jet fuel, known as Jet A with additives, which will save the Air Force an estimated $25.5 million in annual fuel costs.
The conversion from JP8 to Jet A with additives, which began with demonstrations at four Air Force bases in November 2009, was completed Oct. 29 at Wright Patterson Air Force Base, Ohio, ahead of the scheduled 2017 date.
"One of the keys to making the conversion a success was marketing our efforts to industry to drum up as much interest as possible in supplying commercial Jet A," said Kevin Ahern, DLA Energy Bulk Petroleum Products director. "We knew that we had a much wider pool of suppliers in the commercial jet [fuel] market than we had in the military specification fuel market."
Identifying those suppliers and guiding them through the government procurement process was critical to the success of the initiative, he added.
The fuel conversion provides energy security and creates operational flexibility for the Department of Defense, as well as other things.
"We also were able to establish Basic Ordering Agreements for commercial jet fuel both domestically and overseas," Ahern said. "BOAs streamline the procurement process and allow us to quickly purchase additional commercial Jet A requirements that are not covered under long term contracts."
This conversion is good news for the customers and industry, Ahern said.
"Refining JP8 and moving it through the supply chain requires segregated storage, which is a contributing factor to why some suppliers opt out of getting into the military specification fuel market," he said. "Since the conversion to Jet A with additives, we have seen an increase in competition, which should continue to drive down prices."
Using commercial infrastructure combined with the potential inventory savings from shortened procurement lead times should mean continued positive results for both DoD and industry, Ahern added.
Air Force Col. Carmen Goyette, commander of the Air Force Petroleum Agency, which is co-located with DLA Energy at Fort Belvoir, Virginia, echoed Ahern's remarks.
"The major benefit of switching to a commercial grade of jet fuel is gaining access to a larger pool of suppliers," she said. "The production of military specification fuel only amounted to 7 percent of the 23.3 billion gallons of fuel produced in the U.S annually, which severely limits competition."
Competitive sourcing coupled with the removal of segregation and transportation restrictions will not only secure a better price for jet fuel, but it goes a long way toward ensuring the service's requirements are met, she added.
Goyette said one of the reasons for the success of the conversion was having a single point of contact at DLA Energy to work with and resolve issues.
"DLA Energy's fuel professionals are unique in that they not only have visibility of the entire supply chain from the refinery to the customer, but they also see everything behind the scenes," she said. "DLA Energy leaders had the vision to assign a program manager with oversight of the myriad moving pieces that needed to align for this program to be a success."
DLA Energy personnel manage all the processes from initial acquisition to the final sale to service customers – including the transportation and quality assurance pieces.
Goyette attributed the accelerated completion date of the conversion to the professionalism and communication from all parties.
"Dealing positively with the necessary change management also ensured success," she added.
DLA Energy led working groups to coordinate this complex, comprehensive effort, and lots of open dialogue and hard work went into making this a successful venture, she said. Senior leaders supported the working groups, providing vision and making the tough decisions required to keep the program moving forward.
"Overall, the conversion acceleration was just a byproduct of the amazing group of logistics professionals' work ethic and cohesiveness," she said.
As a Department of Defense combat support agency, DLA provides the Army, Navy, Air Force, Marine Corps, other federal agencies, and joint and allied forces with a variety of logistics, acquisition and technical services. The agency sources and provides nearly 100 percent of the consumable items America's military forces need to operate, from food, fuel and energy, to uniforms, medical supplies, and construction and barrier equipment. DLA also supplies more than 85 percent of the military's spare parts.
Headquartered at Fort Belvoir, Va., DLA has about 25,000 employees worldwide and supports more than 2,440 weapon systems. For more information about DLA, go to www.dla.mil, www.facebook.com/dla.mil or http://twitter.com/dlamil.
Editor's Note: Article written by Susan Lowe, DLA Energy Public Affairs Office
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SOURCE Defense Logistics Agency
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