DLA divides its repair part mission by weapon systems. Its aviation supply chain handles aircraft. Most of these items are procured by DLA Aviation. The command’s 4,000 employees manage 1.8 million
parts for 2,341 fixed and rotary wing systems. In FY 2023, its 12,678 customers submitted 3.7 million orders worth $5.5 billion. The command provided longerons for F-15 Strike Eagles, replaced O-rings for B-52 Stratofortress ejection seat harness cables, and sourced rivet pins for KC-135 Stratotankers and E-3 Sentries. It also increased communication with the Air Force Logistics Management Center and improved the process for identifying critical safety items. Finally, the command helped solve problems with propellers for C-130H Hercules and O-rings for CH-47 Chinooks.
DLA combines its land and maritime supply chains under one major subordinate command. DLA Land and Maritime’s 2,700 employees manage 2.5 million parts for 1,300 land and 569 maritime systems. In FY 2023, its 21,000 customers submitted 9 million orders worth $4.4 billion. The command led multiple efforts in FY 2023 to include procuring repair parts for weapon systems provided for Ukraine through the U.S. Army Security Assistance Command. Another major effort was supporting the new Columbia class submarine. Columbia submarines will constitute the underwater leg of the Nation’s nuclear triad, an important acquisition project for the DoD.
DLA oversees four supply chains similar in their service member focus but different in their vendor characteristics. The clothing and textile industrial base consists of approximately 300 small to mid-sized companies, strongly dependent on DLA for their business. The supply chain sold products worth $1.7 billion in FY 2023, serving both established customers and new ones such as the U.S. Space Force and Papua New Guinea Defense Force, looking for new uniforms in honor of the country’s 50th Independence Day celebration.
The industrial base for DLA Troop Support’s subsistence supply chain could not be more different. The supply chain has been using prime vendors domestically for three decades and in combat for a quarter century. Valued at $2.9 billion, the command signed new agreements for the east coast of Africa and Southwest Pacific in FY 2023. Subsistence has also been developing a shelf-stable ration for the Federal Emergency Management Agency. Meant to support victims of natural disasters, these meals cost less than humanitarian daily rations and require less storage space.
DLA Troop Support’s construction and equipment supply chain supports a wide range of commodities, including force protection and barrier material; construction material; and fire, marine, special operations, and heavy equipment. With a strong industrial capacity and a vast network of small businesses, it generated sales of $6.7 billion in FY 2023. The supply chain was also integral in fielding a new fire-retardant fluorine-free foam that does not contain per- and poly-fluoroalkyl substances, present in the legacy aqueous film forming foam.
DLA Troop Support’s medical supply chain, also backed by a healthy industrial base, uses e-commerce to provide next-day deliveries at industry-low prices. Although the U.S. commercial medical material industry is mostly comprised of large companies, the DLA supply chain finds innovative methods to attract and maintain a substantial small-business vendor base. The supply chain is working with other federal organizations to ensure its drugs and key ingredients are obtained from reputable, responsive, and reliable sources at reasonable prices. Along with sales of medical surgical supplies and medical equipment, pharmaceutical sales totaled $9 billion in FY 2023.
Combining customer-facing and vendor-facing staff, DLA Troop Support employs 2,127 civilians and 47 service members. These professionals managed 2.9 million items in FY 2023, processing 27 million orders for 77,000 global customers. They did so with 3,600 suppliers.
DLA’s energy supply chain managed change in FY 2023. In February, the U.S. Transportation Command reached initial operating capability as the DoD’s single manager for global bulk fuel and distribution, as directed by Congress. DoD is working to reshape DLA’s role under a new governance structure, but DLA’s core competency in Class III bulk petroleum acquisition and material management remains. DLA stood up a support division at Scott Air Force Base, Illinois, to partner with TRANSCOM and ensure seamless support to the warfighter.
DLA Energy selected military service customers and its whole-of-government partners for two new alternative fuel pilots. The command also is working with the Office of the Deputy Assistant Secretary of Defense for Energy, Installations, and Environment and the U.S. Air Force to install a Nuclear Regulatory Commission-approved micro-reactor on Eielson Air Force Base in Alaska. The Air Force expects it to be operational by the end of 2027.
Also environmentally-related were efforts to help the Joint Task Force formed by Defense Secretary Lloyd J. Austin to defuel tanks at Red Hill in Hawaii. Working with the Navy, local officials, regulators, and Congress, DLA Energy conducted sludge removal and other preparatory measures. In July, the INDOPACOM commander directed it to contract for ten tankers to relocate fuel to locations identified in the final environmental assessment. Gravity defueling began Oct. 16, 2023 and was complete by the end of 2023.
DLA Energy addressed another challenge in FY 2023 by supporting Ukraine with bulk petroleum and contracting. The command continues to evaluate fuel storage capabilities in Poland and is considering capacity upgrades for Drawsko Pomorskie Training Area and a fuel terminal for Powidz Airbase.
Key to successful end-to-end supply chain management is storage and distribution. DLA Distribution, with its global workforce of over 8,600 government civilians, military, reservists, and contractors, manages $136 billion in inventory across more than 50 locations. In FY 2023, the organization shipped 6.7 million orders weighing 2.2 billion pounds to customers in 94 countries. Ensuring accountability within its care, DLA Distribution performed inventory with an accuracy rate of 98.8% for individual items and 95% by National Item Identification Number.
Supporting DLA’s whole-of-government partners, DLA Distribution shipped 25,000 line items in support of the U.S. Forest Service’s wildfire mission and delivered 3.4 million seasonal influenza vaccines to service members, their dependents, and veterans. Additional whole-of-government missions included storing deployable medical assistance team items for the Department of Health and Human Services’ Assistant Secretary for Preparedness and Response, holding COVID-19 test kits and personal protective equipment for the Department of Veterans Affairs, and distributing items for the Maritime Administration’s national security multi-purpose vessel program.
DLA continued to transform and modernize its operations. In FY 2023, the organization successfully integrated the Warehouse Management System at 10 distribution centers and one recruitment training center. WMS technology allows for greater visibility and control of assets, real-time logic for inventory tracking, cross-docking, and order fulfillment. WMS deployment will continue through FY 2025.
DLA Distribution closed out FY 2023 with over $1.2 million in obligations and $1.7 million in revenue. Expenses and Net Operating Result were below projections and will positively impact future year rates. DLA Distribution exceeded savings targets of $154 million compared to the baseline for FY 2023.
DLA Disposition Services provided outstanding stewardship of government property in FY 2023. Receiving material originally valued at $32.45 billion, it processed 87,928 requisitions, resulting in 3.3 million usable items worth $1.4 billion. These items were reused by military services, transferred to federal agencies, or donated to state governments, local governments, and non-profit organizations. The command also generated $85 million through public sales, offsetting much of the service-level billing incurred by military services.
DLA Disposition Services had many highlights in FY 2023. One was Ukraine support. The command sourced 283 requisitions, providing 326,014 items worth $32.5 million for troops in Eastern Europe. Items included High Mobility Multipurpose Wheeled Vehicle ambulances, palletized loading systems, floating bridge sections, balaclavas, medical supplies, clothing, individual equipment, and vehicle components.
DLA Disposition Services also had hazardous waste removal wins in FY 2023. Responding to a customer need, DLA Disposition Services awarded four regional incineration contracts to firms in the United States, ensuring DoD incinerable wastes received priority for destruction during a time of significant industry backlog. Additionally, the command successfully obtained export, transit, and import approvals for moving hazardous waste from Al Asad Air Base, Iraq, to Germany. Its contractor responsibly removed 131,000 kilograms of hazardous waste in September 2023.
DLA Disposition Services also helped its customers with disposal missions. This included contracting for the towing, dismantling, and ultimate recycling of safe-to-sell scrap from five retired Navy vessels. The command also processed 5,274 F-35 invoices at ten of its domestic and overseas locations as the designated demilitarization and disposal product support provider for the F-35 Lightning II.
In the agency’s largest organizational change in FY 2023, DLA Disposition Services absorbed DLA Document Services from DLA Information Operations. DLA Disposition Services has a similar global footprint and a similar customer-facing mission. This move will allow Document Services to continue to provide valuable services in a more efficient manner.