Mr. Michael Broderick

1
PACOM Fuels Conference
DESC Supply Chain Management FAS Overview

• Mr. Michael Broderick
• Director Change Management
• Defense Energy Support Center
• 23 Oct 02

2
DESC Supply Chain Management FAS Overview
Overview and update

• Evolution of Fuel Supply Chain Management (SCM)
• Fuels Automated System (FAS) and SCM
• Fuels Automated System Components
• Change Management Role in FAS Deployment
• Where we are today/Applications employed
• DESC Web Information
• Help Desk/Trouble Reporting
• Air Card/Voyager/Bunkers

3
DESC Supply Chain Management FAS Overview
Definitions

• Capitalization completes the DOD Integrated
  Material Management (IMM) transfer of bulk fuel
  retail management from the Military Departments
  to Defense Energy Support Center (DESC)
• Extends DESC ownership of bulk petroleum
  products to the last fuel support point that is
  issuing to more than one Operations and
  Maintenance (OM) customer/account
• End Use Billing DESC will direct bill the OM
  account of the consumer through DFAS Columbus
  vice the services stock fund
• FAS (Fuels Automated System)includes (O)ED/OGF
• A vertically integrated AIS consisting of
  base-level components and enterprise level
  systems providing visibility of bulk fuel assets
  and transactions to Services, Combatant
  Commanders, vendors, and DESC
• FES (FAS Enterprise Server)
• A web-based environment that collects, routes,
  and reports transactions among bases,
  contractors, DESC, DFAS, and other entities

4
Evolution of FuelSupply Chain Management
DESC Capitalization Background

• 1973 DoD Directive mandated DLA as single
  Integrated Material Manager (IMM) for DoD fuel
• Phase I DLA ownership of bulk stocks in
  intermediate terminals
• DESC assigned procurement as well as inventory
  management responsibilities
• Phase IIA 1992/93 DESC capitalized most
  aviation fuels and some ground fuels
• Transferred ownership of fuel inventories from
  Services to DESC
• Phase IIB 2000/03 Completes DESC
  capitalization of remaining fuel
  inventoriesmigrates DESC to retail environment
  for supported customers
• Dissolution of Service working capital funds
• Ongoingshould be completed for all Services
  during FY03
• DESC bills end users directly via DFAS Columbus

5
Evolution of FuelSupply Chain Management
FY05 FAS Full Production
1Q/FY96 FAS Program Started (MS-0)
DFAMS Initialized Early 1980s
4Q/FY01 FAS Program (MS-3)
1 Oct 02 ED Live West Coast
DFAMS-MOD Initiative(s)

6
FAS and SCM
A System to Run the Business

• Increase fuel accountability by supporting fuel
  transactions at all Defense Fuel Support Points
  (DFSPs) and retail point of sale data collection
  sites.
• Integrate new fuel technology systems (automatic
  tank gauges, automatic leak detection and
  reporting systems) into FAS.
• Decrease data processing time through the use of
  modern automation techniques which are compatible
  with the EDI standards.
• Use telecommunications assets that promote
  real-time or near real-time data processing.
• Integrate COTS financial module in concert with
  the Defense Finance and Accounting Service
  (DFAS), the Defense Logistics Agency (DLA), and
  Military Services (MILSVCS).
• Develop an energy information management systems
  migration process for technical modernization of
  platforms and implementation of
  new/revised/efficient business practices.
• Provide a mechanism for specialized customer
  support through customized terminal interfaces
  which allow user-generated database queries on
  accounts.

7
Fuels Automated System
Overall FAS Components
Bid
Evaluation
PowerTrack
Model
Management
(BEM)
Requirements
WEB
Information (MI)
Manager (RM)
Distribution
Plan
Authorization
(
WebDPA
)
Energy
Oracle
Downstream
Government
(ED)
Financial (OGF)
GLOBAL
Paperless
Freight
(Formerly OED)
Ordering
Management (GFM)
Receipt
Transaction
Constellar Hub
Screens
(PORTS)
FAS Enterprise
Server (
PurpleHub
)
Other DESC
Web Applications
Inter Fund
-
Product Quality
Information
Base
Base
DFSP
Base
System
Level
Level
(FCC)
Level
(PQIS)
Air Force
Army
(FES02)
Navy
4
(FCC)
(FCC)
(FCC)
8
Fuels Automated System
FAS Enterprise Server (FES) the Purple Hub

• Web-based application that allows users to
  selectively enter, query, display, and calculate
  fuels accounting information
• Collects all fuel-related transactions
• Provides detailed inventory visibility
• Provides detailed obligation visibility
• Reformats for obligation/interfund billing
  (currently through DFAMS and ED/OGF)
• Provides credit card processingAVCARD for
  non-contract to be contract into-plane
  locations DoD FleetCard transactions for
  off-base ground fuel purchases and to be all
  GSA Voyager transactions for on/off-base ground
  fuel purchases

9
Fuels Automated System
Component interface
DAAS IFB
Billing
DFAMS
ED
Interfund Billing
Transaction Data
Service Legacy / Obligation Systems
Obligations
Transaction Data
Internet
PORTS / Other FES Applications
VOYAGER / AIRCARD / Bunkers
Transaction Data
NIPRNET or Internet
NIPRNET or Internet
Review / Challenge / Query / Download
Vendor or Commercial Entity
ATG
AFSS
ADC
FES02
FCC
Finance / Resource Advisors / Managers
DFSP/Base Level
10
FAS Deployment Change Management Role

• Business Modernization (DESC-DCB)
• Business Process Changes
• Going RetailHow far do we take it into
  battlefield
• FES Deployment
• Information Technology (DESC-DCI)
• DESC Application Solutions
• Design/Manage LANs
• Desktop support
• AIS Security Management
• Strategic Planning (DESC-DCP)
• Change Management Board Issues relative to FAS
• Balanced scorecardprocess improvements
• Human Capital (DESC-DCH)
• FAS Training

11
FAS Deployment Change Management Role

• Business Process Changes Processes
  evolving/changing
• 4140.25M out of date
• DC Central POC for interim Policy Procedural
  guidance
• Going Retaildirect billing to end-user
• Customer interface
• Accuracy of customer data baseEnd-use billing
  challenges
• Service legacy obligation system interface
• End user Commercial procurement
• DoD Fleetcardground fuels
• Air Cardaviation fuel at into- plane contract
  and non-contract locations
• FES Deploymentgetting to one central repository
  for fuels transaction data
• DCChair weekly Military Services/FES Deployment
  meetings
• FES Productionprogram bugs/enhancements Issues
• DCInterface with FAS Quality Assurance ASG
  regarding FAS problem reporting and system
  fixes/enhancements

12
Policy and Procedures
Systems changing faster than policy/procedures
Interim Policy and Procedural Guidance Page
13
DESC Web Information
FAS application and other assistance User
Documentation
14
DESC Web Information
FAS application and other assistance User
Documentation
15
FES DeploymentWhere we are today

• Buyer - Finance World
• FES Billing direct obligationspurchases from
  purple processing sites beginning Feb 01
• On-line visibility challenge functionality for
  FES transactions
• Non-FES Billing no direct Obligationspurchases
  at non-FES reporting sites and Commercial
  Into-Plane Contract locations
• DESC Web Site visibility only for non-FES
  transactions
• SellerDWCF Stock Point
• Air Forcecompletely purple
• US Army75 purple EST Comp 3rd Qtr
  FY03 (Active Duty)
• 
  4th Qtr FY03
  (N-Guard)
  
• US Navy49 purple EST Comp 2nd Qtr
  FY03 (Oilers)
• 
  3rd Qtr FY03 (Fleet)
• 
  1st Qtr FY04
  (Carrier / L-Deck)
  
• DESC DFSPs48 purple EST Comp 2rd Qtr FY03

16
FES Transaction Data
Millions
17
Fuels Automated System
Where we are today
FES deployment Worldwide Processing
Modes Direct FCC 1025
FCC 1026/27 FES02
DFAMS
DFAMS FES
FES
Purple sites
387 42
Non-Purple sites
49 107 Processors
( Non-Purple DFSPs) Purple
DFSPs
Individual Stock Point 22
107 322
16 DESC Region
24
7
DESC Office/PMD/RR
65
19 DESC-FI 3
18
Fuels Automated System
Where we are today
FES deployment PAC only Processing
Modes Direct FCC
1025 FCC 1026/27 FES02

DFAMS DFAMS FES
FES
Purple
sites
55 7
Non-Purple sites 3
Processors (
Non-Purple DFSPs) Purple DFSPs
Individual Stock Point
38
Other Stock
Point/Supply Point 17

DESC
Region 3

DESC Office.

7
19
Fuels Automated System
Prior to 1 Oct 02
System of
Record DFAMS
DAAS IFB
DFAMS
Billing
ED
Interfund Billing
Transaction Data
Service Legacy / Obligation Systems
Obligations
Finance / Resource Advisors / Managers
VOYAGER / AIRCARD / BUNKERS
Purple DFSP/Base
Non-Purple DFSP/Base
20
Fuels Automated System
1 Oct 02
Dual Systems of Record DFAMS ED
DAAS IFB
DFAMS
ED
Billing
Interfund Billing
Transaction Data
Service Legacy / Obligation Systems
Obligations
West Coast Bulk 91 Stock Points Only
VOYAGER / AIRCARD / BUNKERS
Finance / Resource Advisors / Managers
Non-Purple DFSP/Base
Purple DFSP/Base
21
Fuels Automated System
EST FY 05
System of Record ED
DAAS IFB
OGF
ED
Billing
Interfund Billing
Transaction Data
Service Legacy / Obligation Systems
Obligations
VOYAGER / AIRCARD / BUNKERS
Finance / Resource Advisors / Managers
Purple DFSP/Base
22
Fuels Automated System
Primary Intermediate DFSP (DESC) application
FES02

• Developed/designed to solve DESC business
  need/requirement for an easy to use, non-aviation
  oriented FES processing application for
  intermediate/wholesale level DFSPs
• BKAs FES02designed to provide
• Cooperative Validation
• Shipment - Transfer Receipts
• Contract - Contract Receipt
• Physical Inventory - Inventory Adjustments
• One-touch Contract/Transfer Receipts
• Minimized data entry thru pick-lists
• Improved accuracy thru minimized data entry
• Timely/immediate validation

23
Fuels Automated System
Primary Intermediate DFSP (DESC) application
FES02
24
Fuels Automated System
Primary Service base-level application FCC 10XX

• Current purple version of FCC is 1027
• Client application (GOTS) that ties to other DESC
  hardware and systems (ATG, AFSS, etc.)
• Currently deploying FCC 1027 to new sites and
  existing 1026 sites
• Futurenext generation requirements being
  developed
• Solution needs to be compatible with Service IT
  environments
• Solution needs to include other DESC and Service
  information and data needs

?
25
DESC Help Desk
FAS application and other assistance Help
Desk

• Requests for help and/or trouble reporting
  should be directed to the DESC Help Desk
• Commercial [phone]
• DSN 697-6733/34/35/36/37/38 (not yet a rotary
  system)
• Internet http//www.helpdesk.desc.dla.mil/support
  
• E-Mail helpdesk_at_desc.dla.mil
• The DESC Help Desk logs all help/trouble reports
• Please do not by-pass the Help Desk Help Desk
  tool Support Magic is used to track problem
  trends, record and promulgate solutions, and
  develop lessons learned
• FAS Help Structure
• Tier 1 DESC Help Desk in Atlanta (24/7
  operation)
• Tier 2 DESC ASG Triage - routes to appropriate
  SME or Level 3
• Tier 3 Program Developer / Technician

26
FAS Help Desk
Help Desk Link at DESC Web Page
27
FAS Help Desk
Help Desk Link at DESC Web Page
28
Air Card/Voyager

• Commercial Aviation Fuel Purchases
• Into-Plane Non-Contract Locations
• Processed to the FES via file feed from AVCARD
• File feed normally each day--Visible in FES
• Into-Plane Contract Locations
• Processed via AVEDS to DFAMS
• Visible in DFAMS and at DESC Web Site in Excel
  Spreadsheet
• FES Processing / Visibility ETIC for Program
  Action completionJan 03

29
Air Card/Voyager

• Commercial Aviation Fuel Purchases
• Customer database managed by AVCARD
• Fuel Purchases / Transaction Processing
• AVCARD Splits out fuel purchases from other
  services
• FLOW Process AVCARD to FES to DFAMS
  (Non-contract)
• AVCARD to AVEDS to DFAMS (Contract)
• Non-fuel items AVCARD bills customer direct
• AVCARD bills DESC direct for fuel portion of bill
  only
• DESC bills customer via interfund at DESC Std
  Price
• DESC Std Price for Commercial Purchases FY 03
• Contract (IP8, IA1, IAB, IAA) Non-Contract (NAA,
  NAB, NA1) .93 1.66

30
Air Card/Voyager

• Commercial Ground Fuel Purchases
• VOYAGER is fleet support provider
• DoD Fleetcard sponsored by US Bank
• Customer data base
• VOYAGER manages central data base
• Updates and adds to customer data base
• Customer (Service POC) - - to DESC-DCB - - to
  VOYAGER
• Transaction process flow
• Customer presents VOYAGER for fuel and other
  services/goods
• VOYAGER splits out fuel purchases from other
  charges
• VOYAGER bills customer direct for non-fuel items
  and services
• VOYAGER bills DESC for fuel purchasesDESC pays
  VOYAGER
• DESC in-turn bills customer
• VOYAGER fuel purchases processed to FES beginning
  Aug 02
• Standard price for commercial ground fuel
  purchases1.43 per gl

31
Air Card/Voyager

• GSA Fleetcard Ground Fuel Purchases at DoD
  installations
• GSA Fleetcard (wet-lease) vehicle fuel purchases
  at DoD installations
• AFSS electronic data capture (card reader) for
  Fleetcard not yet functional
• Expect FES functionality to be turned on 2nd
  Quarter FY03
• AFSS must have Advanced/Enhanced Syntec
  configuration for card reader
• AFSS card reader has been successfully tested
• Until card reader activation, may issue VIL
  Key
• Transaction process flow once AFSS card reader
  is activated
• Customer swipes Fleetcard at AFSStransaction
  customer billing data electronically captured
• AFSS transactions imported to FCCin-turn FCC
  processes to FES
• FES segregates GSA Fleetcard transactions from
  DoD Fleetcard
• FES processes transaction file to GSA VOYAGER
• GSA VOYAGER translates transaction data into GSA
  billing office attributes, then returns file to
  FES for billing
• GSA /FAS memorandum of understanding awaiting GSA
  approval

32
BUNKERS Program

• MAGSTRIP contract ended 30 Sep 02
• Currently using manual order/invoicing process
  for Bunkers
• Contract Locations and Open Market purchases
• Process
• DD Form 1155 used to establish order and
  document receipt
• Vendor submits paper invoice along with signed
  delivery order receiving report to DFAS-CO
• DFAS-CO faxes documentation to DESC-FI for input
  to DFAMS
• DESC-FI inputs order and receipt to DFAMS
• DFAS-CO pays vendor using DESC fund cite (at
  contract or open market price)
• DESC bills customer at standard price (1.25 gl)

33
BUNKERS Program

• Future Upgrade(US Bank/VOYAGER) Fuel Quest Web
  Application ETIC Mar 03
• Contract and Open Market Purchases
• Orders placed by Vessel Supply Officer/Husbanding
  Agent/FISC on line via Fuel Quest Application
• Contract Locations Order directed to
  Contracted Vendor
• Open Market Purchases RFQ issued to
  pre-identified vendors, vendor selected based on
  pricing quotes, quality history, etc.
• Selected vendor notified--Purchase order
  confirmed
• Delivery is made, confirmed/validated by both
  vendor and US Government Representative,
• Order is closed which generates electronic
  invoice to US Bank/VOYAGER
• US Bank/VOYAGER uploads invoice and pays vendor
• US Bank/VOYAGER provides weekly E-file to the
  FES
• DESC processes transactions for payment of US
  Bank/VOYAGER and customer billing via DFAS-CO

34
In conclusion
Questions / Discussion