Management of Storage and Distribution of DOD Bulk Fuels Can Be Improved

LCD-79-218: Published: Jun 14, 1979. Publicly Released: Jun 14, 1979.

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A study was made of the storage and distribution of bulk petroleum products by the Defense Logistics Agency. The Defense Fuel Supply Center has a responsibility to procure and distribute fuel used by the armed forces and certain other federal activities.

There are four areas in which the Defense Logistics Agency (DLA) can improve its management of bulk petroleum products. The use of inaccurate or inappropriate transportation cost data in the computer model used by the Defense Fuel Supply Center to evaluate bids from suppliers has in some instances distorted the results. The overall cost of petroleum products could be reduced if maximum use were made of existing pipelines for distribution. Inventories at some fuel storage points have been maintained at higher levels than can be justified by usage or war reserve requirements. The loading of fleet oilers at supply points away from the source of supply has resulted in unnecessary double handling of fuels, thus increasing costs.

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