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May 8, 2020
Defense Primer: The Defense Logistics Agency
Established under Title 10, Sections 191 and 192, of the
distribute about 5 million distinct consumable, expendable
United States Code (U.S.C.), the Defense Logistics Agency
and reparable items ” to its military customers . The agency
(DLA) is a single Department of Defense (DOD) agency
contracts for high-volume, commercially available items
responsible for supply or service activities common to all
based on customer requirements. It then distributes these
military departments. Section 193 of Title 10 identifies
items directly to the requesting customer (e.g., a shipyard or
DLA as a combat support agency, a designation that
maintenance depot), or stores them for later delivery. DLA
according to DLA, “gives DLA a formal oversight
also allows customers to order supplies directly from
relationship with the chairman of the Joint Chiefs of Staff
integrated supply chain contractors if they are an approved
and allows combatant commanders to request specific
provider through the Prime Vendor Program (see Figure 2).
support from the agency.” Under these authorities, the
agency manages the global supply chain for DOD and its
Figure 2. DLA Supply Chain Management Process
partners by providing procurement, storage, distribution,
disposition, and other technical services to its customers.
DLA is one of several organizations that are essential to the
Joint Logistics Enterprise (see Joint Publication 4-0).
DLA is headquartered in Fort Belvoir, VA, but the agency
operates in most U.S. states and territories and in 28 foreign
countries (see Figure 1). Annually, it provides more than
$37 billion worth of goods and services to DOD, other
federal agencies, and partner and allied nations. DLA states
it “supplies 86 percent of the military’s spare parts, and

nearly 100 percent of fuel and troop support consumables,
Source: Government Accountability Office (GAO-02-776).
manages the reutilization of military equipment, provides
catalogs and other logistics information products, and offers
DLA delivery of items typically includes supplementary
document automation and production services.” Through
services like warehousing, packaging, and transportation.
established DOD programs, DLA can also support tribal,
state, and local government agencies.
Energy Products and Services
DLA exclusively procures and manages energy products for
Figure 1. Distribution of DLA Employees, April 2020
DOD including bulk petroleum-products (i.e., petroleum,
oil, and lubricants, or POL), coal, natural gas, electricity,
alternative fuels, and missile fuels. DLA Energy (DLA-E)
is the DLA subordinate command that performs this
function by securing vendor contracts for energy products,
managing product inventory, and ensuring the delivery of
those products to its customers worldwide. DLA-E also
provides energy-related services to military installations
including energy acquisition support and utilities
contracting. In addition to bulk petroleum fuels and
electricity, DLA-E provides propellants, cryogenics, and
gases for military weapons systems and space programs.
National Defense Stockpile
The National Defense Stockpile (NDS)—established in 50
U.S.C. §98 et seq.—is a non-fuel, raw materials-based
stockpile that “protects against a costly dependence upon
foreign and single points of supply for strategic and critical
materials needed in times of national emergency.” DOD
Source: CRS graphic based on DLA data.
periodically stockpiles 42 commodities in the NDS—
mainly base and precious metals—that are critical to
Major Responsibilities
defense needs. DLA Strategic Materials (DLA-SM) is
DLA’s
responsible for managing the NDS and is required to
primary purpose is to meet the logistics
provide a report to Congress every two years on stockpile
requirements of the armed forces for food, clothing, fuel,
requirements. The last report was submitted to Congress in
parts, and other items . Its major responsibilities are to “(1)
January 2019.
buy or contract, (2) warehouse when needed and (3)
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link to page 2 Defense Primer: The Defense Logistics Agency
Organizational Structure
 DLA Working Capital Fund. Used to manage DLA’s
DLA is organized into one headquarters led by a three-star
global supply chains and subordinate commands. It has
general or flag officer, three regional commands (called
three major activity groups: Energy, Supply Chain
“regional headquarters”), and six subordinate commands.
Management, and Document Services.
Regional Commands
ï‚· NDS Transaction Fund. Established under 50 U.S.C.
§98h and managed by DLA, the fund is used for the
DLA regional commands provide a unified DLA interface
acquisition and management of materials for the NDS.
with warfighters in specified areas of responsibility.
ï‚·
Table 1. DLA FY2021 Request ($ in millions)
DLA Europe & Africa. DLA’s primary liaison to U.S.
European Command, U.S. Africa Command, and NATO.
Appropriation Title
FY2021 Request
 DLA CENTCOM & SOCOM. DLA’s primary liaison
Procurement
417.46
to U.S. Central Command and U.S. Special Operations
Command.
Operations and Maintenance (O&M)
382.08
 DLA Indo-Pacific. DLA’s primary liaison to U.S.
Research, Development, Test &
206.95
Pacific Command, U.S. Forces Korea, U.S. Forces
Evaluation (RDT&E)
Japan, and U.S. Alaskan Command.
Military Construction (MILCON)
250.30
Subordinate Commands
Total
1,256.79
DLA subordinate commands provide functional services.
Source: Department of Defense, https://comptrol er.defense.gov/.
ï‚· DLA Troop Support (Philadelphia, PA). Manages the
global supply chains for food, textiles, construction
Considerations for Congress
materials, industrial hardware, repair parts, and medical
ï‚· Financial Management. DOD Agency Financial
supplies and equipment including pharmaceuticals.
Reports identify and issue Notices of Findings and
ï‚· DLA Distribution (New Cumberland, PA). Provides
Recommendations (NFRs) to help DOD understand,
storage and distribution services and management, and
prioritize, and address deficiencies in financial
offers planning solutions for logistics and transportation,
management. DLA received 409 NFRs in FY2018, and
using a global network of distribution centers and sites.
closed 35 NFRs in FY2019. DLA received a total of 476
ï‚·
new or reissued NFRs in FY2019, the second highest
DLA Disposition Services (Battle Creek, MI).
number of any DOD component audited.
Provides global reverse logistics services, such as the
disposal of excess personal property through transfer,
ï‚· Market Volatility. DLA is susceptible to changes in
reutilization, donation, or public sale; demilitarization of
market prices for oil, gas, and other high demand goods
military property; and hazardous waste disposal.
and services that are dependent on market availability.
ï‚·
See CRS In Focus IF11202, Oil Price Volatility and the
DLA Aviation (Richmond, VA). Manages the global
Department of Defense, by Heather L. Greenley.
supply chain for aircraft weapons systems including
parts and commodities, flight safety equipment, maps,
ï‚· Pricing Transparency. According to a 2019 report by
environmental products, and industrial plant equipment.
the Government Accountability Office (GAO), military
ï‚·
departments claim that DLA lacks transparent pricing
DLA Land and Maritime (Columbus, OH). Manages
and does not provide detailed information on the costs
the global supply chain for ground-based and maritime
included in its rates, making it difficult for customers to
weapons systems including parts and commodities, smal
understand and manage their costs (See GAO-20-65).
arms parts, and motors and fluid-handling systems.
ï‚· DLA Energy (Fort Belvoir, VA). Manages the global
Relevant Statutes
supply chain for POL products, alternative fuels and
Title 10, U.S. Code §§ 191, 192, 193
renewable energy, aerospace propellants and gases, and
also provides utility services to installations.
CRS Products
DLA Funding
CRS In Focus IF11233, Defense Primer: Defense Working Capital
DLA is authorized funding in annual National Defense
Funds, by G. James Herrera
Authorization Acts and receives budget authority in both
the Defense Appropriations and Military Construction,
Other Resources
Veterans Affairs, and Related Agencies Acts. Regular
DOD Directive 5105.22, Defense Logistics Agency
appropriations are managed through DLA’s General Fund.
Joint Publication (JP) 4-0, Joint Logistics
ï‚· DLA General Fund. Appropriation titles generally

include Procurement, Operations & Maintenance;
Research, Development, Testing, & Evaluation; Military
G. James Herrera, Analyst in U.S. Defense Readiness and
Construction, and Family Housing (see Table 1).
Infrastructure
DLA also manages two revolving funds: (1) the DLA
Hibbah Kaileh, Research Assistant
Working Capital Fund, and (2) the DLA Transaction Fund.
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Defense Primer: The Defense Logistics Agency

IF11543


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