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The Silent Revolution Within NATO Logistics: a Study in Afghanistan Fuel and Future Applications

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The Silent Revolution Within NATO Logistics: a Study in Afghanistan Fuel and Future Applications Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 2012-12 The silent revolution within NATO logistics: a study in Afghanistan fuel and future applications Evans, Michael J. Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/27827 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA THESIS THE SILENT REVOLUTION WITHIN NATO LOGISTICS: A STUDY IN AFGHANISTAN FUEL AND FUTURE APPLICATIONS by Michael J. Evans and Stephen W. Masternak December 2012 Thesis Co-Advisors: Keenan Yoho E. Cory Yoder Second Readers Brian Greenshields and Frank Giordano Approved for public release; distribution is unlimited THIS PAGE INTENTIONALLY LEFT BLANK REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington, DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED December 2012 Master’s Thesis 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS THE SILENT REVOLUTION WITHIN NATO LOGISTICS: A STUDY IN AFGHANISTAN FUEL AND FUTURE APPLICATIONS 6. AUTHOR(S) Michael J. Evans and Stephen W. Masternak 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Naval Postgraduate School REPORT NUMBER Monterey, CA 93943-5000 9. SPONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING N/A AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. IRB Protocol number ____N/A____. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release; distribution is unlimited 13. ABSTRACT (maximum 200 words) This thesis captures a history of the North Atlantic Treaty Organization (NATO) logistics fuel operation in Afghanistan and considers its lessons for the broader logistics community. The research focuses on a small group of individuals and how they came to supply over three million liters of fuel daily to Afghanistan with very little upfront investment from the International Security Assistance Force (ISAF) nations. The thesis describes how these individuals managed NATO fuel operations outside of traditional agencies like the NATO Support Agency (NSPA) and the worldwide U.S. Defense Logistics Agency (DLA) Energy. In addition, this thesis examines NATO’s operation in Afghanistan as compared to similar historical examples of large-scale coalition fuel efforts over long lines of communication. These historical case studies assist in framing the context of NATO logisticians’ accomplishments and the level of risk they accepted in supplying fuel to the NATO-led ISAF mission. Finally, the NATO case study provides a model for coalition support in a time when nations are unwilling or unable to provide logistic support to their forces. 14. SUBJECT TERMS Fuel, Class III, U.S. Fuel Operations, NATO, Logistics, Defense Logistics 15. NUMBER OF Agency Energy, DLA-E, NATO Support Agency, NSPA, ISAF, coalition logistics, multinational PAGES logistics, Afghanistan logistics, Basic Ordering Agreement, BOA, contract logistics, Logistics Civil 169 Augmentation Program, LOGCAP, Price per liter, PPL, Fully Burdened Cost of Fuel, FBCF 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION OF CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU NSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89) Prescribed by ANSI Std. 239-18 i THIS PAGE INTENTIONALLY LEFT BLANK ii Approved for public release; distribution is unlimited THE SILENT REVOLUTION WITHIN NATO LOGISTICS: A STUDY IN AFGHANISTAN FUEL AND FUTURE APPLICATIONS Michael J. Evans Major, United States Air Force B.A., University of California Davis, 1995 M.A., University of California Davis, 1996 Teaching Credential, Simpson College, 1997 Stephen W. Masternak Captain, United States Air Force B.A., Indiana University of Pennsylvania, 1996 Submitted in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE IN DEFENSE ANALYSIS from the NAVAL POSTGRADUATE SCHOOL December 2012 Authors: Michael J. Evans and Stephen W. Masternak Approved by: Keenan Yoho Thesis Co-Advisor E. Cory Yoder Thesis Co-Advisor Brian Greenshields Second Reader Frank Giordano Second Reader John Arquilla Chair, Department of Defense Analysis iii THIS PAGE INTENTIONALLY LEFT BLANK iv ABSTRACT This thesis captures a history of the North Atlantic Treaty Organization (NATO) logistics fuel operation in Afghanistan and considers its lessons for the broader logistics community. The research focuses on a small group of individuals and how they came to supply over three million liters of fuel daily to Afghanistan with very little upfront investment from the International Security Assistance Force (ISAF) nations. The thesis describes how these individuals managed NATO fuel operations outside of traditional agencies like the NATO Support Agency (NSPA) and the worldwide U.S. Defense Logistics Agency (DLA) Energy. In addition, this thesis examines NATO’s operation in Afghanistan as compared to similar historical examples of large-scale coalition fuel efforts over long lines of communication. These historical case studies assist in framing the context of NATO logisticians’ accomplishments and the level of risk they accepted in supplying fuel to the NATO-led ISAF mission. Finally, the NATO case study provides a model for coalition support in a time when nations are unwilling or unable to provide logistic support to their forces. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS I. INTRODUCTION ....................................................................................................... 1 A. THE BEGINNING .......................................................................................... 1 B. STATEMENT OF PURPOSE AND SCOPE ............................................... 1 C. METHODOLOGY AND OVERVIEW ........................................................ 2 1. Chapter II: The NATO ISAF Fuel Team History ........................... 2 2. Chapter III: Big Logistics .................................................................. 3 3. Chapter IV: Contract Fuel ................................................................. 3 4. Chapter V: Risk Analysis ................................................................... 4 5. Chapter VI: Conclusion ..................................................................... 4 II. THE NATO ISAF FUEL TEAM HISTORY ........................................................... 7 A. BACKGROUND AND HISTORY OF NATO INVOLVEMENT IN ISAF ................................................................................................................. 7 B. NATO ISAF FUEL TEAM–THE BASIC ORDERING AGREEMENTS ............................................................................................ 15 C. CONCLUSION ............................................................................................. 21 III. BIG LOGISTICS ...................................................................................................... 23 A. CONTROL AND ALLOCATION .............................................................. 23 B. U.S. AND UK FUEL SUPPORT IN WORLD WAR II ............................. 26 1. Fuel Supply Management at the National Level ............................ 27 2. Allied Fuel Supply Management ..................................................... 33 C. POST WWII U.S. DEFENSE FUEL SUPPORT ....................................... 41 1. DoD/DLA Concept of Operations .................................................... 43 a. Determining Theater Fuel Support Requirements ............... 43 b. Strategic-level Fuel Sourcing and Contracting .................... 44 c. Transportation, Storage and Distribution ............................. 45 2. DLA Energy–Operation Enduring Freedom ................................. 48 a. Determining Theater Fuel Support Requirements–OEF ..... 48 b. Strategic-level Fuel Sourcing and Contracting–OEF .......... 49 c. Transportation, Storage and Distribution–OEF ................... 49 D. NATO FUEL BOA SUPPORT TO ISAF ................................................... 51 E. CONCLUSION ............................................................................................. 59 IV. CONTRACT FUEL .................................................................................................. 61 A. NATO BASIC ORDERING AGREEMENTS ........................................... 61 1. NATO FUEL BOA: Structure, Characteristics and Procedures . 62 2. Price Per Liter ................................................................................... 64 3. NATO/ISAF Command Structure .................................................. 69 4. NATO/ISAF Contract Oversight ..................................................... 71 B. DLA ENERGY
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