DAOD 3014-1, Management of Fuels and Lubricants
Identification
Date of Issue: 2009-05-19
Application: This DAOD is a directive that applies to employees of the Department of National Defence (“DND employees”) and an order that applies to officers and non-commissioned members of the Canadian Forces (“CF members”).
Approval Authority: Assistant Deputy Minister (Materiel) (ADM(Mat))
Enquiries: Director Fuels and Lubricants (DFL)
Definitions
- Alternative Energy (énergie de remplacement)
- Alternative energy means wind, solar, thermal or biomass.
Note – Alternative energy is used to mitigate the use of fuel products. - Alternative Fuel (carburant de remplacement)
- Alternative fuel means any:
- product used in place of conventional gasoline or diesel fuel, including compressed natural gas, liquefied natural gas, propane, hydrogen, chemically stored electricity, methanol or ethanol; or
- liquid hydrocarbon that has been reformulated, blended with oxygen-rich components or otherwise altered to comply with environmental regulations, including any reformulated fuel, ethanol-blended fuel (e.g. E10 to E85), synthetic fuel or biodiesel.
Note – Alternative energy is used to mitigate the use of fuel products. - Fuel (carburant)
- Fuel means any form of matter that is combusted or oxidized for the generation of energy propulsion, power generation or heat, and includes aviation fuel, marine distillate fuel, automotive diesel, gasoline and heating oil. See C-82-007-001/AF-000, Reference Book on Petroleum and Associated Products, for more detailed information
- Lubricant (lubrifiant)
- Lubricant means any grease, hydraulic fluid, oil, corrosion preventive compound or related specialty product.
- Petroleum Handling Equipment (PHE) (équipement pétrolier)
- Petroleum handling equipment means any bladder, coupling, hose, pump, filter, jerry can or related equipment necessary for the handling of fuels and lubricants (F&L).
Overview
Context
F&L activities are integrated, to the maximum extent practicable, in the materiel acquisition and support (MA&S) and green procurement processes of the DND and the CF. The integration contributes towards other DND and CF programs and objectives, including:
- the Defence Information Services Broker;
- the Canadian Forces Supply System (CFSS), using the aviation, petrol, oil and lubricants standard operating procedures;
- the Materiel Acquisition and Support Information System (MASIS);
- the Automated Fuel Data System (AFDS)
- the Fleet Management System (FMS);
- the Financial Managerial Accounting System;
- the Human Resources Management System;
- the Allied Deployment and Movement System (ADAMS);
- compliance with the Canadian Environmental Protection Act, 1999 and associated regulations;
- green procurement compliance; and
- records management.
See the following documents for additional information:
- Policy on Green Procurement of Public Works and Government Services Canada;
- DAOD 3000-0, Materiel Acquisition and Support;
- DAOD 3014-0, Fuels and Lubricants; and
- DAOD 3015-0, Green Procurement,and DAOD 3015-1, Management of Green Procurement.
See the following documents for additional information:
- Policy on Green Procurement of Public Works and Government Services Canada;
- DAOD 3000-0, Materiel Acquisition and Support;
- DAOD 3014-1, Management of Fuels and Lubricants;
- DAOD 3015-0, Green Procurement, and DAOD 3015-1, Management of Green Procurement; and
- Chapter 10, Petroleum Support, of the NATO Logistics Handbook for information related to the single fuel policy (SFP).
Purpose
The purpose of this DAOD is to:
- explain the management of F&L throughout the MA&S and green procurement processes; and
- define the roles and responsibilities involved in the management of F&L in the DND and the CF.
Agreements
Fuel Exchange and Replacement-in-Kind Agreements
To provide for the refuelling of aircraft, vessels, vehicles and equipment, Canada enters into agreements with other countries, including agencies and political subdivisions of countries, and international organizations. These agreements include:
- fuel exchange agreements; and
- replacement-in-kind agreements.
Fuel balances are normally replaced in kind or as specified by an agreement.
Single Fuel Policy
See Chapter 10, Petroleum Support, of the NATO Logistics Handbook for information relating to the single fuel policy (SFP).
North Atlantic Treaty Organization (NATO) Standardization Agreements
F&L principles and procedures shall be applied in accordance with NATO standardization agreements (STANAGs).
Commercial Sources, Host Nations and Lateral Support
Commercial sources, host nations and lateral support shall be used to the maximum extent practicable to:
- meet deployed requirements; and
- ensure the standardization of PHE among allied nations.
Acquisition and Supply Administration
General
Acquisition and supply administration includes:
- into-platform contracts (sea, land, air and equipment);
- fuel cards;
- bulk petroleum product;
- day of supply (DOS);
- fuel efficiency;
- packaged petroleum products; and
- conventionally powered platforms.
Into-Platforms Contract
An into-platform contract is a contract negotiated by the Canadian government with a contractor to refuel military vessels, aircraft, vehicles and equipment from commercial resources.
The contractor supplies F&L and refuelling facilities, e.g. storage tanks, vehicles and equipment.
The use of government refuelling trucks, equipment and bladders is not authorized unless the into-platform contract so provides.
Commercial platforms under a government charter or contract may be refuelled at into-platform contract locations.
Fuel Cards
Fuel cards are commercial credit cards used to purchase fuel, fuel related products and emergency services in Canada and internationally.
Bulk Petroleum Product
Bulk petroleum product is:
- delivered in volumes greater than 208 litres (55 U.S. gallons) such as tank trucks and cars, pipelines, coastal barges and ocean tankers; and
- stored in tanks having a fill capacity greater than 208 litres (55 U.S. gallons).
Day of Supply
DOS represents the total quantity of materiel and fuel required for an average day of operations at a defined operational tempo.
Fuel Efficiency
Fuel efficiency is to be achieved by applying best practices and procedures to improve fuel economy, optimize performance, reduce emissions and minimize the life cycle costs of platforms.
Packaged Petroleum Product
Petroleum products shall be packaged in containers of 208 litres (55 US gallons) or less.
Conventionally-powered Platforms
Conventionally-powered platforms operate on distillate-type fuel or other approved alternative fuels designated for their propulsion.
An operational commander (comd) shall consider forms of alternative energy and specify the type of fuel designated for the battlefield platforms depending on availability and equipment to be used within the theatre.
Stock and Inventory Administration
General
The following F&L inventory levels and types are optimized by the DND and the CF, consistent with peacetime and contingency needs of the CF:
- operating stocks;
- local reserves;
- strategic reserves;
- fuel support for ground CF equipment;
- primary fuel support for sea-based aircraft; and
- single kerosene-based fuel used as the primary fuel for support equipment and vehicles.
Operating Stocks
F&L operating stocks are held locally to support normal operations. The quantity of operating stocks is:
- based on normal operations for each location; and
- sized to meet requirements based on stable re-supply routes and timeframes.
Environmental chiefs of staff (ECSs) shall approve the quantity of operating stocks.
Local Reserves
Local reserves are stocks held locally in addition to operating stocks. The quantity of local reserves is:
- based on the most demanding operational plan for each location; and
- sized to meet requirements based on stable re-supply routes and timeframes.
CSs shall approve the quantity of local reserves.
Strategic Reserves
Strategic reserves are held to support operations that have a national security implication.
DFL recommends the quantity and nature of strategic reserves based upon the advice of the Comds of Canada Command (Canada COM), Canadian Expeditionary Force Command (CEFCOM), Canadian Special Operations Forces Command (CANSOFCOM) and Canadian Operational Support Command (CANOSCOM).
The stocking levels of strategic reserves are approved by the Chief of the Defence Staff.Fuel Support for Ground CF Equipment
Under the SFP, the single fuel support recommended for ground CF equipment is aviation fuel. When the supply of aviation fuel is not practicable or cost effective, commercially available diesel fuel may be used.
Primary Fuel Support for Sea-based Aircraft
Primary fuel support for sea-based aircraft is a high-flash kerosene-based fuel, designated as F-44 (JP-5).
In deployed theatres where the predominant fuel requirement is in support of naval operations, F-44 (JP-5) may be substituted for F-34 (JP-8) fuel, as approved by the operational comd.
Designing and Procuring Weapons System, Support Equipment and Vehicles
The ADM(Mat) and ECSs shall design and procure weapon systems, support equipment, and vehicles using a single kerosene-based fuel, as primary fuel support for land, air- and ground-based CF platforms in all theatres (deployed and domestic operations), in order of precedence as follows:
- F-34 (JP-8) - Jet A-1 fuel with an additives package; or
- F-35 - Jet A-1 fuel without an additives package.
Note – The term “additives” is used to include fuel system icing inhibitor, corrosion inhibitor and lubricity improver additive, and static dissipator additive.
Use of Management Services
General
F&L management services include use of:
- fuel transaction data from systems such as MASIS, ADAMS, CFSS, AFDS and FMS;
- related standing offers;
- training;
- the capturing, monitoring and reporting of fuel transactions and external and internal data; and
- contributions and support.
Canadian Forces Supply System
The CFSS is used as the principal system of record for F&L, capturing:
- fuel transaction data of petroleum and oil products;
- other types of fuel from bulk delivery;
- the initial call-up (demand to industry);
- transportation mode from the refinery;
- deliveries to warehouses (storage tanks);
- transfers to mobile tankers and refuelling tenders;
- tests, samples, conversions, adjustments and additives; and
- issues to, and consumption by, platforms (aircraft, vehicle, vessels and equipment).
- Fuel transactions in the CFSS shall be recorded in accordance with the A-LM-077-014/AG-001, Canadian Forces Supply Manual.
Fleet Management System
The FMS is used to record F&L consumption by specific mobile support equipment (MSE) and ground support equipment (GSE). Level 3 fuel transaction data is recorded in accordance with:
- the Directive on Fleet Management: Light Duty Vehicles of the Treasury Board; and
- A-LM-158-005/AG-001, Transportation Manual 158, Chapter 7, Fuel and Environment.
Recorded transaction data includes:
- the name of the driver;
- MSE and GSE identity number;
- fuel type and quantity (litres);
- time, date, odometer/hour meter;
- cost per litre;
- location and address where the F&L is procured;
- customer financial code;
- card number (if commercial purchase); and
- vendor business number if commercial purchase.
Fuel Transaction Data
Fuel transaction data from information technology systems such as the CFSS and FMS is used to compile reports for:
- Parliament;
- federal government departments;
- NATO and other organizations as required under international agreements; and
- other organizations as directed by the ADM(Mat) or the DFL.
Bulk Fuel Standing Offers
Bulk fuel standing offers are used if available. The environmentally preferable F&L good or service shall be selected when available.
Training
The necessary training to support the objectives of the F&L policy is provided to:
- management;
- technical staff; and
- persons in procurement services delivery and oversight positions.
Monitoring and Reporting
Monitoring and reporting F&L policy performance is done through the annual Report on Plans and Priorities and the Departmental Performance Report, including the Sustainable Development section, if applicable.
Contribution and Support
Contribution and support for the F&L policy objectives is part of the performance evaluations of managers and functional heads of procurement, materiel and project management dealing with F&L, as appropriate.
Responsibilities
Responsibility Table
The following table identifies the responsibilities associated with this DAOD:
| The … | is or are responsible for … |
|---|---|
ADM (Mat) |
|
ADM (Infrastructure and Environment) and Director General – Environment |
|
ADM (Science and Technology) |
|
ADM (Information Management) |
|
ADM (Mat) and ECSs |
|
ECSs |
|
Comds of Canada COM, CEFCOM, CANSOFCOM, CANOSCOM and special operating agencies |
|
operational comds, officers commanding commands or formations and commanding officers of units |
|
Director General – Materiel Systems and Supply Chain |
|
DFL |
|
DND employees and CF members involved in F&L related activities |
|
References
Source References
- Canadian Environmental Protection Act, 1999 and associated Regulations
- Directive on Fleet Management: Light Duty Vehicles, Treasury Board
- Policy on Green Procurement, Public Works and Government Services Canada
- A-LM-077-014/AG-001, Canadian Forces Supply Manual
- A-LM-158-005/AG-001, Transportation Manual, Chapter 7, Fuel and Environment
- NATO Logistics Handbook, Chapter 10, Petroleum Support
- NATO Standardization Documents, Online Library
Related References
- Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations
- Policy Framework for the Management of Assets and Acquired Services,Treasury Board
- Policy on Management of Materiel, Treasury Board
- Policy on Management of Real Property, Treasury Board
- Contracting Policy, Treasury Board
- Procurement Review Policy, Treasury Board
- Supply Manual, Public Works and Government Services Canada
- DAOD 3004-1, Procedural Overview – Contracting
- DAOD 3000-0, Materiel Acquisition and Support
- DAOD 3014-0, Fuels and Lubricants
- DAOD 3015-0, Green Procurement
- DAOD 3015-1, Management of Green Procurement
- DAOD 4003-2, Environmental Assessment
- DAOD 4001-0, Management of Realty Assets
- DAOD 4001-1, Realty Asset Life Cycle Management
- DAOD 4003-0, Environmental Protection and Stewardship
- DAOD 4003-1, Hazardous Materials Management
- DAOD 6421-0, Records Management
- The National Defence Sustainable Development Strategy: 4th Iteration, Environmentally Sustainable Defence Activities
- National Defence Intranet site on green procurement, Director General Materiel Systems and Supply Chain
