b. Managing financial transaction to ensure optimum use of funds available and to avoid imbalances.
c. Routine stock replenishment. DESC and DERs must know when to ship product to what locations,
and in what quantities.
d. DESC accounting and financing receives documentation confirming what payments are owed to
commercial suppliers for fuel accepted into the system and when to target payments to get any discounts.
e. The DESC comptroller uses DFAMS data base as the basis for billing the military services.
f. DESC must account for all fuel it owns worldwide and at all locations, including both inventory and
financial accountability. This means keeping track of about 92 million barrels of petroleum, valued at more than
billion, at any given time. DFAMS keeps inventory and financial accounts current with more than 100,000
transaction occurring each year. These records are reconciled periodically with amounts actually on hand.
DFAMS is certified by the General Accounting Office as meeting the standards for government accounting.
2.
Origins of DFAMS.
a. Prior to 1971, DLA's mission was only the procurement of bulk petroleum. In August of 1971, the
Deputy Secretary of Defense expanded the mission of DLA from only procurement to worldwide centralized and
integrated supply management responsibility for all bulk fuel required by the military services. This mission is
referred to as IMM.
b. The objective of fuel IMM is to achieve timely worldwide inventory management control and to
establish financial control of DESC inventories. Bulk fuel IMM includes procuring the product form commercial
suppliers, assuming ownership and accountability, financial and inventory management and storage, safeguarding
and distribution to the point of delivery to base boundary, and sale to military service. The complex and
interrelated new responsibilities demanded a fast, accurate, and integrated management information system.
However, no system existed that matched the integrated functions required for bulk fuel management.
c. Existing systems designed for the individual functions in the services were used but they were not
compatible; there was no common language and no single unified point of data entry. In 1975, DFAMS was
conceived as the response to a need. DOD approved the concept and design work began in 1976 by DESC. To
assure compatibility of fuels automated systems with other DOD logistics systems, common codes and formats
were prescribed through a standardized reporting system known as DOD MILSPETS.
QM5200
8-2
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