Rear Admiral Kelly, a second-generation Naval Academy graduate, earned a Bachelor of Science degree in Ocean Engineering from Annapolis in 1973.  Upon commissioning, he joined USS Joseph Strauss (DDG 16) on deployment in the Western Pacific, serving as Main Propulsion Assistant and Navigator.  He then attended the Naval Postgraduate School, earning a Master of Science degree in Weapons Systems Technology. 

In July 1979, Rear Admiral Kelly joined the commissioning crew of USS Thorn (DD 988) as Combat Systems Officer, deploying to the Mediterranean in 1981, conducting Lebanese Missile Crisis and Gulf of Sidra Freedom of Navigation operations.  He returned to the Western Pacific in 1982 as Weapons Officer in USS Leahy (CG 16), participating in three carrier battle group operations off the Kamchatka Peninsula. 

Following his third sea tour, Rear Admiral Kelly reported to OPNAV in September 1984 as the Surface Navy's Gunnery Officer, with subsequent responsibilities for Harpoon and Tomahawk missile systems.  In January of 1986, he reported as Executive Officer, USS Yorktown (CG 48).  Operating in the Black Sea, Mediterranean and extensively in the Gulf of Sidra, Yorktown earned SIXTHFLT's Tophand and Battle Efficiency Awards. 

Following a tour on the staff of Commander, Surface Warfare Development Group as Director for Tactical Development, Rear Admiral Kelly reported to the Current Operations Directorate, Joint Chiefs of Staff (J3) as the conventional Tomahawk Officer and as Action Officer, European and Central Command branch from January 1989 to January 1991.  During this period, he participated in the planning and execution of the Panama and Desert Shield Operations, while concurrently serving as briefer for the Chairman of the Joint Chiefs of Staff and the Secretary of Defense. 

In October 1991, Rear Admiral Kelly reported as the commissioning Commanding Officer in USS John Paul Jones (DDG 53).  Preparing John Paul Jones for deployment, he conducted Shock Trials for the Arleigh Burke class; the most successful on record.  He then joined the staff of the Director, Surface Warfare Division (N865) as Deputy Director, Theater Ballistic Missile Defense (N865J).  He then assumed command of USS Gettysburg (CG 64) in May 1996, immediately deploying with the Enterprise Battle Group to the Mediterranean and Persian Gulf, including extensive Operation Southern Watch operations. 

Rear Admiral Kelly then served as Chief of Staff, Commander, Second Fleet and Commander, Striking Fleet Atlantic until September 1999, preparing five battle groups for deployment, and conducting Strong Resolve 98, the largest NATO exercise since the end of the Cold War.  He then assumed duties as N765 (Director, Theater Air Warfare), and subsequently Deputy Director, Surface Warfare (N76B), responsible for all Surface Warfare Programs.