During his time at CINCPACTFLT he punished a number of subordinates for clear violations of the Navy's policy against sexist behavior.

Subsequently on October 16, 1992, Kelly reportedly made a sexually explicit joke during a staff meeting at his Pearl Harbor headquarters.

He was rebuked for the joke by Vice Chief of Naval Operations Stan Arthur and later recommended for forced retirement by Secretary of the Navy John Howard Dalton.

[4][5] After retirement, he was the Executive Vice President of The Wing Group, a leading international developer of energy projects.

In March 1999, Kelly became the President and Chief Operating Officer of Energetics, Inc., an energy consulting company and wholly owned subsidiary of the VSE Corporation.