If your top-level categories don’t change often, you could put the text for them in the nav bar and then show just their children as in:
http://codex.ww.wp.xz.cn/Template_Tags/wp_list_categories#Only_Show_Children_of_a_Category
If you don’t want to worry about changing the menu when you add/delete a top-level category, you’ll need another loop in your menu code and you might use the get_categories and get_category_link functions.
You’ll probably need to make sure the lists match up with what your theme/css is expecting, and decide whether a top level category with children is a link or not.
Or, simpler, what if you take out the “Categories” and the “UL” tags underneath it Doesn’t that give you your top level categories at the same level as “DU HQ”?
But I may be completely missing your point.