U.S. Bank and the U.S. Department of Defense (DoD) have agreed to extend their long-term contract, enabling the DoD to continue to pay its freight invoices electronically through U.S. Bank Freight Payment.
Using U.S. Bank Freight Payment to process and pay invoices saves the DoD and its partner agencies hundreds of thousands of dollars annually in freight invoice processing costs. U.S. Bank Freight Payment also gives the government a transparent supply chain with robust data capture and reporting, allowing the DoD to more effectively manage its transportation program.
“We are proud of our partnership with the DoD and what we have achieved in our joint efforts to attain greater efficiency and measurable savings through payment automation,” said Kurt Adams, president of U.S. Bank Corporate Payment Systems. “We continue to make significant, ongoing investments in expanding the program for the benefit of the department, its constituents and the American taxpayer.”
The U.S. Bank- DoD collaboration dates back to 1999, when the first of a continuing series of one-year contracts was signed. The collaboration has grown from 69 processed invoices in the first year to more than 11 million by the end of 2012.
New capabilities are continually being added. In 2012, the DOD worked with the bank and industry partners to automate the process by which providers of the “non-temporary storage” (NTS) of military household goods are paid. The elimination of paper processing represents additional millions in savings for the military and its NTS contractors.
“Cash flow for our impacted members has been exponentially improved, in some cases by months, through the DoD’s adoption of U.S. Bank Freight Payment for NTS,” said Chuck White, director of Military & Government Relations at the International Association of Movers, one of the DoD’s service providers. “This is significant, given that many of these contractors are small businesses dependent on timely payment for their operations.”
Other federal agencies that partner with U.S. Bank under terms of this contract include the State Department, Homeland Security, Health and Human Services, and the Department of Energy.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with $354 billion in assets as of December 31, 2012, is the parent company of U.S. Bank, the 5th largest commercial bank in the United States. The Company operates 3,084 banking offices in 25 states and 5,065 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.