Subscribe to our free daily newsletters
. Military Space News .

Subscribe to our free daily newsletters

Pentagon to save $23M in U.S. Bank deal

disclaimer: image is for illustration purposes only
by Staff Writers
Washington (UPI) May 18, 2011
The Pentagon stands to save at least $23 million a year after changing the way it pays the cost of transporting military personnel's effects during redeployment or in response to other logistical needs related to service personnel.

Part of an ongoing cost-cutting operation across the board in government departments the military's saving plan is the result of a deal the Pentagon reached with U.S. Bank, the fifth largest bank in the United States.

The bank said the expected saving would occur because of its expanded relationship with the Pentagon. The U.S. Defense Department has entrusted U.S. Bank with the task of automating payments for the shipment of redeployed personnel's effects, called "non-temporary storage."

By moving to electronic billing and payment of storage and related costs through U.S. Bank freight payment program, U.S. Bank anticipates saving the military services nearly $23 million a year over the current paper-based process.

The government pays storage facilities using paper invoices that can take up to 120 days to process. With U.S. Bank freight payment's automated process, the average turnaround for payment will be reduced to 72 hours, the bank said.

The new agreement expands on U.S. Bank's existing contract with the Defense Department, which covers payment of transportation-related costs connected with service member relocations.

With conflicts continuing in the Middle East and U.S. personnel deployment across the globe a routine occurrence, the savings came as welcome news.

U.S. Bank provides both the Pentagon and its transportation service providers with online access to shipment data as well as analytical reporting tools in addition to payment processing. The bank processed more than 8.2 million invoices for the department last year.

The new system will add further transparency and increase cost-saving opportunities, said Doug Ichiuji, senior vice president and head of government services for U.S. Bank corporate payment systems.

U.S. Bancorp, the parent company of U.S. Bank, had $311 billion in assets as of March 31.

The bank was forged during the 1990s from the combination of several major regional banks, which in turn grew from mergers and acquisitions of smaller banks.

The bank has headquarters in Minneapolis and employs more than 63,000 people.

In January, U.S. Defense Secretary Robert Gates announced the largest reduction in the Pentagon's budget since the Sept. 11, 2001, attacks on the United States. The projected savings effectively froze parts of the budget right through 2016, although officials say funding for combat operations in Iraq and Afghanistan remains largely unaffected.

Gates said at the time the curtailed budget represents "the minimum level of defense spending that is necessary, given the complex and unpredictable array of security challenges the United States faces around the globe."

Share This Article With Planet Earth DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook

Related Links
The Military Industrial Complex at
Learn about the Superpowers of the 21st Century at

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Russia expels Israeli military attache for 'spying'
Jerusalem (AFP) May 18, 2011
Russia has expelled Israel's military attache at its Moscow embassy on "unfounded" spying allegations, the Israeli military said Wednesday, in a case that media say has officials here puzzled. "The IDF (Israel Defence Forces) military attache and ministry of defence representative in Russia, an IDF colonel, was detained for investigation last week by Russian authorities, on suspicion of spyi ... read more

Medvedev warns of Cold War over missile defence

Medvedev warns of Cold War over missile defence

Boeing to Begin Maintenance Work on SBX Missile Defense Radar

Russia presses US for missile security safeguards

Ukraine seeks talks with Romania, US on missile shield

US Army's Apache fires first Hellfire missiles at sea

US studies UN report Iran, NKorea sharing missile know-how

Iran denies sharing missile know-how with North Korea

HART On-Demand Intelligence System Proves Value To Warfighters Ahead of Theater Deployment

TiaLinx Announces Launch of Phoenix50-H

US drone attacks kill nine in Pakistan: officials

Cassidian and TAI agree on cooperation in the Talarion programme

Northrop Grumman Awarded Continuing Operation of Battlefield Airborne Communications Node Contract

ADTI Launches High Performance Antenna Arrays Protype Program

Northrop Grumman Awarded Contract to Develop EHF SatComms Antenna for B-2 Bomber

Lockheed Martin To Produce Equipment For US Army Tactical On-The-Move Network

LockMart To Upgrade Finland's Precision Fires Capability

Australia gives green light for Largs Bay

Second F-35A Production Jet Arrives at Edwards AFB

Iraq gets first of 420 Ukrainian APCs

Pentagon to save $23M in U.S. Bank deal

Germany details Bundeswehr reform

Fired Russian major alleges troops fed dog food

F-35 now 'unaffordable': Defense official

China military not out to challenge US: PLA general

NATO wants 'true strategic partnership' with Russia: chief

China never intends to challenge US: top general

Ban 'willing' to work on as UN leader

MLD Test Moves Navy A Step Closer To Lasers For Ship Self-Defense

US Navy And Northrop Grumman Accomplish Goals For At-Sea Demonstration Of Maritime Laser

Scientists Build World's First Anti-Laser

The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement