DOD Agrees to PowerTrack Test

The Defense Department has agreed to conduct a test of the PowerTrack payment program to study its economic impact on freight carriers.

PowerTrack is an electronic payment system offered by U.S. Bank of Minneapolis. DOD plans to use it to pay contract carriers for the Army, Air Force, National Guard, Defense Logistics Agency and U.S. Transportation Command.

The new procedure has raised concern among some carriers because it would raise costs. PowerTrack requires participating carriers to pay a fee of between 1% and 2% of each invoice amount. In return, carriers are paid within days compared to weeks or months under the current system that relies on paper bills of lading.

At a meeting between DOD officials and carriers at American Trucking Associations headquarters in Alexandria, Va., in late May, participants agreed to set up a pilot program to assess the impact of PowerTrack on carrier operations and profitability (5-10, p. 2).

On July 8, representatives of the Military Traffic Management Command and Price Waterhouse Coopers will meet with carriers at ATA headquarters to set up the parameters for the evaluation.

lthough the test will be limited to qualified munitions carriers, the results could affect other truck operators who handle and transport government freight, said ATA Senior Vice President Paul Stalknecht.

DOD officials also signaled their willingness to work with the trucking association to address the concerns of carriers that handle and transport government freight.

ATA plans to set up a Government Traffic Conference to represent carriers that handle and transport government freight. The new conference will give carriers “a seat at the table” in dealing with government agencies, Stalknecht said.

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