What is a Department of Defense Performance Bond?
How much Does a SDDC Bond Cost?
DoD Bonds are required for freight carriers to haul freight for the military. These are required by the Surface Deployment and Distribution Command (SDDC). The amount of the bond is determined based on the number of states and the size of the company.
Categories for Large companies:
- $25,000 for transporting in one state
- $50,000 for transporting in two to three states
- $100,000 for transporting in four or more states
Categories for Carriers registered with SBA:
- $25,000 for transporting in up to three states
- $50,000 for transporting in up to 10 states
- $100,000 for 11 or more states
Most sureties determine the cost based on the credit of the company requesting the bond. Good credit means that the rate will be between 1-3% of the bond amount (above). Thus, for a $50,000 bond at 3%, the cost would be $1,500.
What if I have Bad Credit?
You can still get a bond, but the cost is greater. Usually, the cost will be between 4-10%. We help a lot of SDDC carries get bonds and then work with them over time to reduce the cost.
Get a SDDC Bond – Military Freight Carrier Performance Bond Today
Government agencies are required to have a Department of Defense Performance Bond in order to be able to enter into contracts. It is the duty of the government agency, not the contractor, for providing performance bonds. The bond will act as an assurance that if certain criteria aren't met by the contractor then they will be liable for paying back any funds given out as part of the contract in addition to compensating for any damages caused by their failure. In this article we'll discuss what performance bonds are and how they work!
What are Military Freight Performance bonds?
Military Freight Bonds (SDDC Bonds), also known as a “department of defense performance bond”, is an assurance that if the contractor fails to meet certain criteria in their contract then they will be liable for paying back any funds given out as part of the contract. This money would come from whatever was paid on behalf of the contractor in addition to compensating for any damages caused by their failure.
A Department of Defense performance bond is a type of guarantee that the United States government requires for payment in advance from contractors. Performance bonds are required for all contracts with the federal government, and they are usually used to provide an assurance that work will be completed as agreed upon. The goal of this requirement is to ensure that taxpayers' money isn't wasted on projects that go unfinished or do not meet specifications.
Military Surface Deployment and Distribution Command Freight Carrier Bond
The Department of Defense performance bond (SDDC Bond) guarantees that the company will fulfill all requirements for their contract. If they do not, then they will be liable for paying back any funds given out as part of the contract. This money would come from whatever was paid on behalf of the contractor in addition to compensating for any damages caused by their failure.
How do you get a Military Freight Bond?
First, you will need to have a contract with the Department of Defense. If you don't already, then it's possible that your company could get one through their website. You can also find them by going and typing in “military freight bond” into the search bar on the page. The requirements are listed in the website for the military freight bond (please note that this is not insurance).
Getting a Department of Defense Hauling Performance Bond
A Department of Defense Performance Bond is a type of performance bond that guarantees the completion of a project. The bond can be used for any government contract, and it is only in effect during the time when contractors are working on their specific contracts. It's important to know how much money you need before applying for this kind of performance bond because it can range from $10,000 to $500,000 or higher depending on your needs.
A Department of Defense Performance Bond can be used for any government contract, and it is only in effect during the time when contractors are working on their specific contracts. It's important to know how much money you need before applying for this kind of performance bond because it affects the cost of the bond substantially.
What Does a DoD Performance Bond Guarantee?
The DoD performance bond guarantees that you will successfully carry out your obligations under the freight broker guidelines. In the case of abandoned shipments, bankruptcy, or other issue, the military can contact the surety and have the surety find another freight hauler to move the equipment. Please note that the bond does not protect you for late pickup, damaged cargo, or delivery problems. You'd need to contact your insurance carrier for that.