(913) 214-8344 [email protected]

Department of Defense Performance Bond – Military Freight Bonds (SDDC Bond)

What is a Department of Defense Performance Bond?

A DoD bond is also known as a SDDC bond. They are required for freight carriers to haul freight for the military. If you would like to apply for your SDDC bond with us, you can see our application form, the required information and get a quote here:
Bond Apply Online - Start Here

You can now get a Department of Defense Performance Bond easily by clicking the Apply Online button above, or you can download THIS FORM, complete and send to [email protected].

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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.

SDDC Bond Stats

  • The SDDC Bond is a U.S. Department of Defense program that provides financial assistance to states and territories for the construction and maintenance of military installations.
  • The SDDC Bond program has provided over $2.3 billion in funding since its inception in 1997.
  • The SDDC Bond program has funded over 1,000 projects in the United States, Guam, Puerto Rico, and the U.S. Virgin Islands.
  • The SDDC Bond program is administered by the U.S. Army Corps of Engineers.
  • The SDDC Bond program is funded by the U.S. Department of Defense through the Military Construction Appropriations Act.
  • The SDDC Bond program is open to all states and territories in the United States.
  • The SDDC Bond program is a low-interest loan program, with interest rates ranging from 0.5% to 2.5%.
  • The SDDC Bond program has a repayment period of up to 30 years.

 

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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?

1) As long as you have your SCAC code, you can apply for a SDDC/DOD bond.

2) A SDDC Performance bond is not like normal Performance Bonds that are issued for construction contracts. It is more of a commercial bond than a contract (performance) bond, even though the military calls it that.

3) The SDDC bond amount required is based on how many states you are transporting in (can be less if you are registered with the Small Business Administration-SBA):
$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
There is a set, $100,000 requirement, for Surface Freight Forwarders, Air Freight Forwarders, Logistics Companies and Brokers
You can read this requirement on page 7 (Step 5) of the military's requirements here.

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).

Then, download our form here and send it to [email protected]

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 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.

Facts about SDDC Bonds

  • SDDC Bond is an acronym for Standardized Deployment and Distribution Control Bond.
  • It is a type of financial instrument issued by the US Department of Defense (DoD) that is used to finance the purchase of military equipment.
  • The bond is issued in the form of a promissory note and is backed by the full faith and credit of the US government.
  • The bond is typically issued in denominations of $1,000 and is sold at a discount to its face value.
  • The proceeds from the sale of the bond are used to purchase military equipment and services from approved vendors.
  • The bond is typically issued for a period of 10 years and is redeemable at the end of that period.
  • Interest payments on the bond are paid semi-annually and are based on the current market rate of interest.
  • The bond is non-transferable and can only be redeemed by the original purchaser.

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.

How to Obtain a Military Performance Bond?

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Have you ever wanted to get a Military Performance Bond?

You can apply online or call us at (913) 214-8344 today! It takes less than 5 minutes to fill out our application form on our website or we can help you over the phone if you prefer.

What is a SDDC bond?

The SDDC has strict requirements for anyone who wants to transport their military freight. These include a surety bond, among other qualifications and certifications that need to be met before they can do business with the DOD. A TSP according to the SDDC includes: Freight Carriers, brokers, or any entity transporting goods on behalf of another company

What does DoD freight pay?

The average salary for a DoD truck driver in the United States is $44,180. This number falls 38% below the national average and is still worth more than some of our other jobs! See our How is a Performance Bond different from a Labor and Materials Bond?

When do you need a SCAC code?

You will likely want to get one if your company takes on freight transportation. The number is used for billing purposes and many shippers will not work with brokers or carriers without it.

Do brokers have SCAC?

Brokers pay this fee too, fortunately the annual fee is based upon fleet size (non-asset based brokers pay the minimum amount). You can register with your state UCR online. 12. Standard Carrier Alpha Code (SCAC) This is optional but strongly suggested.

What are the requirements to be a FAK carrier? 

The following tasks must be completed: Apply for an SCAC from NMFTA, set up a US Bank account, complete a program registration form, get DoD performance bond and comply with cargo insurance.

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Where can I find military freight?

Obtain a Standard Carrier Alpha Code from the National Motor Freight Traffic Association. You'll need both U.S DOT and MC numbers, as well as your credit card and email address in order to file online for $68 or on paper for $78). 

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