The United States Department of Defense (DOD) oversees the Surface Deployment and Distribution Command (SDDC Performance Bonds), which requires 2 different Department of Defense Bonds. These are personal property carrier bonds and freight carrier bonds. The real name of these bonds is USTRANSCOM Performance Bond and is filed electronically by the surety market.
This is one of the Department of Defense Bonds required of carriers wishing to participate as licensed carriers for the SDDC. The bond guarantees the performance and fulfillment of transporting the personal property of military personnel between military bases.
Performance bonds are a central registration requirement for carriers under the FCRP. These bonds guarantee that carriers will perform their contractual obligations and deliver freight as required. They also serve as protection for the military in instances where a carrier defaults, goes bankrupt, or abandons shipments.
DoD performance bonds do not cover instances of late shipments, technical and operational difficulties and the like.
The dollar amount of the bond depends on the size of the carrier and the number of states they plan to operate in.
SDDC Performance Bonds amounts are as follows:
● $25,000 bond to service one state only
● $50,000 bond to service 2-3 states
● $100,000 bond to service 4-plus states
Small carriers that are also registered with the Small Business Administration (SBA) need to get a:
● $25,000 bond to service up to 3 states
● $50,000 bond to service up to 10 states
● $100,000 bond to service 11-plus states
Carriers who have already worked with the Department of Defense for three or more years can submit a bond in an amount equal to 2.5 percent of their total DoD revenue for the preceding 12 months. The bond cannot be over $100,000 or less than $25,000.
There are separate bonding requirements for bulk fuel carriers, surface freight forwarders, shipper agents, brokers and other TSPs. Make sure to check with the SDDC for more information.
Surety 1 makes it easy to apply for this bond. Simply visit our easy to navigate online application and within 1 business day one of our agents will contact you. If you have any questions, feel free to contact us at 877-654-2327 or [email protected]