ATTENTION: TRANSPORTATION SERVICE PROVIDERS!

You have an important opportunity to support the Surface Deployment and Distribution Command (SDDC), a wing of the United States military and the Department of Defense (DoD). All that you need to do to be eligible is comply with DoD requirements and the new business could be yours.

In order to transport military freight, all motor carriers, freight brokers and freight forwarders are required to have DoD performance bonds.

DOD Performance Bonds

It could be a tremendous new revenue opportunity and the team here at PFA Transportation Insurance & Surety Services can help set you up for success.

The DoD performance bond amount is set at a flat rate of $100,000 for freight brokers and freight forwarders. Bonds for motor carriers are based on the size of your company and how many states you serve. For most freight carriers, a bond in the amount of $25,000 is required for business in one state. Two to three states require a $50,000 bond while four or more are covered by a bond of $100,000. All transportation service providers that have at least three years of continuous authority can apply.

A Standard Carrier Alpha Code (SCAC) is required to complete the SDDC bonding process. For those that may not have previously applied, a SCAC is a 2 to 4 letter code issued by the National Motor Freight Traffic Association (NMFTA) to identify transportation companies. The SDDC requires a separate performance bond for each SCAC (and that applies to motor carriers, brokers, forwarders and other logistics companies).

Surface Deployment and Distribution Command

If you’re interested in supporting the Surface Deployment and Distribution Command and getting your company set up for DoD performance bonds, give us a call today at 1-800-595-2615 and ask for Pam or email us at pgoetsch@PFAprotects.com. We’ll walk you through this important financial assurance requirement and help get you set up in no time.

Your team at PFA