SDDC Military Freight Carrier Performance Bond (DoD Military Transportation Bond)

Bond Penalty: Domestic Greater of $50,000 or 2.5% of Revenue, International Greater of $100,000 or 2.5% of revenue

A Military Surface Deployment and Distribution Command performance bond is an important financial assurance requirement from operators that wish to contract the the SDDC to perform freight movement support. Also known as a military transportation provider bond, the SDDC bond is required from businesses fitting the following Department of Defense activity definitions:

  • Domestic Personal Property Program Interstate and Intrastate shipments within CONUS (continental United States)
  • International Personal Property Program Shipments to/from CONUS/OCONUS as well as shipments between OCONUS destinations
  • Mobile Home Personal Property Program Movement of mobile homes within CONUS using One-Time-Only rates
  • Boat Personal Property Program Movement of boats within CONUS using One-TimeOnly rates

A potential operator must navigate a myriad of registration and software requirements, then provide ongoing information throughout the period of registration. The DoD provides a helpful checklist which you may download here. Detailed information may also be view on the SDDC's website. The DoD requires all operators to also to comply with all applicable Federal, State and Local requirements for the movement and storage of personal property. This often obligates the carrier or broker to also satisfy the FMCSA's BMC-84 freight broker bond requirement. Operators mus also obtain and maintain a valid four-digit alpha code from the National Motor Freight Traffic Association (NMFTA).

The SDDC Performance Bonds are required from both international and domestic operators. The the surface deployment bond requirement does not apply to domestic intrastate movement. International program participants must file a SDDC performance bond no less than $100,000 or 2.5% of its previous-year international DoD revenue, whichever is greater. Domestic carriers must file a transportation service provider performance bond of $50,000 or 2.5% of previous-year DoD revenue, whichever is greater. The SDDC bonds must be filed by the surety company through the Defense Personal Property System (DPS). If the DoD determines that a SDDC surety bond needs to be increased, the carrier will received a notification and be granted thirty (30) days to submit a new performance bond. SDDC bonds must be written as continuous obligations and there may be no lapse in coverage at any time.

National performance bond leader, Surety One, Inc. is a SBA approved underwriter for the SBA Bond Guarantee Program, international insurance brokerage and surety-focused managing general agency licensed in all fifty states, Puerto Rico, U.S. Virgin Islands, Canada and Dominican Republic. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for more information about a DoD surface carrier performance bond or any surety bonding need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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