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SDDC Bond

The Military Surface Deployment and Distribution Command (SDDC) requires a surety bond, among other requirements, of Transportation Service Providers (TSP) who wish to transport Department of Defense (DOD) freight. A TSP according to the SDDC includes:

  • Freight Carriers
  • Freight Brokers
  • Logistic Companies
  • Freight Forwarders.

In order to register to become a DOD freight carrier, the TSP would have to register with the SDDC during the "Open Season Registration". Open season timeframes are set by the SDDC and posted on their website periodically.

The purpose of the SDDC bond is to provide a form of guarantee to the SDDC that a TSP’s obligations to deliver DOD freight will be fulfilled. The performance bond covers cases where the TSP cannot or will not deliver cargo the TSP is responsible for.

SDDC bond amounts vary depending on the type of Transportation Service Provider registering, the size of the company and the number of states to be serviced. Typically, freight brokers, logistics companies and forwarders will be required to get a $100,000 performance bond. Freight carriers will need either a $25,000, $50,000 or $100,000 performance bond. The SDDC provides guidelines on which bond amount is required for each registering TSP.

A Standard Carrier Alpha Code (SCAC) is required to complete the SDDC bonding process. A SCAC is a 2 to 4 letter code issued by the National Motor Freight Traffic Association (NMFTA) to identity transportation companies. The SDDC requires a separate performance bond for each SCAC.

MTMC Bond

The SDDC bond is sometimes referred to as MTMC bond. The Military Traffic Management Command (MTMC), as of January 1st 2004, was renamed to the Military Surface Deployment and Distribution Command (SDDC).

SDDC Bonding Process

The SDDC bonding process is straight forward. The underwriting typically takes into consideration business and personal financials. To get started with the bonding process, a surety bond application and credit check are required. The SCAC will be needed prior to bond issuance. A Viking agent will let you know exactly what is needed to gain the best quote for your specific SDDC bond request. Viking provides a quick turnaround on SDDC bonds.

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