October 24, 2022: Written by Quin H. Martin, Esq., Of Counsel, Becker LLC
Many trucking companies are unaware of the military SDDC program which can be a significant source of added revenues. SDDC hires outside logistics and transportation companies that are approved and pass a background check to move to support the Military and the Department of Defense (DOD) freight located at strategic seaports, military compounds and rail yards. Freight can include but is not limited to containers, tanks, food, and supplies to support the mission, non-hazardous and hazardous ammunition (note that there are special requirements for ammunition).
For those who are not familiar with military acronyms, SDDC stands for military Surface Deployment Distribution Command. In layman’s terms, SDDC moves a significant amount of freight worldwide and in the continental United States. Should your company qualify and be able to take advantage of this program, you will need to understand certain terms in order to navigate the program including OCONUS and CONUS. OCUNUS means Outside the Continental United States which includes Hawaii, Alaska and United States territories such as Puerto Rico and Guam. CONUS simply means the Continental United States.
There are several opportunities afforded to active approved SDDC program participants. There are ample amounts of opportunities to obtain freight through Direct Contracts, Tender Contracts and Spot Bids Contracts. The advantages of securing SDDC contracts is that there is never a shortage of work. The rates are more likely better than those rates trucking companies are obtaining in today’s market environment, especially given the shortage of freight carriers. Please understand, however, that SDDC Contracts are for the serious minded carriers who are looking to increase their business given that there is very little tolerance for non-performance.
The SDDC has an open season to register that can close and open at the discretion of the SDDC. The SDDC presently has an open enrollment under the Freight Carrier Registration. To be eligible a company must be registered as a transportation provider with the DOT for at least three years. The company also must obtain a Standard Carrier Alpha Code (SCAC). This can be obtained by the National Motor Freight Traffic Association (NMFTA). There are some Syncada Banking registration requirements the participant must establish for payments. A DOD Performance Bond is required and the amount of the bond may vary from $25,000 to $100,000 depending on participation as a Freight Carrier and SBA status.
If your company’s management team has the patience to learn a few acronyms, a little training on how defense contracts work, and the desire to increase your company’s business, this could be the right opportunity for your company.
If you have any questions or would like any additional information, please feel free to contact our Quin H. Martin from the Becker LLC Trucking and Logistics team at:
Quin H. Martin, Esq. Attorney at Law
Admitted NJ, NY & PA
Direct: (973) 251-8935