Getting paid to haul military freight starts with one requirement: the SDDC bond. Without it, no Transportation Service Provider — carrier, broker, forwarder, or logistics company — can register with the government freight system, access military loads, or receive payment for DoD contracts. This guide covers everything you need to know about the SDDC bond: what it is, who needs it, how much it costs, and how the full registration process works from application to ETA access.
What Is the SDDC Bond?
The SDDC bond — formally called the USTRANSCOM Performance Bond — is a commercial surety bond required of all Transportation Service Providers (TSPs) who wish to transport freight for the U.S. military. It is a mandatory registration requirement, not optional coverage.
The bond takes its common name from the Military Surface Deployment and Distribution Command (SDDC), which administered the military freight program from 2004 until 2024. In 2024, SDDC was reorganized under the U.S. Army Transportation Command (ARTRANS). The Department of Defense itself was officially redesignated the Department of War (DoW) during the same period. Most bonding companies, registration documents, and industry guides still use the older SDDC/DoD terminology — which is why most carriers searching for this bond use “SDDC bond” — but the administering authority is now ARTRANS, and the current official name of the bond is the USTRANSCOM Performance Bond.
Before 2004, the program operated under the Military Traffic Management Command (MTMC). Carriers who see “MTMC bond” on older documents are looking at the same requirement under its original name.
Regardless of what it’s called in any particular document — SDDC bond, ARTRANS bond, DoD performance bond, MTMC bond, or USTRANSCOM Performance Bond — you are dealing with a single bond requirement administered by a single program. Getting bonded under one name satisfies the requirement under all of them.
How the SDDC Bond Works
The SDDC bond is a three-party agreement:
| Party | Role |
|---|---|
| Principal | The TSP — the carrier, broker, forwarder, or logistics company obtaining the bond |
| Obligee | ARTRANS (formerly SDDC) — the government agency requiring the bond |
| Surety | The insurance/bonding company that underwrites and issues the bond |
The bond guarantees that the principal will fulfill all contractual obligations to deliver DoD freight. It is not insurance for the TSP — it is a financial guarantee to the government. If a TSP defaults, the surety pays the claim to ARTRANS and then seeks full repayment from the TSP. A claim is not a covered loss; it is a debt.
What the SDDC bond covers:
- Carrier default on contracted DoD shipments
- Abandoned shipments
- Carrier bankruptcy during active freight contracts
What the SDDC bond does not cover:
- Late pickup or delivery
- Excessive transit times
- Refusals or no-shows
- Improper or inadequate equipment
- Payment disputes with subcontractors
- Lost, damaged, or stolen cargo
Cargo loss and damage are covered by cargo insurance — a separately required product that must also be maintained throughout your ARTRANS registration. Both the bond and cargo insurance are required; neither substitutes for the other.
Who Needs an SDDC Bond
Any TSP seeking to transport DoD freight must obtain an SDDC bond. This includes:
- Freight Carriers — motor carriers physically transporting military cargo
- Freight Brokers — intermediaries arranging DoD freight transportation
- Freight Forwarders — both surface and air freight forwarders
- Logistics Companies — third-party logistics providers handling DoD shipments
- Shipper Agents — agents arranging freight on behalf of shippers
Exempt carrier types: Local drayage carriers, commercial zone carriers, barge carriers, rail carriers, sealift carriers, and pipeline carriers are exempt from the SDDC bond requirement.
The intrastate exemption: The bond requirement does not apply to purely domestic intrastate movement — hauling DoD freight entirely within a single state without crossing state lines. Carriers operating exclusively near large military installations and accepting only local assignments that stay within state borders may not be subject to the requirement. Carriers planning to expand to interstate movement should bond before accepting any cross-border load, not after.
There is no “Open Season” waiting period. Some older guides and bonding resources state that carriers must wait for periodic “Open Season Registration” windows before they can register with the SDDC. This information is outdated. Registration through the Freight Carrier Registration Program (FCRP) is a rolling process — carriers can apply and register at any time. There is no enrollment calendar to watch and no seasonal window to wait for.
Bond Amounts by Carrier Type
The required bond amount depends on your TSP category, company size, and number of states in which shipments will originate and terminate. This last point matters: the states you select must cover both the pickup point and the delivery point of every shipment. A carrier bonded for Texas and Oklahoma cannot accept a load originating in Arkansas and delivering into Texas — Arkansas must also be covered.
Large freight carriers:
| States Served (Both Origin and Destination) | Required Bond |
|---|---|
| 1 state | $25,000 |
| 2–3 states | $50,000 |
| 4 or more states | $100,000 |
SBA-registered small carriers:
| States Served | Required Bond |
|---|---|
| Up to 3 states | $25,000 |
| Up to 10 states | $50,000 |
| 11 or more states | $100,000 |
SBA carriers using the smaller bond tiers must submit documentation of their SBA registration alongside their bond application. A carrier that qualifies for SBA rates but omits the supporting SBA documentation at the time of bond submission may be processed at large carrier rates — paying more than necessary. Verify your SBA registration is current at SAM.gov (the current federal contractor registration portal — CCR.gov, which some older guides reference, was decommissioned in 2012).
Brokers, forwarders, and logistics companies:
| TSP Type | Required Bond |
|---|---|
| Surface freight forwarders, air freight forwarders, shipper agents, brokers, logistics companies | $100,000 flat |
| Bulk fuel carriers | $25,000 flat |
Revenue-based option (carriers with 3+ years of DoD history): TSPs that have operated under their own name with DoD for three or more consecutive years may bond at 2.5% of their total DoD revenue for the prior 12 months. The minimum under this option is $25,000 and the maximum is $100,000. For high-volume carriers, this formula often produces a lower required bond amount than the state-based tier — calculate both figures before selecting your bond amount at renewal.
One bond per SCAC. Each Standard Carrier Alpha Code (SCAC) requires a separate SDDC bond. A company operating under two SCAC codes must maintain two bonds simultaneously.
Bond increases are possible during registration. If ARTRANS determines your required bond amount must increase — because your DoD revenue has grown, your service area has expanded, or the program requirements change — you will receive formal notification and have 30 days to submit a new, larger bond. Missing this window results in immediate registration suspension. Build an annual review of your DoD revenue against your current bond amount into your renewal process.
Cost of the SDDC Bond
You pay the surety company an annual premium — a percentage of your total bond amount. The premium is not the bond amount; it is the cost to obtain the bond for one year. Credit is the primary pricing factor, with personal credit of all owners holding 10% or more interest evaluated at underwriting.
| Credit Profile | Annual Rate | $25,000 Bond | $50,000 Bond | $100,000 Bond |
|---|---|---|---|---|
| Excellent (720+) | 1%–2% | $250–$500 | $500–$1,000 | $1,000–$2,000 |
| Good (650–719) | 2%–3% | $500–$750 | $1,000–$1,500 | $2,000–$3,000 |
| Fair (600–649) | 3%–5% | $750–$1,250 | $1,500–$2,500 | $3,000–$5,000 |
| Challenged (550–599) | 5%–8% | $1,250–$2,000 | $2,500–$4,000 | $5,000–$8,000 |
| Poor (below 550) | 8%–10% | $2,000–$2,500 | $4,000–$5,000 | $8,000–$10,000 |
Carriers with weaker personal credit who can provide strong business financial statements, documentation of liquid assets, or a documented track record of DoD performance may qualify for better rates than credit alone would indicate. Most applicants — including those with challenged credit — can be bonded; the variable is rate, not eligibility.
The bond premium is an annual expense. At each renewal, your credit is re-evaluated and the rate may change. Improved credit between issuance and renewal can reduce your premium. A claim on your bond record increases scrutiny at renewal and may result in higher rates or difficulty finding a willing surety.
The Complete SDDC Registration Process
The SDDC bond is one step in a multi-step registration process administered through the Freight Carrier Registration Program (FCRP). Every step must be completed before you receive ETA system access. The bond alone does not activate your registration.
Step 1 — Standard Carrier Alpha Code (SCAC) Apply at nmfta.org. The SCAC is a two-to-four letter identifier assigned to your transportation company. Cost: $68 online, $78 by mail. Processing takes one to three business days. Each company entity needs its own SCAC, and each SCAC requires its own bond.
Step 2 — U.S. Bank Syncada Enrollment Register with U.S. Bank Syncada (formerly PowerTrack) for electronic payment certification. This free enrollment enables you to receive electronic payment for DoD freight services.
Step 3 — DOT Operating Authority (3-Year Continuous) Maintain a valid DOT operating certificate for at least three consecutive years under your company’s name. Motor carriers need an MC number; freight forwarders need an FF number. ARTRANS verifies your operating history as part of its registration review.
Step 4 — CBA License Application (Brokers and Forwarders) Surface freight forwarders and freight brokers handling commercial bills of lading must complete the Commercial Bill of Lading Agent (CBA) license application to be authorized for DoD commercial freight documentation. This step is specific to these TSP types and is not required for motor carriers.
Step 5 — SDDC Bond / USTRANSCOM Performance Bond Apply for and obtain your SDDC bond through an authorized surety company. After payment, the surety files the bond electronically with ARTRANS — you do not need to submit or mail an original bond document. Processing typically takes 24–48 hours from payment to filing confirmation.
Step 6 — Cargo Insurance Obtain and maintain cargo insurance meeting ARTRANS minimums: $150,000 minimum for general freight carriers; $25,000 for bulk fuel carriers. Cargo insurance is a prerequisite for registration, not a post-registration requirement.
Step 7 — HAZMAT Certification (If Applicable) Carriers transporting hazardous materials must obtain HAZMAT certification through the Pipeline and Hazardous Materials Safety Administration (PHMSA). If your contracts will not involve hazardous materials, this step may not apply.
Step 8 — Section 889 Compliance Certification Certify compliance with Section 889(a)(1)(B) of the FY2019 National Defense Authorization Act, which prohibits use of telecommunications and video surveillance equipment from Huawei Technologies, ZTE Corporation, Hytera Communications, Hangzhou Hikvision Digital Technology, or Dahua Technology. Review your company’s phones, routers, and security cameras before certifying.
Step 9 — ARTRANS Registration Submission Submit your complete Freight Carrier Registration Package to ARTRANS. Approval notification is typically delivered within three business days of submission.
Upon approval — the ETA Password When your registration is confirmed and your bond has been accepted, ARTRANS issues an Electronic Transportation Acquisition (ETA) password. This password provides access to the DoD’s freight bidding and load management platform — the system where military freight opportunities are posted, competed for, and awarded. The ETA password is the practical outcome of the entire registration process. Without it, no military loads can be viewed, bid on, or accepted.
If You Also Operate as a Freight Broker
Carriers who both physically transport DoD freight and arrange transportation for other carriers are subject to two separate bond requirements:
SDDC/USTRANSCOM Performance Bond — administered by ARTRANS, filed through the FCRP, covering DoD freight performance obligations.
BMC-84 Freight Broker Bond — required by the Federal Motor Carrier Safety Administration (FMCSA) for all property brokers, $75,000 minimum, filed with the FMCSA.
These are separate products with separate obligees, separate filing systems, and separate annual renewal timelines. A carrier-broker must track compliance for both independently. Letting either lapse creates a compliance gap even if the other remains active.
How to Get Your SDDC Bond
Apply for your SDDC bond online with a surety agency that specializes in transportation bonds. The application takes minutes. Receive a quote — for most applicants with acceptable credit, a rate is returned immediately. Pay the premium— the annual cost based on your bond amount and credit profile. File — the surety company files your bond electronically with ARTRANS. No original bond document is required.
Swiftbonds issues SDDC bonds (ARTRANS/USTRANSCOM Performance Bonds) for freight carriers, brokers, forwarders, and logistics companies in all 50 states. After your bond is issued and filed, you can continue completing the remaining FCRP registration steps toward your ETA password.
Swiftbonds LLC
2025 Surety Bond Technology Provider of the Year
4901 W. 136th Street
Leawood KS 66224
(913) 214-8344
https://swiftbonds.com/
Frequently Asked Questions
What is the difference between an SDDC bond, a DoD performance bond, and an ARTRANS bond? They are all names for the same bond requirement. The program was administered under MTMC before 2004, under SDDC from 2004 to 2024, and is now under ARTRANS (U.S. Army Transportation Command). The official legal name of the bond is the USTRANSCOM Performance Bond. Any of these names in a registration document or bonding guide refers to the same product.
Is there a seasonal enrollment window to register for the SDDC program? No. Registration through the FCRP is a rolling process open year-round. Some older guides describe a periodic “Open Season Registration” requirement — this information is outdated and does not reflect current registration procedures. Carriers can apply and complete registration at any time.
How much does the SDDC bond cost each year? For carriers with excellent credit (720+), typically 1%–2% of the required bond amount annually. A $25,000 bond costs $250–$500/year; a $100,000 bond costs $1,000–$2,000/year. Carriers with poor credit may pay 8%–10%. Most applicants can get bonded regardless of credit profile.
Do I need to mail the original bond document to ARTRANS? No. Your surety company files the bond electronically. ARTRANS does not require an original bond document. You receive electronic confirmation once the bond has been accepted.
How long does the SDDC bond and registration process take? Bond issuance: 24–48 hours from payment for most applicants. ARTRANS registration review: approximately three business days after submission. Total timeline from application start to ETA password depends on how quickly each registration step is completed, but carriers who have all prerequisites in order typically complete the full process in one to two weeks.
What happens if my SDDC bond lapses? Immediate suspension of ARTRANS registration and ETA system access. You cannot bid on or accept new DoD loads until a new bond is submitted and accepted. Keep renewal reminders set at least 30–60 days before your annual expiration date. Your surety will notify ARTRANS of renewal upon payment — but only if payment is made before the expiration date.
I’m registered with the SBA. How does that affect my bond amount? SBA-registered carriers qualify for lower bond amount tiers than large carriers — for example, $25,000 for up to 10 states rather than the large carrier requirement of $100,000 for 4 or more states. To use SBA tier amounts, you must submit documentation of your current SBA registration alongside your bond application. Verify your registration status at SAM.gov before applying.
What is Section 889 and why does it matter for SDDC registration? Section 889(a)(1)(B) of the FY2019 National Defense Authorization Act prohibits federal contractors from using certain telecommunications equipment made by Chinese companies including Huawei, ZTE, Hytera, Hikvision, and Dahua. As part of ARTRANS registration, carriers must certify compliance. Review all company communications equipment, security cameras, and network infrastructure before certifying — a false certification creates liability under federal contracting law.
Conclusion
The SDDC bond is the gateway to the military freight market — a consistent, government-backed freight opportunity that rewards reliable performance with long-term registration access and steady load availability. Understanding the bond requirements, completing registration correctly the first time, and maintaining compliance every year keeps your ETA access open and your position in the market secure. For new entrants, the process is straightforward when tackled in order. For established carriers, staying ahead of bond renewals, revenue-based amount calculations, and documentation requirements keeps the market access you’ve already built.
5 Things About the SDDC Bond That Most Carriers Get Wrong
- The CCR.gov link on several bonding websites is a dead end — SBA registration is now verified through SAM.gov. Multiple surety websites directing SBA-registered carriers to verify their status and obtain documentation for reduced bond tiers still link to CCR.gov (the Central Contractor Registration portal), which was decommissioned in 2012 and replaced by SAM.gov (System for Award Management). Carriers who follow this outdated link will hit a dead page. SBA registration documentation for bond applications must be sourced from SAM.gov, where contractors can access their registration records, print registration summaries, and confirm their active status. If your surety agency asks for SBA documentation and you cannot locate it, SAM.gov is the correct source.
- The bond amount table has a different interpretation problem than most carriers realize: the states you list must cover both ends of every shipment, not just where you’re based. Carriers commonly assume their bond covers any load that starts in or ends in their covered states. The ARTRANS requirement is more precise: movements must begin and end within the states listed on your bond. A carrier bonded for two states cannot accept a load that originates outside those two states even if it delivers within them. This means carriers whose DoD freight regularly routes through gateway markets outside their primary operating region are systematically underbonded unless they bond at the four-plus state threshold. Review your actual freight patterns, not just your home state, before selecting your bond amount.
- Submitting a bond application without SBA documentation when you qualify for SBA rates is a costly oversight that most carriers only catch at renewal. SBA-registered small carriers who select the lower bond amount tiers — $25,000 for up to 10 states rather than the large carrier requirement — must submit proof of SBA registration alongside their bond application. Carriers who apply without this documentation are typically processed at large carrier rates by default, paying premiums on a $100,000 bond rather than a $25,000 bond. The difference in annual premium cost for a carrier with good credit is roughly $750–$1,500 per year. Carriers who discover this at their first renewal can correct it going forward by submitting SAM.gov registration documentation at that time.
- A claim on your SDDC bond is not just an expense — it’s a credential event that affects every future bond you try to obtain in any line of surety. Most transportation operators understand that a claim means paying back the surety for whatever it paid the government. Fewer understand that a paid claim creates a permanent record in the surety industry’s underwriting databases. Future surety applications — not just for SDDC bonds but for any bond — are evaluated against that history. Some sureties will decline to write any bond for a carrier with a prior claim. Those that will may charge rates that price the carrier out of practical participation in the military freight program. Carriers facing an imminent default situation are better served by immediate, transparent communication with their surety company — which has options to help — than by allowing a claim to proceed. The surety’s interest and the carrier’s interest align around avoiding a paid claim; both sides lose when one is processed.
- The bond amount can be reassigned mid-registration period if your DoD revenue grows — and the 30-day response window is shorter than most carriers expect. ARTRANS monitors registered carriers’ performance and can require a higher bond amount at any point during the registration year, not just at renewal. When this happens, the carrier receives a formal notification and has 30 days to submit a new, larger bond. Many carriers assume their annual bond amount is fixed until renewal and are caught off-guard by a mid-year notification. The practical defense is to track your DoD revenue against your bond amount throughout the year. If you’re operating at a $50,000 bond and your DoD revenue has grown to a level where 2.5% of revenue exceeds $50,000, a notification requiring a bond increase is likely — proactively requesting the larger bond before notification arrives is better than scrambling to respond within a 30-day window.
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