I'm interested in becoming an approved carrier for DOD, GSA, etc. I have done a lot of research, but I'm unable find current rates for freight. Can anyone with some experience in these types of contracts provide any rates. I'm more interested in Flatbed and RGN loads.
Any help is appreciated. Thanks.
DOD and GSA
Discussion in 'Ask An Owner Operator' started by RFI, Nov 8, 2011.
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To provide a little background.. I previously worked with a large HHG Company in the DC area and they did very well with GSA and DOD rates for household goods. I was just wondering if it was the same case on the freight side of the business?
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I have a friend that does this. Spot bids are where the money is, as well as location, location, location. Most of the government freight I see pays a little less than the open market, and this is direct freight pricing. I rarely haul. gov loads unless they were spot bids.
RFI, BigBadBill and Winchester Magnum Thank this. -
Most of the flat and RGN loads for the goverment go thru Menlo, part of Conway.
RFI Thanks this. -
Really it's about half and half. Some bases will be Menlo and some SDDC. For example Warner Robins AFB, part of it goes through menlo and another part uses the SDDC system. We are set up with both. Menlo was a p.i.t.a. to get set up and was totally worthless to us. You stand a better chance of getting freight through the SDDC. Rates will vary by the base, some are lowest bidder and some are who you know. It is a little bit of a process to get set up with the SDDC as a carrier or broker. You'll need to get a SCAC code first and before everything is done you'll be spending anywhere from a thousand to two on a performance bond depending on how many states you want to haul in.
RFI Thanks this. -
DOD is definitely the direction I would like to head in. As you already pointed out Grumman, the paperwork (registration) is a p.i.t.a., but I think I stand a better chance of getting some work.
I will have a set-aside SDVO, so hopefully it will help me as far as getting my foot in the door for some of the smaller contracts.
@Grumman- What type of freight did you typically haul for DOD? -
I have hauled a couple loads for the same broker - military. It paid well. All this guy does is loads for a couple different bases. Nice thing is that he knows a week out so if he has a load in NM I can find something down at a good rate and know I have the solid reload back.
RFI Thanks this. -
Thanks for the post. At this point I'm actually trying to decide whether it's a better idea for me to just get a broker authority rather than trying to hit the road at 100mph with a huge truck payment and all the other expenses associated with a new trucking business.
I would like to be in the drivers seat, but it seems like a financial nightmare if you don't have some established accounts from day one. Some of the rates guys post here are just scary. I think running for less than $1.80 or so for an O/O is just setting yourself up for failure. Even if your truck is paid off, you still need to purchase the next one. I scratch my head when I see guys post that their operating costs are low because they paid off their truck.
I gotta give it to you Bill. It seems like you are one of the few who actually know how to run a profitable business.BigJohn54 Thanks this.
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