Bond Requirement for Military

Bond Requirement for Military

These are sad times when moving companies who want to work for the military, but only in the household goods movement area, are required to have a bond in place for $75,000. This is a requirement based on the Federal Motor Carrier Safety Administration.  A motion, which was trying to procure exemption from this requirement, has failed.

What it means to businesses and the military is price increases and potential job losses, as many companies are less able to afford the bond premium. The bond is a requirement for the companies to comply with the regulations surrounding the FMCSA license, which they need to hold to operate legally.

If a company fails to produce this bond, they then face not being allowed to work in the DoD program. The problem that many people see is the lack of benefit that it offers the company; it is there for protection of the forward freight movers; for those who purely move household goods, the need for the bond is non-existent and puts financial strain on the company.

The result of not allowing exemption for the companies that work in the household goods area will increase pressure, leading to increased costs that the military will need to accept for burdening these costs onto businesses that can least afford such high bond money.

A lawsuit currently in the courts is looking to allow companies exemption from this bond; the outcome of this legal wrangling awaits conclusion; many in the moving industry are waiting for the legal outcome, meaning more exemptions for businesses, allowing them to grow and not to become stagnant in this changing economic climate.

It is important that, if you are considering venturing into this area of removals, then finding the bond money could mean the difference to securing a contract, or losing work.