Military freight transportation contracts may sound appealing, but are they really what they’re made out to be? Here’s everything you need to consider when acquiring a military freight contract:
Why Is Military Logistics Different?
It’s not hard to see why military logistics differ from commercial logistics. Instead of hauling everyday items, you’re hauling government-owned goods. In most cases, these goods aren’t sensitive or dangerous, but they are still the government’s property and need to be treated with care and transported safely.
Even if the items being hauled don’t seem particularly important to you, they’re still part of a larger supply chain of transportation service providers that supports the entire military — so maintaining this supply chain is vital for safety and security reasons.
Service Level Expectations
Working on a military freight contract comes with certain service level expectations. After all, the military is depending on you to transport their property in a safe and timely manner. Since the stakes here are much higher than with commercial freight, the expectations are higher.
For starters, the military expects that large companies are able to keep high-value cargo safe and secure throughout the journey. Damaged or stolen goods are never a good thing — but these are particularly problematic issues when working with the military.
The military also expects that you’re able to transport the cargo promptly. And while the government itself can move slowly, they expect you to move quickly as you never know when the items will be needed.
Finally, the federal government expects that you’re able to work within the terms of your bid. This is why understanding your costs is so important. If you submit a low bid to win the contract but encounter extra costs along the way, the military won’t be very keen on paying you more than they initially agreed to.
Military Freight Contracts
Obtaining a military contract of any kind can be convoluted and confusing. However, military freight contracts come with a ton of requirements and regulations. So how can you apply for and win a military freight contract? Here’s what you need to know about the process from start to finish:
Step 1: Call For Proposals
First of all, the military will call for proposals from freight providers. Specifically, the Department of Defense or the General Services Administration will offer contracts. Many of these federal opportunities are listed on SAM.gov, where you can search specifically for freight contracts.
After meeting the proposal requirements, you will write up a competitive bid and wait to hear back.
Step 2: Evaluate Proposals
After the proposed closing date, all of the proposals will be evaluated based on various factors, including bid amounts, experience, and contract requirements. If you do not meet all of the requirements, you will be automatically rejected — so try not to waste their time or yours by applying for contracts you don’t qualify for.
Step 3: Select Winning Contractor
The Department of Defense will then select the winning contractor who submitted the most competitive bid based on the proposal evaluation. To submit a winning bid, it often helps to work with someone with military experience to help you draw up your bid in a way that makes sense to the Department of Defense.
Some companies contract out to these experts, whereas others employ them directly. No matter your approach, it’s always beneficial to have someone with inside knowledge and information on how the system works — especially one that can be quite intricate and confusing.
Step 4: Issue the Award Notice
Once the winning contractor has been selected, the government will issue an award notice on SAM.gov to increase competition, broaden industry participation, and assist small businesses with winning contracts and subcontracts.
How to Read a Contracting Notice
This contracting notice will include pertinent information related to the contract, including deadlines, requirements, expectations, guidelines, etc. It’s important to read through this contracting notice in its entirety so you can fully understand and meet everything that is expected of you.
Step 5: Award the Contract
The last step involves awarding the contract. This is when you can finally begin your work with military freight. After what can be a long and arduous process, it’s always exciting and relieving to begin working on the contract finally.
Throughout the contract, it’s important to keep in mind that the wheels of the government can turn quite slowly. This relates to everything from basic communication to getting paid. While it can be frustrating at times, it’s important to remain patient and keep the end goal in mind.
Subcontracting
Perhaps an easier way to work with military freight is to work as a subcontractor rather than a prime contractor. Prime contractors already have the certifications and qualifications necessary to work with the Department of Defense — and these don’t always come easy. At the same time, prime contractors often need additional assistance to get the job done — which is where you can help as a subcontractor.
When you work as a subcontractor, you’re able to save money on administrative overhead costs and the resources required to manage large contracts. You can also gain valuable experience as a subcontractor in this area that might come in handy should you decide to make the transition to prime contractor down the line.
If you’re looking for subcontracting opportunities, be sure to check out the SubNet database.
Your Rights as a Contractor
Being a military contractor comes with unique lists of both pros and cons. Even if you have decided that the pros outweigh the cons, you need to understand your rights as a contractor so that you can actually benefit from the work you’re doing.
Here’s a great resource regarding your rights as a contractor.
Conclusion
If you’re looking for military freight contracts for consistent work, you may also want to consider hauling for a logistics provider. Working with a logistics provider like RPM allows you to book loads fast and get paid faster — in less than 72 hours. We also offer top-notch carrier support 24/7/365, thanks to clear communications with a single point of contact.
RPM is always looking for reliable and professional carriers to help us manage thousands of shipments a day.
Sources:
Contract Opportunities | SAM.gov
Subcontracting Network (SubNet) | Small Business Administration
A Guide to Labor and Employment Obligations for Federal Contractors | The National Law Review
