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How To Get Government Freight Contracts

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Who Is Your Ideal Shipping Client

Government Trucking Contracts How You Can Get Involved As A Small Business

There is one step you must take before you start looking for shippers. You have to figure out who is the right shipper for your trucking company. This step seems obvious to many truckers. After all, everyone recognizes a good trucking contract. Perhaps. But you will have a better chance at finding and negotiating your trucking contracts if you spend some time defining your ideal shipper. Here are some of the traits of a good shipping client:

  • Established shipper
  • Gives you loads in the lanes you drive
  • Has reasonable expectations
  • Understands that quality and reliability come at a cost

Keep in mind that there is no such thing as a perfect client. But if you look strategically, you should be able to find clients who come close. Finding good reliable shippers that give you regular trucking contracts is the best way to make a successful trucking company.

Join Industry Groups And Associations

Looking for another good way to build your network and get contracts? Connect with other industry folks.

  • Join trucking associations. Check out the American Trucking Associations, Owner-Operator Independent Drivers Association, or National Association of Independent Truckers. This can lead to referrals from other drivers or potential contracts from shippers or brokers.
  • Become a member of industry groups that your clients and prospective clients belong to. This can put you in direct touch with companies that might require your services and equipment.

Becoming an association member helps you improve your visibility within the industry. This, in turn, can lead to more contracts.

Government Rate Tenders Under Sections 10721 And 13712 Of The Interstate Commerce Act

This section explains statutory authority for common carriers subject to the jurisdiction of the Surface Transportation Board to offer to transport persons or property for the account of the United States without charge or at “a rate reduced from the applicable commercial rate.” Reduced rates are offered in a Government rate tender. Additional information for civilian agencies is available in the Federal Management Regulation and for DoD in the Defense Transportation Regulation .

Reduced rates offered in a Government rate tender are authorized for transportation provided by a rail carrier, for the movement of household goods, and for movement by or with a water carrier in noncontiguous domestic trade.

For Government rate tenders submitted by a rail carrier, a rate reduced from the applicable commercial rate is a rate reduced from a rate regulated by the Surface Transportation Board.

For Government rate tenders submitted for the movement of household goods, “a rate reduced from the applicable commercial rate” is a rate reduced from a rate contained in a published tariff subject to regulation by the Surface Transportation Board.

For Government rate tenders submitted for movement by or with a water carrier in noncontiguous domestic trade, “a rate reduced from the applicable commercial rate” is a rate reduced from a rate contained in a published tariff required to be filed with the Surface Transportation Board.

47.104-1 Government rate tender procedures.

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Find An Office Of Small And Disadvantaged Business Utilization

Many federal agencies have an office that helps small businesses search and compete for contracts with that agency. These offices are known as either:

  • Offices of Small and Disadvantaged Business Utilization

  • Or Offices of Small Business Programs

They may hold informational trainings and outreach events. Or, they may provide contact information for businesses to use to ask questions about contracting with their agencies.

How To Find Shippers Who Pay Well

Live Webinar, How to Respond to RFQs/RFPs for State and Federal ...

Now that you know who your perfect shipper is, you need to find them. The tried-and-true way to find clients is to go to the places where they congregate.

For example, you can often find good clients by joining industry associations with local chapters in your area. By the way, we are not talking about trucking associations. There are no clients there only competitors. We are referring to industry associations that your ideal clients belong to. That is where your business growth can come from.

Some examples

For example, if you are interested in getting potential retail store clients, find a local association of retailers and see if you can join them. On the other hand, a trucker looking for reefer loads has a good chance of finding solid clients by going to produce markets or wholesalers.

Lastly, if you want to move cars, explore joining organizations that represent auto dealerships. You get the point. Almost every industry has an association or a place where they gather. That is the place to be. Since few truckers actually take this step, you will have an advantage over competitors.

You dont need to focus on the common industries either take some time and examine which local industries could use your services and are under-served. Focus on those industries that is where you have the opportunity to get the highest shipping rates.

A tip about industry associations

Once you have the list of prospects, the real work begins.

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Historically Underutilized Business Zones

In the full and open competition, HUBZones certified businesses receive a ten percent price evaluation preference. Aside from being qualified to compete for a particular contract, HUBZone can also compete for agreement through other-socio economic programs.

As long as a small business qualifies, there is no limit on how long it can participate in HUBZone small business programs. However, small businesses must recertify for the HUBZone small business program once a year and take a program examination every three years.

Meanwhile, the Small Business Administration may surprisingly visit a historically underutilized business zone businesses and conduct examinations to make sure that all information submitted for the program application or recertification process is accurate.

Factoring For Fema Loads

Trucking demand is high for months when a natural disaster occurs. Delivering loads for FEMA can be a little more challenging than normal. Depending on which state you are traveling to, some are better prepared than others.

Its important for truckers to be patient when delivering loads to these areas while waiting for instructions. Delivery sites are often crowded with other trucks trying to drop off supplies and sometimes it wont seem as if anyone knows the proper instructions.

Hauling loads for disaster relief will not only earn you a paycheck but will help out those in need during these difficult times.

Government agencies are slow-paying and even if youre working through a broker, payment for loads will still be slow. This is why invoice factoring is a great option for truckers looking for a boost in cash flow when working with government contractors.

Factoring government transportation contracts also guarantees a strong cash flow without any debt. It doesnt matter if you have bad credit history or are just starting out, factoring is flexible and tailored to your trucking businesses specific needs.

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Florida Ptac Helps Magellan Transport Logistics Obtain Government Contracts

Magellan Transport Logistics is a Service-Disabled Veteran-Owned Small Business with headquarters and a logistics control tower located in Jacksonville, Florida. Magellan and their No Shipment Left Behind culture was founded by Tom Piatak in 2006. Tom graduated from West Point in 1987 and served with the combat engineers during Operation Desert Storm.

Magellan quickly became a leader in supporting the vast transportation needs their clients by recruiting some of the most talented leaders and logistics professionals in the industry20% of their employees are U.S. Military Veterans. With best in class service, driven by a team of people dedicated to an unsurpassed commitment to excellence, Magellan Transport Logistics offers a complete logistics solution to their customers transportation needs. Their services include local and long-distance trucking, LTL, intermodal, air freight, warehousing, and supply chain management.

Recognizing that many government agencies purchase freight transportation services, Justin Kane, Magellans Director of Strategic Capture, contacted Don Zavesky, a Procurement Specialist at the Florida Procurement Technical Assistance Center at the University of North Florida , to explore potential sales opportunities in the government marketplace.

Additional recognitions:

Starting A Trucking Business: Obtain Clients

How To Get Registered For Federal Government Contracts

The trucking industry is a highly competitive, demanding business, and trucking business owners need to be proactive in finding customers. If you’re an owner, check online bidding sites for available accounts and contracts. A number of sites focus on contract bidding.

In many cases, the owner who offers the lowest bid lands a contract. Although it won’t result in a lot of profit, bidding low is usually best for startups. Other avenues for finding clients and contracts include placing classified ads.

Remember that no matter how great your fleet is, making your clients happy is very important. Satisfied clients often recommend quality trucking companies to people they know. This is why it’s vital to provide the best service you can during all phases of transport before, during, and after the job.

In addition, when clients receive excellent service, they’re much more likely to come back to you.

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Types Of Government Contracts For Small Business To Help You Grow

The United States government is known to be the worlds largest buyer of products and services. From a tiny piece of a paperclip to the huge types of machinery, the federal agencies purchase almost everything even research and technical assistance.

However, the federal government does not purchase anything without a concrete process and preferential consideration. That is why the federal procurement data system is brought to life!

A business or enterprise that successfully sell their companys products or services is enlisted as one of the prime contractors. But the question is, is anyone eligible to be part of the contracting community?

Yes! whether large or small business, as long as they provide the needs of the procuring federal agencies they are qualified to work with any government agency.

If you are reading this, you probably own a small business and wondering whether you can win any government contract. Make sure you read along because you are about to learn the government contracts for small businesses and how to win your first government contract.

  • Complete your SBA profile
  • Types Of Government Transportation Contracts For Disaster Recovery

    There are tons of government agencies that exist and trucking companies can be hauling freight for anyone of them when it comes to disaster relief. If truckers want to pick up government contracts during these desperate times, they should look into bidding on transportation contracts within the following agencies:

    • FEMA
    • Department of Health and Human Services
    • National Guard
  • Contact
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    Source Directly From Local Shippers

    Sourcing directly from shippers in your area isnt always possible, but it is an option. If you can form relationships with shippers, you wont have to split your profits with a broker or pay anyone else to find loads for you, reducing your operating expenses.

    It can be challenging to find shippers who dont contract out consistent lanes with established carriers and companies. If possible, use your professional network to find opportunities with nearby shippers. You may have to bid against other drivers to get opportunities in some cases.

    Broker Your Own Loads

    Webinar Replay  How to Find and Bid on Government Contracts  The ...

    After doing all of the above are you still having a hard time solving how to find loads to haul? It might be time to think about becoming a freight broker to broker your own loads. This is probably the most complex way to find loads for trucking and the lead time is substantial. You will need to train to be a broker, either with an established broker or by taking some classes. The payoff of being your own broker could be huge but it might not be a gamble youre comfortable with.

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    Dynamic Small Business Search

    Dynamic Small Business Search is one of the free-to-use and secure websites that Small Business Administration maintains, which stores and display small business profiles registered with System for Award Management . It also provides access to a list of federal contracts reserved for small businesses.

    How To Obtain A Government Contract For Your Transportation Company

    Posted byAaron Zahedani on Wed, Oct 14, 2020 @ 08:00 AM

    There are many benefits to working with the federal government, such as guaranteed payment and no shortage of work, but it is not always easy to get started. So how should your trucking company go about obtaining government contracts?

    We know that the government requires the services of transportation companies to haul a multitude of specialist items, from tanks to vital supplies and everything in between. Some of these items need security clearance, so bear in mind that if you are not already cleared to carry weapons and ammunition the process for this specific type of transportation work can be long and involve plenty of paperwork.

    Many contracts can be found through two government departments, the General Services Administration, which organizes much of the shipping for the executive branch, and the Department of Defense. Additionally, Sam.gov is part of the General Services Administration, and enables a search of active federal opportunities. Not all of the contracts listed on the DOD or Sam.gov websites are relevant to transportation, but a quick look can determine those that fit the bill.

    Editor’s note: Because government contracts for transportation firms continue to be big business, an earlier version of this blog from 2015 was updated in 2020 for accuracy and to reflect new information.

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    Standard Tender Of Service

    The GSA standard tender of service serves as the base document for the transportation of freight-all-kinds shipments by federal civilian agencies and other eligible organizations utilizing the services of GSA Freight Management branch.

    The STOS is comprised of three parts:

  • GSA No. 2, Freight STOS establishes carrier approval requirements, solicitation and submission of rate offer procedures, performance requirements, service standards, and non-use procedures
  • GSA No. 200, Uniform Rules Tariff describes all accessorial and rule tariffs
  • GSA Baseline Rate Publication No. 1000-D describes all carrier and bureau line haul tariffs
  • Rate offers for the transportation of FAK shipments, solicited and accepted in accordance with the STOS, provides federal civilian agencies and other eligible organizations with the most economical and responsive transportation rates and services.

    Lease On With A Company

    Government Trucking Contracts, FREE buyers guide link in show notes

    Leasing on with a trucking company that needs additional capacity can be an excellent way to move from being a company driver to an owner-operator. In this arrangement, you own your authority, but the company is responsible for finding your next load. They may even cover some expenses for you, such as fuel and insurance.

    There are some downsides to this arrangement. You dont have as much independence as the company will tell you the days and times you have to work. Youll have to take loads from the company, which can also limit your ability to earn money elsewhere, and youll need to agree to their payment terms. It can still be a more reliable way to find loads, especially if youre starting as an owner-operator.

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    Transportation Payment And Audit Regulation

    47.103-1 General.

    Regulations and procedures governing the bill of lading, documentation, payment, and audit of transportation services acquired by the United States Government are prescribed in 41 CFR part 102-118, Transportation Payment and Audit.

    For DoD shipments, corresponding guidance is in DoD 4500.9-R, Defense Transportation Regulation, Part II.

    Under 31 U.S.C. 3726, all agencies are required to establish a prepayment audit program. For details on the establishment of a prepayment audit, see 41 CFR part 102-118.

    The agency designated in paragraph of the clause at 52.247-67shall forward original copies of paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents as soon as possible following the end of the month, in one package for postpayment audit to the General Services Administration, Transportation Audit Division , Crystal Plaza 4, Room 300, 2200 Crystal Drive, Arlington, VA 22202. The specified agency shall include the paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents for first-tier subcontractors under a cost-reimbursement contract. If the inclusion of the paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents for any subcontractor in the shipment is not practicable, the documents may be forwarded to GSA in a separate package.

    The name and address of the specified agency

    The name and address of the contracting office

    47.103-2 Contract clause.

    Define Your Ideal Client

    Not every client category will fit a trucking company. Certain clients are best suited for small trucking contracts. On the other hand are large clients such as major companies or governments. These usually outsource their logistics needs to independent trucking services.

    In defining your ideal client, you want to look at important aspects of the job. Such may include finding out if such a client will need your services regularly.

    Other things youll need want to know is if the pay is good, having a client whos not so fixated on getting the cheapest rate and also clients who value service.

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