Preparing for CSA Interventions

1. Attention Attendees: • Thank you for attending! • The presentation will start in a few minutes at 1:00 PM Central. • Please use your computer speakers to listen to the event. If you have audio issues, dial-in info is below. • You will be muted during the event. • Please use the Question feature to text questions to “Q & A”. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • The slides and recording will be posted within 7 days at: http://www.jjkeller.com/nptcinfo Preparing for CSA Interventions This webcast will cover ... CSA Interventions, Safety Management Cycle and Best Practices, Meijer’s Program, Question & Answer Moderator Dr. Gary Petty, President & CEO, NPTC Panelists Tom Bray, Editor – Transportation Management, J. J. Keller & Associates, Inc. Tom Moore, Vice President of Education, NPTC Carol Heinowski, Private Fleet Manager, Meijer Inc.

2. Dr. Gary Petty President & CEO National Private Truck Council

3. Introduction • CSA Interventions – Tom Bray • Safety Management Cycle and Best Practices – Tom Moore • Meijer’s Program – Carol Heinowski • Housekeeping issues: • You will be muted during the event. • Please use the Question feature to text questions to the Q&A Panelist. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • If you lose sound at any point, you can dial-in by phone using the number and Pass Code listed below. • If you lose the program window and need to re-loginbe sure to enter a different e-mail address to avoid being denied access for multiple logins. Gary Petty National Private Truck Council

4. Introduction and Disclaimers • The content in this webcast is intended for information purposes only and should not be construed as providing legal advice. • This is an introductory course and is intended to highlight critical safety and compliance topics. Time constraints limit our ability to go in depth. • We invite you to ask questions. We will answer them throughout today’s webcast. Gary Petty National Private Truck Council

5. Why Are We Here? • Over 50,000 carriers are over the threshold in at least one BASIC • Most have received a warning letter, an investigation, or are on the “Investigation List” • Exception is carriers that were previously warned or investigated • Compare this to “old system” (12,000 to 16,000 carriers a year contacted total) Gary Petty National Private Truck Council

6. Tom Bray Editor, Transportation Management J. J. Keller & Associates, Inc.

7. Why Carriers are Investigated • CSA • Complaint investigation • High crash rate • Involvement in a serious crash(es) • Follow-up • New Entrant Audit Tom BrayJ. J. Keller & Associates, Inc.

8. CSA Intervention Process • In CSA process, being over the threshold places the carrier in the “Alert” status and starts the intervention process • Based on FMCSA policy, not regulations • Drivers, too, but only in relation to a carrier investigation Tom BrayJ. J. Keller & Associates, Inc. • INTERVENTION • Early Contact • Warning Letter • Carrier Access to Safety Data and Measurement • Targeted Roadside Inspection • Investigation • Offsite Investigation • Onsite Investigation – Focused • Onsite Investigation – Comprehensive • Follow-on • Cooperative Safety Plan • Notice of Violation • Notice of Claim • Operations Out-of Service Order

9. Early Contact Interventions • “Warning letter”: Carrier notified via warning letter • “Targeted roadside enforcement” - Carrier’s ISS recommendation changed to “Optional” or “Inspect” if over threshold in any BASIC Tom BrayJ. J. Keller & Associates, Inc.

10. Warning Letters Issued by Month in 2011 Tom BrayJ. J. Keller & Associates, Inc.

11. Warning Letter Issuance Top 10 States for 2011 Tom BrayJ. J. Keller & Associates, Inc.

12. Investigative Interventions • Focused Off-Site • Focused On-Site • Comprehensive • In all cases: • Notification and request for documents starts process • Investigator looking for violations • Investigator also checking carrier’s Safety Management Controls (policies, procedures, responsibilities, accountabilities, qualifications processes, training, internal tracking, corrections, etc.) Tom BrayJ. J. Keller & Associates, Inc.

13. Investigative Interventions • Which records will they ask for? • Drivers that have been • Involved in crashes • Placed out of service or received violations on the road • Recently hired • Top performers (most miles or hours) • Vehicles that have been • Involved in crashes • Placed out of service or received violations on the road Tom BrayJ. J. Keller & Associates, Inc.

14. Investigative Interventions • “Focused” reviews (on and off-site): • Based on BASIC(s) the carrier is above the intervention threshold • Example: Fatigued Driving will lead to check of “General” audit components and “Operational” audit components (this includes scheduling and hours-of-service compliance) • Off-Site Safety Investigators requests records be sent to them • On-Site Safety Investigator comes to carrier’s location Tom BrayJ. J. Keller & Associates, Inc.

15. Investigative Interventions • “Comprehensive” review • Full and complete audit • All six factors are examined (General, Drivers, Operational, HazMat, Vehicles, and Accident Rate) • This is the only intervention that can lead to a “Safety Rating” (Satisfactory, Conditional, Unsatisfactory) Tom BrayJ. J. Keller & Associates, Inc.

16. 6 Factors • Factor 1 - General: • Part 387 Financial Responsibility, Part 390 General Compliance • Factor 2 - Driver: • Part 382 Drug and Alcohol, Part 383 CDL and 391 Driver Qualifications • Factor 3 - Operational: • Parts 392 Safe Operations, Part 395 Hours of Service Tom BrayJ. J. Keller & Associates, Inc.

17. 6 Factors • Factor 4 - Vehicle: • Part 393 Parts and Accessories, Part 396 Inspection and Maintenance • Factor 5 - Hazardous Materials: • Parts 171, 177, 180, and 397 • Factor 6 - Accident: • Recordable Accident Rate per MM Upon completion of full audit carrier will receive a “Rating” (Satisfactory, Conditional, or Unsatisfactory) based on violations discovered in the six factors Tom BrayJ. J. Keller & Associates, Inc.

18. Investigative Interventions • All states are now conducting Focused On-Site Investigations • 10 states conducting Focused Off-Site Investigations (more to be added as IT upgraded and training completed) • All FMCSA offices now using Safety Management Cycle to check carrier’s Safety Management Controls Tom BrayJ. J. Keller & Associates, Inc.

19. Investigative Intervention Scoring • Investigation cannot improve BASIC Score, but can “flip” a BASIC to “Alert Status” regardless of calculated score • Based on violations of serious regulations discovered during investigations and audits • One “very serious” violation or a pattern of “other serious violations” Tom BrayJ. J. Keller & Associates, Inc.

20. Follow-up Interventions • Used if a problem is found • Cooperative Safety Plan • Notice of Violation • Notice of Claim • Settlement agreement • Unfit suspension: Carrier declared “Unsatisfactory” following Comprehensive Review and fails to make necessary corrections and/or settle Notice of Claim Tom BrayJ. J. Keller & Associates, Inc.

21. Which Intervention? • The interventions are NOT used in order, the specific intervention will depend on: • Which BASIC(s) the carrier is over • How far over the threshold the carrier is • How many BASICs the carrier is over the threshold • Enforcement history (if the carrier has already been intervened with…) • If carrier has no BASIC over the threshold, intervention is unlikely • However, carrier should still look to improve their “worst” BASIC(s) to avoid future problems Tom BrayJ. J. Keller & Associates, Inc.

22. Tom Moore, CTP Vice President of Education National Private Truck Council

23. NPTC Member Poll:What is the highest level of FMCSA intervention faced by your fleet? Tom MooreNational Private Truck Council

24. Safety Management Controls From Part 385: Safety management controls means the systems, policies programs, practices, and procedures used by a motor carrier to ensure compliance with applicable safety and hazardous materials regulations… To reduce the risk of highway accidents and hazardous materials incidents resulting in fatalities, injuries, and property damage. Tom MooreNational Private Truck Council

25. Safety Management Cycle Tom MooreNational Private Truck Council

26. Phase 1: Policies and Procedures • Policies • Clear, concise, simple and straightforward • Actionable and measureable • Should exceed federal regulations • Procedures • Support policies by detailing what will be done and how • Include the process, validation and metrics • Checklist for ensuring effectiveness • Confirm consistency with other policies/procedures • Communicate to all affected personnel • Conduct implementation and refresher training • Routinely verify compliance Remember: You’re not judged on the plan. You’re judged on implementation and outcomes. Tom MooreNational Private Truck Council

27. Phase 2: Roles and Responsibilities • Assign people to implement the policies and procedures and document assignments • Everyone needs to know their roles and responsibilities within each safety program • Don’t forget to assign someone to verify policy implementation and compliance Tom MooreNational Private Truck Council

28. Phase 3: Qualifications and Hiring • Getting the right person into the right job • Robust system for qualifying applicants • Job descriptions critical component • Structured hiring process with standards This applies to all positions related to safety, not just drivers! Tom MooreNational Private Truck Council

29. Phase 4: Training and Communications • Three training components: initial (a.k.a. “orientation”), ongoing, and remedial • Orientation should target all new hires and should cover your policies, expectations, equipment, paperwork • Ongoing should focus on fleet-level areas for improvement and should be data driven • Remedial should focus on individual employee issues, should be corrective in nature and must stress accountability • Communications • Keeps everyone focused on safety and compliance between training sessions • Communication is the key to building a safety culture! Tom MooreNational Private Truck Council

30. Phase 5: Monitoring and Tracking • What gets measured gets fixed! • Measuring shows what needs to be fixed • Data sources: • FMCSA data • In-house data (OBC, Scorecards, Studies, Monitoring, etc.) • Tracking Metrics • DOT recordable crashes • ALL crashes and incidents, no matter how minor (including near-misses and complaints) • ALL roadside inspections and violations • Out-of-service violations • ALL injuries Tom MooreNational Private Truck Council

31. Phase 6 Meaningful Action Tom MooreNational Private Truck Council

32. Carol Heinowski Private Fleet Manager Meijer, Inc.

33. Meijer, Inc. Fleet Operations • Fleet profile • 155 Power Units • 2,000 Trailers • 240 CDL Drivers • 17+ million miles • Network • 4 Distribution facilities • 2 Manufacturing facilities • 199 stores Carol HeinowskiMeijer, Inc.

34. Know Your DOT Data • SAFER • safer.fmcsa.dot.gov/CompanySnapshot.aspx • Carrier census information • Inspection OOS rates compared to National Averages over last 24 months • Carrier crashes over last 24 months • Carrier Safety Fitness Rating • Flag if Carrier is Prohibited from Operating Carol HeinowskiMeijer, Inc.

35. Know Your DOT Data • Safety Measurement System (SMS) • ai.fmcsa.dot.gov/SMS/ • Carrier census information • 36 months of inspection, intervention and crash data (including identification of serious violations) • BASIC percentile rankings and over threshold notice • Data download functionality • Informational materials on improving BASIC percentile rankings • Compass Portal • portal.fmcsa.dot.gov • Daily, un-scored roadside inspection and crash data • Access to other FMCSA sites Carol HeinowskiMeijer, Inc.

36. SAFER Screenshot – Access to Company Snapshot Carol HeinowskiMeijer, Inc.

37. SAFER Screenshot – Company Snapshot Carol HeinowskiMeijer, Inc.

38. SMS Screenshot – Login Carol HeinowskiMeijer, Inc.

39. SMS Screenshot – Login Carol HeinowskiMeijer, Inc.

40. SMS Screenshot – Percentile Rankings Carol HeinowskiMeijer, Inc.

41. Portal Screenshot – Login Carol HeinowskiMeijer, Inc.

42. Portal Screenshot – Inspection Data Access Carol HeinowskiMeijer, Inc.

43. Challenge Inaccurate Data through DataQ’s • Access DataQ’s from the SAFER website, the SMS website or at: https://dataqs.fmcsa.dot.gov/login.asp • Challenges are reviewed by the state that entered the data, with federal oversight. • 65% of challenges are successful • Can appeal to state motor carrier safety office if you do not like the results of a challenge. Carol HeinowskiMeijer, Inc.

44. Challenge Inaccurate Data through DataQ’s • Don’t bother with challenging non-preventable accidents--they will not be removed. • Submit additional documents to back up your claim. • Remember, that CSA data is available to the public, so get the bad data off of your record! Carol HeinowskiMeijer, Inc.

45. DataQs Screenshot – Challenge List Carol HeinowskiMeijer, Inc.

46. Internal Auditing • Start with areas that you have a high CSA score, and/or serious violations that could lead to accidents • Then go back and look at company policies and procedures that address all areas of the FMCSR’s. • Note – only one policy is required by regulation (Part 382 – Drug & Alcohol Testing), but DOT will look for management controls via your internal policies and procedures to ensure compliance. Carol HeinowskiMeijer, Inc.

47. Internal Auditing – Part 382 • If you are struggling in this area, the best practice is to use a 3rd Party consortium • Random drug and alcohol testing • MRO Services • Some may help with required training and policy • Meijer is large enough that we have an HR Department that runs our D&A program; however, as the Fleet Manager, I make sure to stay on top of it to ensure my drivers are in compliance. Carol HeinowskiMeijer, Inc.

48. Internal Auditing – CDLand Medicals • Don’t assume that the drivers will remember to renew their medicals and CDL’s on time. • You are responsible for their compliance. • Have a “tickler” file to notify you of expirations. • Meijer has two systems: • A 3rd party online system notifies us of expirations • Our dispatch system also does 30-day notifications and will not allow a dispatcher to assign a trip to a driver that still has an expired medical or CDL. Carol HeinowskiMeijer, Inc.

49. Internal Audit – DQ Files • Run MVR’s and annual reviews at the same time each year. • Meijer utilizes a 3rd party system – all DQ documents are scanned into the program allowing for easy reporting of incomplete files and upcoming expirations. Carol HeinowskiMeijer, Inc.

50. Internal Audit – Hours of Service • First and foremost – the Safety and Operation departments HAVE to be on the same page. • Safety and Compliance has to come from the top. • Focus on critical violations first – then worry about form and manner. • Electronic logs – • Our logbook violations went to zero • False logs become a thing of the past • Weekly audits take 2 minutes Carol HeinowskiMeijer, Inc.