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DISA empowers companies with the information and tools they need to make the right employment decisions for their business. We combine innovative technology solutions with industry-leading testing methodologies to make employee screening faster and more accurate for our clients.

KEY GROWTH AREASEmerging Trends and Methodologies

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Faster, better, smarter. That’s how successful companies work and what DISA works to provide.

In 2016, DISA followed a profit and growth strategy that continues to drive year-over-year performance. Our financial profile was again characterized by a strong balance sheet, and our new sales exceeded budgeted forecasts. Our company’s performance in 2016 was directly related to excellent volume and revenue outcomes, which were the product of client, program and geographic expansion.

ORAL FLUID TESTING DISA’S Oral Fluid Consortium (DCCOF) was created in mid-2015. In that year, this emerging trend in alternative testing was responsible for nearly 200 client policy additions and over 7,000 tests.

In 2016, over 700 policies were added and we conducted more than 27,000 oral fluid tests. The rapid expansion of this consortium makes oral fluid testing DISA’s fastest growing consortium program.

HAIR TESTING Established in 2008, DISA’s Hair Testing Consortium (DCCHT) provides another form of testing that offers near-term drug detection. Hair testing continues to be a growing trend in the drug testing industry and is currently the most widely used alternative testing methodology among our clients.

BACKGROUND SCREENINGDISA’s Background Screening Consortium was created in 2002. Backgrounds have become an important and popular screening method for employers, and is DISA’s second largest service line behind drug testing.

NEW POLICY REVENUE TOTALSNEW SERVICE POLICY ADDITIONS

2016 vs 2015Increase in Orders

2016 vs 2015 Increase In Product Orders

7418 $10.1 MM7007 $8.1 MM

Year-Over-Year increase Year-Over-Year increase

2015 20152016 2016

6% 25%

18%

39%

69%2016 vs 2015Testing Growth

Holly Frontier Cheyenne Cheyenne, WY 164

Holly Frontier El Dorado El Dorado, KS 213

Holly Frontier Woods Cross Woods Cross, UT 340

Holly Frontier Tulsa Tulsa, OK 320

Monsanto Luling, LA 286

Celanese Bishop Bishop, TX 207

Delek Tyler, TX 180

Chalmette Chalmette, LA 296

Shell Puget Sound Anacortes, WA 54

Shell CRI Martinez Martinez, CA 41

Shell Criterion Pittsburg Pittsburg, CA 40

Cheniere Houston, TX 184

Shell Martinez Martinez, CA 162

Shell Deer Park Houston, TX 184

Shell Pipeline, T&S, Lubricants Wilmington, CA 34

Valero Ardmore Ardmore, OK 146

Valero Meraux Meraux, LA 268

Valero St. Charles Norco, LA 268

Valero Diamond Green Diesel Norco, LA 119

Shell Congo River Rouge River Rouge, Michigan 4

Shell CRI Michigan City Michigan City, IN 14

Shell Geismer Geismer, LA 102

Shell Mobile Mobile, AL 19

Shell Port Allen Port Allen, LA 44

Shell Motiva Convent Convent, LA 307

Valero Benecia California 139

Valero Corpus Christi Texas 171

Valero Houston Texas 257

Valero McKee Texas 168

Valero Memphis Texas 131

Valero Texas City Texas 424

Valero Three Rivers Texas 144

Valero Wilmington California 118

Valero Memphis Tennessee 131

Chevron Phillips-Sweeney Texas 36

Olin, Blue Cube Operations, LLC Louisiana 42

EP Energy Houston, TX 25

WHAT IS THE DCC?The DISA Contractors Consortium (DCC) manages the multitude of workplace screening requirements that contractor companies must meet to work at safety-focused worksites across the Energy Sector. The DCC manages reciprocal policies and programs around the special requirements of various owners, operators, safety councils or federal regulatory agencies. This unique ability reduces job-hopping and mitigates the need for multiple programs. The DCC makes compliance easier to manage and cheaper to maintain.

The DCC is divided into two categories: Refining and Petrochemical, and Exploration and Production. These consortiums manage the urine-based testing requirements for multiple owners and operators across the Energy Sector.

Emerging trends and methodologies like hair testing, oral fluid testing and background screening are also managed by the DCC.

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N Exploration & ProductionUsed by E&P owners and contractors, and covers both onshore and offshore operations. This consortium also manages contractor compliance to federally regulated DOT requirements.

Refining & PetrochemicalUsed by refinery and petrochemical owners and contractor companies. This is our largest consortium and is mandated or accepted at nearly 140 facilities across the U.S.

2016 CONSORTIUM ROLLOUTS

OWNER OWNERLOCATION LOCATION# OF CONTRACTOR COMPANIES # OF CONTRACTOR COMPANIES

When the DCC is chosen to manage contractor compliance for an owner/operator, DISA’s first job is to rollout or implement the program across the contractors that are subject to the program’s requirements. Each rollout can involve hundreds of contractor companies and thousands of their employees.

Our rollout process is an effective way for the owner/operator to implement and manage their contractor workforce, while making it easier for contractors to remain compliant with the employee screening requirements of multiple owner/operators.

TESTS AVOIDED BY VERIFICATION

0 CLEAR RECORD 273,722 85.02%

1 NON-VIOLENT MISDEMEANORS 26,549 8.24%

2 VIOLENT MISDEMEANORS 6,092 1.89%

3 LESSER FELONIES 3,182 0.99%

4 FELONIES IN 3 AND MISDEMEANORS IN 2 305 0.09%

5 HIGHER FELONIES 10,151 3.15%

6 FELONIES IN 5 AND MISDEMEANORS IN 2 1,977 0.61%

7 PATRIOT ACT HITS 30 0.01%

Exploration & Production Contractors Consortium (EPCC) 15.11% $486,180 6,590

$522,218Exploration & Production Contractors Consortium (EPCC with Expanded Opiates) 4.08% $36,038 487

DOT FMCSA, DOT PHMSA & USCG Contractors Consortium N/A N/A N/A

DISA Contractors Consortium (DCC/DCCHA) 56.74% $16,526,569 223,335

$16,769,881DISA Contractors Consortium (DCC with Expanded Opiates) 13.85% $243,312 3,288

DISA Hair Testing Consortium (DCCHT without Randoms) 53.82% $6,184,550 83,575

$6,982,714DISA Hair Testing Consortium (DCCHT with Randoms) 23.12% $798,164 10,789

DISA Oral Fluid Consortium (DCCOF) 13.20% $254,042 3,433 $254,042

SCORE

EXPLORATION & PRODUCTION

REFINING & PETROCHEMICAL

HAIR TESTING

ORAL FLUID TESTING

EMPLOYEES

TESTS AVOIDED BY VERIFICATION

TESTS AVOIDED BY VERIFICATION

TESTS AVOIDED BY VERIFICATION

TESTS AVOIDED BY VERIFICATION

% OF TOTAL

TOTAL ANNUAL SAVINGS

TOTAL ANNUAL SAVINGS

TOTAL ANNUAL SAVINGS

TOTAL ANNUAL SAVINGS

RECORD TYPE

REDUCTION IN TESTING

REDUCTION IN TESTING

REDUCTION IN TESTING

REDUCTION IN TESTING

ANNUAL SAVINGS PER POLICY

ANNUAL SAVINGS PER POLICY

ANNUAL SAVINGS PER POLICY

ANNUAL SAVINGS PER POLICY

2016 GRADED BACKGROUND SCORES

DCCHA Urine-Based Testing: 4,540 PositivesNumber of Positives Per Drug:

2,450 701 570 393 35 33 30175 1953

DCCEO Urine-Based Testing with Expanded Opiates: 585 PositivesNumber of Positives Per Drug:

312 56 91 66 13 222 221

DCCOF Oral Fluid Testing: 96 PositivesNumber of Positives Per Drug:

59 9 2 10 1 5 3 7

MARIJUANA COCAINE OPIATES AMPHETAMINES PCP BARBITURATES BENZODIAZEPINES PROPOXYPHENE METHADONE METHAQUALONE ALCOHOL

CORPORATE PROGRAMS: 3,770 PositivesNumber of Positives Per Drug:

2,039 653 353 360 6 10 991 2472

DOT PROGRAMS: 1,215 PositivesNumber of Positives Per Drug:

514 284 137 237 11 32

4,714 3,143 1,870 1,139 62 69 38243 2596

DCC PROGRAMS: 11,543 PositivesNumber of Positives Per Drug:

Positivity Rate: 2.57% Pre-Employment 0.95% Random 1.77% Post-Accident 11.69% Reasonable Cause 1.94% All Tests

Positivity Rate: 0.94% Pre-Employment 0.81% Random 1.32% Post-Accident 13.33% Reasonable Cause 0.93% All Tests

Positivity Rate: 2.65% Pre-Employment 0.79% Random 1.84% Post-Accident 10.08% Reasonable Cause

Positivity Rate: 2.84% Pre-Employment 1.04% Random 1.83% Post-Accident 3.82% Reasonable Cause

Positivity Rate: 0.75% Pre-Employment 0.15% Random 1.18% Post-Accident 14.29% Reasonable Cause

Positivity Rate: 3.42% Pre-Employment 0.77% Random 1.69% Post-Accident 9.79% Reasonable Cause

POSITIVITY RATES BY

PROGRAM

POSITIVITY RATES BY

CONSORTIUMREFINERY & PETROCHEMICAL

2016

HIG

H-

LIG

HTS

DCCHT Hair Testing: 3,509 PositivesNumber of Positives Per Drug:

852 1,500 776 363 18

DCCHT Hair Testing with Randoms: 1,494 PositivesNumber of Positives Per Drug:

351 653 344 140 6

295211 30

EPCC Urine-Based Testing: 1,011 PositivesNumber of Positives Per Drug:

567 179 51 135 2

417 13

EPCC with Expanded Opiates: 298 PositivesNumber of Positives Per Drug:

164 45 37 27

72

PHMSA Contractor Compliance Program: 552 PositivesNumber of Positives Per Drug:

248 146 36 113

22

FMCSA Contractor Compliance Program: 387 PositivesNumber of Positives Per Drug:

169 94 35 67

11

USCG Contractor Compliance Program: 80 PositivesNumber of Positives Per Drug:

41 15 3 19

MARIJUANA COCAINE OPIATES AMPHETAMINES PCP BARBITURATES BENZODIAZEPINES PROPOXYPHENE METHADONE METHAQUALONE ALCOHOL

Positivity Rate: 7.17% Pre-Employment 0% Random 5.05% Post-Accident 15.09% Reasonable Cause

Positivity Rate: 5.65% Pre-Employment 0.73% Random 0% Post-Accident 6.25% Reasonable Cause

Positivity Rate: 2.15% Pre-Employment 0.82% Random 1.30% Post-Accident 13.28% Reasonable Cause

Positivity Rate: 1.96% Pre-Employment 0.62% Random 1.78% Post-Accident 13.04% Reasonable Cause

Positivity Rate: 1.29% Pre-Employment 0.93% Random 7.14% Post-Accident 10.26% Reasonable Cause

Positivity Rate: 0.57% Pre-Employment 0.39% Random 1.08% Post-Accident 18% Reasonable Cause

Positivity Rate: 1.81% Pre-Employment 0.52% Random 2.13% Post-Accident 8.33% Reasonable Cause

REFINERY & PETROCHEMICAL (CONTINUED)

EXPLORATION & PRODUCTION

2016

HIG

H-

LIG

HTS DISAMobile

DISA is committed to remaining at the forefront of technology.

The newly launched DISAMobile App gives our clients the

ability to confirm an employee’s compliance status on-the-go.

With so many DISA users working in the field, mobile access to

their compliance information makes their job easier and more

efficient. Our app allows them to get their employees on the job

faster, saving them time and money.

LABORATORY PARTNERSHIPSDISA believes the relationships we maintain with our laboratory

providers is crucial to the quality and accuracy of the screening

services we provide. In 2016, those relationships changed in

a major way. We established working partnerships with

our primary urine and hair testing labs, Clinical Reference

Laboratories (CRL) and Psychemedics, respectively. This new

way of interacting will enable us to work together to bring greater

value and cost-saving opportunities to our clients.

PAPERLESS INITIATIVESDISA is committed to developing solutions to make the complex

screening process easier and less cumbersome. The immense

volume of paper required for the Chain of Custody process makes

this important process slower, less accurate and inefficient.

We teamed our internal experts and technology solutions

with our laboratory partner, CRL, to develop an electronic

solution to the paper-heavy screening process. We also

developed an electronic solution for capturing employee consent,

another paper process. Now, our clients are afforded the ease

and efficiency of electronic Custody and Control and electronic

Consent Forms – eCCFs and eConsent.

DISA Global Solutions, Inc.DISA.COM