Managing  CSA  Compliance  Thursday,  July  28,  3-­‐4  p.m.  ET  

Annette  Sandberg  Scopelitis,  Garvin,  Light,  Hanson  &  Feary,  P.C.  

Scott  Randall  Director  of  Safety  

Hogan  Transports,  Inc.  

Sponsored  by  

CSA – Frequently asked questions

1. What is CSA? Compliance, Safety, Accountability (CSA) rolled out in December 2010 as a major Federal Motor Carrier Safety Administration (FMCSA) initiative to improve the effectiveness of the agency’s compliance and enforcement programs.

2. Why was CSA being implemented?

CSA targets better use of FMCSA resources to identify drivers and carriers with safety problems combined with earlier intervention to ultimately reduce truck-related crashes.

3. Will CSA take into account both driver and carrier safety performance?

In CSA’s Operational Model, data collected from roadside inspections and state-reported crashes is processed through its Safety Measurement System (SMS) comprised of – �  The Carrier Safety Measurement System (CSMS) using 24 months of data �  The Driver Safety Measurement System (DSMS) using 36 months of data

The 7 BASICs of the SMS Source: roadside inspections, state crash reports

1. Unsafe Driving

2. Fatigued Driving

3. Driver Fitness

4.Drugs/Alcohol

5. Vehicle Maintenance

6. Cargo Related

7. Crash Indicator

e.g., Speeding, tailgating, lane change, seat belt. Includes warnings and tickets

e.g., Hours of service, Log books, ill or fatigued driving

e.g., driver’s license (right class, restrictions, suspended), med card (valid, current)

e.g., use or illegal possession of drugs or alcohol e.g., driver inspections, equipment defects

e.g., hazardous material, load securement, cargo leaks

e.g., DOT recordable accidents, includes both preventable and non-preventable

CARRIER RANKING UNDER SMS

SMS methodology uses multiple design features to convert data into a carrier measure and rank/percentile.

1. Violation/Crash Severity – points assigned to violations or crashes

2. Time weight – multiplier that declines with passing of time

3. Normalization – a process used to differentiate exposure by carrier

4. Segmentation – segments carriers by “combo” or straight vehicle

5. Safety Event Groups – carriers tiered by inspection or crash totals

6. Data Sufficiency – ensures enough inspections/crashes for measure

7. Percentile Rank – tied to intervention thresholds

CSA Intervention Thresholds

BASIC General HM Passenger

Unsafe Driving (Stand alone)

65% 60% 50%

Fatigued Driving (Stand alone)

65% 60% 50%

Driver Fitness 80% 75% 65%

Controlled Substances/Alcohol

80% 75% 65%

Vehicle Maintenance 80% 75% 65%

Cargo-related 80% 75% 65%

Crash Indicator 65% 60% 50%

CSA Operational Model – Interventions

� What is an intervention? A form of contact by FMCSA directed to a carrier with an identified safety problem. First contact is usually a warning letter.

� What is the purpose of a warning letter?

Early contact designed to alert the carrier to an identified safety problem

CSA Operational Model – Interventions

� How do I respond to a warning letter?

To begin, you do not need to send a reply to FMCSA. You should however complete the following steps:

�  Log on to your SMS profile (http://ai.fmcsa.dot.gov/sms/) �  Review accuracy of data (DataQ challenge inaccurate data) �  Identify violation or crash trends and target policy and program

changes designed to reverse poor performance trends �  Continually monitor performance in SMS to ensure continued

improvements as reflected in BASIC percentile trends

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Who Gets Warning Letters

Have 1 or 2 Roadside BASICs above threshold, AND:

ü Not a High-Risk Carrier

ü Have not had a WL or CR in the last 2 years

ü Not in the New Entrant Program

ü Do not have an open intervention

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How Many Warning Letters Sent

Test States - Feb 2008 - Dec 2010 - 10,500 warning letters sent Nationally - Since Dec 2010 (Kicked off March 2011) - 25,000 warning letters sent

Data shows that Warning letters are an effective tool in getting motor carriers to improve their performance. (UMTRI Preliminary Analysis) )

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Follow up Enforcement Activities

Pilot states showed new tools work well - Breakdown in types of investigations �  Onsite Comprehensive Investigations (25%) �  Onsite Focused Investigations (45%) �  Offsite Investigations (30%)

NOTE: During the Pilot 50% of investigations resulted in either a NOC, NOV or Cooperative Safety Plan

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Which BASICs Are the Most Carriers over the Threshold 12

BASIC Number of Carriers Above Threshold *

Unsafe Driving 11,809 Fatigue Driving (HOS) 26,921 Driver Fitness 3,424 Controlled Substances and Alcohol

546

Vehicle Maintenance 18,556 Cargo-Related 4,101 Crash Indicator 5,744

* Data current as of April 22, 2011

CSA Operational Model – Interventions

� Do all carriers with safety deficiencies receive warning letters?

Carriers with more significant safety problems may be subject to an offsite or onsite investigation. Investigations can lead to follow-on actions such as Cooperative Safety Plans, Notices of Violation or Claim, Out-of-Service Order.

Denotes this carrier exceeds the FMCSA intervention threshold relative to its safety event grouping based upon roadside data and/or has been cited with one or more serious violations within the past 12 months during an investigation. Therefore, this carrier may be prioritized for an intervention action and roadside inspection.

SMS on the Roadside - ISS

�  New Inspection Selection System (ISS) rolled out December 2010.

�  Revisions to the ISS algorithm focus on 3 areas ¡  Use CSMS Intervention Thresholds to target unsafe

carriers and drivers ¡  Incorporate safety investigation results ¡  Targeted inspections support the data sufficiency

objectives of the CSMS methodology

CSA and Roadside Inspection Data

�  The ISS thresholds will continue to be Pass, Optional, or Inspect for carriers and drivers

�  Inspection priorities are set according to: ¡  Deficient basics, investigative results ¡  Sufficient data, no deficiencies ¡  Insufficient data

�  Ultimately, officer discretion takes priority in inspect/pass decision ¡  Resources at inspection station ¡  Observable defects

Inspection Selection System Screenshot

Data Challenges in the New CSA World

�  Carriers need to carefully watch all data attributed to their DOT number

�  See the Data Q Users guide at: https://dataqs.fmcsa.dot.gov/

�  Provide as documentation to support your challenge �  Challenge any data that:

¡  Does not belong to you ¡  Violations that are improperly cited ¡  Improper assigned crashes or crashes that are not DOT

reportable

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Remaining Developments for CSA in 2011

�  Part of this CSA transition will be a substantive change in how carriers are rated

�  Newly-termed Safety Fitness Determination (SFD) will result either from: o  On road performance reflected in safety measures

o  Results from carrier investigations

�  FMCSA anticipates publishing a Proposed Rule in December 2011

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CSA Proposed SFD Methodology *

Failed BASICs result from roadside and investigation data SFD methodology: � Classifies BASICs as “Stand Alone” or “Non Stand Alone” according to their demonstrated relationship with carrier crash risk � Driven by the carrier’s failed BASICs

✓Have any BASICs failed? How Many? Which One(s)? � Would result in three potential SFDs

✔Continue to Operate ✔Marginal ✔Unfit *Based on early information released from FMCSA

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CSA 2010 Safety Fitness Determination Methodology Being Considered*

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SFD Methodology Being Considered Number of BASICs:

Measure equals or exceeds BASIC Failure Threshold or

Essential Safety Management Violations Discovered Discovery of Fundamental

Violation?

Resulting Proposed SFD Stand Alone BASICs:

Unsafe Driving Fatigued Driving (HOS)

Non Stand Alone BASICs: Driver Fitness Cargo Related Crash Indicator

Controlled Substances / Alcohol

1 Unfit 0 >1 Unfit 0 0 1 Unfit 0 1 0 Marginal 0 0 0 Continue to Operate

* Based on earlier information released by FMCSA

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Remaining Developments for CSA in 2011

Training of federal and state investigators will occur in late 2011 focusing on a new investigative tool referred to as the Safety Management Cycle.

SIs use the Safety Management Cycle to walk carriers through their operations and to identify process breakdowns likely to result in safety problems.

Excerpted from FMCSA Industry Briefing April 2011

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What Does this mean to Shippers and Brokers?

✔Caution in using the data as a brightline for Carrier Selection ✔Shippers and Brokers should have a carrier selection framework that fits with their business model and is defensible from a risk standpoint ✔Follow the framework consistently on every carrier ✔Use the SMS data as a discussion point with carriers ✔Look at other industry standards when developing criteria

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Assessing Your CSA Preparedness

In assessing your company’s overall preparedness for CSA, consider the following: 1.  What impact has CSA had on driver relations, general program development in your company?

a.  Partnership forms between management and drivers as both become better informed about the CSMS and DSMS.

b.  Managers and drivers expand their dialogue to add focus on all levels of roadside inspections, all safety violations

c.  Adjustments to policy and program initiatives relating to safety, corrective action, awards and recognition, hiring in response to violation/crash patterns.

Assessing Your CSA Preparedness

Assessing your company’s overall preparedness for CSA continued… 2.  What are some of the specific steps taken to introduce CSA into the organization? a.  All levels of management are thoroughly educated on CSA details

b.  Emphasize “behaviors” associated with BASICs and driver’s individual accountability under DSMS

c.  Strategic discussion focused on safe driving practices and reducing patterns of observable behaviors, defects

Assessing Your CSA Preparedness

Assessing your company’s overall preparedness for CSA continued… 3.  Have there been any positive developments associated with our implementation of CSA? a.  Create an atmosphere of collaboration and mutual reliance between drivers and managers

b.  Design recruitment and retention initiatives to attract and retain drivers whose violation and crash history reflect their commitment to safety

c.  Sell the company’s attributes as an informed carrier who is committed to minimizing both the company’s and driver’s CSA exposure d.  Improve your safety program design to include tracking and measuring results with improved data analytics on inspection and violation patterns

Assessing Your CSA Preparedness

Assessing your company’s overall preparedness for CSA continued… 4.  How do I prepare for a CSA intervention? a.  Focus efforts on violation patterns contributing to deficient BASICs and ensure that actions taken to reverse trends are definable, effective, sustainable

b.  Demonstrate a thorough understanding of CSA, SMS, and the intervention process

c.  Most interventions will be targeted. Management must understand its exposure under CSA and tailor its program design and data analytics accordingly

d.  The key is to take action through management intervention and driver outreach in an effort to realize even modest improvements in problem BASICs.

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Assessing Your CSA Preparedness

Assessing your company’s overall preparedness for CSA continued… 5. How do you engage shipper and broker customers regarding CSA? a. Talk to shippers and brokers early and often b. Make sure they are educated on the system c. Remember “Bad News does not get better with Time” Tell you shippers or brokers if there is a problem and the steps you are taking to correct. d. Ask them about their carrier selection framework so you know where they stand on the data

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Continuing Challenges with CSA

1.  Still awaiting full program roll-out at Federal and state level, training of field investigators and roadside inspectors

2.  Tentative relationships with supply chain partners, industry affiliates tied to uncertainty about how to use CSA data

3.  Negative industry image perpetuated by the media as CSA data is misinterpreted, distorted, sensationalized

4.  Pending changes to SMS translate into uncertainty regarding its impact on specific industry segments

5.  Elements of Rule on Safety Fitness Determination Still Uncertain

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COMPLIANCE

INSPECT    ●    TRACK    ●    KNOW  

COMPONENT     CSA  SCORE    

Load  Securement     10  

Tires     8  

Suspension     7  

Steering     6  

LighDng     6  

Lamps  Reflectors  Obscured     6  

CVSA  Decal     4  

No  Pre-­‐Trip     4  

Brakes     4  

ABS     4  

No  Review  Signature     4  

Reflectors  &  Lights     3  

5th  Wheel     3  

Mirrors,  Horn,  Speedo     3  

Leaks:  Oil,  Lube,  Fuel     3  

Wheels  &  Lugs     2  

Questions  &  Answers  Please  ask  questions  for  today’s  presenters    using  the  

“Questions”  tab  in  the  control  panel  on  the  right  

Contact  Information  

Annette  Sandberg  Scopelitis,  Garvin,  Light,  Hanson  &  Feary,  P.C.  

asandberg3@toast.net  

Scott  Randall  Director  of  Safety  

Hogan  Transports,  Inc.  srandall@hogan1.com  

Aaron  Huff  Senior  Editor  

Commercial  Carrier  Journal  ahuff@rrpub.com  

End  of  Presentation  

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