Contractor Management at Alliance Pipeline How we’re doing

What do we want to do? 1.Identify, evaluate, mitigate risks 2.Focus on high risk activities 3.Get everyone doing 1 & 2

What’s broken?

The result?

We can’t manage what we don’t know

What needs to happen?

What we did

Step 1 Agree to assess risk based on potential consequences

What is the highest likely potential severity of an incident involving this job task? Minor property damage? Minor injury? Pretty serious damage? Life-altering injury? Catastrophic damage? Death?

What is the highest likely potential severity of an incident involving this job task? Minor property damage? Minor injury? Pretty serious damage? Life-altering injury? Catastrophic damage? Death?

Step 2 Determine how to categorize and prioritize contractors Size <100 including subcontractors ≥ 100 including subcontractors Risk Do you perform job tasks with the potential to create major/catastrophic damage, or life-altering injury or death?

Step 3 – Plan A Tweak the established bid process to gather and evaluate risk information about the contractor

Congratulations! If you were able to execute Plan A … You can affect contract award

We’re not there yet, but we’d like to be

Step 3 – Plan B Tweak the established contract process to gather and evaluate risk information about the contractor

Step 3 – Plan B

Step 4 Size of Company (employees and subcontractors ) Work Risk Potential LowHigh Contractor does not come on site Contractor comes on site and does not perform job tasks that have potential to create major injury or property damage (not including driving) Contractor comes on site and performs job tasks that have potential to create major injury or property damage (not including driving) Small (<100 people) Low Risk Contractor High Risk – Small Contractor Large (>100 people) Low Risk Contractor High Risk – Large Contractor

Step 5 Safety policy? COR certificate? TRIR??

Step 5 Information/Documenta tion Description Requested for Evaluation Occupations working on Alliance sites List of all Subcontractor useList of subcontractors to be used on Alliance sites Description of subcontractor management process Operational practice and/or procedure Copies for each high risk job task Training documentation Description of course(s) and/or mentoring process required for each high risk job task (indicate whether these are delivered internally or by third party)

Step 5 Information/Documentation Description Requested for Evaluation Occupations working on Alliance sites List of all Subcontractor useList of subcontractors to be used on Alliance sites Description of subcontractor management process Operational practice and/or procedure, or formal job task hazard assessment Copies for each high risk job task Training documentationTraining matrix or list of training courses employees may be required to take, as well as any mentoring processes, for each high risk job task (indicate whether these are delivered internally or by third party) Incident investigation dataDescription of all incidents (not just recordable or reportable) in the past 12 months related to high risk job tasks. Description should specify:  What high risk job task it was related to  What happened  What was done to investigate and fix it

Step 6 Contractor Risk ProfileContractor Baseline Performance Profile Low Risk ContractorLow Risk: Contractor’s activities/services represent low safety risk to the organization. High Risk Contractor (small or large) Low Risk: Contractor has identified key risks and is effectively mitigating them. Medium Risk: Contractor has identified key risks but not completely mitigated them. High Risk: Contractor demonstrates minimal awareness or management of risks. Unknown Risk: Contractor is unwilling to share any information; therefore, risk exposure is unable to be determined.

Step 6

Step 7 Who? Doing what? When? Compliant? Risk aware? Good instructions? Competent?

Congratulations! If you were able to execute Plan B before the contractor arrived on site … You can mitigate high potential consequence risks

Sometimes we’re here, but most often, we need to enact Plan B of Plan B

Step 5 – Plan B Attempt to mitigate risk based solely on the answers to the first survey

Step 6 on-site surveillance operations: target = high risk job tasks

Step 7 Contract request processed (legal and administrative stuff) Contractor risk (mitigation) evaluated and documented (protecting our people and things) Contractor work performed and observed (on time, on budget, and safe)

Step 7

Step 8 Contractor Risk Profile Ongoing Performance Profile Low Risk ContractorLow Risk: Contractor’s activities/services represent low safety risk to the organization. High Risk Contractor (small or large) Low Risk: Contractor demonstrates effective risk management. There is positive observation history. Medium Risk: There is limited observation history due to low or limited reporting or experience with this Contractor. Medium Risk: Contractor demonstrates weaker risk management, but is actively working to improve. High Risk Performance: Contractor demonstrates limited risk awareness and management, and is not actively working to improve.

Let’s wrap it up!

1. Identify, evaluate, mitigate risks 2. Focus on high risk activities 3. Get everyone doing 1 & 2

Plan A: Make risk awareness and effective health & safety risk management part of the bid criteria Plan B: Get as much info on the contractor’s health & safety risk management practices as you can before they come on site Plan C: Keep eyes and ears on the known high risk job tasks being performed

For ease of tracking and management  Establish contractor risk baseline: Risk profile to prioritize (size, work) Baseline Performance Profile (involves desktop audit) to guide mitigation Mitigate contractor risk: Off-site prep work (mind the gaps) On-site surveillance (timely, targeted to high risk) Evaluate contractor performance Gather & record feedback (close the loop)