Comprehensive Safety Analysis (CSA) 2010 A New Way To Measure and Address Commercial Motor Vehicle Safety April 2010 Joe Darby Doug Dickinson Marsh Risk Consulting

1 Marsh Overview  CSA 2010 overview – Mark Langer  Time Line for implementation  What clients are telling us so far  Initial Concerns  What carriers should do to prepare  Wrap-up – Rich Bleser

What is CSA 2010?

3 Marsh Comprehensive Safety Analysis 2010 What is CSA 2010? CSA 2010 is a pro-active initiative to improve the efficiency and effectiveness of FMCSA’s enforcement and compliance program to achieve the Agency’s mission to reduce commercial motor vehicle (CMV) crashes, fatalities, and injuries.

Why CSA 2010?

5 Marsh Commercial Motor Vehicle Fatalities Rate of Commercial Motor Vehicle Fatalities is Leveling Off

6 Marsh A More Agile, Efficient Program  Current Operational Model Limitations – Limited intervention tool-box for safety investigators (SIs) – Safety fitness determination tied to compliance review – Focus largely on carriers  Limited number of federal/state investigators compared to large number of carriers – FMCSA regulates ~725,000 interstate and foreign-based truck and bus companies  U.S. DOT/FMCSA audit Compliance Review (CR) is labor intensive – Only able to reach < 2% (~12,000) of total carrier population annually

7 Marsh What is Changing?  The way FMCSA assesses carrier safety – Identifies unsafe carrier and driver behaviors that lead to crashes – Uses all safety-based roadside inspection violations – Evaluates/tracks driver performance individually  How FMCSA addresses carrier safety issues – Reaches more carriers earlier and more frequently – Improves efficiency of investigations  Focuses on specific unsafe behaviors  Identifies root causes  Defines and requires corrective actions  How FMCSA promotes safety – Forces carriers/drivers to be accountable for their safety performance  Demands and enforces safe on-road performance – Makes more complete safety performance assessments publicly available

8 Marsh A New Operational Model (Op-Model)

9 Marsh CSA 2010 Op-Model 1. New Safety Measurement System (SMS) Improved ability to identify demonstrated safety problems 2. New intervention process Employs an array of interventions instead of the single option, labor-intensive compliance review 3. Proposed change for evaluation: new approach to the Safety Fitness Determination (SFD) SFD tied to current safety performance; not limited to acute/critical violations from a CR

10 Marsh Uses crash records and ALL roadside inspection safety- based violations to determine carrier/driver safety Weights time and severity of violations based on relationship to crash risk Triggers the intervention process Calculates safety performance based on 7 Behavior Analysis and Safety Improvement Categories (BASICs) Driver Safety Measurement System (DSMS) will be used to directly address commercial motor vehicle (CMV) driver performance in terms of BASICs, using available roadside performance data New Safety Measurement System (SMS)

11 Marsh SMS BASICs SMS BASICs focus on behaviors linked to crashes 1. Unsafe Driving (Parts 392 & 397) 2. Fatigued Driving (Hours of Service; Parts 392 & 395) 3. Driver Fitness (Parts 383 & 391) 4. Controlled Substances/Alcohol (Parts 382 & 392) 5. Vehicle Maintenance (Parts 393 & 396) 6. Cargo Related (Parts 392, 393, 397 & HM) 7. Crash Indicator

12 Marsh New Interventions Process The New Interventions Process addresses the… WHAT Discovering violations and defining the problem (similar to current model), but also expanding to include the why and how WHY Identifying the cause or where the processes broke down HOW Determining how to fix it/prevent it through use of Safety Management Cycle and Safety Improvement Resources

13 Marsh New Intervention Tools New intervention tools reach more carriers and influence safety compliance earlier Warning Letters Investigations − Offsite Investigations − Onsite Investigations - Focused − Onsite Investigations - Comprehensive Follow-on corrective actions − Cooperative Safety Plan (CSP) − Notice of Violation (NOV) − Notice of Claim (NOC) − Operations Out-of-Service Order (OOS)

14 Marsh Expansion from What to Why? Safety Management Cycle What safety management processes are breaking down? Why are these safety management processes breaking down?

15 Marsh Safety Fitness Determination: Current Limitations The current safety rating/SFD process has limitations Only issued with on-site Compliance Review (resource intensive) Only a snapshot of carrier compliance taken at the time of most recent CR − Safety ratings (Sat, Conditional or Unsat) are often outdated and may not reflect current safety posture Heavily based on violations deemed “critical” or “acute” Unsatisfactory/Unfit SFD rating requires multiple areas of deficiency

16 Marsh Proposed Change to the SFD Process  Incorporate on-road safety performance via new SMS on a monthly basis  Continue to include major safety violations found as part of CSA 2010 investigations  Produce a Safety Fitness Determination of – Unfit or – Marginal or – Continue Operation Draft rulemaking is currently in review within FMCSA; NPRM is scheduled to be published Dec 2010.

17 Marsh Benefits of CSA 2010 SFD  Maximizes the use of data collected during roadside inspections – Approx. 3 million inspections performed annually  Creates carrier accountability for sustained unsafe operations and performance  Assesses more carriers based on current safety performance CSA 2010 issues safety ratings within the existing regulatory framework. This will continue until the SFD rule goes into effect

CSA 2010 Implementation

19 Marsh National Implementation Summer 2010  Replace SafeStat with SMS  Inspectors see BASICs information at the roadside July through December 2010  Roll out interventions tool box  Send warning letters nationwide

20 Marsh Time Line  SMS information available to carriers : April 12, 2010 – Live violation data available  Details of how BASICS are calculated: August 2010  Prioritization of carriers begins: November 2010 – BASICS data live for all carriers  Safety Fitness Determination (SFD) Proposed Rule Making: December 2010  Interventions begin on large scale: Spring 2011

CSA 2010 Field Test

22 Marsh Preliminary Results New Elements  Warning letters are having a positive impact: – About 4,000 sent to-date – 45% of recipients logged in to view safety scores – Feedback from test states indicates that carriers appreciate the early alert  Carriers are using SMS results – Some have logged in more than 200 times since the test started – Anecdotally, they are using the data to drive safety improvements

23 Marsh Impact on Industry Carrier Impacts  More carriers will hear from FMCSA  Specific safety performance information in SMS will be available  All violations will count  Warning letters will alert carriers of poor safety performance  More carriers will be exposed to compliance and enforcement efforts

24 Marsh Impact on Industry Driver Impacts  Drivers will be able to examine their employers’ safety performance  Deficient BASICs will be available to roadside inspectors  Investigators will know an individual driver’s record across companies  Investigators will pursue and penalize driver “red flag” violations

25 Marsh Client Experience  Two DOT approaches – Education opportunity  Chance to reset expectations  Provide insights to how to be safer carrier – Carrot and Stick  Stand off  Letter listing demands  Consequences clearly outlined

SMS Demonstration

27 Marsh Carrier Measurement: SafeStat Results

28 Marsh Carrier Measurement: SMS Results

29 Marsh Violation Details Provided in SMS

30 Marsh Further Drilldown in SMS

31 Marsh Webinar #2 How to get better in SMS?  Good Inspections  “Get Well” Rules – Violation time weight diminishes | BASICNo percentile assigned if: Crash Indicator No crashes in last year Unsafe Driving and Drug and Alcohol No percentile assigned if no inspections with a violation in these BASICs in the last year Fatigued Driving, Driver Fitness, Vehicle Maintenance and Cargo Related No inspections with a violation in that BASIC within the past year; and Most recent relevant inspection does not have a violation of that BASIC

Initial Concerns MN Trucking Association

33 Marsh Summary  Enforcement  DataQ  Peer Groupings  Accessing the data  Safety Fitness Determination  Crash Indicator  Inspection point values  Hazardous Materials as separate basic  Commercial Vehicle Drivers FMCSA has agreed to some elements of the high lighted areas above – but continue to believe that the same data that was effective in reducing crashes with Safer will work with the BASICS

34 Marsh Enforcement  Unequal enforcement (i.e. IN and OH)  Probable cause basis for stop  Warning ticket – Lower threshold – No recourse – Intent on counseling not enforcement  Inspection inaccuracies

35 Marsh Peer groupings  Vehicle size only basis – Only 3 groups  No industry grouping (i.e. bus, van, LTL, flatbed, hazardous materials)

36 Marsh Accessing the data  What data will be available to public  What driver data will be available to carriers  Data accuracy – Driver employment decisions based on warning tickets that cannot be challenged

37 Marsh Crash indicator  All crashes – Includes non-preventable which carrier cannot impact  Carrier with only non-preventable crashes could look less safe than carrier with a smaller of crashes that are all preventable  Mileage not used to normalize the data

38 Marsh Inspection point values  Relative weight of infractions – Improper transport of explosives = 2 points – Loose tie downs = 10 points – Not informing carrier of violation = 6 points – Not wearing glasses or hearing aid = 2 points – Steer tire and trailer tire have the same weight

39 Marsh Drivers  Data from terminated drivers stay on carrier profile for 24 months  Carrier that hires same driver has a clean slate

Actions to do to prepare

41 Marsh What Can Carriers Do To Prepare Now?

42 Marsh What Can Carriers Do To Prepare Now?

43 Marsh Vigillo Aggregate Statistics 76% of Vigillo Customers have at least 1 BASIC over the Intervention Threshold (1200+ Fleets)

44 Marsh What Can Carriers Do To Prepare Now?  Learn more about CSA: – Understand the BASICs – Check the site for implementation schedule and listening session notice – Sign up for latest news: RSS/listserv  Check and update records – Motor Carrier Census (Form MCS -150) – Inspection and crash reports  Ensure compliance – Review inspections and violation history over the past 2 years – Address safety problems now – Educate drivers about how their performance impacts their own driving record and the safety assessment of the carrier

45 Marsh What Can Carriers Do To Prepare Now?  Register for pre-employment screening –  Use a private company to get a preview of the BASICs – Vigillo and RAIR Technologies provides model of CSA 2010 – Driver management features not in CSA test – –  Mock FMCSA audit – Fleet Group can provide

46 Marsh Key Points for clients  Coming soon to all states  Unlike Safer – “good inspections” do not impact all elements of the BASICS (e.g. Unsafe Driving)  Register for Compass Portal now – – Review, understand, correct data  Take letter seriously – Safety rating can change without an audit  Individual driver performance will be visible – Hiring / retention implications

47 Marsh Commitment CRI Process Measurement Measure Results Identify Opportunity Measure and monitor performance and continuously improve Mutually explore the situation and form initial hypotheses of problem Execute/ Implement Solution Define the Causes Create and manage change Search for the problem’s most likely cause(s); refine and test the hypothesis Design/Select Best Solution Identify the“best”solution, the risks involved, and the commitment to change CSA 2010 Mgmt. Process Assess Current Fitness Train Managers & Capacity Incorporate Action Plan Monitor Safety Fitness Identify Improvement Opportunities  Game Changer – Regulations remain the same – Accountability measures are enhanced  Action Steps – Take Seriously – Assess Fitness – Identify Opportunities – Train – Incorporate Action Plan – Monitor Performance  Marsh Risk Consulting is at the fore-front – Contact us for assistance Wrap-Up

48 Marsh Questions For additional information go to: For additional assistance contact your local Client Executive or the following: Rich Bleser – Doug Dickinson – Joe Darby –