1. Compliance Options & TSMS Process
46 CFR Subchapter M
Compliance Options & TSMS Process
Dennis Bryson
District Manager
ABS-Americas Gulf District
©2016 American Bureau of Shipping.  All rights reserved.
© soulofathens.com

2. Subchapter M Current Landscape
Final Release July 20th, 2016
New vessels with keel laid after July 20th, 2017 are required to comply with all requirements to obtain USCG COI
Existing Vessels need to comply with most requirements by July 20th, 2018
COI implementation begins July 20th, 2018 for existing vessels

3. Subchapter M Current Landscape
Certificates of Inspection (COI) for the towing vessel fleet will be phased in gradually over a four year period, beginning July 20, Each company will be required to obtain COI’s for 25% of their fleet every year over the four year period.

4. Compliance Options 2 Primary Choices for the owners/operators
U. S. Coast Guard Option
Towing Safety Management System (TSMS) Option
Initial inspection scheduling at least 3 months before
Application for inspection at least 30 days before
Vessel must have audit before COI (TSMS Option)

5. USCG Option U. S. Coast Guard Option Annual USCG Inspections
USCG Conducts required drydocking Inspection
USCG Conducts required Internal Structural Exam (ISE)
No Company Safety Management System required
Initial inspection scheduling at least 3 months prior to COI
Application for inspection at least 30 days prior to COI

6. Towing Safety Management System (TSMS)
TSMS must be in accordance with 46 CFR Part 138
– Purpose of a TSMS
The purpose of a TSMS is to establish policies, procedures, and required documentation to ensure the owner or managing operator meets its established goals while ensuring continuous compliance with all regulatory requirements. The TSMS must contain a method to ensure all levels of the organization are working within the framework.
Requires the involvement of an approved Third Party Organization (TPO)

7. Advantages of TSMS Option
Establishes a comprehensive quality control system throughout the company which increases the safety and efficiency of all towing vessel operations.
Establishes clear, well defined roles & responsibilities within the organization
Can be scaled for company size/type
Continuous Compliance
Companies electing the TSMS option will be afforded greater flexibility to complete required surveys and audits, which may reduce vessel down time.
USCG will reduce the scope of their COI inspections.

8. TSMS Options – Options within the Option
External Survey Program
Internal Survey Program
Both Options require Third Party Organization (TPO) Involvement
Both Options require 2 distinct and separate events
1. Vessel Survey
2. Vessel Audit

9. TSMS Roadmap to Compliance
Company makes TSMS Selection
International Safety Management System (ISM)
Responsible Carrier Program (RCP)
Stand Alone SMS compliant with Sub M
Company signs a Master Service Agreement with TPO
Company makes “Internal Survey” or “External Survey” selection

10. TSMS Options – External Survey Option
External Survey Program
Owner/Operator selects a TPO
TPO reviews and approves TSMS
TPO conducts external company Safety Management System Audit
TPO Issues TSMS Certificate (for non ISM Companies)
TPO conducts external vessel audits
TPO conducts annual vessel surveys
TPO conducts mandatory drydock surveys
TPO conducts mandatory Internal Structural Exams

11. Compliance Options - TSMS
Internal Survey Program – Owner/Operator selects TPO
TPO reviews/approves TSMS and conducts all external management and vessel audits.
Company can then choose to perform annual vessel surveys and drydock/internal structure exams either with their own personnel, or a contractor.
Internal Surveys need not be completed as one event but may be done over the course of the year.
Company “Internal Surveyors” qualifications are to be similar to those of an External TPO Surveyor:
High School Diploma or equivalent
Must have at least one of the following:
4 years experience working on towing vessels as master, mate (pilot), or engineer, or
Other relevant marine experience such as USCG Marine Inspector, military personnel with relevant maritime experience, marine surveyor, accredited marine surveyor, experience on vessel of similar operating and physical characteristics

12. Compliance Options - TSMS
Internal Survey Program (Annual Surveys)
Requirements for this program are:
Procedures for surveying and testing described in § ;
Equipment, systems, and onboard procedures to be surveyed;
Identification of items that would need repair or replacement before the vessel could continue in service, such as deficiencies identified on Form CG–835, ‘‘Notice of Merchant Marine Inspection Requirements,’’ noted survey deficiencies, non-conformities, or other corrective action reports;
Procedures for documenting and reporting non-conformities and deficiencies;
Procedures for reporting and correcting major non-conformities;
The responsible person or persons in management who have the authority to:
Stop all vessel operations pending the correction of non-conformities and deficiencies;
Oversee vessel compliance activities; and
Track and verify that nonconformities and deficiencies were corrected;
Procedures for recordkeeping; and
Procedures for assigning personnel with requisite experience and expertise to carry out the elements of the survey.
The owner or managing operator is not required to survey the items as described in § as one event, but may survey items on a schedule over time, provided that the interval between successive surveys of any item does not exceed 1 year, unless otherwise prescribed.

13. Compliance Options - TSMS
Internal Survey Program (Drydock & Internal Structural Examinations)
Requirements for this program are:
A survey program that meets the requirements contained in § ;
Qualifications of the personnel authorized to carry out a survey program that are comparable to the requirements of a surveyor from a TPO as described in § of this subchapter;
Procedures for documenting and reporting non-conformities and deficiencies;
Procedures for reporting and correcting major non-conformities;
The identification of a responsible person in management who has the authority to stop all vessel operations pending corrections, to oversee vessel compliance activities, and to track and verify the corrections of nonconformities and deficiencies; and
Objective evidence that supports the completion of all elements of a vessel’s drydock and internal structural examinations.
The owner or managing operator must notify the TPO responsible for auditing the TSMS whenever activities related to credit drydocking or internal structural examinations are to be carried out prior to commencing the activities.
The interval between examinations of each item may not exceed the applicable interval described in §
The owner or managing operator must notify the cognizant OCMI of the zone within which activities related to credit drydocking or internal structural examinations are to be carried out prior to commencing the activities.

14. TPO oversight of “Internal” Survey Program
Your TPO should provide:
Verification of Internal Surveyor qualifications
Verification of Internal Survey Program management through external TSMS audits
Randomly attend surveys to confirm vessel condition and survey methods used are in accordance with TSMS
Periodic visits to the company to ensure internal survey program complies with TSMS and regulations
Review of internal survey and internal audit reports to ensure Sub M requirements are met

15. Certificates of Inspection
(a) A COI for a towing vessel is valid for 5 years from the date of issue.
(b) For a towing vessel utilizing the TSMS option, the COI is invalid upon the expiration or revocation of the owner or managing operator TSMS certificate or the ISM Code Certificate.
(c) A COI may be suspended and withdrawn or revoked by the cognizant Officer in Charge, Marine Inspection at any time for noncompliance with the requirements of this subchapter.

16. Certificate of Inspection (COI) Application
Objective Evidence (examples):
Dry dock exam
Internal structure exam
Class Certification
Load Line Certification
ISM Certification/Audits
TSMS Certification/Audits
Annual vessel surveys
Current UTV Exam
Internal Audit Reports
Your TPO should assist with providing any of the above documents

17. TSMS Options International Safety Management (ISM) System
AWO Responsible Carrier Program (ACP)
Company Specific Safety Management System (Compliant with Subchapter M 46 CFR Part 138)

18. Objectives of Safety Management System
Safety of personnel
Protection of environment
Pollution prevention
Prevention of damage to equipment
Regulatory compliance
Emergency preparedness
Continual improvement of work practices, especially safety aspects
Meet stakeholder expectations

19. TSMS Roadmap To Compliance
Implementation and Certification
Implement approved SMS
Complete internal audits
(company and minimum one vessel)
Complete company audit (first)
Issue DOC/TSMS Certificate
Complete vessel audit(s)
Sustain Program/Drive Improvements
Annual Management Review
RCP/SMS Office Audit ( 2 x 5)
ISM Office Audit (Annual) Vessel Audit RCP/SMS (1 x 5 years) Vessel Audit ISM (2 x 5 yrs)
Policy and process changes (continual improvement)
Base Line
Gap Analysis
ISM/RCP/SMS complete
Sub M pending
Determine management system structure options
SMS Development & Approval
Update current manual
Submit for approval

20. ISM Code Compliance for Towing Vessels
Basic steps for compliance with ISM Code
Safety Management System (SMS) Review
SMS manual reviewed by ABS auditor either at client office or by submission to ABS office
Typically, SMS may be reviewed/approved within 1 day
Document of Compliance (DOC) Audit
Company implements SMS onboard vessels
Implementation period of at least 90 days
Company carries out internal audit of company office and onboard vessels
Company requests ABS to conduct Initial DOC audit
ABS issues Document of Compliance valid for 5 years

21. ISM Code Compliance for Towing Vessels
Basic steps for compliance with ISM Code
Safety Management Certificate (SMC) Audit
Vessel Initial Audit: upon issuance of DOC, company requests vessels Initial ISM Audit
Copy of DOC to be available onboard
Internal audit report to be available onboard
Planned Maintenance System to be fully implemented onboard
ABS issues SMC to vessels valid for 5 years

22. ISM Code Compliance for Towing Vessels
AWO Member certified under ISM Code
RCP Add. B.6: A company certified under the International Safety Management (ISM) Code, to be eligible for AWO membership, must include in its Safety Management System all requirements unique to the RCP. This must be verified through the annual third-party Document of Compliance (DOC) audit.
A company wishing to use ISM compliance to meet AWO’s requirement that all members of the association must have a Safety Management System must send a letter to the AWO Safety Department stating that the company is operating in full compliance with all requirements of the ISM Code and certifying that its Safety Management System includes all requirements unique to the Responsible Carrier Program…
For companies participating in ISM whose entire fleet is not required to maintain Safety Management Certificates, 100 percent of those vessels without an ISM Safety Management Certificate must undergo an RCP vessel audit using the appropriate RCP vessel audit checklist at least once every five years.
All RCP elements have to be included in SMS if they want to retain membership
They have to send a letter to AWO stating the above
Send a copy of the document of compliance to AWO every year

23. RCP/SMS Roadmap to Compliance
Contract/Service Agreement with TPO
Submit RCP or TSMS manual to TPO for table top review
Upon successful completion of RCP or TSMS manual review, complete the Initial Management (Company) Audit.
The RCP or TSMS SMS must be implemented for a minimum of 90 days prior to the audit.
After successful completion of the Management Audit, complete RCP or TSMS audits on one (1) vessel of the company’s fleet (TSMS) or 10% of the fleet (RCP) within 12 months
Upon completion of the Management Audit and 10% of the fleet (RCP) or one vessel (TSMS), the Company may be issued a TSMS Certificate or RCP Letter of Compliance
The Management Audit is to be carried out twice in every 5 year period with the Mid-Term Audit completed between the 27th and 33rd months.
Vessels to complete one audit every 5 years

24. ABS Processes for TSMS Certification
RCP compliant company to obtain TSMS certification, process is similar to ISM certification which is a three stage process after Service Agreement or MSA.
Manual Review (Stage 1) desktop review to TSMS using Audit notes and TSMS job aid. (Manual is not stamped) TSMS Manual review letter issued after corrections/clarifications accepted.
Company Audit (Stage 2) on site (Requires 2 day notification to AWO) or 72 hour notification to USCG local OCMI.
Vessel Audits (Stage 3) on site.
TSMS Certificate is issued valid for 5 years minus 1 day

25. RCP Audit Intervals*
Start
Year 1
Year 2
Year 3
Year 4
Year 5
10% of Fleet
100% of Fleet
Months
27-33
ISM and RCP Audit Interval Comparison
Company: Annual audits with Renewal Audit in 5th year
Image ISM interval: Initial, 4 Annuals and then Renewal, 5th year
Image RCP interval: Initial, Mid-term (btw 27-33rd mth) Renewal 5th yr
Vessels: Intermediate audit with Renewal in 5th year
Image ISM interval: Initial, Intermediate (btw mths), Renewal
Image RCP interval: Initial then Renewal in 5th year
20 % fleet increment per year
*Company office and vessel internal audits must be carried out annually.

26. Common Manual Review Findings
Manuals make no reference to 46 CFR Sub M parts
Document control deficiencies – sections/revisions, who is responsible for document control
72 hour notification to USCG OCMI for company audit
Internal auditor qualifications not addressed
Master’s responsibility and overriding authority
Navigation assessments; documenting hand over from Captain/Pilot to wheelman
Documenting onboard orientation
Towing vessel recordkeeping of towing gear

27. Common Manual Review Findings
Effective Corrective Action Procedures
Company’s electing “Internal Survey” Option have not addressed – survey scope, schedule, tracking, qualifications
Documenting selection criteria for TPO
Part 141 Lifesaving / Part 142 Fire Protection – Alternate means for complying with prescriptive requirements, equivalent arrangements provided they are documenting TSMS
Permits to Proceed
Excursion Permits
TPO Witnessing drills during external audit