Managing Safety Contracts

Presented by Tyler Nguyen, CSP REP

County of Santa Clara

Joint meeting between the American Society of Safety Engineers (ASSE), Greater San Jose Chapter and Public

Agency Safety Management Associat ion (PASMA), Northern California

Biltmore Hotel, Santa Clara, CAApril 9, 2013

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Topic Summary and Biography

Topic summary:  The process begins with defining the scope of services and ending with a qualified contractor that can perform terms of contract. All steps in between will be discussed including research work on industry standards and practices; engaging with procurement, insurance, and legal; sending out the request for proposals; screening out for top prospective vendors; interviewing potential contractors; putting all the pieces in their places; and finally awarding a contract.

Biography:  Tyler Nguyen is an Environmental Health Safety & Sustainability professional based in the San Francisco Bay Area with over 20 years of experience across three industries: insurance, high technology manufacturing, and government. He enjoys meeting challenges, networking with fellow professionals and mentoring recent graduates or non-AARP members entering the field.

ASSE Greater San Jose, Joint Meeting with PASMA North, April 9, 2013, Biltmore Hotel, Santa Clara, CA 2

Talking Points

About the County of Santa Clara Contract – a binding agreement Business objectives Safety, health and environmental consideration Three phases of contracting: before during and

after Question & Answer, time permitting

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1. Cisco Systems Inc., 17,335 Silicon Valley EEs 2. County of Santa Clara, 15,481* Silicon Valley EEs

5 million square feet of county-owned facilities1.6 million square feet of commercial leased space

3. Kaiser Permanente Northern California, 13,500 4. Stanford University & SLAC National Accelerator

Laboratory, 11,569 5. Apple Inc., 10,000

About the County

Top of the List : Biggest EmployersSil icon Val ley / San Jose Business Journal by Jul ia Cooper, Researcher Date: Friday, December 31, 2010, 9:00am PST

*15,339 as of 2/26/13 4

SB 198 – who among you remember? Effective July 1991 Transportation Authority fined – hazardous waste County Chief Executive Officer Sally Reed OSEC created 1992 Tasked with occupational safety & environmental compliance –

internal operations Currently under Employee Services Agency umbrella

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Residents and Employees

Question: Why (as a safety professional) do you get into contracting?

Answer: Because our profession is about protecting people, the environment, and property. ASSE Greater San Jose chapter Past President Jay Jamali’s PEP rule

In addition to industry-specific technical knowledge, safety professionals also need these 9 skills:1.communication with upper management 5. environmental regulations2.Communication with workers/training 6. engineering3.Leadership 7. ergonomics4.Emergency preparedness/response 8. industrial hygiene 9. human resources

Source: “Safety + Health August 2012” Ashley Johnson, associate editor

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Shared Responsibi l i ty

Safety and Environmental Management

Board

Safety Coordinators

Agency, Department

Heads

Facility ManagersCounty

Employees

Countywide Safety

Committee OSEC

ASSE Greater San Jose Joint Meeting with PASMA North, April 9, 2013, Biltmore Hotel, Santa Clara, CA 7

PS Asks Mary Kilgo , SAP Senior Director for Sustainability Solution Management

www.asse.org, Professional Safety, February 2013

“Demonstrate that you understand the whole business and can contribute to it positively.”

“Safer operations do not increase costs. A safer operation leads to higher profit and benefits both workers and the nearby community.”

“There is no substitute for hands-on experience.”

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“Safety professionals are staff, not line, management.” Understand Role Fix systems, not

workers Management systems

drive safety excellence and the safety culture

Don’t confuse compliance with safety

Article “Taking Safety Seriously, a Contrarian View of the Safety Practice,” by Jim Loud, CSP, CHMM, CQA

Published in monthly Professional Safety magazine, www.ASSE.org, March 2012

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Major Business Units Valley Medical Center Social Services Agency Roads & Airports Parks & Recreation Sheriff/Correction/Probation Facilities and Fleet

More importantly, we value our safety coordinators who are our eyes and ears line personnel helping us with the business of safety on a daily basis.

ASSE Greater San Jose Joint Meeting with PASMA North, April 9, 2013, Biltmore Hotel, Santa Clara, CA10

Approach – Multiple Paths

Partners Human

Resources Procurement County Counsel Fiscal/Accounting Facilities

Types

•Board Contracts

•Service Agreements

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“Whenever a Board Contract PO (4300) or Service Agreement PO (4400) is created in SAP (by Procurement or myself or anyone), the contract/agreement is attached to the PO in SAP.”

Capital Project Priorit iesCounty of Santa Clara Board of Supervisors Policy 4.1.1

•Legal Mandates

•Health and safety effects

•Preservation of existing capital facilities

•Service level changes (quality of service)

•Fiscal impacts

•Environmental sustainability

•Aesthetic or social effects

ASSE Greater San Jose Joint Meeting with PASMA North, April 9, 2013, Biltmore Hotel, Santa Clara, CA 12

Facil i ty Condition Assessment

Target – $54 million

Maintain - $29 million

Criminal justice departments, Correction & Probation, have the poorest condition and the highest projected future repair and maintenance. Heating, ventilation, air conditioning, refrigeration, and boilers are in need of nearly $199 million in recapitalization.

Fiscal Year 2013 (July 1, 2012 to June 30, 2013)

ASSE Greater San Jose Joint Meeting with PASMA North, April 9, 2013, Biltmore Hotel, Santa Clara, CA

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FY 13 New General-Funded Capital Projects

Maintenance & Repair Backlog - $5M

Elmwood Support Services HVAC - $3.5M

James Ranch - $2.6M Energy Projects - $1M Warehouse Renovation at Army Site

- $750K FY 13 Capital Planning Budget -

$300K Elmwood M1 Plan & Design - $200K Animal Shelter Modular Move -

$200K Sig Sanchez Building Repairs -

$200KTotal - $13,750,000

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“What’s your criteria?” Dr. Jon Moldestad

Support end-users (See JJ’s PEP rule)

Business objectives Effectiveness and

efficiency

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3 Phases of contracting:

1.Before

2.During

3.After

Mike Wasserman – District 1Vacant- District 2Dave Cortese – Districct 3Ken Yeager – District 4Joe Simitian - District 5

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RFP and K timeline

Request for proposals:

•BidSync•State of California•Word of mouth•Cold calling•Yellow pages•Internet search•Association meetings•Others

NON-EXCLUSIVE 17

Before – the job interview

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Fairness, parity, equityBe transparentCollaboration

RFP and K t imelineThe Selection Process:• Convene a panel of experts and end-users • Review, rate the proposals and rank the competing firms• Interview top bidders• Field trips; site visits; reference checks

Contract Award:• Negotiations with prospective awardee(s)• Contract in force

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During – the job performance

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Quarterly reportsFace to face meetingsPut it in writing

Business Relationship Cycle

• Contract Life Cycle• Operator Key Players• Phases, Issues, Solutions

a. Onboarding or In Playb. Routine Operations: early stages,

ongoing, latec. End Project

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After – the exit interview

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Payment for servicesNo loose endsEnd on good terms

Purpose of Contractor Management System or What’s Your criteria?

•From 1st date to the Prom•No connection, shallow knowledge; defined, expectations, energy; commitment, investment, liabilities

•Select the safest or the best – price, reliability, metrics; competitive evaluation, acceptable risk, quantify it, 3 heads better than 1.

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How do we measure the success?

ROI – return on investment 1 to 3 – Liberty Mutual, white paper, circa 2006

1 to 6 – National Safety Council, Al Roth SLAC National Accelerator Lab presentation, September 13, 2012

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County Board of Supervisors 10/23/2012 meeting agenda

•Partial payment of $62.9M city to county debt•113,000 square-foot former San Jose City Hall, built in 1958•Civic Center master plan: eliminate leased space, consolidate services, maximize land value, generate revenue, minimize environmental impacts•3 to 5 year process•Advantages: access to freeways, light rail and other transportation systems including Mineta San Jose International Airport•Disadvantages: less energy-efficient older buildings, area below flight path (height restrictions)

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Words of wisdom

“A journey of a thousand miles begins with a single step.” Lao-tzu, The Way of Lao-tzu, Chinese philosopher (604 BC - 531 BC) 

“You may never know what results come of your action, but if you do nothing there will be no result.” Mahatma Gandhi

“Just do it.” – Nike

30SCC contracts in force - 630

Thank You!

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