BEFORE THE FEDERAL MOTOR CARRIER SAFETY by jianglifang

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									                                   BEFORE THE

            FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

             UNITED STATES DEPARTMENT OF TRANSPORTATION




                                COMMENTS OF THE

       OWNER OPERATOR INDEPENDENT DRIVERS ASSOCIATION, INC.



                          IN RESPONSE TO THE NOTICE

                      AND REQUEST FOR PUBLIC COMMENT

      PILOT PROGRAM ON NAFTA LONG-HAUL TRUCKING PROVISIONS

                     PRE-AUTHORIZATION SAFETY AUDIT FOR
                        TRANSPORTES OLYMPIC SA DE CV


                             Docket No. FMCSA-2011-0097




JAMES J. JOHNSTON                                 PAUL D. CULLEN, SR,
President                                         PAUL D. CULLEN, JR.
Owner Operator Independent                        The Cullen Law Firm, PLLC
Drivers Association, Inc.                         1101 30th Street, N.W., Suite 300
                                                  Washington, DC 20007




September 26, 2011
I.     INTRODUCTION

       A.      Statement of Interest

       These comments are submitted on behalf of the Owner-Operator Independent Drivers

Association, Inc. (―OOIDA‖ or ―Association‖) in response to the Notice and Request for Public

Comment published by the Federal Motor Carrier Safety Administration, (―FMCSA‖ or

―Agency‖), Docket No. FMCSA-2011-0097, 76 Fed. Reg. 20807 (September 12, 2011). The

Notice requests comments on ―data and information concerning the Pre-Authorization Safety

Audits (PASAs) for motor carriers that have applied to participate in the Agency‘s long-haul

pilot program,‖ specifically for Transportes Olympic de Mexico SA de CV (―Transportes

Olympic‖).

       OOIDA is a not-for-profit corporation incorporated in 1973 under the laws of the State of

Missouri with its principal place of business in Grain Valley, Missouri. OOIDA is the largest

international trade association representing the interests of independent owner-operators, small-

business motor carriers, and professional drivers. The approximately 151,000 members of

OOIDA are professional drivers and small-business men and women located in all 50 states and

Canada who collectively own and operate approximately 200,000 individual heavy-duty trucks.

Single-truck motor carriers represent nearly half of the total of active motor carriers operated in

the United States. The mailing address of the Association is:

                     Owner-Operator Independent Drivers Association, Inc.
                                       P.O. Box 1000
                                    1 NW OOIDA Drive
                               Grain Valley, Missouri 64029
                                      www.ooida.com

       The Association actively promotes the views of professional drivers and small-business

truckers through its interaction with state and federal government agencies, legislatures, courts,



                                                 2
other trade associations, and private businesses to advance an equitable and safe environment for

commercial drivers. OOIDA is active in all aspects of highway safety and transportation policy

and represents the positions of professional drivers and small-business truckers in numerous

committees and various forums on the local, state, national, and international levels. In sum,

OOIDA‘s mission includes the promotion and protection of the interests of independent truckers

on any issue which might touch on their economic well-being, their working conditions, or the

safe operation of their motor vehicles on the nation‘s highways. OOIDA files these comments

because FMCSA‘s notice raises more questions than it answers about its ability and efforts to

ensure Mexican motor carrier compliance with U.S. safety rules.

       B.      Summary of Comments

       FMCSA‘s announcement that Mexican motor carrier Transportes Olympic has applied

for authority to operate throughout the United States and has passed a PASA raises the following

issues: 1) How could Transportes Olympic have been the subject of a PASA so soon after the

Department of Transportation‘s Inspector General reported that FMCSA has yet to devise a plan

for conducting PASAs under this Pilot Program? 2) Under what standards does FMCSA

represent that its September 14, 2011, Notice fulfills the requirement that it publish

―comprehensive data‖ related to each PASA it conducts? 3) Why did FMCSA remove

information about Transportes Olympic from its website and deny OOIDA‘s request, under 49

C.F.R. § 365.117, for a copy of its application for authority?

       C.      Statutory and Regulatory Setting

       OOIDA‘s comments are first focused on several requirements placed upon FMCSA as a

condition for commencing a pilot program and for granting motor carrier authority. The




                                                 3
Department of Transportation and Related Agencies Appropriations Act, 2002, Pub. L. 107-87

provides in part:

            SEC. 350. SAFETY OF CROSS-BORDER TRUCKING BETWEEN
            UNITED STATES AND MEXICO. (a) No funds limited or appropriated
            in this Act may be obligated or expended for the review or processing
            of an application by a Mexican motor carrier for authority to operate
            beyond United States municipalities and commercial zones on the
            United States-Mexico border until the Federal Motor Carrier Safety
            Administration—
            (1)(A) requires a safety examination of such motor carrier
            to be performed before the carrier is granted conditional operating
            authority to operate beyond United States municipalities
            and commercial zones on the United States-Mexico border;
            (B) requires the safety examination to include—

                                              * * *
             (a)(1)(B)(vii) an evaluation of that motor carrier‘s safety inspection,
            maintenance, and repair facilities or management
            systems, including verification of records of periodic vehicle
            inspections;

                                              * * *
             (a)(1)(C) requires that—
            (i) Mexican motor carriers with three or fewer commercial
            vehicles need not undergo on-site safety examination;
            however 50 percent of all safety examinations of all Mexican
            motor carriers shall be conducted onsite; and
            (ii) such on-site inspections shall cover at least 50
            percent of estimated truck traffic in any year.
                                              * * *
            (a)(2) requires a full safety compliance review of the carrier
            consistent with the safety fitness evaluation procedures set
            forth in part 385 of title 49, Code of Federal Regulations,
            and gives the motor carrier a satisfactory rating, before the
            carrier is granted permanent operating authority to operate
            beyond United States municipalities and commercial zones on
            the United States-Mexico border, and requires that any such
            safety compliance review take place within 18 months of that
            motor carrier being granted conditional operating authority,
            provided that—
            (A) Mexican motor carriers with three or fewer
            commercial vehicles need not undergo onsite compliance
            review; however 50 percent of all compliance reviews of
            all Mexican motor carriers shall be conducted on-site; and


                                                 4
           (B) any Mexican motor carrier with 4 or more commercial
           vehicles that did not undergo an on-site safety exam
           under (a)(1)(C), shall undergo an on-site safety compliance
           review under this section.


Section 6901 of Pub. L. 110-28, the ‗‗U.S. Troop Readiness, Veterans‘ Care, Katrina

Recovery, and Iraq Accountability Appropriations Act, 2007‖ provides in part:

            (b) Prior to the initiation of the pilot program described in subsection (a)
           in any fiscal year—
           (1) the Inspector General of the Department of Transportation shall
           transmit to Congress and the Secretary of Transportation a report
           verifying compliance with each of the requirements of subsection (a) of
           section 350 of Public Law 107–87, including whether the Secretary of
           Transportation has established sufficient mechanisms to apply Federal
           motor carrier safety laws and regulations to motor carriers domiciled in
           Mexico that are granted authority to operate beyond the United States
           municipalities and commercial zones on the United States-Mexico
           border and to ensure compliance with such laws and regulations; and
           (2) the Secretary of Transportation shall—
           (A) take such action as may be necessary to address any issues raised in
           the report of the Inspector General under subsection (b)(1) and submit a
           report to Congress detailing such actions; and
           (B) publish in the Federal Register, and provide sufficient opportunity
           for public notice and comment—
           (i) comprehensive data and information on the preauthorization safety
           audits conducted before and after
           the date of enactment of this Act of motor carriers domiciled in Mexico
           that are granted authority to operate beyond the United States
           municipalities and commercial zones on the United States-Mexico
           border;
                                              * * *
           (v) a list of Federal motor carrier safety laws and regulations, including
           the commercial drivers license requirements, for which the Secretary of
           Transportation will accept compliance with a corresponding Mexican
           law or regulation as the equivalent to compliance with the United States
           law or regulation, including for each law or regulation an analysis as to
           how the corresponding United States and Mexican laws and regulations
           differ.




                                                5
II.    OOIDA’S COMMENTS

       A.      OOIDA Questions FMCSA’s Readiness to Conduct PASAs

       According to a report of the Inspector General of the Department of Transportation

issued on August 19, 2011, reviewing FMCSA‘s compliance with Section 350, FMCSA:


            has not yet met those requirements related to conducting safety reviews
            onsite in Mexico. Specifically, FMCSA has not finalized its plans for nor
            identified the specific process it will use to comply with five
            requirements to conduct 50 percent of PASAs and compliance reviews in
            Mexico, and its policy on conducting PASAs for the new pilot program
            does not address where the reviews will be conducted.

        IG Report at 5.

       How could FMCSA initiate and complete a PASA of Transportes Olympic on August 25,

2011, with the serious lack of preparation identified by the IG just one week before? The

possibility of such speedy progress in correcting such deficiencies is even more doubtful given

the agency‘s assertion reported by the IG that ―they had previously informed us in April and May

2011 that they did not plan to conduct reviews in Mexico due to safety concerns.‖ For example,

by what plan or process could FMCSA hope to review a Mexican motor carrier‘s ―safety,

inspection, maintenance, and repair facilities or management systems, including verification of

records of period vehicle inspections‖ under Section 350(a)(1)(B)(vii)?

       Under Section 6901, subsequent to issuance of the IG‘s report, and prior to initiation of

the Pilot Program, the Secretary is required to ―(A) take such action as may be necessary to

address any issues raised in the report of the Inspector General under subsection (b)(1) and

submit a report to Congress detailing such actions.‖ As of the close of the comment period for

this PASA Notice, OOIDA is unaware of any such actions by FMCSA or of any report to




                                                6
Congress. OOIDA cannot identify any authority FMCSA has to circumvent these rules and even

begin conducting PASAs.

       On September 9, 2011, Transportes Olympic‘s pending application for operating

authority appeared in the FMCSA Register. The following week a notice was published in the

Federal Register that the carrier had passed a Pre-Authority Safety Audit (PASA) on August 25.

Not only does OOIDA question the authority of FMCSA to take such actions, FMCSA‘s lack of

a plan and process to conduct PASAs, and now, its lack of a report to Congress on its efforts to

create such a plan and process, make the information contained in the September 14 PASA

notice both incomprehensible and meaningless to the public. The Notice is comprised of several

pieces of identifying information about Transportes Olympic and a binary checklist reporting on

whether FMCSA concluded that Transportes Olympic passed or failed in certain categories.

There is scant data provided, never mind the ―comprehensive data‖ required to be published by

Section 6901.

       OOIDA would expect that a Notice providing comprehensive data on a PASA would

include the agency‘s methodology and specific data about the motor carrier, the equipment, and

the drivers to be involved in the Pilot Program. Such information should answer the following

questions:

             Was this PASA conducted on-site at the motor carrier‘s facilities or elsewhere?

             Did the FMCSA use contractors to conduct these PASAs?

             If FMCSA used contractors, what procedures and instructions were the contractors

             given?

             If FMCSA used contractors, who made the final determination that the motor carrier

             passed or failed the PASA?


                                                 7
What records and data did FMCSA review?

What were the sources of such data?

What kinds of safety records and data concerning the motor carrier and its drivers

were available to the safety auditors from Mexican state or federal databases during

the PASA? Were any such safety records and data non-existent, missing, or

unavailable?

Which violations of Mexican laws and rules did FMCSA use as equivalent to U.S.

―acute and critical‖ regulations? What kind of data was available about such

violations?

Who were the drivers reviewed as part of the PASA and what information was

available, or not available, about them from U.S. databases and Mexican state and

federal databases?

Exactly what vehicles were inspected during the PASA, and what was the history of

those vehicles‘ compliance with the FMCSRs in the United States? What, if any, data

in the possession of FMCSR enforcement officials was used to review Transportes

Olympic‘s compliance with Mexican law?

What affiliations with U.S.-domiciled motor carriers did Transportes Olympic

disclose, or the auditor learn of, during the PASA? Did FMCSA review the

information in its databases for the companies that appear to be affiliated with

Transportes Olympic?

OOIDA does not believe that meaningful hours-of-service rules exist in Mexico. By

what standard and documents did FMCSA verify a system of HOS compliance

(including recordkeeping and retention) with hours-of-service rules? Did FMCSA


                                      8
          look for a history of Transportes Olympic‘s compliance with Mexico‘s hours-of-

          service rules?

          Why did FMCSA review ―Phase 1, Factor Five‖ regarding hazardous material

          requirements when it announced that participants in the Pilot Program would not be

          permitted to haul hazmat? Does FMCSA intend to remove that restriction in the

          future?

          Normally, when an inspector sees an acute or critical violation in a motor carrier‘s

          records or practices, such an observation triggers an immediate and complete

          compliance review of that carrier, and the inspector has the authority to decide that a

          full compliance review is necessary and to begin such a compliance review. On Page

          11 of a ―PASA Memo‖ dated July 18, 2011, and placed in the Pilot Program docket at

          Docket No. FMCSA-2011-0097-2165, FMCSA instructs that, should, during a

          PASA, a safety auditor find an acute or critical violation that would ordinarily trigger

          a full compliance review, he or she is to refer such a finding to the auditor‘s

          supervisor to make the decision as to whether to proceed with a full compliance

          review. Is this truly the procedure being used in PASAs being conducted in the 2011

          Mexican truck Pilot Program? Why do safety auditors conducting PASA‘s not have

          full discretion to begin full compliance reviews - as is normal procedure with U.S.

          carriers? And when such decisions are referred to the auditor‘s supervisor, what

          standards are those supervisors using to decide whether or not to begin a full

          compliance review?

       The Notice is simply devoid of any data upon which the public could provide meaningful

comment on either the sufficiency of FMCSA‘s efforts to comply with the statutory requirements



                                                9
for the Pilot Program or its own procedures, whatever those may be. The Notice is devoid of any

data upon which the public could provide meaningful comments on whether or not Transportes

Olympic is prepared to meet the requirements of the Pilot Program and the requirements to

comply with all applicable statutes and regulations as a condition for receiving authority to

operate in the United States. At a minimum, OOIDA does not believe that FMCSA has

complied with its PASA Notice requirements.

       B.      Transportes Olympic Information Found Elsewhere

               1.      FMCSA’S Nondisclosure of Transportes Olympic Information

       Because of the paucity of data on Transportes Olympic provided in FMCSA‘s PASA

Notice, OOIDA endeavored to gather what information it could to comment on the likelihood

that Transportes Olympic could pass a PASA and on the carrier‘s willingness and ability to

comply with all applicable U.S. statutes and regulations as required by 49 U.S.C. §13902(a).

       Just as with the motor carrier Grupo Behr, OOIDA‘s research reveals that FMCSA has

sought to hide, rather than disclose to the public, significant information concerning Transportes

Olympic. First, OOIDA observed that, during this PASA Notice comment period, FMCSA

apparently removed from public view previously available data about Transportes Olympic

gathered under the previous Demonstration Project. See the FMCSA‘s Licensing and Insurance

Public database for Transportes Olympic, USDOT Number 555188Z. It states, ―A PASA

conducted during the previous MX Long Haul Demonstration Program has been temporarily

removed from this carrier‘s Census record but can be viewed using EDMS‖ (See Exhibit A).

This removal of information is particularly disturbing because in its April 2011 Notice regarding

this Pilot Program, the agency announced that it intended to give prior participants in the

Mexican truck Demonstration Project credit for the time in which they operated under that


                                                10
program. What information was contained in the record that was ―temporarily‖ removed during

this PASA Notice comment period? Why was this information removed during the period of

time the public had to protest Transportes Olympic‘s application for operating authority (10 days

from its publication in the FMCSA Register on September 9, 2011)?

       Furthermore, if the safety auditor is to conduct a Level I or Level V inspection of each

piece of equipment to be used in the Pilot Program, then that inspection data should be uploaded

and available for public review in the CSA database. No such data is available for Transportes

Olympic in the CSA database today.

       Additionally, FMCSA has refused OOIDA‘s request for a copy of Transportes Olympic‘s

application for operating authority. Under 49 C.F.R. §365.117, after public notice, interested

persons may request a copy of the application by contacting the FMCSA-designated contract

agent (as identified in the FMCSA Register). OOIDA‘s request was not unusual. OOIDA

regularly requests from FMCSA, and regularly receives from FMCSA, without issue, copies of

applications for motor carrier authority by U.S. domiciled individuals for the purpose of

monitoring, and sometimes protesting, applications for motor carrier and broker authority by

persons who have a history of not complying with motor carrier laws and statutes

       In this case, on multiple occasions an OOIDA representative attempted to obtain (or

review) a copy of Transportes Olympic‘s application. Those attempts were made via phone,

email, and in person at FMCSA headquarters in Washington, D.C. On each attempt he was

rebuffed. OOIDA‘s representative who personally visited FMCSA headquarters to make this

request was specifically told that he (the OOIDA representative) was not authorized to obtain or

view this information.




                                                11
       FMCSA‘s refusal to comply with its own disclosure regulation under §365.117 appears

typical of the opaque and secretive manner in which it has sought to conduct this Pilot Program.

When Congress passed Sections 350 and 6901, it clearly intended that the agency be especially

forthcoming and transparent in the establishment and administration of the Pilot Program.

FMCSA appears to have taken steps to make its decisions and the information it relies upon for

its decisions hidden from public view and less transparent.

                2.     The Safety Data on Transportes Olympic’s
                       Probable Affiliated Motor Carriers

       One of the reasons that OOIDA asks above whether any affiliated motor carriers were

identified and reviewed as part of the PASA, is that this information is normally of interest to

FMCSA. FMCSA‘s OP-1 application of operating authority contains ―Section V – Affiliations.‖

which states:

            Disclose any relationship you have or have had with any other FMCSA-
            regulated entity (including entities licensed by the FHWA, OMCS, or
            ICC) within the past 3 years. Examples include, but are not limited to, a
            percentage of stock ownership, a loan, or a management position. If this
            requirement applies to you, provide the name of the company, MC/FF
            Number, US DOT Number, and that company‘s latest DOT safety rating.
            If you require more space, attach the information to this application
            form.


       Additionally, in the ―PASA Memo‖ dated July 18, 2011, and placed in the Pilot Program

docket at Docket No. FMCSA-2011-0097-2165, FMCSA instructs safety auditors to determine:

―Does the motor carrier have a parent company in the United State or any affiliation or

association with any motor carrier any country of domicile operating or previously operated in

the United States? Although the PASA Memo instructs the collection of this information, this

PASA Notice is completely silent as to Transportes Olympic‘s possible affiliations and how they

did or did not affect the results of the PASA.


                                                 12
       OOIDA believes that reviewing an applicant‘s motor carrier affiliations is an important

component of considering that applicant‘s fitness to operate as a motor carrier. In many cases

the management of the affiliated company is one and the same as that of the applicant (as it

appears here) and the safety practices and record of the affiliated company are closely, if not

exactly, predictive of the applicant‘s willingness and ability to comply with the FMCSRs. Both

a report by the Government Accountability Office and Congressional Testimony by the

Chairman of the National Transportation Safety Board, Deborah Hersman, have raised concerns

that FMCSA needs to be doing a better job of identifying past affiliations in order to identify

new motor carrier applicants who may not be qualified to be granted operating authority. See

GAO report number GAO-09-924 ―MOTOR CARRIER SAFETY Reincarnating Commercial

Vehicle Companies Pose Safety Threat to Motoring Public; Federal Safety Agency Has Initiated

Efforts to Prevent Future Occurrences‖ July 2009 (Attached as Exhibit C); and Testimony of the

Honorable Deborah A.P. Hersman, Chairman, National Transportation Safety Board, Before the

U.S. Senate Committee on Commerce, Science, and Transportation, Subcommittee on Surface

Transportation and Merchant Marine Infrastructure, Safety, and Security, Hearing on Oversight

of Motor Carrier Safety Efforts, Washington, DC, April 28, 2010, (Attached as Exhibit D).

       Through media records and by reviewing online data, OOIDA believes that Transportes

Olympic is owned by an individual who also currently owns two U.S. based motor carriers,

OMC Carriers, LLC, and Fernando Paez Transport Inc. d.b.a. Transportes Olympic. All three

motor carriers share the same exact physical and email address in McAllen, Texas.

       The available safety records of both of these U.S.-based motor carriers are deficient in the

same BASIC measurement – Driver Fitness (See Exhibit B). Not only are these scores deficient,



                                                13
but OOIDA believes that they are artificially low by the apparent failure of law enforcement to

place the driver out of service for violations that should have lead to an OOS order. The

common example of this is the violation of 49 C.F.R. § 391.11(b)(2), ―Non-English speaking

driver.‖ Under the Commercial Vehicle Safety Alliance‘s North American Standard Out-of-

Service Criteria, drivers found to be in violation of this rule are to be placed out of service.

These records show that sometimes an OOS order was issued for this violation and other times it

was not - including inspections conducted by U.S., rather than state, inspectors.

       OOIDA is unaware of what standards and discretion FMCSA assigns to its inspectors to

apply, or not apply, the various CVSA Out-of-Service Criteria. But OOIDA is certain that

inspectors‘ failure to issue out-of-service orders to a motor carrier in accord with the CVSA Out-

of-Service Criteria has the effect of giving that motor carriers a better safety rating than they

earn. An OOS designation will add 2 points to the severity weighting in the SMS of CSA. If

FMCSA officials continued to issue, or not issue, out-of-service orders at their discretion rather

than in accord with the CVSA Out-of-Service Criteria, this practice will create serious doubts

about the validity and reliability of the data collected for this Pilot Program.

IV.    CONCLUSION

       This PASA provides no information to support the public statements made by

Administrator Anne Ferro that the agency is ―raising the bar to entry ...‖ The Transportes

Olympic PASA Notice contained virtually no useful, never mind comprehensive, data permitting

the public to submit meaningful comments on FMCSA‘s determination that the carrier passed

that review. OOIDA, by researching publicly available information, has demonstrated with these

comments that much more information is available to FMCSA than it published. This Notice

continues to demonstrate that FMCSA intends to give special treatment to Mexico–domiciled



                                                  14
motor carriers under the proposed Pilot Program, not the ―national treatment‖ required under

NAFTA. This continues to be an inequitable policy to U.S.–based drivers who must comply

with the far more stringent U.S. standards. The record created thus far is hopelessly inadequate

and cannot support a finding that the proposed Pilot Program is designed to achieve a level of

safety that is equivalent to, or greater than, the level of safety that would otherwise be achieved.

The Pilot Program continues to be on course to create a two-tiered safety regime under which

U.S.–domiciled motor carriers and drivers will be required to follow a gold standard for

transportation safety while their Mexican competitors follow a significantly inferior standard that

will put the safety of Americans traveling on our highways in jeopardy.

       OOIDA requests that these comments be placed in the official agency record and that the

complete record be recertified to the U.S. Court of Appeals for the District of Columbia Circuit

in Owner-Operator Independent Drivers Association, Inc., v. United States Department of

Transportation, et. al, Case No. 11-1251.

                                                              Respectfully submitted,


                                                              Paul D. Cullen, Jr.               .
JAMES J. JOHNSTON                                             PAUL D. CULLEN, SR,
President                                                     PAUL D. CULLEN, JR.
Owner Operator Independent                                    The Cullen Law Firm, PLLC
Drivers Association, Inc.                                     1101 30th Street, N.W., Suite 300
                                                              Washington, DC 20007


September 26, 2011




                                                 15
EXHIBIT A
                                                                                                                                                        Menu    Choose Menu Option


                                                                                          Carrier Search
     USDOT                          Docket                                                                                                                                               View Details
                      Prefix                                                 Legal Name                                          DBA Name                       City       State
     Number                         Number                                                                                                                                             (Report is PDF)
                                                     TRANSPORTES OLYMPIC DE MEXICO S DE RL                                    TRANSPORTES
     555188Z           MX           239409                                                                                                                 APODACA           NL
                                                                    DE CV                                                       OLYMPIC                                               HTML          Report
 Note: March 24, 2009 : This carrier's status was changed from OP1-MX to OP-2 due to the ending of the MX Long-Haul Demonstration Project.
 A PASA conducted during the previous MX Long Haul Demonstration Program has been temporarily removed from this carrier's Census record but can
 be viewed using EDMS.

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September 26, 2011


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                                                                                                                                                                       EXHIBIT A
EXHIBIT B
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                                     Page 1 of 19




  OMC CARRIERS LLC                                                                                                   DOT#:1281837



  The SMS provides an assessment of a motor carrier's on-road performance and investigation results within the Behavior Analysis and Safety
  Improvement Categories (BASICs). Assessments cover 24 months of activity and results are updated monthly. For current Motor Carrier Safety
  Ratings visit SAFER and for current operating authority and insurance information visit Licensing and Insurance (L&I) system.




                                                                                                                                                SUMMARY OF ACTIVITIES
                                                                                                                                                                                        Number   OOS Rate
                                                                                            PERFORMANCE
     BASICs Overview                                                                                          BASICs                        Total Inspections                             93         
     (Based on a 24-month record ending August 26, 2011)                            On-Road Investigation      Status                                         Vehicle Inspections:        66       15 %
                                                                                                             
             Unsafe Driving                                                         40.2%                                                                       Driver Inspections:       91       5%
                                                                                                                                                  Hazardous Materials Inspections:        0        0%
                                                                                                                  
             Fatigued Driving (Hours-of-Service)                                    16.6%                                                                 HM Placard Inspections:         0        0%

                                                                                                                                            Total Crashes                                 0          
             Driver Fitness                                                         87.1%               
                                                                                                                                                                       Tow-aways:         0          
                                                                                       No                                                                        Injuries/Fatalities:     0          
             Controlled Substances and Alcohol                                                          
                                                                                   Violations
                                                                                                                                                RECENT INVESTIGATIONS
                                                                                                                  
             Vehicle Maintenance                                                    52.5%               
                                                                                                                                           There are no recent investigations.
                                                                                         Not                      
             Cargo-Related
                                                                                        Public

                                                                                         Not                      
             Crash Indicator                                                                            
                                                                                        Public




    ICON LEGEND

                 Serious violation cited within last 12 months from an investigation.

                 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.

    Carrier Registration Information as of August 26, 2011
       Legal Name                  Omc Carriers Llc                                                        Vehicle Miles Traveled                                                   950,833
       DBA Name                                                                                             VMT Year                                                                   2010
       DOT#                        1281837                                                                 Power Units                                                              20
       MC or MX#                   MC-492180                                                               DUNS Number
       Address                     1424 East Ridge Road Suite 1                                            Drivers                                                                  20
                                   Mcallen,  TX  78503                                                     Carrier Operation                                                        Interstate
       Telephone                   (956) 630-6173                                                          Passenger                                                                No
       Fax                         (956) 618-2106                                                          Subject to Placardable HM Threshold                                      No
       Email                       olympic7@olympictrailers.com                                            HHG                                                                      No
                                                                                                           New Entrant                                                              No

    Operation Classification:
   X AUTHORIZED FOR HIRE                                                           EXEMPT FOR HIRE                                                              PRIVATE PROPERTY
       PRIVATE PASSENGER, BUSINESS                                                 PRIVATE PASSENGER, NON-BUSINESS                                              MIGRANT
       U. S. MAIL                                                                  FEDERAL GOVERNMENT                                                           STATE GOVERNMENT
       LOCAL GOVERNMENT                                                            NDIAN TRIBE                                                                  OTHER

    Cargo Carried:
       GENERAL FREIGHT                                                        HOUSEHOLD GOODS                                           METAL; SHEETS, COILS, ROLLS
       MOTOR VEHICLES                                                         DRIVE AWAY/TOWAWAY                                        LOGS, POLES, BEAMS, LUMBER
       BUILDING MATERIALS                                                     MOBILE HOMES                                              MACHINERY, LARGE OBJECTS
       FRESH PRODUCE                                                          LIQUIDS/GASES                                             INTERMODAL CONTAINERS
       PASSENGERS                                                             O L FIELD EQUIPMENT                                       LIVESTOCK


                                                                                  EXHIBIT B
                                                                                  1 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                  Page 2 of 19



       GRAIN, FEED, HAY                                       COAL, COKE                        MEAT
       GARBAGE, REFUSE, TRASH                                 U.S. MAIL                         CHEMICALS
       COMMODITIES DRY BULK                                   REFRIGERATED FOOD                 BEVERAGES
   X PAPER PRODUCTS                                           UTILITY                           FARM SUPPLIES
       CONSTRUCTION                                           WATER WELL                    X STEEL, PIPES.




                          Vehicle Type Breakdown
                                           Vehicle Type                    Owned   Term Leased                  Trip Leased
                      Straight Trucks                                                                                 
                      Truck Tractors                                         20                                       
                      Trailers*                                              40                                       
                      Hazmat Cargo Tank Trailers*                                                                     
                      Hazmat Cargo Tank Trucks                                                                        
                      Motor Coach                                                                                     
                      School Bus 1-8 Passengers                                                                       
                      School Bus 9-15 Passengers                                                                      
                      School Bus 16+ Passengers                                                                       
                      Mini-Bus 16+ Passengers                                                                         
                      Van 1-8 Passengers                                                                              
                      Van 9-15 Passengers                                                                             
                      Limousine 1-8 Passengers                                                                        
                      Limousine 9-15 Passengers                                                                       
                      Limousine 16+ Passengers                                                                        


         * Indicates power units not used by the Carrier Safety Measurement System when calculating total power units.




                                                                                  EXHIBIT B
                                                                                  2 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                              Page 3 of 19



    
                          Unsafe Driving
                          Operation of CMVs by drivers in a dangerous or careless manner. (FMCSR Parts 392 and 397)




                               BASIC Overall Status
                               Does not exceed intervention threshold based upon On-road Performance
                               and Investigation Results.
                               (Based on a 24-month record ending August 26, 2011)




        On-road Performance Overview

         

                                                                                  MEASURE: 4.44
                                                                                  PERCENTILE: 40.2%

                                                                                 (Threshold: 65%)

                                                                             
                                                                            Average Power Units: 17
                                                                            Vehicle Miles Traveled (VMT): 950,833
                                                                            VMT Year: 2010   VMT Source: Registration - MCS150

                                                             Average Power Units (APU) x Utilization Factor (UF): 17.3
                                                             Total Inspections with Unsafe Driving Violations: 6
                                                             Total Unsafe Driving Violations: 6
        The Unsafe Driving measure/percentile is based on Roadside Inspection reports. Some Unsafe Driving violations are reported when a Roadside Inspection was
        performed following a traffic stop for the Unsafe Driving violation. These reported violations do not always result in the issuance of a citation to the driver .




        UNSAFE DRIVING VIOLATIONS


                                                                                                                              # Total               # OOS               Violation
        Violation           Description
                                                                                                                            Violations            Violations             Weight
   392.2C                 Failure to obey traffic control device                                                                   2                          0               5
   392.2LC                Improper lane change                                                                                     1                          0               5
   392.2S                 Speeding                                                                                                 2                          0               5

   392.2-SLLS2            State/Local Laws - Speeding 6-10 miles per hour over the speed limit                                     1                          0               4




        INSPECTION HISTORY


                                     Report                                                         Vehicle                                                   Measure

                                                                                                                                       Severity                Time       Time Severity
             Inspection
               Date
                                           #                       ST             Plate #        Lic ST         Type                   Weight                 Weight        Weight
                                                                                                                                         (A)                    (B)          (AxB)
    1       8/11/2011              TX11670ERG02                     TX          RJ3S38              TX          Truck Tractor              5                      3               15
              Violation: 392 2C Failure to obey traffic control device   (Non-OOS)                                                                 5     
    2       7/16/2011              NE00DG000041                     NE          RJ3S37              TX          Truck Tractor              4                      3               12
              Violation: 392 2-SLLS2 State/Local Laws - Speeding 6-10 miles per hour over the speed limit (Non-OOS)                                4       
    3       6/9/2011               IL0001570445                         L       RJ3539              TX          Truck Tractor              5                      3               15
              Violation: 392 2LC Improper lane change   (Non-OOS)                                                                                  5     
    4       4/12/2011              KS00YM002889                     KS          RJ3S40              TX          Truck Tractor              5                      3               15
              Violation: 392 2C Failure to obey traffic control device   (Non-OOS)                                                                 5     
    5       12/27/2010             LALAMH003809                     LA          RF6Z20              TX          Truck Tractor              5                      2               10
              Violation: 392 2S Speeding   (Non-OOS)                                                                                               5       
    6       10/13/2010             TX107Y0EEL06                     TX          RG3N80              TX          Truck Tractor              5                      2               10
              Violation: 392 2S Speeding   (Non-OOS)                                                                                               5       



        Investigation Results Overview

         

                   No serious violation(s) discovered


                                                                                  EXHIBIT B
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    Certain viola ions found during an inves igation can result in a
    for a BASIC. The status remains for 12 months following the
    inves igation.




    SERIOUS VIOLATIONS FROM INVESTIGATIONS



         There are no Serious Violations to display


    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                           




                                                                                  EXHIBIT B
                                                                                  4 of 45
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                                    Sum of Time Severity Weight (AxB)                             77                         
         Measure     =                                                                         =      = 4.44                 => 40.2%
                                                      APU * UF                                   17.3                        




                   Fatigued Driving
                   Operation of CMVs by drivers who are ill, fatigued, or in non-compliance with the Hours-of-Service (HOS) regulations. (FMCSR Parts 392 and 395)




                         BASIC Overall Status
                         Does not exceed intervention threshold based upon On-road Performance
                         and Investigation Results.
                         (Based on a 24-month record ending August 26, 2011)




     On-road Performance Overview

      

                                                                        MEASURE: 0.27
                                                                        PERCENTILE: 16.6%

                                                                       (Threshold: 65%)

                                                                 
                                                                Relevant Inspections: 92
                                                                Total Inspections with Fatigued Driving Violations: 7
                                                                Total Fatigued Driving Violations: 7




     FATIGUED DRIVING VIOLATIONS


                                                                                                                 # Total                  # OOS       Violation
    Violation       Description
                                                                                                                Violations              Violations     Weight
   395.3(a)(2)     Requiring or permitting driver to drive after 14 hours on duty                                       2                       1             7

   395.8           Log violation (general/form and manner)                                                              4                       0             2


                                                                                  EXHIBIT B
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   395.8(f)(1)           Driver’s record of duty status not current                                                              1                         0                         5




        INSPECTION HISTORY


                                    Report                                                        Vehicle                                                  Measure

                                                                                                                                     Severity                   Time         Time Severity
             Inspection
               Date
                                          #                    ST           Plate #           Lic ST             Type                Weight                    Weight          Weight
                                                                                                                                       (A)                       (B)            (AxB)
    1       7/22/2011             SD003A018307                   SD       RJ3S37                 TX              Truck Tractor            9                       3                      27
              Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (OOS)                                      9      =7 (viol weight) + 2 (OOS) 
    2       5/6/2010              TX103IW2LA0C                   TX       RG3N80                 MX              Truck Tractor            2                       1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                              2     
    3       2/1/2010              KS00KS025185                   KS       RF6Z19                 TX              Truck Tractor            7                       1                      7
              Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (Non-OOS)                                  7       
    4       1/7/2010              NM3564101842                   NM       RF6Z21                 TX              Truck Tractor            2                       1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                              2     
    5       11/29/2009            US0802010394                   US       2CB904                 TX              Truck Tractor            2                       1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                              2     
    6       10/31/2009            TX098G0EJL01                   TX       RG3N80                 TX              Truck Tractor            5                       1                      5
              Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                                      5       
    7       9/13/2009             US1358001007                   US       RF6Z21                 TX              Truck Tractor            2                       1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                              2     



        Investigation Results Overview

         

                   No serious violation(s) discovered

        Certain viola ions found during an inves igation can result in a
        for a BASIC. The status remains for 12 months following the
        inves igation.




        SERIOUS VIOLATIONS FROM INVESTIGATIONS



                There are no Serious Violations to display


        Use this page to view graphs of various aspects of your safety performance.

         


                                                                                                                                                                                                 




                                                                                  EXHIBIT B
                                                                                  6 of 45
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                              Sum of Time Severity Weight (AxB)                       47                      
     Measure     =                                                                  =     = 0.27              => 16.6%
                                     Sum of Time Weight (B)                           174                     




               Driver Fitness
               Operation of CMVs by drivers who are unfit to operate a CMV due to lack of training, experience, or medical qualifications. (FMCSR Parts 383 and 391)




                     BASIC Overall Status

                                                                                  EXHIBIT B
                                                                                  7 of 45
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                               Exceeds the Intervention Threshold to be prioritized for intervention
                               (Based on a 24-month record ending August 26, 2011)




        On-road Performance Overview

         

                                                                              MEASURE: 0.52
                                                                              PERCENTILE: 87.1%

                                                                             (Threshold: 80%)

                                                                       
                                                                      Relevant Inspections: 91
                                                                      Total Inspections with Driver Fitness Violations: 7
                                                                      Total Driver Fitness Violations: 8




        DRIVER FITNESS VIOLATIONS


                                                                                                                        # Total                 # OOS                     Violation
        Violation           Description
                                                                                                                       Violations             Violations                   Weight
   391.11(b)(2)            Non-English speaking driver                                                                         7                        3                           4
   391.11(b)(5)            Driver lacking valid license for type vehicle being operated                                        1                        1                           8




        INSPECTION HISTORY


                                   Report                                                     Vehicle                                                   Measure

                                                                                                                                   Severity              Time                Time Severity
             Inspection
                                         #                   ST            Plate #         Lic ST          Type                    Weight               Weight                 Weight
               Date
                                                                                                                                     (A)                  (B)                   (AxB)
    1       4/25/2011            US1010007727                  US         RJ3S40              TX           Truck Tractor               14                    3                          42
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                    4     
              Violation: 391.11(b)(5) Driver lacking valid license for type vehicle being operated (OOS)                                      10      =8 (viol weight) + 2 (OOS) 
    2       4/12/2011            KS00YM002889                  KS         RJ3S40              TX           Truck Tractor                6                    3                          18
              Violation: 391.11(b)(2) Non-English speaking driver (OOS)                                                                        6     =4 (viol weight) + 2 (OOS)
    3       1/11/2011            TX110B9DFK03                  TX         RJ3S37              TX           Truck Tractor                6                    2                          12
              Violation: 391.11(b)(2) Non-English speaking driver (OOS)                                                                        6     =4 (viol weight) + 2 (OOS)
    4       2/10/2010            TX1015W1LA0E                  TX         932DN3             MX            Truck Tractor                4                    1                          4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                    4     
    5       12/9/2009            TX099JW1LA08                  TX         2CB904              TX           Truck Tractor                4                    1                          4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                    4     
    6       10/20/2009           TX0985W1PH0J                  TX         R42112              TX           Truck Tractor                4                    1                          4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                    4     
    7       10/16/2009           US1353000659                  US         R42111              TX           Truck Tractor                6                    1                          6
              Violation: 391.11(b)(2) Non-English speaking driver (OOS)                                                                        6     =4 (viol weight) + 2 (OOS)



        Investigation Results Overview

         

                   No serious violation(s) discovered

        Certain viola ions found during an inves igation can result in a
        for a BASIC. The status remains for 12 months following the
        inves igation.




                                                                                  EXHIBIT B
                                                                                  8 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                  Page 9 of 19



    SERIOUS VIOLATIONS FROM INVESTIGATIONS



         There are no Serious Violations to display


    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                           




                                                                                  EXHIBIT B
                                                                                  9 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                             Page 10 of 19



                                  Sum of Time Severity Weight (AxB)                        90                       
        Measure     =                                                                    =     = 0.52               => 87.1%
                                        Sum of Time Weight (B)                             173                      




                  Controlled Substances/Alcohol
                  Operation of CMVs by drivers who are impaired due to alcohol, illegal drugs, and misuse of prescription or over-the-counter medications. (FMCSR Part 392)




                        BASIC Overall Status
                        Does not exceed intervention threshold based upon On-road Performance
                        and Investigation Results.
                        (Based on a 24-month record ending August 26, 2011)




    On-road Performance Overview

     

                                                               MEASURE: 0
                                                               PERCENTILE:
                                                              No Violations
                                                              (Threshold: 80%)

                                                         
                                                        Relevant Inspections: 91
                                                        Total Inspections with Controlled Substances/Alcohol Violations: 0
                                                        Total Controlled Substances/Alcohol Violations: 0




    The Controlled Substances and Alcohol measure/percentile is based on Roadside Inspection reports. Some Controlled Substances and Alcohol violations are
    reported when a Roadside Inspection was performed following a traffic stop for the Controlled Substances and Alcohol violation. These reported violations do not
    always result in the issuance of a citation to the driver .




    CONTROLLED SUBSTANCES AND ALCOHOL VIOLATIONS



           There are no Violations to display


    INSPECTION HISTORY


           There are no Inspections with violations to display



    Investigation Results Overview

     

            No serious violation(s) discovered

    Certain viola ions found during an inves igation can result in a
    for a BASIC. The status remains for 12 months following the
    inves igation.




    SERIOUS VIOLATIONS FROM INVESTIGATIONS



                                                                                  EXHIBIT B
                                                                                  10 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System              Page 11 of 19




         There are no Serious Violations to display


    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                           




                                                                                  EXHIBIT B
                                                                                  11 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                       Page 12 of 19



                                   Sum of Time Severity Weight (AxB)                               0                        
         Measure      =                                                                         =     = 0              => No Violations
                                           Sum of Time Weight (B)                                 175                       




                    Vehicle Maintenance
                    Failure to properly maintain a CMV. (FMCSR Parts 393 and 396)




                          BASIC Overall Status
                          Does not exceed intervention threshold based upon On-road Performance
                          and Investigation Results.
                          (Based on a 24-month record ending August 26, 2011)




     On-road Performance Overview

      

                                                                            MEASURE: 5.13
                                                                            PERCENTILE: 52.5%

                                                                        (Threshold: 80%)

                                                                  
                                                                 Relevant Inspections: 67
                                                                 Total Inspections with Vehicle Maintenance Violations: 40
                                                                 Total Vehicle Maintenance Violations: 95




     VEHICLE MAINTENANCE VIOLATIONS


                                                                                                                                               # Total      # OOS      Violation
    Violation Description
                                                                                                                                             Violations   Violations    Weight
   392.8       Failing to inspect/use emergency equipment                                                                                        1            0            2
   393.11      No/defective lighting devices/reflective devices/projected                                                                        8            0            3
   393.13(c)   No lower rear retroreflective sheeting or reflex reflective material as required for vehicles manufactured before 12/1/1993       1            0            3
   (2)
   393.13(c)   No upper rear retroreflective sheeting or reflex reflective material as required for vehicles manufactured before 12/1/1993       1            0            3
   (3)
   393.13(d)   Improper lower rear placement of retroreflective sheeting or reflex reflective material requirements for vehicles                 1            0            3
   (2)         manufactured before 12/1/1993
   393.19      Inoperative/defective hazard warning lamp                                                                                         1            0            6

   393.201(d) Frame accessories improperly attached                                                                                              1            0            2
   393.205(c) Wheel fasteners loose and/or missing                                                                                               1            1            2
   393.207(a) Axle positioning parts defective/missing                                                                                           1            0            7

   393.209(e) Power steering violations                                                                                                          1            0            6
   393.24(a)   Non-compliance with headlamp requirements                                                                                         1            0            6
   393.25(f)   Stop lamp violations                                                                                                              2            2            6

   393.28      Improper or no wiring protection as required                                                                                      1            0            3
   393.45      Brake tubing and hose adequacy                                                                                                    1            1            4
   393.45(b)   Failing to secure brake hose/tubing against mechanical damage                                                                     10           0            4
   (2)
   393.45(d)   Brake connections with leaks/constrictions                                                                                        4            0            4
   393.47(a)   Inadequate brakes for safe stopping                                                                                               1            0            4

   393.47(e)   Clamp/Roto-Chamber type brake(s) out of adjustment                                                                                1            0            4
   393.50(c)   No means to ensure operable check valve                                                                                           1            0            4

   393.53(a)   Automatic brake adjuster CMV manufactured on or after 10/20/1993— hydraulic brake                                                 1            0            4
   393.53(b)   Automatic brake adjuster CMV manufactured on or after 10/20/1994— air brake                                                       1            0            4
   393.55(e)   ABS-malfunctioning indicator lamps - trailer manufactured on or after 3/1/1998                                                    1            0            4

   393.60(c)   Damaged or discolored windshield                                                                                                  2            0            1
   393.65(f)   Improper fuel line protection                                                                                                     1            0            1



                                                                                  EXHIBIT B
                                                                                  12 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                     Page 13 of 19



   393.67        Fuel tank requirement violations                                                                                       2                      1             1
   393.75(a)     Tire—ply or belt material exposed                                                                                      1                      1             8
   (1)
   393.75(a)     Tire—tread and/or sidewall separation                                                                                  4                      0            8
   (2)
   393.75(b)     Tire—front tread depth less than 4/32 of inch                                                                          1                      0            8

   393.75(c)     Tire—other tread depth less than 2/32 of inch                                                                          2                      0            8
   393.78        Windshield wipers inoperative/defective                                                                                3                      0            1
   393.83(g)     Exhaust leak under truck cab and/or sleeper                                                                            2                      0            1

   393.84        Inadequate floor condition                                                                                             3                      0            2
   393.95(a)     No/discharged/unsecured fire extinguisher                                                                              7                      0            2
   393.95(b)     No spare fuses as required                                                                                             3                      0            2

   393.95(c)     No spare fuses as required                                                                                             1                      0            2
   393.9(a)      Inoperative required lamps                                                                                             2                      1            2
   396.17(c)     Operating a CMV without periodic inspection                                                                            4                      0            4

   396.3(a)(1) Inspection/repair and maintenance parts and accessories                                                                  1                      0            2
   396.3A1T      Tires (general)                                                                                                        5                      1            8

   396.5(b)      Oil and/or grease leak                                                                                                 9                      0            3




        INSPECTION HISTORY


                                     Report                                                          Vehicle                                            Measure

                                                                                                                                Severity                  Time        Time Severity
          Inspection
            Date
                                          #                      ST           Plate #            Lic ST        Type             Weight                   Weight         Weight
                                                                                                                                  (A)                      (B)           (AxB)
    1    8/11/2011                 TX11670ERG02                    TX        RJ3S38                  TX        Truck Tractor       10                      3               30
           Violation: 396.3A1T Tires (general)   (OOS)                                                                                      10      =8 (viol weight) + 2 (OOS)
    2    7/28/2011                 TX115T0EJX01                    TX        R42110                  TX        Truck Tractor       4                       3               12
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                   4       
    3    7/19/2011                 TX115KW2LA0H                    TX        R42112                  TX        Truck Tractor       7                       3               21
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                   4       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                             3     
    4    7/11/2011                 TX115CW1LA07                    TX        RF6Z19                  TX        Truck Tractor       4                       3               12
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                   4       
    5    5/31/2011                 TX1147W1LA0I                    TX        111DK5                  MX        Truck Tractor       7                       3               21
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                   4       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                             3     
    6    5/15/2011                 US1010007798                    US        RJ3S38                  TX        Truck Tractor       8                       3               24
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                   8     
    7    4/25/2011                 US1010007727                    US        RJ3S40                  TX        Truck Tractor       8                       3               24
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                   4       
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                         2     
           Violation: 393.95(b) No spare fuses as required  (Non-OOS)                                                                        2     
    8    4/13/2011                 TX112V9DGI04                    TX        RJ3S40                  TX        Truck Tractor       13                      3               39
           Violation: 393.28 Improper or no wiring protection as required  (Non-OOS)                                                         3     
           Violation: 393.75(a)(1) Tire—ply or belt material exposed (OOS)                                                                  10     =8 (viol weight) + 2 (OOS)
    9    4/13/2011                 TX112VW1LA0F                    TX        R42112                  TX        Truck Tractor       15                      3               45
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                        4       
           Violation: 393.67 Fuel tank requirement violations  (OOS)                                                                         3     =1 (viol weight) + 2 (OOS)
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                           8     
    10 4/5/2011                    TX112NW1LA04                    TX        RF6Z20                  TX        Truck Tractor       10                      3               30
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                           8     
           Violation: 393.84 Inadequate floor condition  (Non-OOS)                                                                           2     
    11 4/4/2011                    US1129006194                    US        RJ3S36                  TX        Truck Tractor       2                       3                6
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                         2     
    12 3/28/2011                   TX112F9DBR05                    TX        RF6Z19                  TX        Truck Tractor       3                       3                9
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                           3       
    13 3/3/2011                    TX111Q9DAH04                    TX        RF6Z20                  TX        Truck Tractor       3                       3                9
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                           3       
    14 1/31/2011                   TX110V9DAH01                    TX        RJ3S38                  TX        Truck Tractor       4                       2                8
           Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                       4       
    15 1/26/2011                   US1327002545                    US        R42092                  TX        Straight Truck      2                       2                4
           Violation: 393.201(d) Frame accessories improperly attached  (Non-OOS)                                                            2     
    16 1/20/2011                   TX110K0EKI02                    TX        RJ3S38                  TX        Truck Tractor       7                       2               14
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                        4       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                             3     
    17 1/19/2011                   TX110JW2LA0U                    TX        R42110                  TX        Truck Tractor       9                       2               18
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                           3       


                                                                                  EXHIBIT B
                                                                                  13 of 45
http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=nmPpGK3fZU0t4jD79nYwatvAK42O+W6... 9/23/2011
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                                 Page 14 of 19



                                    Report                                                               Vehicle                                                     Measure

                                                                                                                                               Severity                Time       Time Severity
          Inspection
            Date
                                         #                       ST             Plate #             Lic ST              Type                   Weight                 Weight        Weight
                                                                                                                                                 (A)                    (B)          (AxB)
          Violation: 393.13(c)(3) No upper rear retroreflective sheeting or reflex reflective material as required for vehicles                           3       
        manufactured before 12/1/1993 (Non-OOS)
          Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                           3     
    18 11/29/2010                US1025005606                       US        RG3N80                    TX               Truck Tractor            12                    2              24
          Violation: 393.55(e) ABS-malfunctioning indicator lamps - trailer manufactured on or after 3/1/1998 (Non-OOS)                                   4     
          Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                                   8       
    19 10/26/2010                TX108BW1LA09                       TX        RF6Z21                    TX               Truck Tractor            7                     2              14
          Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                                      4       
          Violation: 393.60(c) Damaged or discolored windshield  (Non-OOS)                                                                                1     
          Violation: 393.84 Inadequate floor condition  (Non-OOS)                                                                                         2     
    20 10/14/2010                TX107ZW1LA16                       TX        R42042                    TX               Truck Tractor            12                    2              24
          Violation: 393.25(f) Stop lamp violations  (OOS)                                                                                                8     =6 (viol weight) + 2 (OOS)
          Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                                     4       
    21 8/18/2010                 TX106EW2LA02                       TX        RF6Z22                    TX               Truck Tractor            10                    1              10
          Violation: 393.45 Brake tubing and hose adequacy  (OOS)                                                                                         6     =4 (viol weight) + 2 (OOS)
          Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                 4       
    22 8/3/2010                  US1133007148                       US        R42094                    TX               Truck Tractor            10                    1              10
          Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                           3     
          Violation: 393.205(c) Wheel fasteners loose and/or missing  (OOS)                                                                               4     =2 (viol weight) + 2 (OOS)
          Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                         3       
    23 7/30/2010                 TX105V0EFW03                       TX        R42092                    TX               Truck Tractor          30***                   1              30
          Violation: 393.25(f) Stop lamp violations  (OOS)                                                                                                8     =6 (viol weight) + 2 (OOS)
          Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                            1     
          Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                       2     
          Violation: 393.24(a) Non-compliance with headlamp requirements (Non-OOS)                                                                        6     
          Violation: 393.9(a) Inoperative required lamps  (OOS)                                                                                           4     =2 (viol weight) + 2 (OOS)
          Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                         3       
          Violation: 393.19 Inoperative/defective hazard warning lamp  (Non-OOS)                                                                          6     
    24 7/27/2010                 TX105S0ECK06                       TX        R42110                    TX               Truck Tractor            8                     1               8
          Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                         3       
          Violation: 393.13(c)(2) No lower rear retroreflective sheeting or reflex reflective material as required for vehicles manufactured              3       
        before 12/1/1993 (Non-OOS)
          Violation: 393.95(b) No spare fuses as required  (Non-OOS)                                                                                      2     
    25 7/14/2010                 TX105FW1RV0V                       TX        RF6Z21                    TX               Truck Tractor            4                     1               4
          Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                                     4       
    26 7/6/2010                  TX1057W1LA1C                       TX        R42094                    TX               Truck Tractor            19                    1              19
          Violation: 393.47(a) Inadequate brakes for safe stopping  (Non-OOS)                                                                             4     
          Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                 4       
          Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                         8     
          Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                           3     
    27 7/6/2010                  US1355001581                       US        RF2112                    TX               Truck Tractor            8                     1               8
          Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                                   8       
    28 6/17/2010                 TX104O0ECK01                       TX        R42110                    TX               Truck Tractor            4                     1               4
          Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                       2     
          Violation: 393.95(b) No spare fuses as required  (Non-OOS)                                                                                      2     
    29 4/13/2010                 US0934005855                       US        R42110                    TX               Truck Tractor            16                    1              16
          Violation: 393.75(b) Tire—front tread depth less than 4/32 of inch  (Non-OOS)                                                                   8       
          Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                                 8     
    30 3/15/2010                 TX1022W1LA14                       TX        RF6Z20                    TX               Truck Tractor            10                    1              10
          Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                           3     
          Violation: 393.207(a) Axle positioning parts defective/missing  (Non-OOS)                                                                       7     
    31 3/5/2010                  US0985005248                       US        118DK5                    MX               Truck Tractor            12                    1              12
          Violation: 393.53(a) Automatic brake adjuster CMV manufactured on or after 10/20/1993— hydraulic brake (Non-OOS)                                4     
          Violation: 393.47(e) Clamp/Roto-Chamber type brake(s) out of adjustment  (Non-OOS)                                                              4       
          Violation: 393.53(b) Automatic brake adjuster CMV manufactured on or after 10/20/1994— air brake (Non-OOS)                                      4       
    32 2/10/2010                 TX1015W1LA0E                       TX        932DN3                    MX               Truck Tractor            8                     1               8
          Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                 4       
          Violation: 393.65(f) Improper fuel line protection  (Non-OOS)                                                                                   1     
          Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                           3     
    33 1/31/2010                 US1021006193                       US        RF6Z19                    TX               Truck Tractor            8                     1               8
          Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                                 8     
    34 12/9/2009                 TX099JW1LA08                       TX        2CB904                    TX               Truck Tractor            26                    1              26
          Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                                      4       
          Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                 4       
          Violation: 393.13(d)(2) Improper lower rear placement of retroreflective sheeting or reflex reflective material requirements for                3     
        vehicles manufactured before 12/1/1993 (Non-OOS)
          Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                         8     
          Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                           3     
          Violation: 393.84 Inadequate floor condition  (Non-OOS)                                                                                         2     



                                                                                  EXHIBIT B
                                                                                  14 of 45
http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=nmPpGK3fZU0t4jD79nYwatvAK42O+W6... 9/23/2011
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                 Page 15 of 19



                                      Report                                                            Vehicle                                         Measure

                                                                                                                                  Severity                Time    Time Severity
             Inspection
               Date
                                           #                       ST            Plate #            Lic ST        Type            Weight                 Weight     Weight
                                                                                                                                    (A)                    (B)       (AxB)
              Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                    1       
              Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                           1     
    35 11/29/2009                   US0802010394                     US        2CB904                   TX        Truck Tractor      12                    1          12
              Violation: 393.209(e) Power steering violations  (Non-OOS)                                                                     6     
              Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                           1     
              Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                    1       
              Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                      2     
              Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                      2       
    36 11/29/2009                   US1327001147                     US        R42112                   TX        Truck Tractor      3                     1          3
              Violation: 393.67 Fuel tank requirement violations  (Non-OOS)                                                                  1     
              Violation: 393.9(a) Inoperative required lamps  (Non-OOS)                                                                      2     
    37 10/20/2009                   TX0985W1PH0J                     TX        R42112                   TX        Truck Tractor      4                     1          4
              Violation: 393.50(c) No means to ensure operable check valve  (Non-OOS)                                                        4     
    38 10/13/2009                   US0802010243                     US        R42110                   TX        Truck Tractor      16                    1          16
              Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                         2     
              Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                8     
              Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                      2     
              Violation: 393.60(c) Damaged or discolored windshield  (Non-OOS)                                                               1     
              Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                        3       
    39 9/29/2009                    TX097KW2LA10                     TX        2CB905                   TX        Truck Tractor      11                    1          11
              Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                        3       
              Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                4       
              Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                      2     
              Violation: 393.95(c) No spare fuses as required   (Non-OOS)                                                                    2     
    40 9/13/2009                    US1358001007                     US        RF6Z21                   TX        Truck Tractor      4                     1          4
              Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                    4       



        Investigation Results Overview

         

                   No serious violation(s) discovered

        Certain viola ions found during an inves igation can result in a
        for a BASIC. The status remains for 12 months following the
        inves igation.




        SERIOUS VIOLATIONS FROM INVESTIGATIONS



                There are no Serious Violations to display


        Use this page to view graphs of various aspects of your safety performance.

         


                                                                                                                                                                              




                                                                                  EXHIBIT B
                                                                                  15 of 45
http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=nmPpGK3fZU0t4jD79nYwatvAK42O+W6... 9/23/2011
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                          Page 16 of 19




                               Sum of Time Severity Weight (AxB)                      611                     
     Measure     =                                                                  =     = 5.13              => 52.5%
                                     Sum of Time Weight (B)                           119                     




               Cargo-Related
               Failure to properly prevent shifting loads, spilled or dropped cargo, and unsafe handling of hazardous materials on a CMV. (FMCSR Parts 392 393,397)




                     BASIC Overall Status
                     Not Public - Details of this BASIC available only to logged-in users.


                                                                                  EXHIBIT B
                                                                                  16 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                              Page 17 of 19



                              (Based on a 24-month record ending August 26, 2011)




        On-road Performance Overview

         

                                                                            MEASURE:
                                                                            PERCENTILE:
                                                                             Not Public
                                                                           (Threshold: 80%)

                                                                     
                                                                    Relevant Inspections: 66
                                                                    Total Inspections with Cargo-Related Violations: 6
                                                                    Total Cargo-Related Violations: 6




        CARGO-RELATED VIOLATIONS


                                                                                                              # Total                     # OOS                       Violation
        Violation          Description
                                                                                                             Violations                 Violations                     Weight
   393.104(b)             Damaged securement system/tiedowns                                                             3                          0                           7
   393.110(b)             Insufficient tiedowns; without headerboard/blocking                                            2                          2                           8

   393.114                No/improper front end structure                                                                1                          0                           7




        INSPECTION HISTORY


                                 Report                                                   Vehicle                                                   Measure

                                                                                                                             Severity                Time                 Time Severity
             Inspection
               Date
                                        #                   ST          Plate #        Lic ST        Type                    Weight                 Weight                  Weight
                                                                                                                               (A)                    (B)                    (AxB)
    1       5/24/2011           US0904004572                US       RF6Z19               TX        Truck Tractor                 10                      3                         30
              Violation: 393.110(b) Insufficient tiedowns; without headerboard/blocking  (OOS)                                            10      =8 (viol weight) + 2 (OOS) 
    2       12/6/2010           US0934006513                US       RG3N80               TX        Truck Tractor                  7                      2                         14
              Violation: 393.114 No/improper front end structure  (Non-OOS)                                                                7     
    3       7/27/2010           TX105S0ECK06                 TX      R42110               TX        Truck Tractor                 10                      1                         10
              Violation: 393.110(b) Insufficient tiedowns; without headerboard/blocking  (OOS)                                            10      =8 (viol weight) + 2 (OOS) 
    4       7/6/2010            US1355001581                US       RF2112               TX        Truck Tractor                  7                      1                         7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                          7     
    5       11/29/2009          US1327001147                US       R42112               TX        Truck Tractor                  7                      1                         7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                          7     
    6       10/31/2009          TX098G0EJL01                 TX      RG3N80               TX        Truck Tractor                  7                      1                         7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                          7     



        Investigation Results Overview

         

        Details of Investigation Results are only available to logged in users.

        Certain viola ions found during an inves igation can result in a
        for a BASIC. The status remains for 12 months following the
        inves igation.




                                                                                  EXHIBIT B
                                                                                  17 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                        Page 18 of 19



    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                                                                                                     




                 Crash Indicator
                 Histories or patterns of high crash involvement, including frequency and severity. It is based on information from State-reported crashes.




                      BASIC Overall Status
                      Not Public - Details of this BASIC available only to logged-in users.
                      (Based on a 24-month record ending August 26, 2011)




    On-road Performance Overview

     

                                                                MEASURE:
                                                                PERCENTILE:
                                                                 Not Public
                                                               (Threshold: 65%)

                                                          
                                                         Average Power Units: 17
                                                         Vehicle Miles Traveled (VMT): 950,833
                                                         VMT Year: 2010   VMT Source: Registration - MCS150

                                                       Average Power Units (APU) x Utilization Factor (UF): 17.3
                                                       Number of Crashes: 0
                                                       Number Tow-aways: 0
                                                       Number with Injuries or Fatalities: 0
                                                       Number with HM Release: 0
    Crash Indicator measure/percentile represents carrier accident involvement only and is not intended as a means to assess fault. For more information please visit
    our Information Center.




                                                                                  EXHIBIT B
                                                                                  18 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                           Page 19 of 19



        CRASH ACTIVITY DETAIL(List of vehicles involved in crashes)

             There are no Vehicle Crashes to display




        Use this page to view graphs of various aspects of your safety performance.

         


                                                                                                                                                                                       




    *
    USE OF SMS DATA/INFORMATION

    The data in the Safety Measurement System (SMS) is performance data used by the Agency and Enforcement Community. A                                  symbol, based on that data, indicates
    hat FMCSA may priori ize a motor carrier for further monitoring.

    The      symbol is not intended to imply any federal safety rating of the carrier pursuant to 49 USC 31144. Readers should not draw conclusions about a carrier's overall
    safety condition simply based on the data displayed in this system. Unless a motor carrier in the SMS has received an UNSATISFACTORY safety rating pursuant to 49
    CFR Part 385, or has otherwise been ordered to discon inue operations by the FMCSA, it is authorized to operate on the nation's roadways.


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                                      1200 New Jersey Avenue SE, Washington, DC 20590 • 1-800-832-5660 • TTY: 1-800-877-8339 • Field Office Contacts

                                                                                                        




                                                                                  EXHIBIT B
                                                                                  19 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                                         Page 1 of 26




  FERNANDO PAEZ TRANSPORT INC                                                                                         DOT#:535886



  The SMS provides an assessment of a motor carrier's on-road performance and investigation results within the Behavior Analysis and Safety
  Improvement Categories (BASICs). Assessments cover 24 months of activity and results are updated monthly. For current Motor Carrier Safety
  Ratings visit SAFER and for current operating authority and insurance information visit Licensing and Insurance (L&I) system.




                                                                                                                                                SUMMARY OF ACTIVITIES
                                                                                                                                                                                            Number    OOS Rate
                                                                                            PERFORMANCE
     BASICs Overview                                                                                          BASICs                        Total Inspections                                322           
     (Based on a 24-month record ending August 26, 2011)                            On-Road Investigation      Status                                             Vehicle Inspections:       235        14 %
                                                                                                             
             Unsafe Driving                                                             6.5%                                                                       Driver Inspections:       321         3%
                                                                                                                                                    Hazardous Materials Inspections:          0          0%
                                                                                                                   
             Fatigued Driving (Hours-of-Service)                                    37.8%                                                                     HM Placard Inspections:         0          0%

                                                                                                                                            Total Crashes                                     4            
             Driver Fitness                                                         86.5%               
                                                                                                                                                                           Tow-aways:         4            
                                                                                       No                                                                            Injuries/Fatalities:     2            
             Controlled Substances and Alcohol                                                          
                                                                                   Violations
                                                                                                                                                RECENT INVESTIGATIONS
                                                                                                                   
             Vehicle Maintenance                                                    78.3%                                                           The following are up to five most recent investigations:
                                                                                                                                                      Intervention Type                              Date
                                                                                         Not                       
             Cargo-Related                                                                                                                             Compliance Review                             1/19/2010
                                                                                        Public
                                                                                                                                                       Compliance Review                             12/9/2004
                                                                                         Not                       
             Crash Indicator                                                                                                                           Compliance Review                             5/25/2000
                                                                                        Public
                                                                                                                                                       Compliance Review                              8/9/1999




    ICON LEGEND

                 Serious violation cited within last 12 months from an investigation.

                 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.

    Carrier Registration Information as of August 26, 2011
       Legal Name                  Fernando Paez Transport Inc                                             Vehicle Miles Traveled                                                       3,150,119
       DBA Name                    Olympic Transport                                                        VMT Year                                                                       2009
       DOT#                        535886                                                                  Power Units                                                                  36
       MC or MX#                   MC-267592                                                               DUNS Number
       Address                     1424 East Ridge Road Suite 1                                            Drivers                                                                      37
                                   Mcallen,  TX  78503                                                     Carrier Operation                                                            Interstate
       Telephone                   (956) 630-6173                                                          Passenger                                                                    No
       Fax                         (877) 337-7239                                                          Subject to Placardable HM Threshold                                          No
       Email                       olympic7@olympictrailers.com                                            HHG                                                                          No
                                                                                                           New Entrant                                                                  No

    Operation Classification:
   X AUTHORIZED FOR HIRE                                                           EXEMPT FOR HIRE                                                                 PRIVATE PROPERTY
       PRIVATE PASSENGER, BUSINESS                                                 PRIVATE PASSENGER, NON-BUSINESS                                                 MIGRANT
       U. S. MAIL                                                                  FEDERAL GOVERNMENT                                                              STATE GOVERNMENT
       LOCAL GOVERNMENT                                                            NDIAN TRIBE                                                                     OTHER

    Cargo Carried:
       GENERAL FREIGHT                                                        HOUSEHOLD GOODS                                       X METAL; SHEETS, COILS, ROLLS
       MOTOR VEHICLES                                                         DRIVE AWAY/TOWAWAY                                        LOGS, POLES, BEAMS, LUMBER
       BUILDING MATERIALS                                                     MOBILE HOMES                                              MACHINERY, LARGE OBJECTS
       FRESH PRODUCE                                                          LIQUIDS/GASES                                             INTERMODAL CONTAINERS
       PASSENGERS                                                             O L FIELD EQUIPMENT                                       LIVESTOCK


                                                                                 EXHIBIT B
                                                                                 20 of 45
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       GRAIN, FEED, HAY                                       COAL, COKE                        MEAT
       GARBAGE, REFUSE, TRASH                                 U.S. MAIL                         CHEMICALS
       COMMODITIES DRY BULK                                   REFRIGERATED FOOD                 BEVERAGES
   X PAPER PRODUCTS                                           UTILITY                           FARM SUPPLIES
       CONSTRUCTION                                           WATER WELL                        OTHER




                          Vehicle Type Breakdown
                                           Vehicle Type                    Owned   Term Leased                  Trip Leased
                      Straight Trucks                                                                                 
                      Truck Tractors                                         36                                       
                      Trailers*                                              59                                       
                      Hazmat Cargo Tank Trailers*                                                                     
                      Hazmat Cargo Tank Trucks                                                                        
                      Motor Coach                                                                                     
                      School Bus 1-8 Passengers                                                                       
                      School Bus 9-15 Passengers                                                                      
                      School Bus 16+ Passengers                                                                       
                      Mini-Bus 16+ Passengers                                                                         
                      Van 1-8 Passengers                                                                              
                      Van 9-15 Passengers                                                                             
                      Limousine 1-8 Passengers                                                                        
                      Limousine 9-15 Passengers                                                                       
                      Limousine 16+ Passengers                                                                        


         * Indicates power units not used by the Carrier Safety Measurement System when calculating total power units.




                                                                                 EXHIBIT B
                                                                                 21 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                       Page 3 of 26



    
                         Unsafe Driving
                         Operation of CMVs by drivers in a dangerous or careless manner. (FMCSR Parts 392 and 397)




                               BASIC Overall Status
                               Does not exceed intervention threshold based upon On-road Performance
                               and Investigation Results.
                               (Based on a 24-month record ending August 26, 2011)




        On-road Performance Overview

         

                                                                              MEASURE: 1.19
                                                                              PERCENTILE: 6.5%

                                                                             (Threshold: 65%)

                                                                       
                                                                      Average Power Units: 37
                                                                      Vehicle Miles Traveled (VMT): 3,301,332
                                                                      VMT Year: 2010   VMT Source: Investigation - MCS151

                                                             Average Power Units (APU) x Utilization Factor (UF): 39.4
                                                             Total Inspections with Unsafe Driving Violations: 4
                                                             Total Unsafe Driving Violations: 4
        The Unsafe Driving measure/percentile is based on Roadside Inspection reports. Some Unsafe Driving violations are reported when a Roadside Inspection was
        performed following a traffic stop for the Unsafe Driving violation. These reported violations do not always result in the issuance of a citation to the driver .




        UNSAFE DRIVING VIOLATIONS


                                                                                                         # Total                     # OOS                    Violation
        Violation            Description
                                                                                                        Violations                 Violations                  Weight
   392.16                  Failing to use seat belt while operating CMV                                             1                          0                          7
   392.2C                  Failure to obey traffic control device                                                   1                          0                          5
   392.2S                  Speeding                                                                                 1                          0                          5

   392.60(a)               Unauthorized passenger on board CMV                                                      1                          0                          1




        INSPECTION HISTORY


                                  Report                                                  Vehicle                                                   Measure

                                                                                                                        Severity                     Time         Time Severity
             Inspection
               Date
                                         #                   ST           Plate #      Lic ST        Type               Weight                      Weight          Weight
                                                                                                                          (A)                         (B)            (AxB)
    1       7/27/2011            TX115SW1LA0I                 TX      R42114              TX        Truck Tractor             7                         3                     21
              Violation: 392.16 Failing to use seat belt while operating CMV  (Non-OOS)                                                  7     
    2       5/24/2011            TNEEDD007691                 TN      RF2T75              TX        Truck Tractor             5                         3                     15
              Violation: 392.2C Failure to obey traffic control device   (Non-OOS)                                                       5     
    3       10/29/2010           NE00CZ000026                 NE      RB7S89              TX        Truck Tractor             5                         2                     10
              Violation: 392.2S Speeding   (Non-OOS)                                                                                     5       
    4       6/9/2010             PAS028000788                 PA      R42102              TX        Truck Tractor             1                         1                     1
              Violation: 392.60(a) Unauthorized passenger on board CMV  (Non-OOS)                                                        1     



        Investigation Results Overview

         

                   No serious violation(s) discovered

        Certain viola ions found during an inves igation can result in a
        for a BASIC. The status remains for 12 months following the
        inves igation.



                                                                                 EXHIBIT B
                                                                                 22 of 45
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    SERIOUS VIOLATIONS FROM INVESTIGATIONS



         There are no Serious Violations to display


    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                          




                                                                                 EXHIBIT B
                                                                                 23 of 45
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                                     Sum of Time Severity Weight (AxB)                              47                         
         Measure      =                                                                          =      =          1.19           => 6.5%
                                                       APU * UF                                    39.4                        




                   Fatigued Driving
                   Operation of CMVs by drivers who are ill, fatigued, or in non-compliance with the Hours-of-Service (HOS) regulations. (FMCSR Parts 392 and 395)




                          BASIC Overall Status
                          Does not exceed intervention threshold based upon On-road Performance
                          and Investigation Results.
                          (Based on a 24-month record ending August 26, 2011)




     On-road Performance Overview

      

                                                                        MEASURE: 0.61
                                                                        PERCENTILE: 37.8%

                                                                       (Threshold: 65%)

                                                                 
                                                                Relevant Inspections: 321
                                                                Total Inspections with Fatigued Driving Violations: 34
                                                                Total Fatigued Driving Violations: 41




     FATIGUED DRIVING VIOLATIONS


                                                                                                                 # Total                      # OOS      Violation
    Violation       Description
                                                                                                                Violations                  Violations    Weight
   395.3(a)(1)     Requiring or permitting driver to drive more than 11 hours                                             7                         2           7

   395.3(a)(2)     Requiring or permitting driver to drive after 14 hours on duty                                         6                         1           7


                                                                                 EXHIBIT B
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   395.8              Log violation (general/form and manner)                                                                 15                        0                         2

   395.8(e)           False report of driver’s record of duty status                                                          4                         3                         7
   395.8(f)(1)        Driver’s record of duty status not current                                                              8                         0                         5
   395.8(k)(2)        Driver failing to retain previous 7 days’ logs                                                          1                         1                         5




        INSPECTION HISTORY


                                 Report                                                        Vehicle                                                  Measure

                                                                                                                                   Severity                  Time         Time Severity
           Inspection
                                       #                     ST           Plate #          Lic ST             Type                 Weight                   Weight          Weight
             Date
                                                                                                                                     (A)                      (B)            (AxB)
    1    6/17/2011             TX114O0EKE02                    TX       R42107                TX              Truck Tractor             2                      3                      6
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    2    6/13/2011             AZ0234000518                    AZ       RG4G36                TX              Truck Tractor             5                      3                      15
           Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                                       5      
    3    4/28/2011             OK00B5090775                    OK       R42099                TX              Truck Tractor            14                      3                      42
           Violation: 395.3(a)(1) Requiring or permitting driver to drive more than 11 hours (Non-OOS)                                        7      
           Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (Non-OOS)                                   7      
    4    2/18/2011             US0904004327                    US       R42107                TX              Truck Tractor            16                      2                      32
           Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (Non-OOS)                                   7      
           Violation: 395.8(e) False report of driver’s record of duty status  (OOS)                                                          9     =7 (viol weight) + 2 (OOS) 
    5    2/11/2011             US1010007509                    US       RG4G45                TX              Truck Tractor             2                      2                      4
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    6    2/7/2011              US1297002888                    US       973DK3                MX              Truck Tractor             7                      2                      14
           Violation: 395.3(a)(1) Requiring or permitting driver to drive more than 11 hours (Non-OOS)                                        7      
    7    1/20/2011             US0904004225                    US       R42106                TX              Truck Tractor             2                      2                      4
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    8    12/19/2010            US1305002929                    US       RB7S88                TX              Truck Tractor             7                      2                      14
           Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (Non-OOS)                                   7      
    9    12/16/2010            TX109Q0EKQ02                    TX       RB7S87                TX              Truck Tractor             2                      2                      4
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    10 12/7/2010               ALWPCV001555                    AL       RB7S89                TX              Truck Tractor             5                      2                      10
           Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                                       5      
    11 11/7/2010               TX108N0EJY06                    TX       R42097                TX              Truck Tractor             9                      2                      18
           Violation: 395.3(a)(1) Requiring or permitting driver to drive more than 11 hours (OOS)                                            9     =7 (viol weight) + 2 (OOS) 
    12 11/1/2010               TX108HW2LA0L                    TX       RG4G49                TX              Truck Tractor             2                      2                      4
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    13 10/29/2010              NE00CZ000026                    NE       RB7S89                TX              Truck Tractor             5                      2                      10
           Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                                       5      
    14 9/19/2010               US0965007565                    US       RG4G47                TX              Truck Tractor             2                      2                      4
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    15 8/18/2010               US0904003732                    US       RG4G46                TX              Truck Tractor             9                      1                      9
           Violation: 395.8(e) False report of driver’s record of duty status  (OOS)                                                          9     =7 (viol weight) + 2 (OOS) 
    16 7/29/2010               OH3268008155                    OH       R42106                TX              Truck Tractor             9                      1                      9
           Violation: 395.8(e) False report of driver’s record of duty status  (OOS)                                                          9     =7 (viol weight) + 2 (OOS) 
    17 7/21/2010               TX105M0EOI03                    TX       RB7S90                TX              Truck Tractor             2                      1                      2
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    18 7/14/2010               US0930005766                    US       R42103                TX              Truck Tractor            14                      1                      14
           Violation: 395.3(a)(1) Requiring or permitting driver to drive more than 11 hours (Non-OOS)                                        7      
           Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (Non-OOS)                                   7      
    19 5/31/2010               US0802011048                    US       RF2T73                TX              Truck Tractor             5                      1                      5
           Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                                       5      
    20 5/18/2010               TX103U0EFA04                    TX       RF2T73                TX              Truck Tractor             7                      1                      7
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
           Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                                       5      
    21 5/12/2010               TX103O9DAL03                    TX       RB7S89                TX              Truck Tractor             2                      1                      2
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    22 4/13/2010               AR501E001337                    AR       R42115                TX              Truck Tractor             9                      1                      9
           Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (OOS)                                       9     =7 (viol weight) + 2 (OOS) 
    23 3/19/2010               KS00KS025684                    KS       RF2M24                TX              Truck Tractor             9                      1                      9
           Violation: 395.3(a)(1) Requiring or permitting driver to drive more than 11 hours (OOS)                                            9     =7 (viol weight) + 2 (OOS) 
    24 3/8/2010                ORAABR004915                    OR       R42105                TX              Truck Tractor            14                      1                      14
           Violation: 395.3(a)(1) Requiring or permitting driver to drive more than 11 hours (Non-OOS)                                        7      
           Violation: 395.3(a)(2) Requiring or permitting driver to drive after 14 hours on duty  (Non-OOS)                                   7      
    25 12/31/2009              TX09A50EIT01                    TX       R42092                TX              Truck Tractor             2                      1                      2
           Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                               2     
    26 12/23/2009              TX099X0EKG01                    TX       R42093                TX              Truck Tractor             5                      1                      5
           Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                                       5      



                                                                                 EXHIBIT B
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                                    Report                                                     Vehicle                                           Measure

                                                                                                                            Severity              Time             Time Severity
              Inspection
                Date
                                           #                    ST           Plate #         Lic ST         Type            Weight               Weight              Weight
                                                                                                                              (A)                  (B)                (AxB)
    27 12/4/2009                  TX099E0EIW02                    TX       798DK7              MX           Truck Tractor        5                  1                      5
              Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                             5      
    28 11/10/2009                 US0904003048                    US       R42107              TX           Truck Tractor        5                  1                      5
              Violation: 395.8(f)(1) Driver’s record of duty status not current  (Non-OOS)                                             5      
    29 10/22/2009                 COCN08011205                    CO       R42099              TX           Truck Tractor       16                  1                      16
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                     2     
              Violation: 395.3(a)(1) Requiring or permitting driver to drive more than 11 hours (Non-OOS)                              7      
              Violation: 395.8(e) False report of driver’s record of duty status  (Non-OOS)                                            7      
    30 10/14/2009                 TX097ZW2LA0C                    TX       R42117              TX           Truck Tractor        2                  1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                     2     
    31 10/13/2009                 TX097Y0EJT03                    TX       R42102              TX           Truck Tractor        2                  1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                     2     
    32 10/5/2009                  AZ00YM012359                    AZ       R42116              TX           Truck Tractor        7                  1                      7
              Violation: 395.8(k)(2) Driver failing to retain previous 7 days’ logs  (OOS)                                             7     =5 (viol weight) + 2 (OOS) 
    33 10/3/2009                  AZ00YM012332                    AZ       RF2T73              TX           Truck Tractor        2                  1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                     2     
    34 8/28/2009                  TX096O0EFF05                    TX       2F2M24              TX           Truck Tractor        2                  1                      2
              Violation: 395.8 Log violation (general/form and manner)   (Non-OOS)                                                     2     



        Investigation Results Overview

         

                   No serious violation(s) discovered

        Certain viola ions found during an inves igation can result in a
        for a BASIC. The status remains for 12 months following the
        inves igation.




        SERIOUS VIOLATIONS FROM INVESTIGATIONS



                There are no Serious Violations to display


        Use this page to view graphs of various aspects of your safety performance.

         


                                                                                                                                                                                   




                                                                                 EXHIBIT B
                                                                                 26 of 45
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                              Sum of Time Severity Weight (AxB)                       309                     
     Measure     =                                                                  =     = 0.61              => 37.8%
                                     Sum of Time Weight (B)                           501                     




               Driver Fitness
               Operation of CMVs by drivers who are unfit to operate a CMV due to lack of training, experience, or medical qualifications. (FMCSR Parts 383 and 391)




                     BASIC Overall Status

                                                                                 EXHIBIT B
                                                                                 27 of 45
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                              Exceeds the Intervention Threshold to be prioritized for intervention
                              (Based on a 24-month record ending August 26, 2011)




        On-road Performance Overview

         

                                                                            MEASURE: 0.20
                                                                            PERCENTILE: 86.5%

                                                                           (Threshold: 80%)

                                                                    
                                                                   Relevant Inspections: 321
                                                                   Total Inspections with Driver Fitness Violations: 14
                                                                   Total Driver Fitness Violations: 14




        DRIVER FITNESS VIOLATIONS


                                                                                            # Total                         # OOS                            Violation
        Violation                Description
                                                                                          Violations                      Violations                          Weight
   391.11(b)(2)                 Non-English speaking driver                                            14                              3                                      4




        INSPECTION HISTORY


                                 Report                                                 Vehicle                                                     Measure

                                                                                                                          Severity                   Time               Time Severity
             Inspection
               Date
                                       #                  ST            Plate #      Lic ST          Type                 Weight                    Weight                Weight
                                                                                                                            (A)                       (B)                  (AxB)
    1       7/18/2011           TX115JW1LA05                  TX       RF2V60           TX          Truck Tractor              4                         3                        12
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    2       6/17/2011           TX114O0EKE02                  TX       R42107           TX          Truck Tractor              4                         3                        12
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    3       6/7/2011            IA000TT060T5                  IA       RF2T75           TX          Truck Tractor              6                         3                        18
              Violation: 391.11(b)(2) Non-English speaking driver (OOS)                                                                    6     =4 (viol weight) + 2 (OOS)
    4       5/2/2011            US1126009059                  US       RF2T75           TX          Truck Tractor              4                         3                        12
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    5       11/4/2010           UTCP30003115                  UT       R42108           TN          Truck Tractor              4                         2                        8
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    6       3/24/2010           TX102BW1LA0V                  TX       R42096           TX          Truck Tractor              4                         1                        4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    7       1/25/2010           TX100PW1LA0D                  TX       RB7587           TX          Truck Tractor              4                         1                        4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    8       11/27/2009          US0934005465                  US       R42108           TX          Truck Tractor              4                         1                        4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    9       11/10/2009          US0904003048                  US       R42107           TX          Truck Tractor              6                         1                        6
              Violation: 391.11(b)(2) Non-English speaking driver (OOS)                                                                    6     =4 (viol weight) + 2 (OOS)
    10 11/3/2009                TX098J0EJM01                  TX       R42115           TX          Truck Tractor              4                         1                        4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    11 10/28/2009               SD003A011514                  SD       R42113           TX          Truck Tractor              4                         1                        4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    12 10/28/2009               SD003D000236                  SD       R42100           TX          Truck Tractor              4                         1                        4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    13 10/22/2009               COCN08011205               CO          R42099           TX          Truck Tractor              4                         1                        4
              Violation: 391.11(b)(2) Non-English speaking driver (Non-OOS)                                                                4     
    14 9/10/2009                US1126007021                  US       R42093           TX          Truck Tractor              6                         1                        6
              Violation: 391.11(b)(2) Non-English speaking driver (OOS)                                                                    6     =4 (viol weight) + 2 (OOS)



        Investigation Results Overview

         



                                                                                 EXHIBIT B
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            No serious violation(s) discovered

    Certain viola ions found during an inves igation can result in a
    for a BASIC. The status remains for 12 months following the
    inves igation.




    SERIOUS VIOLATIONS FROM INVESTIGATIONS



         There are no Serious Violations to display


    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                          




                                                                                 EXHIBIT B
                                                                                 29 of 45
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                                  Sum of Time Severity Weight (AxB)                        102                      
        Measure     =                                                                    =     = 0.20               => 86.5%
                                        Sum of Time Weight (B)                             501                      




                  Controlled Substances/Alcohol
                  Operation of CMVs by drivers who are impaired due to alcohol, illegal drugs, and misuse of prescription or over-the-counter medications. (FMCSR Part 392)




                        BASIC Overall Status
                        Does not exceed intervention threshold based upon On-road Performance
                        and Investigation Results.
                        (Based on a 24-month record ending August 26, 2011)




    On-road Performance Overview

     

                                                               MEASURE: 0
                                                               PERCENTILE:
                                                              No Violations
                                                              (Threshold: 80%)

                                                         
                                                        Relevant Inspections: 321
                                                        Total Inspections with Controlled Substances/Alcohol Violations: 0
                                                        Total Controlled Substances/Alcohol Violations: 0




    The Controlled Substances and Alcohol measure/percentile is based on Roadside Inspection reports. Some Controlled Substances and Alcohol violations are
    reported when a Roadside Inspection was performed following a traffic stop for the Controlled Substances and Alcohol violation. These reported violations do not
    always result in the issuance of a citation to the driver .




    CONTROLLED SUBSTANCES AND ALCOHOL VIOLATIONS




                                                                                 EXHIBIT B
                                                                                 30 of 45
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         There are no Violations to display


    INSPECTION HISTORY


         There are no Inspections with violations to display



    Investigation Results Overview

     

            No serious violation(s) discovered

    Certain viola ions found during an inves igation can result in a
    for a BASIC. The status remains for 12 months following the
    inves igation.




    SERIOUS VIOLATIONS FROM INVESTIGATIONS



         There are no Serious Violations to display


    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                          




                                                                                 EXHIBIT B
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                                 Sum of Time Severity Weight (AxB)                            0                      
         Measure     =                                                                     =     = 0            => No Violations
                                        Sum of Time Weight (B)                               502                     




                    Vehicle Maintenance
                    Failure to properly maintain a CMV. (FMCSR Parts 393 and 396)




                         BASIC Overall Status
                         Does not exceed intervention threshold based upon On-road Performance
                         and Investigation Results.
                         (Based on a 24-month record ending August 26, 2011)




     On-road Performance Overview

      

                                                                       MEASURE: 6.34
                                                                       PERCENTILE: 78.3%

                                                                      (Threshold: 80%)

                                                                 
                                                                Relevant Inspections: 236
                                                                Total Inspections with Vehicle Maintenance Violations: 167
                                                                Total Vehicle Maintenance Violations: 378




     VEHICLE MAINTENANCE VIOLATIONS


                                                                                                                                     # Total      # OOS      Violation
    Violation      Description
                                                                                                                                   Violations   Violations    Weight
   392.22(b)    Failing/improper placement of warning devices                                                                          1            0            2

   392.33       Operating CMV with lamps/reflectors obscured                                                                           1            0            6


                                                                                 EXHIBIT B
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   392.7          No pre-trip inspection                                                                                                        1    0   4

   392.8          Failing to inspect/use emergency equipment                                                                                    9    0   2
   393.11         No/defective lighting devices/reflective devices/projected                                                                    21   0   3
   393.11LR       Lower retroreflective sheeting/reflex reflectors - Trailer manufactured on or after 12/1/1993                                 1    0   3

   393.11TL       No retro reflective sheeting or reflex reflectors on mud flaps - Truck Tractor manufactured on or after 7/1/1997              2    0   3
   393.11TU       No upper body corners retroreflective sheeting/reflex reflectors - Truck Tractor manufactured on or after 7/1/1997            1    0   3
   393.13(c)(2) No lower rear retroreflective sheeting or reflex reflective material as required for vehicles manufactured before 12/1/1993     2    0   3

   393.13(c)(3) No upper rear retroreflective sheeting or reflex reflective material as required for vehicles manufactured before 12/1/1993     1    0   3
   393.13(d)(1) Improper side placement of retroreflective sheeting or reflex reflective material as required for vehicles manufactured on or   1    0   3
                after 12/1/1993
   393.13(d)(2) Improper lower rear placement of retroreflective sheeting or reflex reflective material requirements for vehicles               3    0   3
                manufactured before 12/1/1993
   393.13(d)(3) Upper rear retroreflective sheeting or reflex reflective material as required for vehicles manufactured on or after 12/1/1993   1    0   3

   393.17(b)      No/defective tow-away lamps on rear unit                                                                                      1    0   6
   393.19         Inoperative/defective hazard warning lamp                                                                                     4    0   6
   393.201(a)     Frame cracked / loose / sagging / broken                                                                                      6    0   2

   393.201(d)     Frame accessories improperly attached                                                                                         1    0   2
   393.205(c)     Wheel fasteners loose and/or missing                                                                                          3    1   2

   393.207(a)     Axle positioning parts defective/missing                                                                                      3    0   7
   393.207(b)     Adjustable axle locking pin missing/disengaged                                                                                2    0   7
   393.207(e)     Torsion bar cracked and/or broken                                                                                             2    0   7

   393.207(f)     Air suspension pressure loss                                                                                                  1    0   7
   393.209(e)     Power steering violations                                                                                                     7    0   6
   393.24(b)      Non-compliant fog/driving lamps                                                                                               2    0   6

   393.25(f)      Stop lamp violations                                                                                                          3    0   6
   393.28         Improper or no wiring protection as required                                                                                  3    0   3
   393.41         No or defective parking brake system on CMV                                                                                   1    0   4

   393.45         Brake tubing and hose adequacy                                                                                                6    3   4
   393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage                                                                   15   0   4

   393.45(d)      Brake connections with leaks/constrictions                                                                                    13   0   4
   393.47(a)      Inadequate brakes for safe stopping                                                                                           5    0   4
   393.47(d)      Insufficient brake linings                                                                                                    3    0   4

   393.47(e)      Clamp/Roto-Chamber type brake(s) out of adjustment                                                                            3    1   4
   393.48(a)      Inoperative/defective brakes                                                                                                  1    1   4
   393.50         Inadequate reservoir for air/vacuum brakes                                                                                    1    0   4

   393.50(c)      No means to ensure operable check valve                                                                                       4    0   4
   393.51         No or defective brake warning device                                                                                          1    1   4

   393.53(b)      Automatic brake adjuster CMV manufactured on or after 10/20/1994— air brake                                                   1    0   4
   393.55(d)(1) ABS - malfunctioning circuit/signal - truck tractor manufactured on or after 3/1/1997, single-unit CMV manufactured on or       1    0   4
                after 3/1/1998
   393.55(d)(2) ABS— malfunctioning indicator to cab of towing CMV manufactured on or after 3/1/2001                                            1    0   4
   393.55(d)(3) ABS - malfunctioning indicator connection from trailer manufactured on or after 3/1/2001                                        2    0   4
   393.55(e)      ABS-malfunctioning indicator lamps - trailer manufactured on or after 3/1/1998                                                7    0   4

   393.60(c)      Damaged or discolored windshield                                                                                              3    0   1
   393.65(f)      Improper fuel line protection                                                                                                 4    0   1
   393.67         Fuel tank requirement violations                                                                                              5    3   1

   393.75(a)      Flat tire or fabric exposed                                                                                                   3    2   8
   393.75(a)(1) Tire—ply or belt material exposed                                                                                               3    1   8
   393.75(a)(2) Tire—tread and/or sidewall separation                                                                                           22   0   8

   393.75(a)(3) Tire—flat and/or audible air leak                                                                                               1    1   8
   393.75(a)(4) Tire—cut exposing ply and/or belt material                                                                                      1    0   8

   393.75(c)      Tire—other tread depth less than 2/32 of inch                                                                                 16   0   8
   393.75(f)(1)   Weight carried exceeds tire load limit †                                                                                      1    1   3
   393.78         Windshield wipers inoperative/defective                                                                                       13   0   1

   393.83(a)      Exhaust system location                                                                                                       1    0   1
   393.83(g)      Exhaust leak under truck cab and/or sleeper                                                                                   13   0   1
   393.84         Inadequate floor condition                                                                                                    2    0   2

   393.86(a)(1) Rear impact guards—all trailers/semitrailers manufactured on or after 1/26/98                                                   3    0   2
   393.95(a)      No/discharged/unsecured fire extinguisher                                                                                     12   0   2




                                                                                 EXHIBIT B
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   393.95(a)(1) No/discharged/unsecured fire extinguisher                                                                                             2                       0            2
   (i)
   393.95(b)    No spare fuses as required                                                                                                            2                       0            2

   393.95(c)      No spare fuses as required                                                                                                          2                       0            2
   393.95(f)      No / insufficient warning devices                                                                                                   2                       0            2
   393.9(a)       Inoperative required lamps                                                                                                          17                      3            2

   393.9H         Inoperative head lamps                                                                                                              2                       0            6
   393.9TS        Inoperative turn signal                                                                                                             2                       0            6
   396.11         No or inadequate driver vehicle inspection report                                                                                   1                       0            4

   396.17(c)      Operating a CMV without periodic inspection                                                                                         6                       0            4
   396.3(a)(1)    Inspection/repair and maintenance parts and accessories                                                                             17                      2            2
   396.3A1BL      Brake-reserve system pressure loss                                                                                                  1                       0            4

   396.3A1T       Tires (general)                                                                                                                     21                      0            8
   396.5(b)       Oil and/or grease leak                                                                                                              52                      0            3




        INSPECTION HISTORY


                                     Report                                                            Vehicle                                                         Measure

                                                                                                                                              Severity                   Time       Time Severity
            Inspection
                                            #                     ST            Plate #            Lic ST             Type                    Weight                    Weight        Weight
              Date
                                                                                                                                                (A)                       (B)          (AxB)
    1    7/27/2011                  TX115SW1LA0I                     TX       R42114                   TX              Truck Tractor             3                        3               9
           Violation: 393.67 Fuel tank requirement violations  (OOS)                                                                                        3     =1 (viol weight) + 2 (OOS)
    2    7/22/2011                  TX115N0EHD01                     TX       3885GT                  OK               Truck Tractor             18                       3              54
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                  4       
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                                       4       
           Violation: 393.50(c) No means to ensure operable check valve  (Non-OOS)                                                                          4     
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                          3       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                            3     
    3    7/18/2011                  TX115JW1LA05                     TX       RF2V60                   TX              Truck Tractor             6                        3              18
           Violation: 393.25(f) Stop lamp violations  (Non-OOS)                                                                                             6     
    4    7/3/2011                   TX1154W2LA05                     TX       RF2T73                   TX              Truck Tractor             8                        3              24
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                          8     
    5    6/29/2011                  TX1150W1LA03                     TX       R42103                   TX              Truck Tractor             15                       3              45
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                          3       
           Violation: 393.65(f) Improper fuel line protection  (Non-OOS)                                                                                    1     
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                          8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                            3     
    6    6/17/2011                  TX114O0EKE02                     TX       R42107                   TX              Truck Tractor             18                       3              54
           Violation: 393.45 Brake tubing and hose adequacy  (Non-OOS)                                                                                      4     
           Violation: 393.207(f) Air suspension pressure loss  (Non-OOS)                                                                                    7     
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                  4       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                            3     
    7    6/13/2011                  AZ0234000518                     AZ       RG4G36                   TX              Truck Tractor             3                        3               9
           Violation: 393.11LR Lower retroreflective sheeting/reflex reflectors - Trailer manufactured on or after 12/1/1993 (Non-OOS)                      3     
    8    6/8/2011                   TX114F0EUL01                     TX       R42096                   TX              Truck Tractor             4                        3              12
           Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                                           2     
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                        2     
    9    6/8/2011                   US1021007796                     US       R42118                   TX              Truck Tractor             10                       3              30
           Violation: 393.75(a) Flat tire or fabric exposed  (OOS)                                                                                         10     =8 (viol weight) + 2 (OOS)
    10   6/7/2011                   IA000TT060T5                      IA      RF2T75                   TX              Truck Tractor             17                       3              51
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                                    8       
           Violation: 393.11TU No upper body corners retroreflective sheeting/reflex reflectors - Truck Tractor manufactured on or after                    3       
         7/1/1997 (Non-OOS)
           Violation: 393.9H Inoperative head lamps   (Non-OOS)                                                                                             6     
    11   5/26/2011                  TX11420EFG01                     TX       R42096                   TX              Truck Tractor             6                        3              18
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                          3       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                            3     
    12   5/23/2011                  TX113ZW1DV04                     TX       R42096                   TX              Truck Tractor             12                       3              36
           Violation: 393.13(d)(2) Improper lower rear placement of retroreflective sheeting or reflex reflective material requirements for                 3     
         vehicles manufactured before 12/1/1993 (Non-OOS)
           Violation: 393.13(d)(3) Upper rear retroreflective sheeting or reflex reflective material as required for vehicles manufactured                  3     
         on or after 12/1/1993 (Non-OOS)
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                                       4       
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                        2     
    13   5/17/2011                  US1129006352                     US       R42109                   TX              Truck Tractor             20                       3              60
           Violation: 393.55(e) ABS-malfunctioning indicator lamps - trailer manufactured on or after 3/1/1998 (Non-OOS)                                    4     
           Violation: 393.9(a) Inoperative required lamps  (Non-OOS)                                                                                        2     
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                                  8     



                                                                                 EXHIBIT B
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                                   Report                                                            Vehicle                                           Measure

                                                                                                                                 Severity                Time       Time Severity
          Inspection
            Date
                                        #                      ST             Plate #           Lic ST           Type            Weight                 Weight        Weight
                                                                                                                                   (A)                    (B)          (AxB)
           Violation: 393.9TS Inoperative turn signal   (Non-OOS)                                                                           6     
    14   5/6/2011               TX113IW1LA07                        TX      RG4G48                   TX          Truck Tractor      11                    3              33
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                            3     
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                          8     
    15   5/2/2011               TX113E0EKE04                        TX      R42109                   TX          Truck Tractor      4                     3              12
           Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                           2     
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                        2     
    16   5/2/2011               US1126009059                        US      RF2T75                   TX          Truck Tractor      20                    3              60
           Violation: 393.207(b) Adjustable axle locking pin missing/disengaged  (Non-OOS)                                                  7       
           Violation: 393.47(d) Insufficient brake linings  (Non-OOS)                                                                       4     
           Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                      1       
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                    8       
    17   4/27/2011              US1129006276                        US      R42098                   TX          Truck Tractor      13                    3              39
           Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                      1       
           Violation: 393.55(e) ABS-malfunctioning indicator lamps - trailer manufactured on or after 3/1/1998 (Non-OOS)                    4     
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                  8     
    18   4/25/2011              TX1137W1LA06                        TX      RF2V60                   TX          Truck Tractor      19                    3              57
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                    8       
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                          8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                            3     
    19   4/19/2011              TX11310EFF03                        TX      R42104                   TX          Truck Tractor      3                     3               9
           Violation: 393.28 Improper or no wiring protection as required  (Non-OOS)                                                        3     
    20   4/15/2011              US1129006229                        US      R42100                   TX          Truck Tractor      13                    3              39
           Violation: 393.9(a) Inoperative required lamps  (Non-OOS)                                                                        2     
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                  8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                            3     
    21   4/2/2011               US1023007194                        US      R42117                   TX          Truck Tractor      8                     3              24
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                  8     
    22   3/20/2011              TX11270ECB04                        TX      RG4G49                   TX          Truck Tractor      7                     3              21
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                          3       
           Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                      4       
    23   3/17/2011              TX11249DAO01                        TX      R42118                   TX          Truck Tractor      7                     3              21
           Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                      4       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                            3     
    24   3/15/2011              OH0380006867                        OH      RB7S88                   TX          Truck Tractor      6                     3              18
           Violation: 393.9H Inoperative head lamps   (Non-OOS)                                                                             6     
    25   3/15/2011              TX1122W1LA11                        TX      R42100                   TX          Truck Tractor      7                     3              21
           Violation: 393.207(b) Adjustable axle locking pin missing/disengaged  (Non-OOS)                                                  7       
    26   3/15/2011              US0802012106                        US      RF2V60                   TX          Truck Tractor      5                     3              15
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                        2       
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                          3       
    27   3/8/2011               TX111V0EEU05                        TX      R42099                   TX          Truck Tractor      4                     3              12
           Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                      4       
    28   3/3/2011               TX111QW1LA04                        TX      RF2V60                   TX          Truck Tractor      15                    3              45
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                          8     
           Violation: 393.9(a) Inoperative required lamps  (OOS)                                                                            4     =2 (viol weight) + 2 (OOS)
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                            3     
    29   2/24/2011              US0965008112                        US      R42106                   TX          Truck Tractor      16                    2              32
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                  8     
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                          8     
    30   2/18/2011              US0904004327                        US      R42107                   TX          Truck Tractor      2                     2               4
           Violation: 393.9(a) Inoperative required lamps  (Non-OOS)                                                                        2     
    31   2/17/2011              US0899008787                        US      R42118                   TX          Truck Tractor      9                     2              18
           Violation: 393.55(e) ABS-malfunctioning indicator lamps - trailer manufactured on or after 3/1/1998 (Non-OOS)                    4     
           Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                           2     
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                             1     
           Violation: 393.95(b) No spare fuses as required  (Non-OOS)                                                                       2     
    32   2/11/2011              US1010007509                        US      RG4G45                   TX          Truck Tractor      16                    2              32
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                          8     
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                  8     
    33   2/8/2011               MOC2W2012442                        MO      R42108                   TX          Truck Tractor      10                    2              20
           Violation: 393.41 No or defective parking brake system on CMV  (Non-OOS)                                                         4     
           Violation: 393.45 Brake tubing and hose adequacy  (OOS)                                                                          6     =4 (viol weight) + 2 (OOS)
    34   2/7/2011               US1297002888                        US      973DK3                   MX          Truck Tractor      10                    2              20
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                  4       
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                        2       
           Violation: 393.47(d) Insufficient brake linings  (Non-OOS)                                                                       4     
    35   2/6/2011               US1306003171                        US      R42106                   TX          Truck Tractor      13                    2              26


                                                                                 EXHIBIT B
                                                                                 35 of 45
http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=0WCT7vC4ip1YAvTJjmK9m1F8NC0oVG... 9/23/2011
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                                   Page 17 of 26



                                    Report                                                               Vehicle                                                     Measure

                                                                                                                                              Severity                 Time        Time Severity
           Inspection
             Date
                                          #                       ST             Plate #             Lic ST             Type                  Weight                  Weight         Weight
                                                                                                                                                (A)                     (B)           (AxB)
           Violation: 393.13(c)(2) No lower rear retroreflective sheeting or reflex reflective material as required for vehicles                          3       
         manufactured before 12/1/1993 (Non-OOS)
           Violation: 393.201(a) Frame cracked / loose / sagging / broken  (Non-OOS)                                                                      2     
           Violation: 393.75(a) Flat tire or fabric exposed  (Non-OOS)                                                                                    8     
    36   2/2/2011                TX110XW2LA02                        TX        RB7S88                   TX               Truck Tractor           6                      2                12
           Violation: 393.209(e) Power steering violations  (Non-OOS)                                                                                     6     
    37   1/27/2011               TX110R0EJY03                        TX        RB7S90                   TX               Truck Tractor           10                     2                20
           Violation: 393.75(a) Flat tire or fabric exposed  (OOS)                                                                                       10     =8 (viol weight) + 2 (OOS)
    38   1/21/2011               TX110L9DEL01                        TX        RG4G48                   TX               Truck Tractor           8                      2                16
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                                  8       
    39   1/20/2011               US0904004225                        US        R42106                   TX               Truck Tractor           3                      2                6
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                          3     
    40   1/4/2011                TX11040EUT05                        TX        RG4G47                   TX               Truck Tractor           10                     2                20
           Violation: 393.207(e) Torsion bar cracked and/or broken  (Non-OOS)                                                                             7     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                          3     
    41   12/30/2010              US0949008242                        US        RG4G45                   TX               Truck Tractor           12                     2                24
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                                8     
           Violation: 393.9(a) Inoperative required lamps  (Non-OOS)                                                                                      2     
           Violation: 393.205(c) Wheel fasteners loose and/or missing  (Non-OOS)                                                                          2     
    42   12/21/2010              TX109VW1LA0B                        TX        R42101                   TX               Truck Tractor         30***                    2                60
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                                     4       
           Violation: 393.47(a) Inadequate brakes for safe stopping  (Non-OOS)                                                                            4     
           Violation: 393.50(c) No means to ensure operable check valve  (Non-OOS)                                                                        4     
           Violation: 393.17(b) No/defective tow-away lamps on rear unit (Non-OOS)                                                                        6     
           Violation: 393.13(d)(2) Improper lower rear placement of retroreflective sheeting or reflex reflective material requirements for               3     
         vehicles manufactured before 12/1/1993 (Non-OOS)
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                        3       
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                        8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                          3     
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                                      2       
    43   12/16/2010              TX109Q0EAE04                        TX        RB7S89                   TX               Truck Tractor           8                      2                16
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                                  8       
    44   12/16/2010              TX109Q0EKQ02                        TX        RB7S87                   TX               Truck Tractor           3                      2                6
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                          3     
    45   12/10/2010              TX109K0EJX01                        TX        RG4G46                   TX               Truck Tractor           4                      2                8
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                4       
    46   11/23/2010              US0904004062                        US        R42107                   TX               Truck Tractor           3                      2                6
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                          3     
    47   11/18/2010              LALAAQ006402                        LA        R42113                   TX               Truck Tractor           10                     2                20
           Violation: 393.75(a)(1) Tire—ply or belt material exposed (OOS)                                                                               10     =8 (viol weight) + 2 (OOS)
    48   11/7/2010               TX108N0EJY06                        TX        R42097                   TX               Truck Tractor           6                      2                12
           Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                                    4       
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                      2     
    49   11/4/2010               UTCP30003115                        UT        R42108                   TN               Truck Tractor           4                      2                8
           Violation: 393.9(a) Inoperative required lamps  (OOS)                                                                                          4     =2 (viol weight) + 2 (OOS)
    50   11/2/2010               US0802011522                        US        973DK3                   MX               Truck Tractor           11                     2                22
           Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                                         2     
           Violation: 393.209(e) Power steering violations  (Non-OOS)                                                                                     6     
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                           1     
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                      2     
    51   11/2/2010               US1297002634                        US        274DL6                   MX               Truck Tractor           20                     2                40
           Violation: 393.47(e) Clamp/Roto-Chamber type brake(s) out of adjustment  (Non-OOS)                                                             4       
           Violation: 393.53(b) Automatic brake adjuster CMV manufactured on or after 10/20/1994— air brake (Non-OOS)                                     4       
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                                  8       
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (OOS)                                                          4      =2 (viol weight) + 2 (OOS) 
    52   11/1/2010               TX108HW2LA0L                        TX        RG4G49                   TX               Truck Tractor           7                      2                14
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                                4       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                          3     
    53   10/27/2010              TX108C0EUL05                        TX        RF2V60                   TX               Truck Tractor           3                      2                6
           Violation: 393.13(d)(2) Improper lower rear placement of retroreflective sheeting or reflex reflective material requirements for               3     
         vehicles manufactured before 12/1/1993 (Non-OOS)
    54   10/27/2010              TX108CW2LA1M                        TX        970DK3                   MX               Truck Tractor           15                     2                30
           Violation: 393.209(e) Power steering violations  (Non-OOS)                                                                                     6     
           Violation: 393.50(c) No means to ensure operable check valve  (Non-OOS)                                                                        4     
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                                      2       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                          3     
    55   10/12/2010              TX107X0EFG05                        TX        RF2V60                   TX               Truck Tractor           3                      2                6
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                        3       




                                                                                 EXHIBIT B
                                                                                 36 of 45
http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=0WCT7vC4ip1YAvTJjmK9m1F8NC0oVG... 9/23/2011
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                           Page 18 of 26



                                    Report                                                              Vehicle                                                Measure

                                                                                                                                         Severity                Time       Time Severity
           Inspection
             Date
                                         #                        ST            Plate #            Lic ST              Type              Weight                 Weight        Weight
                                                                                                                                           (A)                    (B)          (AxB)
    56   10/12/2010              US1129005636                       US        R42101                   TX               Truck Tractor       7                     2              14
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                               4       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    57   10/11/2010              TX107WW1LA0H                       TX        RF2T75                   TX               Truck Tractor       10                    2              20
           Violation: 393.24(b) Non-compliant fog/driving lamps (Non-OOS)                                                                           6     
           Violation: 393.67 Fuel tank requirement violations  (Non-OOS)                                                                            1     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    58   9/23/2010               US0802011415                       US        R42106                   TX               Truck Tractor       5                     2              10
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                     1     
           Violation: 393.95(a)(1)(i) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                          2       
           Violation: 393.9(a) Inoperative required lamps  (Non-OOS)                                                                                2     
    59   9/14/2010               US1337002327                       US        477DN5                   MX               Truck Tractor       11                    2              22
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                          8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    60   9/7/2010                TX106Y0EFI02                       TX        R42107                   TX               Truck Tractor       16                    2              32
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                               4       
           Violation: 393.75(a)(1) Tire—ply or belt material exposed (Non-OOS)                                                                      8     
           Violation: 396.17(c) Operating a CMV without periodic inspection  (Non-OOS)                                                              4       
    61   9/7/2010                US0802011344                       US        R42097                   TX               Truck Tractor       8                     2              16
           Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                                   2     
           Violation: 393.95(f) No / insufficient warning devices  (Non-OOS)                                                                        2     
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                     1     
           Violation: 393.11TL No retro reflective sheeting or reflex reflectors on mud flaps - Truck Tractor manufactured on or after              3       
         7/1/1997 (Non-OOS)
    62   9/6/2010                TX106XW1LA0J                       TX        R42098                   TX               Truck Tractor       4                     2               8
           Violation: 393.67 Fuel tank requirement violations  (Non-OOS)                                                                            1     
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                                2       
           Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                              1       
    63   9/1/2010                US0802011333                       US        R42102                   TX               Truck Tractor       3                     2               6
           Violation: 393.60(c) Damaged or discolored windshield  (Non-OOS)                                                                         1     
           Violation: 393.95(a)(1)(i) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                          2       
    64   8/29/2010               US1136007790                       US        R42113                   TX               Truck Tractor       3                     2               6
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                  3       
    65   8/24/2010               NM3414104262                       NM        R42098                   TX               Truck Tractor       17                    1              17
           Violation: 393.13(d)(1) Improper side placement of retroreflective sheeting or reflex reflective material as required for                3     
         vehicles manufactured on or after 12/1/1993 (Non-OOS)
           Violation: 393.45 Brake tubing and hose adequacy  (OOS)                                                                                  6     =4 (viol weight) + 2 (OOS)
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                               4       
           Violation: 393.55(e) ABS-malfunctioning indicator lamps - trailer manufactured on or after 3/1/1998 (Non-OOS)                            4     
    66   8/19/2010               TX106FW1LA1D                       TX        RG4G44                   TX               Truck Tractor       8                     1               8
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                  8     
    67   8/18/2010               US0904003732                       US        RG4G46                   TX               Truck Tractor       11                    1              11
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                  8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    68   8/17/2010               SCJ182002017                       SC        RB7S90                   TX               Truck Tractor       8                     1               8
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                            8       
    69   8/5/2010                TX1061W1LA11                       TX        R42099                   TX               Truck Tractor       4                     1               4
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                               4       
    70   8/4/2010                US1010006908                       US        R42102                   TX               Truck Tractor       8                     1               8
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                  8     
    71   7/26/2010               TX105R0EJY03                       TX        R42118                   TX               Truck Tractor       10                    1              10
           Violation: 393.84 Inadequate floor condition  (Non-OOS)                                                                                  2     
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                            8       
    72   7/21/2010               TX105M0EOI03                       TX        RB7S90                   TX               Truck Tractor       8                     1               8
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                            8       
    73   7/17/2010               TX105IW2LA04                       TX        R42097                   TX               Truck Tractor       11                    1              11
           Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                              1       
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                     1     
           Violation: 393.209(e) Power steering violations  (Non-OOS)                                                                               6     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    74   7/15/2010               US0919005741                       US        R42113                   TX               Truck Tractor       5                     1               5
           Violation: 393.9(a) Inoperative required lamps  (Non-OOS)                                                                                2     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    75   7/14/2010               US0930005766                       US        R42103                   TX               Truck Tractor       9                     1               9
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                  3       
           Violation: 393.55(d)(2) ABS— malfunctioning indicator to cab of towing CMV manufactured on or after 3/1/2001 (Non-OOS)                   4     
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                                2       
    76   7/6/2010                US0802011170                       US        276DS1                   MX               Truck Tractor       9                     1               9



                                                                                 EXHIBIT B
                                                                                 37 of 45
http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=0WCT7vC4ip1YAvTJjmK9m1F8NC0oVG... 9/23/2011
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                        Page 19 of 26



                                   Report                                                              Vehicle                                                 Measure

                                                                                                                                         Severity                Time    Time Severity
          Inspection
            Date
                                         #                       ST            Plate #            Lic ST             Type                Weight                 Weight     Weight
                                                                                                                                           (A)                    (B)       (AxB)
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                     1     
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                          8     
    77   6/30/2010               TX1051W1LA0Q                      TX        RG4G45                   TX              Truck Tractor         15                    1          15
           Violation: 393.47(a) Inadequate brakes for safe stopping  (Non-OOS)                                                                      4     
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                  3       
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                            8       
    78   6/18/2010               MOE1S2008619                      MO        RF2V60                   TX              Truck Tractor         16                    1          16
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                          4       
           Violation: 393.47(d) Insufficient brake linings  (Non-OOS)                                                                               4     
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                            8       
    79   6/16/2010               US1306002497                      US        182DL5                  MX               Truck Tractor         17                    1          17
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                          4       
           Violation: 393.201(a) Frame cracked / loose / sagging / broken  (Non-OOS)                                                                2     
           Violation: 393.75(a)(1) Tire—ply or belt material exposed (Non-OOS)                                                                      8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    80   6/14/2010               US0802011105                      US        23 1DN2                 MX               Truck Tractor         11                    1          11
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                          8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    81   6/14/2010               US0802011106                      US        Y30835                   TX              Semi-Trailer          15                    1          15
           Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                                   2     
           Violation: 393.95(f) No / insufficient warning devices  (Non-OOS)                                                                        2     
           Violation: 396.3A1T Tires (general)   (Non-OOS)                                                                                          8     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    82   6/8/2010                US0802011081                      US        R42092                   TX             Straight Truck         4                     1          4
           Violation: 393.11TL No retro reflective sheeting or reflex reflectors on mud flaps - Truck Tractor manufactured on or after              3       
         7/1/1997 (Non-OOS)
           Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                              1       
    83   5/31/2010               US0802011048                      US        RF2T73                   TX              Truck Tractor         11                    1          11
           Violation: 392.7 No pre-trip inspection (Non-OOS)                                                                                        4     
           Violation: 392.8 Failing to inspect/use emergency equipment  (Non-OOS)                                                                   2     
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                2     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    84   5/31/2010               US1136007482                      US        R42096                   TX              Truck Tractor         4                     1          4
           Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                              1       
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    85   5/26/2010               TX1042W2LA06                      TX        968DM6                  MX               Truck Tractor         7                     1          7
           Violation: 393.50(c) No means to ensure operable check valve  (Non-OOS)                                                                  4     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    86   5/23/2010               TX103ZW2LA04                      TX        458JJ8                  MX               Truck Tractor         14                    1          14
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                          4       
           Violation: 393.75(a)(2) Tire—tread and/or sidewall separation (Non-OOS)                                                                  8     
           Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (Non-OOS)                                                2       
    87   5/19/2010               TX103VW2LA15                      TX        R42115                   TX              Truck Tractor         3                     1          3
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    88   5/19/2010               US0898004875                      US        RG4G48                   TX              Truck Tractor         4                     1          4
           Violation: 393.84 Inadequate floor condition  (Non-OOS)                                                                                  2     
           Violation: 393.86(a)(1) Rear impact guards—all trailers/semitrailers manufactured on or after 1/26/98 (Non-OOS)                          2     
    89   5/18/2010               TX103UW1LA09                      TX        RG4G44                   TX              Truck Tractor         4                     1          4
           Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                                          4       
    90   5/13/2010               TX103P0EJL01                      TX        RB7S90                   TX              Truck Tractor         4                     1          4
           Violation: 393.11 No/defective lighting devices/reflective devices/projected  (Non-OOS)                                                  3       
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                     1     
    91   5/13/2010               TX103P0ELQ02                      TX        R42098                   TX              Truck Tractor         8                     1          8
           Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                            8       
    92   5/12/2010               TX103O9DAL03                      TX        RB7S89                   TX              Truck Tractor         3                     1          3
           Violation: 393.28 Improper or no wiring protection as required  (Non-OOS)                                                                3     
    93   5/11/2010               US1133006910                      US        R42094                   TX              Truck Tractor         9                     1          9
           Violation: 393.209(e) Power steering violations  (Non-OOS)                                                                               6     
           Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                                    3     
    94   5/11/2010               US1136007407                      US        R42099                   TX              Truck Tractor         1                     1          1
           Violation: 393.78 Windshield wipers inoperative/defective  (Non-OOS)                                                                     1     
    95   5/10/2010               US1337002012                      US        R42107                   TX              Truck Tractor         5                     1          5
           Violation: 393.45(d) Brake connections with leaks/constrictions  (Non-OOS)                                                               4       
           Violation: 393.83(g) Exhaust leak under truck cab and/or sleeper  (Non-OOS)                                                              1       
    96   4/29/2010               MS0206000545                      MS        R42105                   TX              Truck Tractor         8                     1          8
           Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                                2     
           Violation: 393.9TS Inoperative turn signal   (Non-OOS)                                                                                   6     
    97   4/20/2010               US1305002190                      US        R42099                   TX              Truck Tractor         18                    1          18



                                                                                 EXHIBIT B
                                                                                 38 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                      Page 20 of 26



                                      Report                                                          Vehicle                                         Measure

                                                                                                                                Severity                Time        Time Severity
             Inspection
               Date
                                           #                      ST           Plate #           Lic ST         Type            Weight                 Weight         Weight
                                                                                                                                  (A)                    (B)           (AxB)
              Violation: 393.45 Brake tubing and hose adequacy  (OOS)                                                                      6     =4 (viol weight) + 2 (OOS)
              Violation: 393.75(c) Tire—other tread depth less than 2/32 of inch  (Non-OOS)                                                8       
              Violation: 396.3(a)(1) Inspection/repair and maintenance parts and accessories  (OOS)                                        4      =2 (viol weight) + 2 (OOS) 
    98      4/16/2010              TX102YW1LA1W                      TX      973DK3                   MX        Truck Tractor      7                     1                7
              Violation: 393.45(b)(2) Failing to secure brake hose/tubing against mechanical damage (Non-OOS)                              4       
              Violation: 396.5(b) Oil and/or grease leak  (Non-OOS)                                                                        3     
    99      4/13/2010              MS0111001319                      MS      RF2T74                   TX        Truck Tractor      18                    1                18
              Violation: 393.19 Inoperative/defective hazard warning lamp  (Non-OOS)                                                       6     
              Violation: 393.25(f) Stop lamp violations  (Non-OOS)                                                                         6     
              Violation: 393.48(a) Inoperative/defective brakes  (OOS)                                                                     6     =4 (viol weight) + 2 (OOS)
    100 4/8/2010                   TX102Q0ELX01                      TX      R42106                   TX        Truck Tractor      2                     1                2
              Violation: 393.95(a) No/discharged/unsecured fire extinguisher  (Non-OOS)                                                    2     



        Investigation Results Overview

         

                  No serious violation(s) discovered

        Certain viola ions found during an inves igation can result in a
        for a BASIC. The status remains for 12 months following the
        inves igation.




        SERIOUS VIOLATIONS FROM INVESTIGATIONS



               There are no Serious Violations to display


        Use this page to view graphs of various aspects of your safety performance.

         


                                                                                                                                                                                   




                                                                                 EXHIBIT B
                                                                                 39 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                          Page 21 of 26




                             Sum of Time Severity Weight (AxB)                       2399                     
     Measure    =                                                                  =            = 6.34        => 78.3%
                                    Sum of Time Weight (B)                           378                      




               Cargo-Related
               Failure to properly prevent shifting loads, spilled or dropped cargo, and unsafe handling of hazardous materials on a CMV. (FMCSR Parts 392 393,397)




                    BASIC Overall Status
                    Not Public - Details of this BASIC available only to logged-in users.


                                                                                 EXHIBIT B
                                                                                 40 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                                Page 22 of 26



                              (Based on a 24-month record ending August 26, 2011)




        On-road Performance Overview

         

                                                                             MEASURE:
                                                                             PERCENTILE:
                                                                               Not Public
                                                                             (Threshold: 80%)

                                                                       
                                                                      Relevant Inspections: 236
                                                                      Total Inspections with Cargo-Related Violations: 36
                                                                      Total Cargo-Related Violations: 41




        CARGO-RELATED VIOLATIONS


                                                                                                                   # Total                    # OOS                     Violation
        Violation                 Description
                                                                                                                  Violations                Violations                   Weight
   392.9                        Failing to secure load                                                                      2                             2                        7
   392.9(a)                     Failing to secure load                                                                      2                             2                        7

   392.9(a)(2)                  Failing to secure vehicle equipment                                                         5                             4                        7
   393.102(a)                   Improper securement system (tiedown assemblies)                                             1                             0                        8
   393.102(a)(1)(i)             Insufficient means to prevent forward movement                                              1                             0                        8

   393.104(b)                   Damaged securement system/tiedowns                                                          13                            4                        7
   393.104(c)                   Damaged vehicle structures/anchor points                                                    1                             0                        7

   393.104(f)(3)                Loose/unfastened tiedown.                                                                   2                             2                        8
   393.104F4R                   No edge protection for tiedowns                                                             2                             1                        8
   393.106(a)                   No/improper front end structure/headerboard                                                 6                             0                        7

   393.106(b)                   Cargo not immobilized or secured                                                            1                             1                        8
   393.110(b)                   Insufficient tiedowns; without headerboard/blocking                                         3                             3                        8
   393.114                      No/improper front end structure                                                             1                             0                        7

   393.87                       Warning flag required on projecting load                                                    1                             0                        4




        INSPECTION HISTORY


                                  Report                                                     Vehicle                                                      Measure

                                                                                                                                 Severity                  Time             Time Severity
             Inspection
               Date
                                         #                   ST            Plate #       Lic ST          Type                    Weight                   Weight              Weight
                                                                                                                                   (A)                      (B)                (AxB)
    1       8/10/2011            TX11660EBG02                 TX          R42114            TX          Truck Tractor                 10                      3                        30
              Violation: 393.110(b) Insufficient tiedowns; without headerboard/blocking  (OOS)                                               10      =8 (viol weight) + 2 (OOS) 
    2       6/15/2011            US0934117033                 US          RF2T75            TX          Truck Tractor                 7                       3                        21
              Violation: 393.106(a) No/improper front end structure/headerboard  (Non-OOS)                                                     7       
    3       2/17/2011            US0899008787                 US          R42118            TX          Truck Tractor                 8                       2                        16
              Violation: 393.102(a)(1)(i) Insufficient means to prevent forward movement (Non-OOS)                                             8       
    4       2/8/2011             MOC2W2012442                 MO          R42108            TX          Truck Tractor                 9                       2                        18
              Violation: 392 9(a)(2) Failing to secure vehicle equipment  (OOS)                                                                9     =7 (viol weight) + 2 (OOS)
    5       1/4/2011             TX11040EUT05                 TX          RG4G47            TX          Truck Tractor                 10                      2                        20
              Violation: 393.104(f)(3) Loose/unfastened tiedown.  (OOS)                                                                      10     =8 (viol weight) + 2 (OOS)
    6       12/14/2010           TX109OW1LA07                 TX          R42107            TX          Truck Tractor                 7                       2                        14
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                              7     
    7       11/1/2010            TX108HW1LA16                 TX          458DJ8            MX          Truck Tractor                 7                       2                        14
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                              7     
    8       10/26/2010           CA3FVO009576                 CA          R42107            TX          Truck Tractor                 7                       2                        14
              Violation: 392 9(a)(2) Failing to secure vehicle equipment  (Non-OOS)                                                            7     
    9       9/23/2010            US0802011415                 US          R42106            TX          Truck Tractor                 7                       2                        14
              Violation: 393.106(a) No/improper front end structure/headerboard  (Non-OOS)                                                     7       
    10 9/7/2010                  TX106Y0EF 02                 TX          R42107            TX          Truck Tractor                 9                       2                        18


                                                                                 EXHIBIT B
                                                                                 41 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                     Page 23 of 26



                                   Report                                                    Vehicle                                          Measure

                                                                                                                       Severity                Time              Time Severity
             Inspection
               Date
                                         #                      ST        Plate #        Lic ST        Type            Weight                 Weight               Weight
                                                                                                                         (A)                    (B)                 (AxB)
              Violation: 392 9(a) Failing to secure load  (OOS)                                                                    9     =7 (viol weight) + 2 (OOS)
    11 9/1/2010                  US0802011333                     US   R42102               TX         Truck Tractor        7                     2                     14
              Violation: 393.106(a) No/improper front end structure/headerboard  (Non-OOS)                                         7       
    12 8/18/2010                 US0904003732                     US   RG4G46               TX         Truck Tractor        7                     1                     7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                  7     
    13 8/4/2010                  US1010006908                     US   R42102               TX         Truck Tractor        15                    1                     15
              Violation: 393.104F4R No edge protection for tiedowns  (Non-OOS)                                                     8     
              Violation: 393.106(a) No/improper front end structure/headerboard  (Non-OOS)                                         7       
    14 7/26/2010                 TX105R0EJY03                     TX   R42118               TX         Truck Tractor        9                     1                     9
              Violation: 392 9 Failing to secure load   (OOS)                                                                      9     =7 (viol weight) + 2 (OOS)
    15 6/30/2010                 TX1051W1LA0Q                     TX   RG4G45               TX         Truck Tractor        9                     1                     9
              Violation: 393.104(b) Damaged securement system/tiedowns  (OOS)                                                      9     =7 (viol weight) + 2 (OOS)
    16 6/28/2010                 US0802011139                     US   RG4G44               TX         Truck Tractor        10                    1                     10
              Violation: 393.104F4R No edge protection for tiedowns  (OOS)                                                        10     =8 (viol weight) + 2 (OOS)
    17 5/31/2010                 US1136007482                     US   R42096               TX         Truck Tractor        7                     1                     7
              Violation: 393.106(a) No/improper front end structure/headerboard  (Non-OOS)                                         7       
    18 5/26/2010                 MSU044002574                     MS   R42099               TX         Truck Tractor        10                    1                     10
              Violation: 393.110(b) Insufficient tiedowns; without headerboard/blocking  (OOS)                                    10      =8 (viol weight) + 2 (OOS) 
    19 5/19/2010                 TX103VW2LA15                     TX   R42115               TX         Truck Tractor        7                     1                     7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                  7     
    20 5/18/2010                 TX103UW1LA09                     TX   RG4G44               TX         Truck Tractor        11                    1                     11
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                  7     
              Violation: 393 87 Warning flag required on projecting load   (Non-OOS)                                               4     
    21 5/13/2010                 TX103P0EJL01                     TX   RB7S90               TX         Truck Tractor        9                     1                     9
              Violation: 393.104(b) Damaged securement system/tiedowns  (OOS)                                                      9     =7 (viol weight) + 2 (OOS)
    22 5/13/2010                 TX103P0ELQ02                     TX   R42098               TX         Truck Tractor        10                    1                     10
              Violation: 393.110(b) Insufficient tiedowns; without headerboard/blocking  (OOS)                                    10      =8 (viol weight) + 2 (OOS) 
    23 5/12/2010                 TX103O9DAL03                     TX   RB7S89               TX         Truck Tractor        9                     1                     9
              Violation: 392 9 Failing to secure load   (OOS)                                                                      9     =7 (viol weight) + 2 (OOS)
    24 4/7/2010                  US1126007706                     US   R42116               TX         Truck Tractor        7                     1                     7
              Violation: 393.104(c) Damaged vehicle structures/anchor points  (Non-OOS)                                            7     
    25 4/6/2010                  CA3FY4001103                     CA   RF2T73               TX         Truck Tractor        17                    1                     17
              Violation: 392 9(a)(2) Failing to secure vehicle equipment  (OOS)                                                    9     =7 (viol weight) + 2 (OOS)
              Violation: 393.102(a) Improper securement system (tiedown assemblies)  (Non-OOS)                                     8       
    26 1/9/2010                  US0898004519                     US   R42117               TX         Truck Tractor        9                     1                     9
              Violation: 393.104(b) Damaged securement system/tiedowns  (OOS)                                                      9     =7 (viol weight) + 2 (OOS)
    27 12/20/2009                US1306002023                     US   R42114               TX         Truck Tractor        7                     1                     7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                  7     
    28 12/14/2009                TX099OW1LA02                     TX   RB7S88               TX         Truck Tractor        18                    1                     18
              Violation: 392 9(a)(2) Failing to secure vehicle equipment  (OOS)                                                    9     =7 (viol weight) + 2 (OOS)
              Violation: 393.104(b) Damaged securement system/tiedowns  (OOS)                                                      9     =7 (viol weight) + 2 (OOS)
    29 12/10/2009                US0904003105                     US   RF2T73               TX         Truck Tractor        7                     1                     7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                  7     
    30 12/7/2009                 US0898004462                     US   R42101               TX         Truck Tractor        7                     1                     7
              Violation: 393.114 No/improper front end structure  (Non-OOS)                                                        7     
    31 12/2/2009                 US1126007262                     US   RF2M24               TX         Truck Tractor        7                     1                     7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                  7     
    32 11/3/2009                 TX098J0EJM01                     TX   R42115               TX         Truck Tractor        20                    1                     20
              Violation: 393.104(f)(3) Loose/unfastened tiedown.  (OOS)                                                           10     =8 (viol weight) + 2 (OOS)
              Violation: 393.106(b) Cargo not immobilized or secured  (OOS)                                                       10     =8 (viol weight) + 2 (OOS)
    33 10/25/2009                US1306001848                     US   R42105               TX         Truck Tractor        7                     1                     7
              Violation: 393.104(b) Damaged securement system/tiedowns  (Non-OOS)                                                  7     
    34 10/4/2009                 US1133006237                     US   R42118               TX         Truck Tractor        7                     1                     7
              Violation: 393.106(a) No/improper front end structure/headerboard  (Non-OOS)                                         7       
    35 9/15/2009                 NM3566100367                     NM   RB7S87               TX         Truck Tractor        9                     1                     9
              Violation: 392 9(a)(2) Failing to secure vehicle equipment  (OOS)                                                    9     =7 (viol weight) + 2 (OOS)
    36 9/1/2009                  US1133006161                     US   R42101               TX         Truck Tractor        9                     1                     9
              Violation: 392 9(a) Failing to secure load  (OOS)                                                                    9     =7 (viol weight) + 2 (OOS)



        Investigation Results Overview

         

        Details of Investigation Results are only available to logged in users.




                                                                                 EXHIBIT B
                                                                                 42 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                    Page 24 of 26



    Certain viola ions found during an inves igation can result in a
    for a BASIC. The status remains for 12 months following the
    inves igation.




    Use this page to view graphs of various aspects of your safety performance.

     


                                                                                                                                                                 




                 Crash Indicator
                 Histories or patterns of high crash involvement, including frequency and severity. It is based on information from State-reported crashes.




                      BASIC Overall Status
                      Not Public - Details of this BASIC available only to logged-in users.
                      (Based on a 24-month record ending August 26, 2011)




    On-road Performance Overview

     

                                                                MEASURE:
                                                                PERCENTILE:


                                                                                 EXHIBIT B
                                                                                 43 of 45
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Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                           Page 25 of 26



                                                                   Not Public
                                                                 (Threshold: 65%)




                                                           
                                                          Average Power Units: 37
                                                          Vehicle Miles Traveled (VMT): 3,301,332
                                                          VMT Year: 2010   VMT Source: Investigation - MCS151

                                                          Average Power Units (APU) x Utilization Factor (UF): 39.4
                                                          Number of Crashes: 4
                                                          Number Tow-aways: 4
                                                          Number with Injuries or Fatalities: 2
                                                          Number with HM Release: 0
       Crash Indicator measure/percentile represents carrier accident involvement only and is not intended as a means to assess fault. For more information please visit
       our Information Center.




       CRASH ACTIVITY DETAIL(List of vehicles involved in crashes)

                        Report                                Vehicle                          Crash                                    Measure
                                                                                                                   Sev. Wt.        Time Wt         Time Sev.
             Date           #           Lic ST       Vh ST        Plate       Fata      Inj.      Tow      Spill
                                                                                                                    (A)              (B)           Wt. (AxB)
   1       6/23/2011    TX39EEHQE1QI       MX           TX         R42117           0      0           Y     N           1              3                   3
   2       3/14/2011    TX367EHQE13A       MX           TX         RT2T74           0      0           Y     N           1              3                   3
   3       2/15/2010    OH0106431527       MX           TX         R42098           0      5           Y     N           2              1                   2

   4       10/12/2009   TX245515607W       MX           TX         R42109           0      1           Y     N           2              1                   2




       Use this page to view graphs of various aspects of your safety performance.

        


                                                                                                                                                                        




                                                                                 EXHIBIT B
                                                                                 44 of 45
http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=0WCT7vC4ip1YAvTJjmK9m1F8NC0oVG... 9/23/2011
Federal Motor Carrier Safety Administration: SMS - Safety Measurement System                                                                                                          Page 26 of 26



    *
    USE OF SMS DATA/INFORMATION

    The data in the Safety Measurement System (SMS) is performance data used by the Agency and Enforcement Community. A                                 symbol, based on that data, indicates
    hat FMCSA may priori ize a motor carrier for further monitoring.

    The      symbol is not intended to imply any federal safety rating of the carrier pursuant to 49 USC 31144. Readers should not draw conclusions about a carrier's overall
    safety condition simply based on the data displayed in this system. Unless a motor carrier in the SMS has received an UNSATISFACTORY safety rating pursuant to 49
    CFR Part 385, or has otherwise been ordered to discon inue operations by the FMCSA, it is authorized to operate on the nation's roadways.


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                                                                                 EXHIBIT B
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http://ai.fmcsa.dot.gov/SMS/Data/CarrierSummary.aspx?enc=0WCT7vC4ip1YAvTJjmK9m1F8NC0oVG... 9/23/2011
EXHIBIT C
             United States Government Accountability Office

GAO          Report to Congressional Requesters




July 2009
             MOTOR CARRIER
             SAFETY

             Reincarnating
             Commercial Vehicle
             Companies Pose
             Safety Threat to
             Motoring Public;
             Federal Safety Agency
             Has Initiated Efforts
             to Prevent Future
             Occurrences




GAO-09-924                                              EXHIBIT C
                                                        1 of 30
                                                    July 2009


                                                    MOTOR CARRIER SAFETY
             Accountability Integrity Reliability



Highlights
Highlights of GAO-09-924, a report to
                                                    Reincarnating Commercial Vehicle Companies Pose
                                                    Safety Threat to Motoring Public; Federal Safety
                                                    Agency Has Initiated Efforts to Prevent Future
congressional requesters
                                                    Occurrences


Why GAO Did This Study                              What GAO Found
In 2008, the Federal Motor Carrier                  GAO’s analysis of FMCSA data for fiscal years 2007 and 2008 identified 20
Safety Administration (FMCSA)                       motor coach companies that likely reincarnated from “out of service” carriers.
reports that there were about 300                   This represents about 9 percent of the approximately 220 motor coach
fatalities from bus crashes in the                  carriers that FMCSA placed out of service during these 2 fiscal years. The
United States. Although bus                         number of likely reincarnated motor carriers is understated, in part, because
crashes are relatively rare, they are
particularly deadly since many
                                                    GAO’s analysis was based on exact matches and also could not identify
individuals may be involved.                        owners who purposely provided FMCSA deceptive information on the
FMCSA tries to identify unsafe                      application (e.g., ownership) to hide the reincarnation from the agency.
motor coach carriers and take                       Although the number of reincarnated motor coach carriers that GAO
them off the road.                                  identified was small, these companies pose a safety threat to the motoring
                                                    public. According to FMCSA officials, under registration and enforcement
GAO was asked to determine (1) to                   policies up to summer 2008, reincarnation was relatively simple to do and
the extent possible, the number of                  hard to detect. As a result, motor coach carriers known to be safety risks were
motor coach carriers registered                     continuing to operate. According to FMCSA data, 5 of the 20 bus companies
with FMCSA as new entrants in                       were still in operation as of May 2009. GAO referred these cases to FMCSA for
fiscal years 2007 and 2008 that are                 further investigation.
substantially related to or in
essence the same carriers the
agency previously ordered out of                    Examples of Reincarnating Motor Coach Carriers
service, and (2) what tools FMCSA                                Reason for out-of-
                                                     Location    service order             Description
uses to identify reincarnated                        Texas       Failure to pay a $2,380       •    Owner of “out-of-service” carrier registered
carriers. To identify new entrants                               fine related to 5 safety           “new entrant” carrier in daughter’s name.
that were substantially related to                               violations.                   •    In 2008, the new carrier’s new entrant
carriers placed out of service, GAO                                                                 registration was revoked and the owner was
analyzed FMCSA data to find                                                                         convicted of cocaine possession.
matches on key fields (e.g.,                         New York    Failure to pay fine.          •    “New entrant”“ carrier was located in a
ownership, phone numbers, etc.).                                                                    church. The “out-of-service” carrier was
                                                                                                    located next door in a school affiliated with
GAO’s analysis understates the                                                                      the church.
actual number of reincarnated                                                                  •    FMCSA had not conducted a new entrant
carriers because, among other                                                                       review of the new company as of July 2009.
things, the matching scheme used                     California  Failure to pay                •    New motor coach business located in retail
cannot detect minor spelling                                     approximately $5,000               store.
changes or other deception efforts.                              fine related to 11 safety     •    Several brochures and business cards of
                                                                 violations.                        “out-of-service” carrier were displayed on
GAO also interviewed FMCSA                                                                          counter.
officials on how the agency                                                                    •    In June 2009, the new carrier was ordered
identifies reincarnated carriers.                                                                   out-of–service for failing to pay a fine.
                                                    Source: GAO.
GAO is not making any
recommendations. In July 2009,
GAO briefed FMCSA on its findings                   The 20 cases that GAO identified as likely reincarnations were registered with
and incorporated the agency’s                       FMCSA at the time that FMCSA did not have any dedicated controls in place
comments, as appropriate.                           to prevent motor coach carriers from reincarnating. In 2008, FMCSA
                                                    instituted a process to identify violators by checking applicant information
                                                    against those of poor-performing carriers. For example, if FMCSA finds a new
                                                    entrant with a shared owner name or company address for an out-of-service
                                                    company, the agency will make inquiries to determine if the new applicant is
View GAO-09-924 or key components.
                                                    related to the out-of-service carrier. If such a determination is made, FMCSA
For more information, contact Gregory Kutz at       still faces legal hurdles, such as proving corporate successorship, to deny the
(202) 512-6722 or kutzg@gao.gov.                    company operating authority.
                                                                                                                       EXHIBIT C
                                                                                                    United States Government Accountability Office
                                                                                                                        2 of 30
Contents


Letter                                                                                    1
               Background                                                                 3
               Reincarnated Motor Carriers Exist                                          6
               Tools FMCSA Uses to Identify Reincarnated Carriers and Their
                 Limitations                                                            12
               Corrective Action Briefing                                               16

Appendix I     Scope and Methodology                                                    18



Appendix II    Reincarnated Motor Coach Carriers                                        20



Appendix III   Summary of Reincarnated Motor Coach Carriers                             24



Appendix IV    GAO Contact and Staff Acknowledgments                                    25



Tables
               Table 1: Summary Information on Potentially Reincarnated Motor
                        Coach Carriers                                                    8
               Table 2: Summary Information on Potentially Reincarnated Motor
                        Coach Carriers                                                  20
               Table 3: Match Results on Key Identifying Fields for Potentially
                        Reincarnated Carriers                                           24




               Page i                                        GAO-09-924 Motor Carrier Safety
                                                                     EXHIBIT C
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Abbreviations

DOT         Department of Transportation
EMIS        Enforcement Management Information System
FMCSA       Federal Motor Carrier Safety Administration
IRP         International Registration Plan
L&I         Licensing & Insurance
MCMIS       Motor Carrier Management Information System
PCVP        Passenger Carrier Vetting Process
PRISM       Performance and Registration Information Systems Management



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without further permission from GAO. However, because this work may contain
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necessary if you wish to reproduce this material separately.




Page ii                                                  GAO-09-924 Motor Carrier Safety
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United States Government Accountability Office
Washington, DC 20548




                                   July 28, 2009

                                   The Honorable James L. Oberstar
                                   Chairman
                                   Committee on Transportation and Infrastructure
                                   House of Representatives

                                   The Honorable Peter A. DeFazio
                                   Chairman
                                   Subcommittee on Highways and Transit
                                   Committee on Transportation and Infrastructure
                                   House of Representatives

                                   The Honorable Eddie Bernice Johnson
                                   House of Representatives

                                   On August 8, 2008, a bus carrying a group of people on a religious
                                   pilgrimage crashed in Sherman, Texas, killing 17 people and injuring 15
                                   others. State and federal investigators attributed the accident to the loss of
                                   tread on a recapped tire installed on the bus’s front right steering axle—
                                   the use of recapped tires on the steering wheels is a violation of federal
                                   regulations. The driver lost control of the bus, struck a curb, and crashed
                                   through the guardrail of a bridge. The bus fell about 8 feet, landed on its
                                   right side and slid about 24 feet. Twelve passengers died at the scene,
                                   while five others died after being taken to nearby hospitals. The carrier
                                   that operated the bus was the reincarnation of a motor coach company
                                   that had been deemed unsafe and ordered out of service by the Federal
                                   Motor Carrier Safety Administration (FMCSA) 2 months prior to the
                                   accident. The new company registered with FMCSA using the same
                                   physical and mailing addresses as the carrier ordered out of service. At the
                                   time of the crash, the carrier did not have proper operating authority from
                                   FMCSA, because it had not yet designated a process agent or provided
                                   proof of insurance to FMCSA. Thus, specifying a process agent and
                                   providing proof of insurance were the only steps standing in the way of the
                                   new company obtaining operating authority from FMCSA.

                                   According to FMCSA, in 2008 about 300 fatalities occurred nationwide
                                   associated with motor coach carriers.1 In an attempt to reduce the number


                                   1
                                    Crashes involving motor coach carriers may result from errors by bus or passenger-vehicle
                                   drivers; vehicle condition; and other factors.



                                   Page 1                                                  GAO-09-924 Motor Carrier Safety
                                                                                                     EXHIBIT C
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and severity of crashes involving buses, FMCSA seeks to identify unsafe
motor coach carriers and take them off the road. Motor coach carriers
ordered out of service are not supposed to return to the road until FMCSA
determines that safety compliance issues have been resolved.

The Committee is concerned that unscrupulous owners may attempt to
evade the out-of-service orders by closing down and reopening as new bus
companies, a practice known as “morphing” or “reincarnating.”2 To
address the serious safety concerns of reincarnating motor coach carriers,
you asked us to determine (1) to the extent possible, the number of motor
coach carriers registered with FMCSA as new entrants in fiscal years 2007
and 2008 that are substantially related to or in essence the same carriers
the agency ordered out of service, and (2) what tools FMCSA uses to
identify reincarnated carriers.

To identify new entrants that registered with FMCSA and were
substantially related to motor coach carriers ordered out of service, we
analyzed FMCSA data to find exact matches on key fields (i.e., company
name, owner/officer name, address, phone number, cell phone number,
fax number, vehicle identification number, and driver names). Our
analysis understates the actual number of reincarnated motor coach
carriers since the matching scheme used cannot detect minor spelling
changes or other deception efforts, such as changing the company’s name,
address, and ownership. In addition, our analysis is understated because
FMCSA only provided us data on vehicles and drivers when an accident or
inspection took place, and thus the data does not include the entire
population of vehicles or drivers for either new entrants or out-of-service
carriers. Our analysis also could not identify all reincarnated motor coach
carriers where the owners purposely provided FMCSA bogus information
on the application (e.g., ownership) to hide the reincarnation from
FMCSA. For the motor coach carriers identified, we interviewed, if
possible, the owners to validate whether the company had reincarnated.

To determine the tools FMCSA uses to identify reincarnated motor coach
carriers, we interviewed FMSCA officials on the process that the agency
uses to identify potentially reincarnating carriers. We also obtained and


2
  GAO recently issued another report that looked at FMCSA use of commercial vehicle
registrations to identify and prevent the registrations of vehicles of reincarnating carriers,
which includes motor coach companies. See GAO, Motor Carrier Safety: Commercial
Vehicle Registration Program Has Kept Unsafe Carriers from Operating, but
Effectiveness Is Difficult to Measure, GAO-09-495 (Washington, D.C.: May 12, 2009).




Page 2                                                      GAO-09-924 Motor Carrier Safety
                                                                      EXHIBIT C
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             examined policies and other FMCSA documentation to obtain an
             understanding of the design of its motor carrier enrollment process. We
             did not perform any tests of the controls and therefore cannot make a
             conclusion on the effectiveness of any controls in place or whether they
             have reduced the number of reincarnated carriers. For more details on our
             methodology, see appendix I.

             We conducted the work for this investigation from November 2008
             through July 2009 in accordance with quality standards for investigations
             as set forth by the Council of the Inspectors General on Integrity and
             Efficiency.


             FMCSA’s primary mission is to reduce the number and severity of crashes
Background   involving large commercial trucks and buses conducting interstate
             commerce. It carries out this mission in the following ways: issuing,
             administering, and enforcing federal motor carrier safety and hazardous
             materials regulations; and gathering and analyzing data on motor carriers,
             drivers, and vehicles, among other things. FMCSA also takes enforcement
             actions and funds and oversees enforcement activities at the state level
             through Motor Carrier Safety Assistance Program grants.

             For-hire motor carriers are required to register with FMCSA and obtain
             federal operating authority before operating in interstate commerce.
             Applicants for passenger carrier operating authority must submit certain
             information to FMCSA, including contact information and U.S.
             Department of Transportation (DOT) number, and must certify that they
             have in place mandated safety procedures. After publication of the
             applicant’s information in the FMCSA Register, a 10-calendar-day period
             begins in which anyone can challenge the application. Within 90 days of
             the publication, the carrier’s insurance company must file proof of the
             carrier’s insurance with FMCSA. Applicants must also designate a process
             agent, a representative upon whom court orders may be served in any
             legal proceeding. After FMCSA has approved the application, insurance,
             and process agent filings, and the protest period has ended without any
             protests, applicants are issued operating authority.

             FMCSA ensures that carriers, including motor coach carriers, comply with
             safety regulations primarily through compliance reviews of carriers
             already in the industry and safety audits of carriers that have recently




             Page 3                                         GAO-09-924 Motor Carrier Safety
                                                                    EXHIBIT C
                                                                    7 of 30
started operations.3 Compliance reviews and safety audits help FMCSA
determine whether carriers are complying with its safety regulations and,
if not, to take enforcement action against them, including placing carriers
out of service.4 FMCSA makes its compliance determination based on
performance in six areas: one area is the carrier’s crash rate, and the other
five areas involve the carrier’s compliance with regulations, such as
insurance coverage, driver qualifications, and vehicle maintenance and
inspections.

Carriers are assigned one of three Carrier Safety Ratings based on their
compliance with the Federal Motor Carrier Safety Regulations (FMCSR).
These ratings include “satisfactory,” for a motor carrier that has in place
and functioning adequate safety management controls to meet federal
safety fitness standards; “conditional,” for a motor carrier that does not
have adequate safety management controls in place to ensure compliance
with the safety fitness standard, that could result in a violation of federal
safety regulations; or “unsatisfactory,” for a motor carrier that does not
have adequate safety management controls in place to ensure compliance
with the safety fitness standard, which has resulted in a violation of
federal safety regulations.

Carriers receiving an unsatisfactory rating have either 45 days (for carriers
transporting hazardous materials in quantities that require placarding or
transporting passengers) or 60 days (for all other carriers) to address the
safety concerns. If a carrier fails to demonstrate it has taken corrective
action acceptable to FMCSA, FMCSA will revoke its new entrant
registration and issue an out-of-service order, which prohibits the carrier
from operating until the violations are corrected. Further fines are
assessed if it is discovered that it is operating despite the out-of-service
order.




3
  FMCSA and state law enforcement agency capabilities are dwarfed by the size of the
industry and, as a result, are only able to conduct compliance reviews on about 2 percent
of carriers—about 18,400 in fiscal year 2008. Safety audits are required for all new entrants
to the trucking industry; approximately 37,400 safety audits were conducted in fiscal year
2008. In addition to compliance reviews and safety audits, FMCSA and state law
enforcement agencies conduct about 2.3 million vehicle inspections each year at weigh
stations and other locations to assess the safety compliance of individual vehicles.
4
 Safety audits and compliance reviews also provide education and outreach opportunities
for motor coach carriers and drivers on safety.




Page 4                                                     GAO-09-924 Motor Carrier Safety
                                                                     EXHIBIT C
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Federal law requires new carriers to undergo a new-entrant safety audit
within 18 months of when the company begins to operate. Carriers are
then monitored on an ongoing basis using various controls that include but
are not limited to annual vehicle inspections and driver qualification
regulations. However, FMCSA may suspend a company or vehicle’s
operation at any time by ordering it out of service if it determines that an
imminent safety hazard exists. (An imminent hazard means any condition
of vehicle, employee, or commercial motor vehicle operations which
substantially increases the likelihood of serious injury or death if not
discontinued immediately.) In addition, FMCSA orders carriers out of
service for failure to pay civil penalties levied by FMCSA, failing to take
required corrective actions related to prior compliance reviews, or failing
to schedule a safety audit. Out-of-service carriers are supposed to cease
operations and not resume operations until FMCSA determines that they
have corrected the conditions that rendered them out of service. If a
carrier fails to comply with or disregards an out-of-service order, FMCSA
may assess a civil monetary penalty each time a vehicle is operated in
violation of the order.

FMCSA and state law enforcement agencies use several methods to ensure
that carriers ordered out of service, including motor coach companies, do
not continue to operate. For example, FMCSA and its state partners
monitor data on roadside inspections, moving violations, and crashes to
identify carriers that may be violating an out-of-service order. FMCSA will
visit some suspect carriers that it identifies by monitoring crash and
inspection data to determine whether those carriers violated their orders.
Also, recently, the Commercial Vehicle Safety Alliance began to require
checking for carriers operating under an out-of-service order during
roadside inspections and to take enforcement action against any that are.
However, given the large size of the industry, the nation’s extensive road
network, and the relatively small size of federal and state enforcement
staffs, it is difficult to catch motor coach carriers that are violating out-of-
service orders. In addition, some carriers change their identities by
changing their names and obtaining new DOT numbers5—these carriers
are generally referred to as reincarnating carriers—to avoid being caught.




5
 The DOT number serves as a unique identifier when collecting and monitoring a carrier’s
safety information acquired during audits, compliance reviews, crash investigations, and
inspections. Companies that operate commercial vehicles transporting passengers in
interstate commerce must be registered with FMCSA and must have a DOT number.




Page 5                                                  GAO-09-924 Motor Carrier Safety
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                     Our analysis of FMCSA data for fiscal years 2007 and 2008 identified 20
Reincarnated Motor   motor coach companies6 that likely reincarnated from “out-of-service”
Carriers Exist       carriers.7 This represents about 9 percent of the approximately 220 motor
                     coach carriers that FMCSA ordered out of service8 for those fiscal years.9
                     The analysis was based on two or more exact matches of data for the new
                     entrant with the data for the out-of-service carriers on the following
                     categories: company name, owner/officer name, address, phone number,
                     cell phone number, fax number, vehicle identification number, and driver
                     names. These 20 motor coach companies registered with FMCSA before
                     FMCSA developed processes specifically for detecting reincarnated bus
                     companies that were established subsequent to the Sherman, Texas, crash
                     (see next section). The number of potential reincarnated motor coach
                     carriers is understated because (1) our analysis was based on exact
                     matches, so it could not find links if abbreviations were used or typos
                     occurred in the data, (2) FMCSA only provided us data on vehicles and
                     drivers when an accident or inspection took place, and thus the provided
                     FMCSA data does not include the entire population of vehicles or drivers
                     for either new entrants or out-of-service carriers, and (3) our analysis
                     could not identify owners who purposely provided FMCSA bogus or
                     otherwise deceptive information on the application (e.g., ownership) to
                     hide the reincarnation from the agency. Although the number of
                     reincarnated motor coach carriers that we could identify was relatively
                     small, the threat these operators pose to the public has proven deadly.
                     According to FMCSA officials, registration and enforcement policies at the
                     time of the Sherman, Texas, crash, reincarnation was relatively simple to
                     do and hard to detect. As a result, motor coach carriers known to be safety
                     risks were continuing to operate, such as the company that was involved
                     in the bus crash in Sherman, Texas.

                     Five of the reincarnated carriers we identified were still operating as of
                     May 2009. Our investigation found one of them had not received a safety


                     6
                      For the 20 cases we identified, 13 were granted operating authority by FMCSA.
                     7
                      For carrier types other than motor coach, such as commercial trucking, our analysis
                     identified 1,073 potentially reincarnated companies for the same 2 fiscal years. Of these, at
                     least 500 are still active as of June 2009. We referred the active carriers to FMCSA for
                     further investigation.
                     8
                     This number includes carriers ordered out of service for reasons other than failure to
                     make contact with DOT while they are in the New Entrant program.
                     9
                      According to FMCSA, there were approximately 4,000 motor coach carriers that were
                     operating during fiscal year 2008.




                     Page 6                                                     GAO-09-924 Motor Carrier Safety
                                                                                          EXHIBIT C
                                                                                          10 of 30
evaluation and two carriers had been given a conditional rating after the
agency determined its safety management controls were inadequate. The
remaining two motor coach carriers were deemed satisfactory in a FMCSA
compliance review because FMCSA inspectors were likely not aware of
the potential reincarnations. We referred all five companies to FMCSA for
further investigation. Based on our review of FMCSA data, we found that
the agency already identified six of the 20 reincarnated motor coach
carriers and ordered them out of service. The agency discovered them
while performing a crash investigation (as in the case of the bus accident
in Sherman, Texas), compliance reviews, or other processes. In addition,
new carriers are subject to a safety audit within 18 months.10

Several of the reincarnated carriers we identified were small businesses
located in states neighboring Mexico and making trips across the border.
Our investigation also determined that all of the reincarnated motor coach
carriers we identified were directly related to companies that received
fines for safety problems shortly before being ordered out of service.
Based on our analysis of the FMCSA data, we believe they reincarnated to
avoid paying these fines and continue their livelihood. For example, we
found instances where carriers continued to operate despite being ordered
out of service for failure to pay their fines. In fact, one carrier was
operating for several months after being placed out of service. We believe
that these carriers reincarnated into new companies to evade fines and
avoid performing the necessary corrective actions.

We attempted to contact the owners to ask why they reincarnated but
were unable to reach many of them. For the six owners that we did
interview none said that they had shut down their old companies and
opened new ones to evade the out-of-service orders.

Table 1 summarizes information on 10 of the 20 cases that we investigated.
Appendix II provides details on 10 others we examined. Appendix III
provides a summary of the key data elements that matched on the new
entrants that were substantially related to out-of-service carriers.




10
   FMCSA officials stated that they have an internal policy of conducting safety audits of
motor coach new entrants within 9 months and claim that they currently conduct these
audits within 5 months.




Page 7                                                     GAO-09-924 Motor Carrier Safety
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Table 1: Summary Information on Potentially Reincarnated Motor Coach Carriers

Case     State        Details
1        Texas        •   FMCSA data indicate that the “new company” carrier had the same phone number, fax number and cell
                          phone number as the “old company” carrier.
                      •   The new company started in March 2007, eight months before FMCSA ordered the old company out of
                          service.
                      •   Six days after the new company was formed, a motor coach carrying sixteen passengers operated by
                          the old company was stopped and inspected on the US/Mexico border ay Laredo, Texas. The old
                          company was charged with five violations and fined $2,380.
                      •   FMCSA ordered the old company out of service in November 2007 for failing to a pay a fine.
                      •   In 2008, the new carrier’s new entrant registration was revoked and the owner was convicted of cocaine
                          possession.
2        New York     •   FMCSA data indicate that the “new company” carrier had the same fax number, company officer name,
                          driver, and vehicle as the “old company” carrier.
                      •   The old company was subject to a compliance review in May 2007 and was cited for five safety
                          violations, including failure to implement an alcohol and controlled substances testing program.
                      •   The new company started in August 2007 and was located at a church. The location of the old carrier
                          was a school located next to and affiliated with the church.
                      •   FMCSA had not conducted a new-entrant safety audit of the carrier, as of July 2009.
3        California   •   FMCSA data indicate that the “new company” carrier had the same phone number and company officer
                          as the “old company” carrier.
                      •   In December 2006, FMCSA cited the old company for eleven safety violations including failure to
                          implement an alcohol and controlled substances testing program.
                      •   The old company was ordered out of service in February 2007 for failure to address the violations. In
                          addition, in March 2007, the old company was charged with operating despite being subject to the above
                          out-of-service order and fined $5,620.
                      •   The new company started in June 2008 and received a satisfactory safety rating in October 2008.
                      •   A week after our interview FMCSA revoked the new company’s authority, and in June 2009, ordered it
                          out-of-service for falling to pay a fine.
4        California   •   FMCSA data indicate that the “new company” carrier had the same business name, address, company
                          officer name, phone number, and some of the same drivers and vehicles as the “old company” carrier.
                      •   The old company was cited for twenty-seven safety violations and fined $2,000 in April 2007. Violations
                          included using drivers before they received a negative controlled substance test.
                      •   The old company was ordered out of service in September 2007 for failure to pay the above fine.
                      •   In October 2007, FMCSA found the old company still operating a motor coach despite its out-of-service
                          order. A fine of $6,910 was assessed.
                      •   The old company was cited for fifteen safety violations in a January 2008 compliance review. Violations
                          included knowingly allowing an employee to operate a commercial motor vehicle with a suspended
                          license. A fine of $2,000 was assessed.
                      •   The new company started in May 2008 and ordered it out of service in October 2008 as unfit.




                                         Page 8                                                   GAO-09-924 Motor Carrier Safety
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                                                                                                           12 of 30
Case   State      Details
5      Texas      •   FMCSA data indicate that the “new company” carrier had the same address, phone number, fax number,
                      and company officer name as the “old company” carrier. In addition, the “new company” business name
                      was the Spanish translation of the “old company” carrier’s name.
                  •   The old company had a compliance review in November 2006 and was cited for eleven safety violations.
                      It received a conditional safety rating. The violations included using a driver before receiving a negative
                      pre-employment controlled substance test.
                  •   In February 2008, the old company was subject to another compliance review and was cited for ten
                      safety violations. It received an unsatisfactory rating. The violations included using a driver before
                      receiving a negative controlled substance test and failing to annually conduct the required amount of
                      random alcohol and controlled substances testing. A fine of $143,000 was later levied.
                  •   In April 2008, the old company was ordered out of service as FMCSA determined the carrier failed to
                      take the necessary steps to improve its safety rating.
                  •   The new company was registered 13 days before the out-of-service order against the old company was
                      to take effect.
                  •   The new company had a compliance review in August 2008 and was cited for nine safety violations. The
                      violations included using a driver before receiving a negative controlled substance test. FMCSA identified
                      it as a reincarnated carrier, and ordered it out of service in August 2008 as “unfit”.
                  •   The new company received a “conditional” safety rating in October 2008 but is listed as inactive as of
                      July 2009.
6      Maryland   •   FMCSA data indicate that the “new company” carrier had the same business name, phone number, cell
                      phone number, company officer name, and some of the same vehicles as the “old company” carrier.
                  •   FMCSA revoked the old company’s registration authority in March 2007 due to loss of insurance.
                  •   The new company opened about a month later, in April, 2007.
                  •   The new company received a compliance review in September 2008 after a roadside inspection revealed
                      the company used a vehicle with the old company’s DOT number on a motor coach. The new company
                      was cited for twenty-one safety violations and was given an unsatisfactory rating. Violations include
                      failing to implement a random controlled substances and alcohol testing program and hiring drivers
                      before receiving negative results on such tests.
                  •   The owner attempted to reincarnate again two weeks prior to the September 2008 compliance review.
                      However, FMCSA detected the attempt and refused to grant operating authority.
7      Arkansas   •   FMCSA data indicate that the “new company” carrier had the same business address, phone number,
                      fax number, and company officer name as the “old company” carrier.
                  •   The old company had a compliance review done in May 2007 and was cited for nine safety violations.
                      The violations included conducting unauthorized motor carrier operations in the United States and failing
                      to maintain driver qualification files. A fine of $3,050 was assessed.
                  •   FMCSA ordered the old company out of service on October 2007 for failure to pay the above fine.
                  •   The new company started in late June 2007, about 3 months before the old company was ordered out of
                      service.
                  •   The new company had a compliance review done in November 2008 and was cited for seven safety
                      violations. The violations included conducting interstate operations during a period when its registration
                      was suspended. A fine of $2,000 was assessed.
                  •   The new company was ordered out-of-service by FMCSA in March 2009.




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Case   State        Details
8      Texas        •   FMCSA data indicate that the “new company” carrier had the same two drivers as the “old company”
                        carrier. The addresses were identical except for the omission of “RD” in the street name.
                    •   The old company had a compliance review in May 2008 and was cited for twenty safety violations. The
                        violations included knowingly allowing a driver to operate a commercial motor vehicle before receiving a
                        negative controlled substance test.
                    •   FMCSA ordered the old company out of service as “Unfit” in June 2008.
                    •   The new company was started in June 2008, the same month the old company was declared unfit.
                    •   The new company, while operating without authority, was involved in a fatal crash in August 2008 that
                        killed seventeen people.
                    •   FMCSA placed the new company out of service as an “Imminent Hazard” the day after the accident.
                    •   FMCSA has linked the old company out-of-service orders to the new company.
                    •   The new company is currently inactive as of May 2009.
9      California   •   FMCSA data indicate that the “new company” carrier had the same phone number, fax number, and
                        company officer name as the “old company” carrier.
                    •   The old company had a compliance review done in May 2007 and was cited for eighteen safety
                        violations, including five critical violations. The violations included using a driver who refused to submit a
                        controlled substance test, allowing a driver to operate a commercial motor vehicle before receiving a
                        negative drug test, and conducting interstate operations without operating authority. A fine of $2,200 was
                        assessed for these violations.
                    •   Over the course of 2007, the company corrected previous errors and received a “satisfactory”
                        compliance review in September 2007.
                    •   FMCSA ordered the old company out of service in February 2008 for failing to pay fines.
                    •   In October 2007, the new company was formed.
                    •   The new company was active as of May 2009.
10     Texas        •   FMCSA data indicate that the “new company” carrier had the same business address, two of the same
                        drivers, and two of the same vehicles as the “old company” carrier.
                    •   The old company has a compliance review in September 2006 and was cited for eight safety violations.
                        FMCSA gave the old company a conditional safety rating. The violations included failure to implement a
                        controlled substances testing program.
                    •   The old company received another compliance review in October 2007 and was cited for nineteen safety
                        violations. The violations included using a driver before receiving a negative controlled substance test
                        and failing to maintain inquiries into the driver’s driving record in qualification files. A fine of $2,200 was
                        assessed.
                    •   In December 2007, old company was ordered out of service and ruled unfit because it failed to improve
                        its safety rating.
                    •   The owner of the old company stated that the company went out of business after his bus caught on fire.
                        The owner also stated that his daughter is the one who owns the new company and that he works as her
                        driver. The owner also stated that the new company is currently under a repayment schedule to pay fines
                        owed to DOT.
                    •   The new company was active as of May 2009.
                                        Source: GAO.



                                        The following narratives provide detailed information on three of the more
                                        egregious cases we examined.




                                        Page 10                                                     GAO-09-924 Motor Carrier Safety
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Case 1: The owner of a Houston motor coach company registered a new
carrier with the same phone number, fax number, and cell phone number
as the old one. The new company started in March 2007, 8 months before
FMCSA ordered the old company out of service. The two companies
appear to have operated simultaneously for a period of time. Six days after
the new company was formed, a motor coach carrying 16 passengers
operated by the old company was stopped and inspected on the United
States–Mexico border at Laredo, Texas. The old company was charged
with five violations, including “Operating without required operating
authority.” The old company owes $2,000 in fines. Our investigators
contacted one of the owner’s daughters. She stated that her mother was
arrested for possessing drugs when she crossed the border from Mexico
into the United States, and that her mother subsequently opened another
bus company using another daughter’s name. The daughter said she was
not involved with the bus company. In 2008, the new carrier’s new entrant
registration was revoked and the owner was convicted of cocaine
possession.

Case 2: The owner of a New York motor coach company located at a
church registered a new carrier using the same fax number, driver, and
vehicle as the old one. FMCSA conducted a compliance review for the old
company on May 30, 2007. Five safety violations were identified, including
one “Acute” violation for “Failure to implement an alcohol and/or
controlled substances testing program.” The old company, which was
ordered out of service in October 2007 for failing to pay a fine, still has
$2,000 in outstanding fines as of May 2009. On August 9, 2007,
approximately 2 months prior to FMCSA ordering the old company out of
service, a new carrier was established with the same company officer
name and fax number as the old carrier. The location of the old carrier
was a school, which was associated with (and located next door to) the
church. The owner of the new company claimed that the old company
belonged to his father, not him, and that it was a “completely different
business from his own.” FMCSA records clearly show that this is not the
case. The new owner is listed as “Vice President” of the old company, and
“President” of the new company. The owner of the new company is also
cited as being present during the Compliance Review conducted on May
30, 2007. The new company registered with FMCSA in August 2007 and
FMCSA has not conducted a new-entrant safety audit of the new carrier as
of July 2009, exceeding FMCSA’s internal goal of 9 months.

Case 3: The owner of a Los Angeles motor coach company registered a
new carrier using the same social security number, business name, phone
number, fax number, and company officer as the old one. FMCSA


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                            conducted a compliance review on the old company in December 2006,
                            resulting in an “Unsatisfactory” safety rating. The review cited 11 safety
                            violations, including one “Acute” violation for “Failure to implement an
                            alcohol and/or controlled substances testing program” and four “Critical”
                            violations for failure to maintain driver and vehicle records. Since the old
                            company did not take the necessary steps to fix the violations within 45
                            days, it was ordered out of service in February 2007. A month later a motor
                            coach operated by the old company was inspected in Douglas, Arizona.
                            The company was charged with operating a commercial motor vehicle
                            after the effective date of an “unsatisfactory” rating and fined $5,620.

                            The same owner started the new company in June 2008. FMCSA
                            conducted a compliance review on the new carrier and gave it a
                            “satisfactory” safety rating in October 2008. FMCSA officials stated that
                            they were not aware of any affiliation with the previous company. Our
                            investigators visited the place of business of the new carrier, which was
                            being run out of a retail store. Although the old carrier was out of service,
                            several brochures and business cards for the old carrier were displayed on
                            the store’s counter, showing the same phone number as the new company.
                            We attempted to contact the owner, but the business representative stated
                            that the owner was currently in Mexico as the driver on a bus tour and
                            could not be contacted. A week after our interview, unrelated to our
                            investigation, FMCSA revoked the new company’s authority due to lack of
                            insurance.



Tools FMCSA Uses to
Identify Reincarnated
Carriers and Their
Limitations
Passenger Carrier Vetting   Prior to the August 2008 crash in Sherman, Texas, FMCSA did not have a
Process                     dedicated processe to identify and prevent motor coach carriers from
                            reincarnating. At that time, an out-of-service carrier could easily apply
                            online for a new DOT number and operating authority. In the application,
                            the owner could include the same business name, address, phone
                            number(s), and company officer(s) that already existed under the out-of-
                            service DOT carrier. FMCSA did not have a process to identify these
                            situations, and, thus, FMCSA would have granted the new entrant
                            operating authority upon submission of the appropriate registration data.



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Subsequent to the Sherman crash, FMCSA established the Passenger
Carrier Vetting Process (PCVP), which requires the review of each new
application for the potential of being a reincarnation.11 Under this process,
FMCSA executes a computer matching process to compare information
contained in the motor coach carrier’s application to data of poor-
performing motor coach carriers dating back to 2003. Specifically, it
performs an exact match on the application with fields in nine categories
across various FMCSA databases.12 This produces a list of suspect carriers
and the number of matches in each category, which serve as indicators for
further investigation. FMCSA officials stated that they have begun to
enhance the computer-matching portion of the PCVP process. Specifically,
the system will also be able to match fields that are close, but not
necessarily exact matches of each other. For instance, “John P. Smith Jr.”
would match “John Smith,” and “Maple Ln.” would match “Maple Lane.”
This enhancement should improve its ability to detect those carriers
attempting to disguise their prior registration.

In addition to the computer matching, FMCSA Headquarters personnel
receive and review each new carrier application for completeness and
accuracy. It reviews the application for any red flags or evidence the
company is a potentially unsafe reincarnated motor coach carrier. For
example, the FMCSA staff check secretaries of state databases for the
articles of incorporation to identify undisclosed owners. If the computer-
matching process or FMCSA Division Office review identifies any
suspected motor coach carriers attempting to reincarnate, FMCSA sends a
Verification Inquiry letter to the applicant requesting clarification. If the
carrier does not respond to the Verification Inquiry Letter within 20 days,
the application will be dismissed. If the response to the letter shows the
applicant is attempting to reincarnate, FMCSA issues a Show Cause Order
stating that the application for authority will be denied unless the carrier
can present evidence to the contrary. If the application is not completed,
FMCSA dismisses the application and thus no authority is given.13



11
 According to DOT officials, FMCSA began to use PCVP for screening applications of
household goods carriers in April 2009.
12
  The nine categories are authorities actions, compliance reviews, enforcement actions,
accidents and violations, names, phone numbers, addresses, e-mails, and insurance
information.
13
 According to DOT officials, since the PCVP has been implemented, about 900 passenger
carrier applications have been received. They also stated that over 100 applications have
been dismissed or withdrawn and 1 was issued a show cause order.



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                           After the carrier is approved to operate, FMCSA requires all new carriers,
                           including motor coach carriers, to undergo a safety audit within 18 months
                           of approval. During this review, FMCSA should identify whether the new
                           motor coach company is a reincarnation of a prior carrier. Although we
                           did not specifically evaluate the effectiveness of the new-entrant audit
                           process, we found two cases where FMCSA did not identify new motor
                           coach carriers as reincarnations of companies it had ordered out of
                           service and after the PCVP went into effect. Because we did not evaluate
                           the effectiveness of the new-entry safety audit and the PCVP, we do not
                           know the extent to which reincarnated carriers are still able to avoid
                           FMCSA detection when registering to operate with the agency.


Performance and            GAO recently reported14 that PRISM provides up-to-date information on
Registration Information   the safety status of the carrier responsible for the safety of a commercial
Systems Management         vehicle prior to issuing or renewing vehicle registrations. PRISM generates
                           a daily list of vehicles registered in the state that are associated with
(PRISM)                    carriers that have just been ordered out of service by FMCSA. It is a tool
                           that can be used by state personnel. PRISM’s innovation is that it is
                           designed to associate vehicle identification numbers with out-of-service
                           carriers to prevent the carrier from registering or reregistering its vehicles.

                           Although PRISM is a potential deterrent to a carrier wishing to
                           reincarnate, only 25 states have implemented the system to the extent that
                           they can automatically identify out-of-service carriers and then deny,
                           suspend, or revoke their vehicle registrations.15 Another limitation to
                           PRISM’s effectiveness is that it only includes vehicles that register under a
                           protocol known as the International Registration Plan (IRP)16—which


                           14
                                GAO-09-495.
                           15
                             According to FMCSA officials, in addition to the 25 states, 4 other states suspend and
                           revoke vehicle registrations for out-of-service carriers using PRISM; however, they do so
                           on a case-by-case basis when requested by FMCSA and do not have the capability to check
                           the safety status at the time vehicle registration renewals are requested in order to deny
                           them. These 4 states also do not report any suspension or revocation information to
                           FMCSA. Additionally, there are 2 other states that deny, suspend, and revoke vehicle
                           registrations of out-of-service carriers, but these states do so when requested by FMCSA,
                           not through the regular structure of the PRISM program. As such, we did not include these
                           6 states in our count.
                           16
                              IRP is used to register commercial motor vehicles with a gross vehicle weight of over
                           26,000 pounds that travel between two or more states or Canadian provinces. The protocol
                           is followed to ensure an equitable distribution of registration fees, which is based on
                           vehicle miles traveled in each state or Canadian province. All states (except Alaska and
                           Hawaii) are members of IRP.



                           Page 14                                                  GAO-09-924 Motor Carrier Safety
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                           pertains only to carriers involved in interstate commerce. Charter buses
                           are exempt from IRP (interstate) registration and thus not subject to
                           PRISM.17 Furthermore, vehicles are not checked at registration since
                           companies are not required to supply this information on their application
                           to FMCSA.


Legal Impediments to the   FMCSA’s duty and authority to deny operating authority registration to
Denial or Revocation of    persons not meeting statutory requirements is provided by statute.18 A
Reincarnated Carriers’     person applying for registration must demonstrate that he or she is willing
                           and able to comply with the safety regulations, other applicable
Operating Authority        regulations of the Secretary, and the safety fitness requirements.19
                           Complexities regarding the application of State laws on corporate
                           successorship may, in certain instances, affect the agency’s ability to deny
                           operating authority to or pursue enforcement against unsafe reincarnated
                           motor carriers under these statutory provisions. The complexities include
                           the legal standard that must be met to hold a newly formed corporation
                           liable for civil penalties assessed against its corporate predecessor.

                           The facts necessary to satisfy the legal standard—whether under federal
                           or State law—require documentation outside the normal compliance
                           review processes. FMCSA uses a detailed Field Worksheet which lists
                           types of evidence that would be needed, including company contact
                           information, documentation on management and administrative
                           personnel, business assets, tax records, insurance, payroll, drivers,
                           vehicles, customer lists, advertising and promotional materials, corporate
                           charters, and information on the corporate acquisition or merger at issue.
                           This labor intensive investigative process is not undertaken unless strong
                           preliminary evidence indicates that the new company is a reincarnation of
                           a former motor carrier against which enforcement was taken and that the
                           reincarnation was for the purpose of evading enforcement action or
                           violation history of the predecessor company.




                           17
                            Charter buses provide service to groups traveling together to a specified location or for a
                           particular itinerary.
                           18
                                See 49 U.S.C. § 13902.
                           19
                            The safety fitness requirements are provided in 49 U.SC. 31144. Additional authority to
                           suspend, amend or revoke registration is provided in a separate statutory provision. See 49
                           U.S.C. 13905.




                           Page 15                                                   GAO-09-924 Motor Carrier Safety
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                    In order to make it easier for FMCSA to place a reincarnated carrier out of
                    service, the Highways and Transit Subcommittee of the Committee on
                    Transportation and Infrastructure of the House of Representatives
                    approved legislation on June 24, 2009, that would impose a uniform federal
                    standard and would authorize FMCSA to deny or revoke operating
                    authority from a carrier who failed to disclose a relationship with a prior
                    carrier. The legislation would also authorize FMCSA, in certain cases, to
                    impose civil penalties against a reincarnated motor carrier that were
                    originally imposed against a related motor carrier.


                    We briefed U.S. Department of Transportation (DOT) officials on the
Corrective Action   results of our investigation. They agreed that reincarnation of motor coach
Briefing            carriers is an important concern but stated that there are legitimate
                    reasons for motor coach carriers to transfer ownership or reincorporate,
                    or both, such as divorce, death, relocation, or new business opportunities.
                    DOT officials stated that they established the PCVP to identify and attempt
                    to prevent reincarnated carriers from receiving approval for operating
                    authority. DOT officials stated that the PCVP is also used for household
                    goods carriers and that they hope to use the process for other types of
                    carriers if they obtain the resources to support this process. However,
                    DOT officials stated that even if DOT has identified a carrier as a
                    reincarnation, DOT must still prove that the new carrier is the corporate
                    successor to the old carrier in order to deny or revoke the operating
                    authority of the new carrier. DOT officials stated that this standard differs
                    between states and that certain states require a very high standard of
                    proof. As such, this determination is labor-intensive and requires
                    documentation outside the normal compliance review process. DOT
                    officials also provided technical comments to the report, which we
                    addressed, as appropriate.


                    As agreed with your office, unless you announce the contents of this
                    report earlier, we will not distribute it until 3 days after its issue date. At
                    that time, we will send copies of this report to the Secretary of
                    Transportation and other interested parties. In addition, the report will be
                    available at no charge on GAO’s Web site at http://www.gao.gov.

                    If you or your staff have any questions regarding this report, please
                    contact me at (202) 512-6722 or kutzg@gao.gov. Contact points for our
                    Offices of Congressional Relations and Public Affairs may be found on the




                    Page 16                                           GAO-09-924 Motor Carrier Safety
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last page of this report. GAO staff who made key contributions to this
report are listed in appendix IV.




Gregory D. Kutz
Managing Director
Forensic Audits and Special Investigations




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Appendix I: Scope and Methodology


             To identify new entrants that were substantially related to motor carriers
             ordered out of service, we obtained and analyzed information from the
             following DOT databases: the Motor Carrier Management Information
             System (MCMIS), the Licensing & Insurance (L&I) system, and the
             Enforcement Management Information System (EMIS) as of December
             2008. We identified new motor coach1 operators as those that had a New
             Entrant Program entry date of October 1, 2006, or later. We identified out-
             of-service motor carriers as those with an active, nonrescinded out-of-
             service order in place and who had been ordered off the road for reasons
             other than failure to make contact with DOT while in the New Entrant
             Program. We matched the new entrant carriers with those that were
             ordered out of service on the following key fields: company name,
             owner/officer name, address, phone number, cell phone number, fax
             number, vehicle identification number, and driver names. For the motor
             coach carriers identified, we interviewed, if possible, the owners to
             validate whether the company had reincarnated and, if possible, determine
             the reason for the reincarnation.

             Our analysis understates the actual number of reincarnated carriers
             because the matching scheme used cannot detect even minor changes in
             spelling, addresses, or owner names. In addition, the number is
             understated because FMCSA only provided us data on vehicles and drivers
             when an accident or inspection took place, and thus the provided FMCSA
             data does not include the entire population of vehicles or drivers for either
             new entrants or out-of-service carriers. Our analysis also could not identify
             all reincarnated carriers where the owners purposely provided FMCSA
             bogus or deceptive information on the application (e.g., ownership) to
             hide the reincarnation from FMCSA.

             To determine the tools FMCSA uses to identify reincarnated carriers, we
             interviewed FMSCA officials on the process that the agency uses to
             attempt to identify potentially reincarnating carriers. We also obtained and
             examined policies and other FMCSA documentation to obtain an
             understanding of the design of its motor carrier enrollment process. We
             did not perform any tests of the controls and therefore cannot make
             conclusions on its effectiveness.


             1
               We used the definition of a motor coach carrier provided to us by FMCSA. Motor coach
             carriers are those carriers in the Licensing & Insurance (L&I) database that have “active”
             passenger authority and $5 million in insurance, or have an “active” Motor Carrier
             Management Information System (MCMIS) status and are listed as Private Motor Carriers
             of Passengers.




             Page 18                                                   GAO-09-924 Motor Carrier Safety
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                   Appendix I: Scope and Methodology




                   To determine the reliability of DOT’s databases, we reviewed the system
Data Reliability   documentation and performed testing on the validity of the data. We
                   performed electronic testing of the data including verifying the
                   completeness of the carrier data against numbers published by DOT. We
                   discussed the sources of the different data types with DOT officials and
                   discussed their ongoing quality-control initiatives. Based on our review of
                   agency documents and our own testing, we concluded that the data
                   elements used for this report were sufficiently reliable for our purposes.

                   We conducted the work for this investigation from November 2008
                   through July 2009 in accordance with quality standards for investigations
                   as set forth by the Council of the Inspectors General on Integrity and
                   Efficiency.




                   Page 19                                         GAO-09-924 Motor Carrier Safety
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Appendix II: Reincarnated Motor Coach
Carriers

                                         In the body of the report, we provide detailed information on 10
                                         reincarnated carriers. Table 2 below provides detailed information on the
                                         other 10 motor coach carriers that we investigated and determined were
                                         potential reincarnations. The cases were primarily identified by two or
                                         more exact matches of FMCSA data for new entrants and for out-of-
                                         service carriers in the following categories: company name, owner/officer
                                         name, address, phone number, cell phone number, fax number, vehicle
                                         identification number, and driver names.

Table 2: Summary Information on Potentially Reincarnated Motor Coach Carriers

Case    State             Details
11      California        •   FMCSA data indicate that the “new company” carrier had the same corporate name and address as
                              the “old company” carrier. The president of the new company had the same name as the owner of
                              the old company, except for the omission of a first and last name.
                          •   The old company received was inspected in April 2006 and was cited for operating a commercial
                              motor vehicle without a driver’s license.
                          •   FMCSA ordered the old company to cease interstate operations in August 2006 for failure to pay a
                              fine.
                          •   The old company was removed from the New Entrant program in May 2007 for failure to appear for
                              a scheduled safety audit.
                          •   The new company started in August 2008.
                          •   The new company had a compliance review in May 2009 and was cited for nineteen safety
                              violations. The violations included using a driver before receiving a negative controlled substance
                              test, failing to implement a random controlled substance and alcohol testing program, and
                              conducting operations without operating authority. A fine of $1,980 was assessed.
                          •   As of July 2009, the new company does not have operating authority.
12      Texas             •   FMCSA data indicate that the “new company” carrier had the same company name, three of the
                              same drivers, and one of the same vehicles as the “old company” carrier. In addition, the addresses
                              of the companies indicated that they were next door to each other.
                          •   FMCSA conducted a compliance review of the old company in September 2006 and cited four
                              safety violations, including one acute violation. The violations included failing to implement a random
                              controlled substance and alcohol testing program. A fine of $2,000 was assessed.
                          •   In February 2007, FMCSA ordered the old company to cease operations for failure to pay the above
                              fine.
                          •   The new company began in January 2008, but it is currently inactive.




                                         Page 20                                                   GAO-09-924 Motor Carrier Safety
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                                 Appendix II: Reincarnated Motor Coach
                                 Carriers




Case   State      Details
13     Texas      •   FMCSA data indicate that the “new company” carrier had the two of the same drivers and three of
                      the same vehicles as the “old company” carrier. The addresses were identical except for “East”
                      being changed to “E” in the street name. The company officer names for both the old and the new
                      company shared the same last name.
                  •   Inspectors examined a bus operated by the old company in October 2006 as it prepared to ferry
                      passengers from Mexico to the US and determined its condition was likely to cause an accident or a
                      breakdown of the vehicle. The company was subsequently fined $850.
                  •   FMCSA revoked the old company’s operating authority in January 2007.
                  •   Two months later, in March 2007, the old company was discovered illegally ferrying 33 passengers
                      from Mexico into the US. FMCSA subsequently fined the firm $2,380. The same month inspectors
                      caught the old company, the new one was opened.
                  •   FMCSA ordered the old company to cease all operations in September 2007 for failure to pay the
                      above fines.
                  •   The new company had a compliance review done in September 2008 and was cited for seven
                      violations of carrier safety rules, including failure to implement a random controlled substance and
                      alcohol testing program. A fine of $2,000 was assessed.
                  •   The new company was ordered out-of-service in June 2009 for failing to pay the above fine.
14     Arizona    •   FMCSA data indicate that the “new company” carrier had the same mailing address and telephone
                      number as the “old company” carrier. The company officer names are identical, except for the
                      omission of the middle initial. The company names are almost the same. Following the name,
                      “Tours” was replaced with “and associates.”
                  •   The old company had a compliance review in October 2006 and was cited for ten safety violations.
                      The violations included failing to maintain proper proof of financial responsibility and operating a for-
                      hire carrier service without proper operating authorities. A fine of $3,260 was assessed.
                  •   The old company had another compliance review in January 2007 and was cited for five safety
                      violations. The violations including failing to maintain driver qualification files for each driver
                      employed. A fine of $2,000 was assessed.
                  •   The old company was placed out-of-service for failure to pay fines in April 2007.
                  •   In June 2007, an enforcement action was taken against the old company for conducting interstate
                      operations while being subject to an out-of-service order. A fine of $5,520 was assessed.
                  •   The new company started in September 2007.
                  •   The new company was put out of service in March 2008 after being rejected from the New Entrant
                      Program due to no contact.
                  •   The new company is currently inactive as of May 2009.
15     New York   •   FMCSA data indicate that the “new company” carrier had the same address and company officer
                      name as the “old company” carrier.
                  •   FMCSA placed the old company out of service after being revoked from the New Entrant Program
                      due to a no-show safety audit.
                  •   The new company left the New Entrant Program due to inactivation.
                  •   The new company is currently inactive.




                                 Page 21                                                     GAO-09-924 Motor Carrier Safety
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                                    Appendix II: Reincarnated Motor Coach
                                    Carriers




Case   State        Details
16     Washington   •   FMCSA data indicate that the “new company” carrier had the same phone number as the “old
                        company” carrier. The addresses were identical except “N First ST” was changed to “North 1ST” in
                        the street name.
                    •   The old company had a compliance review conducted in November 2004 that resulted in an
                        “Unsatisfactory” rating. Sixteen safety violations were identified, including five critical violations for
                        improper controlled substance testing procedures and using a driver before receiving a negative
                        controlled substances test.
                    •   A fine of $1,990 was assessed as a result of these violations. In April 2005, the carrier was placed
                        out of service for failure to pay the fine.
                    •   When the carrier was ordered out of service, FMCSA staff requested that the carrier’s file be flagged
                        “to prevent possible reinstatement until full payment of their civil penalty is received.”
                    •   The new company started the New Entrant program in December 2006 and operated for five months
                        until leaving the program because they had become inactive.
17     Georgia      •   FMCSA data indicate that the “new company” carrier had the same phone number as the “old
                        company” carrier. One of the company officer names is identical, except for the addition of the suffix
                        “JR”. The addresses were identical except “RD” was changed to “ROAD” in the street name.
                    •   The old company had a compliance review done in November 2006 and was cited for eight safety
                        violations. The violations included failing to implement a random controlled substances and alcohol
                        testing program. A fine of $2,000 was assessed.
                    •   The old company was subject to an out of service order in July 2007 for failure to pay the above fine.
                    •   The new company started the same month the old one was put out of service, but it was removed
                        from the New Entrant Program in November 2007 due to no contact.
                    •   The new company is currently inactive.
18     California   •   FMCSA data indicate that the “new company” carrier had the same phone number and fax number
                        as the “old company” carrier.
                    •   The owner of the old company told our investigators that she sold the company to one of her drivers.
                        This driver is now listed as the owner of the new company.
                    •   In addition, the owner of the old company now works as an assistant to the owner of the new
                        company, her former driver.
                    •   The old company received a compliance review in December 2006 and was cited for thirteen safety
                        violations. The violations include one acute violation for failing to implement a random controlled
                        substance and alcohol testing program. A fine of $2,000 was assessed.
                    •   The old company was placed out of service by FMCSA in May 2007 for failure to pay the above fine.
                    •   The new company started in July 2008 and received a “satisfactory” compliance review in October
                        2008.
                    •   The new company was active as of June 2009.
19     California   •   FMCSA data indicate that the “new company” carrier had five of the same drivers and six of the
                        same vehicles as the “old company” carrier.
                    •   From June 2000 to June 2008, FMCSA cited the old company for seventy-eight safety violations. It
                        was fined $1,220 for allowing a driver to operate a commercial vehicle without a valid federal license
                        or permit.
                    •   The old company was ordered out of service in January 2008.
                    •   The owner of the new company did not respond to repeated phone calls by our investigators.
                    •   The new company had a “Conditional” safety rating in June 2008.
                    •   The new company is currently inactive.




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                                                                                                         EXHIBIT C
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                                      Appendix II: Reincarnated Motor Coach
                                      Carriers




Case   State            Details
20     North Carolina   •   FMCSA data indicate that the “new company” carrier had the same phone number as the “old
                            company” carrier. The addresses also were identical except that “LANE” was changed to “LN” in the
                            street name.
                        •   The old company was reincarnated from a carrier that was ordered out of service in 2003.
                        •   The old company underwent a compliance review in August 2006 and received an unsatisfactory
                            safety rating.
                        •   The old company received two fines totaling $19,500. The fines were not paid.
                        •   The new company had a “Conditional” safety rating in December 2007 and was placed out-of-
                            service in April 2008.
                                      Source: GAO.




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                                                                                                       EXHIBIT C
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Appendix III: Summary of Reincarnated
Motor Coach Carriers

                                          As stated earlier, we identified 20 new entrants that were substantially
                                          related to motor carriers ordered out of service. We identified these new
                                          entrant carriers by matching them with those that were ordered out of
                                          service on the following key fields: company name, owner/officer name,
                                          address, phone number, cell phone number, fax number, vehicle
                                          identification number, and driver names. Table 3 below provides the fields
                                          that were matched between the new entrant and the carrier that was
                                          ordered out of service.

Table 3: Match Results on Key Identifying Fields for Potentially Reincarnated Carriers

Case     SSN / EIN     Company name       Officer names         Address        Phones           Fax   Cell       Drivers     Vehicles
1                                                                              X                X     X          X
2                                         X                                                     X                X           X
3        X             X                  X                                    X
4                      X                  X                     X              X                                 X           X
5                                         X                     X              X                X                X           X
6                      X                  X                                    X                      X          X           X
7                                         X                     X              X                X
8                                                               X                                                X
9                                         X                     X              X                X                            X
10                                                              X                                                X           X
11                     X                  X                     X
12                     X                  X                     X                                                X           X
13                                                              X                                                X           X
14                     X                  X                     X              X
15                                        X                     X
16                                                              X              X
17                                        X                     X              X
18                                                                             X                X
19                                                                                                               X           X
20                                                              X              X
                                          Source: GAO.

                                          Note: “X” indicates the data elements that matched.




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Appendix IV: GAO Contact and Staff
Acknowledgments

                  Gregory D. Kutz, (202) 512-6722 or kutzg@gao.gov
GAO Contact
                  GAO staff who made major contributions to this report include Matthew
Staff             Valenta, Assistant Director; John Ahern; Donald Brown; John Cooney;
Acknowledgments   Paul Desaulniers; Eric Eskew; Timothy Hurley; Steve Martin; Vicki
                  McClure; Sandra Moore; Andrew O’Connell; Anthony Paras; Philip Reiff;
                  and Ramon Rodriguez.




(192306)
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EXHIBIT D
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 Home > News & Events > Speeches

                                   Testimony of the Honorable Deborah A.P. Hersman
                                   Chairman
                                   National Transportation Safety Board
                                   Before the
                                   U.S. Senate
                                   Committee on Commerce, Science, and Transportation
                                   Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety, and Security
                                   Hearing on
                                   Oversight of Motor Carrier Safety Efforts
                                   Washington, DC
                                   April 28, 2010


 Good morning, Chairman Lautenberg and Members of the Subcommittee. Thank you for the opportunity to appear before you today on behalf of the National Transportation
 Safety Board (NTSB) regarding oversight of motor carrier safety. I am privileged to represent the men and women of the NTSB, who work tirelessly to improve the safety of the
 traveling public. As you know, the NTSB is charged with investigating major transportation accidents, including highway accidents, determining their probable cause, and making
 recommendations to prevent similar accidents from happening again. We frequently recommend changes in highway or vehicle design, driver training, occupant protection, and
 regulatory oversight.


 Every day, there are thousands of accidents on our nation’s highways, resulting in tens of thousands of fatalities each year. Historically, accidents involving large trucks comprise
 approximately 10 percent of the fatalities on our highways.


 Today, I will highlight some specific issues of concern regarding the safety of trucks and buses.


 MOTOR CARRIER SAFETY OVERSIGHT

 No carrier wants to have an accident, but strong economic forces sometimes create an environment in which safety is not always every carrier’s priority. That is why we need
 comprehensive and consistent oversight of the motor carrier industry.


 The two most important factors related to safe motor carrier operations are the condition of the vehicles and the performance of the drivers. Current rules prevent the Federal
 Motor Carrier Safety Administration (FMCSA) from putting carriers out of service with an unsatisfactory rating in only one of the 6 rated factors. They must be unsatisfactory in 2
 factors. In other words, they could be unsatisfactory in either the vehicle or driver areas and still be allowed to operate. The NTSB believes that an unsatisfactory in either
 category should be sufficient cause to place a carrier out of service. We have been asking the FMCSA to fix this deficiency since 1999.


 The NTSB raised this deficiency as the result of our investigation of an accident involving a motorcoach that had only 50-percent braking efficiency. The motorcoach rolled over in
 Indianapolis, Indiana, killing 2 passengers and injuring 13. A postaccident compliance review of the motor carrier by the FMCSA resulted in 10 out of 10 vehicles being placed out
 of service. Clearly, the motor carrier had some issues with its vehicle maintenance prior to the accident. It had been inspected nine times between 1987 and 1995. In 1994, even
 though 63 percent of the vehicles met the out-of-service criteria, the carrier received a “conditional” rating for the vehicle factors and, because all the other factors were rated
 “satisfactory,” it was given an overall rating of “satisfactory.” Thus, with the blessing of the FMCSA, the carrier was able to continue to operate with unsafe vehicles.


 The NTSB recommended that the FMCSA do something relatively simple: change the safety fitness rating methodology so that adverse vehicle- or driver performance-based data
 alone would be sufficient to result in an overall “unsatisfactory” rating for a carrier (1) To date, the FMCSA has not acted on this recommendation. As a result, the NTSB added
 this recommendation to our Most Wanted List of Transportation Safety Improvements in 2000.


 Two years after the Indianapolis accident, a truck with poorly maintained brakes collided with a school bus near Mountainburg, Arkansas, killing three students. Our investigation
 found that, prior to the accident, the FMCSA considered the motor carrier “satisfactory” but postaccident, it was rated “conditional” overall. The motor carrier profile report showed
 it had had 29 roadside inspections in the previous 12 months, which resulted in 4 out-of-service vehicles (14 percent), all with out-of-adjustment brakes. In the NTSB’s view,
 14 percent of a fleet with bad brakes should not be considered “satisfactory.” As a result, the NTSB reiterated our 1999 recommendation.
 The Board revisited this recommendation to the FMCSA in a number of subsequent accidents:


 •   In 2002, a five-fatality motorcoach rollover accident occurred near Victor, New York, involving a carrier that had received a favorable compliance review rating despite a long
 and consistent history of driver- and vehicle-related violations.

 •   In 2004, a fatigued tractor-trailer driver ran into a stopped queue of traffic in a construction zone near Chelsea, Michigan. A postaccident compliance review by the FMCSA
 revealed a 20-percent falsification rate of drivers’ logs, yet the FMCSA allowed the motor carrier to continue to operate with a “conditional” rating.

 •   In 2005, 23 elderly passengers died in a motorcoach fire near Dallas, Texas, caused by the motor carrier’s poor maintenance of the vehicle’s wheel bearings. The Texas
 Department of Public Safety (DPS) and the FMCSA both identified numerous driver and vehicle safety violations prior to the accident, but they did not shut the carrier down. The
 FMCSA gave the carrier a “satisfactory” rating. At the time, the Texas DPS had no authority to force the motor carrier to cease operations. (They do now.) As a result, the NTSB
 not only reiterated the 1999 recommendation, our report cited the FMCSA’s ineffective compliance review system as contributing to the probable cause of the accident.

 •   In 2007, seven passengers died in a motorcoach accident involving Bluffton University students in Atlanta, Georgia. A postaccident compliance review by the FMCSA rated the
 carrier “satisfactory.” However, the NTSB’s investigation found that the driver failed to properly record hours-of-service information for the trip and that the motor carrier had
 numerous earlier driver-related violations.




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 Just last year, the NTSB completed its investigation of a 2008 motorcoach rollover accident near Victoria, Texas. Again, we found that the FMCSA safety rating methodology did
 not provide adequate oversight of the motor carrier and its leasing partners. The NTSB reclassified the 1999 recommendation as “unacceptable” because we believe the FMCSA
 has not made the necessary changes to take problem carriers off the road.


 CSA 2010

 To address its oversight shortfalls, the FMCSA has initiated a complex set of programs called the “Comprehensive Safety Analysis 2010,” or “CSA 2010.” CSA 2010 is based on
 the development of new performance-based systems for determining motor carrier and driver safety. These changes are long overdue. However, we are concerned whether the
 final implementation of CSA 2010 will make the changes necessary to take problem motor carriers off the road.


 The FMCSA should have made incremental changes to its compliance review process while developing more sweeping changes to its oversight program through CSA 2010 or
 some other means. In fact, we issued a recommendation to that effect in 2007.(2) The FMCSA’s current efforts represent a comprehensive review of the process of determining
 the safety of commercial motor carriers, and the agency should be commended for that effort. However, CSA 2010 is an ambitious program with milestones that will be difficult to
 meet. In fact, just this month, the FMCSA announced that the start of CSA 2010 will be delayed, with some portions postponed until 2011. In the meantime, motor carriers
 continue to operate with poor management of their drivers and vehicles, which will lead to more accidents.


 HOURS OF SERVICE

 The NTSB’s interest in the fatigue of commercial drivers goes back more than 30 years. In the 1990s, the NTSB conducted two safety studies(3) that found that fatigue was the
 most frequently cited probable cause or factor in crashes with driver fatalities. The studies also found that the most important factors influencing fatigue-related crashes were the
 amount of sleep a driver received and whether the driver was engaging in “split-sleeps” (that is, multiple short sleep episodes rather than one continuous 8-hour period).


 Based on these studies, the NTSB recommended that the FMCSA use science-based principles to revise the hours-of-service rule, ensure that the rule would enable drivers to
 obtain at least 8 hours of continuous sleep, and eliminate sleeper berth provisions that allow for the splitting of sleep periods. In September 2005, the FMCSA issued a final rule
 with a provision that drivers using a sleeper berth must take at least 8 consecutive hours in the sleeper berth, plus 2 consecutive hours either in the sleeper berth, off duty, or in
 any combination thereof.

 Recent Investigations of Accidents Involving Fatigue
 1997        Slinger, WI                        (8-fatality passenger van/tractor-trailer collision; fatigued
                                                truck driver)


 2000        Jackson, TN                        (1-fatality tractor-trailer collision with parked state police
                                                vehicle; fatigued truck driver)


 2004        Sulphur Springs, TX                (5-fatality multivehicle collisions during road closure; fatigued
                                                truck driver)


 2004        Chelsea, MI                        (1-fatality tractor-trailer collision in work zone; fatigued truck
                                                driver)


 2004        Turrell, AR                        (15-fatality motorcoach rollover accident; fatigued
                                                motorcoach driver)


 2005        Lake Butler, FL                    (7-fatality tractor-trailer/sedan/school bus collision; fatigued
                                                driver)


 2005        Osseo, WI                          (5-fatality motorcoach collision with overturned tractor–trailer;
                                                fatigued truck driver)


 2008        Victoria, TX                       (1-fatality motorcoach rollover accident; fatigued motorcoach
                                                driver)


 2008        Mexican Hat, UT                    (9-fatality motorcoach rollover accident; fatigued motorcoach
                                                driver)

 In September 2008, following completion of investigations into fatigue-related accidents that occurred in Osseo, Wisconsin; Lake Butler, Florida; and Turrell, Arkansas; the NTSB
 asked the FMCSA to develop a plan to deploy technologies in commercial vehicles to reduce fatigue-related accidents,(4) and to develop a methodology to assess the
 effectiveness of the fatigue management plans implemented by motor carriers.(5) The 2008 motorcoach accident in Victoria, Texas, again demonstrated the serious nature of
 fatigue-related accidents and the need for both in-vehicle technologies and effective fatigue management programs. Upon completion of its investigation of this accident, the
 NTSB urged the FMCSA to continue to work on these recommendations.


 Citing many of the accidents mentioned above and several others from other modes of transportation in which drivers, pilots, and train engineers had undiagnosed obstructive
 sleep apnea, in October 2009, the Board issued recommendations on obstructive sleep apnea to the FMCSA. In particular, we recommended that the FMCSA: (1) require drivers
 with a high risk for obstructive sleep apnea to obtain medical certification that they have been appropriately evaluated and, if necessary, effectively treated for that disorder,(6) and
 (2) provide guidance for commercial drivers, employers, and physicians about identifying and treating individuals at high risk of obstructive sleep apnea.(7)




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 ELECTRONIC ON-BOARD RECORDERS FOR HOURS OF SERVICE

 No hours-of-service rule is adequate unless it is enforceable. In our investigations, the NTSB has repeatedly found that some drivers falsify their paper logbooks or keep two sets
 of books, and some motor carriers do not closely monitor their drivers’ compliance with the rules. To address these problems, since 1977, the NTSB has advocated the use of
 electronic on-board recorders (EOBRs) to allow better monitoring of hours of service and driver fatigue.


 In 2007, the NTSB asked the FMCSA to require EOBRs for hours-of-service monitoring for all interstate commercial carriers following our investigation of an accident in Chelsea,
 Michigan. Also in that year, the FMCSA issued a proposed rulemaking for on-board recorders. However, the rule mostly promotes voluntary installation of EOBRs, and it only
 requires installation for carriers with serious patterns of hours-of-service violations. The NTSB is concerned that the FMCSA and law enforcement authorities will have a difficult
 time identifying such pattern violators without this technology. We are convinced that the only way on-board recorders can help stem hours-of-service violations is if they are
 mandated for use by all operators. Therefore, in 2008, the NTSB added EOBRs to its Most Wanted List.


 EOBRs have the potential to efficiently and accurately collect and verify the hours of service of all commercial drivers. A universal and mandatory requirement for EOBRs will
 create a level playing field for compliance with hours-of-service rules that will ultimately make our highways safer for all drivers.


 NEW ENTRANT MOTOR CARRIERS

 In 2002, the Board investigated an accident involving a tractor-semitrailer collision with a Greyhound bus in Loraine, Texas, which resulted in three deaths. At the time, the
 FMCSA had essentially no review or follow-up of new entrant motor carriers. To become a motor carrier, the owner of a trucking company merely had to fill out an online form and
 pay a small fee to receive operating authority from the FMCSA. In this case, our investigation revealed that when the trucking company owner submitted his application, he lied
 about his knowledge of the regulations, about having systems in place to comply with the regulations, and about a drug conviction for possession of large amounts of marijuana
 the year prior to his application. He also did not maintain any records on his drivers or vehicles, did not have a drug and alcohol program, and did not conduct background checks
 of his drivers. Further, he knowingly dispatched the accident driver, who did not have a commercial driver’s license or medical certificate.


 The NTSB recommended that the FMCSA require new motor carriers to demonstrate their safety fitness prior to obtaining new entrant operating authority.(8) In response to this
 recommendation, the FMCSA developed the New Applicant Screening Program under which a new motor carrier operating in interstate commerce is subject to an 18-month
 safety monitoring period and receives a safety audit sometime after its first 3 months of operation but before it completes 18 months of operation.


 In 2008, the FMCSA began its New Entrant Safety Assurance Program, under which the agency identified 16 regulations that are essential elements of basic safety management
 controls necessary to operate in interstate commerce and made a carrier’s failure to comply with any of the 16 regulations an automatic failure of the safety audit. Additionally, if
 certain violations are discovered during a roadside inspection, the new entrant is subject to expedited actions to correct these deficiencies.


 Unfortunately, unscrupulous motor carriers use the new entrant program to evade an enforcement action or an out-of-service order by going out of business and then
 reincarnating themselves, as if they are a brand new motor carrier. The NTSB found that this had occurred with a motor carrier involved in an accident in 2008, when a
 motorcoach ran off a bridge and rolled over in Sherman, Texas, killing 17 passengers. After losing its authority to operate because of an unsatisfactory compliance review rating,
 the motor carrier applied for operating authority under a new name as a new entrant. The NTSB concluded that the FMCSA processes were inadequate to identify the carrier as a
 company that was simply evading enforcement action. The NTSB issued a recommendation to the FMCSA to evaluate the effectiveness of its New Applicant Screening Program.
 (9)


 The NTSB found additional deficiencies with the FMCSA’s new entrant program during its investigation of a 2008 accident in which the driver fell asleep and the motorcoach
 overturned in Victoria, Texas, killing one person. The FMCSA failed to notice that the accident carrier reincarnated into a new carrier shortly after the accident. As a result, the
 NTSB issued three recommendations to the FMCSA that ask the agency to develop methods to identify reincarnated carriers and seek authority to deny or revoke their operating
 authority (10)


 MEDICALLY UNQUALIF ED COMMERCIAL DRIVERS

 The NTSB has investigated many accidents involving commercial drivers with serious preexisting medical conditions that had not been adequately evaluated. A driver’s medical
 conditions are not always causal to an accident, but finding these undocumented and unevaluated conditions in commercial drivers is of significant concern to the NTSB. The
 most tragic example of this issue was the 1999 Mother’s Day motorcoach accident in New Orleans, Louisiana, in which a motorcoach driver lost consciousness while driving on
 an interstate highway, left the roadway, and crashed into an embankment, killing 22 passengers and injuring 21. The driver had multiple known serious medical conditions,
 including kidney failure and congestive heart failure, and was receiving intravenous therapy for 3-4 hours a day, 6 days a week.


 The Board recommended that the FMCSA develop a comprehensive medical oversight program to address the need to:


 •     Ensure that examiners are qualified and know what to look for;

 •     Track all medical certificate applications;

 •     Enhance oversight and enforcement of invalid certificates; and

 •     Provide mechanisms for reporting medical conditions.(11)


 The NTSB specified the development of a comprehensive and systematic oversight program, because a piecemeal approach to the problem may result in deficiencies that will
 continue to permit unqualified drivers to operate on the nation’s highways. Because of its critical importance and the lack of substantive progress by the FMCSA on the
 recommendations, this issue was placed on our Most Wanted List in 2003.


 In response, the FMCSA took two important steps. In November 2008, the FMCSA proposed a rule that would require all medical examiners who conduct medical examinations
 of interstate commercial motor vehicle drivers to complete training on physical qualification standards, pass a test to verify an understanding of those standards, and maintain
 competence by periodic training and testing. If adopted, the rule will help ensure that the medical examiners are properly qualified to evaluate the fitness of commercial drivers. In
 addition, the FMCSA has hired its first medical officer, a physician with occupational medical experience, to provide the necessary expertise to guide its efforts in establishing a
 comprehensive medical oversight system.


 In December 2008, the FMCSA issued a final rule requiring interstate commercial drivers to provide a current original or copy of their medical examiner’s certificate to their state
 drivers’ licensing agency. This rule is an important improvement because law enforcement officials at the roadside will be able to determine whether a driver possesses a current




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 medical certificate and will be able to take appropriate action if the driver does not. The NTSB thus was able to close two of its eight recommendations on this issue in
 “acceptable” status (12)


 We are encouraged by the FMCSA’s hiring of a medical officer, because it indicates that the FMCSA appreciates the importance of this issue to improving highway safety. I have
 personally met with the FMCSA Medical Officer, who has an excellent background to deal with these issues, and I think this step represents substantial progress.


 Although the FMCSA continues to work to address medical issues, much remains to be done. For example, the national registry of certified medical examiners should include a
 tracking mechanism for driver medical examinations. This step would reduce the current practice of drivers “doctor shopping” to find one who will sign their medical forms.
 Likewise, the FMCSA’s medical oversight program should establish a mechanism to review medical certificates, beyond the examiner evaluating the driver, to identify and correct
 the inappropriate issuance of medical certification. Finally, the FMCSA has taken no action to establish a system for reporting medical conditions that develop between
 examinations.


 CELL PHONE USE

  Driver distraction may be one of the least understood causes of traffic accidents. Recent interest in the effect of cell phone use and the use of other personal electronic devices
 while driving has prompted numerous studies. The explosive growth of text-messaging while driving has prompted several states and the Federal Government to restrict such
 activity.


 Most would agree that texting while driving is unsafe. In fact, Virginia Tech has shown that texting increases the risk of an accident by 23 times. However, the problem is much
 bigger than texting. If you dial a phone number or reach for the phone while you are driving, you are taking your eyes off the road. You may be able to do this and get away with it
 hundreds or even thousands of times, but one day, you will look down at your cell phone at just the wrong moment and become an accident statistic. When the driver of an 80,000
 -pound tractor-trailer or a motorcoach carrying 55 passengers looks away from the road at the wrong instant, the results can be catastrophic.


 The NTSB investigated a passenger car accident in February 2002 in Largo, Maryland, in which an inexperienced 20-year-old driver lost control of her high-profile, short-
 wheelbase vehicle on the Capitol Beltway. She was talking to her boyfriend, who was speeding in another vehicle ahead of her. She lost control of her vehicle and crossed over
 the median, striking a minivan and killing all four of its occupants and herself. The cause of the accident was a combination of inexperience, unfamiliarity with the vehicle, speed,
 and distraction caused by use of a handheld wireless telephone. As a result, the NTSB recommended that the applicable states prohibit holders of learner’s permits and
 intermediate licenses from using wireless communication devices while driving, and that they add driver distraction codes to traffic accident investigation forms.(13)


 In 2004, we investigated an accident in Alexandria, Virginia, in which an experienced motorcoach driver, who was having a heated conversation on his hands-free cell phone,
 failed to move to the center lane and struck the underside of an arched stone bridge on the George Washington Parkway. Our investigation found that the driver had numerous
 cues to change lanes at the appropriate time. In fact, the driver was familiar with the road and was following another bus that had moved to the center lane. Yet, this driver did not
 notice the well-marked signage as he approached the arched stone bridge. The accident was clearly caused by this driver’s cognitive distraction, due to his conversation on his
 cell phone. The NTSB recommended that the FMCSA and the 50 states enact laws to prohibit cell phone use by commercial drivers while driving a passenger-carrying
 commercial vehicle or school bus.(14) We also recommended that motorcoach associations, school bus organizations, and unions develop formal policies to prohibit cell phone
 use by commercial drivers, except in emergencies.(15)


 Last fall, we participated in the U.S. Department of Transportation’s (DOT) Distracted Driving Summit, which addressed the dangers of text-messaging and other driving
 distractions. During the summit, Secretary LaHood announced a plan to initiate rulemaking that would consider banning texting altogether and would restrict the use of cellular
 telephones by truck and interstate bus operators. A notice of proposed rulemaking was issued this month. While a ban on texting is definitely a step in the right safety direction, it
 does not satisfy our recommendation to prohibit the use of cellular telephones by drivers of passenger-carrying motorcoaches or school buses. The NTSB believes that cell phone
 use can be just as dangerous as text-messaging, because it is a cognitive distraction for the driver.


 MOTORCOACH PASSENGER PROTECTION

  Progress in the area of improving the protection for motorcoach passengers has been disappointing. We continue to investigate motorcoach accidents in which passengers are
 thrown from their seats, striking hard objects within the vehicle, and in which they are ejected out the windows. In 1999, we recommended that the National Highway Traffic Safety
 Administration (NHTSA) develop performance standards for motorcoach occupant protection systems and require newly manufactured motorcoaches to have such systems.(16)


 In the 11 years since we issued these recommendations, we have investigated more than 30 motorcoach accidents that have caused 140 fatalities and 1,070 injuries.(17) These
 accidents have included 259 ejections. NHTSA has not established any meaningful occupant protection standards for motorcoaches, and last year, the NTSB identified NHTSA’s
 lack of action in this area as contributing to the probable cause of the nine-fatality motorcoach accident in Mexican Hat, Utah. Shortly thereafter, Secretary LaHood directed
 several of the modal administrations within DOT, including the FMCSA, NHTSA, the Federal Highway Administration (FHWA), the Research and Innovative Technology
 Administration (RITA), and the Pipeline and Hazardous Materials Safety Administration (PHMSA), to develop a Motorcoach Safety Action Plan. The NTSB is hopeful that this
 initiative will lead to meaningful improvements in the safety protections provided to motorcoach passengers.


 MOTORCOACH ROOF STRENGTH

 Structural integrity of a motorcoach is as important to the safety of passengers as occupant protection systems. The NTSB has recommended that NHTSA develop performance
 standards for motorcoach roof strength that provide maximum survival space for all seating positions and that take into account current typical motorcoach window dimensions.
 (18) We have also recommended that NHTSA revise window glazing requirements for newly manufactured motorcoaches.(19) The roof strength recommendations were added to
 the NTSB’s Most Wanted List in 2000. Because of inaction by NHTSA on improving roof strength and window glazing, the NTSB reclassified all of these recommendations as
 “unacceptable response” in 2009.


 MOTORCOACH PASSENGER EGRESS

 Most motorcoaches in the United States have emergency egress windows. However, in a 1999 study on Selective Motorcoach Issues, the NTSB found that passengers had
 difficulty in opening emergency windows and keeping them open during evacuations. Consequently, in 1999, we recommended that NHTSA require window exits and other
 emergency exits not at floor level to be designed so that they are easy to open and to keep open during an emergency evacuation, when a motorcoach is either upright or at
 unusual attitudes.(20) This recommendation is on our Most Wanted List.




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 MOTORCOACH F RE PROTECTION

 Although injuries or fatalities resulting from motorcoach fires are relatively uncommon, fires on motorcoaches are very common (about one motorcoach is lost to fire per day). The
 importance of fire detection and suppression came to the forefront of everyone’s attention when 22 elderly motorcoach passengers perished near Dallas, Texas, in 2005 during
 the evacuation from Hurricane Rita. As a result of that investigation, the NTSB asked NHTSA to evaluate current emergency evacuation designs of motorcoaches and buses (21)
 The evaluation should take into account acceptable egress times for various postaccident environments, unavailable exit situations, and the current aboveground height and
 design of window exits to be used in emergencies by all potential vehicle occupants. The NTSB also asked NHTSA to develop early warning detection systems to monitor the
 temperature of wheel well compartments in motorcoaches and buses, and to evaluate the need for a Federal Motor Vehicle Safety Standard to require fire detection and
 suppression systems on motorcoaches.(22)


 EVENT DATA RECORDERS

 Event data recorders are a proven technology. They record critical vehicle movements and driver inputs. Such information greatly helps in accident reconstruction, leading to
 better accident prevention initiatives. Since 1997, the NTSB has issued six recommendations and participated in or hosted five public forums on the use of data recording devices
 in highway transportation.


 Following the 2003 pedal misapplication accident in a Santa Monica, California, farmers’ market, which resulted in 10 fatalities and 63 injuries, we recommended that NHTSA
 make event data recorders mandatory on newly manufactured light-duty vehicles (23) Most manufacturers now provide these devices.


 Specific to school buses and motorcoaches, the NTSB recommended in 1999 that NHTSA require school buses and motorcoaches manufactured after January 1, 2003, to be
 equipped with on-board recording systems that record a number of vehicle parameters.(24) We reiterated the recommendations in 2008, following the seven-fatality motorcoach
 accident involving Bluffton University students in Atlanta, Georgia.


 NEW CRASH AVO DANCE TECHNOLOGIES

 Since 1995, the NTSB has advocated collision warning systems and adaptive cruise control to prevent accidents. In 2001, as part of a study on Technology for the Prevention of
 Rear-End Collisions, the NTSB investigated nine commercial vehicle rear-end collisions in which 20 people died and 181 were injured. Common to all nine accidents was the
 degraded perception of traffic conditions ahead by the driver in the rear. The NTSB recommended that NHTSA issue performance standards for adaptive cruise control and
 collision warning systems for new commercial vehicles.(25)


 In 2003, the NTSB investigated a multivehicle accident near Hampshire, llinois, in which a tractor-trailer failed to slow for the stopped or slow-moving traffic on the approach to
 the Interstate 90 toll plaza. The tractor-trailer driver was distracted and the tractor-trailer struck the rear of a specialty bus, killing 8 passengers and injuring 12. As a result, the
 Board reiterated the above recommendations. In 2007, these important safety recommendations were added to our Most Wanted List. They were reiterated in 2008, in the
 NTSB’s report on a five-fatality motorcoach and tractor-trailer accident in Osseo, Wisconsin, as well as a seven-fatality tractor-trailer/sedan/school bus collision in Lake Butler,
 Florida, and a 15-fatality motorcoach rollover accident in Turrell, Arkansas.


 Electronic stability control is standard in most automobiles today. As a result of the Osseo accident investigation, the NTSB recommended that NHTSA determine whether
 equipping commercial vehicles with collision warning systems with active braking and electronic stability control systems would reduce commercial vehicle accidents, and if so,
 require their use on commercial vehicles.(26)


 In many commercial vehicle tires, a small loss of air can degrade tire carrying capacity and cause sufficient heat build-up to result in tire failure. In 2008, a motorcoach became
 uncontrollable after a tire failure and plunged off a bridge near Sherman, Texas, resulting in 17 fatalities. NHTSA now requires the installation of tire pressure monitoring systems
 on passenger cars and light trucks weighing 10,000 pounds or less. As a result of the Sherman accident, the NTSB recommended that all commercial vehicles weighing over
 10,000 pounds be equipped with tire pressure monitoring systems,(27) to help avoid crashes caused by tire failures.


 CLOS NG

 Many of the issues discussed today have been around for decades, and much is left to be done to improve highway safety. Immediate action is needed so that when we load our
 children into our cars and get out on the highway, we are surrounded by trucks and buses that are safely designed, carefully maintained, and expertly operated.


 Mr. Chairman, this completes my statement, and I will be happy to respond to any questions you may have.


 FOOTNOTES


 1.   Safety Recommendation H-99-6. - Back inside the text
 2.   Safety Recommendation H-07-3: “To protect the traveling public until completion of the Comprehensive Safety Analysis 2010 Initiative, immediately issue an Interim Rule to
 include all Federal Motor Carrier Safety regulations in the current compliance review process so that all violations of regulations are reflected in the calculation of a carrier’s final
 rating.” - Back inside the text
 3.   (a) Fatigue, Alcohol, Drugs, and Medical Factors in Fatal-to-the-Driver Heavy Truck Crashes, Safety Study NTSB/SS-90/01 (Washington, DC: NTSB, 1990); (b) Factors that
 Affect Fatigue in Heavy Truck Accidents, Safety Study NTSB/SS-95-01 (Washington, DC: NTSB, 1995). - Back inside the text
 4.   Safety Recommendation H-08-13. - Back inside the text
 5.   Safety Recommendation H-08-14. - Back inside the text
 6.   Safety Recommendation H-09-15. - Back inside the text
 7.   Safety Recommendation H-09-16. - Back inside the text
 8.   Safety Recommendation H-03-2. - Back inside the text
 9.   Safety Recommendation H-09-21. - Back inside the text
 10. Safety Recommendations H-09-34 through -36. - Back inside the text
 11. Safety Recommendations H-01-17 through -24. - Back inside the text
 12. Safety Recommendations H-01-22 and -23. - Back inside the text
 13. Safety Recommendations H-03-8 and -9. - Back inside the text
 14. Safety Recommendations H-06-27 and -28. - Back inside the text
 15. Safety Recommendation H-06-29. - Back inside the text
 16. Recommendations H-99-47 and -48. - Back inside the text




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 17. Some of the major investigations include the following accidents: 1999 New Orleans, LA (22 fatal, 21 injured, 10 ejected); 2002 Loraine, TX (3 fatal, 29 injured); 2002 Victor,
 NY (5 fatal, 41 injured, 6 ejected); 2003 Hewitt, TX (5 fatal, 29 injured, 15 ejected); 2003 Tallulah, LA (8 fatal, 6 injured, 1 ejected); 2004 Turrell, AR (15 fatal, 15 injured, 30
 ejected); 2005 Osseo, WI (5 fatal, 35 injured, 1 ejected); 2007 Atlanta, GA (6 fatal, 28 injured, 12 ejected); 2008 Victoria, TX (1 fatal, 46 injured, 1 ejected); 2008 Mexican Hat, UT
 (9 fatal, 42 injured, 50 ejected); and 2008 Sherman, TX (17 fatal, 39 injured, 4 ejected). - Back inside the text
 18. Safety Recommendations H-99-50 and -51. - Back inside the text
 19. Safety Recommendation H-99-49. - Back inside the text
 20. Safety Recommendation H-99-9. - Back inside the text
 21. Safety Recommendation H-07-8. - Back inside the text
 22. Safety Recommendations H-07-6 and -7. - Back inside the text
 23. Safety Recommendation H-04-26. - Back inside the text
 24. Safety Recommendations H-99-53 and -54. - Back inside the text
 25. Safety Recommendations H-01-6 and -7. - Back inside the text
 26. Safety Recommendation H-08-15. - Back inside the text
 27. Safety Recommendation H-09-22. - Back inside the text




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