Kaiser Permanente

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Kaiser Permanente Electronic Equipment
Disposition H2E Electronics Teleconference May
14, 2004
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Overview

• Problem Goals and Objectives
• Equipment Disposition Risks
• Environmental Stewardship Criteria
• Regulatory Compliance Due Diligence
• Vendor Selection Process
• Vendor Solution
• Whats in a PC System
• Sample Reports
• In-process Accomplishments

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Goals and Objectives

• Original problem Need to dispose of excess and
  obsolete IT Equipment in a cost effective manner
• Problem started with IT running out of SPACE -
  offices and cubes in addition to cabinets and
  closets were being used to store excess IT
  equipment
• The project lead - Director of National IT
  Finance, Jim Regan to manage process.
• IT quickly became aware of liability/pollution
  issues involved National EHS for the
  environmental components of IT Equipment
  Disposals
• National IT wanted to become Best in Class for
  equipment disposition
• IT needed to minimize overall risk

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Main Equipment Disposition Issues
Reporting and documentation are key to the
minimization of all three risks.

• Financial
• Space
• Steep value curve of electronics
• Any process needed to be cost effective
• Environmental Safety
• Compliance
• RCRA, Universal Waste (CA and Federal), OSHA
• Due diligence visits and systems verification
  more later
• Stewardship Waste minimization hierarchy
• Social Justice overseas recycling concerns
• Operational
• Organizational and Patient Confidentiality
• HIPAA Privacy and Security requirements

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Environmental Stewardship Criteria

• Waste Minimization Hierarchy also happened to
  be the best way to make the process cost
  effective Redeploy, Resale, Recycle
• Pollution Prevention toxic and other hazardous
  components land, air, water
• Social Justice Domestic recycling due to safety
  and environmental concerns

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Environmental and Safety Compliance

• Pre Visit Request for Information
• CAPABILITY AND CAPACITY
• SUBCONTRACTOR RELATIONSHIPS
• Vendors due diligence of subs
• CLIENT BASE COMMUNITY/LABOR RELATIONS
• OPERATIONS AND CONTROLS
• SOPs, Policies
• Training Manuals
• COMPLIANCE AND VIOLATIONS HISTORY
• Local, State and Federal Agencies
• Contamination and Clean Up actions
• INSURANCE
• Workers Comp, Employers Liability, General
  Liability, Auto Liability and Pollution Liability
• FINANCIAL
• 10Ks, Annual Reports, Audited Financials
• Dun Bradstreet rating, Market Share, Litigation

• Site Visit
• EMPLOYEE EXPOSURE CONTROLS
• Accidents spills
• Medical surveillance
• OPERATIONS AND PROCESSES VERIFICATION
• Process Diagram Polices and Procedures
• Fire Dept. Floor Plan
• TREATMENT, STORAGE AND DISPOSAL PRACTICES
• RECORDKEEPING AND REPORTING FUNCTIONS
• Employee Training
• Permits - Haz Waste, Waste water discharges,
  POTW, Air, Underground Injection, Transportation,
  TSCA, UST Filings, Water diversion, other
• VIOLATIONS/COMPLIANCE ISSUES
• Check for closure

Summary of regulatory and environmental
stewardship criteria addressed through RFIs and
site visits. Not comprehensive criteria.
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Vendor Selection Process

• Developed an RFP with Kaiser Permanente
  requirements, researched possible vendors and did
  pilot sites visits.
• Selected the best based on their ability to
  deliver services (logistics, data cleaning,
  reporting etc.) at an affordable price.
• NEHS conducted due diligence of owned/leased
  transfer stations, transporters and recycling
  subcontractors of the selected vendor.

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Vendor Solution - Redemtech

• 3 Immutable Laws of Technology Recycling
• Best use is highest use
• Redeployment ? Resale ? Donation ? Parts Recovery
  ? Recycling
• Everything is hazardous
• Documentation for all processes
• Risk trumps cost
• Promotes IT asset budgeting with a long view

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Whats in a PC system?

• Refer to handout Component Materials cpus
  monitors and printers

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Audit Activity Summary
July 18, 2001 March 31, 2004

Sample report.
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Breakout By Type of Asset
Lifetime July 18, 2001 March 31, 2004
Sample report.
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Working Assets by Category
As of March 31, 2004
Sample report.
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Summary of Accomplishments

• Persuaded Redemtech to sign the Silicon Valley
  Toxic Coalitions Electronic Recyclers Pledge of
  True Stewardship.
• Participated in a Computerworld Magazine article
  highlighting the steps taken by KP-IT to put this
  program in place.
• Started push to redeploy a larger share of the IT
  Equipment.

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The End

• Questions/Comments
• Toxic Legacy - Computerworld article
• http//www.computerworld.com/hardwaretopics/hardwa
  re/story/0,10801,89552,00.html?nasAM-89552
• Contact
• Lynn Garske, Kaiser Permanente
• Office 818-352-3093
• Email lynn.garske_at_kp.org