A Fortune Global 5 Refinery asked MCi to provide an analysis of three contractor labor invoices for a 45 day period during their Spring Turnaround. By automatically applying the contractual terms and conditions, the actual access control system in/out events, and the skills and schedules for each contractor, the TRACK Platform identified $2.1 million of overpaid time in the span of 6 weeks. Extrapolating the 45-day loss, assuming a refinery has two Turnarounds a year and uses contractors for routine maintenance, the refinery is conservatively losing approximately $10 million a year in contractor labor billing.
The owner provided TRACK with the original invoices for the 3 contractors involved in the analysis. The first table summarizes the invoices by Straight Time, Over Time and Double Time for a total spend of $18.1 million.
Invoiced Hour Comparison
| Contractor 1 | Contractor 2 | Contractor 3 | TOTAL | |
| Vendor Invoices | ||||
| ST Hours | 49,628.50 | 62,277.50 | 42,624.75 | 154,530.75 |
| OT Hours | 22,835.00 | 23,759.50 | 13,814.00 | 60,408.50 |
| DT Hours | 6,311.00 | 8,761.00 | 3,153.25 | 18,225.25 |
| Total Hours | 78,774.50 | 94,798.00 | 59,592.00 | 233,164.50 |
| Total Dollars | $6,479,378.15 | $7,565,926.37 | $4,144,838.00 | $18,190,142.81 |
Once the ACS Gate Log was automated and the owner’s pay rules and schedules applied, there was a significant decrease of Straight Time, Over Time and Double Time for a savings of 11.7%. These savings originated from offsite work validated by the owner, early out gate punches, late arrival gate punches and various other situations that weren’t aligned with the Term and Condition’s of the contract.
The table below shows the total calculations and what should have been invoiced and paid by the owner. The Owner paid $18MM for just these three contractors during the 45-day turnaround when they should have paid $2.1MM less.
TRACK Calculated Hours
Each contractor was analyzed fully and detailed below are the various findings. As you can see, each contractor had varying degrees of contractual compliance issues:
The TRACK Platform-calculated invoice error rate is 4.99% on hours and 7.15% on dollars.
The TRACK Platform starts with a standard process for analysis and then customizes it for each Owner. This ensures an accurate and complete review, giving the TRACK Platform total confidence that the savings claimed can be substantiated:
Management Controls, Inc. (MCi) helps companies obtain better visibility, control and productivity from their contract workforce. MCi’s TRACK® Platform provides automated contract compliance as well as a holistic view across the entire labor, equipment and materials spend. TRACK’s® real-time data stream can be proactively applied to optimize performance and safety for routine maintenance, turnarounds, capital projects and operations. With the powerful addition of MCI’s customized analytics service, Insights-as-a-Service, and its managed service offering, TRACK-as-a-Service (TaaS), companies can leverage MCi’s 30 years of experience to get even more out of TRACK®, as well as identify opportunities to improve site productivity overall.
The TRACK Platform is currently in use at over 300 industrial sites, including over 90% of North American refining capacity and processing over $50 Billion in annual contractor spend; generating over $5 Billion in annual savings across our customer base.