OSHA requires not just a pre-contract evaluation but also periodic evaluation of contractor safety performance during the life of the relationship. Facilities often have robust pre-qualification processes but no systematic mechanism for evaluating ongoing performance. These letters address what periodic evaluation must cover, how frequently it must occur, and what the host employer must do when ongoing evaluation reveals safety performance problems. The obligation to remove a contractor from the process area when safety performance is unacceptable is directly addressed.

What OSHA Has Said

Feb 16, 2022
Periodic Evaluation Frequency and Documentation
OSHA addresses how often the ongoing performance evaluation must occur. While no specific frequency is mandated, OSHA expects evaluation proportional to the hazard exposure, at minimum annually for contractors with regular process area access.
Read OSHA Letter ↗
Mar 16, 2005
Response to Negative Periodic Evaluation Findings
OSHA addresses the host employer's obligation when periodic evaluation reveals safety deficiencies. The host must take action. The regulation does not permit continuing the relationship without corrective measures.
Read OSHA Letter ↗
Jun 29, 1994
Periodic Evaluation Records and Availability for Inspection
OSHA confirms that periodic evaluation records must be maintained and available for OSHA inspection. The host employer cannot rely on the contractor's own records and must retain its own documentation of each evaluation cycle.
Read OSHA Letter ↗

⚡ Key Compliance Takeaway

Build periodic contractor evaluation into your annual PSM calendar, not just your pre-contract checklist. Document each evaluation cycle, note deficiencies, and show the corrective actions taken. If a contractor's performance is chronically poor, the record should show why the relationship continues or why it was terminated.