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Monthly Status
Briefing
October 2012




                 1
Project Background

 The Blue Grass Chemical Agent-Destruction Pilot Plant (BGCAPP) will safely
  destroy 523 tons of chemical agent in rockets and artillery projectiles stored
  at the Blue Grass Army Depot in Richmond, Ky.

 The technology selected by the Department of Defense to destroy the Blue
  Grass chemical weapons stockpile is neutralization followed by supercritical
  water oxidation (SCWO).

 The Program Executive Office, Assembled Chemical Weapons Alternatives
  (PEO ACWA) Program, headquartered at Aberdeen Proving Ground, Maryland,
  is responsible for managing all aspects of the safe and environmentally sound
  destruction of the chemical weapons stockpiles in both Kentucky and
  Colorado.

 The Bechtel Parsons Blue Grass Team, a joint venture of Bechtel National,
  Inc., and Parsons Government Services Inc., along with teaming partners
  URS Corporation, Battelle, General Atomics and GP Strategies Corporation,
  is the systems contractor selected to design, build, systemize, pilot test,
  operate and close BGCAPP.



                                                                              2
Destruction Technology




                         Neutralization followed by
                         supercritical water
                         oxidation will be used to
                         destroy the Kentucky
                         stockpile.




                                               3
Safety


                                              Occupational Safety and Health Administration
                                                  Voluntary Protection Program Star Status site
    4.0                                       Lost-time injury rate is 87percent lower and
                                                  recordable injury rate 48 percent lower than
                                                  industry average
                                              As of September 30, 2012, the project has
                                                  completed 482,487 hours and 108 days
                                                  without a lost-time accident
          2.08

                        1.5




                              0.2           Construction Industry
                                            Bechtel Parsons
Recordable Injuries Lost-Time Injuries   (12-month rolling rate)
                                         Accidents per 200,000 job hours




                                                                                              4
Continued Safety Focus

 Safety remains a core value of the project workforce
 Management and employees focusing on goal
  of Zero Accidents:
   ― Communicating and re-emphasizing proper construction
     housekeeping, its relationship to safety excellence and
     need for continuous improvement
   ― Communicating and re-emphasizing importance of pre-planning
     and discussing daily work activities; identifying potential safety
     hazards before work begins
   ― Communicating and reviewing recent Occupational Safety &
     Health Administration recordable injuries and re-emphasizing
     employees’ roles and responsibilities to follow work procedures
     and analyze for potential hazards before work begins



                                                                  5
Current Project Staffing


 Total project
 employment―1,026
 Richmond, Ky.―962
  ― Nonmanual―469
  ― Craft―493

  ― Local hires―59 percent

 Other locations―64
  ― Pasco, Wash.
  ― San Diego, Calif.
  ― Columbus, Ohio
  ― Frederick, Md.

                             Craft workers install roof panels at the Munitions
                             Demilitarization Building.




                                                                             6
Economic Impact



 Acquisitions to date
  ―   $96.9 million spent with Kentucky companies
  ―   $57.8 million spent in Madison and surrounding counties
 Payroll to date (includes nonmanual and craft)
  ― $366 million of local payroll paid
  ― $444 million more to be paid during the remainder of project




                                                                   7
Construction Work in Progress

                                              5                4                      3




                                          1                               2




1
   Control and Support Building (CSB)                      3 Utility Building
                                                            •
    • Electrical, piping and fire detection systems           • Exterior pipe rack support steel

    • Heating, ventilation and air conditioning (HVAC)        • Interior electrical and piping systems

    • Facility control system cabinets and infrastructure     • Nitrogen generation plant equipment


2
   Munitions Demilitarization Building (MDB)               4 Supercritical Water Oxidation (SCWO)
                                                            
    • Structural steel, paneling, protective coatings         Process Building (not visible in photo)
    • HVAC, electrical, piping, mechanical systems            • Structural steel and exterior siding

    • MDB filter area foundations
                                                            5 Laboratory Building (not visible in photo)
                                                            
                                                               • Final construction punchlist activities

                                                               • Beginning early systemization activities



                                                                                                      8
Control and Support
Building (CSB)




A craft workers installs wiring inside an electrical transformer (above left) within the CSB.
Outside the CSB, craft workers install heating, ventilation and air conditioning ductwork (above
right) atop the roof. Once complete, the CSB will house the control room and the integrated
control system used to operate the plant.




                                                                                           9
Munitions Demilitarization
Building (MDB)




BGCAPP craft workers install electrical systems (above left) inside the MDB unpack area.
During plant operations, the unpack area is where chemical weapons will be received and
unpacked before the automated destruction process begins. A craft worker takes measurements
(above right) before installing piping infrastructure inside the MDB agent neutralization system
room. The MDB is where the chemical weapons will be disassembled, the explosives removed and
the agent neutralized.




                                                                                         10
Supercritical Water Oxidation (SCWO) Process
Building and Utility Power Centers (UPCs)




Craft workers continue installing the final pieces of exterior structural steel (above left) at the
SCWO Process Building. Elsewhere at the BGCAPP site, craft workers assemble formwork (above
right) for upcoming concrete pier placements to support a future UPC installation. The SCWO
Process Building will house the reactors where agent and energetic hydrolysates, byproducts of
the neutralization process, will be subjected to very high temperatures and pressures to destroy
the hydrolysates’ organic content. During operations, the UPCs will distribute electrical power to
BGCAPP facilities.




                                                                                             11
Utility Building (UB)




Adjacent to the UB, craft workers unload equipment (above left) for later installation atop the
recently completed nitrogen generation plant concrete foundation. Inside the UB, craft workers
install air compressor heating, ventilation and air conditioning ductwork (above right). The
nitrogen generation plant will supply nitrogen, an inert and non-flammable gas, during plant
operations to maintain a combustion-free environment. Once complete, the UB will house
equipment to produce steam, compressed air, chilled water and hot water for operations.




                                                                                          12
Blue Grass Chemical
Agent-Destruction Pilot Plant




                                13

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October 2012 BGCAPP Monthly Status Briefing

  • 2. Project Background  The Blue Grass Chemical Agent-Destruction Pilot Plant (BGCAPP) will safely destroy 523 tons of chemical agent in rockets and artillery projectiles stored at the Blue Grass Army Depot in Richmond, Ky.  The technology selected by the Department of Defense to destroy the Blue Grass chemical weapons stockpile is neutralization followed by supercritical water oxidation (SCWO).  The Program Executive Office, Assembled Chemical Weapons Alternatives (PEO ACWA) Program, headquartered at Aberdeen Proving Ground, Maryland, is responsible for managing all aspects of the safe and environmentally sound destruction of the chemical weapons stockpiles in both Kentucky and Colorado.  The Bechtel Parsons Blue Grass Team, a joint venture of Bechtel National, Inc., and Parsons Government Services Inc., along with teaming partners URS Corporation, Battelle, General Atomics and GP Strategies Corporation, is the systems contractor selected to design, build, systemize, pilot test, operate and close BGCAPP. 2
  • 3. Destruction Technology Neutralization followed by supercritical water oxidation will be used to destroy the Kentucky stockpile. 3
  • 4. Safety  Occupational Safety and Health Administration Voluntary Protection Program Star Status site 4.0  Lost-time injury rate is 87percent lower and recordable injury rate 48 percent lower than industry average  As of September 30, 2012, the project has completed 482,487 hours and 108 days without a lost-time accident 2.08 1.5 0.2 Construction Industry Bechtel Parsons Recordable Injuries Lost-Time Injuries (12-month rolling rate) Accidents per 200,000 job hours 4
  • 5. Continued Safety Focus  Safety remains a core value of the project workforce  Management and employees focusing on goal of Zero Accidents: ― Communicating and re-emphasizing proper construction housekeeping, its relationship to safety excellence and need for continuous improvement ― Communicating and re-emphasizing importance of pre-planning and discussing daily work activities; identifying potential safety hazards before work begins ― Communicating and reviewing recent Occupational Safety & Health Administration recordable injuries and re-emphasizing employees’ roles and responsibilities to follow work procedures and analyze for potential hazards before work begins 5
  • 6. Current Project Staffing  Total project employment―1,026  Richmond, Ky.―962 ― Nonmanual―469 ― Craft―493 ― Local hires―59 percent  Other locations―64 ― Pasco, Wash. ― San Diego, Calif. ― Columbus, Ohio ― Frederick, Md. Craft workers install roof panels at the Munitions Demilitarization Building. 6
  • 7. Economic Impact  Acquisitions to date ― $96.9 million spent with Kentucky companies ― $57.8 million spent in Madison and surrounding counties  Payroll to date (includes nonmanual and craft) ― $366 million of local payroll paid ― $444 million more to be paid during the remainder of project 7
  • 8. Construction Work in Progress 5 4 3 1 2 1  Control and Support Building (CSB) 3 Utility Building • • Electrical, piping and fire detection systems • Exterior pipe rack support steel • Heating, ventilation and air conditioning (HVAC) • Interior electrical and piping systems • Facility control system cabinets and infrastructure • Nitrogen generation plant equipment 2  Munitions Demilitarization Building (MDB) 4 Supercritical Water Oxidation (SCWO)  • Structural steel, paneling, protective coatings Process Building (not visible in photo) • HVAC, electrical, piping, mechanical systems • Structural steel and exterior siding • MDB filter area foundations 5 Laboratory Building (not visible in photo)  • Final construction punchlist activities • Beginning early systemization activities 8
  • 9. Control and Support Building (CSB) A craft workers installs wiring inside an electrical transformer (above left) within the CSB. Outside the CSB, craft workers install heating, ventilation and air conditioning ductwork (above right) atop the roof. Once complete, the CSB will house the control room and the integrated control system used to operate the plant. 9
  • 10. Munitions Demilitarization Building (MDB) BGCAPP craft workers install electrical systems (above left) inside the MDB unpack area. During plant operations, the unpack area is where chemical weapons will be received and unpacked before the automated destruction process begins. A craft worker takes measurements (above right) before installing piping infrastructure inside the MDB agent neutralization system room. The MDB is where the chemical weapons will be disassembled, the explosives removed and the agent neutralized. 10
  • 11. Supercritical Water Oxidation (SCWO) Process Building and Utility Power Centers (UPCs) Craft workers continue installing the final pieces of exterior structural steel (above left) at the SCWO Process Building. Elsewhere at the BGCAPP site, craft workers assemble formwork (above right) for upcoming concrete pier placements to support a future UPC installation. The SCWO Process Building will house the reactors where agent and energetic hydrolysates, byproducts of the neutralization process, will be subjected to very high temperatures and pressures to destroy the hydrolysates’ organic content. During operations, the UPCs will distribute electrical power to BGCAPP facilities. 11
  • 12. Utility Building (UB) Adjacent to the UB, craft workers unload equipment (above left) for later installation atop the recently completed nitrogen generation plant concrete foundation. Inside the UB, craft workers install air compressor heating, ventilation and air conditioning ductwork (above right). The nitrogen generation plant will supply nitrogen, an inert and non-flammable gas, during plant operations to maintain a combustion-free environment. Once complete, the UB will house equipment to produce steam, compressed air, chilled water and hot water for operations. 12