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Monthly Status
Briefing
August 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 Assembled Chemical Weapons Alternatives (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 79 percent lower and
                                                  recordable injury rate 39 percent lower than
                                                  industry average
                                              As of July 31, 2012, the project has completed
                                                  162,803 hours and 47 days without a lost-time
          2.45                                    accident


                        1.5




                              0.31
                                           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 re-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; and 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―977
 Richmond, Ky.―916
  ― Nonmanual―456
  ― Craft―460

  ― Local hires―59 percent

 Other locations―61
  ― Pasco, Wash.
  ― San Diego, Calif.
  ― Columbus, Ohio
  ― Frederick, Md.


                             The Blue Grass Chemical Agent-
                             Destruction Pilot Plant workforce in
                             Richmond is comprised of 59 percent
                             local hires.


                                                                    6
Economic Impact



 Acquisitions to date
  ―   $85.9 million spent with Kentucky companies
  ―   $47.9 million spent in Madison and surrounding counties
 Payroll to date (includes nonmanual and craft)
  ― $348 million of local payroll paid
  ― $462 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)     • Concrete pads for exterior utilities

    • Instrument rack room flooring                        • Interior electrical and piping systems

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

    • MDB filter area foundations                        5 Laboratory Building (not visible in photo)
                                                         
                                                            • Exterior siding, architectural trim and railings




                                                                                                     8
Control and Support
Building (CSB)




A craft worker cuts piping (above left) for installation inside the CSB. Elsewhere in the CSB,
workers are installing overhead electrical conduit (above right). 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 completed the MDB’s final concrete placement (above left) over the
building’s unpack area in late July. During plant operations, the unpack area is where chemical
weapons will be received and unpacked before the automated destruction process begins. Inside
the MDB, craft workers are installing support steel inside the MDB’s steel-laced concrete rooms.
The MDB is where the chemical weapons will be disassembled, the explosives removed and the
agent neutralized.




                                                                                          10
Hydrolysate Storage Area (HSA) and Supercritical
Water Oxidation (SCWO) Process Building




A craft worker compacts soil around the recently completed HSA concrete foundation (above left).
At the SCWO Process Building, craft workers continue welding and fastening together the
building’s structural steel frame (above right). During operations, agent and energetic
hydrolysates, byproducts of the neutralization process, are emptied into HSA holding tanks once
agent destruction is verified. The hydrolysate is transferred to the SCWO Process Building which
houses the reactors where agent and energetic hydrolysates will be subjected to very high
temperatures and pressures to destroy their organic content.




                                                                                        11
Utility Building (UB)




Inside the UB, a BGCAPP craft worker fastens electrical components (above left) to large water-
chilling units. Adjacent to the UB, craft workers install reinforcing steel (above right) to prepare
for future nitrogen generation plant concrete foundation placements. During plant operations,
nitrogen, an inert, non-flammable gas, will be used to maintain a combustion-free environment
during the chemical weapons destruction process. 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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August 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 Assembled Chemical Weapons Alternatives (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 79 percent lower and recordable injury rate 39 percent lower than industry average  As of July 31, 2012, the project has completed 162,803 hours and 47 days without a lost-time 2.45 accident 1.5 0.31 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 re-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; and 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―977  Richmond, Ky.―916 ― Nonmanual―456 ― Craft―460 ― Local hires―59 percent  Other locations―61 ― Pasco, Wash. ― San Diego, Calif. ― Columbus, Ohio ― Frederick, Md. The Blue Grass Chemical Agent- Destruction Pilot Plant workforce in Richmond is comprised of 59 percent local hires. 6
  • 7. Economic Impact  Acquisitions to date ― $85.9 million spent with Kentucky companies ― $47.9 million spent in Madison and surrounding counties  Payroll to date (includes nonmanual and craft) ― $348 million of local payroll paid ― $462 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) • Concrete pads for exterior utilities • Instrument rack room flooring • Interior electrical and piping systems 4 Supercritical Water Oxidation (SCWO)  2  Munitions Demilitarization Building (MDB) Process Building (not visible in photo) • Structural steel, paneling, protective coatings • Structural steel, process tanks and equipment • HVAC, electrical, piping, mechanical systems • MDB filter area foundations 5 Laboratory Building (not visible in photo)  • Exterior siding, architectural trim and railings 8
  • 9. Control and Support Building (CSB) A craft worker cuts piping (above left) for installation inside the CSB. Elsewhere in the CSB, workers are installing overhead electrical conduit (above right). 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 completed the MDB’s final concrete placement (above left) over the building’s unpack area in late July. During plant operations, the unpack area is where chemical weapons will be received and unpacked before the automated destruction process begins. Inside the MDB, craft workers are installing support steel inside the MDB’s steel-laced concrete rooms. The MDB is where the chemical weapons will be disassembled, the explosives removed and the agent neutralized. 10
  • 11. Hydrolysate Storage Area (HSA) and Supercritical Water Oxidation (SCWO) Process Building A craft worker compacts soil around the recently completed HSA concrete foundation (above left). At the SCWO Process Building, craft workers continue welding and fastening together the building’s structural steel frame (above right). During operations, agent and energetic hydrolysates, byproducts of the neutralization process, are emptied into HSA holding tanks once agent destruction is verified. The hydrolysate is transferred to the SCWO Process Building which houses the reactors where agent and energetic hydrolysates will be subjected to very high temperatures and pressures to destroy their organic content. 11
  • 12. Utility Building (UB) Inside the UB, a BGCAPP craft worker fastens electrical components (above left) to large water- chilling units. Adjacent to the UB, craft workers install reinforcing steel (above right) to prepare for future nitrogen generation plant concrete foundation placements. During plant operations, nitrogen, an inert, non-flammable gas, will be used to maintain a combustion-free environment during the chemical weapons destruction process. Once complete, the UB will house equipment to produce steam, compressed air, chilled water and hot water for operations. 12