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Monthly Status
Briefing
July 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 87 percent lower and
                                                  recordable injury rate 44 percent lower than
                                                  industry average
                                              As of June 30, 2012, the project has
                                                  completed nearly 50,000 hours and 16 days
                                                  without a lost-time accident
          2.23


                        1.5




                              0.20          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―969
 Richmond, Ky.―893
  ― Nonmanual―452
  ― Craft―441

  ― Local hires―58 percent

 Other locations―76
  ― Pasco, Wash.
  ― San Diego, Calif.
  ― Columbus, Ohio
                             Blue Grass Chemical Agent-Destruction Pilot Plant craft
  ― Frederick, Md.           workers prepare electrical cable trays for installation
                             inside the Utility Building.




                                                                               6
Economic Impact



 Acquisitions to date
  ―   $84.4 million spent with Kentucky companies
  ―   $47.6 million spent in Madison and surrounding counties
 Payroll to date (includes nonmanual and craft)
  ― $342 million of local payroll paid
  ― $468 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 (not visible in photo)
                                                         •
    • Electrical, piping and fire detection systems         • Exterior pipe rack support steel

    • Heating, ventilation and air conditioning (HVAC)      • Concrete pads for exterior utilities

                                                            • Interior electrical and piping systems
2
   Munitions Demilitarization Building (MDB)            4 Supercritical Water Oxidation (SCWO)
                                                         
    • Concrete placements, structural steel, paneling      Process Building (not visible in photo)
    • Electrical, piping, mechanical systems                • Structural steel, process tanks and equipment
    • HVAC systems and protective coatings
                                                         5 Laboratory Building (not visible in photo)
                                                         
    • MDB filter area foundations                           • Exterior siding, architectural trim and railings

                                                            • Interior cabinet assembly and floorings




                                                                                                    8
Control and Support
Building (CSB)




A complex network of subflooring and electrical infrastructure (above left) is being installed
inside the CSB instrument rack rooms. Outside the CSB, BGCAPP craft workers are connecting
heating, ventilation and air conditioning ductwork components to the building’s exterior. Once
complete, the CSB will house the control room and the integrated control system used to operate
the plant.




                                                                                         9
Munitions Demilitarization
Building (MDB)




Craft workers make the project’s first MDB filter area concrete foundation placement (above left).
During plant operations, the MDB’s negative air pressure system, called cascading ventilation,
draws fresh air into the building, returning it to the atmosphere only after it passes through a
series of carbon filter units that scrub the air as it passes through. Inside the MDB, a craft worker
fastens an electrical cable tray (above right) to installed structural steel. 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




Reinforcing steel installation is underway (above left) to support the final HSA concrete
foundation placement. At the SCWO Process Building, craft workers anchor structural steel roofing
beams (above right) to the building’s installed steel girders. 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
Laboratory Building




Laboratory (above left) heating, ventilation and air conditioning units, along with fall-protection
railings, have been installed atop the building’s roof. Inside the Laboratory, craft workers
assemble and install cabinets and countertops (above right). During operations, the Laboratory’s
functions will include verifying agent destruction before byproducts from the neutralization
process are emptied into hydrolysate holding tanks to await transfer to the Supercritical Water
Oxidation Process Building.




                                                                                            12
Blue Grass Chemical
Agent-Destruction Pilot Plant




                                13

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July 2012 - Blue Grass Chemical Agent-Destruction Pilot Plant 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 87 percent lower and recordable injury rate 44 percent lower than industry average  As of June 30, 2012, the project has completed nearly 50,000 hours and 16 days without a lost-time accident 2.23 1.5 0.20 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―969  Richmond, Ky.―893 ― Nonmanual―452 ― Craft―441 ― Local hires―58 percent  Other locations―76 ― Pasco, Wash. ― San Diego, Calif. ― Columbus, Ohio Blue Grass Chemical Agent-Destruction Pilot Plant craft ― Frederick, Md. workers prepare electrical cable trays for installation inside the Utility Building. 6
  • 7. Economic Impact  Acquisitions to date ― $84.4 million spent with Kentucky companies ― $47.6 million spent in Madison and surrounding counties  Payroll to date (includes nonmanual and craft) ― $342 million of local payroll paid ― $468 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 (not visible in photo) • • Electrical, piping and fire detection systems • Exterior pipe rack support steel • Heating, ventilation and air conditioning (HVAC) • Concrete pads for exterior utilities • Interior electrical and piping systems 2  Munitions Demilitarization Building (MDB) 4 Supercritical Water Oxidation (SCWO)  • Concrete placements, structural steel, paneling Process Building (not visible in photo) • Electrical, piping, mechanical systems • Structural steel, process tanks and equipment • HVAC systems and protective coatings 5 Laboratory Building (not visible in photo)  • MDB filter area foundations • Exterior siding, architectural trim and railings • Interior cabinet assembly and floorings 8
  • 9. Control and Support Building (CSB) A complex network of subflooring and electrical infrastructure (above left) is being installed inside the CSB instrument rack rooms. Outside the CSB, BGCAPP craft workers are connecting heating, ventilation and air conditioning ductwork components to the building’s exterior. 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) Craft workers make the project’s first MDB filter area concrete foundation placement (above left). During plant operations, the MDB’s negative air pressure system, called cascading ventilation, draws fresh air into the building, returning it to the atmosphere only after it passes through a series of carbon filter units that scrub the air as it passes through. Inside the MDB, a craft worker fastens an electrical cable tray (above right) to installed structural steel. 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 Reinforcing steel installation is underway (above left) to support the final HSA concrete foundation placement. At the SCWO Process Building, craft workers anchor structural steel roofing beams (above right) to the building’s installed steel girders. 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. Laboratory Building Laboratory (above left) heating, ventilation and air conditioning units, along with fall-protection railings, have been installed atop the building’s roof. Inside the Laboratory, craft workers assemble and install cabinets and countertops (above right). During operations, the Laboratory’s functions will include verifying agent destruction before byproducts from the neutralization process are emptied into hydrolysate holding tanks to await transfer to the Supercritical Water Oxidation Process Building. 12