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Monthly Status
Briefing
September 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 50 percent lower than
                                                  industry average
                                              As of August 31, 2012, the project has
                                                  completed 351,552 hours and 78 days without
                                                  a lost-time accident
          2.0

                        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―1,018
 Richmond, Ky.―954
  ― Nonmanual―468
  ― Craft―486

  ― Local hires―59 percent

 Other locations―64
  ― Pasco, Wash.
  ― San Diego, Calif.        The Blue Grass Chemical Agent-Destruction
                             Pilot Plant project employs 1,018 workers.
  ― Columbus, Ohio
  ― Frederick, Md.




                                                                     6
Economic Impact



 Acquisitions to date
  ―   $86.8 million spent with Kentucky companies
  ―   $48.2 million spent in Madison and surrounding counties
 Payroll to date (includes nonmanual and craft)
  ― $358 million of local payroll paid
  ― $452 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 entrance stairs

                                                               • Final construction punchlist activities




                                                                                                      8
Control and Support
Building (CSB)




Craft workers connect exterior heating, ventilation and air conditioning (HVAC) ductwork (above
left) into the CSB. Inside the CSB, HVAC ductwork leak testing (above right) is under way to
ensure high-quality installation standards. Once complete, the CSB will house the control room
and the integrated control system used to operate the plant.




                                                                                         9
Munitions Demilitarization
Building (MDB)




A BGCAPP craft worker welds piping penetration plating (above left) inside an MDB explosive
containment room where the chemical weapons will be disassembled during plant operations.
Outside the explosive containment rooms, structural steel and exterior siding installation
continues. The MDB is where the chemical weapons will be disassembled, the explosives removed
and the agent neutralized.




                                                                                      10
Hydrolysate Storage Area (HSA)
and Laboratory Building




A craft worker finishes a recent HSA concrete placement (above left). Workers have completed
the HSA concrete foundation and have begun applying concrete protective coatings. The
Laboratory Building (above right) is nearing construction completion and will soon begin early
systemization activities. During operations, agent and energetic hydrolysates, byproducts of the
neutralization process, are emptied into HSA holding tanks once agent destruction is verified.
During operations, the Laboratory’s functions will include verifying agent destruction before
hydrolysates are emptied into HSA holding tanks to await transfer to the Supercritical Water
Oxidation Process Building.




                                                                                          11
Utility Building (UB)
and Utility Power Centers (UPCs)




Inside the UB, craft workers install piping components (above left). Craft workers install
underground electrical conduit (above right) to support various UPCs under construction
throughout the site. Once complete, the UB will house equipment to produce steam, compressed
air, chilled water and hot water for operations. During operations, the UPCs will distribute
electrical power to BGCAPP facilities.




                                                                                      12
Blue Grass Chemical
Agent-Destruction Pilot Plant




                                13

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September 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 87 percent lower and recordable injury rate 50 percent lower than industry average  As of August 31, 2012, the project has completed 351,552 hours and 78 days without a lost-time accident 2.0 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―1,018  Richmond, Ky.―954 ― Nonmanual―468 ― Craft―486 ― Local hires―59 percent  Other locations―64 ― Pasco, Wash. ― San Diego, Calif. The Blue Grass Chemical Agent-Destruction Pilot Plant project employs 1,018 workers. ― Columbus, Ohio ― Frederick, Md. 6
  • 7. Economic Impact  Acquisitions to date ― $86.8 million spent with Kentucky companies ― $48.2 million spent in Madison and surrounding counties  Payroll to date (includes nonmanual and craft) ― $358 million of local payroll paid ― $452 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 entrance stairs • Final construction punchlist activities 8
  • 9. Control and Support Building (CSB) Craft workers connect exterior heating, ventilation and air conditioning (HVAC) ductwork (above left) into the CSB. Inside the CSB, HVAC ductwork leak testing (above right) is under way to ensure high-quality installation standards. 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) A BGCAPP craft worker welds piping penetration plating (above left) inside an MDB explosive containment room where the chemical weapons will be disassembled during plant operations. Outside the explosive containment rooms, structural steel and exterior siding installation continues. The MDB is where the chemical weapons will be disassembled, the explosives removed and the agent neutralized. 10
  • 11. Hydrolysate Storage Area (HSA) and Laboratory Building A craft worker finishes a recent HSA concrete placement (above left). Workers have completed the HSA concrete foundation and have begun applying concrete protective coatings. The Laboratory Building (above right) is nearing construction completion and will soon begin early systemization activities. During operations, agent and energetic hydrolysates, byproducts of the neutralization process, are emptied into HSA holding tanks once agent destruction is verified. During operations, the Laboratory’s functions will include verifying agent destruction before hydrolysates are emptied into HSA holding tanks to await transfer to the Supercritical Water Oxidation Process Building. 11
  • 12. Utility Building (UB) and Utility Power Centers (UPCs) Inside the UB, craft workers install piping components (above left). Craft workers install underground electrical conduit (above right) to support various UPCs under construction throughout the site. Once complete, the UB will house equipment to produce steam, compressed air, chilled water and hot water for operations. During operations, the UPCs will distribute electrical power to BGCAPP facilities. 12