Blue Grass Chemical Agent Destruction Pilot Plant Update April 26, 2011 Presented to: Bechtel Parsons Blue Grass Supplier Information Session Presented by: Jeff Brubaker Site Project Manager Blue Grass Chemical Agent-Destruction Pilot Plant

Mission A Partnership for Safe Chemical Weapons Destruction



The Blue Grass Chemical Agent Destruction Pilot Plant will safely destroy the chemical weapons stored at the Blue Grass Army Depot in Richmond, Ky.



The U.S. Army Element, Assembled Chemical Weapons Alternatives (ACWA) manages all aspects of the chemical weapons destruction program for both Kentucky and Colorado

Igloos at the depot store both conventional and chemical weapons and other non-stockpile items.



Bechtel Parsons Blue Grass is the group of companies headed by Bechtel and Parsons, contracted by DoD to design, build, operate and close the pilot plant

Chemical weapons such as these M55 rockets are cared for by the Blue Grass Chemical Activity.

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Project Partners

   

A Partnership for Safe Chemical Weapons Destruction Blue Grass Army Depot

– The “host” installation

Blue Grass Chemical Activity

– Responsible for safely storing the chemical weapons

U.S. Army Element, Assembled Chemical Weapons Alternatives

– A Department of Defense (DoD) program responsible for managing all aspects of the safe and environmentally sound destruction of the chemical weapons stockpiles in both Kentucky and Colorado

Bechtel Parsons Blue Grass

– A group of companies headed by Bechtel and Parsons, contracted by DoD to design, build, operate and close the pilot plant

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Destruction Technology A Partnership for Safe Chemical Weapons Destruction Neutralization followed by Supercritical Water Oxidation will be used to destroy the Kentucky stockpile.

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Blue Grass Site Plan

Phase 1 Roads Site Prep Phase 2 - Other Roads/Parking Lighting U/G Utilities North Access Pt.

Phase 3 - Other Support/Indirect through 9/09

A Partnership for Safe Chemical Weapons Destruction Substation Personnel Support Building Control and Support Building (CSB) CSB Horizontal Concrete Hydrolysate Storage Tanks Lab PMB Phase 4 - Other A/G Utilities Elec Sec Sys Int Control Sys Standby D-Gen Entry Ctl Facility Support/Indirect through 2015 WSA MDB Horizontal Concrete Munitions Demilitarization Building (MDB) Maintenance Building Supercritical Water Oxidation (SCWO) Processing Building Utility Building Container Handling Building 5

Site Overview – April 2011 A Partnership for Safe Chemical Weapons Destruction 1 2 4 3 1 2 3 4 Northwestern Corner - Observation Point Control and Support Building Munitions Demilitarization Building (MDB) Utility Building MDB Blast-Suppression Area 6

B G C A P P Safety Is A Core Value A Partnership for Safe Chemical Weapons Destruction

   Continued progress toward OSHA Voluntary Protection Program Star Status Lost-time injury rate 83 percent lower and recordable injury rate 69 percent lower than industry average As of March 31, 2011, the project has completed 118,975 hours and 22 days without a lost-time accident.

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Current Project Staffing A Partnership for Safe Chemical Weapons Destruction



Total project employment: 852

−

Richmond, Ky.: 672

• Non-manual: 377 • Craft: 295 • Local hires: 55 percent −

Other locations: 180

• • • • Pasco, Wash.

San Diego, Calif.

Columbus, Ohio Frederick, Md.

Pilot plant workers put the finishing touches on the final blast-containment wall on the first level of the Munitions Demilitarization Building.

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Economic Impact

   

A Partnership for Safe Chemical Weapons Destruction

ACQUISITIONS: companies More than $71.5 million spent with Kentucky

PAYROLL

– More than $185 million in local payroll to date – An additional $442 million in payroll to be paid during remainder of project

LEASING:

Annual lease payments of more than $400,000 for office and warehouse space

COMMUNITY SUPPORT

– Corporate contributions of more than $60,000 to educational and health and welfare organizations – Bechtel Parsons is largest contributor to United Way in Madison County – Recipient of Richmond Chamber of Commerce 2010 Industry of the Year Award

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Meeting Small Business Goals A Partnership for Safe Chemical Weapons Destruction

 

$43.3 million spent in Madison and surrounding counties Meeting or exceeding goals for working with small businesses Socioeconomic Category Goal Performance

Small Business Small Disadvantaged Business Woman-Owned Small Business HUBZone Small Business Veteran-Owned Small Business Service-Disabled Veteran-Owned Small Business 23.0% 2.0% 2.0% 2.0% 2.0% 1.0% 44.4% 2.4% 4.0% 3.5% 6.0% 1.6%

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Recent Major Milestones

   

A Partnership for Safe Chemical Weapons Destruction Construction 30 percent complete

-

Equipment Arrivals

Energetics Batch Hydrolyzer Enhanced On-site Containers Supercritical Water Oxidation Aluminum Filtration System Filters -

Successful placement of all first-level concrete on Munitions Demilitarization Building (MDB) Successful placement of initial second level concrete on MDB

Workers will continue placing vertical and horizontal elevated concrete through 2011 Carpenters monitor the flow of concrete during the first elevated concrete placement on the MDB April 7.

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Ongoing Initiatives A Partnership for Safe Chemical Weapons Destruction

   

Munitions Demilitarization Building

− Second-level blast-containment walls − Structural steel − Interior wall panels

Control and Support Building

− − − Interior wall sets Electrical and piping systems Heating, ventilation and air conditioning

Utility Building

− − Piping installation Installing boilers and supporting equipment

Supercritical Water Oxidation Processing Building

− Concrete foundation placements A pilot plant welder plies the tools of his trade on the steel framework of the Control and Support Building.

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Stop the Presses, We’re Going Green!

A Partnership for Safe Chemical Weapons Destruction

WHY GO GREEN?

   This spring, the Blue Grass Exchange newsletter will be replaced by Connect with BGCAPP e-newsletters This monthly e-newsletter will: – Provide you more timely information in an environmentally conscious fashion – Direct you to additional avenues for providing feedback and asking questions – Be adapted to two-page print versions and distributed with comment cards throughout the community Register today at www.pmacwa.army.mil

FACT:

The Environmental Protection Agency estimates that 44% of direct or junk mail is discarded without being opened or read, equaling four million tons of waste paper annually.

FACT:

The Ohio Office of Compliance Assistance and Pollution Prevention (OCAPP) estimates that 250,000 homes could be heated for a single day's junk mail.

FACT:

The Internal Revenue Service joined the growing list of state and local agencies going green by announcing this fall that it would discontinue the direct mailing of tax forms.

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A Partnership for Safe Chemical Weapons Destruction

Questions?

For more information about the Blue Grass Chemical Agent Destruction Pilot Plant project, please contact the Blue Grass Chemical Stockpile Outreach Office at (859) 626-8944

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Acquiring Field Materials

Field Procurement April 26, 2011

Topics

 Field Procurement Organization  Typical Field Procurement Requirements  Upcoming Engineered Equipment/Subcontracts  Frequently Asked Questions  Bid Process  Purchase Order Requirements  Warehouse/Delivery Information  Packaging and Shipping  Invoicing  Summary Blue Grass Chemical Agent-Destruction Pilot Plant 16

Field Procurement Organization

Frank Salaman

(Acquisition Services Manager)

Ken McGlothlin

(Materials Manager)

Lanette Rosales

(Field Procurement Supervisor)

Susan Roell

(Admin. Assistant)

Miranda Towsend

(Field Buyer) -------------------------

-

Civil

-

Constr. Consum.

-

Mechanical

-

Survey

Harold Arnold

(Field Buyer) -------------------------

-

Information Tech.

-

Office Products & Services

-

Rental Equipment

Brad Green

(Field Buyer) -------------------------

-

Calibration/Repair

-

Electrical

-

Misc. Fabrication

-

Pipe, Valve & Fittings

Teresa Miles

(Field Buyer) -------------------------

-

Rigging

-

Safety & Health

-

Survey Equipment

-

Tools

-

Welding

Andrew Hans – College Intern Blue Grass Chemical Agent-Destruction Pilot Plant 17

Typical Field Procurement Requirements Field On-Site Services  Portable Toilets  Fuel/Gas Delivery & Service  Trash Removal  Xerox Copier Maintenance  Software Training/Installation Field Material Purchases  Temporary Electrical Bulks  Welding Consumables  Backfill/Aggregate/Sand  Ice  Water  Toner  Paper  Safety and Construction Consum.

 Tools  Equipment Rentals  Survey Equipment  Medical and Health  Rigging  Pipes/Valves/Fittings Blue Grass Chemical Agent-Destruction Pilot Plant 18

Upcoming Engineered Equipment/Subcontracts Engineered Equipment/Materials  Communication Cable & Acc.

 Observation Windows  H2 Analyzers  Fabricated Stacks  Public Address System  Total Hydrocarbon Analyzer  Concrete Masonry Block Subcontracts  Heat Trace and Freeze Protection  HVAC Maintenance  Guardrails  Shrink Wrap  Parking Lot Paving  Diesel Generator Maintenance  Concrete Pumping Blue Grass Chemical Agent-Destruction Pilot Plant 19

Frequently Asked Questions  Where can we go to view upcoming work?

http://www.bechtelparsonsbgcapp.com

 Where do I go to register my company?

http://supplier.bechtel.com

 How do I get on the Bidders List?  Can we visit the field buyers at the jobsite?

 Who do we contact?

Supplier Advocate Contact: Diane Osbourne Tel.: 859-624-6204 E-mail: [email protected]

Blue Grass Chemical Agent-Destruction Pilot Plant 20

Bid Process

 Approved bidders will receive a Request for Pricing (RFP), which will consist of: – RFP letter with instructions – Field Material Requisition (FMR) identifying scope of work, technical and delivery requirements – Representations and Certifications – Sample PO w/terms and conditions identifying commercial requirements Blue Grass Chemical Agent-Destruction Pilot Plant 21

Bid Process (Cont’)

 Read

all

documents in full!

 Do not make the assumption that all FMRs are created equal  Ask for a better/clear understanding of the scope of work if FMR is unclear  Fill out all required information  Make sure you are quoting correct Unit of Measure (UOM) Blue Grass Chemical Agent-Destruction Pilot Plant 22

Bid Process (Cont’)

 When quoting an “or approved equal”, clearly state on your bid and provide data sheets "Or Equal" means buyer approved equal. Approval must be obtained prior to any award being made. In no event should alternate materials be delivered, prior to approval of substitution/deviation. Unapproved materials may be returned to Seller, and any associated charges shall be to the Seller's account.”  Fill out unit price AND extended price Blue Grass Chemical Agent-Destruction Pilot Plant 23

Purchase Order Requirements

1.

2.

3.

Commercial Requirements Technical Requirements Delivery Requirements 3 1 2 Blue Grass Chemical Agent-Destruction Pilot Plant 24

Warehouse/Delivery Information

 Site is located on 3000 Irvine Road, Highway 52 (Gate 12, across from Dollar General)  All deliveries/shipments are to be sent/received at Warehouse location unless otherwise stipulated on PO  Contact Warehouse Supervisor – Mark Williams (859) 779-7632 – E-mail: [email protected]

– 48 hrs. in advance (no less than 24 hours) – Delivery Hours • 7:00 a.m. to 3:00 p.m.

• Monday through Thursday only • Friday shipments available for emergency purposes only Blue Grass Chemical Agent-Destruction Pilot Plant 25

Warehouse/Delivery Information

 If shipments are being delivered by other means than Common Carrier, the following information is required no less than 24 hours in advance or access to the site will not be permitted.

- Valid DL – driver must be US Citizen - Name of trucking company - Registration and Insurance must be with the vehicle - No Guns, Ammo or Cameras Allowed - No Alcoholic Beverages or Drugs Blue Grass Chemical Agent-Destruction Pilot Plant 26

Packaging and Shipping

 Keys to successful Shipments – Clear Packing Slip: • Purchase Order Number • Line Item Numbers and Quantity Shipped • Delivery Destination (Specific Address or Jobsite) • Only include line items that are being delivered – Clearly mark all packages with PO Line Item Number – Include Supporting Documentation as required • Material Safety Data Sheets (MSDS) • Certificate of Compliance (C of C) Blue Grass Chemical Agent-Destruction Pilot Plant 27

Invoicing

 2 Payment Methods – BCard (Purchasing/Credit Card) – <$10,000.00

– Net 45 days from receipt of correct invoice – >$10,000.00

 Common Causes of Unpaid Invoices – Invoices are not sent to correct A/P location in Oakridge, TN – Invoices do not match unit price in PO – PO is a BCard purchase and invoices are being sent to A/P in Oakridge – Seller must contact Buyer for BCard payment Blue Grass Chemical Agent-Destruction Pilot Plant 28

Invoicing

 Invoicing Tips – Each invoice should reference the complete PO Number in full on the first page of the invoice (If your system does not allow all digits, place PO # in description of invoice) – Each item being invoiced should refer back to the appropriate line item from the PO – When experiencing payment issues, who should I contact?

Blue Grass Chemical Agent-Destruction Pilot Plant 29

Summary

 READ the Purchase Order and any revision requirements in its entirety  Contact Buyer and ask questions  Submit correct packing list with shipment  Submit correct invoice  A RESPONSIVE supplier is a REPETITIVE supplier Blue Grass Chemical Agent-Destruction Pilot Plant 30

Overall

•

The success of the BGCAPP Project depends on the partnership and relationship we build with our suppliers!

Blue Grass Chemical Agent-Destruction Pilot Plant 31

Sales of Surplus Government Property

Julia Landreth Property Administrator April 26, 2011

OPSEC Reviewed and Approved 09/29/2010 by RWR

Why do we sale excess property?

 Items that are sold have been determined to be excess to the needs of our project and no other government/state agency or project has identified a need for the item.

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Types of Commodities Sold

            Copiers/Reproduction Electronics Furniture (desks, chairs, bookcases, etc.) Machine tools (lathes, drill press, etc.) Heavy equipment (backhoes, cranes, etc.) Office equipment (microwaves, refrigerators, coffee pots Misc. materials (electrical, plumbing, etc.) Scrap metal Equipment (transformers, generators, light towers, seavans (Conex boxes), etc.

Construction tools (grinders, cutters, saws, tool boxes, socket sets, etc.) Automated Data Processing equipment (computers, monitors, printers, etc.) Motor Vehicles/Gators/Mules 34

Sales of Government Property

  Sales of surplus government property shall be conducted as directed by the Government  Federally mandated – Department of Defense Federal Acquisition Regulation Supplement (DFARS), Subpart 245.73, Sales of Surplus Contractor Inventory Formal (sealed bid) invitations for bids will be used (DFARS 245.7303) unless the Government approves use of informal bid procedures (DFARS 245.7304).

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Who can participate?

 Per DFAR 245.7309-13, Eligibility of Bidders - Anyone can participate as long as they are NOT: A. Under 18 years of age B. A civilian employee of the Department of Defense or the U.S. Coast Guard whose duties include any functional or supervisory responsibility for disposal of inventory; C. A member of the U.S. Armed Forces, including the Coast Guard, whose duties include any functional or supervisory responsibility for disposal of inventory; D. An employee or immediate member of the household of personnel in paragraphs (B) and (C) E. Included on the list of Parties Excluded from Procurement Programs 36

Frequently Asked Questions

 Go to http://www.bechtelparsonsbgcapp.com/ upcoming sales to view  Register to be notified of upcoming sales at http://www.bechtelparsonsbgcapp.com/SendMail/default.aspx

 Prospective bidders may inspect the property prior to placing a bid. Inspection dates are provided in the IFB  If you have questions contact: Julia Landreth, Property Administrator Telephone: (859) 779-7635 Email: [email protected]

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Sales Website

38

Bid Process

 Prospective Bidders will receive an Invitation for Bid (IFB), which will consist of: – General Terms and Conditions – Special Terms and Conditions – Description of the items being sold – Quantities being sold – Unit of measure – Inspection times and locations – Any additional information associated with the IFB – Any additional documentation if required for commodity being sold • If the sale is for scrap metal, the Scrap Warranty form (DD1639) will be included 39

Bid Process, (cont.)

 IFBs will be provided to prospective bidders at least 15 calendar days prior to bid opening.  Inspection of items for sale will be allowed as specified in the IFB - Valid DL – driver must be US Citizen - Registration and Insurance must be with the vehicle - BGAD is a Restricted Site - No Children, Guns, Knives with 3 inch blades or longer, Ammunition, Cameras, Alcohol, or Drugs Allowed 40

How do I Bid?

 Prospective bidders shall submit (mail) bids to the designated Property Administrator in the IFB.  Minimum of 20 percent (20%) deposit is required with all bids – Personal or business check – must be first party instruments – Certified check – Cashier’s check  Deposit checks will be returned if unsuccessful in bid 41

Helpful Reminders

 Read the General and Special Terms and Conditions in full – Call the Property Administrator if you have questions regarding the IFB  Fill out and submit all required information and forms, if applicable  Make sure you are bidding for the correct Unit of Measure (UOM)  Clearly state if you are bidding on an “all or nothing” basis 42

Bid Openings & Award

 If applicable, bid openings will be held in a place that is accessible to the public at the time and location specified in the IFB.

– Any bids received after the specified time will be considered non-responsive and will be returned unopened to the bidder  All bids will be compared and the Government will declare the winning bid.  Notice of award letters will be sent to the winning bidders.  Successful bidders must remove the entire awarded lot – no culling of wanted vs unwanted items 43

SDN 24915-00-G8L-GGG-00XXXa01

44

Revision 0

ITAR AND YOU

The Basics

45

Why is this a Requirement?

 Arms Export Control Act & Export Administration Act  There are two

Federal Laws that need to be addressed:

 International Traffic In Arms Regulations (

ITAR)

 Export Administration Regulations (

EAR)

 The laws authorize the President to define

defense articles, technical data, and defense services as well as control their export and import.

SDN 24915-00-G8L-GGG-00XXXa01 Revision 0

What are the Pieces?

46

   

Article

Any material, equipment, component, or part

designated on the U.S. Munitions List or Commerce Control List.

Services

Furnishing assistance to foreign persons, including

training, concerning articles to foreign persons; or furnishing any technical data to foreign persons.

Technical Data

Any information controlled under the ITAR

and EAR requirements.

BGCAPP Application

Toxicological Agents, Including Chemical Agents, Biological Agents, & Associated Equipment.

SDN 24915-00-G8L-GGG-00XXXa01 Revision 0

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Do Not Release Controlled Items or Data to Foreign Persons

 A Foreign Person is defined as: - An individual who is neither a U.S. citizen nor a permanent U.S. resident.

- Foreign corporation, partnership, trust, society or entity that is not incorporated or organized to do business in the United States.

SDN 24915-00-G8L-GGG-00XXXa01 Revision 0

48

Pre-Qualification

SDN 24915-00-G8L-GGG-00XXXa01 Revision 0

49

Destruction Letter

SDN 24915-00-G8L-GGG-00XXXa01 Revision 0

50

Destruction Form

SDN 24915-00-G8L-GGG-00XXXa01 Revision 0

Kentucky Procurement Assistance Program (KPAP)

WHAT YOU NEED TO KNOW ABOUT GOVERNMENT CONTRACTING Bobbi Carlton

51

Program Overview

• KPAP is a business assistance program of the Kentucky Cabinet for Economic Development that is designed for firms interested in government contracting • KPAP is operated out of the Department for Business Development’s Small Business Services Division 52

Program Overview

• KPAP is also known as a PTAC (Procurement Technical Assistance Center) which is funded through a Cooperative Agreement with the U.S. Department of Defense • If you are not a Kentucky business, you can locate your PTAC at this website: – http://www.dla.mil/db/procurem.htm

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Purpose and Desired Outcomes

• Purpose of program is to help Kentucky firms market their goods and services to federal, state, and local government agencies • Desired Outcomes: - Job creation/retention through increased government contracts - Increased government dollars flowing through Kentucky’s economy 54

Primary Services

• Government Marketing Assistance • One-on-One Consulting • Group Training 55

Marketing Assistance

• Bid Match Program – Automatically matches a company’s products and/or services against a database of federal, state, and local government bid opportunities – Collect bid information from several thousand government buying offices nationwide – Can include subcontracting opportunities – Are e-mailed to active KPAP clients participating in Bid Match 56

Bid Match Program

• Sample bid notice of potential government contracting opportunities

Department of the Army, Army Contracting Command, MICC, Fort Knox Contracting Center, Fort Knox Contracting Center, Directorate of Contracting, Building 1109B, Fort Knox, KY 40121-5000

W--Rental of portable shower trailers. W9124D-11-T-0084 052011 Barbara Mattingly, 502-624-8158 Fort Knox Contracting Center RENTAL OF PORTABLE SHOWER TRAILERS DURING WARRIOR FORGE TRAINING EVENT AT JOINT BASE LEWIS-MCCHORD, WASHINGTON Provide portable shower trailers for the Warrior Forge Training Event at Joint Base Lewis-McChord, Washington to be held during the period of 18 June 2011 through 27 July 2011. The contractor shall provide and service self sustaining, all inclusive portable shower facilities, transportation vehicles, personnel, equipment, tools, material , supervision and other items / services necessary to successfully carry out the required services during the specified period of performance. This requirement is 100% small business set-aside. NAICS 562991, with a size standard of $7.0M, applies to this requirement. The solicitation will be issued on or about 20 April 2011 with quotes due on or about 20 May 2011. The solicitation will be posted on the Fort Knox homepage website at http://doc.knox.army.mil

and FEDBIZOPPS at www.fbo.gov

on or about 20 April 2011. No paper copies of the solicitation will be issued. All amendments to the solicitation will be likewise posted to these websites. Contractors are cautioned to check the websites for amendments. No solicitation mailing list will be compiled. Any questions must be submitted in writing to Barbara Mattingly at [email protected]

. Any correspondence shall reference the solicitation number. Set Aside: Total Small Business Place of Performance: Joint Base Lewis-McChord JBLM-MCCORD WA 98438 US URL: https://www.fbo.gov/notices/73d8a41f69fd794075cd3f3e0765ebef .

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Bid Match Program

Consulting Services

• One-on-one assistance on topics related to government contracting is provided by experienced consultants 59 Examples of assistance: – Understanding contracting rules and regulations – Responding to government bid packages – Review quotes, bids, and proposals – Market research – Federal and State registrations – Certification programs

Training

• Training is designed to help firms understand how to do business with federal, state, and local government agencies – Selling to the Government – How to Prepare a Bid Proposal – Understanding GSA Schedules – Networking Opportunities http://www.thinkkentucky.com/KPAP/KPAPTrainingCalendar.aspx

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Small Business Connection

• New online database to facilitate matching small businesses with government buyers and large businesses • You provide information about your business including contacts, products and services, and business certifications • Registration is free to small businesses with a physical location in Kentucky www.kentucky.gov/sbc 61

KPAP Website Information

• • • • Guide to Government Contracting Application Questionnaire to enroll in KPAP Training Calendar Online Contract Reporting

www.thinkkentucky.com/kpap

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KPAP Website Information

Program Statistics

• Currently serving more than 2,600 active firms, including construction, manufacturing, service, research & development, and wholesale/retail • Client firms have reported by survey that we assisted them in obtaining more than $100 million annually in government contracts and subcontracts during each of the past five years 64

Summary of Services

• One-on-One Counseling • Matchmaking/Subcontracting Opportunities • Bid Match Services • GSA Schedule Assistance • Training & Networking Workshops • Certifications & Registrations 65

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Contact Information

Bobbi Carlton

[email protected]

502-229-9277 (Cell) 502-564-4252 x4214 (Work) 800-838-3266 x4214 (Work)

www.thinkkentucky.com/kpap

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KPAP

Questions???