Quality Clauses

External Provider Requirements

To become and remain an external provider to Accurate Machining, please read, acknowledge, and accept the following Accurate Machining external provider requirements, applicable until further notice:

External providers must use external provider sources that are approved by Accurate Machining customers, where specified.  External providers must abide by Accurate Machining’s customers’ supplier approval requirements, which are identified in Accurate Machining Purchase Orders, or in other written statements of requirement, when applicable.

External providers must implement a Quality Management System if Accurate Machining deems necessary.

External providers are required to notify Accurate Machining of nonconforming processes, products, or services when discovered at external providers’ locations and in cases where product or service release to Accurate Machining has occurred, if applicable. Accurate Machining’s Management and/or Accurate Machining’s customer representative must review and disposition such nonconforming product or service according to established Accurate Machining’s or its customer’s specifications and procedures. All nonconformance reports must accompany product back to Accurate Machining and parts need to be clearly labeled non-conforming.

External providers must prevent the use of counterfeit materials or parts.  Or creating of counterfeit parts by deviating from print or any other method.  The Supplier shall maintain a method of commodity and item level traceability that ensures tracking of the supply chain back to the manufacturer of all material(s) being delivered.  The Suppliers traceability hall clearly identify the name and location of all the supply chain intermediaries from the manufacturer to the direct source of the material for the Supplier. The Supplier shall ensure that only new and authentic materials are used in the material deliveries.

External providers will not co-mingle different date codes or production lots, no combine resubmitted parts with new production lots.  Parts may be submitted in one shipment provided the different date codes and lots are identified and segregated.

External providers who supply nonconforming product without the proper documentation to Accurate Machining may have a Supplier Correction Action Request submitted and assigned to Suppliers company. Suppliers are expected to communicate how they intend to correct the immediate discrepancy as well as what they intend to do to correct the root cause of the nonconformance and prevent recurrences should a correction action be issued.  Failure to respond in a timely manner may cause delay in payment and adversely affect the supplier’s Quality Performance Rating.

External providers of raw materials must prevent the use of raw materials containing conflict minerals per the Dodd-Frank Act, Section 1502.

External providers are required to notify Accurate Machining of changes to processes, products, or services, including changes of their external providers, or location of manufacture and obtain Accurate Machining’s approval.  Additionally, changes to product design, or materials which affect form, fit, function, performance, quality, reliability, or safety shall not be implemented without written approval by Accurate Machining.

External providers are required to provide right of access by Accurate Machining’s management, Accurate Machining’s customers, and regulatory authorities to the applicable areas of facilities, and to all applicable documented information, at any level of the supply chain.

External providers are required to maintain all applicable records for a minimum retention period of 10 years.  Once the retention period has passed, hard copy records must be commercially shredded and electronic records must be deleted from active systems and electronic back-up storage.

Where Accurate Machining, or its customer, intends to perform verification at the external providers’ premises, Accurate Machining shall state the intended verification arrangements and method of product release in the purchasing information. The Supplier shall reserve the right of entry for Accurate Machining, or our customers, representative, and regulatory agency personnel, for access to any and all facilities where work is being performed against this purchase order.  To allow inspections, surveys, or system surveillance as part of verification of conformance to the requirements.  Supplier’s denial of access may result in disqualification of future procurement with Accurate Machining.

External providers are required to flow down to their external providers applicable requirements including Accurate Machining’s customer requirements.  This includes but not limited to all DPAS rating, DFARS requirements, NIST 800-171 as required, and the requirement of all material to be Domestically produced.

DFARS252.225-7009 RESTRICTION ON ACQUISITION OF CERTAIN ARTICLES CONTAINING

SPECIALTY METALS APPLIES

(Reference http://www.acq.osd.mil/dpap/dars/dfars/html/current/252225.htm)

DFARS 252.204-7012 SAFEGUARDING COVERED DEFENSE INFORMATION AND CYBER

INCIDENT REPORTING APPLIES

(Referencehttp://www.acq.osd.mil/dpap/dars/dfars/html/current/252204.htm)

DFARS 252.246-7007 CONTRACTOR COUNTERFEIT ELECTRONIC PART DETECTION AND

AVOIDANCE SYSTEM APPLIES (http://www.acq.osd.mil/dpap/dars/dfars/html/current/252246.htm)

DFARS 252.246-7008 SOURCES OF ELECTRONIC PARTS

(Reference http://www.acq.osd.mil/dpap/dars/dfars/html/current/252246.htm)

External providers that are sourcing raw metal for Accurate Machining, must provide Domestic DFARs compliant material, all 6061-T651 shall be AMS-4027, 7075-T7352 shall be AMS-QQ-A-367, and 7075-T7351 shall be AMS-QQ-A-250/12.  All raw metal purchases shall provide Certification of Compliance with actual results of physical and chemical test reports every time a shipment is made to Accurate Machining.  Material must be identified by heat lot number.  Test reports must be traceable to the material supplied. Suppliers shall provide evidence of compliance to Accurate Machining, including flow down to all sub-tier suppliers, with each shipment.

External providers are to provide test specimens for design approval, inspection/verification, investigation, or auditing when indicated in the purchasing information.  Annually, sourced metal shall be sent out for verification against the mill certification.  Even years shall be 6061, and odd years shall be 7075 material.

External providers are to ensure that persons are aware of their contribution to product or service conformity, capable, skilled, qualified, competent to perform such services and the importance of ethical behavior.

External providers are responsible to take Corrective Actions when Accurate Machining or Accurate Machining’s customers flow down corrective action requirements in cases where it is determined that external providers are responsible for the nonconformity.  Actions may be documented using Accurate Machining’s Corrective Action forms, Accurate Machining’s customer’s forms, or the supplier’s forms, as appropriate.  External providers are required to respond to Corrective Action requests in a timely manner.  Corrective Actions must demonstrate root cause analysis, action implementation, and verification of action effectiveness.  Should actions prove ineffective, alternate actions may be requested or external providers may be disqualified from further use.

External providers of calibration services or calibrated equipment are required to provide certificates of calibration bearing traceability to the National Institute of Standards and Technology (NIST) or other national or international standard, reporting “as found” information and “adjustment” information, as applicable, and measurement data.

External providers of chemicals are required to provide certificates of analysis bearing traceability based on lot numbers, Safety Data Sheets with each delivery that are electronically submitted and have the appropriate hazardous warnings on the outside of the container.  Items with limited shelf life shall be marked on the item, package or container with the manufactured date, storage temperature, special handling requirements, and expiration date of the items. Items that are liquid shall be labeled in compliance with all applicable OSHA and EPA regulations, The Code of Federal Regulations (CFR) and the Clean Air Act, Section 611. All identification markings shall be placed in accordance with applicable specification.

Accurate Machining is an ITAR (International Traffic in Arms Regulations) Registered company.  It is our duty to ensure that our customer’s ITAR-controlled items or technical data are protected.  Approved suppliers are required to formally agree to the following:

• External provider agrees to have controls in place that prevent individuals from ITAR proscribed countries (see below) from coming in contact with Accurate Machining provided technical data and items.
• External provider agrees to return or shred all technical documents provided by Accurate Machining.
• External provider agrees to return all items and parts, damaged, un-usable or otherwise provided by Accurate Machining.
• Non-ITAR registered suppliers who receive technical data or items from Accurate Machining must confirm that they do not engage in the export of time or technical date to proscribed countries (see below).

ITAR List of Proscribed Countries:

Afghanistan            Angola              Belarus             Burma               China (PRC)

Cyprus                    Cuba                Haiti                  Iran                   Iraq

Liberia                    Libya                Nigeria              North Korea      Rwanda

Somalia                  Sudan               Syria                 Vietnam            Yemen

Zimbabwe

Pertaining to external providers of special processes (e.g., conformal coating, welding, heat treating, plating, finishing, etc.):

Accurate Machining requires external providers of special processes to provide evidence of process validation according to the requirements of ISO 9001:2015, 8.5.1 f or AS9100D 8.5.1.2. Evidence of validation could include a third-party registration to ISO 9001, AS9100, or similar standard that requires validation of special processes.  Alternatively, external providers of special processes may provide a letter or other evidence of process validation (e.g., from aerospace customers).  A written response attached to this letter may also be acceptable; please sign, date, and return, if desired.

Evidence of process validation must demonstrate conformity to the following requirements (excerpted from AS9100D 8.5.1.2):

The organization shall validate any processes for production and service provision where the resulting output cannot be verified by subsequent monitoring or measurement, and as a consequence, deficiencies become apparent only after the product is in use or the service has been delivered.

Validation shall demonstrate the ability of these processes to achieve planned results.

The organization shall establish arrangements for these processes including, as applicable:

• • a) definition of criteria for review and approval of the processes;
  • b) determination of conditions to maintain the approval;
  • c) approval of facilities and equipment;
  • d) qualification of persons;
  • e) use of specific methods and procedures for implementation and monitoring the processes;
  • f) requirements for documented information (records) to be retained for 10 years.

Unless Accurate Machining calls out specific packaging, all orders are to be shipped in clean, dry, and protective wrappings that will afford adequate protection against corrosion, deterioration, and physical damage during shipments.  Containers (Boxes, Pallets, or Bags) shall be shipped with documentation; certifications, PO number, test data, and inspection data clearly marked.

Workmanship of material shipped against any and all Purchase Orders shall be free of dents, gouge, nicks, burrs, scratches, sharp edges, foreign object debris, and in cases of plating spotty, streaked, cloudy or any other evidence of poor workmanship standards that shall create a condition that renders said part unsatisfactory for its intended use.

The above terms and requirements pertain to each Accurate Machining’s Purchase Order and purchasing contract; acknowledgement and acceptance of the above terms and requirements will be evidenced by external providers’ acceptance of Accurate Machining’s Purchase Orders or purchasing contracts.

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