Terms & Conditions / Purchase Order Requirements / F067 Rev D

1) Scope

a) This document establishes the standard purchasing terms and conditions that shall apply to all “purchase orders” issued by Thompson Precision Inc.

2) Purpose

a) The requirements specified in this document are designed to ensure that all materials procured by Thompson Precision Inc. from its suppliers meet the requirements relevant to quality, packaging and delivery.

3) Definitions

a) The term “PO” shall mean the purchase order, contract or subcontract agreement and revisions thereto, incorporating by reference these conditions and instructions and all applicable data incorporated by reference thereto.
b) The term “Contract Products” shall mean goods, technical data, drawings, services or other items constituting the subject matter of Purchase Orders, which are to be furnished by the Seller.
c) The term “Buyer” shall mean Thompson Precision, Inc. or its duly authorized representative(s).
d) The term “Seller” shall mean the person, firm, corporation by whom the Contract Products described in Purchase Orders are to be furnished.

4) Applicability

a) These general terms and conditions apply to all issued purchase orders and contract agreements, unless specifically excluded or amended on the actual purchase order document. As appropriate, Seller shall flow PO clauses down to sub-tier suppliers.

5) Quality System

a) Seller shall provide and maintain a documented quality system, acceptable to the Buyer and Buyers customers. Unless specified in the Purchase Order, a quality system in compliance with the requirements of ISO 9000, AS 9100, AS9120 or other widely accepted industry standard is preferred. The system shall assure that all supplies submitted to Buyer conform to PO requirements. The Seller shall perform or have performed the inspections and tests required to substantiate product conformance to drawing, specification, and PO requirements.

6) Measuring and Test Equipment

a) The Seller shall maintain a documented system for the calibration and maintenance of inspection equipment, preferably meeting the requirements of ISO 10012-1, or other widely accepted industry standard. In all cases calibrated equipment shall be traceable to international or national measurement standards. Seller’s calibration system is subject to review by TPI’s procurement/Quality Assurance.
b) Calibration records for all equipment shall be maintained on file and shall be available for review by the Buyer or Buyers customer upon request.

7) Drawing Control

a) The Seller shall control drawings, specifications and work instructions to the extent necessary to assure that only documents of the revision contractually specified are used.

8) Manufacturing

a) The Seller shall utilize written instructions for all manufacturing and inspection operations.
b) The Seller may use sampling plans, providing the sampling plans are in accordance with existing military, government or commercially accepted standards or have been submitted to, in writing, the Buyer.
c) All Contract Products supplied to Buyer shall be manufactured to the latest engineering revisions, unless specified otherwise on the actual purchase order document for all referenced part numbers.

9) Inspection

a) The Seller shall establish receiving inspection procedures with adequate instructions to assure materials received from outside sources are inspected to meet PO requirements and also ensure authenticity.
b) The Seller shall segregate inspected acceptable material from uninspected materials and shall maintain product identification and traceability at all processing stages through shipment.
c) The Seller shall perform final inspection on all purchase orders, to the extent necessary, to ensure that the requirements of this document and/or specified on purchase order documents have been adhered to.
d) The Seller shall maintain records of all inspections and tests and such records shall contain, at a minimum, the following information (as applicable); material inspector, inspection specification/revision, sampling plan used, material batch/lot number. Nature of observations: number of observations; number of discrepancies; quantity accepted; quantity rejected; corrective actions taken. All inspection records shall be maintained on file and shall be available for review upon request of Buyer or Buyers customer for the term defined in the Record Retention section below.

10) Non-Conforming Product Control

a) The Seller shall establish a system for controlling nonconforming product. The Seller shall not deliver nonconforming product without written buyer approval. The Seller shall notify the buyer if it is determined that previously delivered product is nonconforming.
b) The Seller shall provide information related to nonconformance details, cause, and containment as requested by Buyer.

11) Corrective Actions

a) The Seller’s quality system shall provide means for ready detection and prevention of discrepancies.
b) The Seller shall undertake any necessary actions to correct and/or prevent the occurrence of nonconforming materials and shall be receptive to Buyer auditing to ensure that said actions have been enacted and are effective.
c) The Seller shall respond to corrective action requests related to nonconforming product and/or supplier performance within the specified time when requested by the Buyer.

12) Packaging and Delivery Instructions

a) The Seller shall package and ship product to prevent damage. Unless specific requirements are stated in the purchase order, product shall be packaged in accordance with accepted commercial packaging standards for product preservation and prevention of Foreign Object Debris (FOD). Boxes, crates, and other shipping containers will be of sufficient strength to prevent breakage in transit.
b) The Seller shall provide adequate inspection control of the preservation, packaging, and shipping process to assure all products are complete and all required documentation has been provided.

13) Supplied Paperwork

a) All ordered products are to be supplied with certificate of conformity and full test reports including, as applicable: chemical and physical reports, raw material certifications and any other relevant documentation necessary to ensure compliance to specifications and/or are necessary to ensure full unbroken traceability to the OEM.
b) Copies of all supplied documentation shall be maintained on file with the Supplier for the term defined in the Record Retention section below.

14) Record Retention

a) Records shall be maintained for a minimum of 15 years from the date of shipment, unless otherwise specified on the purchase Order.

15) Right of Access

a) The Seller shall allow Thompson Precision Inc., or representatives of any TPI customer using Seller’s products, Government, and regulatory authorities access to the applicable areas of all facilities for the purposes of verifying the Sellers quality system, source Inspection, inspection records and general operations. The Seller shall allow access to its facilities during normal business hours upon a minimum of 48 hours prior notice.

16) Flow Down

a) When stated on the customer contract, additional documents may be used to further define scope and requirements.

17) ITAR

a) Seller must confirm it and its suppliers are not currently debarred or suspended pursuant to any of the statutes listed at ITAR 120.27 or from contracting any agency of the U.S. Government, and meet all ITAR requirements.

VERIFY REVISION BEFORE USE