Terms & Conditions / Purchase Order Requirements / F067 v-B

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.  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.  At a minimum, the quality system shall be in compliance with the requirements of ISO 9000, AS 9100, AS9120 or other widely accepted industry standard and as specified in this document or as specifically cited on actual purchase order documents.

6) Measuring and Test Equipment

a) The Seller shall maintain a documented system for the calibration and maintenance of inspection equipment that meets the requirements of ISO 10012-1, or other widely accepted industry standard.  In all cases calibrated equipment shall be traceable to NIST standards. Seller’s calibration systems is subject to review at all time 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) All inspection records shall be maintained on file for a period of not less than 15 years and shall be available for review upon request of Buyer or Buyers customer.

10) Non-Conforming Material Control

a) The Seller shall establish a system for controlling nonconforming material, notifying Buyer of nonconforming materials supplied to them, and processing Buyer’s requests for corrective action (responses due in 30 days).

11) Corrective Actions

a) The Seller’s quality system shall provide means for ready detection and prevention of discrepancies.

b) The Seller shall respond to Buyers request for material conformance inquiries, for any materials, for the purpose of determining acceptability of manufacturing to required specifications that are initiated either by Buyer or Buyers customers.

c) Responses to corrective action requests on defective or potentially defective products shall be supplied by Seller within the specified days for receipt (30 days), to the Buyer representative responsible for the disposition of nonconforming material issues.

d) 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.

12) Packaging and Delivery Instructions

a) The Seller shall package and ship Contract Products in accordance with PO requirements.  In the absence of specific shipping requirements, materials shall be packaged in accordance with accepted commercial packaging standards.  Materials shall be packaged and preserved to prevent damage in shipment or introduction of 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 full test reports including:  manufacturing certificate of conformity, chemical and physical reports, raw material certifications and any other relevant documentation necessary to ensure compliance to manufactured 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 a period of 15 years from date of shipment to the Buyer, unless otherwise noted on the purchase Order.

14) Inspection Record Retention

a) 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.  Records shall be maintained for a minimum of 15 years.

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.