Appendix 1 – Supplementary Purchase Order Requirements for our Aerospace Suppliers
1. CONTRACT/PURCHASE ORDER CONTRACT CLAUSES
The clauses provided in 1.1, or substantially equivalent language, should be included in all contracts/purchase orders for EEE parts entered into by our organization. They are intended to supplement—not duplicate or replace—requirements contained in other quality standards invoked upon the supplier (e.g., ISO 9001, AS9120) or purchase contracts with our organization.
1.1 Guarantee of EEE Part(s)
a. SUPPLIER shall endeavor to first purchase parts directly from original component manufacturers (OCMs), OCM authorized (franchised) distributors, or authorized aftermarket manufacturers or from suppliers who obtain such parts exclusively from the OCM or their authorized sources with OCM traceability. SUPPLIER shall ensure that only new and verified non-counterfeit EEE parts are delivered to our ORGANIZATION.
b. Authorized (franchised) distributor / SUPPLIER covenants, warrants, and represents that it has effective contractual agreements in place with each manufacturer whose EEE part(s) it is procuring to sell to our ORGANIZATION.
1.2 Authorized (Franchised) Distributor / SUPPLIER shall:
a. Only ship EEE parts to our ORGANIZATION that have been procured directly from the manufacturer.
b. Not ship EEE parts to our ORGANIZATION that have been procured from any other source without prior written consent from our ORGANIZATION.
c. Be considered an unapproved independent distributor for EEE parts procured from other sources.
Failure to obtain our ORGANIZATION’S prior written approval constitutes a material breach under the terms of this agreement.
Authorized (franchised) distributor / SUPPLIER will fully indemnify our ORGANIZATION from any and all claims, losses, and damages that result from said breach. Our ORGANIZATION reserves the right to reject any and all requests for approval and require additional verification and testing of EEE parts.”
1.3 Supply Chain Traceability
SUPPLIER shall maintain a method of item traceability that ensures tracking of the supply chain back to the manufacturer of all electrical, electronic, and electromechanical (EEE) parts being delivered per this order.
This traceability method shall clearly identify the name and location of all supply chain intermediaries from the manufacturer to the direct source of the EEE part for our ORGANIZATION and shall include the manufacturer’s batch identification for the item(s) such as date codes, lot codes, serializations, or other batch identifications.
This traceability requirement applies to new purchases of material, material in inventory and material transferred from SUPPLIER’S other business units. If this traceability is unavailable or cannot be provided, our ORGANIZATION shall approve this exception in writing at the time of purchase order.
1.4 Test and Inspection Requirements
SUPPLIER shall establish and implement test and inspection activities necessary to assure the verification of purchased EEE part.
SUPPLIER shall comply with the inspection and test requirements of AS6171, to the extent specified by the our ORGANIZATION.
SUPPLIER shall document and provide upon request all available tests and inspections results which were performed to assess and mitigate the risk of distributing suspect counterfeit or counterfeit EEE parts. Accept/reject criteria and sampling criteria shall be clearly defined or approved by our ORGANIZATION.
Tests and inspections shall be performed by persons that have been trained in the EEE part verification techniques that they perform and are formally certified based on demonstrated competency. SUPPLIER shall maintain records of training and methods used to demonstrate competency. Our ORGANIZATION shall inquire as to SUPPLIER’S inspection qualifications prior to placing an order.
1.5 Certificate of Conformance (CoC)
SUPPLIER shall approve, retain, and provide copies of electrical, electronic, and electromechanical (EEE) Manufacturer Certificates of Conformance (CoC) when available. In no case shall the supplier alter the manufacturer’s certificate.
Where manufacturer CoCs are not available, our ORGANIZATION shall require SUPPLIER to provide the following signed and dated CoC:
• SUPPLIER hereby attests that the parts provided under this purchase order are unused, unaltered and authentic and have not been salvaged, reclaimed, refurbished or pulled from any electronic application, or previously rejected for any reason. This statement is based on rigorous supplier selection practices, supplier assurance practices, and tests and inspections of the specific parts supplied that are designed to prevent the supply of suspect counterfeit or counterfeit EEE parts.
• SUPPLIER’S certificates shall state that the EEE parts have been handled in accordance with the requirements of this document and include as a minimum the following:
a. Manufacturer’s name;
b. Part number(s);
c. Our ORGANIZATION’S name and address;
d. Name and address of the customer;
e. Quantity of the parts in the shipment;
f. Lot date code, as applicable;
g. Latest re-inspection date, if applicable;
h. Certification that the shipment is part of the shipment covered by the manufacturer’s documentation (when manufacturer’s documentation is available/provided);
i. Signature and date of transaction; an authorized signatory assigned by a corporate officer with responsibility for the product quality and reliability or their documented designee.
SUPPLIER shall maintain the EEE part shipment traceability, including certificates of conformance, for a minimum of 10 years after the date of the last shipment from each lot.
NOTE: The document may include information such as manufacturer, distributor, quantity, lot and/or date code, inspection date, specifications, etc. Certificates of Conformance can vary. It may certify conformance to a MIL-SPEC or the manufacturers’ specification, but not certify conformance to a specific customer’s order. This definition does not meet the requirements of FAR 52.246-15.
1.6 Quality Management System
SUPPLIER shall maintain a quality management system such as ISO 9001, IDEA-QMS-9090, ANSI/ASQC E4, ASME NQA-1, AS9100, AS9120, AS9003, and product- or process-specific quality standards such as AS5553.. Suppliers that obtain certification/registration and subsequently change certification bodies (CBs), lose registration status, or are put on notice of losing registration status, shall notify our ORGANIZATION within 3 days of receiving such notice from its Certification Body.
1.7 Product Impoundment and Financial Responsibility
a. Counterfeit EEE parts have no value and if it is later determined that counterfeit EEE parts were received by the organization from the supplier, then any contract terms limiting the supplier’s liabilities and/or warranties shall be deemed unenforceable. SUPPLIER and our ORGANIZATION agree that counterfeit EEE parts have no value and any contract documents between supplier and organization establishing a transaction involving counterfeit EEE parts, especially those that address limiting the supplier’s liabilities or warranties, shall be declared null and void.
b. Supplier has the right to agree with or dispute the organization’s findings. SUPPLIER and our ORGANIZATION hereby agree that if the OCM determines the suspect counterfeit EEE parts are authentic, then the decision is “final” SUPPLIER and our ORGANIZATION hereby agree that if our ORGANIZATION or a testing laboratory chosen by our ORGANIZATION determines that the EEE parts supplied are suspect counterfeit or counterfeit, then SUPPLIER has the right to:
(1) agree with our ORGANIZATION’S findings and the transaction will be voided; or
(2) dispute with our ORGANIZATION’S findings by contracting with an our ORGANIZATION approved and SUPPLIER recognized test laboratory (hereafter referred to as “lab”) for further test verification.
c. Product confiscation/destruction. If SUPPLIER accepts our ORGANIZATION’S findings and chooses to immediately void the transaction, the suspect counterfeit EEE parts will not be returned to SUPPLIER unless and/or until an independent lab agreed to by both SUPPLIER and our ORGANIZATION determines that the EEE parts are not suspect counterfeit or counterfeit. Suspect counterfeit or counterfeit EEE parts should be offered to the AUTHORITY HAVING JURISDICTION or the OCM for investigation, with a written accept or decline response from those activities within 90 days.
Our ORGANIZATION shall retain possession of the suspect counterfeit EEE parts for a time period at least as long as the applicable statute of limitations under the appropriate authority(ies) having jurisdiction following the date upon which SUPPLIER received notification from our ORGANIZATION that it was choosing to immediately void the transaction between them.
If SUPPLIER exercises its right to have an independent lab determine whether the suspect counterfeit EEE parts are counterfeit and the lab verifies the findings that the subject EEE parts are either suspect counterfeit or counterfeit, then SUPPLIER must issue an immediate refund of all monies paid by our ORGANIZATION.
If the suspect counterfeit parts are determined to be suspect counterfeit or counterfeit by the independent test lab, then the SUPPLIER of those parts shall be required to pay for all charges issued by the testing lab. If, however, the suspect counterfeit EEE parts are determined not to be suspect counterfeit or counterfeit, then the our ORGANIZATION shall be required to pay all of the charges issued by the test lab. Our ORGANIZATION and SUPPLIER agree that whether or not SUPPLIER refunds all monies paid by our ORGANIZATION, our ORGANIZATION shall have the absolute right to reacquire possession of the subject EEE parts from the lab in order to prevent the subject EEE parts from being offered for sale through any channel of distribution.
In the event that SUPPLIER pursues its supplier, either in civil or criminal proceedings, SUPPLIER shall have the right upon request to receive and use a mutually agreeable sample quantity of the parts sold for the purpose of pursuing its remedies. Upon completion of testing, samples will be returned to SUPPLIER who will then return them to our ORGANIZATION.
If suspect counterfeit EEE parts are accepted by AUTHORITY HAVING JURISDICTION or the OCM, then destruction of evidence is only allowed once approval from those bodies has been granted. After destruction approval has been granted, then our ORGANIZATION shall have the absolute right to destroy the suspect counterfeit EEE parts. If declined by both of these bodies or if there is no response received within 90 days, then our ORGANIZATION and SUPPLIER agree that tour ORGANIZATION shall have the absolute right to destroy the suspect counterfeit EEE parts after expiration of the applicable statute of limitations under the appropriate authority(ies) having jurisdiction.
Notwithstanding the above, if our ORGANIZATION and SUPPLIER agree in writing that the parts can be immediately destroyed, the parts will be destroyed per their agreement so long as all civil or criminal actions, in which the suspect counterfeit EEE parts are the subject of the action, have been completed.
If it is determined that counterfeit parts are supplied by supplier, the supplier may not only be responsible for cost of the parts but could be responsible for all cost(s) resulting from that purchase order.