Supplier Quality Clauses

Machining / Fabrication suppliers must furnish inspection report, certificate of conformance, and as applicable material and processing certifications for the parts they submit.

When requested on Northeast Tool purchase order, a documented first article inspection report shall be submitted to Northeast Tool Quality Department. The supplier must obtain written approval from Northeast Tool Quality Department on first article (F/A) part before commencing with production of parts. When production is begun without written F/A inspection approval from Quality Department, the supplier assumes all financial responsibility for replacement, rework, and material costs. AS9102 F/A form must be used when stipulated on P.O. Supplier must submit F/A part and inspection report to Northeast Tool Quality Department.

Any delay in shipment for any reason shall be conveyed to Northeast Tool as soon as the delay is known by the supplier.

Any change to the contract requirements by the supplier must be approved by Northeast Tool in writing.

All information in the contract must be held in confidence by the supplier and no third-party request for information will be authorized unless instructed in writing by Northeast Tool representative. All documents to be retained for 10-year minimum unless extended retention is required by Northeast Tool quality flow-down.

In addition to our right of access, the supplier agrees to right of access for our customers, or regulatory agencies to all facilities and records in the performance of this contract.

Manufacturers or machining shops must have a quality system in compliance to AS9003 Current Revision, AS9100 Current Revision, or ISO9001 Current Revision as applicable by our customer.

Subcontractors are required to notify Northeast Tool quality prior of any changes of manufacturing facility location. Northeast Tool will determine prior to the transfer if subcontractor may perform the transfer of work.

Supplier must notify Northeast Tool of any nonconformances relative to Northeast Tool product (this includes nicks, dings, gouges, lost parts, etc.) within 24 hours of identification of the nonconformity and arrangements must be made.

Northeast Tool, Northeast Tool’s customer, and the Government (regardless of whether the Government is Northeast Tool’s direct customer) may at any time inspect Seller’s and Seller’s suppliers’ facilities which will or may be used in the performance of this PO and may inspect and test all material and workmanship involved in the performance of this PO at any time and place before, during, or after manufacture or completion. No such inspection or test shall in any way relieve Seller of its obligations to furnish all required goods, materials, and services in strict accordance with the terms and conditions of this PO. If inspection and test is made on the premises of Seller or any of its suppliers, Seller shall furnish, or cause to be furnished, without additional charges, all reasonable facilities and assistance for safety and convenience of the inspectors in the performance of their duties. All inspections and tests shall be performed in such a manner as not to delay the work unduly. All goods are subject to final inspection and acceptance at Northeast Tool’s plant (or at any other location specified in writing by Northeast Tool).

Seller shall provide and maintain an inspection and process control system acceptable to Northeast Tool covering the goods hereunder. Records of all inspection work by Seller shall be kept complete and available to Northeast Tool and its customers during the performance of this PO and for such longer periods as may be specified in the PO.

Supplier shall flow down to its sub-tier suppliers the applicable requirements in the purchasing documents, including but not limited to key characteristics, DFARS 252.204-7012 Safeguarding Covered Defense Information and Cyber Incident Reporting, Defense Priority Ratings (DPAS), International Traffic in Arms Regulations (ITAR), Foreign Object Debris/Damage requirements (FOD), etc.

Requirements for the supplier to comply with Executive Order 13224. Supplier shall not engage in any transaction of any type with persons or businesses or organizations who commit, threaten to commit or support terrorism.

Supplier agrees to return parts to Northeast Tool using the same part packaging and protection methods in which the parts were received by supplier. This includes parts that are protected with multiple layers of protective wrap. I.e. Multiple layers of bubble wrap will be used upon returning parts to Northeast Tool if this is the condition in which the parts were received by supplier. Small parts must be segregated and not stacked (egg crates are acceptable), parts cannot be packaged in a manner where parts touch or rub together during shipment. Sharp edges and threads must be protected from damage. Northeast Tool will not accept parts which have nicks, dings, gouges, etc. as conforming product.

All Northeast Tool Machine suppliers are monitored for their Quality and Delivery performance. Suppliers having a Quality rating of less than 85% or a delivery rating of less than 85%, will be re-evaluated and potentially issued corrective action response. If after the response there continues to be Quality and delivery ratings below the previously mentioned goals, there is the possibility of disqualification from the Northeast Tool Machine approved supplier listing.

Supplier agrees to be aware that their contribution to our products and / or services have a direct impact to the overall conformity and safety of our products and / or services.

As a supplier, hereafter referred to as Seller, Buyer’s expectation is that you as Seller, conduct your business in a fair, impartial and ethical manner- upholding “ethical business standards”. Buyer further expects, should Seller have cause and/or reason to believe that Buyer and/or any employee/agent of Buyer has behaved improperly or handled anything unethically under this contract, Seller, if warranted, is requested to report such behavior to the appropriate person, up to and including the CEO of Buyer.

Supplier shall prevent and mitigate the use of counterfeit parts and / or processing materials. Supplier shall comply with the requirements of AS6174 for non-electronic product, including full material traceability to original manufacturer per Clause D1.1.a.

Notice of Escapement (NOE) — Supplier shall inform Northeast Tool Machine within 24 hours of discovery of suspect nonconforming product having been shipped regardless of destination.