Martin & Rush Machining Inc. dba. Phoenix Precision Machining Terms and Conditions

Purpose:

This document defines the minimum quality requirements for Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop’s approved suppliers necessary to satisfy all customer requirements.

Scope:

Section A: (Section A General Quality Requirements) These terms and conditions apply to all suppliers of products, process and manufacturing (raw materials, machine component parts, calibration and special processes) determined by Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop to directly affect the quality of products we supply to all of our customers. Section A is referenced on www.PhoenixPrecisionMachining.com .

Section B: (Section B Aerospace Quality Requirements) These terms and conditions include specific Aerospace quality flow down requirements that shall be followed for all suppliers that provide process and manufacturing for aerospace components as described in the purchase order. Section B will be referenced on www.PhoenixPrecisionMachining.com .

Section C: (Section C Raw Material and (OSP) Outside Processes Quality Requirements) These terms and conditions include quality requirements for all raw materials and (OSP) outside processes suppliers, Section C will be referenced on www.PhoenixPrecisionMachining.com .

Section A – General Quality Requirements for All Suppliers

1.0 Purpose:

Section A describes the minimum quality requirements for Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop’s approved suppliers necessary to satisfy our customer requirements.

2.0 Scope:

By accepting our purchase order, it is understood that your organization agrees to meet the following requirements.

General Requirements:

3.0 Standards of Business Conduct:

Martin & Rush Machining Inc. dba Phoenix Precision Machining shop is committed to conducting its business with the highest standards of ethics and in accordance with the laws of the United States in which it operates, all who conduct business with Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop are expected to operate in the same manner with the highest standards of integrity.

3.1 Compliance with Statutes, Laws, and Regulations:

Supplier shall comply with all applicable Federal, State, and local laws, Government orders, and regulations in performing this purchase order.

3.2 Right of Access:

Martin & Rush Machining Inc. dba Phoenix Precision Machining shop, its customers and/or any regulatory authority shall have the right of access to the supplier’s facility and all applicable records for parts/services purchased by Martin & Rush Machining Inc. dba Phoenix Precision Machining shop.  We reserve the right to perform an audit or inspection at the supplier’s facility.

3.3 Order Acknowledgement:

Supplier shall provide Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop and order acknowledgement that includes details of the order, such as the item(s) purchased, the quantity, the price, the delivery date. It serves as a formal acknowledgment that the seller has received the purchase order and intends to fulfill it according to the terms and conditions specified. Order acknowledgements are accepted electronically via email on purchase order to purchasing agent.

3.4 Notification of Change:

Suppliers agree to notify Martin & Rush Machining Inc. dba Phoenix Precision Machining shop of all changes in regards to changes in products, services, suppliers or process definition affecting form, fit or function and where required obtain approval prior to delivery.

Suppliers agree to notify Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop of changes in business climate such as changes in ownership, company name, location and any activity that may impact the quality or delivery of purchased product.

Suppliers initially approved for use via Certification (ISO, AS9100, 17025, Nadcap, RoHs, Reach etc.) suppliers providing Nadcap certified services must provide current documentation of these services and shall notify Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop of certification changes such as process, scope, revision and audit failures.

3.5 Right of Approval:

Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop reserves the right to review and approve the Supplier Quality Management System.

Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop reserves the right of final approval of product, procedures, processes, and equipment.

3.6 Flow Down Requirements:

Information contained herein that is pertinent and applicable to the supplier must be flowed down to sub-tier suppliers.  Suppliers shall maintain on file and make available a list of approved sub-tier suppliers to Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop, its customers and regulatory authorities.

3.7 Prohibited Out Sourcing:

Out sourcing work to another source is prohibited unless defined within the purchase order scope of work to be performed or is pre-approved by Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop.  Work must not be sub-contracted without prior written approval, especially special processes.

3.8 Product Identification & Traceability:

To ensure product identification and traceability, by Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop requires material certificates, certificates of conformity, Key Characteristics, CPK, FAI and /or supporting documentation from its suppliers as is appropriate.  These requirements will be specified on the purchase order.  Supplier agrees to maintain records of complete traceability from the original manufacturer.

3.9 Receiving

Suppliers shall perform inspection activities to ensure that purchased products meets purchased requirements. Receiving Inspections (Of Supplier products/ Services / Documents).

 4.0 Packaging:

Supplier shall provide packaging in accordance with the best commercial packing methods, to protect the product from damage and for safety in handling during the shipping process or, per specific instructions as noted on the purchase order.

Suppliers shall assure that all product are package in a manner and with materials necessary to prevent deterioration, corrosion, or damage.  Requirements for packaging shall consider conditions affecting the product while at the supplier’s plant and transportation to Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop. Supplier shall provide sufficient packaging for product sensitive to handling damage.

4.1 Foreign Object Debris (FOD):

Supplier shall take necessary steps during processing and packaging to prevent addition of any foreign object debris or contaminates.  Maintenance of the work area and control of tools, parts, and material shall preclude the risk of FOD incidents. The supplier shall document and investigate all FOD incidents assuring elimination of the root cause.  Supplier shall have a F.O.D. prevention and training program adequate enough to ensure compliance.

4.2 Documentation Corrections:

The use of any method that causes the original data of documents to be obliterated and unreadable (i.e., the use of correction fluids, correction tape, or write-overs) to correct, modify or otherwise alter the data on any certifications or test reports is prohibited.  Corrections may be made on records providing it is clearly obvious that a correction was made and it is signed (initialed) or stamped and dated by an authorized individual.

 4.3 Non-Conforming Products / Corrective Actions:  

Supplier shall notify Martin & Rush Machining Inc. dba Phoenix Precision Machining of non-conforming product within 24 hours of discover of such non-conformity, regardless of whether it be prior, during, or after receipt of the product.   Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop may require a Corrective Action Report from its suppliers when nonconforming material/product/service is discovered.  Specific actions may be implemented where timely and/or effective corrective actions to a supplier issue not achieved.  This action may include, but are not limited to, removal of the supplier from the approved supplier list.

4.4 Process Specifications:

The Supplier Quality system shall assure that the latest applicable drawing, specifications, and quality requirements are compatible with the purchase order and are available and in use by the Supplier’s manufacturing and inspection area.  Specifications utilized shall be to the latest revision in effect on the date of the purchase order, unless otherwise specified.

4.5 Confidential Property:

Drawings and any other confidential property received by Supplier shall be controlled as regulated by the Export Administration Regulations (EAR) or Director of trade Controls (DOTC) and International in Arms Regulations (ITAR).

4.6 Government Orders:

Supplier agrees that receipt of any purchase order noting it is for a US Government Contract and associated priority rating shall be executed in accordance with the defense Priority and Allocation System Program.

4.7 Calibration Service Supplier Requirements:

All Supplier providing calibration services must be certified to ISO17025 (or equivalent) and be within the scope of accreditation per devices calibrated.  All calibration certificates must identify standards used and must be traceable to NIST (National Institute of Standards Technology).

4.8 Configuration Management:

All Supplier shall have a process control of product, and services in order to ensure identification and control of attributes throughout the product lifecycle; product identity, traceability, control of changes and, revision control.

4.9 Awareness: Supplier shall ensure that their employees are aware of their contributions to product or service conformity, product safety, and the importance of ethical behavior.

Section B – Aerospace Specific Quality Requirements:

1.0 Purpose:

Section B describes the specific quality requirements for Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop’s approved suppliers necessary to satisfy aerospace requirements.

2.0 Scope:

By accepting Martin & Rush Machining Inc. dba Phoenix Precision Machining purchase order, it is understood that your organization agrees to meet the AS9100 requirements whenever Section B is specified on a Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop purchase order.

These terms and conditions apply to all suppliers of process (special processes) as determined by Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop or its aerospace customer(s) to directly affect the quality of products we supply to our aerospace customers.

3.0 Requirements for Special Processors:

When special processes are specified by the drawing or purchase order, special processes must be performed by sources approved by Martin & Rush Machining Inc. dba Phoenix Precision Machining Shop or customer requirements. And may be required to be NADCAP, RoHs & REACH certified by an accredited certification body. Suppliers providing special processes include all plating processes, anodizing, passivation, NDT, liquid penetrant, magnetic particle inspections and heat treating.

All special processes required by this purchase order must be performed by qualified personnel.

Suppliers must process and handle and package each lot separately when processing more than one lot.  Documentation and control identification must be able to provide traceability to the supplier’s records.

3.1 Process Freeze:

Supplier are to adhere to this clause as defined on the purchase order.  For this purpose of this clause, a process is defined as any procedure, system or practice used during manufacture or production of a deliverable item (i.e. machining, de-burring, heat treating, soldering, cleaning, finishing, etc.) Examples of process changes are follows, but not limited to:

• Change in inspection and/or testing methods.
• Changes in product or processing of components used in the manufacture of the end item
• Including components manufactured by the Supplier or sub-tier Supplier.
• Change of sub-tier Suppliers
• Production from new or modified tools, dies, molds, including replacement (excluding perishable tools).
• Moving work from one production facility to another production facility, including facility moves of sub-tier suppliers.
• Changes in cleaning processes.
• Changes in deburring processes, including instructions, tooling and materials.
• Changes in Heat Treating; Equipment, Profiles, or Atmospheres.
• Changes in materials used in production, including materials consumed and not part of the Bill of Materials.
• Examples of process changes are as follows, but not limited to: procedure changes including routers, work instructions.  Including; Sequence of an operation, Method of an operation, Adding or deleting an operation.
• Rework, refurbishment or replacement of any portion of the tooling.

3.2 Counterfeit Policy:

Fraudulent/Counterfeit Parts – Suppliers shall have an effective Counterfeit/Fraudulent Parts Prevention Program in accordance with AS9100. Supplier shall prevent the use and shipment of counterfeit and suspect counterfeit parts.

3.3 U.S.  Government Contract:

Supplier of products, material, processes, or services where this 3.3 quality clause is referenced on purchase order are responsible to comply with all applicable requirements defined within the current latest version. Under U.S, Government Contracts and to flow down this requirement to any sub-tier supplier.  The requirement can be found on

https://www.govinfo.gov/content/pkg/CFR-2012-title15-vol2/pdf/CFR-2012-title15-vol2-part700.pdf

3.4 Record Retention:

Supplier shall maintain on file and make available to (upon request) & Rush Machining Inc. dba Phoenix Precision Machining Shop, its customers and/or regulatory authority, all quality data/records such as certificates of material and/or processes, acceptance test reports, inspection records, control plans and other applicable quality control data for a minimum of 20 years from completion of purchase order that directly affects quality of products we supply to all of our customers.

Upon the completion of recordkeeping obligations, the Supplier shall destroy or return to Martin & Rush Machining Inc. dba. Phoenix precision Machining Shop all technical data and all controlled goods & items as instructed by Martin & Rush Machining Inc. dba. Phoenix Precision Machining Shop.

3.5 Insurance Coverage:

Supplier agrees to secure and maintain the following minimum insurance coverage and limits:

• Workers’ Compensation Insurance, must be able to provide evidence for Workers Compensation Insurance.
• Commercial General Liability Insurance and Umbrella Liability Insurance, including Premises Liability and Contractual Liability, in which the limit of liability for property damage and bodily injuries, including accidental death shall be at a minimum, a combined single limit of $1,000,000 for any one occurrence.

All such insurance shall be issued by companies authorized or permitted to do business under the laws of the State or jurisdiction in which all or part of the Services are performed, and must have an AM Best financial rating of A- or better or an equivalent rating as produced by another rating agency.

In no event will the Supplier’s liability be limited to the extent of the minimum limits of the insurance required herein.

Section C – Raw Material and (OSP) Outside Processes Supplier Requirements

1.0 Purpose:

Section C describes the minimum quality requirements for all raw material and (OSP) outside processes distributors.

2.0 Scope:

By accepting our purchase order, it is understood that your organization agrees to meet the following supplier requirements when supplying raw material and (OSP) outside processes to Martin & Rush Machining Inc. dba. Phoenix Precision Machining Shop.

 3.0 Record Retention:

Distributors must keep the OEM certification on file for a minimum of 10 years from the OEM shipment.  The Distributor’s record retention system should be readily accessible by Martin & Rush Machining Inc. dba. Phoenix Precision Machining Shop, its customers and/or regulatory authority, those records must be available within 24-48 hours.

3.1 Conflict Minerals:

Certain regions, where several minerals used in the electronics industry originate, have been identified as “conflict” regions.  The Democratic Republic of the Congo and adjoining countries are identified as conflict regions due to reported human rights abuses, environmental concerns and actions against citizens.  Certain minerals that originate (are mined) from this region have been identified as.”

“Conflict minerals” from certain identified regions include gold (AU), tantalum (TA), tungsten (W) and tin (Sn).  Supplier of raw materials are required to undertake due diligence in reviewing/ assessing their supply chain to assure that these minerals, if they are contained within product supplied, are not sourced from mines that are in this conflict region which are controlled by non-government military groups, or unlawful military factions.

3.2 Mercury Free:

All products supplied to Martin & Rush Machining Inc. dba. Phoenix Precision Machining Shop are subject to the prohibition of mercury contamination.  At no time shall the products come in direct contact with mercury or its compounds nor with any mercury containing device, this requirement must be passed on to any approved subcontractors.

 3.3 DFARS Compliant Requirements:

DFARS compliance statement must be stated on the supplier’s certificate of conformance.

DFARS Compliant Requirement per latest Revision.

3.4 RoHs Compliant Requirements:

RoHs compliance statement must be stated on the supplier’s certificate of conformance.

RoHs Compliant Requirement per latest Revision

3.5 REACH Compliant Requirements:

REACH compliance statement must be stated on the supplier’s certificate of conformance.

REACH Compliant Requirement per latest Revision

 3.6 Raw Material and (OSP) Outside Supplier Distributor Certification Requirements:  

Raw metallic Material Certificates Raw metallic materials (including castings and forgings) supplied shall include a copy of the original mill certificate or material test report (certification).  The mill certificate should meet the intent of the material specification.  Raw material mill certifications may not be altered.

The certificate shall also include the physical or mechanical properties as specified on the drawing or material specification.

3.7 Counterfeit Policy:

Distributors must have a counterfeit policy and provide it upon request.  The counterfeit policy must include provisions of supplying product from the Original Component Manufacturer or qualified distributor.  Supplier shall notify Martin & Rush Machining Inc. dba. Phoenix Precision Machining Shop immediately upon discovery of any delivery of counterfeit parts/components/materials.  Supplier will be responsible for monetary damages to Martin & Rush Machining Inc. dba. Phoenix Precision Machining Shop and/or its customers for any losses or damages arising from the delivery of counterfeit parts/components or materials.

Revision History Record