Flow Down of Customer Requirements to Suppliers
Rev N/C – Effective date 2/14/2017 Original Release approved by John Anglin
Rev 1 – Effective date 11/19/2019 updated section 3.1, D.3.6.1 and added effective date to terms and conditions.
Rev 2 – Effective date 9/2/2020 Added section 24.
- Clauses 1 to 15 and 22 and 24 apply to all Purchase Orders
- Clauses 16 and 17 apply to all Purchase Orders for calibrated equipment or calibration services
- Clauses 18, 19 and 23 apply to all Purchase Orders for raw material
- Clause 20 applies to all weld rod Purchase Orders
- Clause 21 applies to all CARC paint Purchase Orders
1. Quality/Inspection system: The supplier shall maintain a quality/inspection system which is in conformance with the requirements of AS9100 REV D and/or ISO9001 2015. to include: Receiving, First Article, In-Process and Final Inspection including inspection and Test Records supplied to Nelson Engineering Co. at the point of First Article Inspection (if requested via Nelson Engineering Co. Purchase Order) and upon completion and shipment of said order. Supplier will show adequate control of quality throughout the performance of this Purchase Order including flow down of appropriate quality requirements of their sub-tier supplier contracts for fabrication and special processing.
2. Certification of Conformance: (CofC) attesting to the conformance of material, (which shall include chemical and/or physical reports with “actual” or “typical” as contractually required results of tests conducted on all materials shipped, verifying conformance to specifications referenced on drawings and/or purchase orders) Purchase Order number, supplier name, part number, drawing number and/or representative, lot, batch, serial number or other identification be signed by an authorized representative of the Supplier and shall accompany an order upon receipt of said items to Nelson Engineering Co.
3. Control of Special Processes: Both the vendor (supplier) and any subcontractor(s) used shall be a Nelson Engineering Co. and/or customer approved source for said Processes. These include operations subject to process controls such as: coating, joining, heat treating, cleaning, non-destructive test, etc. The vendor (seller) shall be approved as per above to perform specific required special processes, or use special process vendors acceptable to Nelson Engineering Co. and Nelson Engineering Co. customers. A list of such vendors will be supplied upon request.
3.1 Supplier performance; Nelson Engineering will evaluate and record the supplier(s) ability to meet contractual requirements, including product characteristics, specifications, on-time delivery, completion of documentation, and responsiveness to corrective actions. Nelson engineering reserves the right, at our discretion, to approve and/or disapprove a supplier for lack of performance.
4. Right to Verify: Nelson Engineering Co. customers shall be afforded the right to verify at the vendors (sellers) premises that the subcontracted product conforms to specified requirements.
5. Right of Entry: The supplier shall include provisions in the subcontracts to allow the supplier, customer, and regulatory agencies Right of Entry to any place necessary to determine and verify the quality of contracted work, records, and material.
6. Record Retention and Certifications: Records must be maintained for a period of 11 years and must be retrievable within 48 hours of a request by Nelson Engineering co. Certification test data shall be traceable to the organization performing the testing, special processing, and/or inspection(s) requested via Nelson Engineering Co. Purchase Order. All factual information shall be included to demonstrate conformance of specification and/or purchase order requirements.
7. Report of Non-Conformities or Inconsistencies with Product and/or Purchase Orders: The supplier shall review the Purchase Order and product manufacturing, processing, and/or testing requirements prior to its initiation. If errors or inconsistencies are noted with the P.O., part and or other document referenced by the Purchase Order the supplier must immediately notify Nelson Engineering Co. or its acting delegation. Supplier proceeding with work without written concurrence does so at his own risk. Product will not be accepted by Nelson Engineering Co. quality assurance department until the Purchase Order and all documentation referenced there on properly describe the product delivered.
8. Corrective Action Request: Acceptance of this Purchase Order obligates the seller to perform, upon request, a corrective action investigation when discrepant material is received by the buyer. A written report shall be furnished, within a period of five business days which is specific and conclusive, including the description of the non-conformance, root cause (analysis of the cause of the discrepancy) and the corrective action taken to prevent a reoccurrence of the discrepancy.
9. Identification-Limited Shelf Life: Materials with limited shelf life (epoxy, paint, adhesives, etc.) shall indicate the date of manufacture, lot number and applicable specification on the container. Time lapse between cure or manufacturing date and date of scheduled receipt shall be consistent with applicable specification or purchase order requirements. At a minimum, product receipt shall not have less than 75% of its shelf life remaining.
10. Prohibited Practices: The supplier does not have material review authority and shall not make any unauthorized repairs by any means without Nelson Engineering Co.’s approval.
11. Prohibited Material Uses: Parts supplied on this purchase order shall not, and indicate, “have not been exposed to functional mercury or mercury compounds.”
12. Employment: All suppliers are required to comply with the Equal Employment Opportunity requirements of FAR 52.222-22.
13. Foreign Object Debris/Damage (FOD): The supplier shall employ appropriate housekeeping practices to assure timely detection and removal of residue/debris generated, if any, during operations and/or normal daily tasks and shall ensure FOD requirements are flowed down to sub-contractors and suppliers at every tier.
14. Packaging: As a minimum, the supplier shall package all material in a manner that will ensure protection against corrosion, oxidation, deterioration and physical damage during shipment. Due to inadequate packaging will be rejected and returned to the supplier. In addition, when materials delivered are lot-controlled and multiple material lots are shipped, each lot shall be separately packaged and identified.
15. Flow Down: The supplier shall flow-down all applicable requirements to subcontractors and suppliers at every level.
16. Calibration System: Supplier’s calibration system shall be compliant to the requirements of: ISO 17025, ISO 10012-1, AS9100, ANSI-Z540-1, MIL-STD-45662 or equivalent. or Provide evidence to Nelson Engineering quality that the supplier is working toward compliance and/or had the ability to perform the eservice without adverse effects to product conformity.
17. Certification of Calibration: The calibration service shall provide a certificate attesting to the accuracy of the items procured and be supplied with each shipment. This certification must contain all the test parameters necessary to demonstrate conformance to the manufacturer’s specifications and shall be traceable to National Institute of Standards and Technology (NIST).
18. Preference for Domestic Specialty Metals and Restrictions on Armor Plate: Material shall be of domestic origin or from one of the qualifying countries in accordance with DFAR 252.225-1017 unless otherwise stated on the Purchase Order. Armor material shall be melted and rolled in the United States or Canada as prescribed in DFAR 252.225-7030-3 when subject to the restrictions detailed in the clause unless otherwise stated on the Purchase Order. Suppliers shall provide evidence of compliance, including flow down to all sub-tier suppliers, with all shipments.
19. Material Test Reports: The supplier shall provide chemical and physical analysis of raw material demonstrating compliance to the applicable material specification
20. Weld Rod Requirements: Weld rod certifications shall include actual values which tie to the heat lot delivered. Weld rod may be identified either by stamping or flagging the end with material type.
21. CARC Painting: CARC painting shall be performed according to CARC Standard PO Requirements.
22. Supplier Responsibility: Supplier is responsible to ensure that all persons are aware of their contribution to product or service conformity, their contribution to product safety and the importance of ethical behavior.
23. Reach Compliance: Nelson Engineering Co. requires that all supplied material be in compliance with REACH, ROHS. Suppliers are required to conduct due diligence as it pertains to conflict mineral sourcing and report any deviation or suspected deviation from requirements.
24. We reserve the right to modify delivery dates based on the demand fluctuations from the OEM. ANY ORDERS FOR HONEYWELL PROPRIETARY PRODUCTS ARE SUBJECT TO THE TERMS SET FORTH AT (SCC) PORTAL WHICH CAN BE ACCESSED AT: HTTPS://SCC.HONEYWELL.COM AFTER LOGGING IN, SELECT HAST > DOCS >TERMS & CONDITIONS > CURRENT TERMS & CONDITIONS > *MANDATORY PO TERMS AND CONDITIONS. NEXT CLICK ‘MANDATORY PO Ts&Cs.pdf DOCUMENT ON THE RIGHT-HAND SIDE OF THE SCREEN. AFTER REVIEW OF THE ‘MANDATORY PO Ts&Cs.pdf, ” SELECT THE HYPERLINK TO THE GENERAL PURCHASE ORDER PROVISION THAT ARE APPLICABLE. SUPPLIERS ACKNOWLEDGES BY ACCEPTANCE OF THIS PURCHASE ORDER THAT IT HAS REVIEWED THE ABOVE MENTIONED DOCUMENTS AND ACCEPTS HONEYWELL’S TERMS AND CONDITIONS IN THE ABSENCE OF A GOVERNING CONTRACT AND THAT ALL ANNUAL CERTIFICATIONS AND REPRESENTATIONS OF FILE ARE ACCURATE
If your company identifies a conflict with any of our terms and conditions or flow down requirements please contact us so that we may investigate the conflict further and determine a resolution.
D.3.1 Test and Inspection Requirements
“The seller shall establish and implement test and inspection activities necessary to assure the authenticity and conformance of purchased materiel,
D.3.2 Supply Chain Traceability
“The seller shall maintain a method of commodity and item level traceability that ensures tracking of the supply chain back to the manufacturer of the materiel being delivered per this order. This traceability method shall clearly identify the name and location of all of the supply chain intermediaries from the manufacturer to the direct source of the materiel for the seller, and shall include the manufacturer’s commodity or item level identification for the item(s) such as date codes, lot codes, heat codes, serializations, unique item identifiers, or batch identifications.”
D.3.6 Product Impoundment and Financial Responsibility
“If suspect/counterfeit <MATERIEL> is furnished under this purchase agreement, such items shall be impounded. The seller shall promptly replace such items with items acceptable to the <BUYER> and the seller may be liable for all costs relating to impoundment, removal, and replacement. <BUYER> may turn such items over to Authority Having Jurisdiction for investigation and reserves the right to withhold payment for the suspect items pending the results of the investigation. Any known instances of fraud or attempted fraud shall be documented in writing to <BUYER>.”
D.3.6.1 Prevent the use of counterfeit parts (see 8.1.4 of the AS9100D / ISO 9001:2015 Standard)
D.3.7 Penalties Associated with Fraud
“This purchase order and activities hereunder are within the jurisdiction of the <GOVERNMENT>. Any knowing and willful act to falsify, conceal or alter a material fact, or any false, fraudulent or fictitious statement or representation in connection with the performance of work under this purchase order may be punishable in accordance with applicable legal statutes.
Statement to Prevent Transactions with Denied Persons/Debarred Parties/SDN:
To ensure compliance of U.S. export laws, Nelson Engineering does not conduct any business transactions with the “Denied Persons List” published by the U.S. Department of Commerce, the “Denied Parties List” published by the Department of State and the “Specially Designated Nationals List” published by the Department of Treasury, Foreign Assets Control. Nelson Engineering expects all suppliers and its subcontractors to comply with these laws as well.
Supplier agrees to include this requirement in lower-tier Purchase Orders and/or subcontracts. (You may view the U.S. Government web sites for each of the Agencies noted above to access their lists).
Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009 (JUN 2010)
(a) The Contractor shall post notice of employees rights and remedies for whistleblower protections provided under section 1553 of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act).
(b) The Contractor shall include the substance of this clause, including this paragraph (b), in all subcontracts that are funded in whole or in part with Recovery Act funds.
48 CFR § 52.222-41 – Service Contract Labor Standards.