Purchase Order Terms and Conditions
Document no: F-0840-001
Rev: B
Rev Date: 06/03/2019
A: Policy
It is the policy of Henderson Machine, Inc. (HMI) to purchase only from those Suppliers who consistently meet HMI’s requirements for quality, delivery and reliability. Failure to comply with any requirement invoked by the purchase order may be cause for rejection of the material and/or processing of material included in the Purchase Order. Corrective action measures for product and systems issues may be requested of the Supplier. Failure to respond in a timely or effective manner may result in removal of the Supplier from HMI’s Approved Supplier List, Purchase Order hold, or source inspection.
B: Mandatory Clauses
When Standard Purchase Order Quality Clauses are referenced on the Purchase Order, Clauses 1 through 14 apply for direct material purchases or direct material outside processing:
C: Base Quality Clauses
1. Quality System Requirements
1.1 The Supplier shall, in performance of this Purchase Order, maintain a Quality System that meets the following requirements:
a. Meets the intent of International Standards ISO 9001, AS9100 or equivalent, or be approved by HMI.
b. Provides records that indicate dates of inspection, inspector name or number, characteristics inspected, and whether the characteristics were acceptable or nonconforming.
c. HMI reserves the right to audit or review the Supplier’s Quality System or records as deemed necessary. HMI may, upon request and during regular business hours, conduct a survey of the Supplier’s facility to evaluate its ability to comply with Purchase Order requirements.
1.2 All work performed for this Purchase Order must be in accordance with the quality manual and/or other documents approved by HMI. Any changes to the approved quality manual or approved documents that may affect the quality of materials, products and/or services for this Purchase Order must be submitted for review and approval.
2. Control of Measuring and Test Equipment
2.1 A documented program shall be established and maintained to ensure that tools, gages, instruments and other measuring and testing devices, which are used during inspection are controlled, calibrated and adjusted at a stated frequency to maintain accuracy within specified limits.
2.2 The measuring and test equipment shall be maintained in accordance with ISO 10012-1, “Quality Assurance Requirements for Measuring Equipment,” or equivalent.
2.3 Measuring and test equipment used by the Supplier shall have current calibrations that are traceable to the National Institute of Standards and Technology (NIST) or equivalent national standard.
3. Quality and Inspection Records
Quality and Inspection records must be maintained for a period of seven (7) years minimum unless otherwise stated in the Purchase Order and shall be made available for examination by HMI upon request.
4. Compliance to Purchase Order Requirements
Objective evidence validating the conformance of purchased items or services to Purchase Order requirements shall be kept on file for a period of ten (10) years and shall be made available for examination by HMI upon request.
5. Certificate of Conformance
5.1 The Supplies shall furnish with each shipment a separate and specific Certificate of Conformance (or equivalent, such as “Certificate of Processing”, or “Certified Test Results”, or “Certified Calibration Report”).
5.2 This document shall be on company letterhead and signed by the Quality Manager or responsible company official. This document shall constitute certification by the Supplier that the articles were manufactured, inspected and/or tested in accordance with the Purchase Order, specifications and/or drawings as applicable.
5.3 The Certificate of Conformance shall include, as a minimum, the following information:
a. Purchase Order Number
b. Purchase Order Revision Level (if applicable)
c. Heat Number (if applicable)
d. Drawing Number & Revision Number (if applicable)
e. Description of Part (or service provided)
f. Serial Number(s) of Parts (if applicable)
g. Type of Material (if applicable)
h. Number of Parts Provided (or quantity of material provided)
i. Specification Number & Revision (if applicable)
j. Process Performed (if applicable)
6. Traceability
6.1 The Supplier shall maintain a system of traceability on all raw materials, purchased components and manufactured parts used to supply items on this Purchase Order. This requirement shall also apply to samples sent to the Supplier for testing, analysis or inspection and to HMI owned monitoring and inspection equipment sent for calibration.
6.2 The Supplier shall ensure that the identification of material, components, parts, samples and/or HMI owned equipment is in effect upon receipt. The Supplier shall provide continuous control throughout fabrication, testing or calibration. The material identification, traceability and status shall be with the material at all times. This may be accomplished by using follower, or routing cards, or an equivalent method. Material identification shall provide easy traceability to receiving inspection reports, purchase orders, specifications, drawings and other documented data.
7. Identification/Shipping
7.1 The Supplier shall ensure that all items shipped under this Purchase Order are adequately packaged to prevent damage, contamination, or deterioration. Supplier shall use best commercial shipping practices, or what is stated on the purchase order.
7.2 Material shipped to HMI shall, as a minimum, be identified with the Part Number (if applicable) and Purchase Order Number on the outside of the shipping container. Additional marking and/or identification shall be as required by specification, drawing or Purchase Order.
8. Deviations/Discrepancies
8.1 Any deviation from drawings, specifications or Purchase Order requirements must be submitted to HMI Purchasing. Disposition of such deviations/discrepancies must be approved by HMI prior to shipment. A copy of this approved disposition must accompany each affected shipment. Any rejected/non -conformant material that is being resubmitted by a Supplier shall be clearly identified as such on the shipping documentation and must reference HMI’s rejection document.
8.2 Post shipping discovery of any deviations that affect testing, inspection and/or calibration results must be reported, in writing, to the HMI Purchasing Department. This requirement also includes previously unknown deviations that affect results already submitted to HMI.
8.3 The Supplier shall notify HMI of any changes or deviations that my adversely affect production schedules.
9. Prevention and Counterfeit
The supplier shall plan, implement, and control processes, appropriate to the organization and the product, for the prevention of counterfeit or suspect counterfeit part use and their inclusion in product(s) delivered to HMI. Counterfeit part prevention processes should consider the following:
a. Training of appropriate persons in the awareness and prevention of counterfeit parts
b. Application of a parts obsolescence monitoring program
c. Controls for acquiring externally provided product from original or authorized manufacturers, authorized distributors, or other approved sources
d. Requirements for assuring traceability of parts and components to their original or authorized manufacturers
e. Verification and test methodologies to detect counterfeit parts
f. Monitoring of counterfeit parts reporting from external sources
g. Quarantine and reporting of suspect or detected counterfeit parts
10. Required Specifications
The Supplier is responsible for obtaining all specifications needed to complete the Purchase Order. HMI Purchasing will, upon request, furnish any HMI owned specifications needed and may assist in obtaining any other specifications required for the Purchase Order. All materials or services supplied to a specification must meet the latest published revision of the issuing agency unless otherwise specified in the Purchase Order.
11. Resubmitted Material
Any material rejected by HMI and resubmitted by the Supplier must be clearly identified as such on the shipping document. The Supplier shall reference the HM rejection document and make available upon request, evidence that the initial cause for rejection has been corrected.
12. Right of Entry
HMI, its customers and applicable regulatory agencies reserve the right to witness the manufacture or processing of any items in this Purchase Order to determine and verify the quality of work, records and material at any location including the Supplier’s facility. When visits are made to the Supplier by personnel other than HMI employees, and when such visits are for the purpose of witnessing the manufacture or processing of work, and/or related documentation, pertaining to this Purchase Order, HMI reserves the right to refuse such visits based upon proprietary design, or processes. Furthermore, an HMI representative shall be present during such visits.
13. Henderson Machine, Inc. Receiving Inspection
Parts will be subject to receiving inspection of all characteristics. Material that does not conform to specification will be returned, at Supplier’s expense, for replacement. Latent defects not discovered during source inspection or receiving inspection, but disclosed during assembly or use, shall be cause for rejection and replacement.
14. Product Safety, Contribution, Ethics and Behavior
HMI is committed to treating suppliers with fairness and integrity. HMI will emphasize competition without discrimination or deception, in a manner consistent long-term relationships. The Supplier shall ensure that persons doing work under the organization’s control are aware of
a. The quality policy.
b. Relevant quality objectives.
c. Their contribution to the effectiveness of the quality management system, including benefits of improved performance.
d. The implications of not conforming to the quality management system requirements.
e. Relevant quality management system documented information and changes thereto.
f. Their contribution to product or service conformity.
g. Their contribution to product safety.
h. The importance of ethical behavior.
D: Specific Quality Clauses
15. Quality Systems-Aerospace
The Supplier shall provide and maintain a Quality Management System (QMS). The QMS shall comply with the latest revision of ISO9001 and/or AS9100, NADCAP, Quality Management Systems-Aerospace Requirements, or equivalent.
16. Chemical/Physical Test Reports
A copy of the actual chemical and physical test report shall accompany material delivered under this Purchase Order, as required by the applicable material specifications.
17. Test/Inspection/Analyses
17.1 Certified test data, or a copy thereof on the testing organization’s letterhead, shall be supplied with each shipment. This report must contain all information necessary to demonstrate conformance to the requirements reflected in the applicable specification, on the drawing or in the Purchase Order. The test data shall show quantitative requirements and permissible tolerances for all values measured versus quantitative test results. When specifically allowed by the Purchase Order or HMI specification, statistical data may be provided. Certificates of tests/analyses shall indicate the specification, revision level, type of test performed, total quantity tested, total quantities accepted and rejected.
17.2 100% Inspection is required with actual recorded results for all characteristics on all parts. A copy of the inspection report is required with the shipment of product.
18. First Article Inspection Required
The First Article Sample and Inspection Report shall be submitted to and accepted by HMI prior to the first production shipment. First Article documentation shall include, as a minimum, (1) actual dimensions for each drawing characteristic, (2) date performed, (3) Purchase Order number, (4) Inspector signature/stamp, and (5) the unique marking that identifies the sample part.
19. NADCAP Approved Processes
Suppliers who perform special processes such as Heat Treat, Welding, Chemical Processing and/or Non-Destructive Testing are required to maintain a NADCAP accreditation, or equivalent, for those processes.
20. 10CFR21
Title 10 of the Code of Federal Regulations, Part 21 (10CFR21) Reporting of Non-Conforming Material and/or Service is applicable to this order.
21. Henderson Machine, Inc. Supplied Material
HMI will supply material at no cost to Supplier in the form described in the Purchase Order. Supplier must maintain strict control of material and use only material furnished by HMI. Substitution of other material by Supplier is strictly prohibited. Heat traceability (or serial number traceability) is required.
22. Henderson Machine, Inc. Owned Property
All material of every description furnished to the Supplier by HMI, and any replacement thereof, remain the property of HMI. Such property, whenever practical, shall be plainly marked or otherwise adequately identified by the Supplier. Supplier shall not substitute any property for said material in filling the Purchase Order. In addition, if stated in the Purchase Order, all scrap resulting from the utilization of said material will be delivered to HMI before and/or with the final shipment of the Purchase Order. Turnings, shavings, saw and grinding dust are excluded from accountability.
23. Non-Destructive Testing – Penetrant Inspection
23.1 Penetrant and developer materials shall have sulfur and halogen less than 1/2% by weight. Certificate of Conformance shall include a statement on compliance to this requirement.
23.2 Do not ink stamp parts.
24. Calibration Services
24.1 Suppliers providing calibration services shall comply with ANSI/NCSL Z540, latest revision.
24.2 As-found conditions must be reported as part of the certificate of calibration or as accompanying data.
24.3 Where relevant, a statement of the estimated uncertainty of the calibration result shall be reported.
24.4 Calibration service Suppliers must provide recall labeling and a certificate of calibration with traceability to NIST.
25. Laboratory Testing Services
25.1 Laboratory testing service Suppliers shall identify (1) the procedure or method used, including revision number, (2) the sample identification, (3) material type, (4) actual results, and (5) a statement of compliance or noncompliance to requirements.
25.2 Laboratory testing service Suppliers shall be accredited per ISO/IEC 17025, or equivalent.
26. Heat Treat Services
Heat treat service Suppliers shall provide objective evidence that heat-treating was performed in accordance with Purchase Order Requirements.
27. Subcontractors
27.1 The Supplier shall provide to HMI a list of all subcontractors who perform a process, inspection, or test on materials or parts for this Purchase order.
27.2 The Supplier shall only use subcontractors who have been approved by HMI.
28. DFARS
Supplier shall provide material in compliance with DFARS 252.225-7014. The origin of the material shall be from a qualified country in accordance with DFARS 225.872-1.
29. DPAS
Supplier will take note of and abide by any DPAS code listed on purchase order.
30. Country of Origin
The country of origin of raw material supplied shall be indicated on the Certificate of Conformance.
31. ITAR
Purchase Orders may contain and/or reference documents containing information subject to the International Traffic in Arms Regulations (ITAR). Suppliers may not export, release, or disclose such information to foreign nationals without first complying with export license requirements of ITAR.
32. Chemical Process Changes
Any changes in chemicals and/or chemical processes must be approved by Henderson Machine, Inc.
