Purchase Terms - Updated 01/01/2025
To assure minimum customer requirements are communicated to vendors when goods or services are procured. Application:
ALPHI TECHNOLOGY CORP. purchase orders shall flow-down requirements to its sub-tier vendors and/or process suppliers by using the follow alphanumeric “quality clauses” when purchasing services and/or goods from outside suppliers.
Flow Down of Customer Requirements to Suppliers
NOTES:
- Clauses QC1 thru QC13, QC20, QC21 apply to all Purchase Orders.
- Clauses QC14 and QC15 apply to all Purchase Orders for calibrated equipment or calibration services.
- Clauses QC16, QC17, QC20, QC21 apply to all Purchase Orders for raw material.
Quality Clauses
QC01 – QUALITY/INSPECTION SYSTEM
The supplier shall maintain a quality/inspection system which is in conformance with the requirements of AS9100 and/or ISO9001 to include: Receiving, First Article, In-Process and Final inspection.
QC02 – CERTIFICATION OF CONFORMANCE
(C of C) 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 all specifications referenced on drawings and/or purchase orders) outside services performed, hardware, machining/manufacturing, etc. The C of C shall include at a minimum date, purchase order number, suppliers 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 ABSOLUTE TURNING & MACHINE.
QC03 – CONTROL OF SPECIAL PROCESSES
In addition to the requirements of clause 3, both the vendor (supplier) and any subcontractor(s) used shall be Alphi’s and/or Customer approved source for said Processes. These include operations subject to process controls such as: coating, joining, heat treating, cleaning, nondestructive test, etc. The vendor (seller) shall be approved as per above to perform specific required Special Processes, or use Special Process vendors acceptable to ALPHI and ALPHI’S customer.
QC04 – RIGHT TO VERIFY
Alphi’s customer shall be afforded the right to verify at the vendors (sellers) premises that the subcontracted product conforms to specified requirements.
QC05 – 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. Note: Delegation of supplier verification to sub-contractor is not practiced at Alphi Technology Corporation.
QC06 – RECORD RETENTION AND CERTIFICATIONS
Unless a longer period is specified in this Contract or by law or regulation, SELLER shall retain all records related to this Contract for seven (5) years from the date of final payment received by SELLER. Records related to this Contract include, but are not limited to, financial proposal, procurement, specifications, production, inspection, test, quality, shipping and export, and certification records. At no additional cost, SELLER shall timely provide access to such records to the US Government and/or ALPHI Technology upon request.
QC07 – 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 Absolute Turning & Machine or its acting delegation. Supplier proceeding with work without written concurrence does so at his own risk. Product will not be accepted by Alphi’s Quality Assurance Department until the Purchase Order and all documentation referenced properly describe and comply with the product delivered.
QC08 – 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 to prevent a reoccurrence of the discrepancy.
QC09 – PROHIBITED PRACTICES
The supplier does not have material review authority and shall not make any unauthorized repairs by any means without Alphi or Alphi’s customer’ approval.
QC10 – PROHIBITED MATERIAL USES
Parts supplied on this Purchase Order shall not, and indicate, “have not been exposed to functional mercury or mercury compounds”. Also, supplier shall use materials as specified on the P.O. and prevent the use of counterfeit parts as specified per AS9100/ISO9001.
QC11 – 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.
QC12 – 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 is lot-controlled and multiple material lots are shipped, each lot shall be separately packaged and identified.
QC13 – FLOW-DOWN
The supplier shall flow-down all applicable requirements to subcontractors and suppliers at every tier.
QC14 – CALIBRATION SYSTEM
Seller’s (herein referred to as supplier) calibration system shall meet the requirements of: ISO 17025, ISO 10012-1, AS9100, ANSI-Z540-1 or MILSTD-45662. Calibration system shall meet the requirements of: ISO 17025, ISO 10012-1, ANSI-Z540-1. All calibrated equipment shall be traceable to NIST.
QC15 – 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 manufactures specifications and shall be traceable to National Institute of Standards and Technology (NIST).
QC16 – CONFLICT MINERALS
Any PO calling for the purchase of Tantalum, Tin, Tungsten or Gold components are to be sourced to the best of the supplier’s ability from areas that are in compliance with the Dodd-Frank Wall Street Reform Act of 2010. Alphi Technology Corporation reserves the right to ask for an official statement on the supplier’s Conflict Minerals policy at any time.
QC17 – INSPECTION & TEST REPORT REQUIRED
Unless otherwise specified, inspection and test results shall be supplied to ALPHI along with each shipment.
QC18 – FINAL INSPECTION REPORT REQUIRED
Unless otherwise specified, the supplier shall submit a Final Inspection Report depicting all blue print requirements, method of inspection and final results range from sample lot
QC19 – AS9102 REPORT REQUIRED PER P.O
The supplier shall submit a F/A inspection Report with use of latest revision AS9102 format.
QC20 – SUSPECT/COUNTERFEIT WORK CLAUSE
(a) Definition: Suspect/Counterfeit Work includes parts in this Contract misrepresented as being produced under an approved system or method. It also covers parts reaching design life limits, refurbished parts misrepresented as new, or parts designated as suspect by the U.S. Government.
(b) Seller’s Assurance: Seller assures no “suspect/counterfeit parts” are supplied under this Purchase Order and agrees not to deliver Suspect/Counterfeit Work to ALPHI Technology Corporation.
(c) Procurement Standards: Seller must buy products directly from Original Component Manufacturer (OCM)/Original Equipment Manufacturer (OEM) or their authorized distributors. Independent distributors or brokers need approval from ALPHI Technology Corporation.
(d) Notification of Non-Conformance: Seller must promptly inform ALPHI Technology Corporation of any non-conforming Work under this Contract and coordinate on Work disposition.
(e) Notification of Counterfeit Work: Seller must immediately inform ALPHI Technology Corporation if Counterfeit Work is suspected, providing OCM/OEM documentation upon request.
(f) Replacement of Suspect/Counterfeit Work: Seller must replace Suspect/Counterfeit Work with genuine Work promptly at its expense. Seller is liable for all related costs, and ALPHI Technology Corporation may terminate the order for cause based on the impact of Suspect/Counterfeit Work delivery.
(g) Clause Supremacy: This clause prevails over any conflicting provisions in the Contract regarding the authenticity of Work.
(h) Subcontract Inclusion: Seller must include equivalent provisions in lower-tier subcontracts for items delivered to ALPHI Technology Corporation. This clause ensures the integrity and authenticity of Work delivered under the Contract and outlines procedures for addressing Suspect/Counterfeit Work instances.
QC21 – CHANGES
(a) The ALPHI Technology Corporation Procurement Representative can make changes to this Contract by written notice in the following areas:
(i) drawings, designs, or specifications;
(ii) shipping or packing method;
(iii) inspection, acceptance, or delivery location; and
(iv) delivery schedule.
(b) Any change affecting cost or time for Contract performance will result in an equitable adjustment to the Contract price and/or delivery schedule, subject to price adjustment for delivery schedule changes only.
(c) SELLER must request an equitable adjustment within thirty (30) days of receiving the written change order. If the adjustment includes costs for obsolete property, ALPHI Technology Corporation decides how to handle it.
(d) Disputes about adjustments will be resolved as per the Contract’s “Disputes” clause. SELLER must continue Contract performance despite changes.
(e) No changes are allowed without ALPHI Technology Corporation’s approval. SELLER must inform ALPHI Technology Corporation of proposed changes before fulfilling the order. All communication regarding changes must involve the SELLER and ALPHI Technology Corporation’s Authorized Representative. Approval is required for changes affecting product form, fit, function, safety, and other aspects listed in the clause. Examples of changes requiring evaluation include plant relocation, material change, and design modifications. SELLER must comply with all instructions on the Purchase Order, and lack of approval doesn’t excuse non-compliance. Unauthorized activity will not be compensated by ALPHI Technology Corporation.