4.0 PURCHASE ORDER QUALITY CLAUSES
The following quality clauses apply to suppliers based on the scope of the services they perform (these purchase order quality clauses can also be accessed at http://www.djgrp.com/purchase_order_quality_clauses.htm). Any internal DJ documents referred to in these clauses may be accessed through DJGRP web site or by requesting from the DJ document control administrator. DJE internal procedures and checklists mentioned herein can be obtained upon request from the Purchasing Agent.

4.1 Supplier Approval & Supplier Quality Management System:

a)   A “Self-Audit / Supplier Survey” form completed by supplier is used for the evaluation process, and is maintained on file at DJ. DJ reserves the right to add and/or remove suppliers from the approved list, based on this evaluation.
b)   Suppliers shall have a Quality Management System accredited to AS9100, ISO9001, Nadcap (for Special Processes), or ISO/IEC 17025 (For calibration service providers). Initial Approval of the Supplier will be until the expiration of the current accreditation.
c)   If the Supplier does not have an accredited Quality Management System, evaluation will be based on the returned survey, referrals if any. Initial Approval will be for a period of 3 months subject to extension of up to 9 months based on performance on the first few purchases.
d)   The Performance of the Suppliers is evaluated based on their Quality Rating (=/> 98%), Delivery Rating (=/> 95%), and their response to Supplier Corrective Action (SCAR) within the stipulated time.
e)   Suppliers meeting the threshold of performance will be reapproved as noted below. Suppliers with accredited Quality Management System, Nadcap accreditation for the special process, or accreditation to ISO/IEC 17025 will be re-approved until the date of current accreditation. Reapproval for Suppliers without accreditation to Quality Management System will be for 1 year.

4.2   Document Control: DJ will provide Suppliers with the required documents for the scope of work except that the Supplier is responsible to buy/maintain industry standards/specifications such as AMS, ASTM, and ISO standards. When the specification revision level is not specifically stated in the Purchase Order, it is the responsibility of the Supplier to ensure that they perform work to the latest revision levels. The Supplier shall protect proprietary information and require sub-tier to do the same.

4.3   Customer Flow Down: Refer to Purchase Order and /or Contract for the additional specific requirements of end item customer, with regard to design, test, inspection, verification, use of statistical techniques, and related instructions for acceptance and critical items including key characteristics.

a) DJE performs work directly for the US Government. Frequently the revisions of specifications used by the government are not the same as the revisions that are most current with the OEM. It’s the requirement of DJE that vendors process to the revision contained within our PO, and if the vendor is unable to do so, they must notify DJE immediately and/or return the parts with no work performed

4.4 Manufacturing Routings: Supplier shall certify that shop travelers/job orders reflect work requirements including non-destructive inspection, acceptance shown by suppliers’ quality assurance signature or stamp, and records are on file for review upon request. Evidence of completion of all production and inspection/verification operations in shop travelers/job orders shall be accomplished through the application of Acceptance Authority Media (AAM), e.g., stamps, electronic signatures, passwords. Evidence of control of such Acceptance Authority Media shall be on record.

4.5 Materials Receiving Inspection: Supplier shall certify that receiving inspection was performed on purchased materials to ensure compliance with all drawings and/or specifications. Test reports and/or raw material certifications must remain as Quality Records on file and available for review upon request.

4.6 Material Suppliers: Please refer to the specific purchase order for each specific raw material procurement requirement. Only domestic material is required to be supplied, when specified on the DJ Purchase order.

4.7 Evidence of Inspection: A qualified representative of the supplier’s quality department shall sign and document acceptance status for each shipment as evidence of 100% inspection. Unless otherwise specifically permitted by end item customer, sampling inspection will not be performed without written approval from an authorized DJ representative.

4.8 Key Characteristics: When specified on the purchase order, supplier shall inspect and document all key characteristics referenced on purchase order or prints. The supplier shall provide results upon request from DJ or end item customer.

4.9 DPD: Suppliers engaged in the use/ transfer of MBD/ DPD will ensure configuration control to the Digital Product Definition requirements noted in the DJ MBD/DPD checklist and applicable customer specifications. All MBD/DPD suppliers must fill out the DJ MBD/DPD checklist and return it to DJ for approval before undertaking MBD/DPD work.

4.10 Special Tooling Requirements: Supplier shall ensure that the Special Tooling requirements are met per DJ Internal Procedure DJP-400, Procedure for Tooling Process – DJE Owned ST, DJP-402, Procedure for Tooling Process – Customer Owned ST, and end item customer requirement. Periodic Tooling Inspection records shall be maintained, when applicable and shall be available for DJ review upon request.

Suppliers, who manufacture and use ST:

a) All the applicable provisions of DJP-400 and DJP-402.

Suppliers, who use DJ-provided ST:

a) ST provided by DJ for use at the Supplier shall be stored, protected and maintained per Section H of DJP-400 and DJP-402.
b) ST provided by DJ for use at the Supplier shall be subject to Periodic Tooling Inspection per Section J of DJP-400 and DJP-402, which includes Each Use Condition Checks.
c) Nonconforming ST shall be segregated from manufacturing use and information shall be forwarded to DJ promptly per Section M of DJP-400 and DJP-402.
When advised by DJ, Supplier shall ship the ST back to DJ for Periodic Tooling Inspection or rework, per Section K of DJP-400 and DJP-402.

4.11 Test Reports: The original mill chemical and mechanical test reports for material used in filling orders must be maintained for a period of ten (10) years. The heat lot numbers of each report must be traceable to the material. Any reprocessed raw material must be traceable to the original mill test report and include objective evidence of compliance (e.g., mechanical tests) to the materials reprocessed condition. Copies of test reports must be submitted with each shipment. When DJ provides the material, the supplier must ensure that a statement is included on the shipping certification and shipper “DJ supplied material”.

4.12 First Article Requirements: First Article Inspection Report meeting the requirements of AS 9102 shall be provided with the first shipment. First Article inspections shall be required for all configuration changes, and any major changes in fabrication/processes that may affect product conformance. This requirement does not apply to Commercial Off the Shelf (COTS) items and raw materials (forgings and castings may need to meet this requirement).

4.13 Source Inspection: If specified on the purchase order, DJ source inspection is required prior to shipment from seller’s facility. Supplier shall provide personnel and equipment to assist buyer’s representative during inspection of items. On site acceptance by DJ or customer personnel does not absolve the supplier of the responsibility to provide acceptable product or preclude subsequent rejections by DJ.

4.14 Certification of Compliance (C of C): Supplier certifies all parts supplied conform to the purchase order requirements, applicable specifications with rev levels, applicable Process Specification Departures (PSD), finishes, dimensions, etc. and records are on file subject to examination. The certificate of compliance must be signed by an authorized representative and shall accompany each shipment.

4.15 Product Verification: Verification by DJ does not absolve the supplier of the responsibility to provide acceptable product or preclude subsequent rejections by DJ.

4.16 Handling of Aircraft parts and assemblies, including F.O.D.:
The Supplier shall ensure that the requirements of F.O.D are met per AS9146, FOD Prevention Program – Requirements for Aviation, Space, and Defense Organizations and end item customer requirement.

4.17 Handling, Packaging, Preservation and Delivery: The supplier shall use appropriate methods of handling, packaging and preservation to prevent damage of product in process and during delivery.

4.18 Notification of Nonconforming Product: Supplier shall notify DJ of nonconforming product, if any, immediately on identification. If product or processing on delivered product is found to be nonconforming, a notice of escape shall be submitted to DJ within 24 hours of identification. Such notifications (NOE) shall include a description of the nonconformity, a list of parts affected with applicable part numbers, customer PO number, quantity, the delivery date and the identified immediate corrective action for the non-conformity.

4.19 Nonconforming Product Disposition: Supplier shall obtain DJ approval for disposition, before final acceptance and shipping. The notification shall identify the root cause and corrective action implemented to prevent recurrence.

4.20 Notification of changes in product / process definition: Supplier shall notify DJ of changes in product and/or process, changes of suppliers, changes of manufacturing facility location and, where required, obtain DJ approval.

4.21 Notification of changes in Supplier’s Name, Approval Status: Supplier shall notify DJ promptly, of changes in Supplier’s Name, and changes in status of approval by end item customers / Nadcap / Quality Management System Registration, such as for loss of accreditation/approval.

4.22 Requirement of Suppliers to flow down customer requirements to their sub-tier:
This clause requires the Suppliers to flow down to the supply chain, the applicable requirements, including customer requirements appropriate to the product / process.

4.23 Approved Processing Sources: Suppliers shall use only end item customer approved processing sources.

4.24 Quality Records: Quality Records must be readily retrievable upon request. Period of retention of Quality Records shall be ten years or per the end item customer requirements, if it exceeds ten years. Retention period starts following D-J Engineering purchase order completion, unless otherwise specified in the contract. Any records before the date determined as above will be destroyed, by the owner of the record.

4.25 Right of Access: DJ, DJ’s customers, and regulatory authorities shall be allowed the right of access to the applicable areas of all facilities, at any level of the supply chain, involved in the order and to all applicable records, including verification and validation of product / process.

4.26 Counterfeit Part Prevention:
Supplier shall not furnish to DJ, any goods that are “Counterfeit Goods”, defined as Goods or separately-identifiable items or components that: (i) are an unauthorized copy or substitute of an Original Manufacturer or Original Component manufacturer (collectively, “OEM”) item; (ii) are not traceable to an OEM sufficient to ensure authenticity in OEM design and manufacture; (iii) do not contain proper external or internal materials or components required by the OEM or are not constructed in accordance with OEM design; (iv) have been re-worked, re-marked, re-labeled, repaired, refurbished, or otherwise modified from OEM design but not disclosed as such or are represented as OEM authentic or new; or (v) have not passed successfully all OEM required testing, verification, screening, and quality control processes.
The supplier shall have a counterfeit detection process that meets the intent of SAE standard AS5553, Counterfeit Electronic Parts, Avoidance, Detection, Mitigation, and Disposition, if applicable.
Counterfeit Parts shall be segregated and handled as nonconforming products, preventing re-entry of these products in the supply chain.
Refer to Appendix B, Section B.6.0 for Boeing Requirements for Counterfeit Part Detection and Avoidance System Requirements.

4.27 EEO / AAP Commitment:
The Equal Opportunity Clause required under Executive Order No. 11246, as amended, the Affirmative Action commitment for disabled veterans, Armed Forces service medal veterans, or other protected veterans, set forth in 41 CFR 60-250.5(a), the Affirmative Action Clause for handicapped workers, set forth in 41 CFR 60-741.5(a), the related regulations of the Secretary of Labor, 41 CFR Chapter 60, and amendments thereto for each and every one of them, are incorporated by reference in this purchase order. By accepting this purchase order, the vendor certifies that it complies with the authorities cited above and that it does not maintain segregated facilities or permit its employees to perform services at locations, where segregated facilities are maintained, as required by 41 CFR 60-1.8.

4.28 Calibration:
Calibration shall conform to ANSI/NCSL Z540.3, ISO/IEC 17025, or ISO 10012 and have NIST traceability. Provide certification and data showing before and after results of calibrations performed including any adjustments made. Acceptance limits are from DJ procedure DJP-660, Procedure for Control of Monitoring and Measuring Equipment or the original equipment manufacturer’s requirements. If an out-of-tolerance condition is found, notify DJ within 24 hours.

4.29 Export Control:
ITAR requirements, if applicable, will be specified in D-J Engineering Purchase Orders with a note
*** This part is export-controlled and subject to ITAR regulations. ***

When this requirement is specified, the suppliers have the right to use the Export Controlled items only as required to perform their contract and within the limitations of the applicable US Government export authorization.
The processors shall exercise appropriate controls to ensure that technical documents or data, which are subject to the International Traffic in Arm Regulations (ITAR) or Export Administration Regulations (EAR), are not released to “Foreign Persons” inside or outside the United States without the proper U.S. Government authority.

4.30 Traceability Requirements:

a. Electrical, electronic, electro-mechanical and electro-optical component parts:
All electrical, electronic, electro-mechanical and electro-optical component parts delivered and/or used in the manufacture of deliverable products shall be from the Original Component Manufacturer (OCM)/ Original Equipment Manufacturer (OEM) or franchised distributors.
b. Non-electrical standard parts, like fasteners, nuts, washers, springs, O-rings, inserts, and pins:
All non-electrical standard parts, like fasteners, nuts, washers, springs, O-rings, inserts, and pins, must have a certification from the Original Component Manufacturer (OCM)/ Original Equipment Manufacturer (OEM) or authorized distributor.
In the event a part is not directly available from the OCM/ OEM or franchised distributors (electronics) or authorized distributor (non-electronics), purchase from independent distributors may be made, if allowed by customer, but the evidence of supply chain traceability (chain of custody) back to the OCM/ OEM shall be provided.
Component part suppliers shall provide the OCM/OEM certification with each lot/ shipment.

4.31 Competent, Trained and Certified Personnel

Supplier shall ensure that competent and trained employees carry out the product / process realization at their facilities, including certified personnel as required by the applicable specifications, and that they are aware of their contribution to conformity of product/service, product safety and importance of ethical behavior.

4.32 Mutual Non-Disclosure Agreement

When DJE provides drawings and intellectual property to enable the Supplier to understand end user requirements of product and processes, DJE and the Supplier will enter into a Mutual Non-Disclosure Agreement, a copy of which is attached for reference.

4.33 Cyber Security

If Supplier receives product definition data digitally, Supplier agrees to meet DFARS 252.204-7012 and comply with all related cyber security measures. Supplier also agrees to share SPRS score upon request and submit to audit if needed.

Appendix 4A: Additional Requirements for Lockheed Parts

A1.0 This appendix covers additional flow down requirements for the fabrication of Lockheed parts.

A2.0 DJ and its Suppliers shall perform work and prepare documents per applicable requirements in current revisions of Lockheed document Appendix QJ and Addendum to Appendix QJ including following specific requirements:

A2.1 Processor shall be in the list of approved process sources in Lockheed QCS-001 for the identified processes and specifications.

A2.2 Following items shall be included in DJ purchase order issued to process Lockheed Parts:

a. DJ’s LM Aero identification number (“vendor code”) and all LM Aero “process codes” for each Lockheed-controlled process to be performed.
b. Title and specification number (including revision letter) of the process specification or document.
c. Statement: “Processing to be accomplished in performance of this purchase order is directly related to a Lockheed Martin Aeronautics Company purchase order and must be accomplished in accordance with process specification(s) on this purchase order and the revision in effect as of the date of this PO of Lockheed Martin Aeronautics Company Appendix QJ. All requirements of such Appendix QJ paragraph 12. a. – f. shall be accomplished. Appendix QJ is located at http://www.lockheedmartin.com/material-management/

Appendix 4B: Additional Requirements for Boeing Parts

B1.0 This appendix covers additional flow down of requirements for the fabrication of Boeing parts.

B2.0 Processor shall be in the list of approved process sources in D1-4426 for the identified processes and specifications. This approved list can be accessed on web site http://www.boeing.com/companyoffices/doingbiz/d14426/index.html

B3.0 The suppliers engaged in the use/ transfer of Digital Product Definition data and software shall meet the intent of Boeing Document D6-51991. This document can be accessed at http://www.boeing.com/companyoffices/doingbiz/dpd.html

B4.0 When Boeing Quality Clause Q31 is included in our Purchase Order, that the shipment should place the following statement with all shipments:
“Seller herby acknowledges that the parts and/or materials being shipped under this order, are intended for use under Boeing’s Federal Aviation Administration (FAA) issued Production Certificate 700”.

B5.0 When Boeing Quality Clause Q053 is included in our Purchase Order, notify Boeing Supplier Quality Representative at least 48 hours in advance prior to performing the process. Evidence of witnessing by Boeing SQR shall be recorded on the Process Certification. For any questions, get in touch with D-J Engineering Buyer.

B6.0 Boeing Quality Clause Q132 requires that the Supplier’s Counterfeit Part Detection and Avoidance System addresses the following:
i. Training of appropriate persons in the awareness and prevention of Counterfeit Parts;
ii. Application of a parts obsolescence monitoring program;
iii. Controls for acquiring externally provided product from original or authorized manufacturers, authorized distributors, or other approved sources;
iv. Requirements for assuring traceability of parts and components to their original or authorized.
v. Verification and test methodologies to detect counterfeit parts;
vi. Monitoring of counterfeit parts reporting from external sources;
vii. Quarantine and reporting of suspect or detected counterfeit parts, including preventing reentry into the supply chain.

If Seller becomes aware or suspects that it has furnished Counterfeit or Suspect Counterfeit Parts to Buyer, Seller promptly, but in no case later than thirty (30) days from discovery, shall notify Buyer and replace, at Seller’s expense, such Counterfeit Parts or Suspect Counterfeit Parts with Goods that conform to the requirements of this Contract. For confirmed Counterfeit Parts or Suspect Counterfeit Parts, GIDEP notification shall also be made no later than sixty (60) days after discovery. Seller shall be liable for all costs related to the delivery or replacement of Counterfeit Parts or Suspect Counterfeit Parts including any testing or validation costs necessitated by the installation of Goods in replacement of Counterfeit Parts or Suspect Counterfeit Parts.

Appendix 4C: Additional Requirements for United Launch (ULA) Alliance Parts

C1.0 This appendix covers additional flow down of requirements for the fabrication of ULA parts.

C2.0 QC014 Requirement: If QC014 is stated on the Purchase Order, the following special conditions apply:

This Contract requires Special Processing. The Contractor will accomplish such processing only if:
1. The CONTRACTOR and/or CONTRACTOR’s subcontract source must be approved by ULA at the time of process performance OR listed as approved for “Q4M – SUPPLIER APPROVE OWN SPECIAL PROCESSORS”.
2. A list of ULA approved suppliers/processors and the associated processes is available at http://suppweb.ulalaunch.com/AppProcWeb/Default.aspx
3. The CONTRACTOR shall include this clause, including this paragraph, in all Subcontracts: A Certificate of Conformance and/or equivalent Process Certificate, from CONTRACTOR and all Subcontractors performing special Processing Work under this contract, will be submitted to ULA. The certificate shall be traceable to a ULA Contract number and include:
a) Part number including revision level
b) Serial and/or lot number(s) (as applicable)
c) Process specification number and revision level
d) Processing date
e) Name and address of the processor(s) performing each process
f) A certification statement that the special process was performed per the applicable drawing/specification requirements
g) Signature with date and title by an authorized representative of the CONTRACTOR and/or CONTRACTOR’s subcontract source.
ULA’s approval of a processor does not relieve CONTRACTOR of CONTRACTOR’s requirement to comply with the terms of this contract.

Appendix 4D: Additional Requirements for Bell Helicopter (BHT) – DJP-2120

D1.0 Program Awareness Training (Controlled Items):
Suppliers shall conduct annual Controlled Item Program Awareness training to personnel involved with Controlled Items, and training records shall be made available to DJE as objective evidence. (SQRM-001 Rev B, Appendix VI, 3.3, DJP-2120 Rev -, 5.1.5.2)

D2.0 Controlled Item Planning and/or Technique Documentation:
Processors shall forward their process planning and /or technique documentation to DJE for submittal to Bell Helicopter PRB for approval; such documentation shall include DJE’s name as their customer. (SQRM-001 Rev B, Appendix VI, 4.2, DJP-2120 Rev -, 5.2.2.5)

D3.0 Specifications other than BPS involving a “Significant” or “Critical” Characteristic:
In all such cases, the processor is required to be approved for “Controlled Items” by Bell Helicopter. (SQRM-001 Rev B, Appendix VI, 4.3, DJP-2120 Rev -, 5.2.3.4)

D4.0 Traceability/Serialization:
When controlled items being processed are serialized, serial number traceability will be maintained throughout the process and will be recorded on processor’s quality documents. (SQRM-001 Rev B, Appendix VI, 5.1, DJP-2120 Rev -, 5.3.1.1)

D5.0 Controlled Items Process/NDT Planning and Technique Card/Sheet:
Processors of controlled items shall provide DJE with applicable process/NDT planning and technique card/sheet for each item containing the following as applicable:
a) Notation of designation on planning document, i.e. “Primary”, “Critical”, “Makes a Critical”, “Flight Safety”, “Fatigue Controlled”
b) Processor’s name and location
c) Planning revision level and/or date
d) Planning Revision History Record Sheet showing initial release and reason for subsequent revisions
e) Part number, complete with dash number
f) The process specification revision along with any process engineering changes not yet incorporated
(SQRM-001 Rev B, Appendix VI, 5.2, DJP-2120 Rev -, 5.3.2.1)

D6.0 Reference to the process, technique or set-up card:
Processing operations to a Bell or military/non-government specification shall show direct reference to the process, technique or set-up card, and annotation of required bake time – temperatures when applicable. As an alternative, the planning may reference a Supplier’s internal process procedure which reflects the required time and temperature. The internal procedure becomes a part of the manufacturing planning and is considered “FROZEN” upon approval of planning with any changes to the procedure having to be submitted to Bell prior to incorporation.
(SQRM-001 Rev B, Appendix VI, 5.2, DJP-2120 Rev -, 5.3.2.2)

D7.0 Significant or critical characteristic identification on Planning:
Significant or critical characteristic identification at each point the characteristic shall be noted on the planning.
a) Provisions for recording serial-numbers when applicable
b) Sketches, diagrams or supplemental instruction sheets used in the manufacture of the part
(SQRM-001 Rev B, Appendix VI, 5.2, DJP-2120 Rev -, 5.3.2.3)

D8.0 Operator Buy-Off:
Processor shall signify completion of each Critical Characteristic operation on Operational Planning with a buy-off by the processor personnel completing the operation. The buy-off consists of a legible name, clock number or other suitable personnel identification. Such identification is applied adjacent to the operation number on the planning sheet.
(SQRM-001 Rev B, Appendix VI, 5.4, DJP-2120 Rev -, 5.3.4.1)

D9.0 100% Inspection:
Any feature controlled as a Critical Characteristic requires 100% inspection of the feature for each part. Statistical methods in lieu of 100% inspection may be utilized only after receipt of written approval by the Bell.
(SQRM-001 Rev B, Appendix VI, 5.5, DJP-2120 Rev -, 5.3.5.1)

D10.0 Nonconforming Product (Refer Sections 4.18 & 4.19):
Nonconforming material shall be segregated, documented and communicated to DJE to provide the controlled item.
(SQRM-001 Rev B, Appendix VI, 5.6, DJP-2120 Rev -, 5.3.6.1)

D11.0 Rework planning required due to deviation from the initially approved planning:
Rework planning required due to deviation from the initially approved planning shall be developed and submitted to DJE for applicable PRB approval, reference rework planning requirements noted above.
(SQRM-001 Rev B, Appendix VI, 5.6, DJP-2120 Rev -, 5.3.6.2)

Appendix 4E: Additional Requirements for Northrop Grumman

E1.0 Northrop Grumman Supplier Quality Assurance Requirements (SQAR) (Northrop Grumman):
Work to be accomplished in performance of this purchase order is directly related to a Northrop Grumman purchase order and must be accomplished in accordance with processes specified on this purchase order and Northrop Grumman SQAR (latest revision). Further information can be found at https://oasis.northgrum.com/contract/qualdocs.htm