XKT Engineering, Inc.                          AS 9100 / ISO 9001
FOD – Counterfeit Parts                    Supplier Terms and Conditions Rev. 1

Dear Suppliers,
The quality management system of XKT Engineering, Inc. is based on requirements of AS9100 & ISO 9001 standards. We ask our suppliers to assist us by ensuring the following requirements are met for our purchase orders.
1. Product Identification - Seller shall provide product identification, including name, part number, type, grade, etc. when applicable.
2. Applicable Standards – Seller shall reference applicable standards and specifications on product documentation.
3. Delivery Requirements – Buyer shall designate an agreed upon delivery date and any other pertinent data regarding location of deliveries by seller.
4. Special Requirements – Buyer shall notify seller of any special requirements or any additional key characteristics required for the order.
5. Approved Quality Management System (QMS) - Buyer reserves the right to review and approve Seller QMS for Seller’s use in supplying products and/or services to the Buyer.
6. Nonconforming Processes, Products or Services – The Seller shall notify the Buyer in the event of any nonconforming products or material. This includes any post-delivery items and only the Buyer’s authorized manager or designee may determine disposition of acceptance or rejection of said items.
7. Flow Down Requirements – The Seller shall flow down all applicable Buyer, Customer, U.S. Government, Regulatory and/or AS9100/ISO 9001 requirements to sub-tier suppliers. Buyer does not allow Seller to subcontract any product or process to sub-tier suppliers without expressed written consent of the Buyer, through the Buyer’s Contract Representative.
8. Retention of Records – Buyer and Supplier shall retain records for a time period specified by the Buyer. Disposition of the records after the specified retention period shall be determined by contract or by the Buyer.
9. Right of Entry/Access – Buyer, its customers and regulatory authorities reserve the right of access to all supplier facilities which are supplying or performing work on the order. This also applies to any documentation pertaining to same. The Seller is required to provide support in the form of labor, materials, information, tools and equipment necessary to execute verification and survey activities.
10. Delegated Inspection Authority – The Buyer may delegate the inspection authority to the Seller if the Seller has the capability and approval to conduct such inspections. The Buyer will define the inspection requirements (including approved monitoring and measurement equipment/methods and personnel) in the order. The Buyer will maintain a record of approval granted to the Seller to carry out such inspections. The Seller shall maintain a record of the
delegation approval and present it to the Buyer with the product at delivery or in a time frame specified by the Buyer. Delegation of any inspection authority does not absolve the Seller of performing all appropriate inspections prior to shipment, nor of its responsibility to provide a conforming product. Further, this will not preclude subsequent rejection by the Buyer.
11. Customer/Government Source Inspection/Verification – The Buyer’s Customer/Government may perform inspection activities at the point of origin (Seller’s or its sub-tier facilities) to ensure that purchased product meets purchase requirements prior to shipment/delivery to the Buyer/Customer.
12. Corrective Action Request – Where product or process non-conformances are identified by the Buyer or its Customer, a Corrective Action Request (CAR) may be issued to the Seller. The Seller agrees to take appropriate and timely action to respond to the CAR with an acceptable corrective action plan, subject to Buyer approval, and to implement the required corrective action(s).
13. Counterfeit Parts – The Supplier shall certify that only new and authentic parts are used in products or goods delivered to XKT Engineering, Inc. and that the product/goods delivered contain no counterfeit parts.
14. Foreign Object Debris (FOD) - Suppliers shall ensure that foreign objects, debris, and loose material are eliminated from parts prior to shipment. Suppliers shall maintain a FOD free environment during machining, manufacturing, assembly, soldering, inspection, storage, packaging and shipment that ensures parts are clean and free of contaminates.
15. Personnel Awareness- Suppliers shall ensure that persons are aware of; their contribution to product or service conformity; their contribution to product safety & the importance of ethical behavior.