Supplier Quality Terms and Conditions

1 Purpose & Applicability

These Supplier Quality Terms & Conditions establish the quality, delivery, documentation, regulatory, and compliance requirements applicable to suppliers providing products or services to AAA Fabrication, LLC.

These requirements apply when referenced by or incorporated into an AAA Fabrication Purchase Order (PO). Suppliers are responsible for reviewing all applicable PO requirements prior to acceptance. Where a PO or customer-specific requirement imposes additional or more stringent requirements, those requirements shall take precedence.

2 Purchase Order Review & Acknowledgment

Suppliers shall review and acknowledge AAA Fabrication purchase orders within three (3) business days of receipt and provide the expected delivery date.

Any exceptions, discrepancies, or inability to meet PO requirements shall be communicated to AAA Fabrication prior to acceptance.

3 Quality Management System

Suppliers shall maintain a quality management system appropriate to the products or services provided and capable of ensuring conformity to AAA Fabrication requirements.

ISO 9001, AS9100, AS9120, or other third-party certification may be required when specified by AAA Fabrication, its customer, or the applicable PO.

4 Product & Service Conformity

Suppliers are responsible for ensuring all products and services conform to the applicable:

• Purchase order requirements;
• Drawings and current revisions;
• Specifications and standards;
• Material requirements;
• Customer-specific requirements; and
• Statutory and regulatory requirements.

Suppliers shall verify that the correct revision and applicable requirements are used prior to processing or manufacturing.

5 Certifications, Documentation & Traceability

When required by the PO, suppliers shall provide applicable documentation such as:

• Certificate of Conformance (C of C);
• Material Test Reports (MTRs) or material certifications;
• Test or inspection reports;
• Special process certifications;
• Calibration certifications;
• Safety Data Sheets (SDS); and
• Other documentation specified by AAA Fabrication or its customer.

Required certifications and documentation shall accompany the shipment or be provided as otherwise instructed by AAA Fabrication.

Material, lot, heat, batch, serial number, or other traceability shall be maintained when required by the PO, drawing, specification, customer, or regulatory requirement.

6 Nonconforming Product

Suppliers shall maintain controls to prevent the unintended use or delivery of nonconforming products or services.

Suppliers shall notify AAA Fabrication of nonconforming product that may affect an AAA Fabrication order and shall obtain authorization before accepting or applying a disposition that requires AAA Fabrication or customer approval.

Suppliers shall not independently authorize use-as-is or repair dispositions when AAA Fabrication or customer approval is required.

If a nonconformity is discovered after delivery, the supplier shall notify AAA Fabrication promptly and provide sufficient information to identify the affected product or shipment.

7 Corrective Action

Suppliers shall respond to Supplier Corrective Action Requests (SCARs) or other corrective action requests within the timeframe specified by AAA Fabrication.

When requested, the supplier shall provide:

• Acknowledgement of receipt;
• Root cause analysis;
• Corrective action plan;
• Objective evidence of implementation, when requested.

Failure to adequately address recurring or significant quality issues may affect the supplier's approval status.

8 Change Notification

Suppliers shall notify AAA Fabrication and obtain approval, when required, prior to implementing changes that could affect product conformity, including changes to:

• Product or design;
• Materials;
• Manufacturing or inspection processes;
• Special processes;
• Sub-tier suppliers or approved sources;
• Manufacturing location; or
• Other conditions affecting form, fit, function, performance, or conformity.

Suppliers shall notify AAA Fabrication of changes to applicable quality certifications when those certifications are required for approval.

9 Special Processes

When special processes are required by the PO, drawing, specification, or customer requirement, the supplier shall ensure the process is performed by appropriately qualified personnel and/or approved sources as required.

Applicable process qualifications and certifications shall be maintained and provided to AAA Fabrication upon request.

10 Inspection, Testing & Measuring Equipment

Suppliers are responsible for performing appropriate inspection and/or testing necessary to verify conformity of products and services.

Monitoring and measuring equipment used for product acceptance shall be appropriately calibrated or verified and maintained where applicable.

11 Counterfeit Parts & Material Prevention

Suppliers shall implement controls appropriate to the products supplied to prevent the use or delivery of counterfeit or suspect counterfeit parts and materials.

When applicable, products shall be obtained from the Original Equipment Manufacturer (OEM), Original Component Manufacturer (OCM), authorized distributor, or other approved source.

Suspected or confirmed counterfeit products shall be segregated and shall not be delivered to AAA Fabrication. The supplier shall notify AAA Fabrication promptly if counterfeit or suspect counterfeit product may affect an AAA Fabrication order.

12 Foreign Object Damage (FOD) Prevention

Suppliers shall maintain appropriate controls to prevent contamination, foreign object debris, and Foreign Object Damage (FOD) during manufacturing, processing, handling, packaging, and shipment when applicable to the product or service provided.

13 Sub-Tier Supplier Control & Flow-Down

Suppliers are responsible for ensuring their sub-tier suppliers comply with all applicable requirements associated with the AAA Fabrication purchase order.

Applicable AAA Fabrication, customer, statutory, regulatory, quality, traceability, product safety, and special-process requirements shall be flowed down throughout the supply chain as necessary.

14 Right of Access

AAA Fabrication, its customers, and applicable regulatory authorities shall have the right of access to the supplier's applicable facilities, processes, products, records, and relevant areas of the supply chain associated with the purchase order.

Access shall be coordinated with the supplier as appropriate.

15 Record Retention

Suppliers shall retain quality and manufacturing records applicable to AAA Fabrication purchase orders for a minimum of ten (10) years unless otherwise specified by the PO, customer, statutory, or regulatory requirement.

Records shall remain legible, identifiable, retrievable, and protected from unauthorized alteration or loss.

Upon expiration of the required retention period, records shall be disposed of in a manner that prevents unauthorized disclosure or unintended use.

16 Shipping & Packaging

Suppliers shall package and protect products as necessary to prevent damage, deterioration, contamination, corrosion, or loss during handling and transportation.

Each shipment shall include a packing slip identifying, as applicable:

• AAA Fabrication PO number;
• Part number and revision;
• Quantity shipped; and
• Applicable lot, heat, batch, or serial identification.

Required certifications and documentation shall accompany the shipment or be provided as otherwise directed by AAA Fabrication.

Changes to specified shipping instructions require AAA Fabrication approval.

17 Supplier Performance

AAA Fabrication monitors supplier performance based on applicable quality and delivery criteria.

Supplier performance objectives are:

• On-Time Delivery: >85%
• Quality: Supplier nonconformance occurrences
• Service / Responsiveness
• Cost

Failure to maintain acceptable performance may result in corrective action, increased monitoring, probation, suspension, or removal from the AAA Fabrication Approved Supplier List.

18 DPAS Rated Orders

When an AAA Fabrication purchase order is identified as a rated order, the supplier shall comply with applicable requirements of the Defense Priorities and Allocations System (DPAS), 15 CFR Part 700.

Applicable rating and delivery requirements shall be flowed down to sub-tier suppliers as required.

19 Export Control

When identified on the PO or when export-controlled products, materials, technical data, drawings, or information are provided, suppliers shall comply with applicable U.S. export-control laws and regulations, including the International Traffic in Arms Regulations (ITAR) and/or Export Administration Regulations (EAR), as applicable.

Export-controlled information shall not be transferred, disclosed, exported, or provided to unauthorized persons or entities without the required authorization.

Applicable export-control requirements shall be flowed down to sub-tier suppliers when required.

20 Ethical Behavior, Product Safety & Awareness

Suppliers shall conduct business ethically and ensure personnel performing work affecting AAA Fabrication products or services are aware of:

• Their contribution to product or service conformity;
• Their contribution to product safety; and
• The importance of ethical behavior.

Suppliers shall report known or suspected conditions that could adversely affect product safety, conformity, or regulatory compliance.

21 Environmental & Climate Considerations

Suppliers are encouraged to consider relevant environmental and climate-related factors that could affect their ability to consistently provide conforming products and services.

Where environmental, climate, customer, statutory, or regulatory requirements are identified as applicable to the purchase order, the supplier shall comply with those requirements.

22 Acceptance of Terms

Acceptance of an AAA Fabrication purchase order constitutes acknowledgment and acceptance of the applicable requirements contained within these Supplier Quality Terms & Conditions unless otherwise agreed to in writing by AAA Fabrication.