Purchase Order Terms & Conditions
Rev. 6 Rev. Date 9-10-2024
All Purchase Orders (“PO”) issued to Dedrick Tool & Die, Inc. Suppliers are subject to the following Terms and Conditions.
This document describes the Supplier Requirements necessary to satisfy Dedrick Tool & Die, Inc.’s (“DTD”) Quality Management System (“QMS”). These terms and conditions apply to all suppliers of products and/or manufacturing services determined by Dedrick Tool & Die, Inc. to directly affect the quality of products we supply to our customers.
By accepting this purchase order, it is understood that your organization agrees to meet the following requirements:
1. Dedrick Tool & Die, Inc. reserves the right of final approval of products, procedures, processes, and equipment.
2. Special Process Certifications: When DTD or its customer drawings and/or specifications require special processes, a certification may be requested for each special process, including the source performing the process. All special processes required by this purchase order must be performed by qualified personnel.
3. Approved/Certified Suppliers: Any new supplier shall provide current documentation of all quality system certifications, NADCAP certifications, as well as the scope of the accreditations as requested by Dedrick Tool & Die, Inc. Our organization reserves the right to review and approve the Suppliers Quality Management System. Standard QMS requirements include:
3.1. Suppliers providing special processing must maintain a system for validating processes similar to that of a NADCAP program or other system as required by this purchase order.
3.2. Customer-directed sources must operate in accordance with approved specifications and standards as dictated and controlled by the customer in question.
3.3. Suppliers initially approved for use via Certification (ISO9001, AS9100, ISO 17025, AS9120, etc.) must notify our organization of any changes to that certification.
3.4. Suppliers providing NADCAP-certified services must provide current documentation of these services and shall notify Dedrick Tool & Die, Inc. of certification changes such as process, scope, and revision.
3.5. Suppliers shall maintain a Dedrick Tool & Die, Inc. (DTD) approved quality management system (QMS), demonstrating compliance with all applicable QMS certification requirements.
3.6. If a supplier is certified for a QMS via ISO 9001, AS9100, and/or NADCAP, they will be considered to have a DTD-approved QMS.
3.7. If a supplier is not certified for any QMS, DTD can authorize the supplier based on other criteria (e.g., scope of work, location, turnaround time, capacity, ability, lead time, and /or price).
3.8. If a supplier does not maintain their QMS, repeatedly fails to meet simple requirements, or fails to respond to nonconformance issues, they will be removed from the approved supplier list and given no new work.
4. Quality Control Records: The Supplier shall maintain on file and make available to (upon request) Dedrick Tool & Die, Inc., its customers, and/or regulatory authority all quality data/records such as certificates of material and/or processes, acceptance test reports, inspection records, control plans and other applicable quality control data for a minimum of 10 years from completion of the purchase order that directly affects the quality of parts/services ordered by Dedrick Tool & Die, Inc. At the end of the retention period, the supplier shall provide the option for Dedrick Tool & Die, Inc. to take possession of the records. If Dedrick Tool & Die, Inc. does not take possession of the records, they will be destroyed by shredding.
5. Nonconforming Material/Product: The supplier shall identify nonconforming parts clearly with tags, including a statement of drawing characteristics, location, and actual description of the nonconformity. The supplier is NOT allowed to disposition nonconforming products without written approval from DTD. Suppliers shall maintain a system for controlling, segregating, and identifying nonconforming products. Dedrick Tool & Die, Inc. may require a Corrective Action Report from its suppliers when discovering a nonconforming material/product/service. Specific actions may be implemented where timely or effective corrective actions to a supplier issue are not achieved. These actions may include, but are not limited to, the removal of the supplier from the approved supplier list.
6. First Piece Inspection Report (FPIR): First Piece Inspection may be required, and written acceptance of the product produced may be necessary. DTD is not charged for the Supplier’s First Piece(s). To maintain the integrity of the first piece inspection process with our customers, the supplier is required to:
6.1. Notify our organization of nonconforming products immediately upon discovery, including any latent defects in products in already delivered to Dedrick Tool & Die, Inc.
6.2. Obtain our organizational approval for disposing of nonconforming products. All parts dispositioned as nonconforming must be identified with a discrepant part tag or other means of identification.
6.3. Notify our organization of changes in product and/or process, changes of suppliers, and changes of manufacturing facility locations.
6.4. Flow down applicable Dedrick Tool & Die, Inc. purchase order requirements to their sub‐tier suppliers.
7. Tooling, Gauging & Test Equipment: Supplier shall maintain suitable tools, gauges, and test equipment for fabricating, measuring, and testing for conformance. Supplier shall maintain a system for periodic inspection & calibration of the test equipment traceable to the National Institute of Standard Technology (NIST). Suppliers must also have a positive recall system in place and take positive action for equipment received out of tolerance, which could compromise the quality of the finished product. All Suppliers providing calibration services must be certified to ISO 17025 (or equivalent). All calibration certificates must identify the standards used and be traceable to NIST (National Institute of Standards Technology).
8. The Supplier shall provide packaging in accordance with the best commercial packing methods to protect the product from damage and ensure safety in handling during the shipping process or per specific instructions as noted on our purchase order.
9. Authority: All agreements between Supplier and DTD are not binding on either party unless documented by a new or amended PO.
10. On‐Site Survey & Surveillance (Right of Access): DTD, their end‐customers, and/or regulatory authorities (e.g., FAA or DOD) shall have the right to all applicable records for parts/services purchased by Dedrick Tool & Die, Inc. and to conduct surveys and surveillance within your plant, including any sub-tiers operations, to evaluate capability to comply with PO and/or quality requirements. Suppliers must support DTDs, their customers, and the third-party authority’s representative with adequate facilities, equipment, and responsible Supplier personnel.
11. Certificate of Conformance: To ensure product identification and traceability, Dedrick Tool & Die, Inc. may request material certificates, certificates of conformity, or supporting documentation from its suppliers as appropriate. These requirements will be specified on the purchase order. When asked, suppliers must submit a Certificate of Compliance (C of C) in an acceptable industry-standard format to certify that the material and processes used to fulfill the PO meet all specified requirements. The necessary documentation and test data must be filed to substantiate the C of C. The C of C must include as a minimum and applicability: Supplier’s Name, Supplier’s address, DTD PO number, part number, batch/heat number(s), quantity in shipment, authorized name, and title (typed and signed), date the C of C was issued, and statement of conformance referencing the specification (including revision).
12. Control of Suppliers’ Sub‐Tier(s): Supplier shall be wholly responsible for conformance to requirements of materials and services purchased from Supplier’s Sub‐Tiers. Supplier shall assure and certify their Sub Tiers’ performance and, when requested, via inclusion in Supplier’s C of C to the requirements of applicable specifications found in all drawings and part documentation.
13. Code of Conduct: DTD has built a reputation and ethical, moral, and legal standards by conducting business with honesty and integrity. If applicable, we ask that our suppliers adhere to the same standards when conducting business with DTD. DTD complies with the letter and spirit of every applicable local, state, or federal law or regulation. Violating these laws or rules can be highly costly to DTD and subject us to criminal penalties. We ask our suppliers to comply with all applicable laws and regulations when doing business with DTD.
14. Employment Laws: We are committed to providing a work environment that is free from all forms of discrimination, including sexual harassment and harassment based on race, color, religion, sex, national origin, age, disability, or other protected status. We provide equal opportunity in all employment practices and seek to ensure that each one of us is treated with fairness and dignity. In addition, we comply with all federal and state laws regarding child labor. We comply with all applicable employment and labor laws. We ask our suppliers to comply with all applicable laws and regulations when doing business with DTD.
15. Occupational Health and Safety and Environmental Laws: We are committed to providing a healthy and safe work environment. DTD’s employees abide by company standards in safety matters. We do our part to maintain a healthy and safe work environment and take the necessary steps to ensure the safety of our employees and others. We also respect and protect the environment. We are committed to reducing our impact on the planet and endeavor to reduce energy and natural resource consumption. We comply with all applicable environmental laws and regulations. We ask our suppliers to comply with all applicable laws and regulations when doing business with DTD.
16. Dedrick Tool & Die, Inc. Gift Policy: DTD does not make or accept improper payments or gifts. Improper payments include anything of more than nominal value given to any person to obtain preferential treatment for either DTD or an employee. You may not solicit or accept gifts or favors of more than nominal value from persons who deal or seek to deal with DTD. Likewise, you may not give gifts or favors to these persons.
17. Laws Governing International Activities: If you are involved in international activities, you must be familiar with the Foreign Corrupt Practices Act. This Act generally prohibits payments to foreign officials to induce actions by them and requires us to maintain accurate books and records and a system of internal controls. We are prohibited from taking any action supporting an international boycott not sanctioned by the U.S. government. If you are involved in exports, including transmitting technical data over the Internet or other electronic means, you must know the export laws and our policies and procedures.
18. Conflicts of Interest: A conflict of interest exists when an individual’s duty of undivided commercial loyalty to DTD is perceived to be prejudiced by actual or potential personal benefit from another source. Conflicts of interest may result directly or indirectly through our activities or the activities of a family member, person sharing our household, or person with whom we are associated. You may not solicit or accept salaries, fees, commissions, or any other type of compensation from any individual or organization that conducts or seeks to conduct business with DTD or one of our competitors, and you may not have a financial or other interest in those who deal with DTD. You may not make a loan, extend credit to, or receive a loan or credit from those who deal with DTD. You must not directly or indirectly attempt to influence.
19. Age Control Materials: All material furnished to support the PO must be marked and identified with the respective cure date, manufacturing date, shelf life, and expiration date, if applicable. All perishable or limited shelf-life items requiring controlled temperatures must be supplied in containers, noting the special storage requirements. Material shipped to DTD shall have a minimum of 75% remaining on the specified shelf life.
20. Safety Data Sheets (SDS): If applicable, the supplier must supply an SDS with the material. If data is not immediately available, forward the SDS data form to DTD within ten days of receiving the order.
21. Supplier’s Incoming Material: Supplier’s procured material and details used in parts supplied to DTD shall be subject to a system that will assure conformance to drawings and specification requirements. The system will use test reports, specifications, and inspection verification as appropriate, as well as the physical and chemical properties of the materials. Raw material shall be identified as to the composition, heat treatment, source location, specification number (including revision), and any other characteristics imposed upon us by our end customers and regulatory agencies.
22. Sampling Procedures: When required, sampling procedures shall be based upon a plan expressly noted by customer requirements. When the customer does not note it, DTD will use their work instruction regarding sampling.
23. Change Control (Supplier Changes): The supplier shall not change the approved PO of the product or service to specified requirements unless DTD provides, in writing, official revised documentation. Supplier shall maintain a change control system to ensure all changes to drawings, specifications, and/or test methods are incorporated per the QMS requirements. When the Supplier’s drawing number and revision change level are specified on a DTD drawing, products must conform to both the Supplier’s and DTD’s drawings at the revision change levels shown. Supplier’s requested changes to drawings and processes must be transmitted to DTD with sufficient data to complete the request evaluation. Changes shall not be incorporated until DTD authorizes them in writing.
24. Supplier Required Notifications: The supplier shall notify DTD of a nonconforming product and return the material identified with defect information for evaluation. The Supplier shall notify DTD of any changes they would like to the following address:
Attn: DTD Purchase Order Terms & Conditions, 2929 East State Road 124, Bluffton, IN 46714. Any printed copies are uncontrolled. The Supplier shall wait for approval from DTD (and DTD’s Customer where necessary) before processing any approved parts with the proposed changes.
25. Process Control: Specific controls shall be established, defined in writing, maintained, and recorded by the Supplier on all manufacturing processes. During continued manufacturing of the product, the supplier shall not make any changes to any of the operating or control parameters associated with the processes without written approval from DTD. These processes shall include, but are not limited to, anodizing, heat treating, passivating, plating, chemical film lube, magnetic particle inspection, liquid penetrant inspection, mechanical tests, and chemical composition analysis.
26. Tooling, Gauging & Test Equipment: Supplier shall maintain suitable tools, gauges, and test equipment for fabricating, measuring, and testing for conformance. Supplier shall maintain a system for periodic inspection & calibration of the test equipment traceable to the National Institute of Standard Technology (NIST). Suppliers must also have a positive recall system in place and positive action taken for equipment received out of tolerance that could compromise the quality of the finished product.
27. Identification: All products supplied to DTD shall be identified in accordance with PO and/or drawing requirements. If DTD specifications or drawings require serial numbers, they shall be nonrecurring, and the supplier shall maintain records of their application.
28. Packaging & Preservation: The supplier shall provide adequate damage‐avoidance packaging, specifically no metal-to-metal contact of parts (i.e., provide separators between each part and appropriate dunnage (e.g., avoid parts rattling in the container). Styrofoam peanuts are not permissible in packaging. Parts shall be properly protected from initial receipt of WIP parts through shipment of end‐item to DTD (i.e., shipped, delivered, and/or picked up) to prevent damage, contamination, and deterioration. Supplier’s personnel shall be trained and know about this clause, including all instructions regarding special handling requirements as applicable. Raw material shall be protected against corrosion or rust during manufacturing, storage, and shipment. Magnesium alloys, carbon steels, low alloy steels, and bare 400 series stainless steels shall be protected adequately.
29. Shipping Requirements: Supplier must use the carrier and mode of transportation identified on the PO or, unless otherwise authorized, in writing, by DTD.
30. Acceptance: Acceptance shall be at DTD’s facility or otherwise specified on the PO. Any parts determined as nonconforming may be returned to the Supplier for rework at the supplier’s expense.
31. Source Inspection: DTD’s quality personnel shall have the right to inspect the product at the Supplier’s facility as part of or in addition to its incoming inspection activity. Acceptance of parts by source inspection does not preclude subsequent product return if further inspection detects nonconformances. DTD shall notify the Supplier within 24 hours before a source inspection request.
32. Software Control: The supplier shall establish and implement a “Software Quality Assurance Plan” (SQAP), as applicable, to assure that deliverable and non‐deliverable software used directly for the design, fabrication, inspection, test, or operation of deliverable articles is controlled and complies with the intent of QMS requirements.
33. Mercury-Free Material: Material furnished under the PO must be certified as “Free of Mercury” in any form. Mercury-bearing instruments and/or equipment, which may cause contamination, shall not be used in the manufacture, assembly or testing of these materials. This requirement must be passed on to sub‐tier suppliers.
34. Conflict Mineral Requirement: All parts must comply with Section 1502 of the Dodd‐Frank Wall Street Reform and Consumer Protection Act (the “Act”) regarding the sourcing of tantalum, tin, tungsten, and gold from certain mines within the Democratic Republic of Congo (DRC) or adjoining countries as defines in the Act. All necessary steps must be taken to implement conflict‐free sourcing wherever possible.
35. Parts Sold to the Government: Source Inspection: All Government work is always subject to inspection and testing by the Government before shipment. The Government representative must be notified no less than 48 hours in advance of the time articles or processes are ready for inspection and testing. Therefore, contact DTD Purchasing 48 hours in advance of the Government inspection.
36. Castings: One sample piece, representative of each casting, mold or forging/forming tool or die/mold cavity(s), in any stable material, accompanied by a copy of the Supplier’s FAIR, must be submitted for DTD written approval of supplier produced tooling. When a casted part includes cored passages or other dimensional design features requiring sectioning of the product for evaluation, the Supplier must submit their sectioned layout sample for Dedrick Tool’s evaluation with written approval. DTD will not be responsible for quantity production commenced before DTD approves the supplier’s tooling/sample product, despite our end-customers approval (including First Article approval). DTD’s acceptance of a tooling sample(s) does not constitute acceptance of casting the Supplier’s subsequent production pieces.
37. Counterfeit Parts: All Suppliers must adhere to AS6174 regarding Counterfeit Material and Ensure the Acquisition of Authentic and Conforming Material. Sellers of raw materials/components shall ensure that only new and authentic materials/components are used, fulfilling POs to DTD. Distributors may only purchase materials/components directly from original manufacturers. Use of material not provided by these sources is not authorized unless first approved in writing my DTD. The supplier must present compelling support for its request and include in its request all actions to ensure the material is authentic and conforming, including all applicable traceability.
38. ITAR & EAR: All drawings and other accompanying documents provided may contain information subject to the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulation (EAR). Transfer of any Technical Data by any means to a foreign person or foreign entity, whether in the United States or abroad, without first complying with the export license requirements of the ITAR and/or the EAR is against the law and in violation of the terms of any PO. By agreeing to accept any order, the Supplier certifies to DTD that the Supplier has not violated any ITAR and/or EAR laws in fulfilling this order or any subsequent or previous order.
39. General Flow Down Requirements: All specifications flowed out to the supplier must be interpreted to the most current revisions unless otherwise specified. The required documentation order of precedence is the PO, followed by the print and an OP sheet. Customer-specific flow-down requirements for every PO for that specified customer are shown on the PO. Customer-specific specifications on specific processes will be detailed on the PO and drawing.
40. DFAR Flow Down Requirements: Pursuant to 52.211-15 DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS (APR 2008) FAR, rated orders are identified by a priority rating and a program identification symbol. Rated orders take precedence over all unrated orders as necessary to meet required delivery dates. Among rated orders, DX-rated orders take precedence over DO-rated orders. Program identification symbols indicate which approved program is attributed to the rated order.
(b) Persons receiving rated orders must be given preferential treatment as required by this part.
(c) All rated orders must be scheduled to the best of their ability to ensure delivery by the required delivery date.
(d) Persons who receive rated orders must place rated orders with their suppliers for the items they need to fill the orders. This provision ensures that suppliers will give priority treatment to rated orders from contractor to subcontractor to suppliers throughout the procurement chain.
This priority rating will be flowed down to the supplier/sub-contractor as required and noted on the purchase order. By accepting this purchase order, you are acknowledging this requirement.