Supplier Requirements – Valley Machine Shop

SUPPLIER REQUIREMENTS: Valley Machine Shop Supplier Quality Requirements

1. Supplier Quality Management Systems:

The Supplier will as a minimum maintain and implement a documented quality system, available in English language that is certified to AS9100 and/or ISO9001.
1. AS9120 or ISO17025 is acceptable for material test and calibration laboratories
Supply copy of 3rd party certifications. Any changes to the certifications such as a change of the registrar, update, withdrawal or disapproval must be forwarded to VMS Quality immediately.
Or, Supplier shall complete VMS Supplier Quality Survey (F840-001) and provide any other requested documentation to VMS Quality.
Shall notify VMS in writing within 48 hours of any changes to its Quality Management System, relocation, or changes in top management including Quality Management Representative.
Supplier shall maintain satisfactory performance to remain on VMS approved supplier list (ASL)
1. Guidelines based on 3-month window
2. 20 or more parts rejected with disposition Rework or Scrap
3. 20% or greater Purchase Orders or Pieces Late/ Early Delivery
  1. Delivery measured; 30 Days Early/ 10 Days Late
4. Suppliers performance will be reviewed quarterly

2. Supplier shall ensure that Personnel comply and are aware of:

Ensure competence, including any required qualification of persons
Their contribution to product or service conformity
Their contribution to product safety
The importance of ethical behavior

3. Configuration Management:

Supplier shall comply with specifications stated on the face of the Purchase Order and with applicable engineering drawings, including industry, association, society, regulatory and United States Government.
Supplier shall notify VMS if any engineering revision levels received conflict with the revision levels on the Purchase Order.
These documents shall be controlled, maintained and issued as the latest revision in effect at the time of the Purchase Order unless otherwise stated.
Supplier shall maintain a change control management and verification system for documents and electronic media, including applicable government, association, society, industry and customer furnished configuration data.

4. Access:

Supplier shall grant VMS (or customers of VMS or any governmental regulatory agencies) access to Suppliers premises or manufacturing facilities. This includes the freedom to witness and audit all phases of fabrication, testing, storage or goods sold to VMS, pertinent documents and records related to the contract, subject to any limitations or controls required to ensure compliance. VMS will provide notice to Supplier (typically 48 hours minimum).

5. Acceptance:

If any goods are found to be defective or otherwise not in conformance with requirements of the Purchase Order, VMS may, in addition to its other rights and remedies, reject such goods and require their prompt correction or their replacements at the Suppliers expense, including shipping and packaging charges. Alternatively, VMS may repair or replace such nonconforming goods at the Supplier’s expense.
Some shipment or delivery dates on VMS Purchase Order may extend beyond the current engineering level protection time frame. Fabricating in advance of Suppliers proposed lead time (excludes hardware, forgings, or raw material which routinely exceed 12 weeks) before the stated due date is at the Supplier’s risk.

6. Subcontracting:

Supplier agrees that it will not enter a subcontract for procurement of any goods covered by this Purchase Order, in their complete or substantially complete form, without written consent of VMS.

7. Control of Sub-Tiers:

No material substitutions, omissions or modifications will be allowed without prior consent of VMS.
The Supplier will assure that all material, services, and software procured from, or performed at sub-tier suppliers is in conformance to contractual requirements and specifications.
The Supplier will ensure that all such requirements/ specifications are flowed down to their sub-tier suppliers.
All special processes must be performed by processors approved per D1-4426.

8. Counterfeit Part Prevention:

The Supplier shall have a counterfeit detection process for all non-electrical standard parts, like fasteners, nuts, washers, springs, O-rings, inserts, and pins that meets the intent of SAE standard AS6174, Counterfeit Material; Assuring Acquisition of Authentic and Conforming Material.
For all non-electrical standard parts, like fasteners, nuts, washers, springs, O-rings, inserts, and pins, must have a certification from Original Component Manufacturer (OCM)/ Original Equipment Manufacturer (OEM) or Authorized Aftermarket Manufacturer (AAM) or authorized distributor.
In the event a part is not directly available from the OCM/ OEM/ AAM or authorized distributer (non-electronics), purchase from independent distributers may be made but the evidence of supply chain traceability (chain of custody) back to the OCM/ OEM/ AAM shall be provided. The Certification shall clearly identify the name and location of all the supply chain intermediaries from the original manufacturer to the final source of the product delivered to VMS. NOTE: Distributers shall, in addition to the above, include their company’s certification for each part number shipped.
Suppliers that deliver next higher assemblies shall flow this requirement down to all their sub-tier suppliers to prevent inadvertent use of counterfeit parts and materials. Component certifications from OCM/ OEM/ AAM must be readily retrievable and made available upon request.
If evidence of supply chain traceability (chain of custody) to the OCM/ OEM/ AAM is not available, the supplier must notify VMS immediately and get authorization to purchase this product.
Confirmed counterfeit parts will be segregated from conforming parts and controlled until rendered unusable by physical destruction. Suspect or confirmed counterfeit parts may not be returned to the supplier for refund or replacement except under controlled conditions which would preclude the resale or re-introduction into the supply chain. The Supplier shall be notified and authorization to scrap obtained before product is destroyed.
Confirmed counterfeit parts will be reported to the Government Industry Data Exchange Program (GIDEP) and applicable US Government investigative authorities.
Suppliers shall be liable for all costs relating to the removal and replacement of Counterfeit Work, including without limitation VMS and VMS customer’s costs of removing counterfeit items, of reinserting replacement Work and of any testing necessitated by the reinstallation of items after counterfeit items have been exchanged.

9. Designs, Tools, Dies, Customer Provided Material, Etc.:

If the goods are to be produced by Supplier in accordance with designs, drawings, blueprints, Mylar’s, tooling or fixture furnished by VMS, the Supplier shall return the same to VMS at VMS’s request upon completion or cancellation of this Purchase Order.
Such designs shall not be used by Supplier in the production of materials for any third party without VMS written consent. Such designs involve valuable property rights and proprietary information and shall be held confidential by Supplier.
Unless otherwise agreed herein, the Supplier shall supply all materials, equipment, tools and facilities to perform the requirements of the Purchase Order at its cost.
Title to, and the right of immediate possession of, all property furnished by VMS to the Supplier shall remain with VMS.
Title to any VMS furnished property shall not be affected by the incorporation or attachment to any property not owned by VMS, nor shall any such property, become a fixture of the Supplier or lose its identity for any reason.
VMS furnished, and/or owned property condition shall be identified, maintained and inspected regularly for suitability of use. Supplier shall notify VMS immediately if the property is lost, stolen, or unfit for use for any reason. VMS makes no warranties of any nature with respect to any property or data it may furnish to Supplier hereunder.
Supplier shall notify VMS prior to destruction of any furnished materials, or equipment.
If VMS has provided the raw material for this order, no material substitution is allowed unless authorized in writing by VMS. The Supplier shall not return any furnished material without prior approval from VMS.

10. Records:

Quality records, material, and process certifications that are created and/or retained by the Supplier must be complete, legible and identifiable to the corresponding product. These records shall be retained for calendar year +10 years from date of shipment under each applicable order for all product/part numbers. At the expiration of such period, VMS reserves the right to request delivery of such records.
Quality records, material and process certifications will be maintained in English.

11. Raw Material:

The Supplier is required to verify the correct material type, and temper (where applicable), to engineering prior to fabrication of product. Evidence of verification shall be on the Supplier’s shop traveler, work order, planning, or other inspection status (including FAI) documentation. NO MATERIAL SUBSTITUTION ALLOWED.

12. Notice of Escapement:

The Supplier shall notify VMS, within 24 hours of discovery, of any non-conforming product shipped (escapement) and/or any changes in product or process definition.
In the event of an escapement, the Supplier shall send a “Notification of Escapement” in writing to VMS and shall contain the following as a minimum:
1. Supplier Name
2. Description of Non-Conformance
3. A list of all affected part numbers
4. Part number and traceability number which identifies the Non-Conforming parts, if applicable
5. All affected VMS purchase order numbers
6. Packing sheet numbers
7. Quantities and date shipped
8. Information regarding quarantine of all related work-in-process and/or finished goods
9. Any other information that is required

13. Non-Conforming Material:

When a nonconforming product is discovered at the Supplier’s facility, and it requires an engineering review/disposition, the Supplier shall submit a Nonconforming Material report to VMS.
When nonconforming product is reported to VMS Supply Chain, by the customer and/or VMS Quality, and it is determined to be the responsibility of the Supplier, immediate containment and evaluation of all such Product at the Supplier’s facility will take place. The Supplier will notify VMS of any additional product impacted, by the discovery, and evaluate the condition for possible NoE category.
1. A copy of VMS Non-Conformance Report (NCR) F870-001 will be provided to the Supplier as notification of the discovered discrepancy.
2. If requested, the Supplier shall provide Root Cause and a Corrective Action statement and return it to VMS.

14. Supplier Corrective Action:

If the Supplier is issued a Non-Conformance Report, the Supplier’s response shall be submitted to VMS Quality, within the date specified.
Failure of a Supplier to respond may result in a change in approval status.

15. Disposition Authority:

Supplier disposition authority for non-conforming product is limited to: Rework, Return to Vendor, and Scrap. The Supplier shall notify VMS in writing immediately if disposition actions taken have an effect on the ability of the Supplier to deliver product as specified or agreed upon.
NOTE: For Scrap: Non-conformance document shall be furnished to VMS for VMS furnished material; regardless of the supplier’s MRB status.

16. Part Mark:

Direction is provided by VMS Purchase Order

17. Sampling:

The Supplier shall perform 100% inspection of products delivered. Sampling may only be performed when authorized in writing by VMS.

18. Digital Product Definition (DPD):

Suppliers utilizing VMS Digital Product Definition (DPD) for the purpose of manufacturing and/ or inspection of Boeing product must hold written approval from Boeing for compliance to Boeing D6-51991 or at a minimum completion of Attachment B DPD Questionnaire (VMS114).
When VMS, or VMS’s Customer, provides electronic engineering definition of the product, the Supplier shall have a documented procedure for:
1. Verifying the integrity of the file transfer
2. A system for storing and maintaining the file
3. A system for the security (limited access) of a file and,
4. A system for change verification and notification
5. Full traceability of all derivative data back to the original Customer provided definition
6. When models are provided by VMS, along with other configuration control documents (engineering drawings, specifications, condition of supply, etc.), the Supplier is to ensure that all documents have been properly reviewed prior to production. This includes the evaluation of all embedded notes in the engineering model. Any conflict between these documents and files shall be brought to the attention of VMS for resolution.

19. Certificate of Conformance:

When a VMS Certificate of Conformance (C of C) document form is not specified on the Purchase Order, the Supplier may use their Certificate of Conformance if it contains the following minimum requirements:
1. Supplier’s name and address
2. Part number
3. Run number (VMS)
4. Purchase Order number and line item number
5. Quantity
6. All drawing, part lists, sheet numbers, revision levels, amendments, and models
7. A certification statement that meets the intent of the following: “(Supplier) certifies that these parts were purchased, and/or manufactured, and/or processed, and/or assembled, and inspected and meets all the applicable OEM customer and Buyer requirements.”
8. An authorized Quality Assurance stamp (where applicable), signature and date
9. The number used by the supplier to provide traceability of their quality records.
10. The following should be listed in the C of C or attached in the form of certifications: Material type, alloy, temper, thickness or other size dimension (s), lot number, manufacturer’s name and address, and specification number and revision level.
11. Heat treat facility’s name and address, lot number, process name, quench method, specification number and revision level.
12. Hardness and conductivity readings (required and actuals) and percentages tested.
13. All other special process performed, to include the processor’s name and address, specification name, specification number and revision level.

20. Critical Components:

VMS does not manufacturer parts designated Fracture Critical, Fatigue Critical, Durability Critical or Maintenance Critical.

21. Source Inspection:

VMS does not impose this requirement

22. First Article Inspection:

A First Article Inspection Report (FAIR) is required for all products produced for VMS on their initial shipment and shall be compliant with the latest revision of AS9102
1. All First Article Inspection reports shall be submitted via Net Inspect. Suppliers can acquire a “limited use” license from the Net Inspect website at https://www.net-inspect.com/ at no cost.
The FAI submittals are to be complete, with all material and process certifications, test reports, and supporting documentation attached. Unless otherwise mandated by VMS’s customer, at a minimum, the Net Inspect Form 1 will be completed in its entirety, with the remaining Form 2 and 3 attached, along with all other supporting documentation. A printed copy of Form 1 is to accompany the Suppliers shipping documentation. The supporting documentation will include, but is not limited to:
1. “bubbled” B/P, Engineering Notes, etc.
2. Material Certifications
3. Process Certifications
4. Special Manufacturing Instructions
5. CMM Reports
All supporting documentation shall be traceable to the FAI package. This shall be accomplished by including reference to the part number, and Manufacturing Process Reference number and/or the FAI Report number within the document.
Evaluation of Supplier reduced dimension or model-based definition First Article Inspection:
1. For all dimensions checked with a CMM, the Supplier shall provide as AS9102 submittal with all dimensions specifically called out in the model listed Form 3. (ex. GD&T, hard call out dimensions, drive to points, etc.)
2. For all other measurements taken from the model but not specifically called out, as in (i) above, include a bubbled drawing of the dimensions taken from the model or bubbled screen shot showing where the points were taken. There must be correlation between the bubbled features and the CMM report.
3. A CMM report identifies the tolerance for each feature point and amount of deviation from the nominal. The report must clearly indicate any out of tolerance conditions.
4. The CMM report shall be traceable to the specific part and naming convention that can be identified on the AS9102 form 3. A copy of the CMM report shall accompany the FAI. If the size of the CMM report is not feasible to include a copy, it shall be retained in such a manner that can be made available immediately upon request.
For dimensions not checked with the CMM, the Supplier shall provide a bubbled drawing of dimensions taken from the model or bubbled screen shots (these must be controlled in the same manner as an engineering drawing) showing where the points were taken. These manually inspected features shall be recorded on form 3 of the AS9102 form. There must be a correlation between the bubbled features and the form 3 report.
Documents must reference the model file name/drawing and revision level.

23. Nondestructive Testing (NDT):

Supplier shall review the purchase order and associated drawings, notes and related documents to determine if NDT is required. Submittal to and approval of NDT general procedures and part-specific techniques by the Customer (Special Process Owner) is required prior to performing NDT. After initial approval, any changes to subject documents must be resubmitted to the customer for approval.

24. Inspection Delegation Authority:

The Supplier, when issued “Inspection Delegation Authority” is authorized to inspect products on behalf of VMS Quality.
1. VMS Quality reserves the right to conduct product integrity audits, quality system assessments, verify Supplier’s conformance to delegation requirements and to revoke the Supplier’s delegation authority at any time.

25. Key Characteristics:

When identified on the Engineering drawing, model, or documentation, all key characteristics will require a statistical process control plan.

26. Foreign Object Damage (FOD) Control:

The Supplier will ensure that the product delivered to VMS is controlled in a manner that will prevent FOD from being introduced into the final product.

27. Calibration Requirements:

Calibration Control:
1. The supplier shall control the Calibration of all Measuring and Test Equipment (M&TE) against Certified Measurement Standards, traceable to NIST.
Calibration Suppliers:
1. Calibration Suppliers must comply with ANSI Z540.1, ISO 17025, or ISO 10012.
2. Measurement standards used for calibration or verification shall be traceable to international (IS) or national measurement standards and be supported by certification.
Certificate or record of calibration performed will be maintained by Calibration Focal. Records will include the following at a minimum:
1. Equipment Type
2. Identification number/Control number
3. Manufacturer
4. Calibration date
5. Due date
6. Interval
7. Range of measurement
8. Standards used/instructions used
9. Acceptance criteria/Tolerance
10. Test measurement results
Record retention 10 years unless otherwise directed

28. Customer Product & Program Specific Requirements (BOEING):

X31764 Quality Purchasing Data Requirements
D6-82479 Boeing Quality Management System requirements for Suppliers and the requirements listed below, as applicable:
1. D6-51991 Quality Assurance Standard for Digital Product Definition at Boeing
2. Special processes must be performed by Boeing D1-4426 approved processes. See D1-4426 Appendix D for Purchase Order flow down requirements.

29. Basic Working Conditions and Human Rights:

Seller further commits that any material violation of law by Seller relating to basic working conditions and human rights, including laws regarding slavery and human trafficking, applicable to Seller’s performance under this Contract/ Agreement may be considered a material breach of this Contract/Agreement for which Boeing may elect to cancel any open Orders between Boeing and the Seller, for cause, in accordance with the provisions of this Contract/Agreement, or exercise any other right of Boeing for an Event of Default under this Contract/Agreement. Seller shall include the substance of this clause, including this flow down requirement, in all subcontracts awarded by Seller for work under this Contract/Agreement.

30. OZONE-DEPLETING SUBSTANCE:

Ozone-depleting substance, as used in this clause, means any substance the Environmental Protection Agency designates in 40 CFR Part 82 as (1) Class I, including, but not limited to, chlorofluorocarbons, halons, carbon tetrachloride, and methyl chloroform: or (2) Class II, including, but not limited to hydrochlorofluorocarbons. Label products which contain or are manufactured with ozone-depleting substances in the manner and to the extent required by 42 U.S.C. 7671j (b), (c), and (d) and 40 CFR Part 82, Subpart E, as applicable:

WARNING

Contains *_________, a substance(s) which harm(s) public health and environment by destroying ozone in the upper atmosphere.

WARNING

Manufactured with *__________, a substance(s) which harm(s) public health and environment by destroying ozone in the upper atmosphere.

*Insert the name of the substance(s).

31. DESIGN CONTROL:

VMS supplier agrees not to make any change in materials or design details which would affect the part or any component part thereof with regard to (A) part number identification, (B) physical or functional interchangeability, and (C) repair and overhaul procedures and processes and material changes which affect these procedures without written approval of Boeing, and without revising the part numbers and the originals of all drawings or data.

Boeing Airplane Model Drawing Designations
Model	Drawing Prefixes
707,KC-135	3- 458- 5- 50- 65- 69- 9- 90-
727	65-
737	A 65C 65-
747	B U 631-
757	N
767	T
777	W
787	J Z

32. INCOTERMS 2000, Addendum #1:

The INCOTERMS 2000 for all orders from Buyer will be Free on Board (FOB) if by ocean and Deliver Duty Unpaid (DDU); otherwise, Boeing will pay for freight per Boeing standard routing instructions. When Buyer’s order requests delivery outside the United States of America, the Import of Record will be the Buyer placing the order. Title and risk of loss shall pass at place of shipment (i.e. for orders shipped directly from a mill, title and risk of loss shall pass at Boeing, or Boeing’s service provider’s shipping dock and Buyer will maintain adequate insurance to cover shipments at the time title and risk of loss transfer to Buyer).

33. Application of Acceptance Authority Media (AAM):

Per AS/EN/JISQ 9100 and 14CFR Part 21.2 requirements regarding the application of the Acceptance Authority Media (AAM) requirements. VMS, within its organization and its supply chain, shall ensure the use of AMM; use of AAM must be considered as a personal warranty of compliance and conformity.

The areas of focus shall include but not limited to:

Authority Media Application Errors (i.e. Omission, Typos, Legibility, etc.)
Authority Media Application Untimely Use (i.e. Documentation is not completed as planned, ‘Stamp/Sign as you go’, etc)
Authority Media Application Misrepresentation (i.e., uncertified personnel, Falsification of documentation, Work not performed as planned, etc.)
Authority Media Application Training Deficiencies (i.e. Ethics, Culture awareness, Proper Use of authority media, etc.)

34. Q31:

Seller hereby 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 and no articles (or constituent parts thereof) or the accompanying paperwork (e.g., packages, shippers, etc.) contain any Federal Aviation Administration- Parts Manufacturer Approval (FAA-PMA).

35. MFG 1: PARTS MANUFACTURED WITH VMS SUPPLIED MATERIAL

36. MFG 2: PARTS MANUFACTURED WITH SELLER SUPPLIED MATERIAL

37. RETURN ALL EXCESS MATERIAL

38. TAG & SEGREGATE ALL NON-CONFORMING PARTS

39. FINISH PROCESSORS: PARTS ARE MACHINED & DEBURRED

40. RETURN ALL DRAWING PRIOR TO PAYMENT

41. CONFLICT MINERALS: RAW MATERIAL SUPPLIERS NEED TO BE IN COMPLIANCE WITH SECTION 1502 OF THE DODD-FRANK ACT. AS A SUPPLIER, VALLEY MACHINE SHOP REQUIRES THAT YOU PERFORM DUE DILIGENCE IN EVALUATING YOUR SUPPLY CHAIN REGARDING CONFLICT MINERALS AND THAT YOU FILL OUT AND SIGN DECLARATION OF NON-USE YEARLY.

42. SELLER AGREES NOT TO MAKE ANY CHANGES IN MATERIALS OR DESIGN WHICH WOULD AFFECT THE PART OR ANY COMPONENT PART THEREOF WITH REGARD TO:

PART NUMBER IDENTIFICATION
PHYSICAL OR FUNCTIONAL INTERCHANGEABILITY
REPAIR AND OVERHAUL PROCEDURES AND MATERIAL CHANGES WHICH AFFECT THESE PROCEDURES WITHOUT WRITTEN APPROVAL OF BOEING, AND WITHOUT REVISING THE PART NUMBERS AND THE ORIGINALS OF ALL DRAWINGS OR DATA.

IMPORTANT: REQUIREMENTS THAT APPLY TO THE ACCEPTANCE OF THIS PO ARE LISTED BELOW (SEE VENDOR TYPE) AND MAY BE ACCESSED AT WWW.VMSHOP.COM. SEE “SUPPLIER REQUIREMENTS”. PARTS ARE BOEING COMMERCIAL AIRCRAFT (UNLESS OTHERWISE NOTED. PARTS HAVE NOT BEEN CONTAMINATED W/ LOW MELTING POINT METALS. BAC5616/ BAC5617/ BAC5619 POST HEAT TREAT CLEANING NOT REQUIRED.

VENDOR

RAW MATERIAL: 1, 4, 11, 12, 18, 19, 32, 41

STANDARDS: 1, 4, 8, 12, 13, 18, 19, 26, 42

PROCESSING & HEAT TREAT: 1, 3, 4, 12, 13, 18, 19, 26, 28, 38, 39, 40

MAUFACTURING: 1, 4, 5, 6, 7, 11, 12, 13, 18, 19, 22, 26, 35, 36, 37, 38, 40