Terms and Conditions: Supplier Requirements

These terms and conditions (the “Terms”) supplement any existing agreement, purchase order, or contract between the Organization and the Supplier (collectively, the “Parties”) and outline mandatory quality management and operational requirements for all products and services provided to the Organization.

1. Quality Management System (QMS)

Suppliers are encouraged to maintain a Quality Managment System that meets the requirements of ISO 9001:2015. In the absence of a certified QMS, Disco Machine and Manufacturing reserves the right to audit the supplier to ensure the supplier’s ability to meet contractual requirements.

2. Prevention of Counterfeit Parts

2.1 Counterfeit Part Control Plan

The Supplier shall implement and maintain a documented process to prevent the use of counterfeit or suspect counterfeit parts, materials, and assemblies. This process shall include, but not be limited to:

• Training of personnel.
• Procurement of parts only from original equipment manufacturers (OEMs), authorized distributors, or other approved sources.
• Risk mitigation strategies, including monitoring of obsolescence and component market trends.
• A mechanism for the traceability of components and materials.
• Methodologies for the inspection and testing of suspect counterfeit parts.

2.2 Reporting and Segregation

If the Supplier becomes aware of, or suspects, that counterfeit or suspect counterfeit parts have been furnished, the Supplier shall immediately notify the Organization and quarantine the affected materials. The Supplier shall be solely responsible for the costs associated with the replacement and re-verification of suspect counterfeit parts.

3. Notification and Approval of Changes

The Supplier shall notify the Organization in advance of any changes affecting the contracted processes, products, or services. This includes, but is not limited to:

• Changes to the design, specification, or composition of the product or service.
• Changes to manufacturing processes, equipment, or tooling.
• Changes involving the Supplier’s external providers (sub-tier suppliers) used for the fulfillment of the Organization’s order.
• Changes in the location of manufacture or service provision.

The Supplier shall obtain the Organization’s written approval prior to the implementation of any such changes. Failure to obtain prior approval may result in non-conformance rejection and cancellation of the relevant order.

4. Flow Down of Applicable Requirements

The Supplier shall be responsible for flowing down all applicable requirements, including specific customer requirements, statutory and regulatory requirements, and key characteristics identified by the Organization, to its external providers (sub-tier suppliers). The Supplier shall ensure that its external providers comply with all applicable quality and contractual requirements.

5. Provision of Test Specimens

The Supplier shall provide test specimens, as requested by the Organization, for the following purposes:

• Design approval and qualification.
• Inspection and verification of conformance.
• Investigation of non-conforming products.
• Auditing of the Supplier’s processes or products.

The required number, size, and disposition of test specimens shall be specified by the Organization or in the applicable product specifications.

6. Documented Information Retention and Disposition

6.1 Retention Requirements

The Supplier shall retain documented information (records) that provides objective evidence of conformance to all specified requirements. Unless otherwise specified in the purchase order or contract, the minimum retention period for all quality, process, and material records shall be ten (10) years from the date of the last delivery under the relevant contract.

6.2 Disposition

Upon expiration of the retention period, the documented information shall be disposed of in a secure and controlled manner, unless written permission is obtained from the Organization to retain the records for a longer period. Records shall be made available to the Organization, regulatory bodies, and customers upon request during the specified retention period.