DUNS#: 117048874 CAGE#: 8AYM0
Agreement Acceptance:
The Buyer’s Agreement/Purchase Order is accepted subject to the terms and conditions set forth in this document, unless the same have been consented to in writing by the Seller. These conditions shall override any terms and conditions stipulated, incorporated or referred to by the Buyer in any purchase order, negotiations, correspondence or any other means. The Agreement/Purchase Order by the Buyer shall be evidence of the Buyer’s approval of and consent to the terms and conditions contained herein.
Quotation and Pricing:
PHES Machining will strive to maintain quoted prices; however, prices are subject to change, without notice, due to various factors including materials, special processing requirements, and/or manufacturing services cost. Proposals are quoted in US dollars.
Payment:
Payment terms are net thirty (30) days from the date of invoice, subject to approval of Buyer’s credit. Unpaid invoice balances will be subject to any collection costs or fees incurred (unless special terms have been arranged). Accounts with unpaid balances over 60 days will be placed on credit hold and no further shipments will be released.
Delivery:
Delivery terms are FOB Origin (Seller’s Dock). All costs, and/or liabilities associated with any uninsured packages lost in transit will be at the Buyer’s expense.
Material Certification:
PHES Machining certifies that to the best of our knowledge that the products delivered conform to all requirements of applicable specifications and drawings.
Export Compliance:
Buyer shall comply with all export control laws and regulations of the United States, including the International Traffic in Arms Regulations (ITAR) and Export Administration Regulation (EAR). The Buyer is responsible for complying with any regulation or legislation governing the export of goods, and importation of goods into the country of destination and the payment of any taxes, duties, other expenses.
Warranty and RMA:
No Returns will be accepted by PHES Machining unless authorized with a Return Material Authorization (RMA) number. Nonconforming material must be reported within 30 days of receipt at customer’s facility. Liability is limited to replacement of, or credit for, such material, and in no case shall exceed the invoice value for such material.
Severability:
If any provision of the Purchase Order/Agreement is held invalid or unenforceable, the remaining provisions will remain in full force and effect, and the invalid or unenforceable provision will be limited or eliminated to the minimum extent necessary.
Limitation of Liability:
PHES Machining, Inc shall not be liable for any incidental, punitive, indirect, special, or consequential damages however arising or caused.
Indemnity:
The Buyer agrees to indemnify the Seller against any loss, damage, costs, claims or expenses incurred by the Seller in respect of liability established against the Seller by a third party arising out of or in connection with the contract of supply.
Laws and Disputes:
Any Agreement/Purchase Order shall be governed by the laws of the state of California. Any claim arising out of, or relating to this Agreement/Purchase Order, or the breach thereof, shall be settled by binding arbitration which shall be administered in the city of Riverside.
Order of Precedence:
Any inconsistencies between these terms and subsequent Agreements/Purchase Orders shall be resolved in accordance with the following descending order of precedence: (i) Terms and Conditions of Sale and Service set forth in this document, (ii) Other Agreement(s) and attachments thereof; (iii) Statement of Work; (iiii) The Purchase Order.
The Supplier requirements below apply to all Suppliers and sub-tier Suppliers to PHES Machining (PHES) providing materials, products and services. Acceptance of a Purchase Order from PHES Machining binds the Supplier to the Terms and Conditions listed in the Purchase Order and the requirements listed in this document. The Supplier is not authorized to outsource any portion of the Purchase Order requirements unless specifically authorized by PHES Machining and must flow down these requirements to any sub-tier Suppliers. Note that these requirements correspond with the requirements of PHES Machining, our customers and with the requirements of AS9100D, Clause 8.4.3.
Q1. Agreement Acceptance:
PHES Purchase Order provides information regarding the processes, products, and services to be provided including the identification of relevant technical data (e.g., specifications, drawings, process requirements, work instructions).
Q2. Identification and Revision:
Suppliers shall maintain the identification and revision status of the Buyer’s specifications, drawings, process requirements, inspection/verification instructions and other relevant technical data.
Q3. Certificate of Conformance:
Each shipment must be accompanied by one legible copy of a statement of conformance unless otherwise noted in the Purchase Order. A certificate of conformance (C of C), supplied with the shipment must provide at a minimum: Supplier name, part number, purchase order number, quantity of parts, engineering revision, serial numbers (if applicable), and title and signature of authorized Supplier representative.
Q4. Material and Process Certifications:
Each order shall be accompanied by one legible copy of a Certificate of Compliance (CofC). Material certifications shall show quantitative analysis of each element and physical testing as required by specifications referenced. Traceability for Raw Material is required and shall be retained and provided to PHES with product. Final acceptance of product shall be at PHES after receiving inspection. Certification of heat treatment must show the type of treatment and specifications, hardness range, percentage of parts tested, tensile test results (as applicable by part), type of test performed, specifications and any other information required by the drawing/specifications. The laboratory performing a test shall be identified and any certifications signed by tester and the name of the heat treat Supplier must be listed.
Q5. Competency and Training:
Suppliers shall ensure that employees and people working on its behalf are competent and trained in accordance with the requirements of AS9100D, where applicable.
Q6. Supplier Interactions and Nondisclosure:
In addition to the other requirements recorded within this document, Suppliers shall hold all information received from PHES in confidence and no third-party request for information shall be authorized unless approved, in writing, by PHES.
Q7. Supplier Performance Monitoring:
PHES Machining will score Suppliers based on Quality and On-Time Delivery. If at any time Supplier has reason to believe that deliveries will not be made as scheduled, the Supplier shall immediately give the Buyer written notice setting forth the causes of the anticipated delay. Such notice shall not be construed as a waiver by the Buyer of any of its rights that may exist at law or under this Order. If Supplier fails to make shipment in accordance with the time specified in the Order, Buyer may (refuse any Goods and cancel this Order, in whole or in part, and any advance payments made to Supplier shall be returned to Buyer within five (5) calendar days after such cancellation. In addition to any other rights and remedies that Buyer may have, in the event of Supplier’s failure to make timely shipment under this Clause or failure to meet any other delivery obligation, Supplier shall be responsible for all shipping costs and expenses incurred with respect to such failure, including the costs of expediting shipment with respect to late deliveries. Suppliers will be issued corrective actions as warranted, and Suppliers that fail to perform in these areas may receive further Corrective Actions and may be considered for conditional status or removal from PHES’ Approved Supplier List.
Q8. Verification and Validation Activities:
PHES and its customers reserve the right to perform verification and/or validation activities at the Supplier’s premises.
Q9. Test, Inspection, and Verification Including Production Process Verification):
For Purchase Orders to calibration service providers, all gauges and measuring equipment must be calibrated using standards traceable to the National Institute of Standards and Technology (NIST). All provided calibration certifications must specifically state this traceability. Suppliers will maintain a quality and/or inspection system that will ensure all goods and services conform to contract requirements whether manufactured or processed by Supplier or procured from Sub-Tier Suppliers, and that fully complies with the requirements of AS9100D.
Q10. Quality System Requirements:
Supplier’s Quality Management System (QMS) shall be in accordance with ISO 9001, AS9100, AS9120, ISO 17025, requirements or equivalent unless otherwise approved by PHES Machining.
Q11. Customer Designated Sources:
When required by PHES or by PHES customers, Suppliers will use customer specified sources flowed down on the Purchase Order.
Q12. Notification of Nonconformance:
Supplier product discovered after shipment by the Supplier to be nonconforming to any engineering drawing and/or Purchase Order requirement shall be immediately disclosed to PHES upon discovery, including but not limited to quantity shipped, date shipped, and the extent of the nonconformance. Suppliers that receive notification of Nonconforming product shall take appropriate action to contain the nonconforming condition and prevent it from re-occurrence. The Supplier must obtain buyers written approval for nonconforming product disposition. The Supplier will be notified if formal Corrective Action is required to be submitted to PHES. The response shall be submitted within 1 week of issue or a time frame agreed upon between PHES and the Supplier.
Q13. Prevention of Counterfeit Parts:
Suppliers shall have a system in place to detect and prevent the use of counterfeit, suspect counterfeit, unapproved, or suspect unapproved parts.
Q14. Notification of Process Changes:
Suppliers must notify PHES in writing of changes in ownership, product and/or process, suppliers, and manufacturing/distribution facility location.
Q15. PHES Customer Requirements Flow Down:
Suppliers shall flow-down to Sub-Tier Suppliers all applicable requirements as required by the Purchase Order either specifically or by reference.
Q16. Test Specimens or Samples:
When requested by PHES Machining or its customers, Suppliers will provide test specimens for inspection/verification, investigation and/or auditing purposes.
Q16. Documented Information & Record Retention:
Unless otherwise specified on the Purchase Order, the latest revision of part, process, or material shall apply. All certifications, test reports, and inspection reports, as well as receiving inspection, in-process inspection, final inspection, and calibration records shall be retained for a minimum of ten years, unless otherwise specified by PHES Machining. These records will be made available to PHES and PHES customers, or regulatory agency upon request.
Q17. Right of Access:
PHES and PHES customers reserve the right to perform a routine visit or an on-site inspection of the Supplier’s facility, if necessary. PHES will give reasonable notification to the Supplier prior to the visit or on-site inspection. The on-site inspection may include a surveillance audit of the Supplier’s facilities, operations, and Quality Management System (QMS). The Supplier shall furnish, at no cost, the necessary data as required by applicable drawings, Purchase Order, specifications, and inspection instructions to facilitate the on-site audit.
Q18. Awareness:
Suppliers will ensure personnel working on their behalf are aware of their contribution to product or service conformity, their contribution to product safety, and the importance of ethical behavior.
Q19. Supplier Corrective Action:
In response to Corrective Action Requests, Suppliers shall advise PHES of root cause determination, corrective action taken to prevent recurrence of reported problems and/or discrepancies, and effectively dates of the planned corrective action(s). Suppliers shall maintain a corrective action system that determines the effectiveness of such corrective actions, and that prevents shipment of nonconforming articles without prior approval from PHES.
Q20. Foreign Object Debris (FOD) Prevention:
Suppliers are required to establish and maintain a Foreign Object Debris (FOD) prevention program that employs appropriate housekeeping practices to assure timely detection and removal of residue/debris generated, during operations and normal daily tasks.
Q21. Packaging and Shipping:
Suppliers shall package products to prevent damage during shipment. Protective insulating material including double box method should be used when necessary to ensure that procured articles are free from damage during transit. The protective abilities of the shipping package/box shall not be degraded by over packing.
Q22. Conflict Minerals:
Suppliers agree to not knowingly supply products that contain “Conflict Minerals" (tin, tantalum, tungsten and gold) from the Democratic Republic of the Congo (“DRC”) and adjoining countries, as described in section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “ACT”).
