BORG DESIGN SUPPLIER TERMS AND CONDITIONS

SUPPLIER QUALITY FLOW DOWN REQUIREMENTS

The following requirements apply to Purchase Orders issued by Borg Design Inc. to suppliers of parts and/or services relative to deliverable products per AS9100 and our Quality Management System.

Borg Design reserves the right of approval for product, methods, processes, and equipment, and for the release of product to Borg Design.
Seller shall interact with Borg Design regarding any question of an open PO or a shipped product.
Seller is measured for OTD and quality by Borg Design on an ongoing basis.
CERTIFICATION OF CONFORMANCE. (C of C) is required with each shipment and it must attest to the conformance of material, outside services performed, hardware, machining/manufacturing, etc. The C of C shall include at a minimum date, purchase order number, suppliers name, part number, drawing number and be signed by an authorized representative of the Seller and shall accompany each delivery of said items to Borg Design, Inc.
Material & Finish Certification – Signed Material & Finish Certification required for each shipment for all materials used in component. MUST REFERENCE BORG DESIGN, INC. PURCHASE ORDER, PART, REVISION, and SERIAL & SPECIFICATION NUMBERS, and shall accompany each delivery of said items to Borg Design, Inc.
Acceptance of an order, contract or tender from Borg Design allows our personnel, our customer representatives and statutory/regulatory agency representatives the right of entry into your facility to review any product, process or records relative to our purchase order.
If applicable to the order or service, seller shall conform to the drawing and/or specification requirements flowed to them, including revision levels imposed on drawing and/or PO and certify to those revisions.
Process Change – Seller must notify and gain Borg Design, Inc.’s approval to changes in product and/or process changes of facility location before changes are made. Drawings, specifications, process documentation and test procedures shall be resubmitted to Borg Design, Inc. for evaluation and approval.
On-time Delivery- If the Seller is delayed on fulfilling the purchase order within the confirmed delivery times, Seller must notify Borg Design of the delay and provide them with an updated delivery schedule.
No Verbal PO Changes – No changes are to be made to a purchase order without prior written notification. Changes must be completed with a valid purchase order change.
Traceability – Packing List, Invoices, and Inquiries – All paperwork must include quote/purchase order number, part number, quantity, revision, serial numbers, and/or Return Material Authorization (RMA) numbers and/or Non-Conforming Material (NCM) numbers.
Seller shall maintain a Quality System. The Seller’s quality system shall satisfy the requirements of the ISO9000 and/or the AS9100 standard, unless otherwise approved by Borg Design. Any substantial changes to the Sellers’ quality system must be communicated to Borg Design, in writing. And maintain a quality system applicable to its product and processes.
BORG DESIGN, our customer and regulatory agencies reserve the right to source inspect product and/or services prior to shipment, if annotated on the purchase order.
Rated purchase orders issued under the Defense Priority Allocation System (DPAS) shall be processed in accordance with these requirements.
Seller must comply with any special requirements, key characteristics and critical items identified on PO or drawings.
Borg Design has a PREFERENCE FOR DOMESTIC SPECIALTY METALS in all cases. Seller must purchase raw materials in accordance with DFARs 252.225-7008 and -7009 and flow down these requirements to their suppliers/vendors if specified on Purchase order.
All datasets and drawings in all forms must be treated as confidential information and protected as outlined in Borg Design’s non-disclosure agreements. All information is to be treated as proprietary information and kept confidential. All information is to be used solely for the purpose of the order only.
Seller to perform all inspections, testing, and verifications identified on the drawing, PO or applicable specifications and this documented information shall be available to Borg Design upon request.
FAI to be provided if requested on Borg Design PO and comply with the format and requirements of AS9102
All items that are delivered and that require inspection shall be accompanied by the Seller’s C of C and/or an inspection report (if required) referencing the part number, required specifications, and purchase order number.
Seller will utilize statistical techniques for product acceptance when requested on PO.
Requirements for test specimens if noted on the purchase order.
Seller must notify Borg Design of any changes in product or processes that directly affects the product or service provided to obtain Borg Design authorization/approval before the changes take Examples of changes include, but are not limited to: changes in ownership, company name, management, location of manufacture, special process suppliers, obsolescence, inspection techniques, new tooling, and significant changes to process flow. Seller must notify Borg Design of Work-Transfers such as changes within a Seller’s own manufacturing location or changes of a sub-tier supplier or changes within an existing sub-tier supplier’s location.
Failure Analysis – Failure analysis data & corrective action plan must accompany all products returned under a Return Material Authorization (RMA) process. When Borg Design, Inc. has deemed it necessary for the Seller to take corrective action, a positive response to that request must be received by Borg Design, Inc. within fifteen (15) working days.
Seller shall flow down to any sub-tier supplier all applicable requirements in Borg Design purchase order.
Seller must use customer designated sources when stated on PO.
Seller must maintain all records associated with this purchase order for 10 years unless otherwise directed on the P.O.
Seller must notify Borg Design within 24 hours if a nonconformance is identified on Borg Design owned product or material being processed at the supplier and work with Borg Design to obtain disposition.
Seller must take appropriate steps to prevent the use of counterfeit material and products with AS6174 as a guideline.
FOREIGN OBJECT DEBRIS / DAMAGE (FOD). The Seller shall employ appropriate housekeeping practices to assure timely detection and removal of residue/debris generated, if any, during operations and/or normal daily tasks and shall ensure FOD requirements are flowed down to sub-contractors and suppliers at every tier.
Packaging Requirements – Seller shall assure items are packed using materials or grade, size, and weight, providing physical protection from damage and contamination during handling and transport. (Refer to ASTM D3951-10)
Seller shall ensure that items contained in a larger shipment must be adequately packaged and protected from item-to-item contact. Such precautions include individually wrapped, bagged, or otherwise sufficiently protected from such damage.
Hazardous Materials – A safety data sheet (MSDS) must be sent with the purchased item for Borg Design, Inc. to accept any hazardous material. All hazardous material shipments must comply with local, state, and federal health, safety, and environmental regulations and labeled according to DOT-IATA HazMat requirements.
All Sellers are required to comply with the Equal Employment Opportunity requirements of FAR 52.222-22.
Sellers must ensure that their employees are aware of:
1. their contribution to the product or service conformity
2. their contribution to product safety
3. the importance of ethical behavior
Sellers must abide by the requirements of 41 CFR 60-1.4 (A), 60-300.5 (A) and 60-741.5 (A). These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities and prohibit discrimination against all individuals based on their race, color, religion, sex, sexual orientation, gender identity, or national origin. Thus, Seller shall commit to taking affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, protected veteran status, or disability. Also, to the extent applicable, the employee notice requirements set forth in 29 CFR, part 471, appendix A to subpart A, are hereby incorporated by reference into this purchase order.
Access to Facilities, Documents, or Systems- Seller shall perform identity screenings, work authorization verifications, and background checks on any Seller Personnel seeking access to Borg Design’s or Borg Design’s Customers’ (i) facilities, (ii) computer systems or databases, or (iii) Borg Design Information (collectively, “Access”) to identify persons or entities ineligible for such Access. In furtherance of this obligation, Seller shall, in advance of any request or grant of such Access:
1. Verify the identity and requisite work authorization of Seller Personnel requiring Access.
2. Except to the extent not permissible by applicable Law, perform a background screen on Seller Personnel using a company approved by Borg Design evidencing that (i) Seller Personnel do not have any criminal convictions, or (ii) if they do have criminal convictions, such Seller Personnel were hired only after an individualized assessment was conducted in accordance with all applicable Laws and taking into consideration the nature and severity of the underlying offenses, the nature and scope of the Access to be granted, the specific jobs at issue, and the length of time since the convictions.
3. Not seeking Access for any Seller Personnel ineligible for such Access based on the failure to meet the above criteria, and notify Borg Design immediately, in writing, if any Seller’s Personnel with Access is no longer eligible.
4. Seller agrees that Borg Design shall have sole discretion as to whether Seller is granted Access and agrees that any Access privileges granted to Seller will be defined by Borg Design. Borg Design reserves the right to impose additional requirements before granting Seller Personnel Access, as applicable, to meet any additional compliance related or site-specific policies and procedures.
5. Sellers are responsible for ensuring that any Seller Personnel requiring Access meets the Access requirements set forth herein. Seller shall immediately notify Borg Design if, at any time during the performance of the Order, (i) any Seller Personnel information relied upon in making an Access determination has changed or been rendered inaccurate for any reason, or (ii) the need for Access by any Seller Personnel ceases. The need to Access shall automatically cease for any Seller
6. Seller or Seller Personnel’s refusal or failure to meet Borg Design’s Access requirements at any time during the performance of the Order may result in Borg Design’s refusal to grant Seller Personnel Access. Any such refusal by Borg Design shall not constitute an employment action by Borg Design Personnel who are terminated, transferred, or otherwise no longer employed by Seller.
7. Seller acknowledges and agrees that any breach of this Section may result in a violation of Law for which Borg Design, Seller, and Seller Personnel may be liable.

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