National Microchip Purchase Order Terms and Conditions
As a supplier to National Microchip, you become a key contributor to the products and services that we deliver to our customers. We value the conformance of your products and services to our specifications and requirements, your contribution to our product’s safety, and your ethical business practices. National microchip will monitor and measure our suppliers performace for quality, on-time delivery, and ethical behavior. If you are bidding on one of our RFQs, it is understood that your organization agrees to meet the following requirements.
These terms and conditions apply to all external suppliers and sub-tier suppliers which furnish products, processes, or services to be incorporated into National Microchip contractually identified products or services delivered.
1. Suppliers must use National Microchip customer-approved special process sources (anodize, heat treat, welding, etc.) when indicated on a National Microchip purchase order.
2. The supplier must contact National Microchip in the event of nonconforming product/material. Arrangements for the approval of supplier nonconforming product/material must be as directed by a National Microchip authorized manager or designee.
3. The supplier shall notify National Microchip of any changes to a product and/or processes, including changes of external providers or location of manufacture, that may affect conformance to specifications or requirements, and to obtain approval from an authorized National Microchip manager or designee prior to production. If a First Article of Inspection (FAI) was required by the contract for the first product, a new FAI shall be required from the supplier.
4. National Microchip, our customers, and regulatory authorities retain the right of access to supplier:
a. Facilities involved in the aircraft product order.
b. Records applicable to product conformance to specifications, which shall be retained for four years from date of purchase order and archived beyond that time.
5. National Microchip will require our external providers to apply the appropriate controls to their direct and sub-tier external providers to ensure that product requirements are met. The appropriate controls may include customer/regulatory/AS9100/AS9120 specific requirements and will be indicated on the National Microchip purchase order. This may also include using National Microchip customer-designated or approved external providers, including process sources.
6. National Microchip performs inspection activities to ensure that purchased product meets requirements, including:
a. Receiving inspections (of supplier products / services / documents) performed by a designated employee. National Microchip verifies the authenticity of the appropriate certificate of conformity, material certificates, etc. and other accompanying documentation by review and comparison (as is appropriate) to the drawing and/or industry specifications, or by other means. When necessary, National Microchip may inspect or perform an audit at the supplier’s facility.
b. Product inspections to ensure they meet requirements, dimensions, etc. Special processes (anodizing, heat treat, welding, etc.) where compliance cannot be verified by inspection will require a Certificate of Conformity.
c. Product/service conformity and on-time delivery will be monitored by National Microchip
7. When National Microchip or its customer intends to perform verification at the supplier’s premises, National Microchip will first state the intended verification arrangements and the method of product release. This information will be communicated on the National Microchip RFQ, purchase order, or via another acceptable purchasing arrangement.
8. To ensure product identification and traceability, National Microchip will institute controls that include the requirement of Material Certificates, Certificates of Conformity, and/or other supporting documentation from its suppliers as is appropriate. These requirements may be specified on National Microchip RFQ, purchase order, or may otherwise be communicated to the supplier.
9. All special process must be performed by qualified and competent persons.
10. National Microchip requires that the Supplier have policies and procedures to identify potential Counterfeit Parts from suppliers. Seller shall immediately notify National Microchip with the pertinent facts if Supplier becomes aware of or suspects that Counterfeit Parts may have been used in a product delivered to National Microchip. If products delivered under this order constitutes or includes Counterfeit Parts, Supplier shall, at its expense, promptly replace such Counterfeit Parts with genuine parts conforming to the requirements of this order. Notwithstanding any other provision in this order, Seller shall be liable for all costs relating to the removal and replacement of counterfeit parts.
11. National Microchip may also require specific actions where timely and/or effective corrective actions to a supplier issue are not achieved. These actions may include but are not limited to any or all of the following: withholding payment until the issue is resolved, removal of the supplier from National Microchip Approved Supplier List, and legal action.
12. Supplier and those person’s involved are expected to act ethically, honestly, and with the highest standard of personal integrity at all times in the performance of work, product / service conformity and product safety.
13. National Microchip will not approve vendors that are debarred from doing business with the US Government or are listed on the US Department of State list of debarred persons / entities.
14. Supplier may be asked to provide test specimens for design approval, inspection/verification, investigation or auditing.