Kelley Engineering Supplier Requirements, Terms and Conditions Agreement

General: As a supplier of Kelley Engineering, LLC, hereinafter referred to as Kelley Engineering, it is understood that your organization agrees to meet the following stipulations whenever you receive a Kelley Engineering purchase order. These requirements are, therefore, to be considered as terms and conditions to all purchases.

  1. Kelley Engineering is to be contacted (by the supplier) in the event of nonconforming product/material. Arrangements for the approval of supplier nonconforming product/material must be directed by a Kelley Engineering authorized manager or designee.

  2. The supplier is required to notify Kelley Engineering of any changes to a product and/or process and to obtain approval of such change from an authorized Kelley Engineering manager or designee.

  3. Kelley Engineering, their customers, and regulatory authorities retain the right of access to all supplier facilities involved to all associated & applicable records.

  4. Kelley Engineering performs inspection activities to ensure that purchased product meets purchase requirements. They may include:

    • Receiving inspections (of supplier products/services/documents) may be/are performed by a designated Kelley Engineering employee. Kelley Engineering 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, Kelley Engineering may inspect or audit at the supplier’s facility.

    • All incoming finished parts, bar stock, forgings, special tooling or any item that is used in the manufacture of aerospace parts must be boxed or protected during shipping Kelley Engineering retains the right to refuse any shipment because of damage that may occur because of improper packaging, etc. and return it to the supplier for replacement at the supplier’s cost.

    • Furthermore, products are inspected to ensure they meet requirements (dimensions, etc.) and the results are recorded (as appropriate). All special processes will require a Certificate of Conformity.

  5. When appropriate, Kelley Engineering may delegate the inspection authority to one of its approved suppliers. Kelley Engineering will communicate the inspection requirements and maintain a record of those approved to carry out such inspections.

  6. When Kelley Engineering or its customer intends to perform verification at the supplier’s premises, Kelley Engineering will first state the intended verification arrangements and the method of product release. This information will be communicated on the Kelley Engineering purchase order or via another acceptable purchasing arrangement.

  7. Where specified in the contract, Kelley Engineering customer or customer’s representative will be afforded the right to verify at the supplier’s and Kelley Engineering premises that subcontracted product conforms to specified requirements. Verification by the customer is not used by Kelley Engineering as evidence of effective control of quality by the supplier and shall not absolve Kelley Engineering nor its supplier of the responsibility to provide acceptable product, nor shall it preclude subsequent rejection by the customer.

  8. To prevent the purchase of counterfeit or suspect/unapproved products, to ensure product identification and traceability, and for other reasons, Kelley Engineering may 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 Kelley Engineering purchase order or may otherwise be communicated to the supplier.

  9. Records are available for review by customers and regulatory authorities in accordance with contract or regulatory requirements.

  10. Kelley Engineering may also require specific actions where timely and/or effective corrective actions to a supplier issue(s) are not achieved. These actions may include but are not limited to any of the following: withholding payment until the issue is resolved, removal of the supplier from Kelley Engineering approved supplier list, and legal actions.

  11. Documented information such as test reports, material certificates, and/or certificates of conformity shall accompany all orders.

  12. The supplier shall immediately notify Kelley Engineering and explain any circumstances, including labor disputes, which may delay the timely performance of the purchase order and shall continue to notify Kelley Engineering of any significant changes in delivery status.