External Providers (hereinafter “Provider”) to Delaware Resource Group of Oklahoma, LLC (hereinafter “DRG”), must agree to meet flow down requirements. The following terms and conditions apply:
- DRG reserves the right of final approval for products, direct & sub-tier providers, procedures, processes, and equipment supplied by Provider.
- Special processes, if required by the Purchase Order (“PO”), must be used and performed by qualified personnel. DRG may require Provider to produce documentation such as a certificate of conformity.
- DRG reserves the right to review and approve the Provider’s Quality Management System (QMS).
- Provider shall maintain the proper identification and revision status of specifications, drawings, process requirements, inspection/verification instructions and other relevant technical data.
- DRG reserves the right to evaluate, approve, or specify requirements for any designs, tests, test report data, inspection plans, verifications, use of statistical techniques, and related instructions for product acceptance, and any applicable critical items including, but not limited to, key characteristics.
- Where critical items such as raw materials present a significant operational risk, DRG will validate the accuracy of test reports.
- DRG reserves the right to designate requirements for test specimens for design approval, inspection/verification, investigation, or auditing.
- Provider is required to:
- Prevent the sale of counterfeit parts.
- Immediately notify DRG upon discovery of nonconforming product/material/service associated with the PO (including suspect or counterfeit parts) or if nonconforming product/material/service is anticipated.
- Obtain DRG’s approval for subsequent actions on all nonconforming product and component disposition related to such PO.
- Immediately notify DRG of changes in product and/or process, changes of suppliers (including sub-tier suppliers), and changes of manufacturing facility locations.
- Immediately notify DRG upon discovery of changes to applicable certifications (ISO, AS9100, etc.).
- Flow down all customer and applicable requirements to the supply chain.
- Provider is required to retain all records associated with the PO and purchased product as required by the contract but not less than DRG’s minimum 2-year retention period. Records must be made available for customer and regulatory authority review in accordance with contract or regulatory requirements but should otherwise be kept confidential. This will allow for the potential recall and replacement if the product is subsequently found to be nonconforming.
- DRG reserves the right of access by its representatives, customers, and any regulatory authorities to the applicable areas of all supplier facilities at any level of the supply chain involved in the PO and to all applicable records of such suppliers involved in the PO.
- Inspection and/or verification activities to ensure purchased product meets PO requirements may include:
- Obtaining/verifying certificates of conformity, material certificates, and other accompanying documentation as DRG deems appropriate.
- Inspection/audit at the Provider’s facility to ensure conformance with results recorded as DRG deems appropriate.
- Inspecting Provider’s products/services/documents performed by an authorized DRG employee or designee.
- DRG reserves the right to delegate inspection authority. DRG will communicate inspection requirements to the Provider.
- DRG may also require specific actions where timely and/or effective corrective action(s) by a Provider is 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 DRG’s supplier register, and legal action.
- Provider shall hereby comply with all applicable local, state, and federal laws, orders, rules, regulations, ordinances, guidelines, and directives, in addition to any flowed-down Federal Acquisition Regulations, Defense Acquisition Regulations, and any other flowed-down provisions.
- Should any of the above terms be determined inapplicable or otherwise unenforceable, the remaining terms shall still apply and be enforced.
Provider/PO Terms Rev. D.2 – 7/6/2018