Supplier Terms and Conditions and Quality Assurance Clauses

Revised May 18th, 2026

Right of Entry

All work and material under this contract is subject to inspection and test by FMI Holdco. or its customer(s) at any point during the manufacturing or processing sequence(s). If any inspection or test is required to be performed by FMI or its customer(s) at the External Provider and/or sub-tier, the External Provider will provide the necessary access, facilities, equipment and support for the safety and convenience of FMI or its customer(s) inspectors/auditors in the performance of their duties.

Quality Assurance Clauses

Quality assurance clauses 1 through 13 shown below are in addition to the standard terms and conditions of this purchase order.

1. CERTIFICATION: External Provider shall provide a “Certificate of Conformance” that material and / or articles meet all provisions of the FMI Purchase Order including the latest specification revisions and applicable change orders or deviations. Certifications must accompany each delivery against the purchase order and must contain at a minimum the following:

· Purchase Order Number

· Certification Number

· Part Number & Part Revision

· Heat Lot Number

· Serial Number (If Applicable)

· A statement that the materials/processes conform to the applicable specifications along with physical /electronic signature or stamp with title of seller’s authorized personnel signing the certificate

Note: Records and all associated documentation must be maintained on file and available for review by FMI and its Customers. Retention Period for fracture critical items is for the life of the program. All other programs have a retention period of ten (10) years, or however long as required by customer.

2. INSPECTION SYSTEM: Unless otherwise specified on the Purchase Order, the External Provider shall have an adequate inspection system for monitoring and measurement of materials/products fabricated/manufactured in their facility. Calibration procedures must meet, as a minimum, the requirements of ISO17025, ANSI/NCSL Z540-1 & ISO 10012-1. External Provider’s inspection system may be periodically audited by FMI and/or by its customers.

3. Articles or Materials shall be manufactured or produced in accordance with applicable “Engineering Requirements i.e. Drawing, Specifications, MBD’s”. Deviations may be made only by written amendment to the Purchase Order when authorized by FMI’s Material Review Board.

4. APPROVED FACILITIES: It is the External Provider’s responsibility to utilize only approved facilities for processing used in work relating to this order.

5. PRESERVATION AND PACKAGING REQUIREMENT: Unless otherwise specified, the External Provider shall maintain controls to assure compliance with preservation, packaging and shipping requirements of this order. The use of commercial practices does not relieve the External Provider from the responsibility of packaging in a manner that will ensure receipt at FMI in an acceptable condition.

6. FMI FURNISHED RAW MATERIAL: Unless otherwise specified, material furnished to External Provider shall be used in the manufacture of articles specified in this order. Materials scrapped in excess of allowable tolerances shall be replaced by FMI at External Provider’s expense plus any special charges. Unless otherwise specified, materials furnished shall not be under shipped. Rejected materials shall be identified and segregated from acceptable materials and returned to FMI. A formal rejection report along with root cause analysis shall accompany any rejected material. Remnants of the raw material provided to external provider, if any, shall return to FMI.

7. FMI FURNISHED TOOLING/EQUIPMENT: Unless otherwise specified, all tooling and equipment furnished for this order shall be maintained in good condition and used for the manufacture of articles for FMI. Tooling/equipment shall be available for examination by FMI personnel and/or returned to FMI upon request or termination of order.

8. REJECTED PRODUCT/MATERIAL: In the event that hardware is rejected at the External Provider’s facility, FMI shall be notified of nonconforming processes, products, or services and External Provider shall obtain disposition from FMI. The following applies: External Provider will be charged or debited one percent (1%) of the value of the hardware or a minimum of $250 per rejection tag exclusive of the material disposition.

9. COUNTERFEIT PART PROTECTION: Unless otherwise specified on the Purchase Order, the External Provider shall have Counterfeit Parts Protection plan “CPP” that contains all elements listed in AS6174B paragraph 3.1.1 through 3.1.9. If electrical, electronic or electromechanical parts are present, Supplier/Vendor must also meet AS5553E.

10. DISCLOSURES / NOTIFICATIONS: In the event that delivered hardware is found to be nonconforming, External Provider shall notify FMI in writing on company letterhead and include a clear description of the discrepancy, identification of all suspect parts, FMI PO number, serial numbers (if applicable) and any information relating to the Root Cause / Corrective Action steps initiated to address the defective condition, and preventive measures taken to preclude recurrence of the process failure.

11. QUALITY MANAGEMENT SYSTEMS: External Provider shall implement and maintain a quality management system in accordance with AS9100 and/or ISO9001 and be in compliance with ITAR Regulations. Mandatory customer certification requirements will be flowed down through the PO or contract if/as necessary.

12. EXTERNAL PROVIDER SUB-TIER REQUIREMENTS: The External Provider shall flow down and make available the requirements of the Buyers Purchase order and this document to their Sub-tiers. It is External Provider’s responsibility to ensure compliance of Sub-tier sources for all applicable requirements and to maintain documented evidence of conformance.

13. CLIMATE CHANGE AND SUSTAINABILITY: The External Provider is expected to comply with all applicable environmental laws and use reasonable efforts to minimize the environmental and climate-related impacts associated with the goods and/or services supplied under this Purchase Order. FMI reserves the right to consider External Provider’s environmental and sustainability performance in supplier evaluation and ongoing business decisions.

The following quality assurance clauses (14 through 17) are applicable when specified on an FMI purchase order.

14. External Provider to furnish date of manufacture and shelf life on the material certification of materials requiring age control. Time sensitive material shall be furnished with a minimum of 65% of its remaining shelf life when the part is delivered to FMI. Shelf-life duration, date of manufacturing and date of expiration shall be listed on the material certification, and or product when applicable

15. GOVERNMENT INSPECTION: Government inspection is required prior to shipment from your plant. Upon receipt of this order, promptly notify the Government Representative who normally services your plant so that appropriate planning for government inspection can be accomplished. Upon receipt of an order, promptly furnish a copy to the Government Representative, if none, to the nearest Army, Navy, Air Force, or Defense Supply Agency inspection office. In the event the representative or office cannot be located, our purchasing agent should be notified immediately.

16. FMI SOURCE INSPECTION REQUIRED: External Provider shall request FMI Source Inspection for product verification prior to shipment from their facility. Acceptance of units shall not relieve the External Provider of the responsibility of manufacturing units as defined in an FMI purchase order. All requests shall be made to FMI’s QA office, providing Purchase Order number, part number and revision, part name and quantity to be inspected. Advance notice of 48 hours needs to be given for scheduling purposes. External Provider shall provide inspection tools, test equipment, fixtures and personnel as requested to verify the units’ compliance to the purchase order requirements.

17. EXTERNAL PROVIDER FIRST ARTICLE: External Provider shall perform first article inspection on first unit produced during production of this order. First Article Inspection report to accompany first shipment of units and comply with AS9102 requirements. External Provider shall not continue manufacturing the remaining balance of parts on the Purchase Order without Written approval from FMI Quality for the FAI Unit.

Cyber Security Clauses

1.	Safeguarding of Controlled Unclassified Information	Supplier / Vendor must implement adequate security measures to protect CUI, which includes confidentiality, integrity, and availability of information.
2.	Cyber Incident Reporting	Supplier / Vendor must report any cyber incident to the DoD within 72 hours of discovery.
3.	Security Assessment	Supplier / Vendor must conduct a thorough security assessment of their information systems and submit a summary of the assessment to the DoD.
4.	Compliance With NIST SP 800-171	Supplier / Vendor must comply with the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171, which outlines the security requirements for protecting CUI in non-federal information systems and organizations.
5.	Flow Down Requirements	Supplier / Vendor must ensure that their subcontractors also comply with the DFARS 252.204-7012 regulation