Supplier Quality Manual

1) Purpose

This Supplier Quality Manual defines the quality, inspection, documentation, and compliance requirements for goods and services provided to Mach Industries. It outlines supplier responsibilities associated with acceptance of a Mach Industries Purchase Order (PO) and the applicable Quality Codes (QCs), each of which represents a specific requirement referenced in the PO.

Mach Industries operates in a dynamic development and production environment with both commercial and defense suppliers. This manual scales quality requirements based on risk, maturity, and application, while maintaining compliance with ISO, AS9100, and FAR/DFARS standards.

Suppliers must comply with all QCs and PO requirements. This manual defines those expectations to ensure consistent understanding and execution across the Mach Industries supply base.

2) Scope

This manual applies to suppliers providing goods or services incorporated into Mach Industries products, prototypes, or test articles when Quality Codes are referenced on a Mach Industries purchase order.

The requirements in this manual apply only to the Quality Codes explicitly identified on the purchase order; not all sections or codes apply to every supplier or contracted item(s).

This manual does not apply to indirect purchases such as office supplies, general IT services, facilities support, or other non-product-related goods and services, unless explicitly stated on the purchase order.

Where customer, regulatory, or contractual requirements exceed the guidance in this manual, those requirements will take precedence.

3) QC Overview

QCs are used by Mach Industries to specify quality and compliance requirements beyond the standard PO Terms & Conditions. These codes are applied selectively based on the product, service, or application being procured.

Each QC corresponds to a defined requirement described in this manual. When a code is referenced on a PO, the supplier is expected to comply with the requirements as defined in this document.

Quality Codes are intended to supplement, not replace, applicable drawings, specifications, standards, or contractual requirements referenced on the purchase order.

4) Authority

In the event of a conflict between the PO, this manual, and supplier documentation, the order of precedence for requirements shall be: (1) the purchase order, (2) this manual, and (3) supplier-controlled documents.

5) Supplier Acknowledgement

Suppliers are responsible for reviewing the purchase order and understanding the QCs referenced. QCs are intended to supplement, not replace, applicable drawings, specifications, standards, or contractual requirements referenced on the purchase order.

By accepting a Mach Industries PO, the supplier acknowledges and agrees to comply with the applicable QCs and the requirements defined in this manual. All prior quality terms and conditions are superseded by the requirements contained herein.

Mach Industries verifies the adequacy of these requirements prior to issuing a Purchase Order and reserves the right to update or modify these requirements at any time.

Questions regarding purchase order requirements or Quality Codes should be directed to the Mach Industries contact identified on the purchase order.

6) List of Acronyms

7) General Requirements

The following General Requirements are applicable to all contracted goods and services delivered to MACH Industries.

General Requirements Index

General Requirements Definitions

GR 01 – Communication & Clarifications

Suppliers must communicate proactively with Mach Industries when questions arise regarding purchase orders, Quality Codes, or requirements defined in this manual.

Requests for clarification, interpretation, or deviation should be submitted prior to shipment to avoid delays, rework, or nonconformance. Verbal agreements or assumptions should be confirmed in writing.

Mach Industries will communicate quality-related requirements through the purchase order, supporting documentation, or direct written correspondence. Suppliers should not assume requirements based on prior orders unless explicitly stated on the current purchase order.

Changes to requirements, clarifications, or approvals provided by Mach Industries will be documented and retained as part of the purchase record.

GR 02 – Product Safety

Suppliers must ensure that products delivered to Mach Industries are manufactured, inspected, handled, and delivered in a manner that preserves product safety and reliability.

Suppliers must immediately notify Mach Industries if they become aware of any condition that may affect the safety, reliability, or conformity of delivered or in-process products.

Suppliers must ensure that personnel performing work affecting product safety are competent and understand the importance of maintaining product safety throughout manufacturing, inspection, handling, and delivery.

GR 03 – Ethical Conduct

Suppliers must conduct business with Mach Industries in an ethical and lawful manner and must comply with all applicable legal and regulatory requirements.

Suppliers must maintain integrity and accuracy in all documentation, certifications, inspection records, and test reports provided to Mach Industries.

Suppliers must not knowingly provide counterfeit, fraudulent, or misrepresented products.

Suppliers must ensure that their operations and supply chains are free from forced labor, slave labor, involuntary labor, human trafficking, and child labor. Suppliers must comply with applicable labor laws and internationally recognized human rights standards governing employment practices.

Suppliers must comply with applicable laws and regulations governing responsible sourcing of materials and components, including requirements related to forced labor, human trafficking, and other restricted or regulated sources.

Suppliers must notify Mach Industries if they become aware of any situation that could compromise product integrity, regulatory compliance, ethical business practices, or contractual obligations related to supplied products.

GR 04 – Supplier Performance Management

Mach Industries monitors the performance of its supply base as an input to management review in accordance with ISO 9001 Clause 9.3 and Clause 8.4. Performance metrics include, at minimum, On-Time Delivery (OTD) and Materials Conformance.

Supplier performance data is evaluated against defined requirements. Continued failures to meet requirements may result in additional oversight, supplier corrective action, or removal from the Approved Supplier List (ASL).

GR 05 – Product Conformance

Suppliers are responsible for ensuring that all products and services delivered to Mach Industries conform to purchase order requirements, drawings, specifications, and applicable Quality Codes. Verification, inspection, or acceptance by Mach Industries does not relieve the supplier of this responsibility.

GR 06 – Revision Control

When supplying products to Mach Industries drawings or referenced specifications, the supplier must use the exact revision identified on the purchase order and the associated drawing package. The purchase order revision and drawing revision must match.

Unless otherwise specified in the purchase order, the supplier must use the latest revision available at the time the purchase order is issued. If the purchase order and drawing revisions do not align, or if a referenced specification has been cancelled, the supplier must stop and notify Mach Industries prior to manufacture or shipment.

GR 07 – Change Notification

For build-to-print or Mach Industries–controlled drawings, the supplier must not change design, materials, manufacturing processes, inspection methods, or controls that could affect fit, form, function, performance, or reliability without prior written approval from Mach Industries.

When the supplier holds design authority, the supplier must notify Mach Industries of any proposed changes that could affect product requirements and must obtain written approval before manufacture or delivery.

Examples of changes requiring notification and written approval include, but are not limited to:

• Change in manufacturing location or facility
• Change in manufacturing process or method
• Change in special process providers
• Change in materials or material sources
• Change in inspection methods or key equipment
• Change in sub-tier suppliers performing quality-affecting work

GR 08 – Inspection, Testing, and Acceptance

The PO and applicable QCs define inspection and testing requirements for supplied goods or services. The supplier must perform all required inspection and testing prior to shipment and ensure that delivered items conform to applicable material requirements and applicable QCs.

Unless the purchase order states otherwise, final acceptance occurs at Mach Industries’ receiving facility.

GR 09 – Nonconformance and Corrective Action

If a product or service does not conform to purchase order requirements or applicable Quality Codes, Mach Industries may reject the product or require rework or other disposition.

When Mach Industries requires corrective action, the supplier must provide a timely response that identifies the root cause and implements actions to prevent recurrence.

Suppliers are required to establish an internal process for reviewing, controlling, and promptly notifying Mach Industries of any nonconforming materials. All nonconforming items must be clearly identified, documented, evaluated, segregated, and dispositioned to prevent unintended use or shipment.

Unless otherwise specified in the purchase order, suppliers are authorized to perform limited material review and disposition of internally identified nonconforming products using the following options:

• Rework – to meet applicable requirements
• Scrap
• Return to Vendor (RTV) – return to the supplier’s sub-tier source for rework or replacement

If the supplier wishes to request a Repair or Use-As-Is (UAI) disposition, a formal request must be submitted to Mach Industries via a completed Technical Inquiry Report (TIR) and sent to the authorized Procurement Representative. These disposition types require prior approval from Mach Industries before the product can be shipped. All Repair and UAI requests must include documented root cause analysis and corrective actions.

Nonconforming materials may not be shipped without an approved TIR from Mach Industries. A copy of the approved TIR must accompany the product at the time of shipment. Any product received by Mach Industries that deviates from the drawing, specification, or purchase order requirements without an approved TIR will be rejected.

GR 10 – Supplier Corrective Action Request (SCAR)

The supplier agrees to provide a formal response to all Supplier Corrective Action Requests (SCARs) within the timeframe specified on the request. Failure to respond in a timely manner may negatively impact the supplier’s quality rating and could lead to suspension or removal from Mach Industries’ Approved Supplier List (ASL).

The supplier must prioritize thorough root cause analysis and implement effective corrective actions to prevent recurrence of nonconformance. Any failure analysis conducted as part of the investigation must be documented and included in the SCAR response.

Unless otherwise specified, the supplier must provide a written corrective action response within 10 business days of notification. The response must include: (a) description of the root cause, (b) corrective actions taken, and (c) actions implemented to prevent recurrence. Mach Industries may request additional documentation, containment actions, or verification of corrective action effectiveness.

GR 11 – Supplier Escape Notification

If a supplier discovers that it may have delivered nonconforming products to Mach Industries, the supplier must notify Mach Industries immediately. The notification must identify the affected product, lot or serial numbers, purchase order number, quantity, and nature of the nonconformance.

The supplier must provide containment actions and corrective actions as soon as they are identified and cooperate with Mach Industries to assess potential impact and determine appropriate disposition of affected products.

GR 12 – Packaging, Handling, and Preservation

The supplier must package, handle, and preserve products in a manner that prevents damage, deterioration, or contamination during storage and shipment.

The supplier must use packaging methods appropriate for the product type and consider factors such as fragility, electrostatic sensitivity, environmental exposure, and shelf life, as applicable.

GR 13 – Sub-Tier Supplier Control

The supplier must flow down applicable purchase order requirements and Quality Codes to any sub-tier suppliers used to fulfill Mach Industries purchase orders. The supplier must ensure that sub-tier suppliers understand and comply with all applicable Mach Industries’ requirements, drawings, specifications, and Quality Codes.

The supplier remains responsible for the conformity of all products and services provided by sub-tier suppliers. Use of sub-tier suppliers does not relieve the supplier of responsibility for product conformity, quality, or compliance with Mach Industries requirements.

GR 14 – Counterfeit Parts Prevention

The supplier must implement controls to prevent the introduction of counterfeit, suspect, or unapproved parts into Mach Industries products. The supplier must procure components directly from original manufacturers or their authorized distributors whenever possible.

When the supplier does not obtain parts from an original manufacturer or authorized source, the supplier must ensure authenticity and traceability and must identify such parts upon request.

GR 15 – Foreign Object Debris (FOD) Prevention

The supplier must maintain a documented Foreign Object Debris (FOD) prevention program consistent with NAS 412 or equivalent industry standard. The program must address identification, prevention, detection, and removal of foreign objects throughout manufacturing, inspection, assembly, and shipping.

The supplier must ensure that all personnel performing work under this purchase order are trained in FOD awareness and prevention. FOD control measures must be implemented and maintained at all stages of production and inspection.

Products must be packaged and delivered in a manner that prevents the introduction of foreign objects. Evidence of FOD prevention controls may be requested by Mach Industries at any time.

GR 16 – Right of Access

The supplier must grant Mach Industries, its customers, and applicable regulatory authorities’ reasonable access to facilities, records, and processes related to the fulfillment of Mach Industries purchase orders. This access may include the ability to review relevant records, witness manufacturing or inspection activities, and verify compliance with purchase order and regulatory requirements. Granting access does not relieve the supplier of responsibility for product conformity.

GR 17 – Records Retention

The supplier must retain records supporting compliance with applicable Quality Codes and purchase order requirements for a minimum of seven (7) years from the date of shipment, unless the contract or regulation specifies a longer period. Records must be legible, identifiable, and traceable to the applicable purchase order, part number, lot, batch, or serial number where applicable.

The supplier must make these records available to Mach Industries upon request during the retention period.

GR 18 – Revision Control of this Manual

Mach Industries controls this Quality Manual. The current revision applies unless the purchase order states otherwise. Suppliers must ensure they use the latest applicable revision of this manual when fulfilling Mach Industries purchase orders.

8) Quality Codes

The following QCs are applicable to all contracted goods and services delivered to MACH Industries when noted on MACH Industries POs.

Quality Code Index

Quality Code Definitions

QC 01 – Certificate of Conformance

The supplier must provide a signed, stamped, and dated Certificate of Conformance (CoC) with each shipment. The CoC must certify that the supplied material, part, or service was produced, delivered, and tested in full compliance with all applicable purchase order requirements, drawings, specifications, and referenced standards.

When key or critical characteristics are identified on the drawing or purchase order, the Certificate of Conformance certifies that such characteristics have been verified and meet all specified requirements. The supplier shall maintain objective evidence of inspection and process control for these characteristics and notify Mach Industries of any discrepancies prior to manufacture or shipment.

For Mach Industries Part Numbers (including Vendor or Source Controlled Drawings), the CoC must include at a minimum:

• Manufacturer’s name and address
• Mach Industries purchase order number and line item
• Purchase order quantity and quantity shipped
• Mach Industries drawing number and revision
• Mach Industries part number (and manufacturer’s part number, if applicable)
• Traceability information (if applicable)
• Seller’s part number and revision (when specified on the Mach Industries drawing)
• Signature/stamp, title, and date from an authorized representative of the supplier

For Supplier-Controlled Part Numbers, the CoC must include at a minimum:

• Supplier’s name
• Mach Industries purchase order number and line item
• Material quantity
• Supplier’s part number
• Traceability information (if applicable)

QC 02 – First Article Inspection (FAI)

Suppliers are required to perform First Article Inspections (FAIs) on all build-to-print parts to verify conformance with Mach Industries specifications. The supplier must complete the FAI before shipping production quantities. If the supplier is manufacturing a controlled part or assembly for the first time, the first article(s) must be submitted to Mach Industries for approval prior to shipment of the remaining order.

FAIs must be conducted in accordance with the latest revision of AS9102 when any of the following conditions apply:

• First-time submission of the part or by the supplier
• Engineering revision that affects form, fit, or function
• Change in manufacturing process or location
• Extended production lapse of 24 months or more since the part was last produced
• Upon specific request by Mach Industries

The completed FAI report must include the following:

• AS9102 Forms 1, 2, and 3
• Ballooned (bubbled) drawing with all dimensions called out
• Certificate of Conformance (CoC) and applicable material and special process certifications
• Approved Technical Inquiry Report (TIR), if applicable
• IUID quality report for all IUID labels, as required by the drawing
• Recorded verification of component or assembly features which may be hidden after final assembly or processing (e.g., crimped pins, soldered terminations, potting, heat shrink)

All FAI reports and supporting documentation must be submitted prior to shipment. Mach Industries reserves the right to witness FAIs at the supplier’s facility. Witness or source inspection does not relieve the supplier of responsibility for product conformity. Final acceptance occurs at Mach Industries’ receiving facility unless otherwise stated on the purchase order.

QC 03 – Inspection Report

The supplier must submit an inspection report with each shipment to confirm that all parts comply with applicable drawing and specification requirements. One fully finished part from each lot or batch must be measured, and all mechanical and dimensional features must be recorded. The required inspection sampling rate may be modified as specified on the applicable purchase order (PO).

The inspection report must include:

• Actual measured values for each required feature
• Corresponding minimum and maximum tolerance ranges
• Gauges and tools used for inspection
• Calibration dates of the gauges and tools
• Signature or stamp from a member of the supplier’s Quality team

All remaining parts in the lot must be inspected by ANSI/ASQ General Inspection Level II with an AQL of 1.5%, refer ANSI/ASQ Standard Z1.4 - 2008. Acceptance of product through statistical sampling does not absolve the supplier of the responsibility to ensure that all delivered products fully conform to Mach Industries’ specifications and drawing requirements.

QC 04 – Source Inspection

Source inspection is required prior to the shipment of articles from the supplier’s facility. Upon receipt of a purchase order referencing this code, and before beginning any work, the supplier must promptly notify the Mach Industries Quality Representative to coordinate the appropriate inspection plan.

Mach Industries reserves the right to perform in-process inspections, surveillance, and audits throughout the duration of the purchase order. When source inspection is specified, the supplier must notify both the Mach Industries Authorized Purchasing Representative and Quality Representative at least five (5) business days in advance of the planned inspection date.

Source inspection will be conducted by a Mach Industries Quality Representative at the supplier’s facility or at the location specified in the purchase order. The supplier must support the inspection and provide the following:

• All applicable drawings and specifications
• Procedures and statements of work
• The Mach Industries purchase order
• Relevant test software and updates
• Inspection and/or test equipment
• Any additional documentation necessary to perform the required inspections and tests

Source inspection does not relieve the supplier of responsibility for nonconforming product discovered at Mach Industries. Final acceptance occurs at the Mach Industries receiving facility.

QC 05 – Exhaustive Inspection

When this code is applied, the supplier must perform 100 percent inspection of all delivered items to verify compliance with all applicable drawing, specification, and technical data package requirements. Sampling inspection methods are strictly prohibited unless Mach Industries provides written approval.

QC 06 – Calibration

The supplier must maintain a calibration system compliant with MIL-STD-45662, ANSI Z540.1, or an equivalent recognized standard. Measurement and test equipment used to verify compliance with Mach Industries requirements must be calibrated to recognized national or international standards such as NIST or an equivalent authority, where applicable.

For kits or matched sets consisting of two or more components, all items must have matching calibration expiration dates to ensure consistency. Mach Industries may reject products delivered with less than 75% of calibration life remaining at the time of receipt.

QC 07 – Test Data

Test data must be complete, accurate, and fully traceable to the purchase order, serial number, and lot or batch number, and included with each shipment.

Test results must be clearly presented and tied to specific test parameters (e.g., operational, mechanical, electrical) for the items tested. The test documentation must identify the parameters tested and record the actual results obtained. If test articles are requested, they must be included with the submitted test data.

QC 08 – Functional Test

Each completed part or assembly delivered under this purchase order must undergo functional and/or electrical testing, as applicable. The test data package must document the actual results for all tested parameters and be signed and dated by the test conductor, certifying compliance with all functional test requirements. A copy of the test data must accompany each item delivered.

QC 09 – Material Certification

Material certifications, including chemical and physical test reports, must accompany each shipment. A signed or stamped manufacturer’s test report must be submitted to Mach Industries and must include, at a minimum:

• Manufacturer’s name
• Part number and revision
• Batch, heat, purity, or lot number
• Date of manufacture (DOM)
• Chemical and/or mechanical test results with actual values
• Temper or grade (as applicable)

If the supplier is not the original manufacturer, a legible and complete copy of the original manufacturer’s test report must be provided.

QC 10 – Special Process Certification

Special processes refer to any production process specified on the purchase order or drawing(s), such as plating, anodizing, heat treating, painting, chemical coating, and similar operations. The supplier must include a signed and/or stamped certification for each applicable special process with every shipment.

Each special process certification must include, at a minimum:

• Name of the manufacturer
• Mach Industries part number and revision
• Special process specifications, including grade, class, and type
• Quantity processed
• Date the special process was performed
• Hardness test results (if applicable)

If the supplier is not the original manufacturer, a complete and legible copy of the original manufacturer’s special process certification must be provided. When a sub-tier supplier performs the special process, the supplier must provide the original certification from the sub-tier source.

QC 11 – Product Serialization

When this code is applied, the supplier must maintain full traceability to the original source of all components. The supplier is responsible for developing, controlling, and implementing serial number schema, subject to approval by an authorized Mach Industries Purchasing Representative, unless otherwise specified.

For serialized parts, assemblies, or end items, serial numbers must be assigned in a sequential and consecutive manner. Each serial number must be unique to the specific part number and must not be reused across this or any future orders. Serialization records must be included with the shipment or in the delivery documentation. A complete list of serial numbers included in the shipment must be provided on the packing slip or accompanying documentation.

QC 12 – Electrostatic Discharge (ESD)

The supplier must establish, document, and implement an Electrostatic Discharge (ESD) control program in accordance with ANSI/ESD S20.20.

All ESD-sensitive parts must be properly handled, packaged, and identified per ANSI/ESD S20.20 requirements. Shipments must be placed in conductive or static-dissipative materials such as carriers, tubes, or ESD-safe bags. Packaging must be clearly labeled to indicate the presence of electrostatic-sensitive devices. Any electrical parts that may be shipped with ESD-sensitive items must also be treated as ESD-sensitive to ensure proper handling throughout the supply chain.

QC 13 – Safety Data Sheet (SDS)

The supplier must provide a reproducible copy of the current Safety Data Sheet (SDS) with each shipment containing chemicals or any hazardous or regulated materials. All hazardous materials must be packaged and shipped in full compliance with Title 49 of the Code of Federal Regulations (CFR 49) and applicable regulatory requirements.

If the material is subject to specific handling or packaging requirements outlined in detail specification, those requirements must take precedence or be applied in conjunction with this provision.

QC 14 – Material Shelf Life

Each container of limited shelf-life material must be clearly labeled with the expiration date and/or include this information in the accompanying certification documents. For materials supplied as kits containing two or more components, all components must share the same shelf-life expiration date.

Materials must have 85% of their original shelf life remaining at time of delivery unless otherwise stated on the PO.

For all consumables with an expiration date, the supplier must include on the Certificate of Conformance: (a) date of manufacture, (b) lot and/or batch number, and (c) date of expiration.

QC 15 – Designated Supplier Quality Representative (DSQR)

The Designated Supplier Quality Representative (DSQR) program is administered by Mach Industries’ Quality Department and grants limited authority to approved supplier personnel to perform in-process and final source inspections.

By including this code, Mach Industries retains the authority to conduct source inspections on some or all items covered under the purchase order, in accordance with the Mach Industries DSQR program. Mach Industries reserves the right to modify, limit, or revoke this authority at any time by providing written notice, including restricting source inspection to specific goods.

Mach Industries also reserves the right to perform surveillance audits at the supplier’s facility to verify compliance with DSQR requirements, conduct additional inspections or product verifications, and monitor the performance of DSQR personnel. Any defective or non-conforming items identified through these inspections may be rejected, and prior acceptance may be revoked.

QC 16 – Country of Origin Certificate

The supplier must provide a signed, stamped, and dated Certificate of Country of Origin (COO) with each shipment. The COO must clearly indicate the country where the material or part was manufactured and ensure traceability to the original source of all procured items.

The COO must include, at a minimum:

• Supplier’s name
• Mach Industries purchase order number, part number, and line-item quantity
• Manufacturing location (country of origin)
• Traceability information (if applicable)
• Name, title, signature/stamp, and date of the supplier’s authorized representative

QC 17 – NDAA Section 848 Compliance

All parts and/or materials marked with this code must comply with the requirements outlined in Section 848 of the Fiscal Year 2020 National Defense Authorization Act (FY20 NDAA), as expanded by Section 817 of the FY23 NDAA. This regulation prohibits the purchase or operation of unmanned aircraft systems (UAS) that contain critical components manufactured in a covered country.

Covered countries include China, Russia, Iran, and North Korea.

Critical components are defined in accordance with Section 848 of the FY20 NDAA, as amended.

QC 18 – Lot Control Requirements

All parts, materials, and relevant documentation must be traceable to a unique manufacturing lot or batch number assigned by the supplier or original manufacturer. A lot is defined as a quantity of products manufactured in a continuous process, using the same equipment, within the same facility, and under consistent processing conditions.

For lot-controlled items, each delivered part must be clearly identifiable by its corresponding lot or batch number. Each lot number must be unique and must not be reused for this or any future orders. A complete list of lot or batch numbers included in the shipment must be provided on the delivery sheet, packing slip, or accompanying documentation.

9) Standards Alignment

This QC framework is aligned to the following standards, as applicable by commodity:

1. AS9100 – Quality Management Systems for Aviation, Space, and Defense
2. AS9102 – First Article Inspection
3. ISO 9001 – Quality Management Systems
4. ANSI/ESD S20.20 – ESD Control Program
5. IPC standards (electronics assembly)
6. MIL-STD-45662 / ANSI Z540.1 / ANSI Z540.3 – Calibration standards
7. NAS 412 – Foreign Object Damage / Foreign Object Debris (FOD) Prevention