Vendor Requirements - Welcome to Hybrid-tek

Latest version: 1/4/2024

The implementation of Hybrid-Tek’s Purchasing, Quality and Health, Security, and Environment policies impacts its vendors. Hybrid-Tek’s expectations toward its vendors are as follows:

Satisfaction of its own customers (to whom the final product or service will be delivered),
Delivery of compliant products or services within the deadlines prescribed and at optimized costs,
Management of a continuous improvement process,
Compliance with current regulations and Hybrid-Tek requirements in the sectors in which they contractually engaged with Hybrid-Tek,
Take any necessary and sufficient corrective or preventative measures required to contain non- performance. The Supplier will support the cost of these measures when the non-performance falls under their responsibility.

1. Counterfeit Parts Avoidance Plan

1.1 Requirements for Hybrid-Tek suppliers.

1.1.1 Suppliers shall establish and maintain a Counterfeit Parts\Material Prevention and Control Plan using AS5553 (Reference elements of Section 4) and\or AS6174 (Reference elements of Section 3) to ensure that counterfeit goods are not delivered to Hybrid-tek. The purpose of the control plan shall be to develop a robust process to prevent the delivery of counterfeit commodities and control commodities identified as counterfeit.

1.1.2 Suppliers shall only purchase products to be delivered or incorporated as goods to buyer directly from the Original Component Manufacturer (“OCM”)\Original Equipment Manufacturer (“OEM”), OCM\OEM authorized distributor chain, aftermarket manufacturer, or authorized reseller. These products shall have verification that goods are traceable to OCM\OEM; OCM\OEM authorized distributor chain, aftermarket manufacturer, or authorized reseller that identifies the name and location of all the supply chain intermediaries from the part manufacturer to the direct source of the product.

If Goods can only be acquired from independent distributors or brokers in cases of diminishing material supply (“DMS”) or obsolescence, written notice shall be provided to Hybrid-Tek prior to procurement of these goods.
After written approval by Hybrid-Tek is received by supplier, goods shall be subjected to testing and screening process appropriate to the commodity (in accordance with AS5553 and AS6174) using a Hybrid-Tek approved third party laboratory.
Records of tests and inspections performed that ensure verification of the goods shall be provided to Hybrid-Tek for review and approval by Hybrid-Tek Quality Manager and \or Hybrid-Tek’s customer prior to delivery. Written notice is not required for raw material and standard hardware purchased from independent distributors or brokers, but products must be able to provide commodity level traceability to the OCM\OEM.

Note: As part of Hybrid-Tek’s review of written requests to use independent distributors or brokers Hybrid-Tek Quality Manager shall review customer requirements to ensure compliance prior to providing approval.

1.1.3 Supplier shall provide written notification to Hybrid-Tek if supplier becomes aware or suspects that it has furnished Counterfeit Goods within 24 hours.
Supplier shall provide to Hybrid-tek, upon request, the supply chain traceability to an Original Manufacturer or authorized distributor chain that identifies the name and location of all the supply chain intermediaries from the part manufacturer to the direct source of the product. Supplier shall have a documented process in place to ensure Counterfeit goods are contained and do not reenter the supplier chain.

1.1.4 Supplier shall include this clause or equivalent provisions in lower tier subcontracts for the delivery of items that will be included in or furnished as goods to Hybrid-Tek as applicable.

1.1.5 Suppliers eligible for utilization of the Government-Industry Data Exchange Program (“GIDEP”) shall utilize the GIDEP process to alert the industry of encountered counterfeit parts.

1.1.6 Supplier shall ensure their Counterfeit Avoidance program includes training of applicable personnel to the requirements within this procedure.

2. Record Retention/Right of Access/Technical Data

2.1 Supplier shall retain order related documents minimum of 5 years from the Purchase date. Upon the completion of this period the supplier must request disposition instructions from Hybrid-Tek.

2.2 Information provided by Hybrid-Tek must be protected with the same level of control as the Supplier’s own proprietary information, but in no case with less than commercially reasonable protection. Information provided by Hybrid-Tek must only be distributed to those employees of Supplier who have a need to access such information.

2.3 The Supplier grants access, with reasonable notice, to its premises and records related to the work done herein to Hybrid-Tek and Hybrid-Tek’s customers at no charge for the purposes of auditing or inspecting. The Supplier is to furnish reasonable space and equipment, and personnel as appropriate to the task being done. These rights also extend to any regulatory agencies interested in this transaction, with the exception that regulatory agencies are not required to give prior notice. These rights must be flowed down by Supplier throughout all levels of the Supplier’s supply chain.

2.4 The Supplier hereby acknowledges that technical data furnished by Hybrid-Tek may be controlled by the Export Administration Regulations (“EAR”), International Traffic in Arms Regulations (“ITAR”), or other restrictions. The Supplier shall be bound by any restrictive markings present on any technical data, shall not remove or deface any such markings, and shall not disseminate the technical data in any manner or form contrary to United States Law. In the event that goods or technical data to be provided to Hybrid-Tek are controlled under the ITAR, the Supplier hereby warrants and represents that it is not debarred by the United States government, that it is currently registered as a manufacturer and/or performer of defense articles/services, and that the scope of the Supplier’s registration covers the defense articles/services to be yielded to Hybrid-Tek.

3. External Providers

3.1 Suppliers shall not assign any part, right, or other aspect of the contract–or subcontract any part of the work to be performed–without the written permission of Hybrid-Tek. Hybrid-Tek may assign or subcontract freely.

3.2 Suppliers shall exercise appropriate control over their own vendors/suppliers/subcontractors and flow down Hybrid-Tek’s requirements whenever the external processes, products, or services will:

3.2.1 Be provided directly to Hybrid-Tek or Hybrid-Tek’s customer.

3.2.2 Be incorporated into the products or services offered to Hybrid-Tek

3.2.3 Form a whole or partial process on the offered products/services to be provided.

4. Conflict Minerals and Responsible Sourcing

4.1 The Supplier represents and warrants that it will comply with Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and to use commercially reasonable efforts to

4.1.1 identify whether such Work contain tantalum, tin, tungsten or gold (“conflict minerals”);

4.1.2 conduct a reasonable country of origin inquiry regarding the origin of such minerals in such Work;

4.1.3 determine whether such minerals originated in Covered Countries, as defined in Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and

4.1.4 If such minerals originated in Covered Countries, conduct due diligence on the chain of custody of the source of such minerals; and

4.1.5 assist Hybrid-Tek and Hybrid-Tek’s customers in conducting due diligence concerning the smelters of such minerals. The Supplier shall promptly notify Hybrid-Tek of all such findings, identifying all such products and/or materials in sufficient detail as Hybrid-Tek may reasonably request to allow Hybrid-Tek to meet its customer commitments. The Supplier shall include the substance of this in any agreement between the Supplier and its lower tier sellers and provide Hybrid-Tek with reasonable documentation of the Supplier’s and its lower tier sellers’ due diligence efforts.

4.2 The Supplier shall make its due diligence practices and results, as well as it’s conflict minerals policy, available to Hybrid-Tek. The Supplier shall, upon request, furnish a declaration in such form as is acceptable to Hybrid-Tek indicating the origin of materials to the smelter level and indicating the conflict-free status of the products or materials provided–along with other related requested information. If the Supplier learns of a change in the conflict-free status of the provided products or materials, the Supplier shall immediately inform Hybrid-Tek of such a change.

4.3 The Supplier shall implement sourcing initiatives to favor socially responsible sub-suppliers.

5. Notifications

5.1 Supplier is to immediately notify Hybrid-Tek of any nonconforming processes/products/services which may have been shipped or otherwise released to Hybrid-Tek and assist in any actions taken by Hybrid-Tek to control the potentially nonconforming materials.

5.2 Supplier is to notify Hybrid-Tek of any nonconforming processes/products/services which have not been released to Hybrid-Tek within 48 hours of discovery and request disposition instructions

5.3 Notify Hybrid-Tek 180 days in advance of any changes to location of manufacturer, external providers, ownership, accreditation, or processes/products/services which may impact the quality or performance of the purchased items/services. The Supplier may not implement any said changes without express affirmative approval from Hybrid-Tek.

5.4 The Supplier shall notify Hybrid-Tek at least 120 days prior to changes in conflict mineral source smelters for products and/or materials provided to Hybrid-Tek.

6. Code of Conduct

6.1 Suppliers must convey the requirements of this Code of Conduct through their entire supply chain. Suppliers must comply with the International Labor Organization’s (ILO) Fundamental Conventions and all laws and regulations impacting their operations.

6.2 Suppliers are forbidden from employing personnel under either the legal age of employment in their region or the ILO’s specified age, whichever is higher. Supplier’s must further refrain from violations of human rights, especially with respect to regulations on human trafficking and forced labor.

6.3 Suppliers must ensure a working environment for their employees devoid of all forms of harassment, abuse, and/or discrimination. Suppliers must especially respect the rights of employees to unionization, free-association, and discussion of working conditions without repercussions, and the promotion in employment of persons with disabilities. Suppliers must comply with applicable laws with respect to maximum working hours, minimum wages, and minimum overtime wages–but in all cases overtime wages must be at least as high as normal wages. Withholding wages as a disciplinary measure is forbidden.

6.4 Suppliers must comply with applicable anti-corruption laws and cannot make or accept any inappropriate or illegal payments in any form to any person or group–including those intended to expedite governmental functions, exert influence, or obtain unfair advantages–even where such payments are permissible under local law. Suppliers must show due diligence in preventing and detecting corruption in any form. An exception is permissible where an imminent threat to health and safety can be diverted through such payments. Any gifts or business courtesies exchanged must comply with laws, market norms, and the principles of the beneficiary organization–suppliers must ensure that only the intrinsic quality of products and services are considered when making purchases. Suppliers must avoid present or potential conflicts of interest between any parties and in all forms and notify all concerned parties when one occurs.

6.5 Suppliers cannot accept or obtain any benefits from fraud, embezzlement, or falsification–including fraud, theft, and misappropriation of assets internal to the company, affecting the customer, or affecting a third party–nor may contractors authorize a third party to do so. Suppliers must comply with competition laws, and any discussion between suppliers concerning price, bids, or business conditions–as well as any participation in a conspiracy or cartel–is forbidden. No confidential documents or information obtained during the course of business with Hybrid-Tek may be used as the basis for a transaction–including those of third parties–of the stock or securities of any company. Any sensitive, confidential, exclusive, or personal information processed by Supplier cannot be used for any purpose other than intended without prior authorization from the data’s owner, and Supplier must comply with all laws concerning intellectual property rights. Suppliers must comply with all IT security requirements requested by Hybrid-Tek and take all necessary precautions–including computer access controls and/or encryption–to prevent any unauthorized disclosure of Hybrid-Tek’s information. Personal data must be protected in accordance with the principles of privacy by design and default in particular, and all appropriate security measures must be in place to protect such data from loss, alteration, or unauthorized access and must comply with all relevant laws.

6.6 Suppliers must follow all import/export laws–obtaining licenses or permissions where necessary–including with respect to sanctions, embargoes, financial flows, and technical data. Suppliers must further comply with all laws concerning Tin, Tantalum, Tungsten, and Gold ore sourcing and must have a policy–which includes due diligence through the supply chain–which reasonably ensures that their sourcing of these minerals do not directly or indirectly fund armed groups who violate human rights.

6.7 Suppliers must ensure that all records are reliable and devoid of any modifications to any saved data made with the intent to conceal or misrepresent the information contained. All records produced or received must fully and faithfully describe the transaction and be saved in accordance with applicable requirements.

6.8 Suppliers must have a Health, Safety, and Environmental management system to ensure that all risks associated with their operations are identified, assessed, and either eliminated or controlled. All potentially affected persons must have their health, safety, and welfare ensured by Supplier, and all applicable environmental, health, and safety laws must be followed.

6.9 Suppliers must minimize possible environmental impacts throughout their product’s life cycle, and must implement a strategy to reduce greenhouse gas emissions, conserve natural resources (including energy, water, and virgin raw materials) as well as limit production of waste and reusing/recycling materials, limit the use of chemicals detrimental to health or the environment, control production emissions/discharge, and adopt an eco-design for new products.

6.10 Suppliers must have measures and policies to permit employees to freely express any legal or ethical issues, as well as prevent, detect, and punish any act of retaliation.

6.10.1 Supplier needs to assess any possible risks to product safety and train employees in any applicable product safety risk mitigation processes.

6.11 Depending on the size and type of business, the Supplier must implement systems to ensure compliance with laws and the expectations described here. The Supplier is encouraged to establish their own Code of Conduct and to communicate their principles down their supply chain. Supplier must have effective programs to encourage ethical practices exceeding the minimal ethical requirements in law and contracts.

6.11.1 Supplier shall communicate to their employees their contributions to

– Product Conformity

– Product Safety

– The Importance of Ethical Behavior.

6.12 Any violation of these requirements may lead to a review of the business relationship with Supplier and issuance of a corrective action request. If no corrective action is taken then Hybrid-Tek may terminate the business relationship with Supplier.

7. Vendor Specific Requirements

Each vendor should look for specific requirements on Hybrid-tek’s technical drawing, purchase order, and/or emails.

8. Government Flow-downs

8.1 By acknowledging this P.O., the supplier certifies that it and/or its principles are not and are not proposed to become debarred, suspended, or otherwise ineligible for the awarding of any federal contracts.

8.2 Nothing in this P.O. gives the supplier any direct rights of action against the U.S. government or any subdivisions or agencies thereof.

8.3 The following FAR and DFARS clauses are incorporated by reference, with the same force and effect as if they were given in full text, as applicable to government orders and Prime contracts/subcontracts (non-applicable clauses are considered self-deleting). Clauses with mandatory inclusion requirements to subcontracts to a Prime Contract are also considered to be included by operation of law, even if the clauses are not listed here. Where the words “government,” “contracting officer,” etc. appear, they are replaced with Hybrid-Tek (except as otherwise required by law) and the terms “contractor” and “subcontractor” replaced with supplier and supplier’s subcontractors. For certifications and representations, acceptance of this order is taken as supplier certifications and representations of current and continued full compliance (or being preferable, for such clauses that denote government preferences) under the applicable clauses. Additional clauses may be noted on the P.O.

8.4 FAR Clauses:

52.203-2

Certificate of Independent Price Determination.

52.203-11

Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions.

52.204-21

Basic Safeguarding of Covered Contractor Information Systems.

52.204-26

Covered Telecommunications Equipment or Services – Representation.

52.209-6

Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment.

52.215-6