TERMS & CONDITIONS

 

  1. CONFLICTS BETWEEN TERMS AND CONDITIONS

These Terms and Conditions shall apply to all sales and/or purchases of equipment, machinery, or otherwise between Hurricane Aerospace Solutions,  (Hurricane “OR” Buyer) and any other party to this invoice/purchase order/contract (the Counter-Party “OR” Seller). Any additional or different terms including terms in any other purchase order or order confirmation will have no effect unless expressly agreed to in writing by Hurricane and, in the absence of such writing; any such terms are expressly rejected. Neither Hurricane’s acknowledgment of a purchase order nor Hurricane’s failure to object to conflicting, different, or additional terms and conditions in a purchase order shall be deemed an acceptance of such terms and conditions or a waiver of the provisions hereof. In the event of any conflict between these Terms and Conditions and any terms and conditions presented and/or required by the Counter-Party (including, but not limited to, terms and conditions affixed/attached to Counter-Party’s purchase order and/or invoice), these Terms and Conditions shall govern and control.

Buyer’s placement of any purchase order with seller and/ or acceptance of any items sold by seller shall constitute seller’s consent to these terms and conditions and waiver and conflicting terms and conditions presented and required by seller.

  1. INSPECTION SYSTEM REQUIREMENTS:

The Seller shall provide and maintain an inspection system in Conformance with Specification ISO-9001 or D6-82479, Appendix B or other Quality System approved by Quality.

  1. CONTROL OF CHANGES:

Seller agrees not to make any change in materials or design details or other product which would affect the part or any component part thereof without prior written Buyer approval. The Seller will identify, on the Statement of Conformance and/or packing sheet, the as built revision level of the end item product being delivered.

  1. SUPPLIER CORRECTIVE ACTION:

Seller shall, on request, on forms designated by Buyer, provide statements of corrective action on failures of seller’s quality system. Corrective action statements, at Buyer’s option may require approval signature by Buyer and Government Quality representative. All rejected articles resubmitted by seller to Buyer shall bear adequate identification including reference to Buyer’s Rejection document.

  1. RIGHT OF ENTRY:

(1) The Buyer, customer and regulatory authorities shall be granted the right of access to all sellers’ facilities involved in the order and all applicable quality records. 2) The right to verify at the seller’s premises that subcontracted product conforms to specified requirements. *Verification -site visits shall not be used by the seller as evidence of Effective control of quality by the supplier.

  1. SHELF LIFE AND TEMPERATURE SENSITIVE MATERIALS:

The Seller shall identify all materials and articles which have definite characteristics of quality degradation with age or environment. The Seller shall affix this information directly on the material container or article. This identification shall indicate the date useful life was initiated and the date or cycle at which the useful life will be expended. When environment is a factor in determining useful life, the identification shall include the storage condition. *(i.e., temperature, humidity, etc.) required to achieve the stated life. A minimum of 75% of the applicable material/article shelf life shall remain upon receipt of the material by Buyer or the material is subject to rejection and returned to the seller.

  1. PACKAGING:

Unless otherwise specified by the item drawing, specification or purchase order, the seller is responsible for assuring that all items are delivered without damage or deterioration and are efficiently and economically packed for the method of transportation and type of handling involved.

  1. MATERIAL SAFETY DATA SHEETS:

Materials(s) noted on this purchase order must be supplied in accordance with OSHA’s hazard communication standard 29CFR1910-1200, OSHA instruction CPL2-2.38 dated August 5, 1985 and Washington State codes 296-62-05413 a “Materials Safety Data Sheets”. Materials not received in compliance with aforementioned OSHA requirements will be subject to immediate rejection and return at supplier’s expense.

If Seller is aware of any additional precautions and/or handling techniques instituted with regard to other customers, you are requested to submit those safeguards with MSDS.

  1. IDENTIFICATION:

Parts, assemblies and components shall be identified as specified on the engineering drawing. When identification is not specified on the engineering drawing, the product shall be identified with the part number specified on the purchase order. When items are too small to easily identify, they may be bagged and tagged Raw material procured to Federal, Military, Aerospace or other specification shall be marked and identified per the requirements of the identification specification which is referenced in the controlling (i.e. Federal, Military, Aerospace, etc.) Specification.

 

  1. HURRICANE AEROSPACE SOLUTIONS FURNISHED MATERIAL:

It is the responsibility of the Vendor/Seller to inspect, evaluate and accept or reject all Customer Furnished Materials in accordance with the vendor’s ISO:9001 / AS9100 QMS, while showing evidence at receiving of conformance requirements and specifications as contractually applicable. If they do not have a current inspection record/form they can contact our offices for a record of inspection and/or documentation of inspection compliant to AS9100 Rev C.

 

  1. HARDWARE:

Seller shall procure all fasteners and/or electrical, electronic and electro-mechanical parts delivered to HAS and/or used in the manufacture of deliverable. Buyer hardware directly from the manufacturer or authorized manufacturer’s distributor, e.g., licensed or franchised distributor. All fasteners and Materials used in assembly or supplied must have manufacturer certs, material certs and test reports these are required for delivery to HAS unless otherwise specified on the order.

Material used must be DFAR compliant for the following clause:

252.225-7001 Qualifying Country Sources as Subcontractors.

252.225-7008 Restriction on Acquisition of Specialty Metals.

252.225-7009 Restriction on Acquisition of Certain Articles Containing Specialty Metals.

252.225-7010 Commercial Derivative Military Article-Specialty Metals Compliance Certificate.

252.225-7012 Preference for Certain Domestic Commodities.

 

Buy American Act 252.225-7001 at its most current revision is applied to this order unless otherwise noted in a revision of this purchase order. The act can be viewed at the following link:http://www.acq.osd.mil/dpap/dars/dfars/html/current/252225.htm.

 

52.244-6 — Subcontracts for Commercial Items.

As prescribed in 44.403 <http://farsite.hill.af.mil/reghtml/regs/FAR2AFMCFARS/FARDFARS/FAR/44.htm>,

Insert the following clause: Subcontracts for Commercial Items (Dec 2010).

 

  1. CERTIFICATE OF CONFORMANCE

The Seller shall certify that the product delivered conforms in every aspect to the contractual and technical requirements of the Purchase Order, engineering drawings(s), specifications and standards referenced therein. Where required by the buyer purchase order, inclusive of all documents referenced therein, parts, materials and processes have been procured from approved sources. The Statement of Conformance document shall be signed by a representative of the Seller. Manufacturer certificates of conformances for all machined and finished parts are required and must include the following evidence and data as applicable:

  • Manufacturer Name and Address.
  • Cage Code.
  • Reference to Buyer Purchase Order.
  • Mfr Part # and Correlating NSN if applicable.
  • Revision Level of Drawing as applicable.
  • Quantity.
  • Lot, Batch, Job, Work Order, etc. Number.
  • Heat Number.
  • Raw Material Certification.
  • Serial # if applicable.

Material Traceability and Certificate # for all components and special processing.

 

PARCEL DOCUMENTATION:

(1) Each shipment by the Seller shall be accompanied by a Statement of Conformance in accordance with the above. (2) When the items or the items contained within an assembly, sub-assembly or detail part on this Purchase Order are supplied by a distributor, a copy of the Statement of Conformance from the true manufacturer must accompany each shipment (3) The manufacturer’s certificate of conformance must contain all of the information required by the applicable material specification as shown on the engineering drawing (QQA, ASTM, Mil, AMS, etc.) including actual test results; a general statement of conformity is not acceptable. Format is at the discretion of the manufacturer.

 

  1. MATERIAL TEST REPORTS:

A material test report for raw material(s) is required and shall contain the following: (1) name/number of the specification with which the material is in compliance. (2) The lot, batch, heat lot or other traceable destination (i.e. purchase order number, invoice number etc.).

(3) The reports shall contain the actual test results and or indicate the percentage of each element that makes up the chemical and or physical properties of the raw materials(s). (4) A statement of conformance to the applicable specification.

 

PARCEL DOCUMENTATION:

Each shipment must be accompanied by a legible unaltered copy of the test report, unless verified and validated by the buyer Quality Assurance Representative at the Sellers facility.

 

  1. CERTIFIED TEST DATA:

Certified Test Data is required and shall contain quantitative test results versus quantitative requirements and permissible tolerance for values measured and shall indicate factual information necessary to demonstrate conformance to the requirements reflected on the engineering drawing governing specification or purchase order.

FAA/ EASA APPROVED SUPPLIERS FOR HURRICANE AEROSPACE SOLUTIONS ARE REQUIRED TO TEST AND CERTIFY ALL FACTORY NEW ITEMS (FN) “BUILD TO PRINT” PROJECTS TO THE DRAWING AND BLUE PRINT REQUIREMENTS.

 

PARCEL DOCUMENTATION:

Each shipment must be accompanied by a legible unaltered copy of the test report, unless verified and validated by the Buyer Quality Assurance Representative at the Sellers facility.

 

  1. APPROVED PROCESS REQUIREMENTS:

Special processes (i.e. testing, heat treat, nondestructive testing, etc.). When required by the process specification must be performed by sources approved by the customer (process document owner). The Seller is responsible for assuring that the processing source has in possession a current customer approval of process capability for the processes to be performed, prior to performing the process.

 

PARCEL DOCUMENTATION:

Each shipment must be accompanied by a legible unaltered copy of the certification from the processing source demonstrating compliance with the specification for the processes performed and that the processor is/was approved by the customer to perform the processes at the time the product was processed. If this certification is verified and validated by a Buyer Quality Assurance Representative at the Sellers facility, it may be retained by the Seller.

 

  1. FIRST ARTICLE INSPECTION:

The Seller shall perform a First Article Inspection (FAI) on the initial part or lot (as applicable) at the detail, subassembly and/or assembly level or after no orders produced for Buyer within 2-years. The results of the FAI shall indicate 100% conformance to engineering drawing characteristics, special processes, functional test and laboratory requirements. Subsequent FAI’s shall be performed under the conditions: (1) Engineering changes (configuration changes affecting form, fit and/or function) require a Delta FAI for those characteristics affected by the change. (2) If major changes are made in the Sellers method of manufacturing, a Delta FAI shall be performed for those characteristics affected by the change.

 

PARCEL DOCUMENTATION:

A copy of the Sellers FAI report shall be sent with each initial shipment of a part number configuration to Buyer including all material trace documents.

When applicable: The AS9102 First Article inspection report must include:

1.) All Blue Print Dimensions

2.) Reference the Engineering Revision Level the FAI is conducted to.

3.) The “As Is” Dimension.

4.) The “Should be” Dimension.

5.) A Stamp/Signature showing acceptance of the part.

6.) If Hardness Inspection is required the “S/B” and “Is” range.

7.) Reference to any “Special Processes” and a copy of the work order/certification(s).

8.) If Paint/Prime is required the “S/B” and “Is” Thickness as applicable.

9.) Each AS9102 FAI shipment must be accompanied with all material, special process, process and trace certifications, etc. in addition to a copy of the manufacturer work order as necessary, applicable, and requested or required Hurricane Aerospace Solutions.

 

  1. COUNTERFEIT ELECTRONICS PART AVOIDANCE

Counterfeit Goods:

C o C’s shall, at minimum, include the following:

Manufacture name and address Manufacturer’s part number Batch identification for the item(s) such as date codes, lot codes, serialization number or other batch identification Signature or stamp with title of seller’s authorized personnel signing the Certificate Certification to testing specification and revision level that parts are certified

  1. Seller shall not furnish to Buyer any Goods under this Contract that are “Counterfeit Goods,” defined as Goods or separately-identifiable items or components of Goods that: (I) are an unauthorized copy or substitute of an Original Equipment Manufacturer or Original Component Manufacturer (collectively, “OEM”) item; (ii) are not traceable to an OEM sufficient to ensure authenticity in OEM design and manufacture; (iii) do not contain proper external or internal materials or components required by the OEM or are not constructed in accordance with OEM design; (iv) have been re-worked, re-marked, re-labeled, repaired, refurbished, or otherwise modified from OEM design but not disclosed as such or are represented as OEM authentic or new; or (v) have not passed successfully all OEM required testing, verification, screening, and quality control processes.
  2. Seller shall implement an appropriate strategy to ensure that Goods furnished to Buyer under this Contract are not Counterfeit Goods. Seller’s strategy shall include, but is not limited to, the direct procurement of items from OEMs or authorized suppliers, conducting approved testing or inspection to ensure the authenticity of items, and, when items are to be procured from non-authorized suppliers, obtaining from such non-authorized suppliers appropriate certificates of conformance that provide one or more of the following :(I) the OEM’s original certificate of conformance for the item; (ii) sufficient records providing unbroken supply chain traceability to the OEM; or (iii) test and inspection records demonstrating the item’s authenticity.Counterfeit Goods delivered or furnished to Buyer under this Contract are deemed nonconforming. If Seller becomes aware or suspects that it has furnished Counterfeit Goods to Buyer under this Contract, Seller promptly shall notify Buyer and replace, at Seller’s expense, such Counterfeit Goods with OEM or Buyer-approved Goods that conform to the requirements of this Contract. Seller shall be liable for all costs related to the replacement of Counterfeit Goods and any testing or validation 11 Necessitated by the installation of authentic Goods after Counterfeit Goods have been replaced. The remedies contained in this article are in addition to any remedies buyer may have at law, equity, or under other provisions of this Contract.
  3. Seller bears responsibility for procuring authentic Goods or items from its subcontractors and shall ensure that all such subcontractors comply with the requirements of this article. Supply Chain Traceability is defined as name and date of all intermediaries for all procurement lot’s and date of all intermediate purchases from the part manufacturer to the direct source of the product for the seller and is required with all electronic parts purchase orders including but not limited to: Electrical, Electronic, and Electromechanical components.
  4. The SAE AS5553 also known as the Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition as the referenced document is intended for use in aviation, space, defense, and other high performance/reliability electronic equipment applications. The standard is recommended and requested for use by all contracting organizations that procure electronic parts, whether such parts are procured directly or integrated into electronic assemblies or equipment. The requirements of this standard are generic and intended to be applied / flowed down to all organizations that procure electronic parts, regardless of type, size, and product provided. The AS5553 does not act as a replacement or substitution for D950-11160-1.

The approved vendor/ supplier can request the current document from: QAR@HURRI-ELEC.COM

 

  1. CONFLICT MINERAL REPORTING REQUIREMENTS:

Upon request of Hurricane Aerospace Solutions supplier’s will need to be able to validate supply chain traceability pertaining to the origin of conflict minerals including but not limited to tin, tantalum, tungsten or gold in the products they manufacture or contract to manufacture. Please source minerals from responsible sources please determine parts/ assemblies/ material that incorporate one or more of the four identified metals. Begin determining the point at which the four identified metals enter into your products supply chain.

To learn more about all of the compliance requirements defined in the conflict minerals visit the SEC website at this URL:www.sec.gov/rules/final.shtml.

 

MERCURY FREE PRODUCT:

By accepting this purchase order, you certify that the product or service you supply to Hurricane Aerospace Solutions is free from mercury contamination. If mercury is a component of your processes, please contact the HAS Sales Manager for direction.

LEAD FREE PRODUCT:

By accepting this purchase order, you certify that the product or service you supply to Hurricane Aerospace Solutions is free from lead contamination. If lead is a component of your processes, please contact the Hurricane Aerospace Solutions] representative for direction.

 “Conflict”minerals””currently”include”the”metals”tantalum,”tin,”tungsten”and”gold,”which”are” the”derivatives”of”the”minerals”cassiterite,”columbite@tantalite”and”wolframite,”respectively.”Downstream”companies”often”refer”to”the”derivatives”of”these”minerals”as”3TG.”

Note: “Conflict”minerals”can”be”extracted”at”many”different”locations”around”the”world”including”the”DRC.” The”SEC”rules”define”conflict”minerals”as”3TG”metals,”wherever”extracted.”For”example,”tin”extracted”in”Canada,”Russia”or”Argentina”meets”that”definition.”In”the”SEC”rule,”DRC”conflict@free”is”defined”as”minerals”that”were”extracted”and”did”not”directly”or”indirectly”benefit”armed”groups”in”the”covered”countries.”Therefore,”tin”extracted”from”Canada”could”be”considered”DRC”conflict@free”under”the” definitions”of”the”SEC”rule.”

Hurricane Aerospace Solutions is requesting our suppliers to utilize Conflict Free Minerals. Any conflict minerals: Tantalum (Ta), Tin(Sn), Gold (Au), Tungsten (w) must be sourced outside of the The Democratic Republic of Congo as we do not support mine under the control of violent forces. Hurricane Aerospace Solutions is requesting suppliers to utilize (CFS) Conflict Free Smelters,http://www.conflictfreesmelter.org/cfshome.htm.

SPECIALTY METALS (DFARS 252.225-7014, 252.225-7008, 252.225-7009) By accepting this order, you certify that the steels and titanium supplied under this purchase order to Hurricane Aerospace Solutions as raw material have been domestically melted in the United States, its possessions, or Puerto Rico.

 

  1. RISK MANAGEMENT:

Natural Disaster Occurrence and Risk Management: Seller shall promptly notify Hurricane Aerospace Solutions of any occurrence of natural disaster that diminishes Seller’s ability to deliver conforming goods or services in the specified time. When requested in writing by HAS due to a performance concern, HAS and Seller shall work together to define a mutually agreed upon set of data that will be used to support the successful execution of the contract and to achieve program initiatives. Seller shall submit reports or data that have been mutually agreed upon by Seller and HAS. Seller’s existing format may be acceptable.

Risk Management. Seller shall assess the likelihood and consequence of risks related to schedule, cost, technical and quality. Seller is required to proactively communicate significant issues that affect performance and to solicit HAS assistance as needed. Sample data or reports may include:

  • Mitigation plan, schedule and status.
  • Staffing and succession plans.
  • Contingency plan for work stoppage.

Performance areas requiring data may include, but are not limited to:

  1. Quality and Delivery. Expected reports or data may include:
  • Root Cause and Corrective Action
  • Recovery Plan/Production Milestone
  1. REPORT OF DISCREPANCY:

Any departure from drawing specifications or other purchase order requirements must be documented by the Seller and submitted to

The Buyer for consideration and disposition. A copy of this disposition document must accompany each affected shipment.

PARCEL DOCUMENTATION:

A copy of the disposition document must accompany each affected Shipment to Buyer.

REPORT OF ESCAPE:

The Seller upon discovery of a shipment / delivery of nonconforming product must provide a notice of disclosure to the Buyer within 48

Hours of discovery.

NOTIFICATION OF NON-COMPLIANCE

When an out-of-tolerance condition is discovered on a measuring device being calibrated by an approved Calibration Lab used by hurricane Aerospace Solutions that facility will contact Hurricane Aerospace Solutions immediately.

  1. TRACEABILITY/LOT AND BATCH CONTROL:

Seller must maintain lot and batch control of raw materials/hardware to purchased items. Seller must provide complete and positive traceability of manufactured parts and assemblies to raw materials/hardware through the use of lot/batch, serial numbers, test reports and/or PO numbers

PARCEL DOCUMENTATION:

Shipping documents shall identify the lot/batch or serial number, as applicable, for all items in the shipment…

  1. SUPPLIER RECORDS:

The Seller shall maintain records of product delivered to buyer for a period of seven years. Unless specified differently per contract flow down

  1. KEY CHARACTERISTICS:

The Seller shall maintain applicable statistical control charts for key Characteristics identified by the customer drawings.

PARCEL DOCUMENTATION:

A copy of the for key characteristics statistical control charts must accompany all items in the shipment to Buyer.

  1. SUPPLIER FLOW DOWN TO SUB-TIER SUPPLIER:

Hurricane Aerospace solutions will flow down to sub-tier suppliers the applicable requirements in the purchasing documents, including key characteristics where required, and all requirements applicable to the manufacture of parts using digital data and print where applicable at minimum all special processors including but not limited to plating, anodizing, heat treating, NDT must at minimum be current with registration to Nad Cap. ISO 9001-2008 or AS9100 management system.

  1. SOURCE INSPECTION

When government source Inspection is required by contract, Hurricane Aerospace Solutions will flow this requirement down to our suppliers. This requirement (source inspection) allows a government inspector to enter your facility to conduct source inspections on Hurricane Aerospace Solutions contracted parts…

  1. ITAR/EAR CONTROL:

When applicable, Hurricane Aerospace Solutions shall include the following clause on all documentation containing restricted technical data:”these documents contain technical data, the use of which is restricted by the U.S. arms export control act. This data has been provided in accordance with, and subject to, the limitations specified in paragraph 126.5 of the international traffic in arms regulations (ITAR).

  1. DEFENSE PRIORITIES AND ALLOCATIONS SYSTEMS REGULATION:

Suppliers are required to follow all of the provisions of the Defense priorities and allocations systems regulation (15 CFR 700) as applicable.

  1. DENIED PARTIES LIST:

Vendor/ Supplier certifies and gives notice by acceptance of this purchase order that Vendors/ Suppliers entity, and its officers,

Owners and directors are not on any U.S. Government Denial List, including but not limited to, Denied Parties List, U.S. Office of Foreign Asset Control Specially Designed Nationals List, U.S. State Department Restricted List or any Foreign Government Sanctioned List. During the course of this purchase order, should the Vendor or its key personnel be identified on any of these lists, the Buyer reserves the right to terminate this order and cease all further business

  1. LIMITATION OF LIABILITY:

IN NO EVENT SHALL SELLERS’ LIABILITY ARISING OUT OF OR RELATED TO THESE TERMS AND CONDITIONS EXCEED THE AMOUNTS PAID BY BUYER FOR THE ACCOMPANYING PRODUCTS PURCHASED PURSUANT TO THESE TERMS AND CONDITIONS. IN NO EVENT SHALL SELLER BE LIABLE TO BUYER, OR TO ANY THIRD PARTY FOR ANY LOSS OF PROFITS, SALES, BUSINESS, DATA OR OTHER INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, WHETHER ARISING IN CONTRACT, TORT, NEGLIGENCE OR STRICT LIABILITY, EVEN IF SELLER HAS BEEN INFORMED OF, KNEW OF, OR SHOULD HAVE KNOWN OF THE LIKELIHOOD OF SUCH DAMAGES.

  1. GOVERNING LAW AND JURISDICTION

These Terms and Conditions and all agreements existing between Seller and Buyer (whether by virtue of a purchase order or otherwise) shall be governed by the laws of the State of Florida, without regard to its conflicts of law provisions. The state and federal courts located in Broward County, Florida shall have exclusive jurisdiction over any disputes arising from or related to these Terms and Conditions, all agreements existing between Seller and Buyer (whether by virtue of a purchase order or otherwise), and any claims that these Terms and Conditions or above-described agreements were procured by fraud and/or negligent misrepresentation. Buyer irrevocably consents to the personal jurisdiction of the state and federal courts in and for Broward County, Florida, and irrevocably waives any claim it may have that any proceedings brought in such courts has been brought in an inconvenient forum.

  1. ATTORNEYS’ FEES AND COSTS

In the event of any dispute arising hereunder or relating to any agreement existing between Seller and Buyer, the prevailing party shall be entitled to recover its reasonable attorneys’ fees, expenses and costs incurred therewith.

  1. NO ORAL MODIFICATIONS

No agreement altering, modifying, or extending these Terms and Conditions shall be valid unless in writing and duly signed by the parties.

  1. BUY AMERICAN ACT 252.225-7001

Buy American Act 252.225-7001 at its most current revision is applied to this order unless otherwise noted in a revision

Of this purchase order. The act can be viewed at the following link: <http://www.acq.osd.mil/dpap/dars/dfars/html/current/252225.htm>.

All parts must be new / unused unless stated otherwise. If parts are not deemed acceptable, they will be returned at your cost. Hurricane Aerospace Solutions Reserves the right to access it suppliers sites to confirm the quality of materials provided and extends the right Hurricane Aerospace Solution customers or regulatory authorities. Verification by the customer does not absolve Hurricane Aerospace Solutions or it’s suppliers of the responsibility to provide products or services that meet requirements Suppliers must notify Hurricane Aerospace Solutions immediately of any product non- conformities prior to delivery and/ or after delivery if applicable. Suppliers are required to notify organization of changes in product and/ or process definition where required and obtain organizational approval if necessary. Requirements for the supplier to flow down to sub tiers the applicable requirements in purchasing documents including key characteristics where required.

Hurricane Aerospace Solutions reserves the right to accept and/ or reject and inspect all items, products, parts and/or services etc. supplied by any seller on the basis and in accordance with our quality management systems and/ or per AS9100 Rev. C / ISO 9001:2008

  1. Sun Contracts for commercial items (oct 2014)  Subcontracts for Commercial Items (Oct 2014)

(a) Definitions. As used in this clause-

“Commercial item” has the meaning contained Federal Acquisition Regulation 2.101, Definitions.

“Subcontract” includes a transfer of commercial items between divisions, subsidiaries, or affiliates of the Contractor or subcontractor at any tier.

(b) To the maximum extent practicable, the Contractor shall incorporate, and require its subcontractors at all tiers to incorporate, commercial items or nondevelopmental items as components of items to be supplied under this contract.

(c) (1) The Contractor shall insert the following clauses in subcontracts for commercial items:

(i) 52.203-13, Contractor Code of Business Ethics and Conduct (Apr 2010) (41 U.S.C. 3509), if the subcontract exceeds $5,000,000 and has a performance period of more than 120 days. In altering this clause to identify the appropriate parties, all disclosures of violation of the civil False Claims Act or of Federal criminal law shall be directed to the agency Office of the Inspector General, with a copy to the Contracting Officer.

(ii) 52.203-15, Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009 (Jun 2010) (Section 1553 of Pub. L. 111-5), if the subcontract is funded under the Recovery Act.

(iii) 52.219-8, Utilization of Small Business Concerns (Oct 2014) (15 U.S.C. 637(d)(2) and (3)), if the subcontract offers further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $650,000 ($1.5 million for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting opportunities.

(iv) 52.222-26, Equal Opportunity (Mar 2007) (E.O. 11246).

(v) 52.222-35, Equal Opportunity for Veterans (Jul 2014) (38 U.S.C. 4212(a));

(vi) 52.222-36, Equal Opportunity for Workers with Disabilities (Jul 2014) (29 U.S.C. 793).

(vii) 52.222-37, Employments Reports on Veterans (Jul 2014) (38 U.S.C. 4212).

(viii) 52.222-40, Notification of Employee Rights Under the National Labor Relations Act (Dec 2010) (E.O. 13496), if flow down is required in accordance with paragraph (f) of FAR clause 52.222-40.

(ix) 52.222-50, Combating Trafficking in Persons (Feb 2009) (22 U.S.C. 7104(g)).

(x) 52.225-26, Contractors Performing Private Security Functions Outside the United States (Jul 2013) (Section 862, as amended, of the National Defense Authorization Act for Fiscal Year 2008; 10 U.S.C. 2302 Note).

(ix) 52.232-40, Providing Accelerated Payments to Small Business Subcontractors (Dec 2013), if flow down is required in accordance with paragraph (c) of FAR clause 52.232-40.

(xii) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Feb 2006) (46 U.S.C. App. 1241 and 10 U.S.C. 2631), if flow down is required in accordance with paragraph (d) of FAR clause 52.247-64.

 

Rev 45 Eff 02/03/2016