Advance CNC Machining Vendor Agreement Terms

Working Together

At Advance, we are committed to meeting our customers’ expectations and need our vendors to be committed to meeting our expectations as well. In return, we can commit to helping you succeed however we can.

The information below describes what we expect, how you will be evaluated, and the standard terms of our orders. Please review this document carefully and return a signed copy as an acknowledgment of your agreement.

If you are ever unsure about our requirements, please ask and we will be happy to clarify. We look forward to working together.

Our Expectations

Quality

  • At least 98.5% of our orders shall be delivered without a quality issue.
  • Vendors shall adhere to our Standard Workmanship Requirements when applicable.

Delivery

  • At least 93.5% of our orders shall be delivered on time.
  • Vendors shall notify us of any changes to delivery time.

Communication

  • Vendors shall adequately communicate our expectations and requirements to their team members.
  • Vendors shall adequately communicate with us any concerns, questions, or changes regarding our orders.

Standard Workmanship Requirements

This section lists the requirements that Advance has defined for vendors related to various aspects of manufacturing quality. These requirements apply to all parts and services provided to Advance unless otherwise specified.

Definitions

  • Fracture – Separation on the outside surface of the material.
  • Depression – Indentations in the material, including dents, dings, scratches, gouges, nicks, and pits.
  • Protrusion – A raised area on a surface, including specks, blisters, bumps, ridges, and bubbles.
  • Burr – Sharp projections on an edge created by the manufacturing process that can be seen by the naked eye, felt with a finger, caught with a precision pick, or measured to be outside of tolerance.
  • Debris – Loose particles or fragments such as chips, dust, or dirt.
  • Rust – Uncontrolled oxidation of the part surface.

Surfaces

  • Roughness of machined surfaces shall not exceed Ra = 125µin.
  • Surface texture, waviness, and lay shall be interpreted in accordance to ANSI/ASME B46.1.

Edges

  • All burrs shall be removed.
  • All external corners shall have a radius or chamfer between 0.005in and 0.030in.
  • All internal corners shall have a radius no greater than 0.040in.

Holes

  • The depth of a drilled hole shall be measured from the starting surface to the limit of the full hole diameter penetration and not to the depth of the drill point. The depth is considered minimum unless noted.
  • Blind holes shall never break through or deform the geometry of any other surface.
  • All tapped holes shall be countersunk at an angle between 79° and 101° and to a diameter equal to or .020in greater than the major diameter of the tap.
  • Tap depths are considered the minimum required length of full thread.
  • Countersinks and counterbores shall be produced with the axis parallel to the hole axis to within ±1°.

Threads

  • All metric threads shall be class 6H internal and class 6g external.
  • All Unified Standard threads shall be class 2B internal and 2A external.

Knurls

  • Knurls shall conform to ASME/ANSI B94.6.

Sheet Metal

  • An appropriate fabrication process shall be selected based on material and geometry requirements.
  • The maximum allowable bend radius shall be equal to the material thickness.
  • Bends shall be smooth and show no evidence of fractures.

Weldments

  • Appropriate welding processes and filler materials shall be selected based on material and strength requirements.
  • Sufficient filler material shall be used to produce a visually acceptable and structurally sound weld.

Visual Appearance

  • The appearance of a part that meets all other requirements after production shall be considered acceptable if no appearance requirements have been specified.
  • Parts from the same lot shall be kept as consistent in appearance as can reasonably be achieved within the variation of the production process.

Finish and Plating

  • All plated surfaces shall be uniform in color with no fading or streaks.
  • All plating shall be firmly bonded to the base material and free from depressions and protrusions.

Laser Marking

  • Characters and lines shall appear continuous and complete.
  • A letter height of 0.2in shall be used when size allows. For parts too small for that letter height, a smaller height shall be selected based on the available area.
  • Letter font shall be Arial.

Cleaning and Packaging

  • Parts produced from stock material and newly machined surfaces of modified parts shall be cleaned of all dye, ink, stains, rust, scale, heat discoloration, debris, and residue from coolant or other chemicals.
  • Parts shall be fully dry before packaging unless anti-rust compound has been applied.
  • Parts shall be stored in a manner that prevents rust or other damage to the parts.
  • Parts shall be packaged sufficiently to prevent any damage or contamination during shipping. No egg crates, newspaper, shredded paper, packing peanuts, or similar loose filler material may be used.

Evaluation

Advance reviews vendor performance every six months. To keep our active vendors informed of their standing with Advance, we periodically send out evaluation reports. These reports include performance scores and overall standing category.

The total vendor performance score is calculated as follows:

  • On-Time Goal = 93.5%
    • Every late mark equals 20 points out of 100. Each job is 100 points
  • Quality Goal = 98.5%
    • Every late mark equals 50 out of 100 points

Total vendor Score:

  • 0% – 100% = Good Standing
  • 0% – 94.9% = Heads Up
  • 0% or below = Conditional

If a vendor falls below the Good Standing category, we may require that corrective and preventive actions are taken to improve performance. The vendor will be expected to return to Good Standing during the next quarter.

If a vendor falls below the Good Standing category for multiple quarters and does not provide adequate evidence of corrective and preventive action, we may choose not to place orders to that vendor for a probationary period or indefinitely until appropriate actions have been implemented.

Order Terms

The company listed below (“Vendor”) agrees to the following terms regarding purchase orders sent by Advance CNC Machining (“Advance CNC”) to the Vendor. These terms apply to all purchase orders unless otherwise agreed upon in writing at the time of the order.

Cancellation

Advance CNC reserves the right to cancel all or any portion of the purchase order, in its discretion, if such order or a part thereof is not timely produced, timely delivered, in conformity with the designated/required specifications and/or is not of a commercially reasonable quality or a quality consistent with such order.

Shipment

The Vendor shall not charge Advance CNC for packing or cartage unless otherwise designated on the purchase order.

Nonconforming products

The Vendor should not deliver known nonconforming product unless specifically authorized by Advance CNC. If the Vendor discovers that nonconforming product was delivered to Advance CNC without specific authorization, the Vendor shall provide a notice of such product and date of delivery with a clear description of the non-conformance.

If Advance CNC discovers nonconforming product delivered by the Vendor, root cause investigation and corrective actions may be requested.

Warranty

The Vendor agrees that if the parts do not meet the print specifications and our shop standards completely and rework is required, and there is not enough time to return the parts to the Vendor for rework, Advance CNC may choose to perform the rework to maintain the timeline of the order. The Vendor agrees to credit Advance CNC for the costs associated with that rework.

Flow Downs

The Vendor acknowledges that certain customer requirements may be required to be flowed down by Advance CNC to The Vendor. Such requirements shall be identified in the purchase order issued by Advance CNC. The Vendor shall be responsible for flowing down such requirements to their sub-tier vendors and suppliers used for the applicable purchase order(s). The vendor shall promptly notify Advance CNC if they are unable to ensure compliance with any such requirements.

Proprietary Information

The Vendor acknowledges that, in conjunction with the receipt of this or other orders, the Vendor may receive certain drawings, samples, specifications or other information which constitutes proprietary information, confidential information and/or other trade secrets which are being provided to the Vendor for the sole purpose of manufacturing, fabricating or otherwise producing items for Advance CNC. The Vendor hereby agrees that it shall not utilize any of Advance CNC’s drawings, samples, specifications, proprietary information, confidential information and/or other trade secrets for any purpose other than the production of those items requested under the purchase order and agrees not to otherwise use or disclose any such confidential information to any third party. The Vendor hereby acknowledges that utilizing or disclosing information, other than for the purpose of this purchase order, shall result in damages to Advance CNC.

Client Information

The Vendor acknowledges that, in conjunction with this purchase order, it may come into possession of certain client information of Advance CNC. The Vendor hereby agrees that it shall not solicit any such clients of Advance CNC for so long as the Vendor continues to produce orders for Advance CNC or, should the Vendor cease producing orders for Advance CNC, for a period of one (1) year from the last date upon which the Vendor has produced, manufactured, or delivered any product pursuant to an order of Advance CNC. The Vendor hereby acknowledges and agrees that soliciting any such clients of Advance CNC, without Advance CNC’s express consent, shall cause damages to Advance CNC.

Intellectual Property

The Vendor acknowledges that, in conjunction with the purchase order, it may come into possession of certain patent or other intellectual property of Advance CNC. The Vendor agrees that it shall not utilize such patent or other intellectual property for any other purpose other than production of those items required under the purchase order and agrees not to otherwise use or disclose any such confidential information to any third party. The Vendor acknowledges that utilizing such patent or other intellectual property, other than for the purchase order, shall result in damages to Advance CNC.

Liability

The Vendor agrees that should it violate any of these order terms, it shall be liable for all losses incurred by Advance CNC, whether directly or indirectly, including consequential damages, all costs, expenses and/or attorney fees incurred by Advance CNC in connection with such losses and/or the collection of or pursuit of damages hereunder or enforcement hereof. The Vendor also agrees to indemnify Advance CNC from any and all damages, including expenses and attorney fees, related to any patent or other infringement by the Vendor. Further, the Vendor agrees that Advance CNC shall be entitled to immediate injunctive relief should the Vendor violate any provision hereof.

Awareness

ITAR/EAR

The Vendor acknowledges that Advance CNC will notify them if any items discussed are ITAR controlled and agrees that they shall maintain compliance to ITAR/EAR and the requirements of Advance CNC regarding these items, if at any time they accept orders for or information related to these items. The Vendor also acknowledges that Advance CNC may require evidence of compliance.

AS9100

The Vendor acknowledges that Advance CNC will notify them if any items discussed needs implementation of AS9100 requirements and agrees that they shall maintain compliance to the requirements of Advance CNC regarding these items, if at any time they accept orders for or information related to these items. The Vendor also acknowledges that Advance CNC may require evidence of compliance.

  • Prevention of Counterfeit parts

Definition: An unauthorized copy, imitation, substitute, or modified part (e.g., material, part, component), which is knowingly misrepresented as a specified genuine part of an original or authorized manufacturer.

NOTE: Examples of a Counterfeit Part can include, but are not limited to, the false identification of marking or labeling, grade, serial number, date code, documentation, or performance characteristics. (ref AS9100D – 3.1).

The Vendor shall plan, implement, and control processes appropriate to the Vendor and the product, for the prevention of Counterfeit or suspect Counterfeit Part use and their inclusion in product(s) delivered to Advance CNC.

  • Product Safety

Definition: The state in which a product is able to perform to its designed or intended purpose without causing unacceptable risk of harm to persons or damage to property (ref AS9100D – 3.4).

The Vendor shall have a program/training in place to ensure their team is aware of their contribution to product safety.

  • Contribution

The Vendor shall be aware of their contribution to product or service conformity.

  • FOD

Advance CNC may sometimes flow down the implementation of FOD to The Vendor when required by the customer or the product. It is typically required by Aerospace and Defense customers. This includes programs or processes for prevention of foreign object debris and foreign object damage (ref AS9146).

  • Site visits

The Vendor shall provide access to Advance CNC, its customers and Regulatory Agencies, to all applicable areas of all facilities, at any level of supply chain, involved in the order and to applicable records.

Rev 2025.10.02