A. REGULATORY TERMS AND CONDITIONS OF ORDER
1. Binding. Acceptance of a PO is a binding contract and any breach to said contracts are legally
binding in the State of Texas with all applicable laws and governing.
2. Termination of Order. We reserve the right to cancel a PO without penalty if supplier is unable to
meet defined requirements.
3. Delivery. Delivery times are defined on each PO. If supplier is unable to meet defined deadlines, we
must be notified immediately for risk assessment and adjustment. If items are received without the
proper documentation, items will be placed on hold until required paperwork is received. Payment
terms with supplier begin when items are received and accepted without issue.
4. Legal. Supplier agrees to all applicable regulations as stated applicable on the corresponding PO:
a. International Traffic in Arms Regulations (ITAR). May contain data subject to US Export Laws and
Regulations in which supplier must follow protocols defined within the ITAR Regulation. Data
may not be exported or re-exported to foreign persons, employed by, or associated with, or
under contract to supplier or sub-tier sources without prior written notice and approval. If data is
marked as export controlled, supplier holds buyer harmless from and against all claims,
liabilities, and expenses that may be imposed by US Authority.
b. Federal Acquisition Regulations (FAR). Applicable FAR clauses will be listed on each PO. FAR
52.246.2 and 52.203-7 are applicable for all orders.
c. Defense Priorities and Allocations System (DPAS). Priorities assigned and required by the Federal
Government to flow down priority on certain orders. DX is the highest rating for urgency and DO
is critical to national defense.
d. Conflict Minerals. Applicable conflict minerals policies and procedures defined by REACH and
RoHS to ensure safety.
e. Information Security. Supplier must have an information security program to protect proprietary,
intellectual, and other sensitive information and correspondence submitted via electronic
medium. Such practices should include appropriate physical security, back-up procedures
including verification of back up activity, and disaster recovery. NIST 800-171 should be used as a
guideline unless specifically noted as a requirement.
5. Safety and Ethical Behavior. Supplier agrees to ensure personnel are aware of their contribution to
product safety and ethical behavior.
6. Nonconformance. Supplier agrees to accept suspected items for review and disposition if found
nonconforming to stated requirements by LTTS quality activities. Returns pending a disposition will
result in a HOLD on payment of invoices until resolution is determined and processed.
B. GENERAL TERMS AND CONDITIONS OF ORDER
1. Quality Management System (QMS). Supplier agrees to adhere to certain QMS Functions or maintain
a certificate of registration to a recognized QMS standard, such as ISO 9001, AS9100, etc.
a. Third-party registration must be through an accredited agency with annual audits performed at
a minimum.
b. QMS functions for suppliers that lack formal registration include Document and Records Control,
Maintenance and Calibration of Equipment, Training and Competency program for all personnel,
Inspection processes with defined records, Control and Handling of rejects, and other pertinent
controls defined in other applicable sections of this document.
c. Any changes to the QMS as originally provided must be communicated to company quality
immediately for risk assessment.

2. Right of Access. We reserve the right to review the processes and records associated with this order
at all suppliers’ facilities with appropriate notification. This right extends to our customers,
applicable regulatory agencies, and any sub-tier suppliers used in the fulfillment of this order.
3. Supplier Evaluation. We reserve the right to plan and perform an on-site supplier evaluation to
ensure Terms and Conditions of order listed within this document and associated purchasing
documents can and are being met. Such evaluations can be part of initial approval activities, on-
going approval practices, or due to negative performance trends.
4. Supplier Performance Monitoring. We monitor and measure on time delivery and quality
performance of all suppliers to ensure continued approval. Failure to meet desired performance
levels can result in a Corrective Action being submitted, re-evaluation, or removal from approved
status.
5. Sub-Tier Sources. If any of this order is outsourced to your suppliers, all applicable requirements and
specifications must be communicated (including all applicable key characteristics) to each sub-tier
supplier used.
6. Records. Unless specifically noted on the PO, records must be maintained on file for complete
traceability to the OEM/Material used for a minimum of 10 years.
7. Counterfeit Prevention. Supplier adheres to the requirements of all counterfeit prevention protocols
to ensure only authentic and approved parts are provided. Please see AS5553, AS6174, and AS6081
for guidance.
8. Corrective Action. Supplier agrees to respond to any submitted Supplier Corrective Action Requests
(SCAR’s) in a timely manner with appropriate correction, root cause, and prevention of recurrence.
Guidance for completing a SCAR can be provided upon request.
9. Acceptance and Approval. LTTS reserves the right to approve or specify any designs, tests, inspection
plans, verifications, use of Statistical Techniques for product acceptance, and any applicable critical
items and associated key characteristics. This right extends to designation of requirements for test
specimens for design approval, inspection/verification, investigation, or auditing.
10. Shelf-Life Controls. All items that contain expiration dates or specific handling requirements must be
clearly identified on product and paperwork provided. All shelf-life items with an expiration date
must have 75% of life remaining. Deviations from these requirements will result in a rejection and
items returned to the supplier.
11. Shipping Documentation. Supplier shall provide a proper Bill of Lading signed by the Carrier, or any
other legally applicable documents providing title to the goods to Purchaser upon delivery, fully
protecting all partis in case of damage in transit. All costs incurred due to improper packing will be
the responsibility of the supplier.
C. PART & COMPONENT PROVIDERS / DISTRIBUTION CENTERS
1. Configuration. Supplier agrees to provide parts defined within the associated PO to the revision level
noted. If no revision level is noted, the latest revision level is required.
2. Verification Records. Supplier agrees to provide conformance records of parts provided to ensure
items meet specification and performance requirements. A Certificate of Conformance is acceptable.
D. MANUFACTURERS
1. Records. In addition to B6, the following records must also be retained as noted on the corresponding
PO:

a. Manufacturing Traveler/Routers that indicate complete operations and traceability to materials
used
b. Inspection and Test Reports, including First Article Inspection (FAI)
c. Certificates of Conformance
d. Equipment maintenance or calibration records
e. Personnel qualifications
2. Operational Controls. All manufacturing activities must be in accordance with applicable
specifications and performed by qualified/competent personnel with records of training/competence
maintained as a quality record (see C1 above) and available upon request.
3. Configuration. Any differences between what is listed above and what is provided by the supplier
must be clearly identified, communicated, and approved prior to shipping. Supplier is not allowed to
modify drawings, specifications, or product characteristics without written consent of our
engineering and quality departments.
4. Verification & Release. When utilizing sampling inspection as a means of verification, the method
must be in accordance to a statistically valid standard (i.e. ANSI Z1.4 or equivalent).
5. Nonconformance. Detection of a nonconforming product regarding any order (currently in work or
previously shipped) must be promptly communicated to our quality department for evaluation.
E. SERVICES AND SPECIAL PROCESS PROVIDERS
1. Process Controls. All special process activities must be in accordance with applicable specifications
and performed by qualified personnel with appropriately controlled/calibrated equipment. These
records will be made available upon request per C1. Any changes to processes or process validation
must be communicated to the Quality department for evaluation.
2. Calibration. Service providers must provide records of calibration that include received condition,
returned condition, measurement results, reference to procedures used, and metrological
traceability to applicable NIST standards. While not required, calibration providers are preferred to
have a third-party registration to an appropriate quality standard, such as ISO 17025.
3. Inspection & Testing. Coordinate Measuring Systems (CMS) used to inspect and approve release of
products must be an approved method and periodically validated in accordance with established
procedures/instructions.
a. Full reports are provided, and calibration/validation records of equipment used are available
upon request.