- 01 General Expectations
- 02 Minimum Requirements
- 03 Innovation
- 04 Commitment
GENERAL EXPECTATIONS
MINIMUM REQUIREMENTS
When evaluating suppliers, we consider requirements that encompass all Elbit America and our affiliate locations. If we determine a need exists for the products or services you offered, we will contact the supplier and provide instructions for completing an official supplier application and additional items required for initiating an evaluation process. This evaluation process consists of key elements, including but not limited to, a risk assessment of your financial viability and compliance with Environmental Health and Safety regulations (ethical, legal, security, political regulations and past performance).
Procured material and services used in Elbit America deliverables to customers must be sourced by suppliers that possess a 3rd party quality management system certification. Suppliers of components must be the original equipment manufacturer (OEM), Original Component Manufacturer (OCM), or a franchised/authorized distributor. Suppliers of assemblies using components must have a SAE AS5553 and AS6174 counterfeit.
INNOVATION
COMMITMENT
Meeting and maintaining supplier commit dates and high-quality standards is essential. The chart below demonstrates quality expectations based on parts accepted along with tolerances and scores based on part counts delivered.
CYBERSECURITY
Elbit Systems of America (ESA), LLC is committed to safeguarding its technology products, enterprise computer systems, and data from unintended or unauthorized access, change, or destruction. It is mission critical that ESA suppliers understand the importance of cybersecurity and are able to effectively protect and/or mitigate risks to cover defense information as well as defense related products or services. A supplier’s risk rating is an essential component of the overall decision criteria that will be used when selecting suppliers.
Adhering to DoD Cybersecurity Requirements:
In October 2016, the Department of Defense (DoD) issued an updated rule that increased the compliance obligations of defense contractors and subcontractors with regards to the protection of unclassified Covered Defense Information (CDI) and the reporting of cyber incidents on unclassified information systems that contain CDI. Additionally, the updated rule implemented cybersecurity requirements for contractors that intend on using external cloud service providers to store, process, or transmit CDI in performance of a U.S. Government contract.
Suppliers can report a cyber incident to Elbit Systems of America through ESA’s Computer Incident Response Team (CIRT) at CIRT@elbitamerica.com.
Learn More About Supplier Cybersecurity
- Contractors that use cloud service providers to store, process, or transmit CDI shall require and ensure that the cloud service provider meets security requirements equivalent to those established by the U.S. Government for the Federal Risk and Authorization Management Program (FedRAMP) Moderate baseline (https://www.fedramp.gov/) and that the cloud service provider complies with the requirements in paragraph (c) through (g) of DFARS Clause 252.204-7012.
- Contractors must rapidly report cyber incidents to the DoD at https://dibnet.dod.mil/portal/intranet/.
- DFARS Clause 252.204-7012 must be included in all subcontracts for operationally critical support, or for which subcontract performance will involve covered defense information.
Depending on the type of component, product, system or service you provide, you may also fall into a classification governed by NIST SP 800-161 Supply Chain Risk Management Practices for Federal Information Systems and Organizations. This document relates to cybersecurity product assurance. Certain ESA products may be identified as critical or strategic to our customer which requires the identification of components, subsystems, systems, software, firmware, development systems, test equipment and services that could potentially pose cybersecurity threats to our products and add risks to our customers using our products. If what you provide has been identified as one of these "items", then additional audits, screening and agreements may be necessary to ensure the protections required to safeguard our customer and products.
SMALL BUSINESS INNOVATION RESEARCH & TECHNOLOGY TRANSFER PROGRAMS
QUALITY
We are committed to providing safe, quality products and services. Our suppliers are expected to conduct their operations in a socially and environmentally responsible manner, aligning with Elbit America's values and ethics policy.
Clauses
Every purchase order contains a list of quality clauses along with directions on where to download the reference document that details the requirements of each individual quality clause. It is the responsibility of the supplier to review these quality clauses before submitting a quote for any purchase order request. The quality clauses found in a purchase order originate from many sources including our internal requirements, customer requirements, DFARS and end user requirements. All quality clauses are equally important and failure to comply with an applicable quality clause will result in non-conformance.
Quality Codes 2023-Present
Corrective Action
A Corrective Action Request (CAR) is a formal notification from a Supplier Quality Management (SQM) source, requesting the cause of nonconformities of a product, process, or service be eliminated, with the objective of preventing recurrence.
Typically a supplier will be notified of a (CAR) via email from a SQM source to the suppliers contracting office and quality representative. The notification will include details on the non-conformance as well as dates when responses are requested.
Our Approach
In general, we expect our suppliers to follow the "8D" approach when responding to a CAR. The "8D" approach includes:
- D0: Plan—Plan for solving the problem and determine the prerequisites.
- D1: Use a team—Establish a team of people with product/process knowledge.
- D2: Define and describe the problem—Specify the problem by identifying in quantifiable terms the who, what, where, when, why, how, and how many (5W2H) for the problem.
- D3: Develop interim containment plan; implement and verify interim actions—Define and implement containment actions to isolate the problem from any customer.
- D4: Determine, identify, and verify root causes and escape points—Identify all applicable causes that could explain why the problem occurred. Also identify why the problem was not noticed at the time it occurred. All causes shall be verified or proved, not determined by fuzzy brainstorming. One can use 5 Whys and cause and effect diagrams to map causes against the effect or problem identified.
- D5: Choose and verify permanent corrections (PCs) for problem/nonconformity—Through preproduction programs, quantitatively confirm that the selected correction will resolve the problem for the customer.
- D6: Implement and validate corrective actions—Define and implement the best corrective actions.
- D7: Take preventive measures—Modify the management systems, operation systems, practices, and procedures to prevent recurrence of this and all similar problems.
- D8: Congratulate your team—Recognize the collective efforts of the team. The team needs to be formally thanked by the organization.
Non-conforming goods which deviate from the requirements contained in the PO, drawings or specifications must be documented by the Supplier and submitted to Elbit Systems of America Quality for approval.
Non-conforming products shall not be shipped until authorized by Elbit Systems of America Quality and must be marked with special nonconformance documentation when shipped.
At no point is the supplier authorized to send product to Elbit Systems of America which does not meet our Engineering requirements without first requesting deviation. If supplier finds a discrepancy after an order is shipped, it is their responsibility to notify Elbit Systems of America Quality.
Form No. CA-0401, titled "Supplier Material Review Request (SMRR)" shall be used by the seller to submit any quality/drawing deviations to buyer for review and approval, prior to shipping any nonconforming product. If acceptable, an approved copy of the SMRR must accompany each shipment.
First Article Inspection
Suppliers are expected to complete First Article Inspection Reports (FAIR) as required by Elbit Systems of America site Quality Codes. First Article Inspection requirements may be included in the contract or purchase order. Supplier’s shall comply with First Article Inspection requirements in accordance with SAE AS9102. The FAIR shall be completed on SAE AS9102 current revision forms. The approved forms can be obtained on the SAE IAQG website at https://www.sae.org/iaqg/forms/index.htm
Elbit Systems of America has provided an SAE AS9102 training package below that provides detailed guidance regarding how to successfully complete the FAI forms that is consistent with the latest revision of SAE AS9102. SAE AS9102 Filling Guidance
Source Inspection
Supplier’s products or services may be subject to source inspection by Elbit America, representatives of Elbit Systems of America or applicable government or regulatory agencies. Source inspection requirement will be included on the contract or purchase order and may apply to any and all operations performed by the Supplier or the Supplier’s sub-tier sources, including prior to delivery of products to Elbit America. The Supplier shall provide the necessary access, equipment and resources required to effectively accomplish the source inspection.
Sustainability
We uphold standards for ethical and sustainable business practices in every aspect of business conduct and performance. Elbit America is committed to sustainable business practices by working within our supply chain to reduce adverse environmental impacts, promote human rights, health, safe environments, ethical behavior, and to promote responsible supplier growth.
For a sustainable supply chain, suppliers are encouraged to engage in efforts that protect the environment. Some examples include, but not limited to: recycling programs, complying with federal/local environmental regulations (EPA), reducing energy consumption, water conservation, paper consumption and hazardous waste handling.
We also expect suppliers to provide a safe work environment
for employees. For more information, please see:
Additional areas that require compliance include:
TERMS & CONDITIONS
ESA – Night Vision Firm Fixed Price (For Government Programs) FAR/DFARS Flowdown Provisions
Elbit Systems of America Terms and Conditions 2022
Elbit Systems of America Terms and Conditions 2021
Elbit Systems of America Terms and Conditions 2017
- Elbit Sytems of America General Provisions for Purchase Orders and Subcontracts 2017
- FAR DFAR Flowdown Provisions for Commercial Items 2017
- FAR DFAR Flowdown Provisions for Non-Commercial Items 2017
Elbit Systems of America Terms and Conditions 2015
- Elbit Sytems of America General Provisions for Purchase Orders and Subcontracts 2015
- FAR DFAR Flowdown Provisions for Commercial Items 2015
- FAR DFAR Flowdown Provisions for Non-Commercial Items 2015
Elbit Systems of America Terms and Conditions 2014
- Elbit Systems of America General Provisions for Purchase Orders and Subcontracts Feb 2014
- FAR DFAR Flowdown Provisions for FFP Commercial Items ESA-FFP-USG1 5-Feb-2014
- FAR DFAR Flowdown Provisions for FFP Non-Commercial Items ESA-FFP-USG2 5-Feb-2014
Archived Site Versions of Terms and Conditions
EFW, Inc. (Fort Worth, TX)
Kollsman, Inc. (Merrimack, NH)
International Enterprises Industries, LLC (Talladega, AL)
M7 Aerospace, LLC (San Antonio, TX)