Suppliers

GENERAL EXPECTATIONS

Alignment with Elbit America's values of providing high-quality, innovative products and services at competitive prices, as well as adherence to a high standard of business ethics and code of conduct.

MINIMUM REQUIREMENTS

All suppliers will be considered against current requirements for all of Elbit America, not just one site. If a need exists, the supplier will be contacted with application instructions to begin the evaluation process. The evaluation of your business as qualified to do business with Elbit America includes 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 to suppliers that hold 3rd party quality management system certification. Suppliers of components must be the OEM (original equipment manufacturer), OCM (Original Component Manufacturer), franchised or authorized distributor. Suppliers of assemblies using components must have a SAE AS5553 and AS6174 counterfeit risk mitigation process assuring traceability to OEM, franchised or authorized distributor.

INNOVATION

We look for suppliers that are subject matter experts in what they provide, including technical expertise. Suppliers that are innovative provide an additional level of competitive edge to their customers. Collaborative engineering, design and development will yield superior products.

COMMITMENT

The ability to meet and maintain a high level of accuracy to commit dates and quality standards is critical to our business. The following chart shows the quality expectations based on parts accepted and the tolerances and scores based on part counts delivered.

Suppliers Graphics 2

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 a critical 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.

FAQ - Covered Defense Information Assessment - NIST SP 800-171

Contractors are required to implement NIST SP 800-171, as soon as practical, but not later than December 31, 2017.

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.

For all contracts awarded prior to October 1, 2017 the contractor shall notify the DoD Chief Information Officer (CIO), via email at osd.dibcsia@mail.mil within 30 days contract award, of any security requirements specified by NIST SP 800-171 not implemented at the time of contract award.

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

Elbit America is an active supporter of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These are Federal programs designed to fund small businesses to conduct research and develop emerging technology. Whether working as a subcontractor or a technology mentor, Elbit America seeks to provides small businesses with various assistance during different phases of their SBIR/STTR projects; including supporting technology requirements, evaluation, co-development, and insertion into larger systems.

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QUALITY

At Elbit America we are committed to providing safe, quality products and services. It is our goal to work collaboratively with our suppliers to exceed our customers’ increasing expectations, achieving outstanding performance through best in class products, services and processes. We expect our suppliers to conduct their operations in a socially and environmentally responsible manner, aligning with Elbit America's values and ethics policy.

Our supply base is critical to winning in our businesses, in our products and, in delivering to our end customers.

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 cause will result in a non-conformance against an Elbit America supplier.

NEW Quality Codes Post 2023

ElbitAmerica, Inc. (Fort Worth, TX, Talladega, AL, Merrimack, NH, Charleston, SC)

Download

M7 Aerospace, LLC (San Antonio, TX) [Use prior to 2023]

Download

Quality Codes by Site PRIOR to 2023

ElbitAmerica, Inc. (Fort Worth, Texas)

Download

International Enterprises, LLC (Talladega, Alabama)

Download

Kollsman, Inc. (Merrimack, New Hampshire)

Download

M7 Aerospace, LLC (San Antonio, Texas)

Download

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.

NOTIFICATION OF QUALITY ESCAPE

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 a 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.

CA-0401 Supplier Material Review Request (SMRR)

PRODUCT INSPECTION

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

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 the upmost 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. Our selection of suppliers with aligned interests in sustainability help contribute to continual growth and a better future.

For a sustainable supply chain, suppliers are expected 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, hazardous waste handling and compliance with ISO 14000.

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GENERAL EXPECTATIONS

MINIMUM REQUIREMENTS

INNOVATION

COMMITMENT

CYBERSECURITY

OUTREACH PROGRAMS

SMALL BUSINESS INNOVATION RESEARCH & TECHNOLOGY TRANSFER PROGRAMS

QUALITY

Sustainability

TERMS & CONDITIONS