1. SpaceX Supplier Update
Dec-2018

2. U.S. Export Controlled. ITAR Approval Required For Foreign Transfer
SpaceX Proprietary Information delivered with Limited Rights. Follow the instructions on the title page.
U.S. Export Controlled. ITAR Approval Required For Foreign Transfer

3. U.S. Export Controlled. ITAR Approval Required For Foreign Transfer
SpaceX Proprietary Information delivered with Limited Rights. Follow the instructions on the title page.
U.S. Export Controlled. ITAR Approval Required For Foreign Transfer

4. U.S. Export Controlled. ITAR Approval Required For Foreign Transfer
Table of Contents
Universal Compliance Requirement
Supplier Manual Updates
Section 3.4: Order of Precedence for Technical Documents
Section : Identification and Marking
Section 4.3.3: Electrical Discharge Machining (EDM)
Section 4.4.7: Inspection Requirements
Miscellaneous Minor Updates
Supplier Awareness – Prohibited Practices
SpaceX Proprietary Information delivered with Limited Rights. Follow the instructions on the title page.
U.S. Export Controlled. ITAR Approval Required For Foreign Transfer

5. Universal Compliance Requirement
** Supplier is responsible for complying to requirements as stated in Supplier Manual; absence of corresponding Quality Clauses does not exempt supplier from any requirements stated in supplier manual **
Supplier Manual (SPX )
Compliance to the entirety of the document is required and acceptance of the Purchase order is a record of the supplier’s understanding to perform.
Example:
Supplier Manual Section 4.2.2: Requires supplier to be able to trace backward from fabricated hardware to the records or material from which the item, part, and material originated.
‘Quality Clause 10a: raw material traceability’ requires suppliers to provide record of above stated material traceability requirement being met, however, absence of this QC from the PO does not exempt supplier from maintaining raw material traceability.
The requirements in the Supplier Manual are applicable for all SpaceX orders to Flight and Non-Flight suppliers. In addition, the Purchase Order may cite specific numbered quality clauses from SPX Quality Clause Attachment for Purchase Orders. When referenced, compliance to those clauses is required, and acceptance or performance of the order is a record of the Supplier’s understanding and compliance to those requirements.
Material Certificate
SPXQC-10a: RAW MATERIAL TRACEABILITY The Seller shall furnish a complete set of material certifications traceable to lot, batch, block, or heat number of the mill or original material manufacturer. Certifications generated by the supplier shall be signed by the material supplier’s authorized quality representative, and indicate the representative’s title.
Material Test Report
SPXQC-10b: RAW MATERIAL TEST RESULTS For non-proprietary materials, the Seller shall furnish all chemical and physical test reports & results applicable to the material specification. Such reports shall be traceable to the lot, batch, block, or heat lot number of the original material manufacturer or mill. All test results traceable to the materials supplied must be kept on file for a minimum of seven (7) years unless otherwise specified by the SpaceX purchase order.

6. Supplier Manual Updates

7. U.S. Export Controlled. ITAR Approval Required For Foreign Transfer
SPX : Supplier Manual
Supplier Manual Section 3.4: Order of Precedence for Technical Documents
Objective: Standardizes the means of flowing exceptions, waivers or deviation from a technical requirement (Drawing, Specification, Quality Requirement etc.) to Supplier
Change/Update:
In the event of a conflict in technical requirements, the following order of precedence shall prevail:
Issue Tickets
Drawings
Specifications cited on the drawings
Note: Contact the SpaceX authorized buyer regarding any questions or concerns. The configuration requirements specified in the Purchase Order will contain applicable drawing, associated revision levels, supplemental drawing data, quality flow-downs, and customer flow-downs
SpaceX Proprietary Information delivered with Limited Rights. Follow the instructions on the title page.
U.S. Export Controlled. ITAR Approval Required For Foreign Transfer

8. SPX : Supplier Manual
Supplier Manual Section 3.4: Order of Precedence for Technical Documents
Change/Update (Continued):
If the purchased part is a Manufacturing Part Number (identified by the format NNNNNNNN-DDDMXX), it may include a “less than” condition as dictated by the Part Description on the PO. This description may only authorize partial completion/omission of requirements – an Issue ticket is not required in this case. The description may not authorize a deviating condition that cannot be returned to specification – this would require an Issue Ticket.
If the purchased part/service is for specific operation(s) related to a SpaceX Work Order (identified by the PO Line being present in the “Work Order Information” table in the “Quality Requirements” section of the Purchase Order), Supplier is authorized to complete just the scope of work outlined in the “Specification” field on the PO line. This scope of work may only authorize partial completion/omission of requirements – an Issue ticket is not required in this case. The scope of work may not authorize a deviating condition that cannot be returned to specification – this would require an Issue Ticket.
In the event that requirements on a Purchase Order/Contract conflict with accompanying technical requirements, this deviation must be separately authorized by an Issue Ticket. (note that this includes requirements flowed on the Purchase Order or contract, including Terms and Conditions, Supplier Manual (SPX ) and SpaceX Quality Clause Attachment for Purchase Orders SPX ”

9. SPX : Supplier Manual
Supplier Manual Section 3.4: Order of Precedence for Technical Documents
Implementation:
Purchase Order Notes, s, Text Messages flowing instructions that are in conflict, in deviation or overruling Drawing, Specifications are not acceptable
Supplier shall use SRI for any deviation, exception or waiver requests
Any deviation, exception or waiver requests originating from SpaceX shall be communicated though a Dispositioned Issue Ticket. Requestor is responsible for initiating issue ticket.
Issue Ticket Shall be PO_Line specific.
Manufacturing Parts and/or Issue tickets are expected to be created by (exception) requestor(s) furthermore, Suppliers should not be expected to request these exceptions on behalf of SpaceX
If the purchased part is a Manufacturing Part Number (identified by the format NNNNNNNN-DDDMXX), it may include a “less than” condition as dictated by the Part Description on the PO. This description may only authorize partial completion/omission of requirements
An Issue ticket is not required in this case.
The description may not authorize a deviating condition that cannot be returned to specification (this would require an Issue Ticket).
If the purchased part/service is for specific operation(s) related to a SpaceX Work Order (identified by the PO Line being present in the “Work Order Information” table in the “Quality Requirements” section of the Purchase Order), Supplier is authorized to complete just the scope of work outlined in the “Specification” field on the PO line.
Issue ticket is not required for completion/omission of requirement per scope of Service
The scope of work may not authorize a deviating condition that cannot be returned to specification (this would require an Issue Ticket).

10. U.S. Export Controlled. ITAR Approval Required For Foreign Transfer
SPX : Supplier Manual
Supplier Manual Section : Identification and Marking
Objective: To provide guidelines around standard rework of scribing related issues
Change/Update:
In cases where a part is incorrectly marked (i.e. incorrect PO#, part #, rev, etc.), and requires standard rework to bring the part marking back into conformance, the supplier can strike-out the incorrect marking with a single line and fix accordingly as long as it still conforms with the method and location specified on the drawing
Implementation:
Ensure that the incorrect information is striked out with a single line
Re-scribe the correct information using specified method and within specified location
If cannot meet the requirements; submit SRI
SpaceX Proprietary Information delivered with Limited Rights. Follow the instructions on the title page.
U.S. Export Controlled. ITAR Approval Required For Foreign Transfer

11. U.S. Export Controlled. ITAR Approval Required For Foreign Transfer
SPX : Supplier Manual
Supplier Manual Section 4.3.3: Electrical Discharge Machining (EDM)
Objective: Implementation of EDM process as a Special Process
Change/Update:
For all SpaceX parts, Electrical Discharge Machining (EDM) is source controlled and shall be performed by a SpaceX approved vendor. Suppliers performing EDM shall be approved for and meet the requirements of SPX When a subcontractor is used for EDM work, it is the Supplier’s responsibility to flow down and ensure the fulfillment of SpaceX’s requirements. An EDM report shall be provided by the processor for each shipment of material. The report shall state that the parts have been EDM, tested , and recast layer removed in accordance with specified requirements and that they conform to acceptance test requirements of SPX   This report shall include, at a minimum; the Purchase Order #, lot number, SPX , part number, and quantity.
Implementation:
Sub-contracting of EDM process shall be done to suppliers on Approved Supplier List available on
Supplier performing EDM in-house or in a captive type setting shall request approval for and meet requirements stated in SPX (Available on
SpaceX Proprietary Information delivered with Limited Rights. Follow the instructions on the title page.
U.S. Export Controlled. ITAR Approval Required For Foreign Transfer

12. U.S. Export Controlled. ITAR Approval Required For Foreign Transfer
SPX : Supplier Manual
Supplier Manual Section 4.4.7: Inspection Requirements
Objective: Standardization of CMM programming practices
Change/Update:
Supplier shall adhere to the coordinated measurement machine (CMM) probe density and measurement guidelines as noted in SPX when programmable or manual CMM is used to inspect SpaceX hardware. SpaceX may audit supplier CMM programs for adherence to SPX at any time, including during a routine Source Inspection event
Implementation:
Any CMM programs created or updated after 12/10/2018 should be in compliance to SPX
SpaceX will require compliance from 1/1/2019
SpaceX Proprietary Information delivered with Limited Rights. Follow the instructions on the title page.
U.S. Export Controlled. ITAR Approval Required For Foreign Transfer

13. SPX-00007672: Supplier Manual Miscellaneous Minor Updates
Section – Removed “Assemblies” section and added “SpaceX PO/WO” section
Section – added “or quality representative” and “If the supplier requires an RMA & does not provide one within 3 business days of the request, SpaceX reserves the right to proceed with return of parts/material to supplier with the expectation of a credit memo”
Section – added “In cases where customer provides specific traceability or serialization requirements, this traceability shall be maintained throughout the process”
Section – changed to state that records must be retained at least five years following “completion of contracted work” instead of “following SpaceX final payment under its prime contract”. Added “Corrections to any processing records shall only be made with a single line-through, date, and initial or stamp method. White-out or other similar methods are prohibited”
Section – updated minor changes to address the Source Inspection Form submittal process and that the SI Form shall be signed and stamped by the SI. Deleted section
Section – added that the C of C be “paginated to include and identify any/all supporting documents, if applicable”
Section – added “Source Inspection may be used to validate First Article Inspection”

14. SPX-00007672: Supplier Manual Miscellaneous Minor Updates (Continued)
Section – added “Proof of validation could include CMM or other inspection report confirming tool conformance, calibration data, or SpaceX approval”
Section – added metric units and “The supplier shall also verify that all internal features are free of burrs”
Section – added “Equipment shall be identified by ID or S/N and traceable to recall date and person performing calibration”
Section 4.3 Special Process – added EDM
Section – added “and identify that SpaceX is the end customer”
Section – deleted “NDT Record Retention” as requirements are addressed in and 4.3.3
Section – added/updated “the most complete information possible such that the people reading the ticket have a clear understanding of the problem. At a minimum, a clear statement of the nonconformance (including the suspect nonconforming condition), immediate and containment actions” and “and quantity and scope of affected material, to include traceability”
Section – deleted “For Electrical, Electronic, and Electromechanical (EEE) parts and assemblies the supplier shall ensure compliance to AV2218”
Section Definitions – COTS – restructured for clarity based on feedback

15. Supplier Awareness – Prohibited Practices

16. Prohibited Practices
**Falsifying or misrepresenting quality records may result in civil liability and criminal punishment**
Supplier Quality Alert
SpaceX has a zero tolerance policy for the falsification or misrepresentation of any quality records. Falsification includes the alteration of any type of documentation.
Quality records are defined as documented evidence that processes are executed according to the quality systems plan and requirements, such as inspection results, audit results, calibration data, data sheets, and more.
Failure to report suspect activities observed at any level of the SpaceX supply chain will also be considered a violation of ethical quality practices. 
All suspect cases will undergo a full quality investigation. In the event that a case is confirmed to be in violation, SpaceX will pursue all available remedies.
SpaceX has a zero tolerance policy for the falsification or misrepresentation of any quality records. Falsifying or misrepresenting quality records may result in civil liability and criminal punishment.
SpaceX treats the act of falsifying quality records as a severe breach of trust and a violation of SpaceX’s quality policy and your purchase order.  Falsification includes the alteration of any type of documentation, including product conformance records.  Failure to report suspect activities observed at any level of the SpaceX supply chain will also be considered a violation of ethical quality practices.  All suspect cases will undergo a full quality investigation.  In the event that a case is confirmed to be in violation, SpaceX will pursue all available remedies, including quality remediation actions.  All parts previously shipped by the supplier will be subject to strict review and will continue to be reviewed until the violation is fully remedied, which may include the implementation of corrective actions.
Quality records are defined as documented evidence that processes are executed according to the quality systems plan and requirements, such as inspection results, audit results, calibration data, data sheets, and more.
Any exceptions to your purchase order contract must comply with SpaceX’s Supplier Request for Information (SRI) process. If you have any questions or concerns about documentation compliance, please reach out to your SpaceX representative.

17. Prohibited Practices
**Unauthorized delegation of seller’s duties during performance of a purchase order is not acceptable**
Objective:
Intellectual property shall be protected and not exposed
Every supplier facility contracted is reviewed for compliance
We provide best in class services to the U.S. Government & defense establishments
Requirements
SpaceX Standard T&C – Section 3: Any assignment of SELLER's Contract rights or delegation of SELLER's duties shall be void, unless prior written consent is given by SPACEX Authorized Representative.
Supplier Manual – Section 4.8.4: Sellers are prohibited from relocating any production, manufacturing, and/or processing facilities during performance of a SpaceX Purchase Order without prior notification to SpaceX. This is necessary to afford SpaceX an opportunity to examine such facilities for compliance with quality assurance requirements, including any necessary approvals. In addition, if there is a change in senior management the Seller shall notify SpaceX.”
SpaceX’s innovative technology & designs have allowed SpaceX to achieve landmark feats and is the cornerstone of SpaceX future business and commercial success. It is of imperative importance and required by contract that intellectual property is well protected and not exposed through unauthorized delegation.
Furthermore, SpaceX actively provides launch services, cargo transportation services, and crew transportation services to the U.S. Government & defense establishments. These services are not only critical but also dual-use in nature, and can be used for harmful purposes; including use against United States. SpaceX is required to follow export compliance and ensure that these are flown down to suppliers through our contract.
Due to criticality of these services, SpaceX reviews every supplier facility for compliance. Suppliers are contracted for the scope of work listed on the purchase order and any unauthorized delegation of this work is not acceptable.
Ensure delegation of activities are not happening on your parts. Any such cases should be brought up to SpaceX for further review.

18. Thank you very much!
Always request an explanation / clarification when receiving your RFQ/PO from your Buyer in regard to exactly what is needed per line / per PO.
Any quality concerns can be clarified by contacting your Supplier Development Engineer or Supplier Quality Specialist.