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National Aeronautics And Space Administration

MEMORANDUM OF UNDERSTANDINGBETWEEN

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (NASA)OFFICE OF SAFETY AND MISSION ASSURANCE (OSMA)

ANDPARTICIPATING NASA PRIME CONTRACTORS,

CALIFORNIA INSTITUTE OF TECHNOLOGY (CALTECH)/JET PROPULSION LABORATORY (JPL), AND

THE JOHNS HOPKINS UNIVERSITY/APPLIED PHYSICS LABORATORY (JHU-APL) FOR OPERATION OF THE

NASA JOINT AUDIT PLANNING COMMITTEE

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REVISION HISTORY

Revision Letter

Paragraph Number

Description Date

MOU Created 1/1/07A 1.a.(9) Added a JAPC objective to provide continuous

improvement feedback to governmental and third party quality organizations.

9/9/08

9.e Deleted …calculating/posting supplier QLI and performance metrics.

13.a Added guidelines for identifying key suppliers to be nominated for JAPC audits.

13.b Supplier invitation letter modified to reflect further benefits of the JAPC program, to define competitive relationship, to indicate that audit results may be shared with third party certification/accreditation bodies, and to request that suppliers identify JAPC member organizations with whom they compete.

Modified to require that suppliers declining JAPC membership be notified by the lead JAPC organization of their intention to perform a quality system audit, and be provided a second invitation for the supplier to become a JAPC supplier. Suppliers responding affirmatively to the lead organization’s invitation are consolidated onto a final JAPC supplier list.

13.c Clarified criteria for identification of lead organization on a voluntary basis.

13.d.(2) Expanded to indicate audit team collaboration to arrive at a final, agreed upon, audit date.

13e Removed previous paragraph13e – Identifying Joint Audit Opportunities

13e(3-6) Added lead organization responsibilities on team make up and competency, and definition of competitive relationship between member organization and supplier.

Modified to reference different JAPC audit types (e.g., full QMS, limited scope QMS, process audit) and to require limited scope QMS auditing for AS9100 certified suppliers unless quality data indicates that a full scope audit is warranted.

13e(9) Added criteria to use in determining size of audit teams.

13e(11) Changed to clarify coordination with supplier resident government representatives.

13f(2) Added instructions to ensure JAPC objectives are communicated to the supplier during in-briefs.

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REVISION HISTORY (CONTINUED)Revision Letter

Paragraph Number

Description Date

A 13f(6) Modified to provide direction to communicate JAPC neutral position on supplier approval, and to reference the performance of follow-up assessments to ensure effective corrective action.

9/9/08

Appendix A Added the definition for Critical Process.Appendix B Added new Appendix B, High Risk Quality System

Elements. Appendix C Added additional Special Processes. Appendix D Added Non-Disclosure Agreement Form.

Removed Appendix D – Commodity Codes.Removed Appendix E – Defect Codes.Removed Appendix F – Quality Leading Indicators.

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1. PURPOSE

a. This Memorandum of Understanding (MOU) sets forth instructions for operation of the NASA Joint Audit Planning Committee (JAPC). The JAPC is a joint Government – Industry forum for the coordination and conduct of supplier quality audits and management of resultant data. JAPC objectives are:

(1) Sharing of supplier quality audit data

(2) Enhancing the capability to identify supplier risks and tailor quality assurance actions

(3) Reducing costs by combining auditing resources

(4) Reporting Agency-wide quality metrics and trends

(5) Standardizing supplier auditing practices

(6) Sharing of best practices and lessons learned

(7) Identifying and facilitating the resolution of common supplier quality issues, problems, and risks

(8) Eliminating duplicative audits and reducing supplier costs and work interruptions related to customer audits

(9) Providing continuous improvement feedback to third party, Industry Controlled Other Party (ICOP), and Government programs which serve to assess the conformance and/or effectiveness of supplier quality management systems or quality system processes. Examples include AS9100 Certification/Registration Bodies (CRB) accredited in accordance with AS9014 and Nadcap special process accreditation.

b. This MOU establishes requirements for:

(1) Planning and scheduling audits

(2) Conducting audits

(3) Documenting and posting audit results

(4) Reviewing/approving supplier responses

(5) Closing audit findings

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(6) Analyzing and trending audit data

2. TITLE

Nonreimbursable Space Act agreement among members of the National Aeronautics and Space Administration's (NASA) Joint Audit Planning Committee (JAPC).

3. AUTHORITY

This agreement is entered into pursuant to 42 U.S.C. 2473(c)(5) and (c)(6), section 203(c) of the National Aeronautics and Space Act of 1958, as amended.

4. SCOPE/APPLICABILITY

a. The terms of this MOU apply to NASA OSMA, participating NASA prime contractors, CalTech JPL, and JHU-APL.

b. This MOU applies to all NASA Programs and Projects.

c. This MOU applies to joint audits only. Joint audits are defined as audits of suppliers that are common to multiple JAPC members and who are identified pursuant to section 13.a of this MOU.

d. Joint audits apply to quality management system and special process audits. Joint audits do not include program-specific product audits.

e. Joint audits do not include audits of JAPC member organizations or NASA prime contractors, including circumstances where a JAPC member organization acts as a common supplier to other JAPC member organizations. 

f. The sharing of supplier quality data applies to quality data generated during the conduct of joint audits.

5. MEMBERSHIP

The JAPC is a voluntary organization comprised of representatives from NASA Program/Project Offices, NASA Headquarters, NASA Centers, NASA prime contractors, Defense Contract Management Agency (DCMA), Missile Defense Agency (MDA), Cal Tech JPL, and JHU-APL.

The terms of this MOU do not apply to NASA Program/Project Offices, NASA Centers, DCMA, or to MDA. Participation by these organizations is governed by alternate agreements, understandings, and NASA direction.

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Membership may be voluntarily withdrawn at any time when requested by a JAPC member, thereby terminating the terms of this MOU for the withdrawing JAPC member organization. Continued membership is contingent upon abiding by the requirements contained herein, as determined by the JAPC Chairman.

6. REGULATORY GUIDANCE

This MOU implements general direction provided in Guidance on Federal Conformity Assessment CFR, Part 287, which states that Federal agencies should:

a. Coordinate its conformity assessment activities with those of other appropriate Government agencies and with those of the private sector to reduce unnecessary duplication (Sec 287.1(a)).

b. Participate in efforts designed to improve coordination among governmental and private sector conformity assessment activities (Sec 287.4(g)).

c. Conduct joint supplier audits and share conformity assessment information among agencies (Sec 287.4(h)).

d. Use the results of private sector or other governmental conformity assessment activities to schedule audits more effectively (allowing agencies to reduce the number and extent of audits conducted at companies which are performing in accordance with contract specifications and which are under review by a third party or another agency and to concentrate agency audit efforts on companies which have shown problems in conforming to contract specifications) (Sec 287.4 (e)).

7. CONTRACTUAL EFFECTS

a. The signing of this MOU and participation as a JAPC member organization is voluntary. Abiding by the requirements contained herein, although required for continued participation as a JAPC member, shall not be construed as a performance requirement under NASA contracts. In the event of an inconsistency between the terms and conditions of this MOU and a JAPC member organization prime contract with NASA, the terms of the NASA prime contract shall take precedence.

b. Neither the signing of this MOU nor the participation as a JAPC member organization shall be construed as changing the cost, scope, or schedule requirements of NASA contracts.

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c. Neither the signing of this MOU nor participation as a JAPC member organization shall be construed as altering the organization’s contractual responsibility for delivery of conforming product.

d. This MOU is not intended to preclude or constrain, in any way, individual JAPC member organizations from performing non-joint supplier audits, surveillance actions, or any other quality assurance actions considered necessary to assure delivery of conforming product.

8. CONFIDENTIALITY

a. JAPC member organizations: This MOU does not involve the sharing or disclosing of JAPC member organization quality data.  The posting and sharing of quality data is limited to JAPC supplier data. The disclosure of JAPC member organization data under the auspices of this MOU is expressly prohibited.

b. JAPC suppliers: JAPC audit data shall not be posted for review by other JAPC member organizations until the supplier affirmatively states that the data contained in the audit findings is factually accurate, and that the findings do not contain trade secrets, confidential commercial or financial data, or export controlled information.

JAPC member organizations shall appropriately protect supplier information received under the auspices of this MOU, and shall not disclose/release such information to any external party other than those parties:

(1) Serving in a support capacity consistent with JAPC program objectives;

(2) Determined to have clear need of the supplier data in order to perform their assigned JAPC/quality assurance support functions;

(3) Who are not involved in the supply of hardware products; and

(4) Who have entered into a relevant and binding nondisclosure agreement with the JAPC member organization.

9. RESPONSIBILITIES

a. Chairman – A designated NASA Headquarters, Office of Safety and Mission Assurance, representative is the chairman. The chairman is responsible for providing strategic direction, overseeing development and accomplishment of JAPC objectives, ensuring effective management of the JAPC, and arranging funding for JAPC administrative functions.

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b. Deputy Chairman – The Deputy Chairman is responsible for providing direct support to the Chairman in performance of his/her duties, including representing the chairman in his/her absence.

c. Manager – The Manager is responsible for organizing and administering JAPC activities, including facilitation of meetings.

d. Audit Coordinator – The Audit Coordinator is responsible for managing, tracking, and posting JAPC member audit schedules and audit accomplishment and for ensuring member awareness of joint audit opportunities.

e. Supplier Assessment System (SAS) Coordinator – The SAS Coordinator is responsible for posting JAPC audit results, providing access/links to available sources of supplier quality data.

f. Members – Members are appointed by JAPC participating organizations as their authorized representative for executing the terms of this MOU. Members are responsible for ensuring organization adherence to the terms of this MOU, including attendance at JAPC meetings and submittal of quality data.

10. REFERENCES/RELATED READING

These References/Related Readings are provided as background and for guidance purposes only. Compliance with these References/Related Readings is not required for JAPC participation. The inclusion of these References/Related Readings in this MOU should not be construed to add to or alter, in any manner, the terms and conditions of a JAPC member organization prime contract with NASA.

a. Guidance on Federal Conformity Assessment CFR, Part 287.

b. NPD 1210.2, NASA Surveys, Audits, and Reviews Policy.

c. NPD 2190.1, NASA Export Control Program.

d. NPD 8730.2, NASA Parts Policy.

e. NPD 8730.5, NASA Quality Assurance Program Policy.

f. NPR 8735.2, Management of Government Quality Assurance Functions for NASA Contracts.

g. AS7003, Nadcap Program Requirements.

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h. AS9003, Inspection and Test Quality System.

i. AS9014, Americas Aerospace Quality Group (AAQG) Requirements for Aerospace Quality Management System Certification/Registrations Programs.

j. AS9100, Quality Management Systems, Aerospace Requirements.

k. AS9101, Aerospace Standard, Quality Management Systems Assessment.

l. AS9131, Quality Systems Non-Conformance Documentation.

m. ISO 9000, Quality Management Systems, Fundamentals and Vocabulary.

n. ISO 19011, Guidelines on Quality and/or Environmental Management Systems Auditing.

o. Joint Audit Planning Committee Web Site, https://secureworkgroups.grc.nasa.gov/japc

p. Quality Leadership Forum Web Site, https://secureworkgroups.grc.nasa.gov/qlf

q. Supplier Assessment System Web Site, http://sas.nasa.gov

r. NASA Recommended Practices for Survey/Audit & Assessment/Evaluation Web Site, http://eis.jpl.nasa.gov/qa/sarp (This web site will be updated in the near future)

s. Commercial and Government Entity (CAGE) Code, https://www.bpn.gov/bincs/begin_search.asp

11. MEETINGS

a. Telecon – Telecon meetings will be held every other month, or more frequently as deemed necessary.

b. Face-to-Face – Face-to-face meetings will be held twice a year, normally in conjunction with NASA’s Quality Leadership Forum.

12. DEFINITIONS & ACRONYMS

Definitions and acronyms of standard Quality terms appearing in this document are listed in Appendix A and International Standard ISO 9000.

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13. JOINT AUDIT REQUIREMENTS

a. Identifying Prospective JAPC Suppliers

Each JAPC member shall submit in December for the following calendar year a list of key suppliers that they propose for inclusion in the JAPC program. Key suppliers are suppliers which an organization desires additional/heightened assurance than that provided by the QMS certification and/or Nadcap accreditation processes. Considerations for identification of key suppliers include:

- importance/criticality of product- complexity of product- maturity of supplier and/or product/process- quality performance history - special processes not accredited by Nadcap

Suppliers that are proposed by multiple members shall be incorporated into a consolidated list of prospective JAPC suppliers.

New suppliers, or previously used suppliers that have been inactive and become active after the December cut-off date, may be added to the consolidated list of JAPC suppliers at any time.

b. Developing JAPC Supplier List

NASA shall notify suppliers identified on the consolidated list that they have been identified as a potential NASA JAPC supplier and request the supplier’s written concurrence. Following is sample text for a notification/ concurrence letter.

“(Supplier name) has been identified as a candidate supplier for NASA’s Joint Audit Planning Committee (JAPC) Program. The JAPC is a joint Government – Industry forum for coordinating and integrating supplier quality audits in accordance with United States Code of Federal Regulations (CFR), Part 287, Guidance on Federal Conformity Assessment. The purpose of such Government – Industry coordination is to “reduce unnecessary duplication” (see CFR Sec 287.1(a)); to “reduce the number and/or extent of audits conducted at companies which are performing in accordance with contract specifications” (see CFR Sec 287.4 (e)); and to standardize auditing methodologies. A further goal is to reduce supplier costs and work interruptions related to customer audits. [Note: Identification as a JAPC supplier does not preclude or constrain JAPC member organizations from performing non-JAPC

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audits that they consider necessary to ensure delivery of conforming product, nor does it provide suppliers guarantees concerning a reduction in the number or extent of audits.]

JAPC suppliers are integrated into a “One-NASA” auditing program where suppliers are audited by a designated JAPC member lead organization, rather than being audited separately by multiple JAPC member organizations. Member organizations include NASA Headquarters, NASA Centers, other Governmental organizations, and NASA prime contractors. JAPC audit teams may include representatives from multiple JAPC member organizations. Attached is a list of member organizations. The following JAPC member organizations have stated their intention to perform a quality system audit of your facility during the upcoming calendar year: ________________. 

JAPC audits are limited-in-scope quality management system audits which focus on critical/high risk quality system elements, and may include a review of special manufacturing processes. JAPC audits are performed by leading experts able to provide insight to enhance the effectiveness and conformance of a supplier’s quality program.

Supplier audit results are released to JAPC member organizations upon validation from the supplier that the data contained in the audit findings is factually accurate and that the findings do not contain trade secrets, confidential commercial or financial data, or export controlled information. Audit results are withheld from JAPC member organizations with whom the supplier routinely or specifically competes for the same or similar work, whether such work is awarded by a governmental organization or in commercial trade (note: this access limitation does not apply to JAPC member organizations that have a current open contract with the audited supplier where such contract includes an access provision for the conduct of quality assurance surveillance activities).

Audit results may also be released as continuous improvement feedback to applicable quality management system and/or special process certification/accreditation bodies.

Supplier audit results are protected to prevent access by non-JAPC member organizations and JAPC member organizations are prohibited from disclosing JAPC supplier information in accordance with requirements contained within a formal NASA JAPC Memorandum of Understanding.

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Audit results are used by member organizations for the purpose of instituting quality assurance measures (e.g., receipt inspection) that are tailored to the supplier’s quality history.

(Supplier name) is requested to provide written concurrence within 30 days concerning their desire to participate in the JAPC program as explained above. (Supplier name) is further requested to identify, where applicable, competitive JAPC member organizations as described above.

Suppliers responding affirmatively to the notification/concurrence letter shall be consolidated onto an initial JAPC supplier list. Suppliers declining JAPC membership (or failing to respond) shall be notified by the lead JAPC organization (see paragraph 13.c below) of their intention to perform a quality system audit, and shall be provided a second invitation for the supplier to become a JAPC supplier. Suppliers responding affirmatively to the lead organization’s invitation shall be consolidated onto a final JAPC supplier list.

c. Identifying Lead Organization

A lead organization shall be identified for each JAPC supplier. Identification shall be on a volunteer basis and as agreed upon by the committee. Considerations for identification of the lead organization include the volume, cost, and nature of procurement activity, geographic proximity, and special JAPC member desires/considerations.

d. Scheduling Audits

(1) Lead organizations shall identify the quality system and special processes that apply to their designated supplier’s manufacturing operations by coordinating information with participating team members. Special processes are identified in Appendix C.

(2) Lead organizations shall propose audit months or dates for the upcoming calendar year. The final date selected will be as agreed upon by the lead organization and supporting member organizations. The consolidated JAPC audit schedule shall be made available in December of each year and shall include, as a minimum: supplier name, street address, city, state, CAGE code, audit type, program (i.e., applicable NASA contract number), standard(s)/requirements/processes being audited and anticipated timeframe.

(3) The periodicity of on-site audits shall be once every three years, at a minimum. More frequent audits or limited scope audits shall be

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conducted as deemed warranted by the JAPC lead organization based on poor quality indicators (e.g., product nonconformities identified during receipt inspection) or in order to validate the effectiveness of supplier corrective actions. More frequent audits or targeted/limited scope audits may also be chartered by the JAPC chairman and performed under the auspices of NASA’s Contract Assurance Services (NCAS) program.

For suppliers that become inactive, joint auditing shall be discontinued. Auditing shall resume upon resumption of JAPC member organization procurement activity.

(4) Updates to the annual audit listing shall be provided to the JAPC Audit Coordinator on a monthly basis. The Audit Coordinator will compile and post an up-to-date comprehensive audit listing.

e. Planning Audits

(1) The lead organization shall assign a lead auditor. Lead auditors shall meet the qualification requirements identified in Appendix D.

(2) The lead organization shall contact the supplier and arrange for a mutually acceptable audit date. The lead organization will notify the JAPC Audit Coordinator of the audit date, who will then post the audit date on the JAPC web site.

(3) The lead organization is responsible for audit team make-up. Audit teams are made up of persons internal to the lead organization and persons from other JAPC member organizations that desire to participate. Non-lead organizations desiring to participate on an audit shall notify the lead auditor within thirty days of the scheduled audit date. The lead organization may, at their discretion, restrict participation to prevent the audit team size from placing an undue burden on the supplier.

(4) The lead organization shall assure that audit team members possess required qualifications and competencies to provide full and effective coverage of all attributes to be audited. Auditor qualifications are identified in Appendix D.

(5) JAPC member organizations shall not audit suppliers with whom they routinely or specifically compete for the same or similar work, whether such work is awarded by a governmental organization or in commercial trade. The lead organization is responsible for assuring that the supplier responded to the request for information regarding their competitive relationship with JAPC member

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organizations and that prospective participating organizations were not identified by the supplier as a competitor.

(6) JAPC audits may be full quality system or special process audits, or may be limited-in-scope audits that focus on specific high risk requirements. High risk requirements are requirements that may result in unacceptable consequences if not complied with, and/or requirements which have an unsatisfactory history of compliance based on industry trends or supplier performance history. Appendix B provides a list of minimum quality system elements to be included on JAPC audits. Limited-in-scope QMS audits shall be conducted for suppliers that have been certified by AS9100 Certification/ Registration Bodies (CRB) accredited in accordance with AS9014 unless supplier quality data indicates that full-scope auditing is warranted.

(7) The lead auditor shall develop a draft audit plan/checklist that includes, as a minimum, the applicable requirements contained within the applicable/invoked quality system standard (e.g., AS9100, AS9003, ISO 9001), and/or the special process attributes for applicable special processes identified in Appendix C).

(8) The audit plan may also include, as requested by JAPC member organizations, special attributes related to other invoked quality standards (e.g., ISO 10012, AS9103, ISO 10007), program-specific requirements, or poor quality indicators.

(9) The duration of JAPC audits and the size of JAPC audit teams shall be commensurate with the number of audit attributes, the size of the company, the range and complexity of supplier products, and the scope of supplier work operations.

(10) Participating joint auditors shall review the audit plan and provide feedback to the lead organization at least two weeks prior to the scheduled audit date.

(11) Where applicable, the lead auditor shall contact and coordinate the upcoming audit with resident offices/personnel (e.g., DCMA, NASA, MDA, prime contractor) to obtain relevant information. Resident personnel shall not serve as audit team members, however, are encouraged to observe the audit proceedings at their discretion.

(12) The lead auditor shall coordinate administrative information with the supplier, for example:

(a) Schedule

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(b) Supplier data necessary to perform the audit

(c) Agenda

(d) Audit entrance brief and exit meeting location

(e) Supplier points of contact

f. Conducting Audits

(1) The audit team shall conduct the audit per the plan developed by the lead auditor in accordance with paragraphs 13.f (4), (5), and (6) above.

(2) During audit in-briefs, the goals and objectives of the JAPC program, including the benefits of participating as a JAPC supplier, shall be communicated to the supplier.

(3) The auditors’ code of conduct shall be as specified in Appendix C.

(4) Facility safety risks or violations observed during conduct of the audit shall be immediately brought to the attention of supplier management.

(5) The supplier shall be notified of potential findings during daily exit conferences. Findings impacting safety of personnel or acceptability of delivered hardware shall immediately be communicated to supplier management, customer management, and NASA program management, as applicable.

(6) During audit out-briefs, it shall be explained that:

(a) The JAPC does not provide an approval status of the supplier’s QMS or otherwise make decisions/ recommendations related to the disposition or shipment of supplier product.

(b) Based on the results of the audit, individual JAPC member organizations may at their discretion take further contracting or quality assurance actions that they consider necessary to assure delivery of conforming product.

(c) The JAPC may perform follow-up audits or other on-site surveillance activities to assure effective accomplishment of corrective actions.

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g. Documentation of Audit Findings

(1) The audit team shall use the audit forms from the lead auditor. JAPC organizations are encouraged to use AS9131 data fields and descriptions, as applicable.

(2) Nonconformance findings shall be categorized as major or minor based on criteria defined in Appendix A. Nonconformance findings shall provide objective/factual statements that cite specific contractual requirements and describe conditions observed that do not conform to the cited requirement.

(3) The lead auditor may submit audit findings categorized as observations or commendations per Appendix A.

(4) Whenever possible, auditors shall submit their findings the same day that the investigation of the finding is completed. Findings shall not be written subsequent to audit completion except in circumstances where additional research of requirements is required. Suppliers shall be notified of such circumstances and provided details concerning the potential additional findings.

(5) Audit team members shall validate with supplier personnel that the information provided in the written audit findings is factually accurate, and that the findings do not contain sensitive information (i.e., trade secrets, confidential commercial or financial data, or export controlled information)..

(6) The lead auditor, with input from the audit team, shall review and approve findings prior to incorporation into the final report.

(7) The supplier shall be provided all written findings at the final exit conference, including response due dates.

(8) Upon completion of the audit, the lead auditor shall request supplier management to sign a statement which provides concurrence that the findings do not contain trade secrets, confidential commercial or financial data, or export controlled information. Appendix E provides the text for this statement. Circumstances where the supplier does not concur with signing such a statement and which cannot be resolved by the JAPC lead organization shall be referred to the JAPC Chairman in order to reach a mutually satisfactory resolution. If resolution cannot be reached, the lead JAPC member organization is under no obligations per this MOU to release information pertaining to the supplier audit finding(s) in question.

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(9) The lead auditor is responsible for issuing the audit report and providing the report to the JAPC Audit Coordinator and SAS Coordinator within 15 calendar days of audit completion.

h. Supplier Responses and Review/Closure of Audit Findings

(1) For nonconformance findings, suppliers shall be requested to respond with the following information:

(a) Corrective actions taken to replace, repair, or disposition all nonconforming items.

(b) The root cause(s) of the noncompliance.

(c) The full scope/population of nonconforming items based on the root cause(s).

(d) Long term corrective actions taken/planned to address the cause(s) and prevent recurrence of the nonconformance.

(e) The timeline for completion of corrective actions.

(2) The supplier shall be requested to respond with initial corrective actions within 30 days and provide updates every 60 days thereafter, unless otherwise specified within the lead organization’s procurement contract.

(3) The lead auditor is responsible for reviewing and accepting audit responses (with input from audit team members, as necessary) and tracking audit findings until closure.

(4) JAPC members shall provide updates to the JAPC Audit Coordinator every 60 days until notification of audit closure.

i. Posting Audit Results and Tracking Audits

(1) Lead organizations shall submit audit reports to the JAPC Audit Coordinator and SAS Coordinator within 15 calendar days of audit completion.

(2) The JAPC Audit Coordinator is responsible for providing overall tracking of JAPC audits, including audit scheduling, conduct, resolution, and closure. Scheduling and tracking information shall be posted on the JAPC web site, https://secureworkgroups.grc.nasa.gov/japc .

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(3) The SAS Coordinator shall post JAPC audit reports on the SAS website and make the reports available to JAPC member organizations.

14. METRICS

a. The JAPC Manager and SAS Coordinator are jointly responsible for analyzing accumulated supplier quality data and for identifying/reporting deficiency trends and problem areas.

b. The JAPC Manager is responsible for monitoring, trending, and periodically reporting achievement of JAPC objectives.

c. The SAS Coordinator shall include on the SAS website links to other sources of supplier quality data such as DCMA QLI, NAVSEA PDREP, OASIS, Nadcap, GIDEP, ERAI and other federal agency databases.

15. FINANCIAL OBLIGATIONS

There will be no transfer of funds or other financial obligations in connection with this agreement. As available, each party will fund its own participation in carrying out the operations of the JAPC on a best effort, non interference basis.

16. TERM OF AGREEMENT

This agreement becomes effective upon March 7, 2008, and shall remain in effect for a period of five years after the effective date.

17. RIGHT TO TERMINATE

Membership may be voluntarily withdrawn at any time upon submittal of a written request to the JAPC Chairman, thereby terminating the terms of this MOU for the withdrawing JAPC member organization.

The JAPC Chairman may disestablish the JAPC at any time, thereby terminating the terms of this agreement for all parties.

18. DISPUTES

The JAPC Chairman and applicable JAPC member(s) will attempt to resolve all issues arising from the implementation of this agreement. If they are unable to come to agreement on any issue, then the dispute will be referred to the NASA Director for Safety and Assurance Requirements for joint resolution. If the parties are unable to resolve the dispute, NASA’s Deputy Chief, Office of Safety

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and Mission Assurance, will issue a written decision which shall be a final Agency decision for all purposes including judicial review.

19. MODIFICATIONS

Any modification to this agreement shall be executed, in writing, and signed by an authorized representative of each party. Any modification that creates an additional commitment of NASA resources must be signed by the original NASA signatory authority or successor, or a higher level NASA official possessing original or delegated authority to make such a commitment.

20. APPLICABLE LAW

U.S. Federal law governs this agreement for all purposes, including, but not limited to, determining the validity of the agreement, the meaning of its provisions, and the rights, obligations, and remedies of the parties.

21. ANTI-DEFICIENCY ACT

All activities under or pursuant to this agreement are subject to the availability of appropriated funds, and no provision shall be interpreted to require obligation of or provision of funds in violation of the Anti-Deficiency Act, 31 U.S.C. 1341.

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23. REVISION APPROVALS

Revision A:

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APPENDIX A

DEFINITIONS

Audit – Systematic, independent, and documented process for obtaining quality evidence and evaluating it objectively to determine the extent to which requirements are satisfied.

o Quality Management System – Management system to direct and control an organization with regard to quality (ISO 9000:2000(E)).

o Special Process – A production process used in the establishment or assurance of the product’s design configuration where the process has a significant performance effect on the hardware (e.g., altering of chemical/mechanical properties), assures conformance with essential design characteristics (e.g., non-destructive testing), and/or where the resulting product’s design conformance cannot be readily or economically assured by inspection.

o Critical Process – Any process that if performed incorrectly or in violation of prescribed requirements, could result in hardware failure that results in loss of human life or serious injury/illness to the flight crew, ground crew, or general public, or results in loss of mission, or loss of a significant mission resource (valued at greater than $1M).

o Joint Audit – A supplier audit conducted by one or more JAPC member organizations on behalf of multiple JAPC member organizations (note: the word “joint” relates to the term “on behalf of,” not to the potential participation of multiple JAPC member organizations during conduct of the audit).

Audit Finding – Results of the evaluation of the collected audit evidence against

audit criteria (ISO 9000:2000(E), 3.9.5).

o Nonconformity – The non-fulfillment of a requirement (ISO 9000:2000(E), 3.6.2).

Major Nonconformity – The absence of or total systemic breakdown of a quality management system element specified in the applicable standard or any nonconformances where the effect is judged to be detrimental to the integrity of the product, processes, or service (SAE AIR5359, Rev. B), 3.12).

Minor Nonconformity – A single system failure or lapse in conformance with a procedure relating to the applicable standard (SAE AIR5359, Rev. B), 3.13).

o Observation – An opportunity for improved quality system practices or preventive actions (ISO 19011-2004).

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o Commendation – A positive acknowledgement of quality system strength(s).

Competence – Demonstrated personal attributes and demonstrated ability to apply knowledge and skills (ISO 19011:2002, 3.14).

Corrective Action (C/A) – Action to eliminate the cause of a detected nonconformity or other undesirable situation. Note 1: There can be more than one cause per nonconformity. Note 2: Corrective action is taken to prevent recurrence whereas preventive action is taken to prevent occurrence. Note 3: There is a distinction between correction and corrective action (ISO 9000:2000(E)).

o Immediate Corrective Action – Immediate remedial actions taken concerning the disposition of nonconforming product.

JAPC Supplier – A supplier providing product directly to a JAPC Member Organization who has been nominated by a JAPC member organization and who has agreed to be audited under the auspices of the JAPC program. JAPC member organizations are excluded from this definition.

Objective Evidence – Data supporting the existence or verity of something. Note: Objective evidence may be obtained through observation, measurement, test, or other means (ISO 9000:2000(E)).

Preventive Action (P/A) – Action to eliminate the cause of potential nonconformity or other undesirable potential situation. Note 1: There can be more than one cause for a potential nonconformity. Note 2: Preventive action is taken to prevent occurrence whereas corrective action is taken to prevent recurrence (ISO 9000:2000(E)).

Prime Contractors – Organizations under NASA contract direction that provide completely integrated platforms (i.e., aircraft, spacecraft, etc.) or completely integrated major systems to platforms.

Quality Leading Indicator (QLI) – A tool used to assess and identify a contractor’s past quality performance and indicates risk.

Root Cause – A fundamental deficiency that results in a nonconformance and must be corrected to prevent recurrence of the same or similar nonconformance (ISBN 0-87389-374-3, The Quality Audit Handbook, 1997 ASQC).

Scope – The total population of nonconforming items as determined by the root cause(s) of the nonconformance.

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APPENDIX B

HIGH RISK QUALITY SYSTEM ELEMENTS

QUALITY MANAGEMENT SYSTEM

Control of outsourced processes 4.1Configuration Management 4.3 / 7.5.3

PRODUCT REALIZATION

Identification and Inspection of Key Characteristics 7.3.3.9/ 7.5.1/ 8.1Supplier Quality Management (Purchasing) 7.4Process control 7.5.1

- Documentation of processes- Control of key characteristics - In process verification points- Criteria for workmanship

Validation, Monitoring, and Measurement of Special Processes 7.5.2 / 8.2.3Identification of Monitoring/Measurement Status 7.5.3Traceability of Product to Records of Objective Quality Evidence 7.5.3Preservation of Product / Work Environment 7.5.5 / 6.4

- Electrostatic Discharge- Foreign Object Debris/Damage 7.5.1.i- Cleanliness

MEASUREMENT, ANALYSIS AND IMPROVEMENT

Internal Audit 8.2.2Monitoring, Measurement, and Control of Key Characteristics 8.2.4Control of Nonconforming Product 8.3Corrective Action 8.5.2

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APPENDIX C

SPECIAL PROCESSES

Bonding/Sealing Processes Mechanical Processes (Metals)Fuel Sealing Annealing**Pressure Sealing Brazing**Structural Bonding CastingWeather Sealing Forging

Handling, Packaging, & Transportation

Chemical ProcessesHeat Treating**Mechanical Joint Make-up (e.g.,Torque)

Chemical Conversion** Lifting & HoistingCleaning** RiggingClean Room Shot Peening**Etching** Soldering Milling** Thermal Processes Plating** Welding**Surface Treatment**Stripping** Mechanical Processes (Plastics)

Annealing Chemical Processing and Inspection Casting Composite Manufacturing FoamingSolar Panel Fab Foreign Object Debris (FOD) Control

Laminating Electrical/Electronic Processes MoldingConformal Coating Connector Potting/Molding Material Testing**Electrostatic Discharge (ESD) Chemical CompositionFlexible Circuit Fabrication Mechanical Properties Handling, Packaging, & TransportationLead Forming Nondestructive TestingPrinted Wiring Board Fabrication Acoustic Emission Soldering/Tinning Alternating Current Field Measurement Wire Stripping Inspection System

Eddy CurrentFinishing Processes Laminography Brushing Liquid Penetrant Curing Magnetic Particle Dipping N-Ray (Radiography? NADCAP?)Dry Film Lube Radiography Finishes and Coatings ** Support Testing Spraying Thermography**Nadcap Accreditation available Ultrasonic

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APPENDIX D

AUDITOR CODE OF CONDUCTAND QUALIFICATIONS

1. Confidence and reliance in the audit process depends on the competence of those conducting the audit. This competence is based on positive personal attributes reflecting NASA’s core value of integrity; knowledge and skills gained through education and work experience; and the ability to apply knowledge and skills to the auditing process.

2. Personal Attributes for Auditors

a. Ethical (fair, truthful, sincere, honest, and discreet)

b. Open-minded (willing to consider alternative points of view)

c. Diplomatic (tactful in dealing with people)

d. Observant (actively aware of surroundings and activities)

e. Perceptive (instinctively aware and able to understand situations)

f. Decisive (reaches timely conclusions based on logical reasoning)

g. Self reliant (functions independently while interacting with others)

3. Auditor Qualifications

a. JAPC member organizations are responsible for ensuring that auditors and lead auditors possess proper knowledge, skills, and experience, as applicable, in the following areas:

(1) Auditing concepts, practices, and code of conduct.

(2) Quality management terminology and principles, and their application.

(3) Quality management tools and their application (Statistical Process Control, Flowcharts, Process Maps, etc.).

(4) Subject matter expertise related to the processes, products, practices, and quality management system being audited and the technological context in which the audit is being conducted.

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Subject matter expertise may be attained by education, training, and/or experience.

b. Quality management system auditors and lead auditors shall be trained and formally qualified by their respective JAPC member organization in accordance with prescribed and documented qualification requirements. Qualification shall include demonstrated competencies related to the criteria identified in 3.a above. Successful completion of RABQSA recognized and/or ASQ provided training courses may be used to demonstrate knowledge of quality management system auditing concepts/practices, ISO 9001 auditor/lead auditor requirements, and/or AS9100 auditor/lead auditor requirements, as applicable.

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APPENDIX E

NASA Joint Audit Planning Committee

Non-Disclosure of Controlled and Sensitive Information

In accordance with NASA Joint Audit Planning Committee (JAPC) Memorandum of Understanding (MOU) confidentiality requirements, JAPC audit data shall not be disclosed to non-JAPC member organizations, and disclosure to JAPC member organizations shall not contain trade secrets, confidential commercial or financial data, or export controlled information.

(Supplier Name) is hereby requested to concur by signature below that audit report ________, with an audit completion date of _________, does not contain trade secrets, confidential commercial or financial data, or export controlled information.

Supplier Name: _________________________________________________________

Supplier Management Representative: ______________________ Date: ____________

Lead JAPC Member Organization: __________________________

Lead Auditor: ______________________________ Date: ____________________

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