PD 1100 Rev E

PROGRAM Issue Date: 19-Apr-2015

161 Thorn Hill Road

DOCUMENT Revision Date: 13-Sep-2018
Superseding PD 1100 Rev D
Warrendale, PA 15086-7527

Nadcap PROGRAM REQUIREMENTS

1 SCOPE

1.1 This Program Document shall govern the operations of the Nadcap Program. This document establishes the
policies for how Nadcap shall meet the requirements defined in PD1000 Industry Managed Accreditation
Program Document. Nadcap Management Council (NMC) and all Nadcap Task Groups and committees shall
operate in accordance with these procedures and all referenced documents.

1.2 Nadcap is an industry consensus-based accreditation program administered by the Performance Review
Institute (PRI) for the benefit of the general public, industry, and government.

2 REFERENCES

2.1 Referenced Documents

PD 1000
OP 1101 Document Control
OP 1103 Definitions
OP 1107 Post Accreditation Actions
OP 1112 NMC Oversight Activities
OP 1114 Task Group Operation
OP 1115 Delegation of Audit Report Reviewer
OP 1116 Auditor Staffing
OP 1124 Allegation Handling and Resolution
i-frm-34 Condensed Conflict of Interest Form
m-frm-01 Nadcap Management Council & Task Group Appointment/Confirmation Form
p-frm-04 PRI/Nadcap Subscriber Agreement
s-frm-20 Auditee Agreement – Industry Managed Accreditation Program
AC7004 Quality Management System Requirements for Nadcap Accreditation
AC7006 Nadcap Audit Criteria Equivalent to ISO/IEC 17025:2005
AS/EN/JISQ 9100 Quality Management Systems - Requirements for Aviation, Space and Defense
Organizations
AS/EN 9110 Quality Management Systems - Requirements for Aviation Maintenance Organizations
ISO/IEC 17025 General Requirements for the Competence of Testing and Calibration Laboratories

2.2 Nadcap Definitions

See OP 1103 Definitions.

3 GENERAL NADCAP DESCRIPTION

3.1 Nadcap is a cooperative industry effort to improve quality, while reducing costs, for quality assurance
throughout the aerospace and defense industries. Nadcap is an industry-managed approach to conformity
PRI PD 1100 Rev E, 13-Sep-2018 -2-

assessment that brings together technical experts from both industry and government in the Nadcap
organization. Subscribers and Suppliers work together to define operational program requirements, establish
requirements for accreditation, and grant accreditation. This process results in a standardized approach to
quality assurance and a reduction in redundant auditing throughout the aerospace industry because industry
has joined forces to develop a program that:

a. Establishes audit criteria and requirements to meet industry consensus standards of all participants

b. Replaces routine process auditing with one audit process, approved through a consensus decision-making
process of industry stakeholders

c. Conducts in-depth, technical process audits

d. Improves quality throughout industry through consistent requirements

e. Reduces costs through improved standardization

f. Utilizes technically experienced auditors to assure process familiarity

3.1.1 It is not always possible to assess all parts, processes, operators etc., in the scope of a single audit. The
Nadcap audit encourages development of robust systems to allow any Subscriber’s parts to be processed
in accordance with requirements. Process control and incorporation of customer requirements are
assessed by conducting job audits and compliance testing selected from a cross-section of the Auditee’s
scope of activity (e.g. parts, specifications, processes, operators, equipment, etc.). Effective sampling over
time provides assurance that the Auditee has the necessary process controls in place to meet the
requirements of any Subscriber.

3.2 The Nadcap Program consists of four bodies:

a. Nadcap Governing Board (NGB) – Where long range strategic plans are made, Nadcap metrics are reviewed
and financial stability is overseen.

b. Nadcap Management Council (NMC) – Where policy and procedural decisions are made for the operation of
Nadcap, Task Group coordination and development occurs, and oversight of the accreditation process is
accomplished.

c. Task Groups (TG) – Where Audit Criteria are developed and the accreditation process is maintained.

d. Supplier Support Committee (SSC) – Where the Nadcap supplier community is represented, non-technical,
systemic issues relevant to the Nadcap Program are addressed, and provides a mechanism for the suppliers
to support the process and be supported.

3.3 All Nadcap bodies shall be committed to continuous improvement and shall continually seek to identify,
develop, and deploy improvements to the processes of Nadcap.

3.4 Program participants are categorized as the following:

3.4.1 Subscriber

3.4.1.1 Subscribers are those aerospace or defense contractor prime companies who have completed an
accepted Subscriber Agreement and are Design Approval holders or Design Authorities of Aviation,
Defense, and/or Space products for end use products or significant systems or subsystems for such
products. Companies qualifying as Subscribers supporting Commercial Aviation shall hold approvals such
as Technical Standard Order (TSO), Type Certificate (TC), Supplemental Type Certificate (STC), or
Design Organization Approval (DOA) from an applicable regulatory agency or have been delegated
design authority for major aircraft sections such as the fuselage, wing, or empennage from companies
holding such approvals. Companies qualifying as Subscribers supporting Defense or Space shall
PRI PD 1100 Rev E, 13-Sep-2018 -3-

demonstrate Design Authority of active product which is recognized by the industry as end-use products
or significant systems or subsystems (such as propulsion systems, brake systems, aero structure
systems, or the equivalent).

3.4.1.2 Subscribers shall have the design authority to write their own special process specifications and have
internal engineering organizations to provide technical directions and support.

3.4.1.3 Subscriber organizations which are structured to provide networked resources within their corporation for
design and special process technical directions and support may identify subsidiary organizations or joint
ventures owned by only Subscribers as part of their Subscriber Agreement with associated rights and
obligations provided such organizations either meet the Subscriber Prime criteria or provide special
process services solely to their corporation or joint venture corporations and not to other customers.

3.4.1.4 Government agencies that regulate or acquire aerospace related products and/or services may also be a
Subscriber.

3.4.1.5 Subscribers shall have access to audit results of all Suppliers participating in Nadcap. Issues pertaining
to Supplier accreditation decisions are limited to Subscribers only.

3.4.1.6 Voting rights may be granted.

3.4.2 Provisional Subscriber

3.4.2.1 Provisional Subscribers are those companies which have completed an accepted Subscriber agreement
but do not yet meet the requirements to be a Subscriber. Companies qualifying as Provisional Subscribers
are those aerospace or defense contractor prime companies who are in the process of obtaining
commercial approvals such as Technical Standard Order (TSO), Type Certificate (TC), Supplemental
Type Certificate (STC) or Design Organization Approval (DOA) from an applicable regulatory agency or
are in the process of being delegated design authority for major aircraft sections such as the fuselage,
wing, or empennage from companies holding such approvals. Companies qualifying as Provisional
Subscribers for Defense or Space shall demonstrate application for defense contract or sub-contract
product which will be recognized by the industry as end-use products or significant systems or subsystems
(such as propulsion systems, brake systems, aero structure systems, or the equivalent).

3.4.2.2 Provisional Subscribers shall have the design authority to write their own special process specifications
and have internal engineering organizations to provide technical directions and support.

3.4.2.3 Voting rights shall not be granted. Provisional Subscribers have all other rights and benefits of a Nadcap
Subscriber,

3.4.3 Supplier

3.4.3.1 Suppliers are companies which perform a process on their internally manufactured products (captive) or
which perform a process as a service to others (non-captive); they are companies that are or would be
accredited by Nadcap.

3.4.3.2 Suppliers are encouraged to participate by furnishing technical information and expertise, attending
meetings, answering questionnaires, and assisting in the development of audit criteria.

3.4.3.3 Voting rights may be granted.

3.4.4 Nadcap Guests

3.4.4.1 Nadcap guests are any other individuals that choose to participate in the Nadcap Program that do not
qualify as Subscribers or Suppliers.

3.4.4.2 Voting rights shall not be granted.

PRI PD 1100 Rev E, 13-Sep-2018 -4-

3.4.5 Pending Nadcap Subscriber

3.4.5.1 Pending Nadcap Subscribers are companies which intend to become Nadcap Subscribers.

3.4.5.2 This status is temporary and is granted by PRI. Pending Subscribers are expected to transition into
Subscribers within one (1) year.

3.4.5.3 Voting rights shall not be granted.

3.5 Language

3.5.1 The official language for Nadcap documentation, conducting Nadcap audits, and audit reviews, is English.

4 ROLES AND RESPONSIBILITIES OF THE NADCAP PROGRAM

4.1 Nadcap Governing Board (NGB)

4.1.1 The Nadcap Governing Board responsibilities are outlined in the PRI By-laws and the Board of Directors
Governance Manual and its function is currently performed by the PRI Board of Directors.

4.2 Nadcap Management Council (NMC)

4.2.1 The NMC manages the Nadcap Program and establishes policies and procedures for its operation, Task
Group coordination and development, and oversight of the accreditation process.

4.2.2 The Nadcap Management Council shall be responsible for:

a. Oversight – Oversee the operation of the Nadcap from a stakeholder perspective and verify that objectives are
achieved. Established criteria for oversight of the accreditation process are defined in OP 1112 NMC Oversight
Activities.

b. Self-Governance – Appoint committees to monitor Nadcap operations.

c. Policy and Procedures – Establish and implement policy and procedures for Nadcap including rules to
determine eligibility for participation as a Subscriber.

d. Task Group Development & Coordination – Creation of Task Groups and the standardization of task group
activities to reduce variability.

e. Appeals – Resolve challenges to decisions made as part of the accreditation process.

f. Supplier Involvement – Support activities designed to provide suppliers appropriate input into Program
operations.

g. Metrics – Define metrics for all Task Groups to monitor their own health in addition to define and maintain
metrics to monitor the overall health of Nadcap.

h. Accreditation Process – Establish the requirements for the accreditation process.

i. Merit Program – Establish and maintain criteria for extensions to accreditation length.

j. Accreditation Decision – The authority for the accreditation decision is delegated to the Task Groups by the
Nadcap Management Council.

k. Delegation – Establish criteria for delegation of the aforementioned activities, as applicable.

4.3 NMC Committees

PRI PD 1100 Rev E, 13-Sep-2018 -5-

4.3.1 The Nadcap Management Council may establish committees and sub-teams to address specific topics as
necessary. All NMC committees are composed of NMC Voting Members only.

4.3.2 Standing Committees of the NMC include:

a. Ethics and Appeals Committee: This committee shall facilitate and participate in the Appeals Process and
investigate ethical issues to identify any necessary actions. Only Subscriber Voting Members may participate.

b. Oversight Committee: This committee shall provide compliance oversight of the Nadcap Program in accordance
with PD1000 and the requirements contained herein. Only Subscriber Voting Members may participate.

c. Metrics Committee: This committee shall establish measurable goals that are consistent with the expectations
of the NMC and the Board of Directors, review progress against the goals, and help develop recovery plans
and strategic improvements to meet the goals. Additionally, they manage a framework for responding to
requests for data analysis. Subscriber and Supplier Voting Members may participate.

d. Standardization Committee: This committee shall review Nadcap Program operations, identify best practices,
and drive standardization across the program to improve efficiency. Subscriber and Supplier Voting Members
may participate.

e. Globalization and Strategy Committee: This committee shall develop the Nadcap vision and the strategy to
achieve the vision, create the linkage to other key global aerospace programs and champion key activities to
add value to stakeholders. Subscriber and Supplier Voting Members may participate.

f. Subscriber Accreditation Committee: This committee shall monitor and oversee the Subscriber Accreditation
Options A and B. Only Subscriber Voting Members may participate.

g. Continuous Improvement Committee: This committee shall establish and maintain effective continuous
improvement activities by utilizing key tools and techniques to identify and drive changes that enhance value,
drive process consistency and build further quality in the Nadcap program. Subscriber and Supplier Voting
Members may participate.

4.4 Task Groups (TG)

4.4.1 The Task Groups shall have specific responsibilities including:

a. Accreditation Process – Deploy the accreditation process including the decision to certify the supplier.

b. Appeals – Resolve challenges to decisions made as part of the accreditation process.

c. Auditor Selection – Interview and approve auditor candidates.

d. Auditor Training – Make recommendations and support training activities.

e. Audit Criteria Development – Prepare and maintain Audit Criteria.

f. Metrics – Take appropriate action based on established program metrics. Task Groups may develop additional
metrics to manage their process.

g. Accreditation Decision – Task Groups may delegate authority for the accreditation decision to the Audit Report
Reviewer. Criteria for delegation to Audit Report Reviewers and oversight of accreditation decisions are defined
in OP 1115 Delegation of Audit Report Reviewer.

4.5 Subscriber Accreditation Review Team (Review Team)

4.5.1 A Review Team comprised of Subscriber Companies shall be formed for each Subscriber Auditee seeking
accreditation under Subscriber Option A or B and shall be granted access to the Auditee’s audit data.
PRI PD 1100 Rev E, 13-Sep-2018 -6-

4.5.2 The Review Team shall have specific responsibilities including:

a. Accreditation decision

b. Appeals – resolve challenges to Review Team decisions.

c. Supplier Advisories – approve issuance of Type P and Type C advisories.

d. Selection and approval of the Option B Company Site Matrix

4.6 The Supplier Support Committee (SSC)

4.6.1 The SSC has specific responsibility for the following:

a. Representation – Represent the supplier community on non-technical, systemic Program issues which are
common to the supplier base.

b. Support – Provide a forum for suppliers to support the current process and be supported in a proactive and
continuous basis.

c. Communication – Facilitate communication between suppliers and other Nadcap bodies. Provide an opportunity
for suppliers to be apprised of recent developments in the program and other matters of interest to the supplier
community.

d. The SSC Leadership Team shall have responsibility for SSC policies & procedures.

4.7 PRI Staff

4.7.1 PRI Staff shall administer/facilitate the Nadcap Program. PRI Staff shall be responsible for performing all
administrative functions including:

a. Nadcap Program Coordination – Facilitate the normal and regular operations associated with the Nadcap
Governing Board, Task Groups, Nadcap Management Council, and the SSC.

b. Audit Process – Administration of the accreditation process (i.e. scheduling, conducting the audit, reviewing the
audit and issuing the certificate).

c. Accreditation Decision – The authority for the accreditation decision, if delegated by the Task Group. Criteria
for delegation to Audit Report Reviewers and oversight of accreditation decisions are defined in OP 1115
Delegation of Audit Report Reviewer.

d. Auditor Maintenance – Contract, schedule, and train auditors under the auspices of the Task Groups.

e. Voting Membership and Program Leadership – Facilitate the appointment and Succession Planning of Program
leadership and the selection and eligibility of Program Voting Members.

f. Information Management – Manage and coordinate all official information transfer, electronic and paper,
associated with the Program.

g. Internal Quality – Provide assurance through internal audits, training, continual improvement, and any other
methods that the staff processes are being conducted to the requirements contained herein.

5 VOTING MEMBERSHIP AND OFFICERS

5.1 Each Subscriber may have only one (1) Subscriber Voting Member for each clearly defined facility and
product line per Nadcap body.
PRI PD 1100 Rev E, 13-Sep-2018 -7-

5.2 Each Supplier, including all its subsidiaries and facilities, may have only one (1) Supplier Voting Member for
each clearly defined facility and product line per Nadcap body.

5.3 Efforts should be made to rotate the Chairperson role of the Nadcap bodies amongst the major global regions.

5.4 Status of Officers and Voting Members for the Nadcap bodies shall be maintained by PRI Staff.

5.5 Duties of Nadcap Members

5.5.1 Subscriber members are expected to attend all Nadcap meetings. If the member is unable to attend, an
alternate may be designated.

5.5.2 Other Nadcap members should make arrangements to attend all meetings where policies, procedures,
Audit Criteria, etc. will be discussed.

5.5.3 Subscriber Members are required to comply with the Nadcap Personal Code of Ethics and Conflict of
Interest Policy as defined below. The Subscriber Application and Agreement contains and outlines the
requirements; therefore, any representative of said company shall be covered by such agreement.
Representatives of those companies evaluating Nadcap will need to sign an i-frm-34 Condensed Conflict
of Interest Form.

5.5.4 Other Responsibilities:

• Reply to surveys, questionnaires, ballots that are circulated to members.

• Carry through sponsorship and coordination of individual projects as assigned.
• Ensure that the highest quality standards are maintained for the benefit of industry, government and
the general public.
• Ensure that all government and individual Subscriber requirements are met.
• Be ethical and consistent.
• Expeditiously review audit report packages distributed for review in eAuditNet.

5.6 Duties of Nadcap Chairs:

• Prepare or review agenda for meeting; submit agenda to PRI for distribution.
• Contact members to assure adequate representation.
• Chair the meeting per Parliamentary Rules Procedures.
• Designate a member to take and prepare minutes.
• Review all agenda items.
• Ensure that sufficient approval votes are documented to proceed with action or documentation.
• Call for a hand-vote to resolve all issues, comments, or disapprovals.
• Call for a "Voting Member only" or a "Subscriber Member only" vote when necessary to resolve a
sensitive issue.
• Establish the future action required of each agenda item by vote.
• Establish any Ad Hoc committees necessary to resolve significant issues.
• Ensure the maintenance of documentation of all members, their current addresses and titles, and
attendance.
• Ensure that accurate minutes are forwarded to PRI in a timely manner for circulation to the entire
committee.
• For Task Groups or committees reporting to the NMC, provide a summary of action taken at the NMC
meeting.

5.7 Nadcap Management Council (NMC) Officers

PRI PD 1100 Rev E, 13-Sep-2018 -8-

5.7.1 The NMC Chairperson and Vice Chairperson shall be recommended by the NMC Voting Members to PRI
Staff. Recommended candidates shall be reflected in the NMC minutes. The Chairperson and Vice
Chairperson shall be confirmed annually by the Nadcap Governing Board and reflected in the NMC minutes.

5.7.2 A PRI Staff member shall serve as NMC Secretary but shall have no vote. The NMC Secretary is
responsible for the NMC meetings and minutes.

5.7.3 The Chairperson and Vice Chairperson have a term that shall not exceed three (3) years.

5.8 Nadcap Management Council (NMC) Voting Membership

5.8.1 Subscribers to the Nadcap Program are encouraged to identify the individuals who will represent them as
Subscriber Voting Members on the NMC. An Alternate Voting Member may be identified for a Subscriber
Voting Member.

5.8.2 All NMC Voting Members (Subscriber and Supplier) are confirmed by the NMC Chairperson. Confirmations
and resignations from the NMC shall be noted in the meeting minutes.

5.8.2.1 Following confirmation, the Voting Member shall have submitted a completed m-frm-01 Nadcap
Management Council & Task Group Appointment/Confirmation Form to PRI.

5.8.2.2 PRI Staff shall process the m-frm-01 Nadcap Management Council & Task Group Appointment/
Confirmation Form.

5.8.3 The Chair of the Supplier Support Committee (SSC) shall have voting membership on NMC except on
matters pertaining to accreditation.

5.8.4 Each Nadcap Task Group may have one (1) Supplier Voting Member with voting privileges at NMC except
on matters pertaining to accreditation.

5.8.4.1 This Voting Member shall be approved by the Task Group Voting Members during a Task Group meeting.

5.8.4.2 These Voting Members shall represent their Task Group.

5.8.5 When a Subscriber Voting Member changes companies, upon request, the NMC Chair will be required to
reconfirm the individual for voting status to be maintained.

5.8.6 When a Supplier Voting Member changes companies, upon request, the NMC Chair will be required to
reconfirm the individual, after reconfirmation by the Task Group they represent, for voting status to be
maintained.

5.9 Task Group Officers

5.9.1 Task Group Chairpersons shall be selected by Task Group vote and confirmed by the NMC Chair. These
confirmations shall be reflected in the NMC meeting minutes.

5.9.2 Vice Chairpersons and Secretaries (as applicable) shall be confirmed by the Task Group Chair. These
confirmations shall be reflected in the Task Group meeting minutes.

5.10 Task Group Voting Membership

5.10.1 Subscribers to the Nadcap Program are encouraged to identify individuals who will represent them as
Subscribing Voting Members on Task Groups.

5.10.1.1 Such individuals may only be provided for those Task Groups which have been identified on their p-frm-
04 Subscriber Agreement.
PRI PD 1100 Rev E, 13-Sep-2018 -9-

5.10.2 Suppliers are encouraged to identify individuals who will represent them as Supplier Voting Members on
Task Groups.

5.10.2.1 Such members shall not be granted voting rights on matters related to accreditation decisions.

5.10.3 An Alternate Voting Member(s) may be identified for a Supplier Voting Member and/or Subscriber Voting
Member. Multiple Alternate Voting Members may be identified for a single Supplier or Subscriber.

5.10.4 Subscriber and Supplier Voting Members of Nadcap Task Groups are confirmed by the Task Group Chair.
These confirmations shall be reflected in the Task Group meeting minutes.

5.10.4.1 Prior to confirmation, candidates must attend two (2) regular Nadcap Task Group meetings.

5.10.4.2 Members shall be allowed to vote once they are confirmed by the Task Group Chair, which may take
place during the second Nadcap Task Group meeting attended.

5.10.4.3 Following confirmation, the Voting Member shall have submitted a completed m-frm-01 Nadcap
Management Council & Task Group Appointment/Confirmation Form to PRI.

5.10.4.4 PRI Staff shall process the m-frm-01 Nadcap Management Council & Task Group Appointment/
Confirmation Form.

5.10.5 When a voting member (Subscriber or Supplier) changes companies, upon request, the applicable Task
Group Chair will be required to reconfirm the individual for voting status to be maintained.

5.10.5.1 Any newly requested voting member from the company that the voting member departed will need to
meet the initial voting member requirements to become a voting member.

5.10.6 To maintain Task Group Voting Member (Supplier or Subscriber) privileges, the following criteria shall be
met unless the Task Group Chair determines that other circumstances warrant retention:

a. Voting Member, or approved alternate representation (Alternate Voting Member or proxy) shall not be absent
from three (3) consecutive regular Task Group meetings.

b. Voting Member, or approved alternate representation, shall not miss a vote on two (2) consecutive approval
ballots.

1. A waive shall count as a vote (OP 1101 Document Control).

2. When determining ballot participation, ballots shall be ordered by start dates. Concurrent ballots (ballots
with the same start dates) may be counted as one (1) ballot for the determination of voting membership
status.

5.10.7 Verification of maintenance of Voting Membership status shall be reviewed and updated at each regular
Task Group meeting.

5.11 Subscriber Accreditation Review Team Voting Membership

5.11.1 All Subscriber Voting Members of the applicable Task Group that represent a Subscriber on the applicable
Review Team shall be Voting Members for the review and oversight of Subscriber Option A and Option B
process audits.

5.11.2 All Subscriber Voting Members of the NMC that represent a Subscriber on the applicable Review Team
shall be Voting Members for the review and oversight of Subscriber Option B HQ audits.

5.12 Supplier Support Committee

PRI PD 1100 Rev E, 13-Sep-2018 - 10 -

5.12.1 The Supplier Support Committee Chair shall be selected in accordance with OP 1123 Supplier Support
Committee and confirmed by the NMC Chair. This confirmation shall be reflected in the meeting minutes of
the NMC.

6 NADCAP DOCUMENTATION

6.1 Operating Procedures and Forms

6.1.1 Nadcap program requirements are defined and controlled in the following document types:

6.1.1.1 Nadcap Operating Procedures (OPs) – Documents detailing the specific procedures by which Nadcap
operates. These documents are approved by the Nadcap Management Council.

6.1.1.2 Nadcap Operating Procedure Appendices – Documents describing the scope and general operating
procedures for each specific PRI/Nadcap commodity program. These documents are approved by the
Task Groups.

6.1.1.2.1 Appendices to OP 1114 Task Group Operation shall be developed by each Task Group to provide
detailed operational guidance and define the methods for compliance with policies and procedures of
Nadcap.

6.1.1.2.2 These appendices shall be published within one (1) year of the Task Group publishing its first Audit
Criteria document.

6.1.1.3 Forms – Controlled documents used to arrange, gather, organize, and/or communicate information which
are referenced in an approved procedure. These documents are approved by PRI.

6.2 Audit Criteria (AC)

6.2.1 The development of Audit Criteria shall be conducted in open meetings in accordance with Nadcap
Operating Procedures, with all interested parties being given an opportunity to participate.

6.2.2 Nadcap is not an engineering standards organization. The Nadcap audit criteria shall not create additional
requirements or mandate specific method of compliance. Audit Criteria shall be developed in a cost-
effective approach in accordance with the following:

a. The establishment of Audit Criteria that is based upon industry standards, where not ambiguous, and includes
requirements common among Subscribers where the specifics of meeting that requirement may vary.

b. The program shall include provisions for auditing of Subscriber unique/specific requirements, which can be
included in the Audit Criteria when approved through the balloting process.

c. Quality system questions shall be utilized to test for compliance and not for existence of quality system
elements, except for Audit Criteria which are designed to assess quality system existence, adequacy and
compliance (e.g. AC7004, AC7006, etc.).

d. Job Audits shall be used to demonstrate compliance to audit criteria, customer requirements, and internal
Auditee procedures.

e. The Nadcap accreditation program shall promote continual improvement philosophies through non-prescriptive
means for compliance and address recurring industry issues and quality improvements through the relevant
standards making bodies.

6.2.3 Requirements are generally organized in four levels of documentation:

a. Level One – Core audit program Audit Criteria

PRI PD 1100 Rev E, 13-Sep-2018 - 11 -

b. Level Two – Requirements that supplement core audit programs, provide specific technical requirements, and
are published as “slash sheets”, (i.e., AC71XX/1).

c. Level Three – Subscriber supplemental requirements, when required by the applicable Task Group, are
published as “supplemental requirements”, (i.e. AC71XX/1S).

PRI shall maintain a list of U-Numbers, (UXX), for consistent identification of Subscriber supplemental
requirements.

d. Level Four – Audit guides and aids that provide interpretation and guidance (e.g. Audit Handbook) and may be
created and made available to Auditors and/or Auditees as needed.

6.3 Legal

6.3.1 All Subscribers shall execute a p-frm-04 PRI/Nadcap Subscriber Agreement.

6.3.2 All Auditees seeking accreditation shall execute an s-frm-20 Auditee Agreement – Industry Managed
Accreditation Program.

6.4 Nadcap controlled documents shall be issued and revised in a controlled manner, maintaining revision
control, identification of changes, and a balloting process to assure all technical changes are adequately
reviewed and approved by the appropriate Nadcap voting members, as applicable, and all comments are
addressed prior to issuance. Nadcap controlled documents shall be balloted and approved in accordance
with OP 1101 Document Control.

7 MEETINGS

7.1 Frequency

7.1.1 Nadcap Management Council and each Task Group shall meet, at a minimum, annually or as approved by
the NMC.

7.1.2 Meeting announcements shall be made available to stakeholders in sufficient time to allow arrangement of
attendance.

7.2 Audience

7.2.1 Meetings, or portions thereof, shall be designated either as Open, Closed, or Voting Member Only.

7.2.2 Open Meetings:

7.2.2.1 Open meetings may be attended by all Nadcap participants or any interested party.

7.2.2.2 All meetings discussing Nadcap policies, procedures, operations, or Nadcap Audit Criteria shall be Open.

7.2.2.3 Meetings where individual auditor staffing decisions are discussed or interviews are conducted shall be
Open unless otherwise restricted by the Subscriber Voting Members of the Task Group.

7.2.3 Closed Meetings:

7.2.3.1 Meetings for audit report review, accreditation issues, and other business requiring confidentiality shall
be limited to Subscriber representatives, pending Subscriber representatives, Provisional Subscriber
representatives, and PRI Staff. PRI/Nadcap auditors or other parties may attend Closed meetings at the
discretion of the Chair or PRI Staff.

7.2.3.2 Supplier representation during their own audit report review shall be at the discretion of the Task Group
Chair.
PRI PD 1100 Rev E, 13-Sep-2018 - 12 -

7.2.4 Voting Member Only Meetings:

7.2.4.1 The Nadcap Management Council and its committees and sub-teams may have Voting Member Only
meetings which may only be attended by Voting Members, Alternate Voting Members, and
representatives of Provisional and Pending Subscribers. Other persons may be invited at the discretion
of the Chair.

7.2.4.2 These meetings are used to conduct business which is not required to be Closed.

7.3 Structure and Content

7.3.1 Quorum Requirements for Meetings:

a. NMC: A minimum of five (5) Subscriber Voting Members representing five (5) different Subscribers.

b. Task Groups: A minimum of three (3) Subscriber Voting Members representing three (3) different Subscribers,
or at the Task Group's discretion, this requirement, may be increased (See specific OP 1114 Appendices).

7.3.2 Nadcap meetings shall include a review of the Nadcap Personal Code of Ethics and Conflict of Interest at
each meeting to reinforce stakeholder awareness and compliance.

7.4 Committee or Ad Hoc Meetings:

Committee or Ad Hoc meetings may be called at the discretion of the Chair. These meetings will be called to address
specific issues as deemed necessary by the Chair. The nature of these meetings will determine whether they are
Open or Closed.

7.5 Voting

Votes at meetings will generally be by a voice vote or a raise of hands. Ordinarily, the votes of all those present at
meetings will be counted when voice voting. However, if in the judgment of the Chair the objectives of Nadcap
would be better served, the vote may be restricted to only Voting Members or to only Subscribers. If the Chair
deems it necessary or beneficial when discussing sensitive issues, a roll call of Voting Members or Subscriber
Members may be taken. Votes taken at meetings for normal business require no less than a simple majority to be
approved.

7.6 Proxy

7.6.1 Notification of proxy shall be submitted to PRI Staff in writing.

7.6.2 Proxy may be given either as full proxy or limited proxy.

7.6.2.1 When limited proxy is given, the limitations shall be noted.

7.6.3 Proxy shall be recorded in the meeting minutes.

7.6.4 NMC

7.6.4.1 Subscriber Voting Members may only give proxy to another person from the same Subscriber or to
another NMC Subscriber Voting /Alternate Voting Member.

7.6.4.2 Supplier Voting Members from Task Groups may only give proxy to another Supplier Voting /Alternate
Voting Member from the Task Group that they represent.

7.6.4.3 The SSC Chair Voting member may only give proxy to another member of the SSC Leadership Team
(LT).
PRI PD 1100 Rev E, 13-Sep-2018 - 13 -

7.6.5 Task Groups

7.6.5.1 Subscriber Voting Members may only give proxy to another Subscriber Voting/Alternate Voting Member
of the same Task Group.

7.6.5.2 Supplier Voting Members may only give proxy to a Voting/Alternate Voting Member (Subscriber or
Supplier) of the same Task Group.

7.7 Records

7.7.1 Minutes to support the NMC, NMC Committees, Task Groups, and Supplier Support Committee shall be
maintained and posted online, for Nadcap stakeholders, within eight (8) weeks of the last day of the
meeting.

8 PROGRAM DATA AND DOCUMENTATION ACCESS

8.1 Access to Program data and documentation shall be controlled by eAuditNet.

8.2 Subscriber Accreditation Option A and Option B Audit Data Access

8.2.1 Review Team Voting Members shall have access to the Subscriber Auditee audit data.

8.2.1.1 The Subscriber Auditee may identify customer relationships with companies in eAuditNet for the purpose
of granting audit data access.

8.2.2 The Subscriber Auditee may authorize the release or access to their audit data to other parties, when
requested, such as:

a. Internal resources for approved Subscriber companies that need to see the data, such as program offices and
supply chain.

b. Other Subscribers based on existing contractual requirements.

c. Regulatory or defense organization personnel.

9 PERSONAL CODE OF ETHICS AND ANTITRUST AND COMPLIANCE

9.1 The strict adherence to all applicable laws and regulations, including but not limited to those related to export
control and antitrust, is expected of all industry managed program participants as defined in PD 1000.

9.2 Antitrust

9.2.1 Associations by nature involve communications or activities among members who are business
competitors. Extreme care must be exercised to avoid policies, programs, dialogues, or pursuits, which
could be seen as having an intention or result of restraint of trade. Conscientious antitrust compliance and
fairness demand that association meetings be conducted properly. Only legitimate subjects for association
discussion should be undertaken. Chairpersons have been instructed that parliamentary rules and
procedures should be followed at all meetings.

9.2.2 The following activities, in association with Nadcap, are strictly prohibited:

• Fixing or setting prices for selling products or services;

• Allocating geographic markets or customers between or among competitors;
• Bid rigging, bid rotation or otherwise distorting the bid process;
• Boycotting customers, suppliers or vendors;
• Agreeing upon levels of production or output;
• Conspiring to exclude competitors or customers from the market; and
PRI PD 1100 Rev E, 13-Sep-2018 - 14 -

• Discussing specific R&D, sales or marketing plans, or any company’s confidential product,
development or production strategies

9.3 Personal Code of Ethics and Conflict of Interest

9.3.1 All individuals (Subscribers, Suppliers, Staff, Auditors, etc.) involved with the Nadcap activity shall exhibit
acceptable professional standards of conduct and uphold and advance the integrity of Nadcap.

9.3.2 Each individual is expected to exercise impartial professional judgment to assure confidence in the integrity
of Nadcap by avoiding conflicts of interest in all Nadcap related activities.

9.3.3 When a competing interest has the potential to preclude or impair exercising one’s independent
professional judgment or unreasonably jeopardize the integrity of the Nadcap activity, the individual should
disassociate themselves from that particular activity.

9.3.4 Any person associated with the Nadcap activity who believes that continued participation by any other
person may jeopardize the integrity of Nadcap should bring the matter to the attention of the Nadcap
Management Council.

9.3.5 All Nadcap Staff, its Auditors, Nadcap Management Council and Task Group Members shall maintain
proprietary or confidential information with which they become familiar as a result of their exposure to the
supplier and/or reports during the accreditation process appropriately. Information of this type shall not be
shared with individuals or organizations having no right to this information.

9.3.6 All individuals associated with the Nadcap audit and review process shall avoid using undue influence or
personal conversation to influence the audit results or the review process.

9.4 Should any Nadcap Stakeholder identify a violation of Antitrust or the Nadcap Code of Ethics or Conflict of
Interest policies, that matter should be reported to the Nadcap Ethics Committee at NadcapEthics@p-r-i.org,
or alternatively to the NMC Chair.

9.5 Violations shall be handled in accordance with OP 1124 Allegation Handling and Resolution.

9.6 Actions based on completed investigations may consider, but are not limited to, the following actions:

a. No further action required

b. Warning/Suspension from Nadcap leadership or membership

c. Referral of matter to the Nadcap Member or Meeting Attendee employer for their further action

9.7 In the area of audits, information regarding audit results is exchanged and accepted routinely. These audits
are performed by US and non-US persons and data from these audits are discussed and accepted by
international customers. Caution must be taken in obtaining and handling audit information, including
drawings and other information that are evaluated by the Auditor, Audit Report Reviewers, or PRI Staff in
relation to applicable U.S. Export Control systems. An example of an U.S. Export Control system which this
procedure applies to is International Traffic in Arms Regulations/Export Administration Regulations
(ITAR/EAR).

10 AUDIT AND ACCREDITATION PROCESS

10.1 Accreditation Options

a. Standard Option – Accreditation Process for Suppliers or Subscribers. Audits are conducted by PRI/Nadcap
Auditors.
PRI PD 1100 Rev E, 13-Sep-2018 - 15 -

b. Subscriber Option A – Accreditation Process open to Subscribers only. Audits are conducted by PRI/Nadcap
Auditors. Participating companies in this Option are identified as Subscriber Auditees.

c. Subscriber Option B – Accreditation Process open to Subscribers only. Audits are conducted by the Subscriber
Auditors qualified in accordance with OP 1116 Auditor Staffing and/or PRI/Nadcap Auditors. Participating
companies in this Option are identified as Subscriber Auditees.

10.2 The audit and accreditation processes are defined in Operating Procedures.

10.2.1 Job audits shall be selected based upon the Auditee’s scope of activity (customers, processes, parts, etc.)
The Auditee, Auditor, and the Auditee’s customers are expected to work together to ensure all processes,
specifications, etc., in the scope of the audit are included in job audits over time.

10.2.2 A job tracker shall be maintained with each audit that requires job audits as a record of the processes,
testing, customers, subscribers, part numbers, specifications, operators, and equipment included in each
job audit in the current audit and previous audits.

10.3 Notification of Changes

10.3.1 An Auditee who has received accreditation shall notify Nadcap without delay of changes that will affect the
Auditee’s accreditation status, in accordance with OP 1107 Post Accreditation Actions.

10.4 Quality System Requirements

10.4.1 At a minimum, Nadcap requires AC7004 accreditation issued by the AQS Task Group or other Quality
Systems as described below.

10.4.2 Nadcap recognizes valid AS/EN/JISQ 9100 and AS/EN 9110 quality system approvals, and other
equivalent translations as recognized by IAQG, performed and certified by certification bodies that are
approved and listed in the IAQG OASIS database (www.iaqg.org/oasis).

10.4.2.1 The scope of AS/EN/JISQ 9100 and AS/EN 9110 accreditations should not contain the exception to
8.5.1.2 Validation of Control of Special Processes or 7.5.2 Validation of Processes for Production and
Service Provision, as applicable.

10.4.3 Nadcap recognizes ISO/IEC 17025 and AC7006 for testing laboratories, including nondestructive testing
laboratories and etch audits performed in support of nondestructive testing laboratories.

10.4.3.1 The ISO/IEC 17025 scope of accreditation must include testing and be from an approved ILAC
accreditation body.

10.4.3.2 AC7006 accreditation must be through the Nadcap Materials Testing Laboratories Task Group.

10.4.4 For Subscriber Option B Accreditation, a common AS/EN/JISQ 9100 and/or AS/EN 9110 certified quality
system across all sites within the scope is required.

10.4.5 Task Groups may define quality system requirements which are more stringent than AC7004 by
documenting the requirements in both the Nadcap Audit Criteria and in the Task Group specific OP 1114
Appendix.

11 TRADEMARK AND MARK OF CONFORMITY USAGE

11.1 Actions that shall be taken in response to a reported misuse of the Nadcap mark are defined in OP 1107 Post
Accreditation Actions.
PRI PD 1100 Rev E, 13-Sep-2018 - 16 -

12 ALLEGATION HANDLING AND RESOLUTION

12.1 Allegations shall be handled in accordance with OP 1124 Allegation Handling and Resolution.