Procedures - TB-43-0002-280008

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Maintenance Expenditure Limits *TB 43-0002-28

b. Direct materials include all repair parts, components and assemblies directly applied during the

repair program. Cost of parts will be the AMDF price, except where local repair programs are already

in effect. Use an estimated cost if material is required from a local source or needs to be fabricated.

Estimate cost against the price of a like item.

c. Indirect or overhead costs include cost of operating the shop and administrative expense

chargeable to the activity or operation.

d. Contractual Services. All small costs for contracted services will be included whether the services

will be for complete repairs or for a small portion of total repairs. Estimated will be from contract

documents or expected cost.

e. Shipping and Transportation costs include all costs involved in preparation and movement to

repair location, and expected cost to prepare and ship back. Costs will be obtained from the Bill of

Lading or transportation office or will be estimated.

f. Other charges. All costs expected to be incurred to complete repair, which cannot be included in

cost elements above. Estimate repair from past records or expected costs.

4-2. Procedures. Procedures to determine the total estimated cost of repair are as follows:

a. Direct labor costs. Apply the total estimated man-hours of direct labor hourly rate. The direct

labor estimated will be based on the Maintenance Allocation Chart (MAC) or actual past experience.

The direct labor hourly rate and total cost of direct labor is found by:

(1). Military - Obtain the average hourly military wage rate of the mechanic performing the repairs,

and multiply by the direct man-hours of labor require. Use the current military pay scale to obtain

average hourly rate.

(2). Civilian - Obtain the average hourly civilian wage rate of the individuals expected to perform the

repairs, and multiply by a factor of 1.29 to obtain the direct labor hourly rate (the factor compensates

for holidays, allowable sick/annual leave, and government contributed benefits). Multiply the direct

labor hourly rate by the direct man-hours of labor to obtain the total labor cost.

b. Determine total cost of the five remaining elements in paragraph 4-1b. through 4-lf above (if

applicable) and add to total labor expense.

c. Obtain the MEL percentage factor from the appropriate appendix in this TB and determine if repair

is authorized.

d. If repair cost is equal to or less that MEL, the item may be repaired. If greater, the item will be

returned to customer for turn-in action or processing of a waiver to exceed the MEL.