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TB 43-0002-72
Section III. TECHNICAL INSPECTIONS
information  available  to  assist  higher  authority  in
5. Procedure. Technical inspections will be conducted by
determining  repair  or  overhaul  eligibility.
Final
qualified personnel who must be familiar with maintenance
determination, relative to the level of repair or complete
operations and standards to determine the work required
disposal of the item, will be made per provisions of
and  thereby  arrive  at  an  equitable  maintenance
paragraph 7d.  (Items listed in table 2 as "No Depot
classification.
All inspections will be performed in
Maintenance Equipment" will not be considered as
accordance with  instructions  contained  in  pertinent
candidates for potential depot level maintenance; general
equipment publications listed in table 1. If required repairs
support maintenance will consequently be the highest
are beyond general support maintenance category, the
maintenance level authorized to repair (or completely
item will be returned to a specified depot as economically
dispose) these items.)
repairable. The item will be further evaluated by the depot
6.  Forms.  DA Form 2404 (Equipment Inspection and
to insure repair or overhaul eligibility.  Field personnel
preparing technical inspection reports will list material
Maintenance Worksheet) will be used to record results of
known or suspected to require restoration to a serviceable
technical inspections. Instructions on preparation and use
condition at depot level, and will provide other pertinent
of
this
form
are
found
in
TM
38-750.
Section IV. COMPUTATION OF REPAIR COST ESTIMATES
a. Direct Costs.
7. Cost Factors.
(1) Direct labor. Direct labor is that labor (civilian or
a. Repair cost estimates will be based on the cost to
military) which can be specifically identified to the
return materiel to serviceable condition at the authorized
repair/overhaul job to be performed. Direct labor involves
maintenance  category  undertaking  the  repair,  in
only personnel in direct productive contact with the item or
accordance with appropriate publications.
Required
service involved.
repairs will not be broken into separate job estimates for
(a) Direct labor costs. To estimate direct labor costs,
the purpose of circumvent prescribed repair expenditure
determine/estimate the direct labor man-hours to be
limits.
applied and apply the appropriate computed direct labor
b. If repairs are expected to be within the scope of direct
hourly rate to these man-hours.
or general support maintenance and the item is to be
(b) Direct labor man-hours. The determination of the
repaired at that level for return to user, serviceability
direct labor man-hours to be applied will be based on man-
standards and maximum  wear limits applicable for the
hour requirements for maintenance tasks listed in
appropriate maintenance category will be  used  in
applicable equipment publications; commercial flat rate
computing the repair cost estimate.
manuals, when appropriate; similar work performed
c.  If required repairs are beyond general support
previously; or individual experience. The direct labor man-
maintenance capability and must be accomplished as
hours will be periodically reviewed and updated, if
depot maintenance, the repair cost estimate will be based
necessary.
upon the return of the item to specified service-ability
*(c) Civilian labor rates. The cost of civilian labor will
standards.
be based on a labor rate for the work center which will
d. Repair eligibility will be determined by comparing the
perform the work. Procedures described in AR 37-110 will
repair cost estimate with the product of the prescribed
be used to convert man-years to average productive
expenditure limit percentage (table 1) times the standard
working hours when civilian labor pay scales are stated in
price of a replacement for the unserviceable item (i.e., total
terms of annual salaries. Labor rates, whether determined
cost of the item). For an item to be eligible for repair, the
from annual salaries or hourly wage rates, will be
repair cost estimate must not exceed the prescribed
computed (to include provisions for the cost of annual,
percentage of cost of replacement (i.e., the product
sick, and other leave, and government contributed fringe
obtained from above arithmetic function). Waiver from this
benefits) in accordance with AR 37-110.
repair eligibility requirement may be granted by the Major
(d) Military labor rates. Labor rates used for military
Army Commander; Chief, National Guard Bureau; or
personnel will be the average military wage rate for the
ARRCOM).
work center performing the work, based on standard rates
e. The repair (or overhaul) cost estimate will be bases
published in AR 37-108.
on all costs (except those specifically excluded herein)
(e) Labor rates including indirect expenses. Major
necessary to convert the given item to the required
Army commanders and heads of agencies may establish
condition  specified  in  applicable  DA  Equipment
and use standard hourly rates for direct labor (including
Publications (table 1).
indirect or overhead) so long as such rates are consistent
f Depot maintenance activities, upon request, also will
with AR 37-55 and AR 37-110. When such standard rates
provide guidance and assistance to field personnel to
are established, separate rates will be established for each
facilitate repair cost estimates and technical inspections on
category of supportable items or weapons systems (e.g.,
material to be evacuated to the depot.
aircraft,  automotive  equipment,  combat  vehicles,
8. Procedures. The following direct and indirect costs will
construction equipment,
apply to determine repair cost estimates when deficiencies
are
found
during
technical
inspections.
4

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