Section IV. COMPUTATION OF REPAIR COST ESTIMATES
7. Cost Factors.
a. Repair cost estimates will be based on the cost to return materiel to serviceable condition at the authorized mai -
tenance category undertaking the repair, in accordance with appropriate publications. Required repairs will not be broken
into separate job estimates for the purpose of circumventing prescribed repair expenditure limits.
b. If repairs are expected to be within the scope of direct or general support maintenance and the item is to be e-
paired at that level for return to user, serviceability standards and maximum wear limits applicable for the appropriate
maintenance category will be used in computing the repair cost estimate.
c. If required repairs are beyond general support maintenance capability and must be accomplished as depot maint-
nance, the repair cost estimate will be based upon the return of the item to specified serviceability standards.
d. Repair eligibility will be determined by comparing the repair cost estimate with the product of the prescribed e -
penditure limit percentage times the current replacement cost (table 1) for the unserviceable item. For an item to be eil-
gible for repair, the repair cost estimate must not exceed the prescribed percentage of cost of replacement (i.e., the
product obtained from above arithmetic function). Waiver from this repair eligibility requirement may be granted by the
Major Army Commander; Chief, National Guard Bureau; or CG, ACALA.
e. The repair (or overhaul) cost estimate will be based on all costs (except those specifically excluded herein) nece-
sary to convert the given item to the required condition specified in applicable DA Equipment Publications (table 1).
f. Depot maintenance activities, upon request, also will provide guidance and assistance to field personnel to faci-
tate repair cost estimates and technical inspections on materiel to be evacuated to the depot.
8. Procedures. The following direct and indirect costs will apply to determine repair cost estimates when deficiencies are
found during technical inspections.
a. Direct Costs.
(1) Direct labor. Direct labor is that labor (civilian or military) which can be specifically identified to the re-
pair/overhaul job to be performed. Direct labor involves only personnel in direct productive contact with the item or
(a) Direct labor costs. To estimate direct labor costs, determine/estimate the direct labor man-hours to be a -
plied and apply the appropriate computed direct labor hourly rate to these man-hours.