(3) Freight and packaging. Freight will not be included as an element of cost when the equipment to be repaired
is located in CONUS. When the equipment to be repaired is located overseas and no local capability to repair exists, the
cost of freight to CONUS will be included as an element of cost. The cost of freight includes all cost involved in
preparing the item for shipment at point of use, and all transportation and handling cost from point of use to designated
all transportation and handling cost from point of use to designated CONUS point of repair. When equipment cannot be
repaired on site, and cost must be incurred to prepare the equipment for shipment regardless of destination, such cost
(including materials) will be included in the estimate of cost to repair.
b. Indirect Costs. Indirect cost to be included will be determined by applying the indirect expense rates to be
estimated direct labor man-hours. The cost to repair will include the following indirect expenses.
(1) Indirect maintenance expense rate. This will include manufacturing or production expenses (i.e., indirect
costs incurred within or identifiable to the maintenance shop or organization performing the repair work, although not
identifiable to particular jobs).
(2) General and administrative expense rate. This will include the costs incurred in the general management or
supervision of the installation as a whole which are allocated among maintenance and other activities.
c. Miscellaneous Costs. The cost of repair will include all contractual services acquired incidental to and identifiable
with the performance of all or a portion of the specific maintenance job. Any other charges required to accomplish the
repair and directly identifiable to the equipment will be included (although not specifically mentioned herein), except
those directly named in d below.
d. Exclusions. The following costs will not be included in the estimate of cost to repair.
(1) Replacement of basic issue list items.
(2) Items of operating expense, such as the replacement of tires, batteries, petroleum products, and tools,
except where replacement is the result of accidental damage.
(3) The labor cost of applying modification work orders.
(4) The cost to overhaul or replace accessory items used to adapt equipment for special uses; this would include
such items as winterization kits, flashing lights, two-way radios, tool kits, and similar items. Individual estimates to
overhaul such items will be made as appropriate and required.
Section V. DISPOSITION INSTRUCTIONS
9. Eligibility of Materiel for Evacuation to Depot Maintenance. All equipment covered by this bulletin is eligible for
evacuation to depot maintenance, if the below criteria are met.
a. Depot maintenance authorized in the Maintenance Allocation Chart or by the ACALA National Inventory Control