SECTION III. COMPUTATION OF REPAIR COST ESTIMATE

TB 43-0002-1

SECTION III. COMPUTATION OF REPAIR COST ESTIMATE

3-1. Estimated Cost of Repair for Activities Above the AVUM Level. Worksheet and procedures to determine the

total estimated cost of repair follows:

a. Estimated Repair Hours determine the estimated repair man-hours (military and/or civilian) for the tasks:

b. Military Average Hourly Rate obtain the military average hourly wage rate of the person(s) performing the repairs

and multiply the rate by the estimated number of military repair man-hours (3-1.a.).

c. Civilian Hour Rate obtain the civilian average hourly wage rate of the person(s) expected to perform the repairs

and multiply by a factor of 1.29, per AMC-R 750-51 (the factor compensates for holidays, sick and/or annual leave, and

Government contributed benefits) , for the direct hourly rate. Then multiply the number of civilian repair man-hours

(3-1.a.) by the direct hourly rate.

d. Materiel Costs all repair parts and material directly applied and identifiable to the particular equipment undergoing

repair.

e. Indirect Costs labor identifiable to the maintenance activity; however, not identifiable to any particular job.

f. Contractual Costs general and administrative expenses incurred in general management or supervision of the

installation.

g. Shipping/Transportation Costs all costs involved in preparing the item for shipment at point of use, and all

transportation and handling costs from point of use to designated point of repair.

h. Other Costs all other costs not inc luded in the above elements.

i. Total Repair Cost the sum of b, c, d, e, f, g, and h above.

j. AVIM MEL Percentage Factor, Standard Price At AVIM level, determine the authorized MEL by multiplying the

item price listed in the FED LOG/ARMY LOG by the appropriate FSC percentage factor stated in Appendix A. Depot MEL

factor is 100 percent of the Standard Price. The resulting calculation is the maximum dollar amount authorized for the

item's repair.