Procedures - TB-43-0002-240004

TB 43-0002-24

effect. Use an estimated cost if materiel is required from 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 costs for contracted services will be includ ed whether the services will be for complete

repairs or for a small portion of total repairs. Estimate 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 cost.

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 to the direct labor hourly rate. The direct

labor hours 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 required. Use the current military pay scale to obtain average hourly rate.

(2) Civilian - Obtain the average hourly 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 total labor

cost.

b. Determine total cost of the five remaining elements in paragraph 4-1b through 4-1f 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 than 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.

4-3. Computation Table. A table which may be helpful in computing total repair cost estimates and MEL follows. Use of

actual repair expense column may be completed to assist in future cost estimates. Use only those elements applicable

and available.