Procedure

TB 43-0002-73

e. The repair (overhaul) cost estimate will be based on all costs (except those specifically excluded herein) necessary

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 facilitate

repair cost estimates and technical inspections on materiel to be evacuated to the depot.

8. Procedure. 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

repair/overhaul 3ob to be performed. Direct labor involves only personnel in direct productive contact with the item or

service involved.

(a) Direct labor costs. To estimate direct labor costs, determine/estimate the direct labor man-hours to be applied

and apply the appropriate computed direct labor hourly rate to these man-hours.

(b) Direct labor man-hours. The determination of the direct labor man-hours to be applied will be based on working

hour requirements for maintenance tasks listed in applicable equipment publications; commercial flat rate manuals, when

appropriate; similar work performed previously; or individual experience. The direct labor man-hours will be periodically

reviewed and updated, if necessary.

(c) Civilian labor rates. The cost of civilian labor will be based on a labor rate for the work center which will perform the

work. Procedures described in AR 37-110 will be used to convert working years to average productive working hours

when civilian labor pay scales are stated in terms of annual salaries. Labor rates, whether determined from annual

salaries or hourly wage rates, will be computed (to include provisions for the cost of annual, sick, other leave, and

government contributed fringe benefits) in accordance with AR

37-110.

(d) Military labor rates. Labor rates used for military personnel will be the average military wage rate for the work

center performing the work, based on standard rates published in AR 37-108.

(e) Labor rates including indirect expenses. Major Army commanders and heads of agencies may establish and use

standard hourly rates for direct labor (including indirect or overhead) so long as such rates are consistent with AR 37-55

and AR 37-110. When such standard rates are established, separate rates will be established for each category of

supportable items or weapons systems (e.g., aircraft, automotive equipment, combat vehicles, construction equipment,