SECTION IV. COMPUTATION OF REPAIR COST ESTIMATE

TB 43-0002-81

Forms. Results of technical inspections will be recorded on the following forms. The appropriate form

will reflect each applicable cost element and the estimated cost of repair. The expenditure limit will be included

to compare the estimated cost and to make a determination as to repair or disposition of the vehicle. Instructions

on preparation of DA Form 2404 and DA Form 2407 are found in DA PAM 738-750. Instructions on

preparation of DA Form 461-5 are found in Appendix A of TB 43-0002-81.

DA Form 461-5 (Vehicle Classification Inspection)

DA Form 2404 (Equipment Inspection and Maintenance Work Sheet)

DA Form 2407 (Maintenance Request)

SECTION IV. COMPUTATION OF REPAIR COST ESTIMATE

Repair Cost Estimates. Repair costs are based on all costs necessary to return materiel to a serviceable

condition at the authorized level of maintenance that undertakes the repairs. If repairs are determined to be

within the scope of support maintenance, serviceability standards applicable to the level concerned will be used

to determine work required. Operating expenses will not be included in the cost estimate if the item being

repaired is not excess to unit needs, was not damaged accidentally, or is repaired on a return-to-user basis.

Operating expenses include all scheduled and unscheduled service and repairs that are accomplished by the

using organization, including repair parts. The repair cost estimate is derived from the total cost of the

following elements:

a. Direct labor (military and civilian), excluding initial inspection costs, includes all labor that can be

specifically identified with the repair. Direct labor rates, which apply to the total man-hours

estimated, are obtained as indicated by procedures in paragraph 4-2a.

b. Direct materials include all repair parts, components, and assemblies directly applied during the

repair program, including PA-funded materiel. Cost of part will be the AMDF price, except where

local repair programs are already in effect. Credit is taken for the return of the repairable

component in the amount equal to the current standard inventory price, less the estimated cost to

repair the component. 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 the cost of operating the shop and administrative expense

chargeable to the activity or operation.

d. Contractual services. All costs for contracted services will be included 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.

(1) 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 will include all transportation and handling cost from point of use to designated CONUS

point of repair.

(2) When equipment cannot be repaired onsite, and costs are incurred to prepare the equipment for

shipment, such cost (including materials) will be included in the estimate of cost to repair

regardless of origin or destination.

Other charges. For 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.