Procedures - TB-43-0002-850004

FSC Group 24

Maintenance Expenditure Limits

TB 43-0002-85

which can be specifically identified with repair. Direct labor rates which apply to the total man hours estimated are

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

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

Cost of parts will be the AMDF price, except where local repair programs are already in effect. Use an estimated

cost if materiel is required from a 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 small 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 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 costs

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 hourly rate. The direct labor 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 military wage 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, any government contributed benefits). Multiply the direct labor hourly rate by the

direct man-hours of labor to obtain the 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 that 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.

July 1998