Procedures - TB-43-0002-900005

TB 43-0002-90

8. Procedures. 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 job to be performed. Direct labor involves only personnel in direct productive contact with the item or service

involved.

(a) To estimate-direct labor costs, determine/estimate the direct labor hours to be applied and apply the

appropriate computed direct labor hourly rate to these hours.

(b) The determination of the direct labor 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 hours will be periodically reviewed and updated, if

necessary.

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, and other leave, and government

contributed fringe benefits) in accordance with AR 37-110.

(d) 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) Major Army command ers 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, electronics and communications

equipment, missile systems, ships, munitions armament, weapons armament, rail equipment, general equipment, and

commodity groups of equipment; depot maintenance and direct/general support maintenance; and each major

geographical area where wage levels vary significantly.

(f) When considered necessary for determining the proper depot maintenance labor rate, assistance

may be requested as authorized by AR 700-4.

(2) Materials. The cost to repair will include all materials directly applied to and identifiable with the particular

equipment undergoing repair.