Section IV. COMPUTATION OF REPAIR COST ESTIMATES

If the estimated repair or overhaul costs

Note. When vehicles are reported as indicated

exceeds the maximum established vehicle expenditure

above, they will be maintained in the condition code

limitations.

determined

pending

receipt

disposition

instruction from the National Inventory Control Point

(NICP).

Section IV. COMPUTATION OF REPAIR COST ESTIMATES

(6) Miscellaneous costs, such as contractual

11. Repair Cost Factors. Except for costs specifically

services required, incident to and identifiable with

excluded in paragraph d below, repair costs are based

performance of all, or a portion of, the maintenance task;

on all cost necessary to return materiel to serviceable

and any other cost necessary to accomplish the required

condition at the authorized category of maintenance

repair which can be directly identified with the operation.

which undertakes the repairs.

d. Repair cost estimates exclude the following:

a. If repairs are determined to be within the scope of

(1) Replacement of basic issue items.

direct or general support maintenance and the vehicle is

(2) Items of operating expenses, including

repaired at that level for return to the user, serviceability

replacement of tracks, batteries, anti-freeze, petroleum

standards and maximum wear limits applicable to the

products and tools, except when replacement is

level concerned, will be used in computing repair cost

attributable to accident damage.

estimates.

(3) Labor cost of applying Modification Work

b. If required repairs are beyond the general support

Orders.

maintenance category and are to be accomplished as

(4) Cost to overhaul or replace accessory items

depot maintenance, the cost estimate will be based on

used to adapt equipment for special uses, including such

return of the vehicle to serviceability standards, condition

items as winterization kits, sirens, flashing lights, two-

Code A (App II-33, AR 725- 50).

way radios, rank insignia, fire extinguishers, tool kits, and

c. Repair cost estimates include the following.

similar items.

(1) Direct Labor

(5) Freight charges when the equipments to be

(a) Civilian Labor

repaired is located in CONUS.

(b) Military Labor

12. Procedures. To determine the cost of repairs

Note. Direct labor is defined as that labor, either

proceed as follows -

civilian or military, which can be specifically

a. Apply the direct labor hourly rate to the total

identified to the repair job to be performed. Direct

manhours of direct labor as shown on DA Form 2404.

labor involves only personnel in direct productive

contact with the service or item concerned.

Note. Direct labor hour requirement estimates

will be periodically updated and based on the best

(2) Direct Materials. All parts and/or materials

available data, including actual past experience for

directly applied and identifiable to the particular

the same job or engineering estimates.

equipment undergoing repair.

(3) Indirect Costs.

b. Base cost of civilian labor on a labor rate for the

(a) Indirect maintenance expenses.

work center performing the work. For this purpose, use

(b) General and administrative expenses.

one of the following two methods:

(4) One way freight charges to CONUS when

(1) On the basis of annual salaries of

the equipment to be repaired is located overseas, and

Department of the Army civilian personnel labor,

no, local capability to repair exists. Cost of freight

compute the cost by adding a factor of 8.3% to the gross

includes all costs involved in preparing the item for

pay as shown in current pay tables. This factor is to

shipment at point of use and all transportation and

compensate for benefits furnished by the Government.

handling costs from point of use to designated CONUS

For determining hourly rates, one man-year comprises

point of repair.

1720 hours (215 productive days of eight hours each).

(5) Processing for shipping costs, including

(2) On the basis of direct labor hours applied,

materials used when equipment cannot be repaired on

compute the cost by adding a factor of 29% to the

site, and costs must be incurred to prepare the

equipment for shipment regardless of destination.