Section IV. COMPUTATION OF REPAIR COST ESTIMATES

TB 750-99-69

thorough to determine man-hours and parts or materiels required to return the item to the appropriate standard of

serviceability. Maximum use will be made of authorized test and diagnostic equipment and disassembly will be held to

the minimum consistent with an adequate determination of maintenance required. 'The results of the technical inspection

and resulting cost computations will be recorded on DA Form 2404 (Equipment Inspection and Maintenance Worksheet)

as prescribed in Appendix C.

b. Maintenance requirements for materiel covered by this technical bulletin, to be repaired or overhauled at

organizational, direct support or general support level, shall be determined based on the standards of serviceability

contained in the applicable technical manual.

c. Maintenance requirements for materiel covered by this technical bulletin, to be overhauled at depot level, shall

be determined based on standards of serviceability established by the (USAAVSCOM).

d. Materiel covered by this technical bulletin to be inducted into depot level maintenance will have a technical

inspection accomplished prior to induction to determine the maintenance required to achieve the standard of

serviceability prescribed by USAAVSCOM and to establish the economic repair status as required.

e. Materiel covered by this technical bulletin received by depot maintenance activities with a completed DA Form

2404 (Equipment Inspection and Maintenance Worksheet) reflecting technical inspection results and repair cost

estimates, will be checked to validate the inspection findings and repair cost estimates prior to induction into

maintenance.

f. Technical inspection for the purpose of determining economic repair status is not required below depot level

maintenance in the following instances:

(1) When the NICP has indicated that items should be repaired or returned regardless of cost. See paragraph

5c(1) above. Such items will be immediately inducted into maintenance when within the capability and/or capacity of

organizational, direct support or general support level, or evacuated to depot level.

Section IV

COMPUTATION OF REPAIR COST ESTIMATES

8. Cost Factors.

The following cost factors will be considered as a minimum when preparing cost estimates for repair/overhaul.

These factors will be included on the DA Form 2404 as depicted in Appendix C. For computation of these costs, refer to

AR 750-1.

(1) Direct labor

(2) Indirect labor

(3) Parts and materiels

(4) General and administrative

b. Direct labor is that labor either civilian or military which can be specifically identified to the job to be performed.

c. Indirect labor is that labor identifiable to the maintenance activity, however, not identifiable to any particular job.

d. Parts and materiels includes all materials directly applied and identified to the particular equipment undergoing

repair.

e. General and Administrative expenses are costs incurred in general management or supervision of the installation.

9. Procedure.

a. Maintenance expenditure estimates will be based upon the total cost to return synthetic and simulative trainers or

components thereof to the serviceable condition specified in the authorized equipment publication for the maintenance

category undertaking the repair (either contract or in-house).

b. Necessary repairs will not be deferred or omitted so as to reduce the total estimated repair cost to a value less

than prescribed by maximum maintenance expenditure limitations for the purpose of continuing the use of the materiel.

c. Repair eligibility on percentage basis will be established by comparison of estimated repair/overhaul cost with the

product of the standard price (listed in the current Management Data List) multiplied by the maximum permissible

maintenance expenditure limit percentage specified in Appendix A/B.

d. Transportation and handling costs, to include preservation and packing, will be included as an element of cost to

repair. These costs are further defined as:

(1) All costs involved in preparing the item for shipment at point of use.