Material support division, working capital fund - Air Force Link
Material support division, working capital fund - Air Force Link
Material support division, working capital fund - Air Force Link
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AFMAN 23-110 Volume 1<br />
Part 3, Chapter 7<br />
Secondary Item Requirements System (D200A)<br />
Item Pricing System (D200N)<br />
Job Order Production Master System (G004L)<br />
MISTR Requirements Scheduling and Analysis System (G019C)<br />
Contract Depot Maintenance Production and Cost System (G072D/I)<br />
Requirements Item Notification Data (D200E)<br />
Acquisition and Due in System (J041)<br />
Federal Logistics Information System (FLIS)<br />
Master Item Identification Control System (D043)<br />
Stock Number User Directory (D071)<br />
Item Manager Wholesale Requisition Process (D035A)<br />
Financial Inventory Accounting and Billing System (D035J)<br />
Standard Base Supply System (D002A)<br />
Standard Materiel Accounting System (H118)<br />
7.7.3. Costs.<br />
7.7.3.1. Background.<br />
7.7.3.1.1. There are six cost elements in MSD. The first two are the LAC and LRC. The next<br />
three cost recovery elements (formerly called surcharges) are the BOCR@LAC, the<br />
BOCR@LRC, and the MCR. The sixth cost is the Carcass Cost. Costs are included in the<br />
Standard Price, Exchange Price and UAP to recover buy/repair costs and operating expenses<br />
incurred by MSD.<br />
7.7.3.2. LAC. The LAC is the price paid for an item the last time it was procured from a supplier.<br />
The LAC is generally the latest representative contract price obtained from the Acquisition and<br />
Due-In System (J041) and does not include any cost recovery or inflation. The LAC is used to<br />
develop the BOCR@LAC (see paragraph 7.7.3.4.) and the Standard Price (see paragraph<br />
7.7.2.1.) for all MSD items.<br />
7.7.3.3. LRC. The LRC is a representative average of the latest repair costs from Depot Maintenance<br />
and Contractor repair facilities. The LRC is developed in D200N by using the G004L and<br />
G072D EISPs and developing a weighted average repair cost by NSN. The LRC is then adjusted<br />
to reflect Depot Maintenance costs and the Program Budget Decisions. The LRC is used to<br />
develop the BOCR@LRC (see paragraph 7.7.3.4.) and the Exchange Price (see paragraph<br />
7.7.2.2.) for all MSD items.<br />
7.7.3.3.1. When a new item with no reparable history is established, the LRC is calculated at<br />
twenty-five percent of the forecast unit price (FUP) in the D200N. If no FUP is available,<br />
D200N will compute the LRC based on twenty-five percent of the LAC. D200N is the Stratification<br />
and Item Pricing System (IPS). IPS is a set of sub programs to the stratification process.<br />
7–9