NAVFAC P-300 Management of Transportation Equipment

2.7.3 Repair and/or Replacement Determinations For Construction, Railway,
Weight Handling and Other Transportation Equipment (Alpha Code O through Z).
The determination of whether to replace or repair a unit of equipment may be guided in
part by the one-time repair limits provided in Appendix F. If the age of the item under
consideration exceeds the life expectancy, a factor of 20 percent should be used.
Authorization to exceed the one-time-repair cost limit shall be obtained from the
cognizant TEMC. Whenever it is determined that an item of construction, railway, or
weight handling equipment should be replaced in accordance with the criteria
established herein, and a replacement unit is not currently available (as determined by
the cognizant TEMC), the equipment may be maintained only at a level to ensure safe
operation for further temporary use pending scheduled replacement.
2.7.4 Costing of Repair Estimates For Transportation Equipment. Uniform cost
criteria should be used to determine whether it is more economical to repair or replace
transportation equipment (see Appendix G for labor hour input standards). Repair
estimates shall include direct labor, material, indirect costs, and other direct charges.
a. Direct Labor. Direct labor is all labor, civilian or military, which can be
specifically identified to the repair job.
(1) To arrive at direct labor cost, it is necessary to determine the direct
labor man-hours required, and then apply the appropriate direct labor hourly rates to
these man-hours.
(2) Direct labor costs must represent the best available estimate. Activities
normally use flat rate manuals to determine the direct labor man-hours required.
Otherwise, estimates will be based on similar work performed previously, or estimates
based on individual experience.
b. Labor Rates for Civilian Employees. Cost of civilian labor will be based on
the labor rate for the work center performing the work, or where applicable, the labor rate
stated within the commercial transportation contract.
(1) When costs of civilian labor are determined on the basis of annual
salaries, these costs will include the factor for Government contributed benefits.
(2) When costs of civilian labor are determined on the basis of direct labor
hours (days, etc.) applied, these costs will be computed by adding to the gross pay, as
shown in current pay tables, the factor for Government contributed benefits.
c. Labor Rates for Military Personnel. Labor rates for military personnel will be
the average military wage rate for the work center performing the work, based on
standard rates published in the NAVCOMPT Manual, Volume 3, Chapter 5.
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