NavAir Maintenance Trade Cost Guidebook

Keywords cost guide costing guide maintenance trade cost


Prior to review of a proposed maintenance alternative concept in detail, the following considerations should be made:

1. Is there enough service life and overall system population to warrant the change?

• The number of systems affected and the operational period over which the concept can be implemented must be considered as factors in recouping any non-recurring costs associated with making a maintenance concept change. The fewer unit operational years remaining, the less non-recurring costs can be accommodated. Likewise, a longer time period for designing and implementing the maintenance trade proposal will translate into a shorter duration to recoup the initial investment. Hence, the fewer unit operational years remaining, the greater the savings that are required to offset initial implementation costs.

2. Are there systemic parts obsolescence problems?

• Systems with a majority of components in a technical life cycle decline or phase out may be considered as good candidates for Original Equipment Manufacturer (OEM) maintenance. If the answer to this question is yes, skip question 3 and consider OEM repair.
• For further guidance, reference Naval Air System Command Cost Department’s automated Obsolescence Cost Model and report, Avionics Obsolescence Cost Estimating and Analysis.

3. Is there a high false removal rate (A799) associated with the equipment?

• A high A799 rate may prevent the use of 2-level maintenance because of the increase in shipping and spares costs and the accumulation of unnecessary charges at the depot level for supporting a system (Any system inducted into a depot, commercial or organic, will be assessed a charge regardless if the repairs are conducted on the system.).

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