EP 1110-1-8
(Vol. 9)
31 July 03
Taxes and shipping for FOG supplies
Handling and disposal of hazardous materials and oils
b.
The hourly FOG cost is calculated for each engine using the following
formula:
FOG Cost/hr = FOG Factor x Fuel Cost/hr x LAF
Where:
(1) FOG Factor is the percent allowance expressed as a decimal factor
under each fuel type heading E (electricity), G (gas), or D (diesel). See appendix D.
(2) Fuel Cost/hr is a calculated value shown under the column heading
FUEL in tables 2-1 and 2-2.
(3) LAF (labor adjustment factor) is a decimal factor used to adjust the
FOG Factor to account for regional variations in labor and parts costs. This factor is
provided in appendix B. LAF is also used to adjust the repair factor (RF) and the tire
repair cost.
c. The FOG percentage allowance includes the cost for servicing. For
equipment that is normally serviced by an oiler assigned to the unit of equipment, the
FOG percentage is reduced. This reduction applies to the following equipment: cranes,
draglines, hydraulic excavators, and shovels (except equipment under category
numbers C75, C80.01, C85.11, C85.12, C85.21, C90.01, H25.11, H25.12, H30.01,
H30.02, and M10.32).
d. When a unit of equipment has no engine (therefore no fuel costs calculated)
and the equipment requires some type of fuel (i.e., propane, kerosene), an alternative
hourly fuel and FOG allowance may be used in lieu of the regularly calculated fuel and
FOG hourly costs. A FOG allowance may also be added when the equipment has no
engine and has parts that require FOG. The alternative fuel allowance is added to the
alternative FOG allowance for a total alternative fuel and FOG cost. (See figure 2-1,
5.c)
2.25
Repair Cost
The repair cost accounts for equipment repairs, maintenance, and major
overhauls (including undercarriage wear, ground engaging tools, and designated
attachments) performed in either the field or the shop. Where tire cost is the cost of the
tires when the equipment was manufactured, use the same TCI and tire cost as shown
in the depreciation calculation (see section 2-20). The estimated hourly rate for repairs
is computed as follows:
[(TEV) - [(TCI)(Tire Cost)]] x RF
Repair Cost/hr =
LIFE
2-9
Previous Page
