CHANGE
U.S. DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
ORDER
2500.36N
CHG 5
National Policy
Effective Date:
11/18/13
SUBJ: Application of Flight-Hour Rates
1. Purpose: To update flight-hour rates for Hangar 6
2. Who this change affects: This order is distributed to organizations involved in the
formulation of budget/program estimates, formulation of cost comparison rates, administration of
fiscal programs, utilization of agency resources, and in accounting and financial reporting as
contained in the ZBU-323 distribution list.
3. Description of change: This revision moves reimbursement rates for Hangar 6 from
Appendix 1, which contains rates for all other flight programs, to Appendix 2, which contains
rates for Hangar 6 only. This revision also updates the rates charged by Hangar 6 to reflect cost
and flight hour data from FY2010-11.
4. Disposition of Transmittal. Retain this transmittal with the base directive after you insert
the changed pages.
PAGE CHANGE CONTROL CHART
Remove Pages
Appendix 1
Distribution: Electronically
Dated
Insert Pages
07/17/08 Appendix 1
Appendix 2
Dated
11/18/13
11/18/13
Initiated By: ABA-1
CHANGE
ORDER
U.S. DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
2500.36N
National Policy
Effective Date:
07/17/nft
CHG4
SU B J: Application of Flight-Hour Rates
1. Purpose. This change revises Appendix 1, Reimbursable Flight-hour Rate Table.
2. Who this change affects. This order is distributed to organizations involved in the
formulation of budget/program estimates, formulation of cost comparison rates, administration of
fiscal programs, utilization of agency resources, and in accounting andfinancialreporting as
contained in the 2IBU-323 distribution list.
3. Disposition of Transmittal Paragraph. This revision updates Appendix 1, Reimbursable
Flight-Hour Rate Table, to include reimbursement rates for Flight Inspection aircraft. This
revision is to adjust the reimbursable rates to reflect inflation from 2003 to 2007, where
applicable. This revision also reflects the aircraft that are currently being used for flight
inspection activity.
PAGE CHANGE CONTROL CHART
Remove Pages
APPENDIX 1
Dated
12/31/02
Insert Pages
APPENDIX 1
Dated
7/17/08
s\j'V\A5£>w*i^
Ramesh K. Punwani
Assistant Administrator for Financial Services
and Chief Financial Officer, ABA-1
Distribution: A-WXYZ-1
Initiated By: ABU-500
CHANGE
U.S. DEPARTMENT OF TRANSPORTATION
250036N CHG. 3
FEDERAL AVIATION ADMINISTRATION
3/4/03
SUBJ:
APPLICATION OF FLIGHT-HOUR RATES
1. PURPOSE. This change revises Appendix 1, Reimbursable Flight-Hour Rate Table.
2. DISTRIBUTION. This order is distributed to organizations involved in the formulation of budget/program estimates,
formulation of cost comparison rates, administration of fiscal programs, utilization of agency resources, and in account
ing and financial reporting as contained in the ZBA-323 distribution list.
3. EXPLANATION OF CHANGES. This revision updates Appendix 1, Reimbursable Flight-Hour Rate Table, to
include reimbursement rates for Flight Inspection aircraft. This revision is to adjust the reimbursable rates to reflect
inflation from 1993 to 2002, where applicable. This revision also reflects the aircraft that are currently being used for
flight inspection activity.
PAGE CONTROL CHART
Remove Page
Date
Insert Page
Date
Appendix 1, Page 1
1/22/98
Appendix l,Page 1
12/31/02
. Henhigan
(J
Acting Assistant Administrator for Financial Services/CFO
Distribution:
ZBA-323
Initiated By:
ABU-200
U.S. DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
2500-36N CBS 2
1/22/98
SUBJ: A P P I IHATIOM O F Fl I f i H T - H f l l IR R A T F S
1. PURPOSE. This change revises Appendix 1, Reimbursable Flight-Hour
Rate Table.
2. DISTRIBUTION. This order is distributed to organizations involved in the
formulation of budget/program estimates, the formulation of cost comparison
rates, the administration of fiscal programs, the utilization of agency resources,
and in accounting and financial reporting as contained in the ZBA-323
distribution list.
3. EXPLANATION OF CHANGES. This revision updates Appendix 1,
Reimbursable Flight-Hour Rate Table, to include reimbursement rates for Flight
Inspection Aircraft. The revision is to establish flight-hour rates for a newly
acquired Challenger 601 and a Beech Baron that will be used for flight
inspection activity.
PAGE CONTROL CHART
Remove Page
Date
Insert Page
Date
Appendix 1, Page 1
7/18/96
Appendix 1, Page 1
1/22/98
roe I C. Taub
Acting Chief Financial Officer, ABA-1
Distribution: ZBA-323
Initiated By: ABA-400
U.S. DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
2500-36N, CSG 1
7/18/96
SUBJ:
APPLICATION OF FLIGHT-HOUR RATES
1. PURPOSE. This change revises Appendix 1, Reimbursable Flight-Hour
Rate Table.
2. DISTRIBUTION. This order is distributed to organizations involved in the
formulation of budget/program estimates, the formulation of cost comparison
rates, the administration of fiscal programs, the utilization of agency resources,
and in accounting and financial reporting as contained in the ZBA-323
distribution list.
3. EXPLANATION OF CHANGES. This revision updates Appendix 1,
Reimbursable Flight-Hour Rate Table, to include reimbursement rates for Flight
Inspection Aircraft. The revision is to establish flight-hour rates for a newly
acquired Learjet 60 that will be used for flight inspection activity.
PAGE CONTROL CHART
Remove Page
Date
Insert Page
Date
Appendix 1, Page 1
2/1/93
Appendix 1, Page 1
7/18/96
//Ruth A. Leverefiz
Chief Financial Off!
Distribution:
ZBA-323
Initiated By: ABA-400
U.S. DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
2500.36N
2/1/93
APPLICATION OF FLIGHT-HOUR RATES
SUBJ:
1- PURPOSE. This order prescribes and transmits revised FY 1993
flight-hour rates to be used for estimating and billing purposes
in connection with facility flight inspection, transportation, or
other services performed for Federal and non-Federal, domestic
and overseas users. Rates have been determined on the basis of
cost to operate a specific aircraft type and may be used for cost
reimbursement and for cost comparison purposes.
2. DISTRIBUTION. This order is distributed to organizations
involved in the formulation of budget/program estimates, the
formulation of cost comparison rates, the administration of
fiscal programs, the utilization of agency resources, and in
accounting and financial reporting as contained in the
ZBU-323 distribution list.
3. CANCELLATION. Order 2500.36M, Application of Flight-Hour
Rates, dated October 1, 1992, is canceled.
4. . EXPLANATION OF CHANGES. This revision updates Appendix 1,
Reimbursable Flight-Hour Rate Table, to include rental rates for
Flight Inspection Aircraft.
5. REFERENCES.
a. OMB Circular A-126, Improving the Management and use of
Government Aircraft.
b.
Order 4040.9D, FAA Aircraft Management Program.
c. Order 2500.35C, Reimbursable Agreements Covering Services
and Materiel Provided by the Federal Aviation Administration.
d. Order 3140.2, Flight Training of Agency Personnel.
e.
OMB Circular A-25, User Charges.
f. Order 2700.31, Uniform Accounting Operating System
Manual.
Distribution: ZBU-323
Initiated By: ABU-230
2500.36N
6.
2/1/93
COST RECOVERY.
a. Non-Federal Parties. It is the policy of the FAA to
recover the full cost of providing services to non-Federal
parties and foreign countries, unless a waiver has been granted
in accordance with the procedures outlined in Order 2500.35C.
This policy is in line with OMB Circular A-25, recommendations of
the General Accounting Office, and commitments by the agency that
the principal of full-cost recovery will be adhered to for nonFederal parties.
*>• Other Federal Government Agencies. It is the policy of
the FAA to recover the full cost of providing services to Federal
Government agencies, unless reimbursement is waived pursuant to
the provisions of Order 2500.35C.
7. COST COMPARISON. When the use of an FAA aircraft for the
primary purpose of transportation of passengers and/or cargo is
considered, an advance written cost comparison shall be performed
in accordance with procedures outlined in Appendix 6, Order
4040.9D, The headquarters office requesting use of the aircraft
is responsible for performing the cost comparison in coordination
with the agency element controlling the aircraft. Cost
comparisons are not required provided:
•a. The determination is made that no commercial airline or
aircraft service is reasonably available to effectively fulfill
the transportation requirements; and
b. The flight record contains adequate written justification
showing clearly the reasons for use of FAA aircraft under these
conditions.
8. RATE DERIVATION. The following costs have been included to
determine operating costs for use of all aircraft in the FAA
fleet:
a. Operations and maintenance of aircraft, depot stocks and
stores, fuel tax, major inspection and engine overhaul, and
flight crew.
Page 2
Par 6
2/1/93
2500.36N
b. These rates were developed based on the use and actual
modifications and services of the jets, helicopters, and aircraft
in the fleet as of June 1992. Fuel tax was computed using fuel
averages for FY 1989 through FY 1992. Crew costs were compiled,
separating flight inspection crew costs from non-flight
inspection costs. Indirect costs were developed from historical
data.
9.
APPLICATION.
a. The hourly rates published in Appendix 1 are applicable
as indicated.
b. Establishment of reimbursable flight-hour rates is
governed by the provisions of Order 2500.35C.
c. Aircraft flight time shall be determined as follows:
(1) Facility Flight inspection. Flight time spent in
actual flight inspection, enroute time, and instrument
calibration. Charges will be made for "flight time" as recorded
on the Flight Inspection Daily Flight Log, FAA Form 4040.5 per
Order 4040.9D.
(2) Transportation or Other Services. Flight time
involved in performing the service, including enroute time to and
from the base of operations. Charges will be made for "Flight
Time" as recorded on FAA Form 4040-6, FAA Aircraft Request and
Use Record.
d. The following guidance applies in determining the rate in
Appendix 1 to be charged the various users:
(1) FAA Users: Column A of the FY 1993 Reimbursable
Flight-Hour Rate Table.
(2) Non-Federal Users in the United States:
the FY 1993 Reimbursable Flight-Hour Rate Table.
Column B of
(3) All Users in Foreign Areas: Foreign rate for British
Aerospace (BAe) 800, Column B of the FY 1993 Reimbursable FlightHour Rate Table.
Par 8
Page 3
2500.36N
2/1/93
(4) Other Federal (Non-FAA) Users in the United States:
Column B of the FY 1993 Reimbursable Flight-Hour Rate Table.
e. Reimbursements collected in connection with flight
inspection, transportation, or other services performed for
foreign or domestic users, must be credited as revenue to the
same appropriation which received the customer order and incurred
the obligation to fill the order. This should be the Operations
appropriation.
f. The administrative charges required by Order 2500.35C are
not included in the rate table in Appendix 1. These charges must
be added as appropriate.
g. The flight hour rates prescribed in Appendix 1 are
effective February 1, 1993. Any current reimbursable agreements
which will continue to be in effect on and after
February 1, 1993, will be amended as soon as possible to reflect
these new rates. All agreements must indicate clearly that the
rate cited will be revised by the amendment process to correspond
to any subsequent revisions or changes to Order 2500.35C and
Order 2500.36N.
Ruth A. Leverenz
Director of Budget
Page 4 and 5
Par 9
11/18/13
2500.36N, Chg. 5
Appendix 1
APPENDIX 1. FLIGHT HOUR RATES FOR FLIGHT INSPECTION SERVICES', FLIGHT STANDARDS', AND TECHNICAL
CENTER AIRCRAFT
Flight Program
Parts
Major Inspection
and Engine
Overhaul
Total Operating
Costs
Reimbursement
Rate
Flight
Crews
Fuel
Operations
and
Maintenance
Beechcraft BE-300
Hawker BAe 800
Learjet 60
Challenger 600 Series
$555
$549
$537
$571
$418
$1,035
$858
$1,205
$597
$716
$651
$1,041
$205
$369
$905
$1,005
$143
$311
$373
$244
$1,918
$2,980
$3,324
$4,066
Beechcraft BE-300
Hawker BAe 800
Learjet 00
Challenger 600 Series
$576
$682
$557
$704
$418
$1,035
$858
$1,205
$596
$728
$651
$1,070
$205
$369
$905
$1,005
$143
$311
$373
$244
$1,938
$3,125
$3,344
$4,228
$0
$0
$0
$384
$313
$405
$495
$174
$207
$201
$201
$222
$188
$172
$368
$1,268
$860
$1,202
$143
$158
$151
$160
$146
$79
$202
$34
$80
$171
$951
$382
$559
$511
$416
$217
$229
$237
$168
$112
$1,200
$147
$219
$213
$99
$2,590
$1,118
$1,200
$1,132
$944
Aircraft Description
Footnotes
AVN - Flight Inspection
Domestic Rate
Foreign Rate
AFS Flight Program
Beechcraft A200
Beechcraft C-90
Beechcraft F-90
Technical Center
Aero Commander AC-680E
Convair CV-580
Sikorsky SK-76
Beechcraft BE-200
BD-700-1A11 Bombardier
Notes:
General:
Note 1
Rates are based on variable costs in accordance with OMB Circular A-126, Attachment A. AVN and Technical Center have elected to include some
fixed crew costs.
The Flight Programs above reserve the right to add a fuel surcharge in addition to the Reimbursement Rate if actual fuel prices significantly exceed the
average fuel costs on which the Reimbursement Rates are based as follows: AVN and AFS - $4.30/gallon, Technical Center - $3.12/gallon.
1
Technical
Center:
2
Technical
Center:
The AC-680E aircraft experienced very low flight and R&D hours with significant calendar maintenance costs resulting in increased maintenance costs
per hour. This cost per hour is expected to reduce in the future if the number of hours of utilization increases.
The Boeing 727 aircraft is excluded from the Reimbursable Rate table. It has been permanently grounded and is being held for sale.
1-1
11/18/13
2500.36N, Chg. 5
Appendix 2
APPENDIX 2. FLIGHT HOUR RATES FOR WASHINGTON FLIGHT PROGRAM (HANGAR 6) AIRCRAFT
Variable Costs
Fixed Costs
Flight Program
Aircraft Description
Maintenance
Pilots
Fuel
Lease
Internal
Rate
Hangar 6
Gulfstream G-IV
Cessna CE-560 XL
$1,563
$0
$203
$203
$1,582
$734
$0
$31
$3,347
$967
Maintenance
Pilots
Depreciation
Lease
External
Rate
$373
$37
$678
$678
$1,247
$0
$0
$3,240
$5,644
$4,922
Notes:
1.
The fuel charge in the reimbursement rate assumes an average cost of $3.22/gallon. The hangar reserves the right to add a fuel surcharge in addition to the
reimbursement rate if actual fuel prices exceed this rate.
2.
Variable crew costs overtime, night & weekend differential, travel, etc. are not included in the rates. Actual variable crew costs are billed to reimbursable customers in
addition to flight-hour charges.
3.
Rates based on cost and aircraft operation data from FY2010-11
4.
The internal rate is the rate charged to FAA’s internal reimbursable customers. The internal rate is also used by the Office of the FAA Administrator (AOA), the Office of
the ATO Chief Operations Officer (COO), and the Office of the DOT Secretary (OST) for cost comparison purposes when considering the use of Hangar 6 aircraft for
transportation in lieu of commercially available travel.
5.
The external rate is the hourly rate at which non-FAA reimbursable customers will be billed for use of Hangar 6 aircraft.
6.
Volume 4, Chapter 6, Reimbursable Agreements of the FAA Financial Manual provides the policy and processes for entering into InterAgency (IAA) and
Reimbursable Agreements (RA) with external customers.
7.
The applicable Agency administrative overhead rate will be applied to billings for services provided under InterAgency (IAA) and Reimbursable
Agreements (RA).
8.
Wherever language in this order concerning Hangar 6 disagrees with this appendix, defer to this appendix.
2-1
