Enclosure (1) to COMDTINST 7310.1J
HOURLY STANDARD RATES FOR CUTTERS, BOATS, AND AIRCRAFT
General
The hourly standard rates for cutters, boats, and aircraft are divided into two categories "Inside
Government" and "Outside Government." The "Inside Government" rate is for use when charging other
agencies within the federal government. The "Outside Government" rate is for use when charging all
others.
Inside Government The following are the components of the "Inside Government" rate:
Direct Costs: Represents direct costs incurred by a particular asset class. This includes labor, employee
benefits, fuel, maintenance, etc.
Support Costs: Costs allocated to a particular asset class for support received from Coast Guard support
activities, including but not limited to, area commands, maintenance and logistics commands, districts,
groups, Integrated Support Commands (ISCs), Naval Engineering Support Units (NESUs), etc.
General and Administrative (G&A): Costs allocated to a particular asset class to represent benefit
received from Coast Guard general and administrative activities such as legal services, payroll processing,
etc.
Outside Government In addition to the costs listed in the "Inside Government" rate, the following
additional costs are included in the "Outside Government" rate:
Pension Benefit Adjustment: Costs incurred for retirement pay and medical expenses.
Operating Asset Depreciation: Depreciation by class of cutter, aircraft, boats, buildings, structures,
electronics, and other assets.
Operating Asset Cost of Capital: The annual rate of return (equal to the average long-term Treasury bond
rate) applied to the net book value of cutters, aircraft, boats, buildings, structures, and other assets.
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