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                            22.1003-6 Repair distinguished from remanufacturing of equipment.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart22.022.122.222.322.422.522.622.822.922.1022.1122.1322.1422.1522.1622.1722.1822.1922.21
Section22.100022.100122.100222.100322.100422.100522.100622.100722.100822.100922.101022.101122.101222.101322.101422.101522.101622.101722.101822.101922.102022.102122.102222.102322.102422.102522.1026
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22.1003-6 Repair distinguished from remanufacturing of equipment.22.1003-6 Repair distinguished	from remanufacturing of equipment.       (a) 						            Contracts principally for remanufacturing	of equipment which is so extensive as to be equivalent to manufacturing	are subject to   41 U.S.C. chapter 65, rather than to the Service	Contract Labor Standards statute. Remanufacturing shall be deemed	to be manufacturing when the criteria in either paragraphs (a)(1) or (a)(2)	of this section are met.                                                         (1) 								                Major overhaul	of an item, piece of equipment, or material which is degraded or	inoperable, and under which all of the following conditions exist:                                                                           (i) 										                    The	item or equipment is required to be completely or substantially	torn down into individual component parts.                                                                              (ii) 										                    Substantially	all of the parts are reworked, rehabilitated, altered and/or replaced.                                                                              (iii) 										                    The parts	are reassembled so as to furnish a totally rebuilt item or piece	of equipment.                                                                              (iv) 										                    Manufacturing	processes similar to those which were used in the manufacturing	of the item or piece of equipment are utilized.                                                                              (v) 										                    The disassembled	components, if usable (except for situations where the number of	items or pieces of equipment involved are too few to make it practicable)	are commingled with existing inventory and, as such, lose their	identification with respect to a particular piece of equipment.                                                                              (vi) 										                    The items	or equipment overhauled are restored to original life expectancy,	or nearly so.                                                                              (vii) 										                    Such	work is performed in a facility owned or operated by the contractor.                                                                                                           (2) 								                Major modification	of an item, piece of equipment, or material which is wholly or partially	obsolete, and under which all of the following conditions exist:                                                                           (i) 										                    The	item or equipment is required to be completely or substantially	torn down.                                                                              (ii) 										                    Outmoded	parts are replaced.                                                                              (iii) 										                    The item	or equipment is rebuilt or reassembled.                                                                              (iv) 										                    The contract	work results in the furnishing of a substantially modified item	in a usable and serviceable condition.                                                                              (v) 										                    The work	is performed in a facility owned or operated by the contractor.                                                                                                                            (b) 						            Remanufacturing	does not include the repair of damaged or broken equipment which	does not require a complete teardown, overhaul, and rebuild as described	in subparagraphs(a)(1) and (a)(2) of this subsection, or the periodic	and routine maintenance, preservation, care, adjustment, upkeep,	or servicing of equipment to keep it in usable, serviceable, working order.	Such contracts typically are billed on an hourly rate (labor plus	materials and parts) basis. Any contract principally for this type	of work is subject to the Service Contract Labor Standards statute.	Examples of such work include the following:                                                         (1) 								                Repair	of an automobile, truck, or other vehicle, construction equipment,	tractor, crane, aerospace, air conditioning and refrigeration equipment,	electric motors, and ground powered industrial or vehicular equipment.                                                            (2) 								                Repair	of typewriters and other office equipment (but see  22.1003-4(c)(1) and (d)(1)(iv)).                                                            (3) 								                Repair	of appliances, radios, television sets, calculators, and other electronic	equipment.                                                            (4) 								                Inspecting,	testing, calibration, painting, packaging, lubrication, tune-up,	or replacement of internal parts of equipment listed in subparagraphs(b)(1),	(b)(2), and (b)(3) of this subsection.                                                            (5) 								                Reupholstering,	reconditioning, repair, and refinishing of furniture.    **Parent topic:**  22.1003 Applicability.
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