Common use of Average Direct Hourly Labor Rate Clause in Contracts

Average Direct Hourly Labor Rate. the average hourly rate (excluding all fringe benefits, premium-time allowances, social charges, business taxes and the like) paid by Customer to its Direct Labor employees. Boeing Product—any system, accessory, equipment, part or Aircraft Software that is manufactured by Boeing or manufactured to Boeing’s detailed design with Boeing’s authorization. Correct(s)—to repair, modify, provide modification kits or replace with a new product. Correction—a repair, a modification, a modification kit or replacement with a new product. Corrected Boeing Product—a Boeing Product which is free of defect as a result of a Correction. Direct Labor—Labor spent by Customer’s direct labor employees to access, remove, disassemble, modify, repair, inspect and bench test a defective Boeing Product, and to reassemble, reinstall a Corrected Boeing Product and perform final inspection and testing. Direct Materials—Items such as parts, gaskets, grease, sealant and adhesives, installed or consumed in performing a Correction, excluding allowances for administration, overhead, taxes, customs duties and the like. Rogue Unit—A Boeing Product, on which an unscheduled removal due to breach of warranty occurs three (3) or more times both (i) within the warranty period and (ii) within either twelve (12) consecutive months or one thousand (1,000) consecutive operating hours.

Average Direct Hourly Labor Rate. the average hourly rate (excluding all fringe benefits, premium-time allowances, social charges, business taxes and the like) paid by Customer to its Direct Labor employees. Boeing Product—Product — any system, accessory, equipment, part or Aircraft Software that is manufactured by Boeing or manufactured to Boeing’s detailed design with Boeing’s authorization. Correct(s)—to Correct(s) — to repair, modify, provide modification kits or replace with a new product. Correction—Correction — a repair, a modification, a modification kit or replacement with a new product. Corrected Boeing Product—Product — a Boeing Product which is free of defect as a result of a Correction. Direct Labor—Labor - Labor spent by Customer’s direct labor employees to access, remove, disassemble, modify, repair, inspect and bench test a defective Boeing Product, and to reassemble, reinstall a Corrected Boeing Product and perform final inspection and testing. Direct Materials—Materials - Items such as parts, gaskets, grease, sealant and adhesives, installed or consumed in performing a Correction, excluding allowances for administration, overhead, taxes, customs duties and the like. Rogue Unit—Unit - A Boeing Product, on which an unscheduled removal due to breach of warranty occurs three (3) or more times both (i) within the warranty period and (ii) within either twelve (12) consecutive months or one thousand (1,000) consecutive operating hours.