Last updated 2021-10-28

Sublet conversion to Alternative Transportation Service hourly compensation

Guidelines for sublet conversion to Alternative Transportation Service (ATS) hourly compensation.

When sublet can be converted

In-house sublets may be converted to ATS hourly compensation. Depending upon the type of sublet, the conversion is completed using either the Mitchell Cloud Estimating (MCE), Mitchell Estimating (ME) labour time, or a specific calculation.

Sublets can be converted into ATS labour hours for ATS billing, as follows:

When the sublet is ...	Then the collision repair program participant ...
from an outside sublet company	cannot convert the cost to labour hours.
handled in house	can convert the dollar figures into ATS labour hours. Exception: The exceptions are levies, allowances, and glass sublet operations cannot be converted.

Conversion of in-house sublets

The following displays what happens for different types of in-house sublet.

When the sublet ...	Then ...
flat rate labour time is listed in Mitchell Estimating (ME)	that ME labour time must be used.
involves levies allowances, or glass sublet operations	the amount cannot be converted to hours.
involves wheel alignments	ME labour times cannot be used, and rates must be converted from the allowances specified for wheel alignments

Conversion formula

The following formula is used to convert allowable sublet amounts to hours:

(Amount of sublet in dollars and cents) divided by (applicable labour rate + material allowance)

The resulting figure is then rounded to the nearest 1/10th of an hour.

Note: The applicable labour rate and material allowance must be used when converting a sublet operation. For example, a wheel alignment is converted using the mechanical rate. For an example of a wheel alignment sublet, refer to page 39 of the Collision Repair program guide.