U.S. Marine Corps Contract Services Guidance for Fiscal Year (FY) 2027

# Extracted Remarks/Body Content

1.  Purpose.  This MARADMIN updates the Service Requirements Review Board (SRRB) policy and provides SRRB guidance for FY27. 

2. Background. 

2.a.  The SRRB process will be used to review, validate, prioritize, and approve service requirements to accurately inform the budget and acquisition processes.  Per reference (a), contract service requirements must be vetted through the SRRB process as early in the services acquisition process as practical before a procurement request package is transferred to a contracting officer for execution. All current and future contracting requirements will be in compliance with references (g) through (l).

2.b. Comptrollers at the L2 and L4 Command levels shall review, adjudicate, and prioritize service requirements.  Requirement reviews should be appropriately tailored to include, but not be limited to, the following considerations. 

2.b.1.  Mission Need.  Explanation of the mission need for the requirement and the outcomes to be achieved from acquiring services.

2.b.2.  Strategic Alignment.  How the requirement for services supports the broader organizational mission. 

2.b.3.  Issues and Risks.  Both government and contractor issues and risks impacting the successful execution of fulfilling the requirement. 

2.b.4.a Workforce Analysis.  An analysis of the decision to insource or outsource, including past decisions and why the requirement cannot be fulfilled with military or civilian personnel.  Coordination with the DoD Component Manpower and Personnel officials should be done in accordance with DoD Directive 1100.4.  The analysis should also take into consideration guidance outlined in DoD Instruction (DoDI) 1100.22, DoDI 7041.04, and Office of Management and Budget (OMB) Circular A-76/Section 2461 of Title 10, U.S.C.  In addition, the Office of Small Business Programs (OSBP) is required to review and advise on any decisions to convert an activity performed by a small business concern to an activity conducted by a federal employee.
Per reference (k), all commands must use the least costly mix of military, civilian, and contract personnel consistent with military requirements and needs for the Department as prescribed by law.
See paragraph 2.b.4.b for more information.

2.b.4.b The FY27 cost for a single Full-Time Equivalent (FTE) contractor is established at $197,600. This figure will serve as a benchmark for assessing the cost-effectiveness of utilizing contractor services versus internal resources. All proposals and justifications for contractor support must demonstrate value within this benchmark.  See ref (k).

2.b.5.  Relationship with Other Requirements.  How the requirement for services impacts other requirements of the DoD Component (positively or negatively).  For information technology (IT) services, ensure requirements are consistent with enterprise IT strategies. 

2.b.6.  Projected Cost of Requirement.  Estimate the forecasted cost of fulfilling the requirement, at least through the Future Years Defense Program (FYDP) (5 years). 

2.b.7.  Prioritization.  A determination as to whether the requirement for services is a lower-priority requirement that can be reduced or eliminated with savings transferred to higher-priority objectives or mission requirements. 

2.b.8.  Contract and Work Functions.  A review and identification of contract and work functions that may be prohibited or require heightened management attention, such as closely associated with inherently governmental or critical functions.  For additional guidance on identification, SRRBs are recommended to use the DoD Handbook of Contract Function Checklists for Services Acquisition, as needed. 

2.b.9.  Metrics.  Performance management metrics should be considered to the maximum extent practicable during the SRRB review and approval process. 

3. Services Defined.  A service contract is defined in the Federal Acquisition Regulation (FAR) Section 37.001 (DoD Class Deviation 2026-O0023) as a "contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply."  All service requirements and service contracts require SRRBs with the following exceptions: 

3.a.  Services obtained under contracts with a total value of less than $1 million. 

3.b. Services obtained through personnel appointments and advisory committees.

3.c.  Services obtained through personal service contracts authorized by statute.

3.d.  Services for constructions as defined in FAR 2.101.

3.e.  Services obtained through interagency agreements where the work is being performed by in-house Federal employees.

3.f.  Services in direct support of a contingency, humanitarian, or peacekeeping operation as defined in FAR Section 2.101.  This exemption shall apply to the response and initial deployment phase but shall terminate as soon as practical based on conditions on the ground and a determination by the decision authority. 

3.g.  Services that are required to respond to and recover from an emergency or disaster directly supporting an emergency declaration or a major disaster declaration by the President.  This exemption shall apply to the response and initial recovery phase but shall terminate as soon as practical during the sustainment phase managing reconstruction and recovery efforts based on conditions on the ground and a determination by the decision authority. 

3.h.  Research and development (R&D) services (Product and Service Code (PSC) Category "A").

3.i.  Services from DoD Federally Funded Research and Development Centers (FFRDCs), which are acquired in accordance with the management structure described in FAR Section 35.017 and DoDI 5000.77 and from DoD University Affiliated Research Centers (UARCs), which are acquired in accordance with the management structure described in the DoD UARC Management Plan. 

3.j.  Construction services (PSC Category "Y"). 

3.k.  Services that are managed and reviewed as part of defense acquisition programs under other Adaptive Acquisition Framework pathways (see https://aaf.dau.edu for additional information on the pathways: Urgent Capability Acquisition, Middle Tier of Acquisition, Major Capability Acquisition, Software Acquisition, Defense Business Systems).  DoDI 5000.74 and SRRB requirements may apply to services in the operations and support phase of these programs at the discretion of the Milestone Decision Authority. 

3.l.  Utilities services (PSC Category "S1"). 

3.m.  Commercial subscription services include database and information systems, periodicals, publications, and educational course subscriptions.

3.n. Service requirements funded at fifty percent or more by Foreign Military Sales, regardless of funding source.

3.o.  Navy Marine Corps Intranet (NMCI) and Global Installation (GIC) services.

4. SRRB Requirements. 

4.a.  The SRRB is a requirement validation process; SRRB approval does not constitute a promise to fund or a promise to award a contract.  Final decisions related to contract execution, such as contract type, small business participation, and/or the extent of competition, are reserved for contracting officers. 

4.b.  Each Headquarters Marine Corps (HQMC) Agency and Marine Corps Commands are required to conduct a SRRB for any contract services requirement valued at $1 million or above including those that are funded by a Purchase Request for Contractual Procurement (NAVCOMPT 2276), Military Interdepartmental Purchase Request (MIPR), Fiscal Service Form 7600A, General Terms & Conditions (GT&C), project order, or any other method for obtaining contractor support. To determine when a SRRB is required, the value of the requirement is defined as the total estimated price of the contract, or task order, inclusive of all optional tasks and all optional periods.  Additionally, pre-priced options not exercised at time of award, which exceed the SRRB threshold, also require subsequent review and approval prior to award. For Indefinite Delivery, Indefinite Quantity (IDIQ) contracts, the base award and each individual task order meeting the SRRB threshold require an SRRB.

4.c.  Per reference (e), the Military Services are required to notify Congress about the cost and nature of advisory and assistance services falling under object class 25.1 through the PB-15 budget exhibit [Contracted Advisory and Assistance Services (CAAS) exhibit]. All Headquarters Marine Corps (HQMC) Agencies and Marine Corps Commands are required to review and validate any cost escalation within their SRRB in advisory and assistance services from FY26 to FY27 as delineated by object class 25.1 and outlined in ref (f). Consequently, HQMC Agencies and Marine Corps Commands will certify that all cost escalations resulting from their SRRB are operationally essential and will note such within their finalized endorsement via the required SRRB validation authority.

4.d.  The requiring activity is responsible for submitting service requirements to the SRRB regardless of the funding source. 

4.e.  Marine Corps activities receiving funds from another Marine Corps Command will rely on the originating command's SRRB validation; an additional SRRB review is not required. In cases where the funding activity plays no part in the make/buy decision and is simply a consumer of the capability provided by the servicing activity; the servicing activity is responsible for the SRRB.

4.f.  The SRRB should include representatives from the Comptroller Office and applicable Contracting Office(s).  IT-related contract services requirements should follow the Information Technology Procurement Review and Approval System (ITPRAS) process managed by the Deputy Commandant for Information (DCI)/Headquarters Marine Corps (HQMC) Directorate of Information (C4).   The SRRB validation authority may specify additional SRRB members and/or the appropriate participation level (e.g., Total Workforce Management Expert, Counsel /Local Area Counsel Offices, etc.). 

4.g.  The SRRB Chair and Approval Authority shall follow the following dollar thresholds: At or above $10 Million ($10M+) must be chaired and approved by the first General Officer (GO)or Senior Executive Service (SES) member in the chain of command, between $1 Million and $10 Million ($1 M to <$10M) to be chaired and approved by the first GO or SES in the chain of command, below $1 Million (<$1M) to be handled by local command validation requirements. 

5. SRRB Internal Controls. 

5.a.   SRRB approvals shall be documented by the SRRB chair or designated official. 

5.a.1.  SRRB approvals must be documented and certified by the SRRB chair or designated official with the following certification statement (statutory requirement per 10 USC 4506): "I certify that this purchase request requirement is in compliance with the standard guidelines found in the Department of Defense's Handbook of Contract Function Checklists for Services Acquisition (May 2018 or successor document), that all appropriate statutory risk mitigation efforts have been made, and that the purchase request does not include requirements formerly performed by Department of Defense civilian employees". See the following site for the DoD Handbook of Contract Function Checklists for Services Acquisition: https:(slash) (slash)www.acq.osd.mil/asda/dpc/cp/policy/services-acquisition.html 

5.a.2. SRRB chairs have discretion in how to document SRRB approval and certification.  Some possibilities include the SRRB approval template included as attachment (1) to reference (C), meeting minutes, quad presentation charts, electronic systems, etc. 

5.a.3. Should the SRRB chair require meeting minutes, action items, or recommendations, these shall also be documented as directed by the SRRB chair. 

5.a.4.  HQMC Agencies and Marine Corps Commands must retain all SRRB approval documentation.  During Command Inspections, contractual services assessments, training visits, or other similar higher-level assessments, reviewers may request documentation that the HQMC Agency or Marine Corps Command must provide. 

5.b.  HQMC Agencies and Marine Corps Commands must identify, document, and implement appropriate internal control processes to ensure that funding documents for contract service requirements are not submitted to contracting officers without SRRB validation. 

5.c.  All funding documents shall include the following statement: "This service contract requirement has been approved by the (insert your organization here) SRRB on DD MM YYYY.  The (insert your organization here) SRRB was chaired by - (insert SRRB chair's name). The unique identifier is M#####-M#####-##-###."  For the SRRB identifier, the format will be Level 2 Command – Level 4 Command – 27 - ### (e.g., M00027-M40085-27-123).  A unique identifier will be provided upon upload of the requirement to the online portal, as described in 6.a. 

6. SRRB Results Submissions.

6.a.  SRRB results shall be submitted semi-annually via an online portal to improve data integrity and security.  SRRB Requirements Forecasting Tool (FMT) https:(slash) (slash)fmt.logistics.disa.mil. Submissions shall be made no later than 05 Feb 2027 and shall include the SRRB results for acquisitions of contract services planned for execution within FY27.  The 05 Feb 2027 submission shall validate previously approved requirements, remove any forgone requirements that are no longer necessary, and add any new requirements.  Unanticipated contract services requirements not included in either formal submission must still be approved by an SRRB and uploaded to the online portal.  Formalized reporting times aid in contracting office work planning. 

6.b.  Documentation for submission shall consist of a summary letter submitted to HQMC Programs and Resources (P&R), signed by the SRRB approving authority, and an upload of the SRRB data to the online portal.  This summary will be made available to the applicable Contracting Offices upon request.  Submit semi-annual cover letters to the Budget Execution Branch, P&R, at prexecution@usmc.mil.  The Summary Letter must include two examples of cost savings, efficiencies, or process improvements identified during the SRRB. 

6.c.  The SRRB template and instructions to access the online portal will be distributed to comptrollers via an official tasker in the Enterprise Task Management Software Solution (ETMS2). 

6.d.  The following HQMC Agencies and Marine Corps Commands shall consolidate SRRB submission results for subordinate commands /organizations and designate a contract service point of contact: 

6.d.1 Headquarters Marine Corps Comptroller 

6.d.1.a.  Director, Marine Corps Staff 

6.d.1.b.  Deputy Commandant for Plans, Policy, and Operations 

6.d.1.c.  Deputy Commandant for Combat Development and Integration 

6.d.1.d.  Deputy Commandant for Manpower and Reserve Affairs 

6.d.1.e.  Deputy Commandant for Installations and Logistics 

6.d.1.f.  Deputy Commandant for Aviation 

6.d.1.g.  Deputy Commandant for Programs and Resources

6.d.1.h.  Deputy Commandant for Training and Education 

6.d.1.i.  Deputy Commandant for Information 

6.d.2.  Commander, Marine Forces Pacific 

6.d.3.  Commander, Marine Forces Command 

6.d.4.  Commander, Marine Forces Reserve 

6.d.5.  Commander, Marine Forces Central 

6.d.6.  Commander, Marine Special Operations Command 

6.d.7.  Commander, Marine Forces Cyber Command 

6.d.8.  Commander, Marine Forces Europe/Africa 

6.d.9.  Commander, Marine Corps Installation Command (MCICOM) 

6.d.10.  Commander, Marine Corps Recruiting Command 

6.d.11.  Commanding General, Marine Corps Logistics Command 

6.d.12.  Commanding General, Training and Education Command 

6.d.13.  Commanding General, Marine Corps Systems Command 

6.d.14.  Portfolio Acquisition Executive-Marine Corps (PAE-MC) 

7. Administration.

7.a. Prior to obligating funds for contract services growth above FY26 levels, commands must coordinate with HQMC P&R to ensure compliance with Office of the Secretary of War (OSW) limits imposed on the service.

7.b. Exceptions to the requirement are granted for contract services funded in support of Facilities Sustainment, Restoration, and Modernization (FSRM) efforts.

7.d.  For additional guidance and direction please contact DC P&R RBE. 

8.Release authorized by Mr. Edward C. Gardiner, SES, Assistant Deputy Commandant for Programs and Resources.