R 271900Z JUL 22
MARADMIN 381/22
MSGID/GENADMIN/CMC WASHINGTON DC PR//
SUBJ/U.S. MARINE CORPS CONTRACT SERVICES GUIDANCE FOR FISCAL YEAR (FY) 2023//
REF/A/DOC/DOD/24JUN21//
REF/B/DOC/DON/08APR22//
REF/C/DOC/DON/01JUL21//
REF A IS DOD INSTRUCTION 5000.74. REF B IS SECNAVINST 5000.2G ENCLOSURE (8). REF C IS MARINE CORPS BUSINESS COUNCIL CHARTER.//
POC/DENNIS MARTINO/CIV/HQMC R/LOC: WASHINGTON DC/TEL: 703-692-5506/EMAIL: DENNIS.J.MARTINO@USMC.MIL//
POC/ROBERT NAFTAL/CIV/HQMC L/LOC: WASHINGTON DC/TEL: 703-604-3269/EMAIL: ROBERT.NAFTAL@USMC.MIL//
POC/CARLTON HENSLEY/CIV/UNIT: MCSC/LOC: QUANTICO VA/703-432-3899/EMAIL: CARLTON.HENSLEY@USMC.MIL// 
GENTEXT/REMARKS/1.  Purpose.  This MARADMIN updates Service Requirements Review Board (SRRB) policy and provides SRRB guidance for FY 23.
2.  Background.
2.a.  The SRRB process will be used to review, validate, and approve services requirements to accurately inform the budget and acquisition processes.  In accordance with reference (a), contract service requirements must be vetted through an SRRB process as early in the services acquisition process as practical before a procurement request package is transferred over to a contracting officer for execution.
2.b.  Command leadership shall be responsible for the review, adjudication, and prioritization of service requirements.  Requirement reviews should include, but not be limited by, 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.  Workforce Analysis.  An analysis of the decision to insource or outsource, including any 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 DoDD 1100.4.  The analysis should also take into consideration guidance outlined in DoDI 1100.22, DoDI 7041.04 and 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 performed by a federal employee.
2.b.5.  Relationship to 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 of the forecasted cost of fulfilling the requirement, at least through the Fiscal Year Defense Program (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 functions 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.  Service contracts are defined in the Federal Acquisition Regulation (FAR) Subpart 37.101 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 services requirements and service contracts with an estimated cumulative value at $1 million or above (including contract options) require SRRBs with the following exceptions:
3.a.  Services listed in Subpart 37.502 of the Federal Acquisition Regulation (FAR) and services obtained under contracts with a total value of less than $1 million.
3.b.  Services in direct support of a contingency, humanitarian, or peacekeeping operation as defined in FAR Subpart 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.c.  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.d.  Research and development (R&D) services (Product and Service Code (PSC) Category “A”).
3.e.  Services from DoD Federally Funded Research and Development Centers (FFRDCs), which are acquired in accordance with the management structure described in FAR Subpart 35.017 and DoD Instruction (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.f.  Construction services (PSC Category “Y”).
3.g.  Services that are managed and reviewed as part of defense acquisition programs under other Adaptive Acquisition Framework pathways (see https:(slash)(slash)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.h.  Utilities services (PSC Category “S1”).
3.i.  Commercial subscription services including database and information systems, periodicals, publications and educational course subscriptions.
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 Command is required to conduct an SRRB for any contract services requirement valued at $1 million or above.  For purposes of determining when an SRRB is required, the value of the requirement is defined as the total price or total estimated cost of the contract or task order, including all options.  For task order contracts, an SRRB is required for a base contract with an estimated value of $1 million or above and any resulting task orders valued at $1 million or above.  In addition, the SRRB shall review and revalidate services requirements prior to exercising contract options where the total value of the requirement is $1 million or above.  For example, if a contract consists of a base period plus four option periods, the total value of the contract prior to contract award is the value of the base period plus the value of all four option periods.  If that total value is $1 million or above, an SRRB is required.  The following year, the total value of the contract for SRRB purposes would be the sum of the total value of all remaining options.
4.c.  The requiring activity is responsible for submitting service requirements to the SRRB regardless of the source of funding.
4.d.  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.
4.e.  The SRRB should include representatives from the Comptroller Office and applicable Contracting Office(s).  IT related contract services requirements should also include the Command Information Officer.  The SRRB validation authority may specify additional SRRB members and/or the level of participation deemed appropriate (e.g., Total Workforce Management Expert, Counsel/Local Area Counsel Offices, etc.).
4.f.  The SRRB validation authority shall be the first General Officer (GO) or Senior Executive Service (SES) member in the chain of command.  For activities that do not have a GO or SES member assigned, contractual services requirements at or above $1 million must be approved via an SRRB chaired by the first GO or SES member in the chain of command.  Chairmanship of SRRBs for contractual services requirements below $10M may be delegated in writing to the O-6 or GS-15 level.  For any such delegation, the O-6 or GS-15 must provide an annual report of SRRB results to their first GO or SES member in the chain of command no later than the end of the fiscal year (FY).
5.  SRRB Internal Controls.
5.a.   SRRB approvals shall be documented by the SRRB chair.  Should the SRRB chair require meeting minutes, action items, or recommendations, these shall also be documented as directed by the SRRB chair.  Such documents should also be made available for review during contractual services assessments or training visits.
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 Major Command Recipient Identifier - Work Center Identifier – 23 - ### (E.G. M00027-M40085-23-123).  The unique identifier will be provided upon upload of the requirement to the online portal, 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.  Submissions shall be made no later than 15 Aug 2022 and 06 Feb 2023.  The 15 Aug 2022 submission shall include the SRRB results for acquisitions of contract services planned for execution within FY23.  The 06 Feb 2023 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 Programs and Resources 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.  Submit semi-annual cover letters to Budget Execution Branch, Programs and Resources at prexecution@usmc.mil.  Summary Letter must include two examples of cost savings, efficiencies or process improvements identified during the SRRB.
6.c.  An SRRB template, as well as instructions to access the online portal, will be distributed to comptrollers via an official Department of Navy Tasking, Records, and Consolidated Knowledge Enterprise Repository (DON TRACKER) tasker, or successor tasking system tasker.
6.d.  The following HQMC Agencies and Marine Corps Commands shall consolidate SRRB submission results for subordinate commands/organizations and designate a contract services 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.b.  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 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.  Program Executive Officer Land Systems
7.  Marine Corps Business Council (MCBC) 
7.a.  The MCBC’s core responsibility is to provide business management over the Marine Corps integrated portfolio of end-to-end business processes, which fully support the Commandant of the Marine Corps’ (CMC) warfighting priorities.  MCBC review shall ensure the Marine Corps’ business management aligns with standards that produce effective business process change, compliant internal controls, clean financial statement audit opinions, and effective business reform.  MCBC will provide service-level management oversight, facilitate analysis of Marine Corps SRRB data, make recommendations to the appropriate agencies regarding how efficiencies can be gained, duplication of contracting efforts can be eliminated, and where service-level sourcing can be achieved.
7.b.  The MCBC is a standing body of the Marine Corps most senior executives.  These leaders review business process management, and supporting policies, procedures, systems and resourcing.  MCBC authorities, derived from direction provided by the Assistant Commandant of the Marine Corps, result in recommended areas for improvement or change to support the warfighting or business processes of the CMC.  The core members are Assistant Deputy Commandant for Programs and Resources (ADC P&R) (Chair of the MCBC), Counsel to the Commandant (Vice Chair of the MCBC), Assistant Deputy Commandant Manpower and Reserve Affairs (ADC M&RA), Assistant Deputy Commandant Installations and Logistics (ADC I&L), Assistant Deputy Commandant Information (ADC I), Executive Director, Marine Corps Systems Command (Ex Dir, MCSC).  P&R’s Budget and Execution Directorate, will distribute SRRB guidance, collect all SRRB data for each Level II organization, and transmit the aggregated data to I&L’s Contracting Office for its analysis IAW Paragraph 7.A.
7.c.  In relation to SRRB functions, P&R Budget and Execution Directorate is the Marine Corps’ liaison to the Department of the Navy and other agencies.
7.d.  The MCBC reports to the ACMC or his direct representative.  The MCBC meets on a regular schedule.
8.  Expect additional or updated guidance for FY23 SRRBs.
8.a.  Section 815 of the NDAA for FY22 requires the Secretary of Defense to establish and issue standard guidelines within the Department of Defense for the evaluation of requirements for services contracts.  Any such guidelines issued shall be consistent with the DoD Handbook of Contract Function Checklists for Services Acquisition’ issued by the Department of Defense in May 2018, or a successor or other appropriate policy; and shall be updated as necessary to incorporate applicable statutory changes to total force management policies and procedures and any other guidelines or procedures relating to the use of Department of Defense civilian employees to perform new functions and functions that are performed by contractors.
8.b.  To date, neither the Office of Secretary of Defense nor the Assistant Secretary of the Navy for Research, Development, and Acquisition (ASN (RDA)) have issued guidance to implement this NDAA requirement.  When received, P&R will provide updated guidance to HQMC Agencies and Marine Corps Commands.
8.c.  HQMC Agencies and Marine Corps Commands must comply with any additional or updated guidance for all SRRBs conducted after receipt of the guidance.  HQMC Agencies and Marine Corps Commands are not required to retroactively apply the guidance to any SRRBs conducted prior to receipt of the guidance.
9.  Release authorized by Lieutenant General Christopher Mahoney, Deputy Commandant, Programs and Resources.//