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PolicyPolicy change

FY27 contract services review process updated, with a new cost benchmark

MARADMIN 515/26·October 22, 2026·2 min read·Official source

The Marine Corps released its annual contract services guidance for FY27, updating the Service Requirements Review Board (SRRB) process. The SRRB is the internal approval process commands must go through before hiring contractors. This message updates that process and sets a new cost benchmark for evaluating whether contractor support is worth it.

Heads up: This is a command-level acquisition policy message. It does not require action from individual reservists, but MARFORRES and subordinate commands are explicitly named and must comply.

Who it affects

This message is directed at commands, comptrollers, and acquisition personnel, not individual Marines. MARFORRES (Commander, Marine Forces Reserve) is specifically listed as a consolidating command, meaning reserve-side commands fall under this guidance. If you work in resource management, contracting, or G8/S-8 functions at any level of the reserve structure, this is relevant to your lane.

Individual SMCR Marines, IMAs, and IRR Marines have nothing to act on here.

What you need to do

For most reservists: Nothing. This is an awareness item at most.

For reserve command staff in resource management or acquisition roles: Review the updated SRRB requirements before obligating funds for contract services in FY27. Key points:

  1. Any contract services requirement valued at $1 million or more requires SRRB approval before a procurement request goes to a contracting officer.
  2. The FY27 cost benchmark for a single full-time equivalent (FTE) contractor is set at $197,600. Any proposal for contractor support must show value within that figure.
  3. Before obligating funds for contract services growth above FY26 levels, commands must coordinate with HQMC Programs and Resources (P&R) to ensure compliance with Office of the Secretary of Defense limits.
  4. MARFORRES must consolidate SRRB submission results for subordinate commands and designate a contract services point of contact.

Several categories of services are exempt from the SRRB requirement, including contracts under $1 million, construction, R&D, utilities, contingency operations support, and NMCI/Global Installation Contract (GIC) services.

Key dates

  • Effective FY27 (beginning 1 October 2026): All guidance applies now.
  • No submission deadline is stated in this message. Contact the POCs below for specific timelines.

The official version

Source: MARADMIN 515/26

Referenced policy includes DoD Instruction 5000.74 (contract services acquisition) and Executive Order 14222 (DOGE cost efficiency initiative). Contact POCs for additional guidance:

  • LtCol Michael Griner, HQMC: michael.s.griner@usmc.mil / 703-692-5506
  • Robert Naftal, HQMC: robert.naftal@usmc.mil / 703-571-6317
  • Carlton Hensley, MCSC: carlton.hensley@usmc.mil / 703-432-3899

This is written by a reservist, for reservists. It is not an official publication of HQMC or MARFORRES. Always verify guidance with your command or unit S-1 before acting on any article or summary.

Resources & references

The documents this bulletin points to, with a plain-English note on why each matters. Links marked CAC required need a government login.

  • Defense Acquisition of Services instruction (DODI 5000.74)Reference

    This is the foundational DoD instruction governing how contract service requirements must be vetted through the SRRB process. The MARADMIN cites it as the authority requiring service requirements to go through SRRB review before being handed to a contracting officer.

  • SECNAVINST 5000.2G Enclosure (8)Reference

    This is the Navy Secretary's acquisition instruction, specifically enclosure 8, which provides Department of the Navy-level policy context for the service acquisition and SRRB requirements discussed in this MARADMIN.

  • DASN (P) Memo: Additional DON Implementation Guidance for Defense Acquisition of ServicesReference

    This memo from the Deputy Assistant Secretary of the Navy for Procurement provides additional Navy-specific implementation guidance for acquiring services, supplementing the broader DoD instruction.

  • Marine Corps Business Council CharterReference

    This charter governs the Marine Corps Business Council, which is part of the governance structure overseeing service requirements and SRRB processes referenced in this MARADMIN.

  • DoD Financial Management Regulation Volume 2B, Chapter 19Reference

    This chapter of the DoD financial management regulation covers budget and financial rules relevant to contract services, providing the fiscal framework commands must follow when projecting and justifying service contract costs.

  • DON FY2026 Budget Estimates, OMMC Volume II Data BookReference

    This Department of the Navy budget document provides financial data relevant to service contract planning and cost benchmarking referenced in this MARADMIN.

  • Executive Order 14222: Implementing the President's DOGE Cost Efficiency InitiativeReference

    This executive order established the Department of Government Efficiency cost efficiency initiative. All current and future contracting requirements must comply with it, per this MARADMIN.

  • SecDef Memo: Implementation of EO 14222 - DOGE Cost Efficiency InitiativeReference

    This Secretary of Defense memo implements EO 14222 across DoD. All Marine Corps contracting requirements must comply with it under this MARADMIN's guidance.

  • SecDef Memo: Implementation of EO 14222 - DOGE Cost Efficiency Initiative Contract GuidanceReference

    This separate SecDef memo provides specific contract guidance flowing from EO 14222. All current and future contracting requirements must comply with it per this MARADMIN.

  • USD(A&S) Memo: Implementation of DOGE Cost Efficiency InitiativeReference

    This memo from the Under Secretary of Defense for Acquisition and Sustainment implements the DOGE cost efficiency initiative at the acquisition level. Contracting requirements must comply with it under this MARADMIN.

  • DASN (M&RA) Memo: DON Insourcing Guidance for Contracted ServicesReference

    This memo establishes Navy insourcing guidance and sets the FY27 benchmark cost of $197,600 per contractor FTE cited in this MARADMIN. Commands must use the least costly mix of military, civilian, and contractor personnel consistent with this guidance.

  • DASN (RD&A) Memo: Additional DON Implementation Guidance for Defense Acquisition of ServicesReference

    This memo from the Deputy Assistant Secretary of the Navy for Research, Development, and Acquisition provides additional implementation guidance for defense acquisition of services that commands must follow.

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