R 261932Z APR 23 MID120000008160U
FM CNO WASHINGTON DC
INFO CNO WASHINGTON DC
MSGID/GENADMIN/CNO WASHINGTON DC/N8/APRIL//
SUBJ/UNITED STATES NAVY CONTRACT SERVICES GUIDANCE FOR FISCAL YEAR (FY)
NARR/REF A IS DEPARTMENT OF DEFENSE INSTRUCTION 5000.74.
REF B IS SECNAVINST 5000.2G ENCLOSURE (8).
REF C IS DEPARTMENT OF THE NAVY SENIOR SERVICES MANAGER POLICY MEMORANDUM.//
POC/ANGELA TENNYSON/CIV/OPNAV/LOC: WASHINGTON DC/TEL: 240-925-4245/EMAIL:
POC/JOHN NORTH/CIV/USFF/LOC: NORFOLK, VA/TEL: 757-836-9508/EMAIL:
POC/KATHY ATOIGUE/CIV/UNIT: USPACFLT/LOC: PEARL HARBOR, HI/808-474-6414/
GENTEXT/REMARKS/1. Purpose. This NAVADMIN updates Service Requirements
Review Board (SRRB) policy and provides SRRB guidance for the remainder of
Fiscal Year (FY) 2023 and looking ahead to FY 2024.
2.a. The Department of the Navy (DON) had approximately $49.7 billion
contractual services obligations in FY 2022 which accounts for approximately
23% of the Navy's Total Obligation Authority. The acquisition of services is
a Command responsibility. DON commanders are responsible for the
appropriate, efficient, and effective acquisition of services in their
2.b. The SRRB process shall 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
shall be vetted through an SRRB process as early in the services acquisition
process as practical, but before the development of an acquisition strategy
and before a procurement request package is transferred over to a contracting
officer for execution.
2.c. Requirement reviews shall include, but not be limited by, the following
2.c.1. Mission Need. Explanation of the mission need for the requirement
and the outcomes to be achieved from acquiring services.
2.c.2. Strategic Alignment. How the requirement for services supports the
broader organizational mission.
2.c.3. Issues and Risks. Both government and contractor issues and risks
impacting the successful execution of fulfilling the requirement.
2.c.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. The analysis shall take into
consideration OPNAVINST 1000.16L, Change 3 or succeeding document, "Navy
Total Force Manpower Policies and Procedures."
2.c.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.c.6. 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
2.c.7. Contract Functions. A review and identification of contract and work
functions that may be prohibited or require heightened management attention,
including, but not limited to inherently governmental Services, personal
services, closely associated with inherently governmental functions and
2.c.8. Metrics/Tripwires. Performance management metrics and tripwires
shall be considered to the maximum extent practicable during the SRRB review
and approval process.
2.c.9. Product and Service Code (PSC) and Object Class Code (OCC). Correct
PSCs and OCCs are required and reported at the Contract Line Item Number
level. PSCs and OCCs are essential for spend and budget analysis, and as
such, all personnel shall ensure the accuracy of PSCs and OCCs in both
contracting and accounting systems.
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 of the command's threshold or at $1 million or above
(including pre-priced contract options) require SRRBs with the following
3.a. Services listed in Subpart 37.502 of the FAR and services obtained
under contracts with a total value of less than the command's threshold or
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)
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 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") and Architecture and
Engineering - Construction (PSC Category "C1").
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). Reference (a) 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.
3.j. Foreign Military Sales
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 the extent of competition are reserved for
4.b. All headquarters staff and subordinate commands are required to conduct
SRRBs as a means of reviewing, validating, approving, and prioritizing all
applicable funded and unfunded services requirements with an estimated total
cumulative value at $1 million or above. Commands may have a lower threshold
than $1 million for SRRB review processes. This includes both base contracts
and resulting task orders. However, execution of pre-priced options do not
require additional SRRB approval.
4.c. The requiring activity is responsible for submitting service
requirements to the SRRB regardless of the source of funding.
4.d. Activities receiving funds from another command shall rely on the
originating command's SRRB validation; an additional SRRB review is not
4.e. SRRBs shall be cross-functional with representation from the requiring,
contracting, and financial management communities as they are available, and
chaired by a Flag Officer, General Officer, or Senior Executive Service
Member (FO/GO/SES). Contractual services requirements at or above $1 million
(or the Command threshold, whichever is lower) shall be approved via a SRRB
chaired by a FO/GO/SES, or, for activities that do not have a FO/GO/SES
member assigned, the first FO, GO, or SES member in the requiring activity's
chain of command. Chairmanship of SRRBs for contractual services
requirements below $10 million may be delegated in writing to the O-6 or GS-
5. SRRB Internal Controls.
5.a. SRRB approvals shall be documented by the SRRB Chair. Shall the SRRB
Chair require meeting minutes, action items, or recommendations, these shall
also be documented as directed by the SRRB Chair. Such documents shall also
be made available for review during Services Acquisition Reviews and Training
(SART) visits conducted by staff from the Office of the Deputy Assistant
Secretary of the Navy for Procurement (DASN(P)), which is responsible for DON
oversight of SRRB processes.
5.b. All Command staff and subordinate commands shall identify, document,
and implement appropriate internal control processes (usually a SRRB
identification number)to ensure that funding documents for contract service
requirements are not submitted to contracting officers without SRRB
5.c. Command Contractual Services Managers (CSMs) facilitate and help
oversee the processes for Services Acquisition including SRRBs. CSMs act as
an action officer on all matters related to contractual services within their
organization. At the direction of the SRRB Chair, CSMs help develop and
facilitate SRRB policies and procedures, document SRRB results, and conduct
oversight to ensure compliance.
5.d. SRRB results shall be submitted annually by 30 October to DASN(P)
Senior Services Manager IAW DASN(P) format. This calls for Echelon III and
below to submit their results to Echelon II NLT 15 October to allow adequate
time to meet the DASN(P) annual 30 October deadline.
5.e. IAW Command policy and no later than FY 2024, the SRRB Chair shall
certify that each contractual services requirement validated through the SRRB
process is in compliance with the standard guidelines found in the DoD
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 DoD civilian employees (without further
workforce analysis IAW paragraph 2.c.4.).
5.f. It is understood that the SRRB Chair is approving and certifying to the
contractual services requirement as the facts and analysis are known at the
time of SRRB review.
5.f. Rather than certifying each individual requirement, SRRB Chairs may
make a single certification for all SRRB contractual actions which have been
reviewed and approved during a single SRRB meeting or event. This may be
done through various ways, such as a cover page to SRRB meeting notes, quad
charts, or other SRRB approval documents.
6. Category Management. Commands shall employ management actions that align
with Category Management principles. Category Management refers to the
business practice of buying common goods and services as an enterprise to
help the DON eliminate redundancies, increase efficiency, and deliver more
value and savings from the government's acquisition programs. It requires
participation during all phases of the acquisition process, and includes
collection, sharing and analysis of data within and across commands,
employing cross-departmental teams, and identification and distribution of
best practices and lessons learned. The DON Category Management Program
Office at NAVSUP, working under the direction of DASN(P), is available to
assist with Command Category Management initiatives. They can be contacted
via email at DONCMPOSOLUTIONS@navy.mil.
7. Expect additional or updated guidance for FY 2024 SRRBs.
8. Released by direction Neil W. T. Hogg, SES, Assistant DCNO for
Integration of Capabilities and Resources (N8B).//