DODI 5000.74 Enclosure 4: Key Services Acquisition Management Roles and Responsibilities


This section describes roles and responsibilities applicable to SSMs, PMs, and FSMs.


The acquisition authority chain of command for services acquisitions runs upward from the PM or FSM to the designated decision authority for the S-CAT and ends with the Service or Component Acquisition Executive. For all special interest requirements, and S-CAT I acquisitions outside of the Military Departments, the USD(AT&L) or designee is the decision authority in the acquisition chain of command. Staff and other organizations and stakeholders provide support to this program management chain of command, which is responsible for the execution of the services acquisition.

a. Service Acquisition Executives (SAEs). The SAE of each Military Department under the authority, direction, and control of the Secretaries of each Military Department, will be the senior official responsible for the management of acquisition of contracted services for and on behalf of the Military Department, with further delegation to the senior procurement executives.

b. Component Acquisition Executives (CAEs). The CAE of each DoD Component under the authority, direction, and control of each Component head, will be the senior official responsible for the management of acquisition of contracted services for and on behalf of his or her respective Component. Each CAE will exercise decision authority as delegated from the agency head or from the USD(AT&L).

3. SSMs

SSMs are the services acquisition experts and decision authorities under the authority, direction, and control of the Secretaries of each Military Department or their Component head, responsible for the planning, strategic sourcing, execution, and management of acquisitions of contracted services. SSMs establish appropriate management structures and processes to ensure effective implementation and execution of the acquisition of services using this instruction. SSMs and their designated decision authorities across the service categories outlined at Table 1, should identify, forecast, and track pending requirements. Specifically, SSMs will work with their portfolio-specific commodity managers (PSCMs) and requiring organization leadership to:

a. Develop processes for the effective management, planning, and execution of services acquisitions within their Military Department or Component.

b. Develop processes to implement Services Requirements Review Boards (SRRBs) ensuring requirements are reviewed, validated, and approved, verifying need and appropriate level of service. This is a critically important process that supports minimum service needs and prioritizes service requirements to identify opportunities and efficiencies. Savings may be realized through reduction in service delivery levels, outright cancellation to bring service requirements in-house in accordance with section 2463 of Reference (h), or elimination of the service altogether to fund higher-priority service requirements.

c. Identify opportunities for strategic sourcing to reduce contract duplication, increase socioeconomic participation, and increase overall acquisition efficiencies.

d. Develop services forecasting tools to predict requirement renewals and new requirements to support early acquisition planning, budget development, and requirements approval.

e. Support acquisition strategy and peer review process for contracted services acquisitions of $1 billion or more ($500 million for non-competitive acquisitions).

f. As needed, review, develop, and use data and metrics to support strategic management decisions and documenting business trends and costs in the acquisition of services.

g. Strategically manage each portfolio group with their respective CLLs by sharing DoD Component processes, metrics, best practices, lessons-learned, and data to achieve the efficient and effective execution of service contract requirements within that portfolio.

h. Support various reporting requirements as outlined in Enclosure 6.

i. Support training and development of the acquisition workforce tasked to support the acquisition of services.

j. Appoint PSCMs who support the efforts of the SSMs and requiring activities to ensure effective management for services acquisitions within a specific portfolio, pursuant to section 2330(a)(3)(c) of Reference (h). PSCMs will serve as staff assistants to the SSM with responsibility to:

(1) Assist requiring activities and contracting activities to effectively and efficiently fulfill user requirements for the acquisition of services.

(2) Coordinate within their respective organizations and across DoD to identify services acquisitions within assigned portfolios.

(3) Research and recommend opportunities to improve efficiency and productivity within their assigned portfolios.

(4) Compile government and industry performance results, best practices, lessons learned, and market research for the acquisition of services.

(5) Assist requiring activities by distributing tools and templates to improve the development of services acquisition requirements and associated documentation. Samples of such tools and templates are available at the DAU Service Acquisition Mall website at and include the Acquisition Requirements Roadmap Tool (ARRT).

(6) Conduct periodic analysis of the Department’s spending to gain insight and enable fact-based strategic decisions pertaining to services acquisition. PSCMs use services acquisitions data to identify active services acquisitions within their assigned portfolios. The PSCM should participate in peer reviews and other reviews of services acquisitions.

(7) Ensure “should cost” is applied to portfolio services acquisitions.

4. PM or FSM

The PM or FSM exercises discretion and uses prudent business judgment to manage risk and structure a tailored, responsive, and efficient services acquisition program. To achieve this, the PM or FSM should lead the multi-functional team through the Seven Steps to the Service Acquisition Process, as described in the Defense Acquisition Guidebook (Reference (n)), to ensure that the best source is selected to meet mission needs and that an effective performance management process is in place to guarantee the effective and timely delivery of services and achievement of “should cost” goals.

a. Decision authority or designee, as outlined in Table 1, will ensure that qualified acquisition PMs or FSMs oversee planning and execution of individual service requirements with a total estimated contract value of $100 million or more. The decision authority will determine the need for a certified PM based on the risk or complexity of the acquisition. Certified PMs will be trained in accordance with sections 1701-1764 of Reference (h).

b. Decision authority or designee, as outlined in Table 1, will ensure that qualified PMs or FSMs are appointed to oversee individual service requirements valued at less than $100 million. In the absence of a certified PM, an FSM with domain expertise for a given service requirement will exercise program management responsibilities. FSMs are vital to the effective management and execution of service requirements below $100 million. FSMs should have in-depth knowledge of the requirement being considered for contractor support. This will include at least 2 years’ experience managing, supporting, or leading contractor or government performance of work of the same scope and nature as the proposed requirement.

c. The PM or FSM will be the lead for developing, coordinating, and resourcing the requirement and overseeing it throughout the acquisition process. Consistent with this instruction, the cognizant PM or FSM exercises discretion and prudent business judgment to structure a tailored, responsive, and efficient services acquisition program.

d. The PM or FSM leading the multifunctional team (MFT) should use the Seven Steps to the Service Acquisition Process (with any appropriate tailoring) located under the Service Acquisition Mall tab at and as described in Reference (n).

e. The PM, FSM, or other personnel assigned to lead the MFT should understand the costs that are related to the services that their respective component is acquiring and establish “should cost” expectations. The representative must apply an accurate IGCE outlining these discrete costs within the overall service requirement, coupled with effective market research and a thorough screening of the requirement against the anticipated costs of the proposed services to ensure an effective trade-off is made during the SRRB process between mission needs, cost, and affordability. This ensures that only the highest-priority services describing well-defined mission requirements will be approved for acquisition.

f. Costs of labor skill mix and categories, service levels, frequency of performance, and dictated quality levels should be considered when developing a requirement to meet mission needs. Discrete costs of that next level of service, or next-higher labor category, must be weighed against mission needs and budget constraints to ensure that the service to be acquired represents the best value to the government and meets mission requirements.

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