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RUMINT has it the Corps is looking for it as a replacement for the M4s (without all the red tape), not the SAW.

Quote: Like the SAW, each IAR finalist is built for 5.56mm ammunition. Unlike the SAW, they are not designed to operate with a 200-round drum, a point of contention for some Marines concerned about a loss of firepower. The IAR is designed to use the same 30-round magazine used with the M16, although industry, including FN Herstal, is also developing high-capacity 5.56mm magazines for the weapon that could hold 100 or 150 rounds.

Source: Marine Corps Times article *here*

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The IAR is designed to use the same 30-round magazine used with the M16, although industry, including FN Herstal, is also developing high-capacity 5.56mm magazines for the weapon that could hold 100 or 150 rounds.