The term is beginning to find some usage amongst the civilian population as well, usually after someone has volunteered him or herself to do something, only to have it turn into a giant pain in the ass that you can't get out of.
Regardless of the particular context, the term is always used while bitching about something.
Steven: Navy, dude. Navy.
Johnny: Yup. Navy.
You also sometimes hear it as a direct substitute for words like shitty, sucks, bullshit, etc.
Example: Johnny: This is so fucking Navy!!
Marine 2: Gotta love those Navy doctors. They save Marines' lives.
Marine 3: Well boys, we gotta go half way around the world to fight. Let's call the Navy to get us there.