In 1968, Libutti returned to Quantico for duty at the Officer Candidates School, serving consecutively as Chief Instructor, Tactics Section, as well as Commanding Officer and Branch Head, Academic Section. He was promoted to captain in November 1969 attended the Amphibious Warfare School. In 1972, Libutti transferred to Amphibious Squadron Three in San Diego, California for duty as Squadron Combat Cargo Officer. In 1974, he was assigned to 1st Battalion 2nd Marines at Marine Corps Base Camp Lejeune, North Carolina, as an Infantry Company Commander for 14 months, followed by staff positions such as Logistics Officer and Operations Officer.