JEFO Arbinger_Redacted.pdf

DEPARTMENT OF THE NAVY

PORTSMOUTH NAVAL SHIPYARD

PORTSMOUTH NH 03804-5000 IN REPLY REFER TO:

J&A No. PL-2416

Ser 400/013 DATE: August 5, 2026

Justification for an Exception to Fair Opportunity (JEFO) Under IDIQ Contract

47QREB19D0011

1. Contracting Activity.

The Naval Sea Systems Command Contracting Division (Code 410), Portsmouth Naval Shipyard (PNS), Kittery, ME.

2. Description of the Action Being Approved.

This justification approves a sole-source task order to The Arbinger Company (Arbinger) under their General Services Administration (GSA) Human Capital and Training Solutions (HCaTS) Small Business (SB) Pool 1 Contract 47QREB19D0011 for proprietary "Outward Mindset" training, leadership development, and related materials.

3. Description of Supplies/Services.

PNS intends to acquire Outward Mindset Training services and related course materials from Arbinger for a base year and four one-year option periods, with a total estimated value of

. The requirement falls under NAICS code 611430 (Professional and Management Development Training Services) and PSC U008 (Training/Curriculum Development). This is a follow-on to Task Order N3904024F0009.

The goal is to enhance leadership capabilities, improve command-wide collaboration, and instill a culture of individual accountability. The scope includes on-site instructor-led workshops, leadership coaching, proprietary course materials, and a Train-the-Trainer (TTT) program to build an organic, in-house sustainment capability.

Arbinger will provide Outward Mindset training that goes beyond behavior change and focuses on the mindset that influences behavior change. This will include on-site instructor-led services and all related course material. The content will be appropriate for all levels of the workforce with specific training for leaders. This will include services in the form of Leader Sustainment Training and facility site visits to assess the program’s development, in-person train-the-trainer courses to train PNSY facilitators for program sustainment, sustainment content, or a program to reinforce the Outward Mindset methodologies. Classroom facilities for Outward Application Training and Outward Performance will be provided by PNS, to include space and logistical items relevant to the presentation, including VGA/HDMI capable projector, screen, flip chart, markers, seating, tables, and a sound system or speakers suitable for participants and venue. For sessions that will be held off-yard (e.g. The Best Western or Holiday Inn) Arbinger will provide the facilities and resources.

4. Statutory Authority Permitting the Exception to Fair Opportunity.

The authority for this action is 10 U.S.C. 3406(c) and Federal Acquisition Regulation (FAR) 16.507-6(b)(2), as implemented by the Revolutionary FAR Overhaul, which states that an exception to the fair opportunity process is justified when “Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

5. Rationale Justifying Use of Cited Statutory Authority.

This requirement is for a unique and highly specialized service that can only be provided by Arbinger. The rationale is based on three interconnected factors: (a) the proprietary nature of the required intellectual property; (b) the necessity for continuity with a significant, multi-year command investment; and (c) the vendor’s exclusive authority to provide the required certifications for our in-sourcing and cost-avoidance strategy.

a. Continuity of a Significant Command Investment: Since 2020, the Navy has made a substantial investment to embed the "Outward Mindset" framework and its specific terminology across its industrial enterprise. Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility has successfully deployed these programs to their entire workforce, resulting in impactful cultural change and enhanced performance. Following this success, Portsmouth Naval Shipyard initiated its own program, investing approximately through a series of contracts, including the initial task order N3904022F0017 (awarded December 15, 2021) and the executive coaching contract N3904023P0082 (awarded February 2023). Through these efforts, PNS has provided Arbinger training to its Senior Leadership Team, Deputy Leadership Team, Superintendents, the USS Cheyenne Project Team, and over 25% of the total workforce, to include leadership and working level. Switching to a different, non-proprietary training program at this juncture would fracture this established common language, create organizational confusion, and waste the significant government investment already made.

b. Exclusive Certification Authority (In-Sourcing Mandate): A critical component of this acquisition is the Train-the-Trainer (TTT) program, which is designed to create a self-sustaining, in-house cadre of Navy civilian facilitators and directly supports the permanent compliance guideline to in-source services.

This TTT program is not a new effort, but the direct continuation and completion of a program that was halted prematurely when the predecessor task order (N3904024F0009) was terminated for convenience. That action left PNSY with a significant and partially trained facilitator cadre:

only three (3) of the original ten (10) facilitators for 'Developing and Implementing an Outward Mindset' (DIOM) are currently facilitating, zero (0) facilitators were trained and observed for 'Outward Leadership,' and only 80 of the required 160 facilitators were trained and observed for the shipyard-wide 'Outward Performance' curriculum. Employees are required to complete the TTT for each course and demonstrate they are capable of doing through observation both in the

TTT sessions and afterward. While the Navy wants to build an internal team of facilitators to deliver workshops independently, no Navy civilian employees hold "Master Trainer" credentials.

Master Facilitators are Arbinger employees who go through a rigorous training and evaluation program and are the only ones authorized to teach a TTT. Because Navy employees cannot certify other Navy employees, only Arbinger’s Master Trainers can run the certification and observation phases. Arbinger is the sole owner of the intellectual property and the sole entity authorized to finish the certification process that was interrupted. No other vendor on the HCaTS contract vehicle can conduct the necessary observation, provide the "runtime" feedback, and grant the final certifications to the existing pool of partially trained candidates. Therefore, returning to Arbinger is the only available path for the government to complete the TTT program and achieve its essential cost-avoidance and in-sourcing objectives.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

The Government has performed comprehensive market research for both this follow-on requirement and the predecessor contract. These efforts consistently confirm the proprietary nature of the "Outward Mindset" curriculum and Arbinger’s position as the sole provider.

2024 Predecessor Contract Market Research: For the original Task Order (N3904024F0009), market research was conducted to identify vendors capable of providing mindset and culture-related training. While that research identified other vendors offering general leadership training, it concluded that each vendor’s curriculum was unique and that no other source could replicate or provide the specific, proprietary "Outward Mindset" training methodology required by the command. This finding was documented in the Limited Sources Justification (LSJ) for that award.

2026 Follow-On Market Research: A Request for Information/Sources Sought notice RFI1816245 was posted on GSA eBuy under the for this requirement on 6/7/2026 to establish if the market had changed regarding companies having the ability to now provide the Outward Mindset training to align with the current curriculum and ensure continuity in training and development across PNS. The announcement closed on June 15, 2026, and only one vendor provided a capability statement. The only response indicating capability was from Arbinger, confirming their status as the sole provider within the HCaTS contract vehicle.

7.Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this JEFO will be fair and reasonable.

8. Action to Remove Barriers to Future Competition.

The Government’s long-term strategy is to eliminate the proprietary barriers that necessitate this sole-source action. This acquisition is the primary mechanism to achieve that goal. By funding the Train-the-Trainer (TTT) program, PNSY is actively building a permanent, organic cadre of Navy civilian facilitators. Once this internal capability is established, the command will be able to sustain the program using government personnel, reducing the need for future contractor support for facilitation.