Cost_Formula-reward_average_cost_for_RFP.docx

This document is an instructional file explaining cost formula scoring methodologies for the City of New Haven, Connecticut's Citywide Payment Modernization RFP. The RFP seeks a comprehensive, unified payment ecosystem to replace fragmented department-specific payment systems, with required capabilities including mobile wireless payment acceptance via handheld devices, digital wallet support (Apple Pay, Google Pay, PayPal, Venmo, and preferably Zelle and Cash App), ACH transfers, wire transfers, credit card processing, text-to-pay functionality, and mandatory integration with the city's Tyler Technologies Munis ERP system. The RFP was released on December 2, 2025, with written questions due by December 22, 2025, at 5:00 PM, and proposal submissions required by January 6, 2026, at 11:00 AM through the City's eProcurement Portal. The contract term consists of one initial year with two optional one-year extensions subject to the Purchasing Agent's approval.

The RFP establishes a maximum universal transaction fee cap of 2.5% or less, with all backend costs (processor fees, gateway fees, network assessments, software licensing, hosting, PCI compliance, and tokenization services) required to be included within this fee structure. The City will reject proposals containing hidden fees, tiered pricing models, minimum volume penalties, setup fees, or equipment rental charges. Evaluation criteria are weighted at 30% financial compliance, 30% ERP integration and treasury control capabilities, 20% technical functionality, and 20% security and municipal experience. Vendors must provide proof of PCI DSS Level 1 and SOC 2 Type II certification and demonstrate live production-level Munis integration in at least three municipalities. The document excerpt illustrates the Reward Low Cost scoring formula, where the lowest proposal cost is divided by each individual proposal cost and multiplied by the maximum available points to determine financial scoring.