Cost_Formula-reward_average_cost_for_RFP.docx

This is an instructional document on cost formula scoring methodology used in government procurement evaluations, specifically demonstrating how the "Reward Low Cost" scoring method calculates point allocations for the City of New Haven's Request for Proposal for the adaptive reuse and redevelopment of the former West Rock STREAM Academy located at 311 Valley Street in New Haven, Connecticut. The RFP seeks comprehensive proposals for transforming the 4.6-acre property, which includes a 33,605-square-foot vacant commercial building and two portable classrooms, into a vibrant community-serving asset aligned with the City's legislative priorities of job creation, public safety enhancement, quality housing development, health equity advancement, and environmental justice. The City will evaluate proposals based on scientific and technological merit, technical approach, and technical management capabilities using a numerical rating system. Proposals are due by January 20, 2026, with the RFP officially posted on November 30, 2025, through the City of New Haven's procurement web portal. The City will consider both long-term lease and sale options, with a preference for proposals presenting a unified vision and single lead developer.

The cost evaluation methodology employs a formula where the lowest overall cost is divided by each proposal's cost to determine the percentage of available points awarded, with points allocated proportionally based on cost competitiveness relative to the lowest bidder. The property carries a City assessment of $4,630,990 and an appraisal of $6,615,700. A Phase I Environmental Site Assessment has identified potential environmental concerns, including an abandoned underground heating oil storage tank and potential asbestos-containing materials that developers must address. The selected respondent must demonstrate exceptional design capabilities, a sound financing strategy, market viability, and the capacity to secure necessary public approvals while demonstrating commitment to community and stakeholder involvement throughout project delivery.