Cost_Formula-reward_average_cost_for_RFP.docx

This file is an instructional document explaining cost formula methodologies used in RFP scoring, specifically addressing the "Reward Low Cost" and "Reward Average Cost" evaluation approaches that may be applied to the City of New Haven's redevelopment proposal for the former Quinnipiac Real World STEM School site. The document details how the Reward Low Cost formula calculates point allocations by dividing the lowest proposal cost by each individual proposal's cost to determine the percentage of available points awarded, with proposals demonstrating progressively lower scores as their costs increase relative to the lowest bid. This scoring methodology would be used to evaluate the financial proposals submitted by respondents in connection with the adaptive reuse or redevelopment of the 2.5-acre, 29,771 square foot property located at 460 Lexington Avenue, 805 Quinnipiac Avenue, and 3-5 Runo Terrace in New Haven's Fair Haven Heights neighborhood, with proposals due by January 20, 2026.

The cost formula methodology outlined in this file establishes the framework for how financial considerations will factor into the overall evaluation of respondent qualifications and project viability. Under this approach, respondents submitting lower-cost proposals receive proportionally higher scores within the cost evaluation category, incentivizing cost-effective solutions while maintaining the city's ability to assess proposals on multiple evaluation criteria including design quality, financing strategy, market viability, community engagement, and alignment with New Haven's legislative priorities of job creation, public safety, affordable housing, and health equity advancement. The application of this formula ensures transparent and objective cost-based scoring regardless of the total number of submissions or the absolute dollar amounts proposed.