Cost_Formula-reward_average_cost_for_RFP.docx

This is a cost formula reference document related to the City of New Haven, Connecticut Department of Arts & Culture's Citywide Arts & Cultural Events and Pop-Up Markets Grant Program. The document explains scoring methodologies used to evaluate proposals, specifically detailing the "Reward Low Cost" formula, which calculates point allocations based on the relationship between the lowest submitted cost and individual proposal costs. The Reward Low Cost method divides the lowest overall cost by each proposal's cost to determine what percentage of available points should be awarded, with the example demonstrating how a proposal matching the lowest cost receives 100 percent of points while progressively higher-cost proposals receive proportionally fewer points.

The document provides illustrative examples showing how this cost formula functions in practice: a $100 proposal receives the maximum 30 points, a $200 proposal receives 15 points (50 percent of the possible allocation), and a $500 proposal receives 6 points (20 percent of the possible allocation). This scoring mechanism is employed to incentivize cost-effective proposals while maintaining a transparent, mathematically-based evaluation process. The Reward Low Cost approach is one of several available scoring methodologies for evaluating submissions, with Reward Average Cost representing an alternative cost-based scoring method that functions similarly but utilizes average costs rather than the lowest cost as the baseline comparison metric.