Cost_Formula-reward_average_cost_for_RFP.docx

This document is an explanatory guide regarding cost formulas used in scoring methodologies for Requests for Proposals (RFPs), specifically detailing the "Reward Low Cost" and "Reward Average Cost" evaluation methods. The guide is relevant to the City of New Haven's Office of Violence Prevention RFP for employment and housing interventions to address community violence and firearm-related injury prevention in Connecticut. The document does not specify quantities, response dates, due dates, site visits, bidder meetings, award dates, or contract terms, as it functions as instructional material rather than a formal solicitation document.

The "Reward Low Cost" methodology calculates point awards by dividing the lowest proposal cost by each individual proposal's cost to determine the percentage of available points to be awarded. For example, if the maximum points available are 30 and the lowest cost proposal is $100, a proposal costing $100 receives 30 points, a proposal costing $200 receives 15 points, and a proposal costing $500 receives 6 points. This formula ensures that proposals with lower costs receive higher point values proportionally. The document does not address pricing terms, set-asides, incumbent information, funding amounts, or other contract-specific requirements, indicating it serves as a reference guide for understanding how cost-based scoring operates within the broader RFP evaluation framework.