Cost_Formula-reward_average_cost_for_RFP.docx

This is a cost formula reference document related to a transportation and elderly services contract opportunity with the City of New Haven, Connecticut, Department of Elderly Services. The City seeks proposals to provide daily transportation for ambulatory and special needs senior citizens to and from three senior centers, as well as coordinate city-wide special trips throughout the year.

The document outlines the "Reward Low Cost" scoring methodology used to evaluate proposals based on cost submissions. Under this formula, the lowest overall cost proposal receives the maximum points available, while other proposals receive points proportionally based on the ratio of the lowest cost to their submitted cost. For example, a proposal costing twice the lowest bid would receive 50 percent of available points, while a proposal costing five times the lowest would receive 20 percent of available points. This scoring approach is used to calculate point values that factor cost competitiveness into the overall proposal evaluation and award determination.