Cost_Formula-reward_average_cost_for_RFP.docx

This is a cost formula document supporting a Request for Proposal issued by the City of New Haven, Connecticut, Department of Elderly Services for daily transportation services to senior citizens. The procurement seeks contractors to operate three buses serving approximately 35-50 ambulatory riders and 15 special needs riders daily, with additional capacity for special citywide trips accommodating up to 238 ambulatory and 26 special needs riders. Service requirements include morning drop-off by 9:30 a.m. and afternoon pickup at 3:00 p.m., with maximum one-way ride duration of 30 minutes. Vehicles must accommodate walkers, wheelchairs, and scooters and meet Connecticut State safety standards. Drivers must be bonded with documented experience serving elderly and special needs populations. The initial contract term is one year with two optional one-year renewal periods subject to the Purchasing Agent's approval. Questions must be submitted by March 11, 2026, at 5:00 p.m., and proposals are due electronically by March 24, 2026, at 11:00 a.m.

The RFP evaluates proposals using pass/fail compliance and safety criteria, technical and operational capability weighted at 60 percent, and cost proposal weighted at 40 percent. Cost scoring employs a "Reward Low Cost" methodology where the lowest proposal receives maximum points and competing proposals receive proportional points based on a cost ratio formula (lowest cost divided by proposal cost equals percentage of available points). Pricing must include transparent daily per-bus rates and itemized special trip pricing covering all costs for labor, permits, licenses, equipment, fuel, tolls, and parking fees. The contract incorporates American Rescue Plan Act funding from the State and Local Fiscal Recovery Fund program with all expenditures required between March 3, 2021, and December 31, 2026, and indirect costs capped at 10 percent of the total awarded amount. Contractors must comply with prevailing wage standards, nondiscrimination requirements, federal regulations including 2 CFR Part 200 Uniform Guidance, and register with SAM.gov. Insurance requirements include general liability ($1 million per occurrence/$2 million aggregate), auto liability ($5 million combined single limit), and excess/umbrella liability ($20 million), with the City named as additional insured. The City reserves the right to reject all proposals or terminate the agreement upon twenty-one days' written notice.