Cost_Formula-reward_average_cost_for_RFP.docx

This document provides educational guidance on cost formula scoring methodologies used in the City of New Haven's Request for Proposals for Parking Enforcement Citation Software and Equipment in Connecticut. The file explains how the "Reward Low Cost" and "Reward Average Cost" scoring methods calculate point allocations based on proposal costs relative to the lowest or average submitted cost. These formulas determine the percentage of available points each proposal receives, with the lowest-cost proposal receiving the maximum points and other proposals receiving proportionally fewer points based on their cost ratio to the benchmark cost.

The document illustrates the Reward Low Cost formula through three example proposals with costs of $100, $200, and $500, demonstrating how each proposal receives points as a percentage of the maximum available points (30 points in the example). This scoring approach incentivizes cost competitiveness while maintaining objectivity in the evaluation process. The methodology is applicable to the City of New Haven's procurement for a complete turnkey parking citation system, which includes software, hardware, technical support, data processing, collection services, residential parking permit tracking, installation, implementation, training, and ongoing operational support.