Cost_Formula-reward_average_cost_for_RFP.docx

This document provides instructional guidance on cost formula methodologies used in evaluation scoring, specifically the "Reward Low Cost" approach, as applied to the New Haven Fire Department's promotional exam consultant procurement in Connecticut. The document outlines how cost-based scoring allocates points by comparing each proposal's cost against the lowest submitted cost. The New Haven Fire Department seeks a qualified professional consultant to develop, validate, administer, and score promotional exam processes for Fire Officer ranks, incorporating industry best practices in pre-employment testing. The consultant's recommended processes must meet all legal requirements, comply with Federal EEOC guidelines, and demonstrate cost-effectiveness.

The cost formula example demonstrates the point allocation mechanism: the lowest proposal receives the maximum points available (30 points in the example), while higher-cost proposals receive proportionally fewer points based on the ratio of the lowest cost to their individual costs. Proposal A at $100 receives 30 points (100%), Proposal B at $200 receives 15 points (50%), and Proposal C at $500 receives 6 points (20%). This methodology ensures that cost competitiveness directly influences the evaluation outcome, incentivizing bidders to submit economically efficient proposals while maintaining the evaluation structure's fairness and transparency.