Cost_Formula-reward_average_cost_for_RFP.docx

This is a cost formula guidance document related to a Request for Proposals issued by the City of New Haven and the Board of Education in Connecticut for Third Party Administrator Services for Liability Claims. The RFP seeks qualified providers to handle liability claims administration, including General Liability, Automobile Liability, Law Enforcement Liability, Public Official Liability, School Board Legal Liability, and Employment Practices Liability. The selected provider will be responsible for claim intake, investigation, evaluation, reserving, and resolution in accordance with applicable laws and established claims handling standards. Services will include coordination with the City's Corporation Counsel, timely claim acknowledgments, and compliance with excess and regulatory reporting requirements. The contract term covers all claims arising under policies effective from July 1, 2026, through June 30, 2027.

The document explains the cost formula methodology used to score proposals under the "Reward Low Cost" evaluation approach. This scoring method calculates point awards by dividing the lowest overall proposal cost by each individual proposal's cost to determine the percentage of available points to be awarded. For example, if the lowest cost proposal is $100 and a competing proposal costs $200, that proposal receives 50 percent of the allocated cost points. The formula ensures that cost-conscious proposals receive higher scores while maintaining a transparent and objective evaluation process for comparing vendor pricing across all submissions.