Cost_Formula-reward_average_cost_for_RFP.docx

This file is a reference document explaining cost formula methodologies used in proposal evaluation, applicable to the New Haven Public Schools' Kitchen Fire Suppression contract opportunity in Connecticut. The document outlines two primary scoring methods—Reward Average Cost and Reward Low Cost—that calculate point values based on submitted proposal costs. The Reward Low Cost method, the primary focus, uses a formula that divides the lowest overall cost by each individual proposal's cost to determine the percentage of available points awarded. For example, if the lowest proposal costs $100 and a competing proposal costs $200, that proposal receives 50 percent of the available points. This methodology ensures that proposals are evaluated on a relative cost basis, with the lowest-cost submission receiving the maximum points available for the cost evaluation component.

The Kitchen Fire Suppression contract opportunity seeks qualified contractors to provide testing, inspection, preventive maintenance, on-call repairs, and emergency services for New Haven Public Schools facilities. The procurement requires submission of regular and overtime hourly wage rates along with a percentage markup over original material invoices. Preventive inspections must be conducted on a semi-annual basis. The cost formula methodology described in the reference document will be used to evaluate and score the cost proposals submitted in response to this opportunity, with scoring directly proportional to the competitiveness of each contractor's pricing relative to other submissions.