Cost_Formula-reward_average_cost_for_RFP.docx

This is a Cost Formula document related to a Request for Proposals issued by the City of New Haven and Board of Education Food Service for Direct Commodity Purchases supporting the New Haven Public Schools Child Nutrition Program. The RFP solicits Commercial and Commodity food items shipped directly from manufacturers for the 2026 summer year and 2026-2027 school year. The program operates approximately 224 service days annually and serves between 17,500 and 19,000 meals per day across the New Haven Public Schools system. The cost formula document establishes the methodology for calculating reward pricing based on average costs for awarded vendors, enabling transparent and competitive pricing mechanisms throughout the contract period.

The cost formula utilizes a reward-based structure that ties vendor compensation to average cost calculations, creating incentive alignment between the Board of Education and suppliers. This approach establishes baseline pricing benchmarks while allowing flexibility in cost adjustments based on documented average expenses. The formula methodology ensures competitive pricing for commodity items while maintaining budget predictability for the school district's food service operations. This pricing structure is designed to optimize procurement efficiency and cost control for the substantial meal volume required across the New Haven Public Schools system during both the summer and regular school year periods.