Cost_Formula-reward_average_cost_for_RFP.docx

This document is an instructional guide on cost formulas used in scoring methodologies for Request for Proposal (RFP) evaluations, specifically detailing the Reward Low Cost and Reward Average Cost scoring methods. The document explains how these formulas calculate point values for competing proposals by comparing individual submission costs against baseline costs. The guide provides practical examples demonstrating the Reward Low Cost methodology, wherein the lowest overall cost is divided by each proposal's cost to determine the percentage of available points awarded. For instance, a proposal matching the lowest cost of $100 receives 100% of available points (30 points), while proposals costing $200 and $500 receive proportionally lower scores of 15 and 6 points respectively. This scoring approach directly ties proposal evaluation to cost efficiency, incentivizing competitive pricing while rewarding submissions that deliver value.

The document applies to the City of New Haven's Economic Development Administration RFP for the redevelopment of the former West Rock STREAM Academy located at 311 Valley Street in New Haven, Connecticut. The RFP seeks qualified respondents capable of both planning and executing adaptive reuse or redevelopment of the site into a community-serving asset aligned with the City's legislative priorities regarding job creation, public safety, quality housing, and environmental justice. The City will consider long-term lease and sale options and mixed-use proposals, provided respondents present a unified vision with a single lead developer. Selected respondents must secure public approvals, demonstrate market viability, and complement neighborhood revitalization efforts. The cost formula methodology outlined in this document would be used to evaluate and score proposals based on their financial competitiveness relative to other submissions.