Cost_Formula-reward_average_cost_for_RFP.docx

This is a cost formula reference document related to an RFP issued by the New Haven Board of Education Food and Nutrition Department for dairy and juice product delivery during the 2026-27 school year. The RFP solicits proposals from vendors to supply dairy and juice products to summer camp locations, schools, and the Central Kitchen facility. The program encompasses approximately 224 service days annually and serves between 17,500-19,000 meals per day across the New Haven public school system in Connecticut.

The document outlines the "Reward Low Cost" scoring methodology, which uses a cost formula to award points based on proposal pricing relative to the lowest submitted bid. Under this formula, the lowest cost proposal receives the maximum available points (100% of allocated points), while higher-cost proposals receive proportionally fewer points calculated by dividing the lowest proposal cost by each individual proposal cost. For example, a proposal costing twice as much as the lowest bid would receive 50% of the available points. This scoring approach incentivizes cost-effective bidding while maintaining objectivity in the evaluation process.