5.6.3.2.2. RFP Cost Scoring

The issuing officer will analyze each supplier’s cost responses independently of the evaluation committee, but may perform the cost evaluation concurrently with the evaluation committee’s initial scoring of the technical responses. Each supplier’s submitted cost and the resulting cost scores will not be shared with the evaluation committee until after the initial scoring of the technical proposals has been completed and any needed clarifications are obtained.

The supplier deemed to have the most competitive cost response overall, as determined by the state entity, will receive the maximum score for the cost criteria. Alternatively, in the event the cost proposal is scored at the category, subcategory or line level, the state entity should assign the maximum score per category/subcategory/line for the most competitive cost response at that level based on its value.

As a general rule, other suppliers’ cost responses will receive a percentage of the maximum score based on the percentage differential between the most competitive cost proposal and the specific proposal in question. This cost scoring can be accomplished using the formula noted in Table 5.7:

 

Table 5.7 Cost Scoring Formula
L/R x P = Z	Where: L = Price of the supplier’s response with the lowest cost. R = Total cost of the Proposal being ranked. P = Total points available for cost scoring. Z = Assigned points.
Example	State entity receives responses from two suppliers on an RFPRequest for Proposals. The RFPRequest for Proposals assigned 700 possible points for technical scores and 300 possible points for cost scores. Supplier A’s cost proposal is $50, 000.00. Supplier B’s cost proposal is $55,000.00. As Supplier A offered the lowest cost, Supplier A receives 300 points. The issuing officer can calculate the number of cost points to assign to Supplier B’s cost score by using the formula noted above. As shown below, Supplier B’s total cost score is 272.7 points. . L/R x P = Z ($50,000.00/$55,000.00) x 300 = Z .909 x 300 = Z 272.7 = Z

 

The cost scoring formula in Table 5.7 is a common scoring method; however, nothing in this subsection will supersede any provision within the RFPRequest for Proposals or the state entity’s established evaluation criteria regarding other cost evaluation methodologies.