California officials have released the details of a $6.2 million no-bid contract awarded to the nonprofit Baby2Baby, an organization with ties to the governor's wife, following months of public pressure and demands for an ethics investigation. The contract aims to provide diapers to newborns in participating California hospitals.
The California Department of Health Care Access and Information posted the agreement late Friday, specifying the terms of the taxpayer-funded deal. Baby2Baby, whose CEO is on the board of a charity founded by Jennifer Siebel Newsom, was selected to distribute 400 free diapers for every newborn delivered statewide.
State officials defended their selection of Baby2Baby, citing the nonprofit's demonstrated capacity for statewide distribution, existing partnerships with over 590 California organizations, procurement capabilities, and ability to rapidly establish a hospital distribution network. The department initiated a request for information, receiving responses from 15 organizations before selecting Baby2Baby through an evaluation process.
Despite these explanations, critics have voiced concerns about potential political favoritism. Kendra Arnold, executive director of the Foundation for Accountability and Civic Trust, stated that the Newsom administration has been misleading regarding the contract's competitive nature and has lacked transparency. State records have labeled the deal as "non-competitively bid."
The $6.2 million contract outlines the allocation of funds. Approximately $3.89 million is designated for the diapers themselves, which will feature "Golden State Start" branding. Another $750,000 will cover shipping costs, and $610,000 will be used for warehousing.
The cost per diaper is estimated to be up to 12.5 cents. Additional expenses include $35,000 for communications and $917,000 for labor. The program employs 12 individuals, with salaries averaging slightly over $78,000 per person.
Republican lawmakers have also criticized the deal. State Sen. Roger Niello questioned the strategy of using a nonprofit as an intermediary rather than having the government or hospitals directly purchase the diapers, suggesting this approach would incur administrative costs.
The nonprofit received a contract extension worth $12.5 million into the following year, further fueling scrutiny of the arrangement. The details of the initial $6.2 million contract were released after months of resistance to public records requests from reporters.