A government ethics watchdog is calling for a state audit of a $12 million diaper contract championed by California Governor Gavin Newsom, citing concerns about political favoritism and the potential misuse of taxpayer funds. The Foundation for Accountability and Civic Trust (FACT), a Washington D.C.-based organization, has urged State Auditor Grant Parks to investigate the state's no-bid contract with the nonprofit Baby2Baby.
FACT alleges that the state may have bypassed its standard competitive bidding process and that records related to the diaper distribution program have been kept from public view. The organization pointed to a $6.2 million contract initially awarded to Baby2Baby by the California Department of Health Care Access and Information, along with a proposed $12 million contract extension included in Newsom's budget for the upcoming fiscal year.
"Immediately after the contract was announced, there were public concerns over whether the contract was awarded in a fair and impartial manner and whether the state was overpaying for the diapers and the program was operated at an unreasonable cost," Kendra Arnold, FACT's executive director, wrote in a letter to the state auditor. Arnold added that the Newsom administration has been "misleading" about the procurement process and has demonstrated a "complete lack of transparency."
The program, announced in San Francisco before Mother's Day, provides 400 free diapers to families upon hospital discharge, irrespective of income. FACT highlighted potential conflicts of interest, noting that one of Baby2Baby's co-CEOs, Norah Weinstein, serves on the board of the California Partners Project, a nonprofit founded by Newsom's wife, Jennifer Siebel Newsom. FACT also identified Baby2Baby's other co-CEO, Kelly Sawyer Patricof, as a significant political donor.
Concerns about the diaper deal have been voiced by lawmakers from both parties. State Sen. Caroline Menjivar, a Democrat, expressed reservations about the "optics" of the vendor selection, stating at a recent hearing that the administration would face lingering criticism for the arrangement. State Sen. Tony Strickland, a Republican, has claimed that the state is overpaying for the diapers, suggesting that bulk purchasing at retail stores could yield lower prices.
California officials have not yet released the Baby2Baby contract or related bidding documents, more than two months after the initial contract's announcement, according to CBS News. Newsom's office previously requested an exemption from standard procurement rules, citing the need to ensure program continuity. Officials have maintained that various diaper banks, manufacturers, and other organizations were invited to participate and that vendors were evaluated fairly. Baby2Baby has stated that any relationship with Siebel Newsom was unrelated to the diaper initiative and that Weinstein's board service is voluntary and unpaid.