The California Department of Health Care Access and Information awarded a $6.2 million contract to Los Angeles-based nonprofit Baby2Baby to distribute diapers. Governor Gavin Newsom’s office stated that the contract “went through a competitive bidding process,” according to public statements by administration officials.
However, CBS California Investigates found that state records do not reflect a competitive bidding process for the contract. The investigation revealed that the deal was among dozens of similar no-bid exemptions included in the state budget, with these exemptions collectively worth over $1 billion.
The contract award and the discrepancy between the governor’s characterization and the actual procurement process have prompted calls for an ethics probe into how the state awards contracts outside traditional competitive bidding procedures.
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