California Governor Gavin Newsom's administration released details of a $6.2 million contract with the nonprofit Baby2Baby on July 21, 2026, following scrutiny regarding the contract's noncompetitive designation and delays in its disclosure. The agreement aims to provide families of newborns with 400 free diapers at participating California hospitals.
In May, Newsom stated that the contract was awarded through a 'competitive bidding process,' but the state's contract database categorizes it as 'NON-COMPETITIVELY BID.' Instead of formal bids, the state requested information from interested groups through a 'Request for Information,' which indicated that submitted prices would not be considered bids.
Newsom's office responded to the criticism by stating that 15 groups were evaluated based on cost and their capacity to produce and distribute diapers. They maintained that the process was competitive in nature. However, records reportedly lacked scoring sheets, rankings, or clear evaluation standards, and several applicants were unaware they were no longer in consideration until the Baby2Baby partnership was announced.
California's 2025 budget exempted this program from standard bidding rules and other review requirements. CBS California Investigates identified over two dozen similar exemptions in the state budget, amounting to over $1 billion in spending, with many of these exemptions not set to expire. The contract was released 66 days after a public records request was filed, with the governor's office citing the need for additional time for legal processing. This contract marks at least the third instance of Baby2Baby receiving state funding without a competitive bid, and the nonprofit's co-CEO has ties to the Newsom administration.