California Awards $6.2 Million Diaper Contract to Nonprofit After RFI

California health officials released the contract for the state's $6.2 million diaper program late Friday night. The agreement with the nonprofit Baby2Baby covers distribution of 400 free diapers for every newborn delivered at participating hospitals under the Golden State Start initiative.

More than half of the total, roughly $3.89 million, will pay for branded diapers. Another $750,000 covers shipping, $610,000 is allocated for warehousing, and $35,000 goes toward communications. Labor costs total $917,000 across 12 employees, averaging just over $78,000 per worker. Officials estimate the cost per diaper at up to 12.5 cents.

The contract is labeled non-competitively bid in the state's database. A budget provision exempted the program from competitive bidding laws, Department of General Services oversight, and public posting requirements for no-bid contracts. Officials said they sought information from 15 organizations and selected Baby2Baby for its statewide distribution network and partnerships.

Several respondents later told investigators they received no interviews or did not believe they were seriously considered. Critics said the late-Friday timing limited public attention heading into the weekend.

“The Newsom administration has been misleading about whether the contract was awarded in a competitive process and has mired the entire situation with a complete lack of transparency.”