FACT Requests California State Auditor Investigate the Newsom Administration’s Diaper Contracts

WASHINGTON, D.C. – The Foundation for Accountability and Civic Trust (FACT) has sent a letter to California State Auditor Grant Parks requesting an investigation into the State of California's no-bid contracts with the nonprofit Baby2Baby, citing concerns over favoritism, lack of transparency, and taxpayer waste.

The complaint stems from California's "Golden State Start" program, which awarded Baby2Baby a $6.2 million non-competitive contract to distribute diapers to new parents. FACT notes that the contract has drawn scrutiny due to Baby2Baby leadership's political ties to Governor Gavin Newsom's network, questions about whether taxpayers paid above-market prices, and the administration's failure to disclose records related to the contract despite repeated public requests.

According to FACT's letter, although the Newsom administration initially claimed the contract was awarded through a competitive bidding process, records later showed it was issued under a procurement exemption. State lawmakers also questioned why officials bypassed the normal procurement process and relied on a process with significantly less oversight.

FACT is asking the California State Auditor to investigate whether proper procedures were followed, why the state relied on a non-competitive contracting process, and whether California complied with its public transparency obligations. The complaint also notes that the state has approved an additional $12.5 million for the program and that Baby2Baby previously received another non-competitive state contract, raising broader concerns about the state's contracting practices.

"Government contracts must be awarded through a process that is fair, transparent, and accountable to taxpayers. When a politically connected nonprofit receives millions of taxpayer dollars through a no-bid contract while the state withholds basic information about how the award was made, it undermines public confidence and warrants an independent investigation," said Kendra Arnold, Executive Director of FACT. 

A full copy of the complaint can be found HERE.

The Foundation for Accountability and Civic Trust (FACT) is a nonprofit organization dedicated to promoting accountability, ethics, and transparency in government and civic arenas.

###