Records Question California's Taxpayer-Funded Diaper Program Design and Contract Award

California's taxpayer-funded free diaper program, championed by Gov. Gavin Newsom, is facing scrutiny over its contract award and program design, according to records obtained by CBS California Investigates.

The state took 66 days to release documents related to the program, which included a $6.2 million contract awarded to the nonprofit Baby2Baby. This contract was granted without a formal competitive bidding process, an exemption lawmakers included in the budget. While the released records do not indicate illegal conduct, they raise questions about the program's potential for wasting taxpayer money.

Internal analyses and email threads reveal repeated warnings from state agencies and applicants that Baby2Baby's plan to provide every baby with 400 diapers in limited sizes (Newborn and Size 1) at hospital discharge could lead to significant waste. Families have no option to return or exchange the diapers if their baby outgrows them, locking in a design that prompted these concerns.

Notably, the state's own recommendation identified another finalist, SupplyBank.org, as having significant advantages. SupplyBank.org offered more diapers, a wider range of sizes, and a direct-to-consumer distribution option. However, the released records lack bid scoring sheets, evaluation criteria, or rankings, making it unclear how proposals were assessed. The state's comparison spreadsheet also contains numerous "Not answered" entries.

The program was designed around Baby2Baby's existing hospital-distribution model before other vendors were officially solicited. The state then signed a contract that adopted Baby2Baby's specific plan, despite the identified drawbacks and the stronger offerings from other potential partners like Amazon, which proposed vouchers for greater family flexibility.