Newsom Administration Defends Actions on Mask Deals

Gov. Gavin’s Newsom’s administration is on the defensive after several different multimillion dollar contracts for medical masks to help protect against COVID-19 were either canceled, delayed or failed to deliver most of what was promised.

In an Assembly committee oversight hearing at the state Capitol Monday, officials stressed that no taxpayer money was actually lost in the failed arrangements.

The deals include a $1 billion contract with Chinese manufacturer BYD for surgical and N95 masks. But the company failed to get the masks certified by the federal government by the agreed-upon deadline and is refunding the state $247 million.

The Los Angeles Times reported another deal  — an $800 million contract with a politically connected vendor — fell apart after the company failed to deliver most of what it promised. The state said it had not paid in advance for the products.

CalMatters also reported a nearly $457 million deal the state canceled at the last minute after beginning a wire transfer that was not ultimately completed.

Mark Ghilarducci, director of the Governor's Office of Emergency Services, said California was under pressure to secure massive amounts of protective equipment quickly, while vetting vendors in a market rampant with fraud.

“The state had very little leverage to bargain with,” he said. “Just as we were notified of a potential source, and the source appeared legitimate, it was lost to another buyer.”

Lawmakers on the oversight panel were sympathetic. But several suggested the state’s procurement model should be reviewed to prevent similar situations going forward.

— Katie Orr (@1KatieOrr)