California is still waiting on the millions of N95 masks purchased for nearly $1-billion from a company in China that is better known for manufacturing buses, cars and trucks, buses, battery-powered bicycles, solar panels, and rechargeable batteries. The masks are part of the state's response to the COVID-19 pandemic and intended primarily for frontline workers dealing with the virus.
In April the state agreed to a nearly $1 billion deal for the N95 face masks and other surgical masks despite BYD Co. Ltd's lack of experience with making them, and officials decided to make a payment before taking delivery of any masks. The state paid $3.30 per N95 and 55 cents per surgical mask under the contract.
Governor Newsom's administration was also questioned by the media and some state lawmakers about striking a deal without seeking bids from other companies. They responded by saying the early days of the pandemic were the "wild west," and securing personal protective equipment was difficult at best.
The Governor's Office of Emergency Services early on declined to discuss the terms of the agreement and suggested doing so would put delivery of the masks in jeopardy and only slowly released details later.
Now, BYD, which was forced to refund some of California's money, has missed an extended May 31st deadline to secure federal certification for the masks. State officials are trying to decide whether to give the company an extension or ask for a full refund.
The state is also looking at other options for getting the masks, and they say they will likely go public with an update on the deal in the coming days.
This isn't the only PPE deal gone wrong for California during the pandemic. In March, the state wired nearly half a billion dollars to Blue Flame Medical LLC for millions of masks, but canceled the contract and pulled the money about 24 hours later, according to a CalMatters report.
State officials also saw a third deal crumble, when Florida-based Hichens Harrison Capital Partners had to refund $8.7 million that had been sent to that company, according to the California Treasurer's office. HHCP has a subsidiary in Brazil and also does business in China, and they promote online an "exclusive line of ventilators."