Gov. Gavin Newsom reverses course, releases controversial coronavirus mask contract
Gov. Gavin Newsom released details on Wednesday of a secretive $1-billion deal to purchase protective masks from a Chinese electric car maker that revealed the company must reimburse the state $247.5 million by the end of the week.
Newsom downplayed the setback during a coronavirus briefing earlier Wednesday, calling it a “little bit” of a delay and suggesting it was because the masks were a new product for the company to manufacture.The last-minute reimbursement, according to a new amendment to the contract, was agreed to because the original $495-million deposit by the state was contingent in part on some of the N95 masks being delivered in May.
“We negotiated a pretty good price in the middle of all this,” Newsom said Wednesday, noting inflated prices being paid by others in the early weeks of the crisis. “I hope you’ll consider those price points that we were able to negotiate, up against where the market was.”
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