California gives mask manufacturer more time on $1 billion coronavirus contract

California has granted an extension on the $1 billion contract for coronavirus masks it awarded for to China-based manufacturer BYD two months ago, the Newsom administration announced Friday.

The state’s amended contract with a California-based subsidiary of BYD gives the company until June 12 to obtain certification that its N95 masks meet American standards.

The decision Friday marks the second time California has agreed to an extended deadline. California paid nearly $500 million up front for the masks in April, but BYD had to refund half the money in May after it missed the first deadline. California granted it an extension, which it missed Sunday.

BYD will have to refund the full amount if it doesn’t meet the new deadline, according to the updated contract.

At a press conference Friday, Newsom said the state won’t lose any money if it doesn’t get the masks and that his administration is looking into other sources of N95s, which are thought to offer the best protection against the coronavirus that causes COVID-19.

The company has sold the state 91 million surgical masks since it entered into contract with the state, which Newsom has characterized as a success.

Surgical masks are thought to be somewhat effective in reducing transmission of the coronavirus that causes COVID-19, but not as effective as N95s.

Newsom first announced the deal with BYD to purchase 200 million masks per month, most of which he said would be N95s, during an appearance on MSNBC on April 7.

The National Institute for Occupational Safety and Health previously denied certification for the masks because its review of documentation for the “design, manufacturing and quality inspection of the device was concerning,” said Katie Shahan, a spokeswoman for the federal regulator.

The federal institute, known as NIOSH, is giving the company a chance to correct the issues it found, Shahan said.

BYD spokesman Frank Girardot said that the company stands by its comments from mid-May, when it said the issues NIOSH identified were related to documentation and would be corrected. Girardot said that the issues are still “easily fixable.”