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Social Development Minister Paula Bennett will give the funds to Parents Inc over four years for its caregivers "toolbox" courses, which brings communities together to teach parenting skills.
The contract was revealed in this year's budget, two days after former deputy commissioner and Parents Inc chief executive Bruce Pilbrow announced his resignation from the Commission.
Ms Bennett, who appointed Mr Pilbrow two years ago, told One News the contract was awarded to his organisation because it offers the unique "toolbox" course.
"They've got the product that we really want for this. They are working in both smaller communities and large ones throughout New Zealand. And it's really the toolbox that we are buying and no one else has it, so if we put it out for tender someone else would have to create something that is already there.
"He had absolutely no idea that he was getting this contract, so there was no correlation there. In fact when he said he was resigning, I obviously knew he was, but I couldn't say to him this might look a little bit funny because he didn't know," she said.