Ramp's $25M Government Contract Bid Under Investigation

Ramp's $25M Government Contract Bid Under Scrutiny

A congressional investigation is underway, examining fintech startup Ramp's attempt to secure a $25 million federal contract with the General Services Administration (GSA). Representative Gerald Connolly, ranking member of the U.S. House Oversight Committee, is leading the probe into whether Ramp received preferential treatment during the bidding process for the SmartPay pilot program.

Concerns Over Lack of Experience and Investor Ties

Connolly's investigation stems from concerns about Ramp's alleged lack of federal contracting experience and its connections to prominent investors with ties to the Trump administration. These investors include Peter Thiel's Founders Fund, Keith Rabois of Khosla Ventures, Thrive Capital (founded by Josh Kushner), and Joe Lonsdale of 8VC. Rabois reportedly raised over $1 million for Donald Trump's 2024 campaign.

The investigation also focuses on Ramp's communication with entities in the payment industry regarding bank identification numbers needed for government payments, allegedly before the official request for information (RFI) was released.

GSA's SmartPay Program and Ramp's Pursuit

The GSA's SmartPay program, a $700 billion internal expense card system, currently contracts with Citibank and US Bank. Ramp's interest in the program was sparked by a public post on X by the Department of Government Efficiency (DOGE), highlighting the government's credit card usage and spending. Ramp claims a former customer introduced them to the GSA shortly after.

Connolly's letter to GSA Acting Administrator Stephen Ehikian requests detailed information on all meetings and communications between GSA officials and Ramp representatives. The congressman also cited a GSA employee who allegedly identified Ramp as the "favorite" to win the contract.

Ramp's Recent Growth and Valuation

Ramp recently doubled its valuation to $13 billion after a $150 million secondary share sale. Since its founding in 2019, the company has raised over $1 billion in equity financing and $700 million in debt funding.

Ramp has not commented on the ongoing investigation. Connolly's inquiry aims to determine whether proper procedures were followed during the bidding process and if any undue influence played a role in Ramp's pursuit of the $25 million government contract.