Rep. Gerald Connolly, the ranking member of the U.S. House Oversight Committee, has taken the initiative to launch an investigation into allegations of preferential treatment towards expense management startup Ramp in its bid for a $25 million government contract.
In a letter addressed to the General Services Administration (GSA) Acting Administrator, Stephen Ehikian, Connolly has demanded information and documents pertaining to the reported plans of the GSA to award a contract for a pilot program to Ramp. This investigation comes amidst concerns raised by Connolly regarding Ramp’s lack of federal contracting experience and its notable investors, who include a number of Trump allies and supporters. These investors consist of prominent figures such as Peter Thiel’s Founders Fund, Keith Rabois of Khosla Ventures, Thrive Capital founded by Josh Kushner, Joe Lonsdale of 8VC, and Jeb Bush, former governor of Florida and brother of former President George W. Bush.
Connolly’s requests to the GSA include a comprehensive list of all meetings between GSA officials and Ramp representatives, as well as all communications between GSA officials, contractors, or subcontractors and Ramp representatives.
The SmartPay program, an internal expense card program of the government, is a significant $700 billion program currently serviced by Citibank and US Bank. Ramp’s head of communications, Lindsay McKinley, confirmed Ramp’s participation in the procurement process for a SmartPay pilot program, emphasizing the startup’s competitive strength.
Ramp’s introduction to the GSA reportedly came through a former customer following a public post by the Department of Government Efficiency (DOGE) highlighting the substantial government spending on credit cards.
However, Connolly has raised concerns about Ramp’s alleged early engagement with payment industry entities regarding specific bank identification numbers required for government payments, even before the public announcement of a request for information related to the contract. Additionally, a GSA employee allegedly indicated that Ramp was the favored candidate to secure the business, further fueling suspicions of preferential treatment.
Ramp has refrained from commenting on Connolly’s investigation. Despite the scrutiny, Ramp’s valuation doubled to $13 billion in March after a $150 million secondary share sale. Since its establishment in 2019, the startup has amassed over $1 billion in equity financing and $700 million in committed debt funding.
