Congress Investigates Fintech Ramp's Federal Contract Bid

Investigation Launched into Potential Favoritism in Government Contract Bid

Representative Gerald Connolly, the ranking member of the U.S. House Oversight Committee, has begun an inquiry to determine if expense management company Ramp is receiving undue advantage in its pursuit of a $25 million government contract.

GSA Scrutiny

Connolly addressed a letter to Stephen Ehikian, the Acting Administrator of the General Services Administration (GSA), requesting comprehensive information and documentation concerning the GSA’s intentions to potentially award a pilot program contract to Ramp. Initial reports regarding this investigation surfaced through ProPublica’s reporting.

Concerns Regarding Ramp’s Background

A primary concern raised by Connolly centers on Ramp’s perceived lack of prior experience in federal contracting. Furthermore, the company’s investor base includes individuals with strong ties to former President Donald Trump and his political network.

Notable Investors

Among Ramp’s investors are prominent figures such as Founders Fund, backed by Peter Thiel; Keith Rabois of Khosla Ventures; Thrive Capital, established by Josh Kushner (brother of Jared Kushner); Joe Lonsdale of 8VC, a known supporter of Trump; and Jeb Bush, former Florida governor and brother of George W. Bush.

According to Connolly’s letter, Rabois actively contributed over $1 million to Donald Trump’s 2024 presidential campaign.

Information Requested from the GSA

Representative Connolly has formally requested the GSA to provide a detailed record of all interactions – meetings and communications – between GSA personnel and representatives from Ramp. This includes any exchanges involving contractors or subcontractors.

The SmartPay Program

The government’s SmartPay program, which manages internal expense cards, represents a substantial $700 billion undertaking. Currently, Citibank and US Bank, both major credit card providers, serve as the official banking partners for the existing SmartPay contract.

Ramp’s Statement on the Bid

In April, Lindsay McKinley, Ramp’s head of communications, confirmed to TechCrunch that the company was actively participating in the standard procurement process for the SmartPay pilot program, emphasizing the strength of their proposed solution.

Initial Awareness of the Opportunity

Ramp reportedly became aware of the opportunity after observing a public post on X (formerly Twitter) from the Department of Government Efficiency (DOGE) on February 18. The post detailed that the U.S. government manages approximately 4.6 million active credit cards, processing around 90 million transactions totaling $40 billion in fiscal year 2024.

The company was subsequently introduced to the GSA by a former client shortly thereafter.

Allegations of Premature Outreach

However, Connolly alleges that Ramp initiated contact with entities within the payment processing industry regarding the necessary bank identification numbers for government payments prior to the public release of a formal request for information (RFI) related to the contract.

Internal Claims of Favoritism

Furthermore, Connolly asserts that a GSA employee reportedly indicated that Ramp was considered the frontrunner to secure the contract.

Ramp’s Response

Ramp has declined to comment on the ongoing investigation initiated by Representative Connolly.

Recent Valuation Increase

In March, Ramp experienced a doubling of its valuation to $13 billion following a $150 million secondary share sale. Since its founding in 2019, the startup has secured over $1 billion in equity financing and $700 million in debt funding commitments.