Summary:
Rep. Gerald Connolly investigates Ramp's $25M federal contract bid for potential preferential treatment
Ramp's investors include Trump allies, raising concerns about conflict of interest
Ramp allegedly has zero federal contracting experience, yet is favored for a $700 billion SmartPay program pilot
Investigation requests all communications between Ramp and GSA officials
Ramp's valuation recently doubled to $13B, with over $1B in equity financing raised
Rep. Gerald Connolly, ranking member of the U.S. House Oversight Committee, has launched an investigation into expense management startup Ramp's bid for a $25 million government contract. The probe focuses on whether Ramp is receiving preferential treatment, given its lack of federal contracting experience and its connections to Trump allies and supporters among its investors.
Key Concerns:
- Zero Federal Contracting Experience: Ramp allegedly has no prior experience with federal contracts.
- Investor Connections: Investors include Peter Thiel’s Founders Fund, Keith Rabois of Khosla Ventures, Thrive Capital, and 8VC’s Joe Lonsdale, all with ties to Trump.
The Investigation:
Connolly has requested detailed records from the General Services Administration (GSA), including all communications and meetings between GSA officials and Ramp representatives. The investigation was first reported by ProPublica.
The SmartPay Program:
The government’s $700 billion SmartPay program currently partners with Citibank and US Bank. Ramp is competing for a pilot program under this initiative, claiming it was inspired by a public post from the Department of Government Efficiency (DOGE).
Allegations:
- Early Preparations: Ramp allegedly began preparing for the contract before the official request for information was announced.
- Favoritism Claims: A GSA employee reportedly stated Ramp was the "favorite" to win the contract.
Ramp’s Response:
Ramp has not commented on the investigation but previously stated it was participating in a standard procurement process based on the strength of its solution.
Background:
In March, Ramp’s valuation doubled to $13 billion after a $150 million secondary share sale. Since 2019, the startup has raised over $1 billion in equity financing and $700 million in debt funding.
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