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Trump Team Eyes Politically Connected Startup to Overhaul $700 Billion Government Payments Program
https://www.propublica.org/article/trump-peter-thiel-ramp-gsa-smartpay-expense-payment-systemA little-known firm with investors linked to JD Vance, Elon Musk and Trump could get a piece of the federal expense card system — and its hundreds of millions in fees. “This goes against all the normal contracting safeguards,” one expert said.
Four days before Donald Trump’s inauguration, financial technology startup Ramp published a pitch for how to tackle wasteful government spending. In a 4,000-word blog post titled “The Efficiency Formula,” Ramp’s CEO and one of its investors echoed ideas similar to those promoted by Trump and his billionaire ally Elon Musk: Federal programs were overrun by fraud, and commonsense business techniques could provide a quick fix.
Ramp sells corporate credit cards and artificial intelligence software for businesses to analyze spending. And while the firm appears to have no existing federal contracts, the post implied the government should consider hiring it. Just as Ramp helped businesses manage their budgets, the company “could do the same for a variety of government agencies,” according to the blog and company social media posts.
It didn’t take long for Ramp to find a willing audience. Within Trump’s first three months in office, its executives scored at least four private meetings with the president’s appointees at the General Services Administration, which oversees major federal contracting. Some of the meetings were organized by the nation’s top procurement officer, Josh Gruenbaum, commissioner of the Federal Acquisition Service.
GSA is eying Ramp to get a piece of the government’s $700 billion internal expense card program, known as SmartPay. In recent weeks, Trump appointees at GSA have been moving quickly to tap Ramp for a charge card pilot program worth up to $25 million, sources told ProPublica, even as Musk’s Department of Government Efficiency highlights the multitudes of contracts it has canceled across federal agencies.
. . .
Ramp sells corporate credit cards and artificial intelligence software for businesses to analyze spending. And while the firm appears to have no existing federal contracts, the post implied the government should consider hiring it. Just as Ramp helped businesses manage their budgets, the company “could do the same for a variety of government agencies,” according to the blog and company social media posts.
It didn’t take long for Ramp to find a willing audience. Within Trump’s first three months in office, its executives scored at least four private meetings with the president’s appointees at the General Services Administration, which oversees major federal contracting. Some of the meetings were organized by the nation’s top procurement officer, Josh Gruenbaum, commissioner of the Federal Acquisition Service.
GSA is eying Ramp to get a piece of the government’s $700 billion internal expense card program, known as SmartPay. In recent weeks, Trump appointees at GSA have been moving quickly to tap Ramp for a charge card pilot program worth up to $25 million, sources told ProPublica, even as Musk’s Department of Government Efficiency highlights the multitudes of contracts it has canceled across federal agencies.
. . .
As if the fees charged by the credit card companies weren't enough...