In December the US Department of Health and Human Services received the go-ahead or “authority to operate” (ATO) a procurement system that leverages blockchain and AI. The system will be used to provide pricing information for procurement.
The project extracts data from 100,000 contracts which represent roughly $24.8 billion in annual spend across five separate legacy contract writing systems in the department. It then analyzes the prices paid and terms on those contracts. In turn, that data will be used as input for new purchases.
“We believe there’s significant savings and significant price negotiation power that will come with having full visibility into prices paid and terms and conditions,” said Jose Arrieta, the associate deputy assistant secretary for acquisition, speaking to
Federal News Network. He gave an example as an analogy of how a consumer could say to a retailer that they can get it cheaper elsewhere and request a price match.
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