As a milestone within the European Union The autonomous government of Aragon in Spain has successfully completed the award of a public contract using blockchain technology.
By implementing smart contracts on the blockchain platform that was set up in 2017 to place orders,The public administration reported that the progress of the electronic contract system with the support of the blockchain is already a reality.
Although it’s not the first time that this provincial government is using blockchain technology to present offers in public tenders, It is the first order to be awarded in this way, which does not require any intervention by contract tables and is carried out under the platform in just a few minutes and for just a few cents.
The contract was awarded to a company that supplies 35,000 reusable masks to the administration staff of the Aragon Autonomous Communityas set out in Diario.es on July 24, 2020.
Given the success of the Aragon government’s milestone in public administration in the old continent through blockchain technology, Miguel Ángel Bernal, general manager of Local Government Contracting said in the last legislative period:
First of all, you can determine whether the contracting companies have complied with the submission deadlines. Then it is the algorithm that makes a price proposal, “he explains. In this sense,” mistakes in evaluating offers are limited and there is no risk that a person changes the process. “
The use of this type of solution enables a more effective fight against the vice of contract processes as well as lowering the costs of so-called contract calls, a fundamental problem for a local government that awards up to 2,500 orders annually for a total value of 6,000 million euros.
While The macro-level application will still take some time to be fully implemented for all ordersThe event, which took place last week, undoubtedly gives an insight into how far blockchain technology can be used efficiently in public administration.
“The pioneering system introduced by the Aragon government will become a reality in all public institutions, as the law also prescribes electronic contracts,” said Bernal, who is also executive secretary of the public procurement observatory.
The use of blockchain technology in this type of public process makes it possible to shorten the response times within which the autonomous government has set a period of 24 hours after submitting the offers to determine the contractor.
The importance of the event in Aragon has made it possible for institutions such as the European Commission and the World Economic Forum to be recognized. I agree that fighting corruption is a good practice.
It is worth noting that in the recent past, the World Economic Forum has promoted the use of blockchain technology to fight corruption in such processes in Colombia after providers of school food programs in the United States raised allegations of embezzlement in the neogranadina nation.