Vendor Payment Modernization Frameworks: Blockchain-Enabled Smart Contracts to Eliminate Service Delays in Assistive Tech Procurement
Year: 2025
Type: article
Abstract: Delays in vendor payments within public sector organisations, especially with the procurement of assistive technology for individuals with disabilities, pose significant difficulties to service efficiency, equity, and operational responsibility. Conventional payment systems are impeded by human verification procedures, fragmented data flows, and regulatory obstacles that frequently prolong service delivery timelines. This study introduces a research-based system that utilizes blockchain-enabled smart contracts to enhance vendor payment processes and eradicate service delays in AT procurement. This report conducts a comprehensive examination of current payment infrastructures and regulatory frameworks, identifying significant failure points within the systems utilized by Departments of Rehabilitation (DOR) and other agencies. The proposed architecture utilizes smart contracts to automate payment authorization, ensure compliance, and openly and effectively enforce contract requirements. Incorporated within the smart contracts are policy-driven logic rules that reflect state procurement standards and Workforce Innovation and Opportunity Act (WIOA) fiscal guidelines, facilitating real-time verification of service milestones and secure cash distribution. Research findings suggest that blockchain-enabled payment systems can save processing time by as much as 70%, reduce administrative errors, and create immutable audit trails that enhance oversight and accountability. This system enhances vendor trust and minimizes conflicts by facilitating transparent, condition-based transactions. The report continues by delineating essential factors, including scalability, regulatory compliance, cybersecurity, and integration with older systems like Cal JOBS and AWARE. This research adds to the expanding literature on public sector innovation, providing a prospective answer for agencies aiming to improve efficiency and dependability in service delivery to at-risk groups.
Authors: Staff Analyst, San Francisco, CA, USA, Jeet Kocha
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: diamond
OpenAlex ID: W4412041832