Ricardo Regulatory News (RCDO)

17 March 2021

Ricardo plc

Ricardo Defense awarded a sole-source contract valued at over $89M to deliver 9,480 ABS/ESC retrofit kits to US Army

Ricardo Defense has secured a three-year, $89M contract to provide critical safety upgrades protecting the lives of thousands of HMMWV operators around the world

Detroit, Michigan -The Army today awarded Ricardo Defense a base contract to provide up to 9,480 critical safety improvement Antilock Brake System / Electronic Stability Control (ABS/ESC) retrofit kits over the next three years for the U.S. Army's High Mobility Multipurpose Wheeled Vehicle (HMMWV). The first delivery order, under the three-year base contract, will include $10M to deliver 1,200 ABS/ESC retrofit kits by August 2021. A second delivery order is expected later this year to increase deliveries to approximately 2,000 ABS/ESC retrofit kits over the next 12 months.

Historical data presented by the National Highway Traffic Safety Administration (NHTSA) indicates that the application of ABS and ESC reduces the number of fatal rollovers by 74%, and fatal impacts by 45%. Today's initial award marks the beginning of a multi-year contract for Ricardo Defense to improve the safety and operational readiness of the fielded HMMWV fleet for U.S. soldiers and HMMWV operators worldwide.

Chet Gryczan, president of Ricardo Defense said: "This is a significant milestone and strong example of Ricardo Defense's commitment to provide solutions to meet the tough challenges facing our customers and ensure the safety of our men and women in uniform. In fielding this system, we are tremendously proud to contribute to the Army's commitment to the safety of our soldiers and civilians alike."

The HMMWV is projected to remain in the U.S. Army's fleet until 2050. In 2018, the Army mandated that all new HMMWVs coming off the new vehicle production line must have the ABS/ESC system installed. Since July 2018, more than 5,000 new production or Recapitalized HMMWV vehicles have been delivered to the US Army with Ricardo's ABS/ESC technology. In 2019, the Army provisioned Ricardo's ABS/ESC retrofit kit into the national stock system for retrofit of vehicles not addressed during new production or Recapitalization. This dual-approach ensures that all HMMWVs in the enduring fleet are eventually fit with the ABS/ESC rollover mitigation technology.

 A spokesperson for the U.S. Army, Product Director Light Tactical Vehicles said, "The ABS/ESC retrofit contract award is a culmination of a lot of great work from all parties, and is an essential step in providing this critical safety solution to our fielded HMMWV fleet. We are extremely proud of the Army's collaboration with Ricardo Defense to provide an affordable and attainable solution that significantly reduces loss of control incidents, vehicle rollover incidents, and ultimately helps save lives."

Red River Army Depot, in partnership with Ricardo Defense, will complete ABS/ESC retrofit installations at the Army's Center of Industrial and Technical Excellence for tactical wheeled vehicles in Texarkana, Texas and at regional sites across the U.S. beginning in March 2021.

ENDS

About Ricardo

Ricardo plc is a world-class environmental, engineering and strategic consulting company listed on the London Stock Exchange. With over 100 years of engineering excellence, we provide exceptional levels of expertise in delivering leading edge and innovative cross sector sustainable products and solutions, helping our global customers increase efficiencies, achieve growth and create a clear and safer future. Our mission is clear -- to create a world fit for the future. For more information visit www.ricardo.com

About Ricardo Defense, Inc.

Ricardo Defense Inc. is a Ricardo subsidiary delivering high-value system engineering, mission critical software, vehicle builds, and safety-critical products to the US Department of Defense as well as governments and defense industry suppliers world-wide. Ricardo Defense is a recognized leader in the integration of complex systems and acquisition planning and system support services for major defense programs around the globe.

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