Rekor Systems Inc. (NASDAQ: REKR) announced it reached an agreement in principle with the Oklahoma District Attorneys Council to continue as technology partner for the state's Uninsured Vehicle Enforcement Diversion Program. The multi-year contract carries a total value of $16.8 million, according to a company press release.

The agreement extends Rekor's role in operating the statewide program that began in 2020. The company's vehicle recognition sensors capture vehicle data and cross-reference it with Oklahoma's Insurance Verification System to identify uninsured vehicles. Vehicle owners receive notices with photographic evidence and must obtain liability insurance, pay an enrollment fee, and maintain coverage for two years.

Oklahoma's uninsured motorist rate improved from among the worst nationally in the mid-2010s to 27th place, according to Insurance Information Institute data cited in the announcement. "Oklahoma went from the worst in the nation to the middle of the pack," said Amanda Arnall Couch, director of the UVED Program.

The program diverts cases from courts and reduces burdens on law enforcement while the national uninsured driving situation has worsened. A U.S. News & World Report analysis found that states where more than 20% of drivers lack insurance doubled from 2022 to 2023.

"This contract reflects more than a business relationship. It reflects confidence in what Rekor's technology has delivered since we began this work in 2020," said Charles Degliomini, Executive Vice President at Rekor Systems.

The contract adds recurring revenue to Rekor's portfolio of state and municipal agreements. The company develops roadway intelligence systems using computer vision technology for government agencies and businesses.