The U.S. Navy, which oversees one of the largest federal nontactical vehicle fleets, recently completed a major initiative to modernize its fleet through a comprehensive Vehicle Allocation Methodology (VAM) study.
Managed by the Naval Facilities Engineering Systems Command (NAVFAC), the effort aimed to ensure fleet assets were appropriately sized, mission-aligned, and efficiently used across the enterprise. The project began in July 2022 and concluded in August 2024, with the NAVFAC headquarters (HQ) team ultimately evaluating more than 49,000 vehicles and recommending thousands for elimination or reassignment.
Process Prioritizes Consensus
The VAM effort was structured into four phases:
- Data collection
- Recommendations
- Consensus building
- Development of a final Fleet Management Plan.
During the data-collection phase, the NAVFAC HQ team distributed a 100+-question survey to gather data on the nontactical vehicles in the fleet. Combined with Navy fleet management system data, survey responses helped establish a baseline of vehicle use and mission criticality. The responses also enabled the team to improve fleet data quality by correcting identifying information in the fleet management system.
Next, the team analyzed the data to generate initial recommendations for vehicle right-sizing and right-typing. To supplement the surveys completed for approximately 70% of the 49,403 vehicles in the fleet, the team developed a machine learning model to make assumptions on utilization and criticality for the remaining 30% of assets.
Vehicles were scored based on their utilization, mission alignment, and upfitting requirements, and those with lower scores were flagged as candidates for reduction, reassignment, or replacement with alternative vehicle types, such as low-speed vehicles.
Once initial recommendations were finalized, fleet managers were asked to review the recommendations and either accept or reject them. Rejection of a recommendation required a justification, which was reviewed by the NAVFAC HQ team. This inclusive, consensus-based approach to validating the recommendations ensured operational needs were factored into every decision and helped foster buy-in from stakeholders across the enterprise.
VAM Drives Cost-Saving Decisions
The Navy Fleet Management Plan produced in the final phase of the project outlined an Optimal Fleet Profile based on the consensus-based study results. In total, the NAVFAC HQ team recommended 4,533 vehicles for elimination. As of May 2025, 673 vehicles have been removed from service, resulting in an estimated $2.1 million in cost savings.
As of May 2025, 673 vehicles have been removed from service, resulting in an estimated $2.1 million in cost savings.
Future Fleet Modernization Efforts Stand To Benefit
Key lessons learned from the VAM process highlighted the need for regional flexibility in planning and execution, sustained communication with stakeholders, and adequate time for consensus-building. The effort also underscored the importance of starting with accurate, high-quality baseline data to support effective decision-making.
Looking ahead, the Navy intends to expand its use of telematics to automate data collection and reduce the burden of manual surveys. Rather than conducting a fleetwide analysis every 5 years, future VAM efforts will adopt a phased approach over several years. This shift is expected to distribute workload more evenly, allow for more responsive planning, and make it easier to secure consistent funding to support VAM activities as part of routine fleet management operations.