What is Vehicle Allocation Methodology (VAM)

June 9, 2021
ILSMD

What is Vehicle Allocation Methodology (VAM)?

ILSMD has been a leader in fleet management for over 20 years. Our seasoned fleet managers use innovative and best industry practices to ensure we offer the best service to our clients. Our team is often tasked with creating comprehensive and detailed VAM’s for our clients.

Vehicle Allocation Methodology (VAM) is the planning process used by fleet managers to obtain their optimal fleet inventory. This is a forward-looking process to estimate agency fleet inventories and budget needs for the next 5 years. The VAM is used to build an optimal fleet creating efficiency and cost-savings for the customer.

What is Optimal Fleet?

A fleet is considered optimum when there is the correct number and type of vehicles that cost-effectively sustain an agency’s mission. A VAM assess what type and number of vehicles as well as environmental impact of the operation of the fleet

Examples of questions used in a VAM assessment:

1. Does the vehicle complete the mission?

2. Is the vehicle fuel efficient?

3. Does the fleet comply with all members?

4. Are the next steps justified?

What vehicles require VAM?

Federal Management Regulation (FMR) 102-34.50 requires executive agencies to establish and document structured vehicle allocation methodology to determine the appropriate size, number, and type of motor vehicles.

If following this system fleet managers need to conduct a survey every five years for each vehicle. When completing this survey, managers must conclude the following.

1. Identify unnecessary vehicles,

2. Identify vehicles that do not match mission or location requirements,

3. Ensure that optional vehicle features (such as 4-wheel drive, aftermarket equipment) are necessary,

4. Identify opportunities for vehicle sharing.

This survey should help managers determine if they would need to seek new vehicle’s needs.

Identify Critical Mission Vehicles is the most crucial. Fleet managers will need to determine and document if any missions have a criticality that requires vehicle retention no matter what the utilization.

The last step is to make decisions and changes if needed. Remove any or all vehicles that are of no use to your fleet.

For more information on how to reach optimum fleet for your company please email [email protected] or call 240-391-6096.