A hybrid electric vehicle simulation tool (HE-VESIM) has been developed at the Automotive Research Center of the University of Michigan to study the fuel economy potential of hybrid military/civilian trucks. In this paper, the fundamental architecture of the feed-forward parallel hybrid-electric vehicle system is described, together with dynamic equations and basic features of sub-system modules. Two vehicle-level power management control algorithms are assessed, a rule-based algorithm, which mainly explores engine efficiency in an intuitive manner, and a dynamic-programming optimization algorithm. Simulation results over the urban driving cycle demonstrate the potential of the selected hybrid system to significantly improve vehicle fuel economy, the improvement being greater when the dynamic-programming power management algorithm is applied.