We report a significantly stronger suppression of the phonon contribution to the thermal conductivity in VO x than can be accounted for by disorder of the 16 % atomic vacancies present in VO. Since the transition from localized to itinerant electronic behavior is first-order and has been shown to be characterized by bondlength fluctuations in several transition-metal oxides with the perovskite structure, we propose that cooperative V-V bond-length fluctuations play a role in VO similar to the M-O bond-length fluctuations in the perovskites. This model is able to account for the strong suppression of the thermal conductivity, the existence of a pseudogap confirmed by thermoelectric power, an anomalously large Debye-Waller factor, the temperature dependence of the magnetic susceptibility, and the inability to order atomic vacancies in VO. PACS: 74.25.Fy; 71.27.+a;