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SEALY, Texas -- Some residents of the town of Sealy are worried about job cuts after a major employer lost its contract with the Army.

BAE Systems is the maker of the U.S. Army's family of medium tactical vehicles (FMTV) -- the trucks soldiers use at war. It's the biggest employer in town.

The company employs about 3,200 people in the region, and it will stop making FMTV's at the beginning of next year. The contract is going to another company in Wisconsin.

We obviously disagree with that decision, said U.S. Rep. Michael McCaul, R-Austin at a press conference Monday. We think that it's a wrong decision.

Politicians won't flat out say it's a decision driven by politics.

When you see jobs being taken out of a red state and taken to blue states, that's a concern, McCaul said.

Here's how the contract ended up in Wisconsin. When BAE Systems gave 11 News a tour of their facility back in November, the company had just filed a protest with the Government Accountability Office to try to keep the contract in Texas. And even though the GAO sided with BAE, the Department of Defense said, No, the contract is going to Wisconsin.

In a statement, BAE Systems said:

It is too early to say what the long-term impacts of the Army's decision will have on our tactical vehicles business, but we know that it poses a significant threat to our Sealy, Texas, operations.

BAE Systems' legal team was weighing the company's three options Monday: File another protest with the GAO to try to get the contract back, file a federal lawsuit or accept the decision made by the Department of Defense and simply seek a contract in private industry.

Politicians said the city has already gotten calls from companies possibly interestedin takingover the space, but said it's too early to expand on that further.

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