The City of Sealy and the Katy Area Economic Development Council have created a task force to examine the potential closure of a military vehicle manufacturing plant operated by BAE Systems PLC.

Nearly 3,000 jobs in the Sealy area are in jeopardy in the wake of a recent decision by the U.S. Army to award a multibillion-dollar vehicle manufacturing contract to Oshkosh Corp., a BAE competitor.

City officials said Tuesday that the plant contributes an estimated $500 million annually to the state’s economy through employee salaries, contractor expenditures and vendor partnerships.

About 1,000 of the 3,200 jobs at the plant are held by Katy residents.

"While the implications of losing this contract are substantial, there is so much we as a community can do to impact the final chapter of this story," said Lance LaCour, president and chief executive of the Katy EDC.

He said Katy and EDC officials will send letters and arrange meeting with politicians and government officials while trying to generate awareness among the media and general public about the issue.

The task force also includes representatives from CenterPoint Energy, the Greater Houston Partnership, U.S. Rep. Michael McCaul and Texas State Rep. Lois Kolkhorst of Austin County.

A workshop will be held at 6 p.m. at Sealy City Hall on Oct. 29 to organize task force volunteers.

BAE is appealing the contract award decision, citing a flawed bidding process.