U.S. Sen. Tammy Baldwin is urging the U.S. Army to reconsider its decision to award AM General an $8.7 billion contract to build the military's Joint Light Tactical Vehicle.

In a letter sent to the Army on Wednesday, Baldwin said she has multiple concerns about the decision to end Oshkosh Corp.'s seven years of building the troop transport truck, including the potential for a gap in new truck deliveries between the end of the current contract next year and the start of production at a plant that AM General is building in Indiana.

Baldwin also urged the Army to take a closer look at the South Bend, Indiana company's finances in light of a Jan. 19 Moody's analysis that gave AM General a "negative" credit rating outlook.

The report cited the company's "very high financial leverage and weak liquidity," and its "limited capacity to absorb unanticipated operating or financial setbacks."

A 2020 acquisition of the company by New York-based private equity investors KPS Capital Partners left AM General with $675 million in debt.

While it gave the company a negative rating, Moody's also cited some strengths, including AM General's production of the Humvee military truck, although it pointed out that the current contracts expire in 2024 and its unclear what the terms will be of a new contract currently being negotiated.

"In addition to the high start-up costs and a weak financial position, AM General’s reported low bid on JLTV and the historically low-margin nature of (tactical vehicle) manufacturing contracts could create a scenario in which the JLTV award lowers the company’s profitability and actually worsens its finances," Baldwin wrote.

Oshkosh Corp. President and CEO John Pfeifer previously said Oshkosh Corp. would lose money building JLTVs at the price AM General submitted, even with an up and running plant in Oshkosh that has produced 20,000 JLTVs since 2016.

More: CEO says Army truck contract awarded to AM General would be financial loser for Oshkosh Defense

The U.S. Government Accountability Office is expected to rule by June 14 on Oshkosh Corp.'s protest of AM General's contract. If the GAO sustains the protest, its decision would only be advisory; the Army would be able to stick with AM General, award the contract to Oshkosh Corp. or seek an alternative solution.

AM General declined to comment on Baldwin's letter, the contract or how far along it is in preparing for JLTV production. The South Bend Tribune last month reported that work is underway on a 74,000-square-foot manufacturing plant expansion with an estimated cost of $68.3 million.

The Army's five-year, $8.7 billion contract with AM General calls for the company to make more than 20,000 JLTVs and nearly 10,000 trailers. The contract includes a five-year renewal option.

In the letter, Baldwin said AM General's low bid, coupled with its lack of financial resources "could create a scenario in which the JLTV award lowers the company’s profitability and actually worsens its finances. There seems to be sufficient evidence to justify further inquiry into how the company will bear these startup costs given its credit situation."

“I am concerned that the Army overlooked critical company information during the award process — specifically AM General’s 'very high credit risk' as a result of the leveraged buyout its private equity ownership group used to acquire the company — and the impact of high leverage on the company’s ability to stand up a new production line in a timely fashion,” Baldwin said in a statement.

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This article originally appeared on Milwaukee Journal Sentinel: Wisconsin Senator urges Army to reconsider AM General's JLTV contract