Its sounds like the cherry switch is either bad or out of adjustment. Some folks have had good luck bending the metal actuator arm down so it makes better contact with the cam on the axle.
I believe the cherry switch on this model is mounted in the top of the front set of drivers. You'll need to remove the front set of drivers to get at it.
Heres the parts listing for that loco: Lionmaster bigboy
The cherry switch is only $1.50 ,but keep in mind lionel charges flat rate shipping so if theres anything else you need/could use, i.e. smoke wicking etc. You might want to grab that too.