The contract for up to 2400 armoured and conventional trucks was awarded last October, but has since run into trouble.

One of the unsuccessful tenderers, Thales Australia was playing its cards close to its chest yesterday. A Thales spokesman said the company had made a highly competitive, but ultimately unsuccessful bid for the truck segment of the LAND 121 Phase 3 in conjunction with the Oshkosh Corporation in the United States.

He said the company had been contacted by the Defence Mobility Organisation about the revision of Phase 3 tendering process and would consider its response when the Commonwealth began the new tendering process.

Bendigo MP Steve Gibbons, who has closely followed the success of the Bendigo defence manufacturer in its Bushmaster program, said the circumstances could provide a new opportunity for Thales and, if successful, significant benefits for the Bendigo manufacturer. The failed contract could cost the Federal Government $30 million and potentially add $300 million to the overall cost of the project.

Mr Gibbons blamed the former Howard government for rushing the awarding of the tender in a bid to win votes ahead of the last election.

‘‘This is yet another nightmare capability project we’ve inherited from the previous government,’’ Mr Fitzgibbon said.

‘‘And this time we’re not talking about a complex project like a Seasprite helicopter . . . every army around the world operates trucks.’’

Mr Fitzgibbon accused the former defence minister Brendan Nelson, now the leader of the Opposition, of failing to give the Defence Department enough time to test the vehicles before making the decision.