The tender for up to 2400 armoured and conventional trucks was awarded to BAE Systems in October last year.

It’s believed the tender, announced by then defence minister Brendan Nelson, was meant to be a straightforward purchase of trucks already available, but defence ordered trucks in sizes, which had not previously been manufactured, it has been reported.

Defence minister Joel Fitzgibbon has confirmed the Project Overlander tender would be let again, saying the bungle could cost the Government $30 million and a new tender could add $300 million to the overall cost.

It was another “nightmare” capability project inherited from the Howard government, he said.

Mr Fitzgibbon accused Dr Nelson, now Opposition leader, of failing to give defence enough time to test the markets or test the vehicles before making the decision.

The Opposition says suggestions of political interference in the tender process are completely false.

“It was the Department of Defence that decided the winning tenders and the Howard government’s national security committee signed off on defence’s recommendation,” Opposition defence spokesman Nick Minchin said in a statement.

“To claim this timetable was somewhat rushed is absurd.

“Any problems with this project have emerged in the past nine months during the contract negotiations phase and Mr Fitzgibbon must take full responsibility for them.”