West Australian shipbuilder Austal has revealed the German firm which won the offshore patrol vessels project was only prepared to throw it some crumbs.
The Turnbull government made a surprise announcement last year that it wanted a role for Austal in the $4 billion project to build 12 vessels despite the company being connected to an unsuccessful rival bid.
The Defence department left it up to the two companies to sort out the commercial arrangements but despite a mediator being brought it was announced in mid-May that Austal won't be involved after all.
Austal chief executive officer David Singleton said the main stumbling block was an inequity in the balance of power of negotiations.
"I don't know they actually felt a keen need for our support. They were confident in their own ability," Mr Singleton said.
"So they didn't feel the need to make any significant compromises."
He characterised the work Lurssen offered to Austal as "minor" and of a low sophistication level.
"It was the sort of work a steel fabricator could do," he told the hearing.
Austal has previously supplied combat ships for the US Navy.
Construction on the patrol boats will begin at the end of this year in South Australia.
While the first two boats will be built in Adelaide, the remainder will be put together in Henderson, WA, from 2020 - when the construction of the future frigates begins.
The new vessels will replace the existing Armidale Class patrol boats.
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