The decision to build patrol boats in Western Australia is "bloody stupid", Federal Government backbencher Warren Entsch has said.

Key points: Queensland MP Warren Entsch had been lobbying for the boats to be built in Cairns

Queensland MP Warren Entsch had been lobbying for the boats to be built in Cairns Questions whether successful bidder is up to the job

Questions whether successful bidder is up to the job Disputes Cairns proposal was 60 per cent more expensive

Business leaders in Cairns were hopeful for the contract to construct 21 Pacific patrol boats in the far north Queensland city. Instead, the contract went to Western Australian company Austral.

Mr Entsch has blasted the Defence Minister's staff and complained directly to Prime Minister Malcolm Turnbull about the decision.

Mr Entsch, the Member for Leichhardt in far north Queensland, had been lobbying for the boats to be built in Cairns.

"I don't support the decision — quite frankly I think it was bloody stupid," he said.

"I'm not going to just step down and accept it and just be a noddy in the background trying to justify what I see as a bad decision."

Mr Entsch also told the ABC he was "furious" about the way the announcement was handled.

"The fact that I had to be told by the proponents of the unsuccessful bidders that they'd missed out before the [Defence] Minister [Senator Marise Payne] had the courtesy of getting [her] staff to come down and speak to me," he said.

"I gave them short shrift in no uncertain terms."

Questions whether successful bidder up to the job

When asked if he was considering his future in the LNP Mr Entsch replied: "I've got a lot more information that I have to talk to them about before I do anything".

"I need to know what the hell they're going to do with this and the reasoning behind it," he said.

"Once I've had that I will make further comment on it."

Mr Entsch questioned whether the successful bidder was up to the job.

"My understanding is that Austal only build aluminium boats," he said.

"This will be the first steel hull boat they're going to build so there's an element of experimenting there that bothers me.

"I look at the Customs boats that were built there and I tell you what they weren't the most successful vessels."

Mr Entsch was told the Cairns proposal was 60 per cent more expensive.

"I don't accept that — I want to see some figures that would justify that because I find that hard to believe," he said.

"I want to find out what arrangements they've made in relation to variations because they go in for something cheap as chips just to get the contract, and then justify that their costs overruns and by putting in variation you end up paying three times the price."

Senator Payne said she was aware of Mr Entsch's comments.

"In accordance with the requirements of the Defence Procurement Policy Manual and the Commonwealth Procurement Rules, the Government is required to ensure that any procurement achieves a value for money outcome," she said in a statement.

"The Government's decision was based on an open competitive tender process and a comprehensive assessment of value for money.

"A formal briefing has been organised for Mr Entsch on Tuesday morning with a senior Defence official to provide him with further detail on that assessment."