Google Wins U.S. Government Contract for Email, Collaboration Software

The US Department of Interior has chosen to use Google Inc.'s online email and collaboration offerings over software from rival Microsoft Corp., marking Google's second major victory in a quest to sell such services to government agencies.

The agency, which includes the National Park Service, announced a contract that is expected to shift more than 90,000 of its employees to Google's online offerings from the "seven on-premise email systems" being used today.

It valued the contract at $34.9 million over seven years.

The Interior Department decision completes a comeback win for Google, which in 2010 sued the department after it chose to award a five-year, $59.3-million contract to use Microsoft's competing suite of online software.

Google alleged the agency favored Microsoft in setting criteria for bids to provide the new email system. Google dropped the suit late last year after the agency said it would reconsider alternative bids for the contract.