September 28, 2011 – Google and one of its cloud resellers have asked to drop their lawsuit that claimed the federal government wrote a contract for a cloud-based email system that only Microsoft could fulfill.

In the three-page motion to voluntarily dismiss the suit, filed Thursday to U.S. Court of Federal Claims Judge Susan Braden, Google requested that the federal government update its market research and seek procurement of the contract that “will not preclude” fair competition. In October, Google and Onix Networking Corporation filed a protest to the winning bid by Microsoft and its IT supplier, Softchoice, accepted for a deployed email system for nearly 90,000 users with the U.S. Department of the Interior.

Google won an injunction on implementation of the email system in January, in which Braden requested a re-write of the contract, valued at about $59 million. Extensions had been granted over the past eight months as both sides worked over a possible resolution.

Google’s dismissal of the suit still leaves the door open for other future motions on the contract. As is typical with a dismissal, implementation of the contract can now move forward or the Interior Department could seek a new provider following its market research.

Shifting email and other non-mission critical documents to the cloud is part of a big push with government IT measures under federal CIO Steven VanRoekel and his predecessor, Vivek Kundra.

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