This clearly indicates bribery, no one hears "Microsoft" and thinks enhanced security.
Does Google's professional mail solution support S/MIME? Gmail doesn't, and it's a gaping hole in their messaging offering when compared to pretty much any popular messaging application on the market.
Disclaimer: I work for USGS/DOI.
Yes, that amongst other things. One big aspect of any federal government purchase is the requirement of encryption, and not just any encryption, but FIPS 140-2 compliant encryption systems. As far as I know, Gmail does not support that, while Exchange does.
What's more, about 1/2 the DOI has an MS Exchange-based email system, while the other have (at least the few bureaus that I know of) use a Lotus Notes-based system. So, the idea with this transition is to merge into one solution with the assumption it will be cheaper. (Will it be cheaper? Who knows...)
From what I understand, the Networx transition in DOI underwent a similar problem where the contract was awarded to the incumbent (Verizon) and this resulted in protests.
Overall I like FIPS 140-2 because it means I'm less likely to be sold a snake-oil security product, although it drives up costs inordinately. One example: I just purchased 5 2GB USB drives, for $250. The FIPS compliant price $50/unit where an off-the-shelf USB drive costs ~$8.
All things told, I would love to have a Gmail solution, but until they get FIPS 140-2 compliance, I'm stuck with MS Exchange...sad though it may be.