Microsoft sues Iowa over cloud computing contract

The Microsoft Corporation has filed a lawsuit claiming the State of Iowa unfairly gave an approximately $7 million contract for cloud computing to a Google-affiliated company.

Microsoft's petition for judicial review, filed Thursday in Polk County District Court, claims the Iowa Department of Administrative Services waived core contract requirements for Tempus Nova and its bidding partner Google Inc., but disqualified Microsoft and other bidders for not meeting a requirement about experience level.

'Microsoft has that experience and is, in fact, one of the most experienced public sector cloud vendors in the United States,' the suit states.

Requirements waived for Tempus Nova include compatibility with Microsoft products, which could mean state employees wouldn't be able to send large Word or Excel files, and background checks for vendor employees, Microsoft claims. Since the FBI requires partner law enforcement agencies to have background checks for people with computer access, the Iowa Department of Public Safety may not be able to use Iowa's cloud system, the lawsuit states.

The Tempus Nova solution also lacks the ability to retain records as required by Iowa's Open Records law, the suit claims.

Microsoft appealed the Sept. 18 bid award last fall. Administrative Law Judge Heather Palmer heard the appeal Nov. 19 and sided Dec. 23 with the Administrative Services Department.

Department Spokesman Caleb Hunter said Friday the agency does not comment on pending litigation.