As many people know, Google’s based in California, the City of Los Angeles is adopting Google Apps, and Google Apps for Government was recently announced.  But despite these facts, Google might have been more or less blocked from bidding on an email contract involving California’s state government.

That’s Google’s position, at least, as it looks like the $60 million contract will go to CompuCom Systems, an IT outsourcing company with ties to Microsoft.  Google isn’t exactly hiding its displeasure, either.

Marc Lifsher and David Sarno explained earlier this morning, "Now, the Internet giant is accusing Gov. Arnold Schwarzenegger’s administration of rigging the bidding system in favor of its rival in Redmond, Wash."

As for how things got to this point, the pair reported, "Google spent months trying to compete in the contract bidding process but never formally joined the race because state officials drew up a lengthy list of requirements the company said were impossible for it to meet."

Of course, $60 million isn’t much to Google.  The bigger deal is that the organization’s lost an opportunity to get a toehold in the government IT space, and another chance may not come along for a little while.

Microsoft, for the record, has more or less stayed out of the fight, just commenting on its qualifications.