The Next Web is reporting that the US Government and Google are in talks over a contract that would license Google Apps to the whole US Government staff. The contract totals up-to $50 million dollars. The US Gov is also considering Microsoft’s productivity suite.

Microsoft’s suite could be considered pretty solid, but also pretty bland. Many corporations, and school districts, are currently using Microsoft’s suite. Some would say it’s in a good spot, but when compared to Google it just not up-to par (in my opinion). Many city governments are already using Google Apps.. so let’s call this a fair fight.

The US Government is currently reviewing the terms, and will soon select which company they’d like to side with. At any rate, both companies are probably opening their arms to $50 million, so it’ll be interesting to see how this plays out.