Funny I saw both that and this article concerning Google and gov't in the same day.
Google misses deadline in high-profile LA deal By John Letzing, Dow Jones Newswires Friday 23 July 2010 Internet company required to reimburse city for extra costs associated with missing deadline to deliver Google Apps. http://www.totaltele.com/view.aspx?ID=457311&G=5&C=4&Page=0
Google releases Google Apps for Government and receives FISMA certification as the systems are run in the continental US. Wonder if they'll offer this as an option to the Google Apps for Education customers at some point.