MADISON, Wis. (AP) -- The state suspended consideration of bids to operate a new statewide student information system after it discovered a Wisconsin-based company in the running had been offered tax breaks if it won the contract.

The state Department of Administration said it suspended Tuesday's original due date for bids after learning that the Wisconsin Economic Development Corporation had made what it calls a "soft offer" of economic development assistance to Skyward contingent upon it winning the bid.

The Stevens Point information technology company sells management software for schools and already serves about half of the state's school districts.

The DOA says in its statement that directly linking a tax credit to the successful award of a state contract violates the spirit of a competitive bid process.