Have a government contract whereas the client has furnished my company with microstation files. We do not have microstation and would like to convert to autocad. These drawings were submitted in DGN format. Any good conversion software, not too expensive, for converting a good file???

Recent version of AutoCAD can open DGN and convert it to DWG. I guess since 2009 or 2010.You don't need additional conversion software.

DGNIMPORT is the command you're looking for. It's been available since Autocad 2008. See here:http://docs.autodesk.com/ACD/2010/ENU/AutoCAD%202010%20User%20Documentation/index.html?url=WS1a9193826455f5ff1f238a510d5d194df1-7fa9.htm,topicNumber=d0e153880