I got it working with the help of IBM support. For those interested, here are a few things that weren't exactly straight forward plus some issues we ran into:
1) We had to import Google's CA certificates into DCM using OpenSSL. More info can be found here:
http://docs.bvstools.com/home/ssl-documentation.
2) The SMTP client has to trust these CA certificates you imported.
3) We had to create a certificate for the local iSeries (signed by the Local Certificate Authority) and assign that certificate to the SMTP Client. Not sure why we had to do this, but it didn't work until I did this...
4) The iSeries SMTP client is hard-coded for port 25. Luckily, Google Apps allows SSL through port 25 using
smtp.gmail.com.
5) If you choose to NOT use SSL, you can still use Google SMTP servers as your relay but you'll have to use
aspmx.l.google.com. Make sure to turn off all authentication in the SMTP settings to turn off SSL. You'll probably have to add an SPF record for your domain to allow the IP address of your iSeries (or firewall).
6) Even after I thought we had everything setup correctly, I noticed Google was denying our username/password in the SMTP client trace file even though it was entered correctly. The issue was resolved with the help of this link:
https://support.google.com/mail/answer/14257?hl=en