The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Wednesday, September 18, 1996         TAG: 9609180627
SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 
SOURCE: BY TOM SHEAN, STAFF WRITER 
DATELINE: NORFOLK                           LENGTH:   27 lines

SEMCOR'S NAVY CONTRACT ON HOLD UNTIL PROTEST RESOLVED

After winning a $50.6 million Navy contract in July, the diversified engineering company SEMCOR Inc. has halted work on the communications contract because of a protest from a rival bidder.

``We're ready to begin tomorrow if the government says `Go,' '' said Nick Balovich, a SEMCOR divisional vice president in Virginia Beach.

SEMCOR said in July that it planned to add almost 150 employees to its local work force to provide design, installation, maintenance and other services for the Navy In Service Engineering East Coast detachment in Norfolk.

SEMCOR, a diversified engineering firm based in Mount Laurel, N.J., expects to prevail in the dispute and to assemble a team of existing employees and new hires to do the work, Balovich said.

At least a dozen companies had been finalists for the contract, he said. One of these, C3 Inc. of Springfield, Va., filed a protest with the General Accounting Office, a watchdog arm of Congress, shortly after the contract was awarded.

The details of C3's challenge were not available, but the GAO is expected to disclose its ruling in mid-November, said Robert Anderson, public affairs officer at the Fleet and Industrial Supply Center in Norfolk. by CNB