"close to signing a contract'' related to Bermuda's takeover of the Civil Air Terminal.

"I guess if I was in their position, I would be a little bit embarrassed, too,'' said Management and Technology Minister the Hon. Grant Gibbons, who denied that Government was close to a deal with Frontec Logistics Corp., based in Edmonton, Alberta.

"They're two steps ahead of themselves.'' The reports on Frontec appeared recently in the Financial Post and the Globe and Mail in Canada.

Mr. Ian Hargrave, a Frontec vice-president, told The Royal Gazette yesterday the stories resulted from "probably a slight misquote.

"I don't know how it hit the Press,'' he said. "We're not close to signing a contract.

"I'm trying to get to the bottom of it,'' he said. "I hope the confusion that has resulted hasn't sent too many people into a flurry.'' He said officials from his company recently visited Bermuda and talked to Government about work related to the Civil Air Terminal, which the US Navy is turning over to Bermuda in June, 1995.

But Frontec had not even bid on any work, he said.

Sen. Gibbons said Frontec was one of several companies Government had contacted about help it needed on Base infrastructure, aside from the air operations aspect.

Belco had been asked to help with electrical distribution, but help was also needed on water, telephone, and other items, he said.

Frontec had not necessarily shot itself in the foot, he said. "We will look at them on the same basis we always would -- are they capable of doing the job, and how cost-effective will they be.'' The Hon. Grant Gibbons.