According to Joni Labaqui at WotF, I am now free to sub the BearFic elsewhere. She also says that I should mention in my cover letter that it got an Honorable Mention in the contest, and that will increase its chances of publication.
Now...I'm not so sure. A finalist? Oh, yeah. Semi-finalist? Maybe--eh, probably. Honorable mention? That's way down the totem pole, to me. That's kind of like saying "This story got past the slush reader at Baen's, but Eric and Mike rejected it." I'm really not sure that it's a huge recommendation, especially for the markets on my A list.
*tears out hair* Dammit, I wish I knew the ins and outs of publishing better. Help me out, someone?