A recent analysis by the National Park Service has raised concerns over the profit margin awarded to the contractor engaged in repairing the Lincoln Memorial Reflecting Pool in Washington, D.C. Federal documents reveal that the Virginia-based Atlantic Industrial Coatings was granted a no-bid contract with a profit margin significantly above typical federal construction standards.
While federal contracts of this nature usually include profit margins ranging from 6 to 12 percent, Atlantic Industrial Coatings submitted a bid with a 20 percent profit margin, contributing at least $850,000 more than the usual range. The overall contract price approved by the Park Service stands at $13.1 million—approximately seven times the initial cost estimate cited by then-President Donald Trump. A Park Service contracting official justified the higher rate by citing the complexity of the project and tight schedule.
The repair work is part of a broader initiative led by the Trump administration aimed at refurbishing key Washington landmarks ahead of the United States’ 250th anniversary celebrations. Several of these projects have employed expedited contracting procedures, including bypassing the standard competitive bidding process. Interior Department officials defended the approach, emphasizing the need to expedite the timeline by deploying more labor, materials, and equipment.
Critics argue that the no-bid contract process raises risks of overspending and inefficiency. John Hart, CEO of the watchdog group Open the Books, expressed skepticism about the lack of competitive bids and questioned the administration’s justification of urgency, noting that the nation’s semicentennial anniversary has been anticipated for decades. Hart indicated that this contracting method could enable excessive spending without sufficient accountability.
The contract was awarded using a “letter contract,” a mechanism typically reserved for urgent scenarios requiring immediate start of work before finalizing costs. Experts say such contracts are rare and intended for emergencies like disaster response or infrastructure failure. Some industry analysts caution that this approach reduces the government's bargaining power and may contribute to inflated costs.
Since the project began, Atlantic Industrial Coatings has encountered difficulties with a critical aspect of the work—sealing the gaps between the pool’s concrete slabs. These gaps have caused water leakage for decades, and the pool has been notorious for persistent leaks and algae problems despite prior renovations during the Obama administration, which spent more than $35 million attempting repairs. Documents indicate that the contractor’s initial efforts to fill and seal these expansion joints failed during tests, necessitating removal and reapplication of materials. The Interior Department has not disclosed whether a viable solution has since been implemented.
Funding for the project includes about $7 million drawn from national park entrance fees and additional funds from senior visitor pass sales. Atlantic Industrial Coatings, based in New Canton, Virginia, had no prior federal contracts before being selected. The company has declined to comment on the contract or its performance.
Though President Trump defended the contract cost during a Cabinet meeting, contrasting it with previous unsuccessful repair attempts by the Biden and Obama administrations, details regarding the specific decision-making process for awarding the no-bid contract remain unclear. The project’s deadline is set for completion by July 4, though initial government documents referenced a May 22 target. The repair’s progress and final outcomes continue to be monitored amid scrutiny over both costs and technical challenges.