Reflecting pool contract has inflated profit margin, report finds

2 min readUpdated May 27, 2026

Federal documents obtained by The New York Times reveal that an internal Park Service review flagged the profit margin charged by the no-bid contractor repairing the Lincoln Memorial Reflecting Pool as inflated and excessive.

The review, conducted by a Park Service contracting specialist, established that federal construction work of this type customarily carries a profit margin of 6% to 12%. Atlantic Industrial Coatings, the Virginia firm doing the work, billed at 20% — a markup that pushed costs at least $850,000 higher than a standard contract would have required.

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The full $13.1 million bid, inclusive of the 20% overhead and profit rates, was signed off by a senior civil servant in the Park Service contracting office, who concluded that the uncertainty and difficulty of the project justified the higher compensation, The Times reported. In the words of the Park Service review, the overhead and profit rates together "appears excessive."

Beyond the pricing questions, the contractor also encountered technical setbacks. Two separate attempts by the contractor to seal the concrete slab joints came up short earlier this month, leaving the firm and the Park Service searching for a workable solution, according to The Times. Persistent leaking through those joints has been an unresolved problem at the pool for decades.

The total cost of repairs is nearing $15 million when a separate $1.74 million contract to replace the pool's filtration system is included, according to abc News. Neither contract went through a competitive procurement process; the Interior Department justified the approach by invoking the nation's approaching 250th birthday as grounds for "unusual and compelling urgency."

The Cultural Landscape Foundation, a preservation nonprofit, has taken the dispute to federal court in Washington, where it is asking a judge to stop the work on grounds that the Trump administration moved forward without satisfying its obligations under the National Historic Preservation Act. Interior Department officials have pushed back on the criticism, with a spokesperson telling CBS News that the Park Service had selected the right firm to get the work done quickly before the anniversary festivities.

Government analysis flags 'inflated' profits in no-bid reflecting pool deal, NYT reports

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