I agree with Chuck, a bulge is all the way around and to do the job right, the barrels have to be seperated.
Also in both a dent and a bulge, both areas are stretched, the one outward and the other inward, metal is still thinned in both.
I have taken out dents in both Damascus and steel barrels. I find out what the bore size is before the dent and make a mandrel 3 1/2" long and .002 undersize of bore before dent. It is tapered the first 1 1/2" and on the other end is drilled and tapped for a 3/8"-16 thread in which I used a threaded rod covered with tygon tubing to protect the barrel. I usually heat the barrel in the dented area, but not so hot that I can't touch it. I tap the mandrel down under the dent until it is tight. I use a flat hammer face, almost like a fender hammer for autos, and tap the area and then tap the mandrel again. I do this until the whole mandrel moves easily in the bore.
Sometimes with Damascus, after warming the barrel and taping the mandrel in, a slight dent without a crease, will come out with out taping on the barrel.
Dents are not hard to remove, and sometimes you don't have to re-blue them.
In the original post, a .002 bulge in my opinion isn't worth the trouble to fix. I would make a gage that just fit on the barrel where the bulge is, and shoot the gun and use the gage to see if it gets any worse. If not shooting low pressure, low velocity loads, now is the time to do so.
