787 F.3d 1206 (Fed. Cir. 2015)
Lincoln v. United States is a landmark case in federal contract law focusing on the liability of government contractors.
Is the United States liable for increased service costs under a federal contract when the contract terms are ambiguous regarding cost reimbursement?
In cases of federal contracts, when terms are ambiguous, the doctrine of contra proferentem applies, where any ambiguity is construed against the drafter of the contract, typically the federal agency.
The Federal Circuit held that the United States was liable for the increased costs under the principle that ambiguities in federal contracts are construed against the federal agency, the drafter of the contract.
This case is significant as it reinforces the doctrine of contra proferentem in federal contracts, ensuring that ambiguities are construed against federal agencies. It impacts the drafting of future federal contracts and the defense strategies employed by contractors, emphasizing the need for clarity and precision in contractual language.