How to Create a Capability Statement

A capability statement is a one-page marketing document that summarizes your company's qualifications for government contracting. Think of it as your business card on steroids — it is often the first impression a contracting officer has of your company.

This video walks you through creating a professional capability statement that gets results.

Why Capability Statements Matter

Contracting officers and prime contractors receive hundreds of inquiries. A professional capability statement:

• Gets you in the door — It is expected at industry days, networking events, and initial meetings
• Establishes credibility — A polished statement signals you are a serious contractor
• Saves time — COs can quickly assess if you are a fit without a lengthy conversation
• Stays on file — Your statement may be pulled months later when an opportunity arises

The Essential Elements

Every capability statement needs these components:

1. Company Overview — Two to three sentences describing who you are and what you do. Be specific about your niche.

2. Core Competencies — Your primary services or products. Use bullet points and action verbs. "Provide," "Deliver," "Manage."

3. Differentiators — What makes you different from competitors? Unique certifications, proprietary technology, specialized expertise.

4. Past Performance — Three to five relevant contracts or projects with agency names, contract values, and brief descriptions.

5. Company Data

• CAGE Code
• UEI Number
• NAICS Codes (primary and secondary)
• Small Business Certifications (8(a), HUBZone, SDVOSB, WOSB, etc.)
• GSA Schedule number (if applicable)

6. Contact Information — Name, title, phone, email, website, and physical address.

Design Best Practices

Your capability statement should be visually professional:

• One page only — Two pages is too long. COs will not read it.
• Color and branding — Use your company colors consistently. Include your logo.
• White space — Do not cram too much text. Leave room to breathe.
• Readable fonts — Stick to professional fonts at 10-12pt minimum.
• Visual hierarchy — Use headers and sections to guide the reader's eye.

Common Mistakes to Avoid

• Being too generic — "We provide quality services" tells them nothing. Be specific.
• Missing CAGE code or UEI — These are essential for the government to verify you.
• Outdated information — Review and update your statement quarterly.
• No past performance — If you lack government experience, use relevant commercial projects.
• Poor design — A Word document with clip art screams amateur. Invest in professional design.

Tailoring for Specific Opportunities

The most effective contractors create multiple versions of their capability statement:

• Agency-specific versions — Highlight past work with that agency and related NAICS codes
• Service line versions — If you offer IT and construction, create separate statements
• Prime contractor versions — Emphasize teaming experience and subcontracting capacity

Where to Use Your Capability Statement

• Industry days and networking events
• Response to Sources Sought notices
• Meetings with contracting officers
• Prime contractor teaming outreach
• Attached to proposals (when requested)
• Your website downloads page