How to Write a Capability Statement for Government Contracting

A capability statement is the single most important marketing document in government contracting. It is a one-page summary of what your business does, who you have worked for, and why a government buyer should choose you.

Think of it as your business resume. Government contracting officers, prime contractors, and Small Business Liaison Officers all ask for it. If you don’t have one, you are not ready to compete.

This guide is Step 3 of our 5-STEP START HERE PATH. You should have already completed Step 1: Understand the Basics and Step 2: Register Your Business.

What Is a Capability Statement?

A capability statement is a one-page document that introduces your business to government buyers. It answers three questions in about six seconds of reading time:

1. What does your company do?
2. What makes you qualified?
3. How do I contact you?

Contracting officers review dozens of capability statements when researching potential vendors. They spend about six seconds on the first look. If yours is clear, professional, and relevant, they read further. If it is cluttered, vague, or missing key information, it goes in the discard pile.

You will use your capability statement at industry days, matchmaking events, meetings with contracting officers, and when responding to Sources Sought notices. Prime contractors also request them when looking for subcontractors. It is the document you hand someone when they ask, “What does your company do?”

The 6 Sections Every Capability Statement Needs

1. Core Competencies

List 3 to 5 specific things your business does best. Not a general description of your industry. Specific services or products you deliver.

Weak: “We provide IT services.”

Strong: “Network security assessments, cloud migration (AWS/Azure), and cybersecurity compliance consulting (Cybersecurity Maturity Model Certification, Federal Risk and Authorization Management Program).”

Use the language the government uses. If the government calls it “facilities maintenance,” don’t call it “building management solutions.” Match your terminology to the solicitations you want to win.

2. Past Performance

List 2 to 4 relevant contracts or projects you have completed. For each one, include the client name, a brief description of the work, the contract value (if allowed), and the outcome.

Government past performance matters most. But if you are new to government contracting, commercial work counts too. A janitorial company that has cleaned office buildings for five years has relevant past performance for General Services Administration (GSA) building maintenance contracts, even if those clients were all private companies.

If you have zero past performance: This is the most common fear for new contractors, and it is solvable. Here is what to do:

• List relevant commercial projects. Commercial experience is legitimate past performance.
• Highlight the qualifications and experience of your key personnel. If your project manager has 15 years of federal IT experience from a previous employer, that counts.
• Start with micro-purchases (under $15,000 as of 2025). These require minimal past performance evaluation. Each one you complete becomes past performance for the next opportunity.
• Pursue subcontracting work under an experienced prime contractor. Every subcontract you complete builds your track record.

3. Differentiators

What makes your business different from the other 50 companies that do the same thing? This section answers the question, “Why you?”

Strong differentiators include:

• Certifications relevant to your industry (ISO 9001, CMMC, professional licenses)
• Specialized equipment or facilities
• Geographic proximity to the work site
• Security clearances held by your team
• Proprietary technology or processes
• Industry awards or recognition
• Speed of delivery or response time

Avoid vague differentiators like “dedicated to excellence” or “customer-focused solutions.” Every company says that. Be specific.

4. Company Data

This section gives contracting officers the technical details they need to determine if you qualify for their opportunity:

5. Contact Information

Make it easy for someone to reach you. Include:

• Company name and logo
• Primary contact name and title
• Phone number (one that someone answers)
• Email address
• Website URL
• Physical address

Use a professional email address (yourname@yourcompany.com), not a free email service. Government buyers notice.

6. Company Overview

A brief paragraph (2 to 3 sentences) describing your company, when it was founded, and your mission. Keep this short. The rest of the document does the heavy lifting.

Design Rules That Work

Your capability statement does not need to look like a design agency made it. But it does need to look professional. Here are the rules:

One page only. No exceptions. If it spills onto a second page, cut content. Contracting officers will not read a two-page capability statement.

Use your company colors and logo. Brand consistency signals professionalism.

Use clear headings. Each section should have a visible header so readers can scan quickly.

Leave white space. Cramming every inch of the page with text makes it unreadable. Give the content room to breathe.

Use a readable font. Stick to professional fonts like Arial, Calibri, or similar. Minimum 10-point for body text.

Save as PDF. Always send your capability statement as a PDF, not a Word document. PDFs maintain formatting across devices.

4 Types of Capability Statements

One size does not fit all. Experienced contractors maintain multiple versions:

Start with one general marketing version. As you pursue specific agencies or opportunities, create tailored versions that speak directly to what that buyer needs.

7 Mistakes That Hurt Your Credibility

1. No UEI or CAGE code. This tells the buyer you are not registered in SAM.gov, which means you cannot receive contracts. Register first.
2. Vague core competencies. “Full-service solutions provider” means nothing. Be specific about what you do.
3. Missing NAICS codes. Contracting officers search for vendors by NAICS code. If yours are not listed, you won’t be found.
4. Too long. Two pages, three pages, five pages. Stop. One page. Period.
5. Free email address. Using gmail.com or yahoo.com for your business contact looks unprofessional. Get a company domain email.
6. Outdated information. An expired SAM registration, old phone numbers, or discontinued services undermine trust. Update your statement every time something changes.
7. No past performance at all. Even if you are brand new, list your commercial experience. An empty past performance section signals “never done this before” when you may have years of relevant commercial work.

Where to Use Your Capability Statement

• Industry days and procurement conferences. Agencies host events specifically to meet potential contractors. Bring printed copies.
• Meetings with Small Business Liaison Officers (SBLOs). Every federal agency has an Office of Small and Disadvantaged Business Utilization (OSDBU). Schedule a meeting and bring your capability statement.
• Sources Sought and RFI responses. When agencies are researching the market before issuing a solicitation, they often ask for capability statements.
• Your website. Post a downloadable PDF on your website. Make it easy for contracting officers to find you.
• APEX Accelerator counseling sessions. Your APEX Accelerator counselor (formerly Procurement Technical Assistance Centers) will review your capability statement and give you feedback. This service is free. Find yours at aptac-us.org.
• Prime contractor outreach. When approaching a large contractor about subcontracting opportunities, your capability statement is your introduction.

Frequently Asked Questions

Do I need a designer to make a capability statement?

No. A clean Word document or PowerPoint saved as a PDF works. Use your company colors, a readable font, and clear headings. The content matters more than the design. Your APEX Accelerator can also help you format it for free.

How often should I update my capability statement?

Update it every time you win a new contract, earn a certification, change your NAICS codes, or add a new service. At a minimum, review it every six months. An outdated capability statement is worse than no capability statement.

Can I use the same one for every opportunity?

You can, but tailored versions perform better. A general version works for networking. For a specific agency or opportunity, customize your core competencies and past performance to match what that buyer needs.

What if I have no government past performance?

List your commercial past performance instead. Private sector work in the same industry is relevant and acceptable. You can also highlight your team’s individual experience from previous employers. Start with micro-purchases (under $15,000 as of 2025) to build government-specific past performance quickly.

Where can I get free help with my capability statement?

APEX Accelerators (300+ local offices nationwide) and Small Business Development Centers (nearly 1,000 locations) both provide free counseling, including capability statement review. Your local Small Business Administration (SBA) District Office can also help. Find free help at sba.gov/local-assistance.

Your Next Step

You now know what goes into a capability statement, how to design it, and where to use it. That is Step 3 complete.

Step 4 is finding government contract opportunities. You will learn how to search SAM.gov, set up email alerts, and identify contracts that match your business. This is where your capability statement starts working for you.

Continue to Step 4: Find Opportunities →

This article is for informational purposes only. It is not legal, financial, or regulatory advice. Consult with qualified professionals for guidance specific to your business.