Your capability statement is often the first impression you make on a federal buyer. In fact, research shows that contracting officers and prime contractors spend only 6 seconds scanning a capability statement before deciding whether to keep reading or move on.

That's not a lot of time to make your case.

This guide breaks down exactly what to include in your capability statement, how to format it for maximum impact, and how to tailor it for specific opportunities.

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What Is a Capability Statement?

A capability statement is a one to two-page marketing document that summarizes your company's qualifications, experience, and ability to perform federal contracts. Think of it as your company's resume for government work.

Federal buyers use capability statements to:

• Conduct market research before issuing solicitations
• Identify potential subcontractors and teaming partners
• Evaluate whether your company is a good fit for upcoming opportunities
• Verify your qualifications during source selection

Unlike a corporate brochure, a capability statement is specifically designed for government audiences and follows conventions that federal buyers expect.

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The 6 Essential Sections

Every effective capability statement includes these core sections:

1. Core Competencies

This is the most important section. List 4-6 bullet points that clearly describe what your company does best. Keep each bullet to just a few words.

Good example:

• Cybersecurity Assessment & Authorization
• Cloud Migration (AWS, Azure, GCP)
• Zero Trust Architecture Implementation
• Continuous Monitoring & Compliance

Bad example:

• We provide comprehensive information technology services including but not limited to...

Pro Tip: Your core competencies should align with the keywords that contracting officers search for. Use our NAICS & Keyword Generator to identify the terms buyers actually use.

2. Company Data

Include all the registration and classification data that federal buyers need:

Make sure this data matches exactly what's in your SAM.gov registration. Inconsistencies raise red flags.

3. Past Performance

Include 2-3 relevant contract examples that demonstrate you can do the work. For each project, include:

• Customer/Agency name
• Contract type (if public)
• Contract value (if public)
• Key outcomes or metrics
• Year completed

Example:

Department of Veterans Affairs | IT Modernization | $2.4M | 2024 Migrated 15,000 users to cloud-based collaboration platform, reducing infrastructure costs by 40% and improving system uptime to 99.9%.

If you're new to federal contracting and don't have federal past performance, include relevant commercial or state/local government work.

4. Differentiators

What makes your company different from the hundreds of other contractors offering similar services? This section should answer: "Why should I choose you?"

Strong differentiators include:

• Unique technical capabilities or proprietary tools
• Specialized staff certifications (PMP, CISSP, etc.)
• Security clearances held
• Geographic presence near the customer
• Specific agency experience
• Industry awards or recognition

5. Contract Vehicles

List any contract vehicles you hold that make it easier for agencies to buy from you:

• GSA Schedule contracts
• Agency-specific BPAs or IDIQs
• GWACs (SEWP, Alliant, CIO-SP3, etc.)
• State or local government contracts

Contract vehicles significantly reduce the procurement burden for buyers, making you a more attractive option.

6. Contact Information

Make it easy for buyers to reach you:

• Primary point of contact name
• Direct phone number
• Email address
• Company website
• Physical address
• Social media (LinkedIn company page)

Important: Use a direct phone number and monitored email. Generic info@ addresses often go unchecked.

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Formatting Best Practices

How your capability statement looks matters almost as much as what it says.

Keep It to One Page (Two Max)

Federal buyers are busy. They don't have time to read a novel. The most effective capability statements fit on a single page, with a second page reserved for additional past performance or detailed company data.

Use Visual Hierarchy

• Bold headers for each section
• Bullet points instead of paragraphs
• Tables for company data
• White space to improve readability
• Your company logo prominently displayed

Include Your Branding

Your capability statement should look professional and be consistent with your other marketing materials:

• Company logo in the header
• Consistent color scheme
• Professional fonts (avoid Comic Sans)
• Certification logos (8(a), WOSB, SDVOSB, HUBZone)

Save as PDF

Always distribute your capability statement as a PDF. This ensures:

• Formatting stays consistent across devices
• Easy to email and print
• Professional appearance
• Smaller file size than Word documents

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Tailoring for Specific Opportunities

A generic capability statement is better than nothing, but a tailored capability statement dramatically increases your chances of getting a callback.

Research the Agency

Before meeting with a contracting officer or submitting to a prime contractor, research:

• The agency's mission and current priorities
• Recent contract awards in your space
• The specific office's pain points
• Names of key decision-makers

Use our Small Business Specialist Finder to identify the right contacts at each agency.

Align Your Core Competencies

Reorder or reword your core competencies to match the specific opportunity. If an agency is focused on cloud migration, lead with your cloud capabilities—even if cybersecurity is your primary service.

Highlight Relevant Past Performance

If you have multiple past performance examples, feature the ones most relevant to the target agency or requirement. VA experience matters more when pursuing VA opportunities.

Match Their Language

Use the terminology that appears in the agency's solicitations, strategic plans, and public communications. This signals that you understand their world.

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Common Mistakes to Avoid

Too Much Text

If your capability statement looks like a wall of text, it won't get read. Use bullets, tables, and white space liberally.

Missing or Outdated Data

Contracting officers will verify your SAM.gov registration. If your capability statement shows different NAICS codes or certifications than your official registration, you've created doubt about your attention to detail.

Action Item: Check your Federal Visibility Score to ensure your SAM.gov and DSBS profiles are complete and consistent.

Generic Core Competencies

"We provide quality services to government customers" tells buyers nothing. Be specific about what you do and the outcomes you deliver.

No Call to Action

End your capability statement with a clear next step: "Contact us to discuss how we can support your mission" or "Schedule a capability briefing at..."

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Tools to Help You Build a Better Capability Statement

GovCon in a Box offers several free tools to strengthen your capability statement:

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Capability Statement Checklist

Before you finalize your capability statement, verify:

• Core competencies are specific and keyword-rich
• UEI, CAGE, and NAICS codes are accurate and current
• Past performance includes measurable outcomes
• Differentiators answer "why choose us?"
• Contact information includes a direct phone and email
• Format is clean, professional, and easy to scan
• Saved as a PDF
• Data matches your SAM.gov registration

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Next Steps

1. Check your visibility: Use our Federal Visibility Score tool to see how contracting officers find you today
2. Optimize your keywords: Run your NAICS codes through the Keyword Generator
3. Write your narrative: Use the Capability Narrative Generator to craft compelling descriptions
4. Build your statement: Apply the framework above to create or update your capability statement
5. Get feedback: Have someone outside your company review it for clarity and impact

Your capability statement is a living document. Update it quarterly—or whenever you win a significant contract, add a certification, or change your strategic focus.

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