Winning government contracts can be a game-changer for small businesses, providing steady revenue, long-term growth, and credibility in the marketplace. However, with fierce competition for these opportunities, standing out to contracting officers and prime contractors is no easy task. That’s where a well-crafted capability statement comes in—your business’s one-page resume that showcases your qualifications, experience, and value. 

A capability statement is a concise marketing document that serves as a "resume" for your business. It highlights your company’s strengths and qualifications, making it easier for government agencies and prime contractors to evaluate your business for contracting opportunities. In a competitive marketplace, a well-crafted capability statement helps small businesses stand out, communicate their value, and establish credibility with procurement decision-makers.

There are two types of capability statements: general and targeted.

 A general capability statement provides an overview of a company’s capabilities and is useful for networking or introductory meetings. 

A targeted capability statement is customized for a specific agency or contract opportunity, aligning directly with their needs and increasing the chances of winning contracts.

A capability statement should be concise, typically one or two pages, ensuring government buyers and prime contractors can quickly assess a company’s qualifications. Every section should be structured for clarity, using precise language and key industry terms to make an immediate impact. Below are the essential elements that every capability statement should include.

A capability statement should be clear, concise (typically one to two pages), and structured for easy reading. 

• Company name and logo

• Title: "Capability Statement"

• Unique Entity Identifier (UEI) and CAGE code

• Socio-economic certifications (e.g., WOSB, SDVOSB, HUBZone)

• Contract vehicles (e.g., GSA Schedule, IDIQs)

The core competencies section highlights your company’s primary services or products. This section should be keyword-rich and formatted with bullet points for easy readability. 

Clearly define what your business does best, ensuring that your capabilities align with the specific agency or prime contractor you are targeting. Avoid vague descriptions—focus on clear, industry-specific terminology that procurement officers recognize.

Showcasing past performance builds credibility by demonstrating experience in delivering results. Highlight relevant projects that closely align with the work you are pursuing, prioritizing contracts with similar agencies or within related industries. 

Where possible, include specific examples, metrics, and outcomes to illustrate your company’s success. If permitted, provide client names and contact details to offer proof of reliability and expertise. The goal is to establish trust and show that your company has a proven track record.

Your differentiators set you apart from competitors and define why a government agency should choose your business over others. This section should emphasize unique qualities, certifications, intellectual property, or specialized expertise that make your company stand out. 

More importantly, connect your differentiators to the specific needs of your target agency or prime contractor. Demonstrate how your strengths provide unique solutions that directly benefit the contracting organization.

The about section serves as a brief but impactful introduction to your company. This can include a catchy tagline, a mission statement, or a short narrative that encapsulates what your business stands for. A strong hook can lead seamlessly into your capability statement’s pitch, making a memorable impression on decision-makers.

This section provides key factual details about your business, reinforcing its legitimacy and operational capacity. It should include:

• Company history, size, and financial stability

• Number of employees

• Geographic area served

• Relevant business classification codes (UEI, CAGE, NAICS)

• Socio-economic certifications

• Other contract vehicles and agreements

The footer ensures government buyers and prime contractors can easily reach out for more information. It should include:

• Primary contact information (name, phone number, and email address)

• Company website

• Primary NAICS codes

By structuring your capability statement with these essential elements, you create a powerful, easy-to-read document that effectively communicates your business’s strengths. An optimized capability statement not only opens doors to new contracting opportunities but also strengthens your company’s position in the competitive government marketplace.

A well-designed capability statement enhances readability and leaves a professional impression on government buyers and prime contractors. A cluttered or poorly formatted document can distract from your message, while a clean layout ensures key information is easily absorbed.

Use a clean, professional design that aligns with your company’s branding, including your logo, colors, and fonts for consistency. You can use graphic design tools like Canva and their resume templates to design and brand your document. Arrange content in a Z format, where the most important information follows a natural reading flow—from left to right and top to bottom. This makes it easier for decision-makers to skim the document and quickly locate critical details.

Choose a highly readable font, such as Arial or Calibri, and limit your color scheme to two or three complementary tones. Avoid excessive graphics—while visual elements can enhance the document, text clarity should remain the priority. Use bullet points, short sentences, and ample white space to ensure effortless scanning.

Your capability statement should be concise, clear, and professional while avoiding unnecessary technical jargon. If you are having trouble writing persuasive professional sentences, you can use an AI tool like Gemini or ChatGPT to help you write provided you have the information to feed it. 

Save and distribute your capability statement as a PDF to preserve formatting and ensure consistency across devices. A PDF also adds a layer of security, preventing unintended edits or formatting issues when viewed on different platforms.

Your capability statement should reflect the most current and relevant information about your business. Regularly review and update it with new certifications, contract vehicles, past performance, or changes to your company’s services. Ensure that your website is also up to date, as government buyers may cross-check your online presence for additional validation.

Before finalizing your capability statement, proofread it for accuracy, clarity, and completeness. Errors or inconsistencies can undermine your credibility. Seek feedback from colleagues, industry experts, or procurement professionals to ensure it effectively communicates your company’s strengths and meets government expectations.

A well-crafted capability statement is only effective if it is strategically distributed and used to build relationships with government buyers. Small businesses that proactively market their capabilities increase their visibility and improve their chances of securing contracts. Below are the best practices for maximizing the impact of your capability statement.

Ensure your capability statement is easily accessible where government buyers and prime contractors look for small business partners. Your company’s profile in the Dynamic Small Business Search (DSBS) and SAM.gov should include an updated capability statement, as contracting officers often use these databases to identify vendors. Keeping these profiles current ensures your business is discoverable when opportunities arise.

Your capability statement is a powerful marketing tool at procurement fairs, industry networking events, and government contracting conferences. Bring printed and digital copies to events where you may interact with government buyers, prime contractors, and procurement officers. 

Proactive outreach is essential in government contracting. Email your capability statement directly to contracting officers, small business liaisons, and potential teaming partners to introduce your business. 

Follow up with a brief call or email to discuss how your company can meet their needs. Persistence and professional follow-up can set your business apart from competitors who rely solely on bid submissions.

Small businesses can increase their chances of winning government contracts by partnering with prime contractors or complementary businesses. Your capability statement should highlight your ability to subcontract or serve as a teaming partner, emphasizing how your skills or certifications add value. Many primes look for small business partners to meet subcontracting requirements—positioning your business effectively can lead to lucrative partnerships.

While a general capability statement provides a broad overview of your business, a targeted version significantly increases your chances of success. Research each agency’s needs and tailor your core competencies, past performance, and differentiators to match their priorities. Using language directly from the request for proposal (RFP) or agency procurement documents strengthens alignment and demonstrates that your business understands their specific requirements.

By consistently applying these best practices, small businesses can transform their capability statement into a powerful tool for securing government contracts, building relationships, and positioning themselves for long-term success in the federal marketplace.

A well-crafted capability statement is more than just a document—it’s a powerful tool that can open doors to lucrative government contracts. By clearly outlining your capabilities and unique value, you can position your business as a strong contender in a competitive marketplace. Take the time to develop and maintain a polished, targeted capability statement, ensuring it aligns with each opportunity. Use it strategically for marketing, networking, and outreach, making it a key part of your business development efforts.