How to Write a Government Contracting Capability Statement

What Is a Capability Statement?

A capability statement is a concise business document — typically one to two pages — that summarizes your company’s qualifications, competencies, and relevant experience for federal contracting. Think of it as a resume for your business. It’s the standard document that contracting officers, small business liaisons, and prime contractors expect to see when evaluating whether to include you in a procurement.

Unlike a brochure or website, a capability statement follows a recognized format that government evaluators know how to read quickly. A well-crafted capability statement allows someone to assess your qualifications in under 30 seconds, which is often all the time you get at a networking event or industry day.

Essential Elements

Every capability statement should include these core components, organized for quick scanning:

1. Company overview — 1-2 sentences describing who you are and what you do
2. Core competencies — 3-5 bullet points highlighting your primary capabilities
3. Past performance — 2-3 brief project descriptions with agency names, scope, and outcomes
4. Differentiators — What makes you different from competitors (unique technology, cleared staff, niche expertise)
5. Company data — UEI, CAGE code, NAICS codes, DUNS (if applicable), certifications, contract vehicles held
6. Contact information — Key contact name, phone, email, website

Design and Formatting Best Practices

A capability statement should be visually professional without being flashy. Use your brand colors and logo, but keep the layout clean and text-focused. Government evaluators are reading these for information, not aesthetics. A cluttered design with too many graphics, stock photos, or decorative elements actually works against you.

Use a clear hierarchy with bold section headings, bullet points for easy scanning, and consistent formatting throughout. White space is your friend — a packed page with tiny fonts signals that you’re trying to say too much. Keep it to one page for most purposes; two pages only if you have extensive relevant past performance.

Include your company logo, a professional color scheme, and ensure the document looks good both on screen and when printed in black and white. Many contracting officers print capability statements for internal review.

Customization and Targeting

A generic capability statement is a starting point, not a finished product. For maximum impact, create tailored versions for specific agencies, primes, or opportunity types. If you’re attending a Department of Defense industry day, your past performance section should highlight DoD projects. If you’re meeting with a prime contractor on a healthcare IT project, lead with your healthcare IT capabilities.

Maintain a master version with all your capabilities and past performance, then create targeted derivatives that emphasize the most relevant information for each audience. This customization takes time but significantly increases your response rate.