A capability statement is a short document, usually one page, that tells a government buyer who you are, what you do, how you are different, and how to contract with you. It lists core services, past performance, differentiators, and company data such as codes, IDs and certifications. Write it for a busy reader, tailor it to each agency, and keep it current.
What it is for
Buyers and program staff use capability statements to learn about vendors before or between solicitations. You hand one out at outreach events and pre-bid meetings, attach it to introduction emails, and sometimes include it in a response.
It is a quick reference, not a brochure. The reader should know in under a minute whether your company fits a need.
A good statement also makes it easy for a buyer to act. If they need a quote from a small business in your field, your contact details and codes should be right there.
The four core parts
- Core competencies: what you do, in plain words and short bullets. Match the language buyers use in their own solicitations.
- Past performance: a few relevant contracts, with the type of client, the work done and the result. Get permission before naming a client.
- Differentiators: what makes you a better choice, stated as facts. Specific is better than impressive.
- Company data: legal name, Unique Entity ID, CAGE code if you have one, industry codes, certifications, and contact details.
Writing tips
- Start with one or two sentences that say what you do and for whom.
- Use short bullets instead of paragraphs.
- Cut words like "world-class" and "innovative" unless you can back them with a fact.
- Use your logo and one accent color, with plenty of white space.
- Save it as a PDF with a clear file name that includes your company name.
- Ask someone outside your company to read it and tell you what you do. If they cannot, revise.
Tailor it to each agency
Keep a master version and make a short tailored version for each agency you target. Move the most relevant services and past work to the top. Add the codes and contract vehicles that agency uses.
Read the agency's strategic plan or recent solicitations, and use the same words they use for the problems you solve.
If you are meeting a buyer in person, bring printed copies and have the PDF ready to send the same day. Follow up with a short note that says what you heard about their needs and how your work matches.
If you plan to work as a subcontractor, make a version for prime contractors too. They want to know what part of a job you can take on, where you work, and how quickly you can start.
Review the master version every few months. Add new contracts, remove old ones, and update certifications as they renew.
Common mistakes
BotBid can draft a first version from your company profile, which you then edit and approve.
- Too long. Two dense pages are harder to use than one clear page.
- Too general. "Full-service solutions" tells the reader nothing.
- Out of date. Expired certifications or old contact details hurt trust.
- Missing IDs. Buyers often need your codes and identifiers to look you up.
- Hard to scan. Tiny fonts, crowded layouts and long sentences make busy readers give up.
Common questions
Is a capability statement required in a bid?
Not usually. Some solicitations ask for one; more often it is a marketing tool used outside a formal bid.
Should I include prices?
No. Pricing belongs in a bid or quote, not a capability statement.
Can a new company with no government contracts write one?
Yes. Use relevant commercial work as past performance, and be clear about what you have done.