Getting Started
What Is a Capability Statement?
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A capability statement is a one-page marketing document that introduces your company to federal contracting officers, agency small business offices, and prime contractors. Think of it as your federal contracting resume — it has standard sections, follows established conventions, and needs to communicate your value in under 30 seconds.
Why Capability Statements Matter
Federal contracting is a relationship business. Contracting officers and agency small business specialists meet with vendors, attend industry days, and maintain internal lists of qualified businesses — long before a solicitation is ever posted on SAM.gov. A capability statement is the document you hand someone at an industry day, email after a phone call, or upload to an agency vendor portal to get into that rotation.
Large prime contractors also use capability statements when evaluating small business subcontractors. If you want to be part of a winning team, a capability statement is table stakes.
The 30-second rule
A contracting officer may review 50+ capability statements after an industry day. Yours has approximately 30 seconds to communicate who you are, what you do, and why you're qualified. Everything in your capability statement should serve that goal. If it doesn't, cut it.
The 7 Required Sections
A standard federal capability statement has seven components. Omitting any of them makes your document harder to evaluate and signals unfamiliarity with the federal market.
1. Company Overview
Two to three sentences maximum. State your company name, what you do at the highest level, the markets you serve, and your founding year or years of experience. Do not use this section for a mission statement or company history — that information doesn't help a contracting officer evaluate you.
Example:
"Apex Systems Group provides IT security assessments, penetration testing, and SOC 2 compliance consulting to federal civilian agencies and DoD components. Founded in 2018, we have delivered over 40 federal engagements across DHS, VA, and DoD."
2. Core Competencies
A bulleted list of your five to eight primary service or product areas — not your entire catalog. Use language that mirrors how agencies describe requirements. If you do penetration testing, write "Penetration Testing" not "Offensive Security Evaluation Services." Contracting officers scan for keywords that match their statements of work.
3. Differentiators
The hardest section to write well and the most important. What makes your company different from the next vendor on the list? Differentiators should be specific and verifiable — not marketing language. Examples of weak vs. strong differentiators:
| Weak | Strong |
|---|---|
| Results-driven team | 100% on-time delivery across 40+ federal engagements |
| Industry expertise | Staff hold active TS/SCI clearances (5 personnel) |
| Customer focused | ISO 27001 certified; FedRAMP Authorized platform |
| Innovative solutions | Cleared for CUI handling; NIST SP 800-171 compliant |
4. Past Performance
List two to five relevant contract references. For each, include: the agency name, contract number or description, period of performance, contract value, and a one-sentence description of what you delivered. If you have no direct federal past performance, include state/local government work or relevant commercial work — but be clear about the distinction. Fabricating or inflating past performance is a federal integrity violation.
5. NAICS Codes
List your primary and secondary NAICS codes — the North American Industry Classification System codes that define your industry. These must match the codes in your SAM.gov registration. A contracting officer uses NAICS codes to confirm you qualify as small for their specific solicitation. Including codes that are irrelevant to your actual services dilutes your profile and looks unfocused.
6. Certifications & Set-Aside Status
List any active small business certifications prominently. Include the certification type, certifying body, and expiration date if applicable. Contracting officers looking to fill a set-aside award or meet a subcontracting plan will filter for this immediately.
- 8(a) Business Development Program (SBA-certified)
- SDVOSB / VOSB (SBA VetCert)
- WOSB / EDWOSB (SBA-certified)
- HUBZone (SBA-certified)
- GSA Schedule number (if applicable)
7. Company Identifiers
Include the following identifiers so a contracting officer can pull up your SAM.gov profile instantly:
- UEI — your Unique Entity Identifier from SAM.gov
- CAGE Code — 5-character DLA code (required for DoD work)
- DUNS — include only if still on older documents (deprecated April 2022)
- Entity type — LLC, S-Corp, sole proprietor, etc.
- Business address and point of contact
- Phone, email, website
Where to Submit Your Capability Statement
Agency small business offices
Every federal agency with significant contracting activity has an Office of Small and Disadvantaged Business Utilization (OSDBU). These offices actively maintain vendor lists and connect small businesses with contracting officers. Most have a process for submitting capability statements directly, and many host vendor outreach sessions.
Industry days and pre-solicitation conferences
Agencies post industry day notices on SAM.gov before releasing large solicitations. Attending and distributing your capability statement puts you in front of the contracting officer and program manager who will write the solicitation — and sometimes gets your differentiators reflected in the requirements.
Prime contractor business development teams
Large federal contractors are required to have small business subcontracting plans. They actively look for capable small businesses. Send your capability statement directly to the small business liaison officer at any large prime you want to work with — their contact information is usually on the company's website.
SBA APEX Accelerators
Formerly called Procurement Technical Assistance Centers (PTACs), APEX Accelerators provide free counseling to small businesses pursuing government contracts. They can review your capability statement, help you identify target agencies, and connect you with contracting opportunities. Find your nearest center at apexaccelerators.us.
Common Capability Statement Mistakes
- More than one page. Two pages reads as inability to prioritize. If you can't explain your value in one page, a contracting officer will not do it for you.
- No UEI or CAGE code. Without these identifiers, a contracting officer cannot verify your SAM.gov status. This is the single fastest way to get filed and forgotten.
- Generic differentiators. "Dedicated team" and "customer-focused" are in every capability statement. Specificity — clearances, certifications, delivery rates, unique methodologies — is what makes yours memorable.
- Mismatched NAICS codes. Listing NAICS codes that aren't in your SAM.gov registration creates confusion and undermines your size status claims.
- One version for every agency. A DoD-heavy capability statement sent to HHS reads as copy-paste marketing. Tailor the past performance and differentiators sections for the specific agency or opportunity.
- No contact information above the fold. Put your name, email, and phone number at the top — not buried in a footer where they require scrolling to find.
Finding Opportunities to Use Your Capability Statement
A capability statement only works if you're targeting the right agencies and opportunities. EasyGov syncs from SAM.gov daily and lets you filter by your set-aside certification and NAICS code — so you can see exactly which active solicitations are within your scope before you start outreach.
Related Guides
Frequently Asked Questions
Is a capability statement required to bid on government contracts?
Not technically — solicitations rarely require a capability statement as part of the proposal. But capability statements are the standard way to introduce your company to contracting officers, agency small business offices, and large prime contractors before a solicitation is released. Relationships built through capability statements are often what gets you shortlisted when an opportunity comes up.
How long should a capability statement be?
One page. Government contracting officers and prime contractor business development teams review hundreds of capability statements. A second page is almost never read. Put your most critical differentiators on the front — not buried after a paragraph of company history.
What format should a capability statement be in?
PDF is the universal standard. Keep it under 2MB so it can be emailed easily. Avoid formats that require special software to open. Some agencies accept a one-pager uploaded to their vendor portal, which is typically PDF-only.
Should I have one capability statement or multiple versions?
You should have a master version and agency-specific tailored versions. The core content stays the same, but the "relevant experience" and "differentiators" sections should be swapped out to highlight the work most relevant to the specific agency or solicitation you're targeting. A generic capability statement that mentions the Department of Defense prominently when you're pitching HHS reads as inattentive.
What is a CAGE code and where does it go on a capability statement?
The Commercial and Government Entity (CAGE) code is a 5-character identifier assigned by the Defense Logistics Agency. It's required for all DoD contracts and many other federal contracts. If you're registered in SAM.gov, you were automatically assigned a CAGE code. It belongs in the company identification section of your capability statement alongside your UEI.
What is a UEI and should I include it?
Yes. The Unique Entity Identifier (UEI) is the 12-character code SAM.gov assigns to your entity during registration. It replaced the DUNS number in April 2022. Including your UEI on your capability statement allows a contracting officer to instantly look up your SAM.gov profile and verify your certifications and active registration.