How To Write A Capability Statement For Government Contracting (Layout And Example)
Short answer: a capability statement is a one-page (sometimes two-page) summary of what your business does, what you have done, what makes you different, and the codes a government buyer needs to find and check you. You hand it out at events, attach it to emails, and send it with responses to Sources Sought notices. It is not a government form, so there is no official template. But buyers expect a familiar layout, and the facts on it must be exact.
What A Capability Statement Is For
Government buyers do market research before they buy. They want to know who can do the work, whether enough small businesses exist to set the work aside, and how to reach them. Your capability statement answers those questions in about thirty seconds of reading.
You will use it to:
Respond to Sources Sought notices and Requests for Information.
Introduce yourself to small business specialists and contracting officers.
Pitch prime contractors looking for subcontractors.
Leave behind at industry days and matchmaking events.
Under the FAR rewrite most agencies have used since 2025, a Request for Information is for planning purposes, and responses are not offers. So the capability statement's job is not to win a contract. Its job is to get you considered when the real solicitation is written.
The Six Sections
Most strong capability statements use some version of these six blocks:
Section | What Goes In It |
|---|---|
Header | Company name, logo, one-line description, and the name, phone, email, and website of a real contact |
Core Competencies | Three to six specific things you do well, in the buyer's words |
Past Performance | Three to five relevant projects or customers, with a short result for each |
Differentiators | What makes you a lower-risk or better choice (certified staff, response time, equipment, local presence) |
Company Data | UEI, CAGE code, NAICS codes, Product Service Codes, business size, and any SBA certifications you actually hold |
Contract Vehicles And Payment | Any contract vehicles you hold, and whether you accept the government purchase card |
Keep it to one page if you can. Use plenty of white space. A buyer should be able to find your UEI and NAICS codes in five seconds.
Writing Each Section Well
Core Competencies
Use nouns a buyer would search for: "commercial grounds maintenance," "HVAC preventive maintenance," "Section 508 accessibility testing." Avoid vague claims like "full-service solutions."
Past Performance
Name the customer (with permission where needed), what you did, and a measurable result you can prove. Government work is ideal, but commercial and state or local work counts too. If you have little history, list your strongest commercial projects and the experience of your key people. Our guide to writing past performance shows how to make relevance obvious.
Differentiators
Choose things a buyer cares about: licensed staff, a short response time you can actually meet, local crews, specialized equipment, safety record, or certifications. Each one should be specific and true.
Company Data
This is the part buyers check. Pull your UEI, CAGE code, and NAICS codes straight from your SAM.gov record so they match exactly. Our guide to SAM.gov registration explains where each one comes from.
A Made-Up Example
Here is an example for a fictional company. Every detail is invented.
Lone Pine Grounds Co. | Commercial and Federal Grounds Maintenance
Core Competencies: Mowing and trimming for large sites. Licensed irrigation repair. Tree work up to 40 feet. Snow and ice removal. Storm cleanup within 4 hours, 24/7.
Past Performance: County Parks Department, 180 acres, 3 years, renewed twice. Regional hospital campus, 45 acres, 5 years. Industrial park owners association, 9 sites, 4 years.
Differentiators: Licensed irrigator on every crew. GPS-logged visits shared weekly with the customer. Staging yard within 20 minutes of the base.
Company Data: UEI: [your UEI] | CAGE: [your CAGE] | NAICS: 561730 | Small business under NAICS 561730
Contact: [Name], Owner | [phone] | [email] | [website]
Rules That Protect You
Never claim a certification you do not hold. If you are not SBA-certified as 8(a), HUBZone, SDVOSB, or WOSB, do not list it. Buyers can check SBA's Small Business Search and SAM.gov.
Never stretch the facts. Dates, dollar values, and customer names should match what you would put in a proposal.
Do not use an agency's seal or logo to suggest the agency endorses you.
Keep it current. Update it when your codes, certifications, or best projects change.
Tailor It For Each Buyer
One generic version is a start. A tailored version wins attention. For each agency or prime contractor, move the most relevant competencies and projects to the top, use the words from their Sources Sought notice or mission, and drop anything that does not apply.
Using It With A Sources Sought Notice
When an agency posts a Sources Sought notice on SAM.gov, it usually asks specific questions: your size, your experience with similar work, your capacity, and sometimes your views on the draft requirement. Answer every question directly, attach your capability statement, and follow the submission instructions to the letter. A clear response can help show the agency that capable small businesses exist for this work.
Capability Statement Checklist
One page (two at most), easy to scan.
A real person's name, phone, and email.
Competencies in plain, searchable words.
Relevant past performance with a result for each.
UEI, CAGE, and NAICS codes copied from SAM.gov.
Only the certifications you actually hold.
Saved as a PDF with a clear file name (company name and "Capability Statement").
How GradeTheBid Helps
Your capability statement gets you noticed. Your proposal gets you scored. When the solicitation comes out, GradeTheBid reads it, checks your draft against every requirement, and grades it the way an evaluator would. Pro members can also store capability statements and past performance write-ups in a content library to reuse across bids.
Get Your Free Proposal Grade
When the real solicitation posts, see how your draft scores before you send it.
No credit card. No win promises. Just a clear list of what to fix before you submit. GradeTheBid never submits anything to the government. You download your files and submit them yourself.
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Keep Reading
SAM.gov Registration And Finding Bids: A Plain Guide For Small Businesses
Small Business Set-Asides Explained: Who Qualifies And How They Work
Sources
FAR Overhaul Part 15 (15.101(c), Requests For Information), Acquisition.gov
FAR Overhaul Part 19 (19.104-1, The Rule Of Two), Acquisition.gov
A note on rule numbers: in 2025 the federal government began rewriting the Federal Acquisition Regulation (the Revolutionary FAR Overhaul). Most agencies now use overhaul deviation text, and the formal rule was still in progress in October 2026, so a section number in your solicitation may differ from the one cited here. When they differ, follow your solicitation. GradeTheBid is not a law firm, and this article is general education, not legal advice.
