How to Write a Capability Statement for Government Contracts

A capability statement for government contracts is the single most important marketing document your business can have when pursuing public-sector work. Government agencies spend hundreds of billions of dollars each year on contracts with private businesses, but before you can win any of that work, you need this one document. Think of it as a resume for your company. If yours is weak, vague, or missing, contracting officers will move on to someone else. This guide shows you exactly how to write one that gets you noticed.

Why Government Agencies Care About Capability Statements

Government contracting officers review dozens, sometimes hundreds, of vendors for a single opportunity. They don't have time to dig through your website or call you for details. Your capability statement is the first and often only document they use to decide whether you make the shortlist.

Here is what contracting officers are looking for when they read yours:

• Relevance: Do your core competencies match what they need?
• Proof: Have you actually done this work before, and can you document it?
• Compliance: Are you registered in SAM.gov? Do you have the right NAICS codes?
• Set-aside eligibility: Do you qualify as a small business, 8(a), HUBZone, WOSB, SDVOSB, or other socioeconomic category?

If your capability statement clearly answers these four questions, you are ahead of most competitors. Many small businesses either skip the capability statement entirely or put together a generic brochure that doesn't speak the language of government contracting. That is the gap you are going to fill.

The 6 Essential Sections of a Government Capability Statement

There is no official government template for capability statements, but after years of use, a standard format has emerged. These are the six sections every contracting officer expects to see.

1. Core Competencies

This is the most important section. List 4-6 specific services you deliver. Don't be vague. "Facility services" tells a contracting officer nothing. "Post-construction cleanup for Class A commercial buildings" tells them exactly what you do.

Write your core competencies using language that matches government solicitations in your industry. If agencies in your space use the term "custodial services" instead of "cleaning," use "custodial services." If they say "integrated pest management" instead of "bug spraying," match their language.

2. Past Performance

Government agencies are risk-averse. They want to hire companies that have already done similar work successfully. Include 2-3 of your most relevant contracts or projects. For each one, provide:

• Client or agency name
• Contract value (or approximate range)
• Scope of work (one sentence)
• Measurable outcome or result
• Period of performance

If you don't have government past performance yet, use commercial contracts that are similar in scope and complexity. A five-year contract to maintain a 200,000 sq. ft. corporate campus is relevant experience for a government facility maintenance solicitation, even though it wasn't a government job.

3. Differentiators

What makes you different from the ten other companies offering the same services? Be specific. Possible differentiators include:

• Specialized certifications (Green Seal, ISSA CIMS, LEED experience)
• Geographic coverage or local presence
• Specialized equipment or technology
• Response time guarantees
• Bilingual or multilingual staff
• Depth of experience in a specific facility type (hospitals, schools, federal buildings)

Avoid generic differentiators like "commitment to quality" or "customer-focused." Every company says that. Instead, state something provable: "24/7 emergency response within 2 hours for the greater Phoenix metro area" or "100% Green Seal-certified cleaning products used across all contracts."

4. Company Data

This is the section that proves you are set up to do business with the government. If any of these are missing, many contracting officers will stop reading. Include:

• UEI Number: Your Unique Entity Identifier, assigned when you register in SAM.gov (this replaced the DUNS number)
• CAGE Code: Your Commercial and Government Entity code, assigned automatically through SAM.gov registration
• NAICS Codes: The North American Industry Classification System codes that describe your business. For cleaning companies, common codes include 561720 (Janitorial Services), 561710 (Exterminating and Pest Control), and 561790 (Other Services to Buildings and Dwellings)
• SAM.gov Registration: Confirm that your registration is active and current
• Socioeconomic Certifications: List any applicable designations — Small Business, 8(a) Business Development, HUBZone, Women-Owned Small Business (WOSB), Economically Disadvantaged WOSB (EDWOSB), Service-Disabled Veteran-Owned Small Business (SDVOSB). You can learn more about these programs at the SBA contracting assistance programs page.
• State and local certifications: DBE, MBE, WBE, or other state-level certifications
• Bonding capacity: If applicable to your industry

5. Contact Information

Make it easy for a contracting officer to reach you. Include:

• Primary point of contact (name and title)
• Phone number (direct line, not a call center)
• Email address
• Company website
• Physical address

Use a professional email address on your company domain. A gmail.com or yahoo.com address signals that you may not be a serious operation. If you don't have a company domain yet, set one up before you send your capability statement to anyone.

6. Company Overview

Keep this brief — two to three sentences. State who you are, what you do, how long you have been doing it, and where you operate. This is not the place for your company's founding story or mission statement. Contracting officers want facts.

A good company overview reads like this: "ABC Facility Services is a woman-owned small business providing commercial cleaning and facility maintenance services across the Dallas-Fort Worth metropolitan area since 2014. We serve 45+ commercial and government facilities totaling over 2 million square feet under management."

Capability Statement Example: Cleaning & Facility Maintenance

Here is what a strong capability statement looks like for a cleaning or janitorial company pursuing government contracts. This is a content layout — your actual document should be designed as a professional one-page PDF with your company logo and branding.

Notice a few things about this example. Every competency is specific. The past performance includes numbers. The differentiators are provable, not vague. And the entire thing fits on one page. That is the goal.

Don't have government experience yet? That's where most small businesses start. Here is how a company with only commercial contracts can present a strong capability statement.

Notice that Sparkle Clean doesn't apologize for having no government experience. Instead, the statement leads with commercial contracts that demonstrate relevant capabilities — managing multi-building accounts, meeting compliance standards, and handling transitions professionally. Those are the same qualities a contracting officer looks for. The key is to present commercial work in terms that translate to government expectations: square footage, contract values, measurable outcomes, and compliance track records.

Common Mistakes That Get Your Statement Ignored

After reviewing hundreds of capability statements, contracting officers see the same problems over and over. Avoid these:

How to Use Your Capability Statement to Win Contracts

Writing the capability statement is only half the job. You also need to get it in front of the right people. Here is how to distribute it effectively:

Upload to SAM.gov

Your SAM.gov entity registration includes a place to upload your capability statement. Contracting officers search SAM.gov when they're looking for qualified vendors, especially for small business set-asides. Make sure your profile is complete and your statement is uploaded as a current PDF.

Contact Agency Small Business Offices

Every major federal agency has an Office of Small and Disadvantaged Business Utilization (OSDBU). These offices exist specifically to help small businesses connect with contracting opportunities. Find the OSDBU for the agencies you want to work with using the SBA's procurement center directory, introduce yourself, and send your capability statement. Most have email addresses and some have scheduled "vendor days" where you can present in person.

Attend Matchmaking Events

Government contracting matchmaking events connect small businesses with agency buyers and prime contractors. The SBA, local APEX Accelerators (formerly known as Procurement Technical Assistance Centers or PTACs), and industry associations host these regularly. Bring printed copies of your capability statement. These events are where relationships start — and relationships matter in government contracting.

Reach Out to Prime Contractors

Large contractors that hold major government contracts often need subcontractors for specific services like cleaning and facility maintenance. Most primes have small business liaison officers or supplier diversity programs. Send your capability statement to primes that work in your geographic area and service category. Subcontracting is one of the best ways to build government past performance when you're just starting out.

Keep It Updated

Your capability statement is a living document. Update it whenever you complete a significant contract, earn a new certification, or change your business structure. An outdated statement with expired registrations or old contact information creates a bad impression. Review and refresh it at least every six months.

If you already have past proposals, case studies, or project documentation, tools like Bidara can help you extract your past performance details and qualifications from those existing documents, making it faster to pull together the specific proof points your capability statement needs.

Frequently Asked Questions

How long should a capability statement be?

One page, two sides at the absolute maximum. Contracting officers review dozens of these for every opportunity — keep it scannable. If you can't fit everything on one page, you're probably including too much detail. Save the depth for your proposals.

Do I need a capability statement for state and local contracts?

Yes. While the format varies somewhat, state and local agencies and prime contractors expect them too. Focus on the same six sections but tailor the content to the specific agency's requirements. Some state procurement offices publish their own preferred formats — check their websites before submitting.

Can I use commercial experience if I have no government contracts?

Absolutely. Many small businesses start with only commercial past performance. Highlight contracts that are similar in scope, size, or complexity to government work. A $200K commercial cleaning contract for a large office building demonstrates the same capabilities as a similar government contract. The key is to present your commercial work using the same format and level of detail that government past performance uses: client name, contract value, scope, measurable outcomes, and period of performance.

Is a capability statement the same as a company profile?

Not exactly. A company profile is a general marketing document aimed at any audience. A capability statement is specifically designed for government contracting — it includes NAICS codes, certifications, UEI numbers, and past performance formatted the way contracting officers expect to see them. You can think of a capability statement as a company profile that speaks the government's language.

How often should I update my capability statement?

At minimum, every time you complete a new contract, earn a new certification, or change your SAM.gov registration. Many businesses update quarterly. An outdated capability statement with expired certifications or old contact info signals that you're not actively pursuing government work.

Next Steps

You now have everything you need to write a capability statement that actually works. Here is your action plan:

• Register on SAM.gov if you haven't already. You cannot pursue federal contracts without it, and the process takes 7-10 business days. Start today.
• Identify your top 3 NAICS codes by searching for recent solicitations in your industry on SAM.gov. Note which codes appear most often for the work you do.
• Draft your capability statement using the six-section framework above. Keep it to one page. Be specific. Include numbers wherever possible.
• Send it to your local APEX Accelerator (formerly known as PTACs) for free review. APEX Accelerators provide no-cost counseling to businesses pursuing government contracts, and they will give you honest feedback on your statement.

A strong capability statement won't win you a contract by itself — but without one, you won't even be in the conversation. Write it, distribute it, and keep it current. That is how you get your foot in the door.