
If you want to work as a federal government contractor, there are several steps you need to take, and one is the creation of a dynamic capability statement. The quality of this document is crucial, and this article includes some helpful tips as well as some mistakes to avoid.
What Is A Capability Statement?
A capability statement is something that all government contractors need to create, and it basically functions much like a resume. It provides essential information about your company, as well as contact information and data such as your Commercial and Government Entity Code, or CAGE code, which is assigned to you once you have an approved listing in the System for Award Management, the database that houses information for all government contractors.
What to Include in Your Capability Statement:
Typically, procurement agents expect to see the following sections on a capability statement:
Company Overview
This is just a short “About Us” section, where in a single paragraph you explain the goods or services that your company provides, as well as any other relevant information that federal procurement agents should know immediately about your company.
Here’s an example for a company that provides general automotive repair.
Auto Repair Experts is a VOSB-certified, full-service automotive repair facility dedicated to providing affordable, reliable repair and maintenance services for all vehicle makes and models, including complex engine diagnostics and transmission work, as well as routine services such as oil changes and brake inspections.
Core Competencies
In this section, you outline the main services that your company can provide. For the auto repair client above, the business owner should include as many services as possible so that the procurement officer has a full picture of what the business can provide.
Past Performances
This is a quick list of some of the companies or entities you have served in the past. For instance, an auto repair service might have worked with local school districts or taxi services to provide repairs and maintenance. These are the types of past performance you want to highlight as they speak to your ability to handle larger volumes of service.
Differentiators
This section details what sets you apart from other potential government contractors. For our auto repair business, the owner could highlight how many vehicles are serviced per year or perhaps any area of specialization. This is a crucial section because you could be competing against dozens or even hundreds of applicants, so you need your key skills to truly set you apart and showcase your ability to fill a government contract.
Corporate Data & Contact Information
This includes important information, including your CAGE code, UEI number, address, website URL, phone number, and the person to contact regarding the government contract. You also should include your NAICS codes as well as any small business set-aside certifications you possess.
Here’s a quick look at what a basic capability statement might look like once it has been completed:

While this is a basic example, it illustrates that you need to keep the statement organized and easy to read so that procurement agents can quickly learn about your strengths and what you can provide for government agencies.
5 Mistakes Contractors Often Make
While the aforementioned information can help you get started, it also is important to learn about some of the more common mistakes contractors make, including:
- Making It Too Long
Similar to most resumes, capability statements should be no longer than one page. Procurement agents have limited time to review submissions, so you need to make it short and sweet, condensing the information into the most important and relevant points.
- Using Generic Content
While you can make a general capability statement for your website, when you turn in a statement for a specific government contract, you need to tailor it to that contract. For instance, let’s say you are an auto repair company, and the government contract specifically indicates that they need someone to provide routine maintenance, including oil changes, tire replacements, and brake inspections.
You will need to update your capability statement to ensure that it includes the specific services needed by the government agency, assuming you can provide those services. The contracting officer needs to see that you can fulfill the goals of a specific contract, so a one-size-fits-all statement is not going to help you stand out from the competition.
- Failing To Highlight Differentiators
While being able to provide the goods or services listed in a contract is crucial, the sections where you list Past Performances and Differentiators are the most important. You need to highlight your unique qualifications and provide quantifiable achievements rather than making vague statements. Provide examples of past clients that showcase your ability to fulfill the obligations of the government contract.
- Incorrect, Outdated, or Missing Information
This seems obvious, but you would be surprised how many times capability statements are handed over with serious errors or missing information. Be sure to triple-check the phone number, email address, and URL on your document. Triple-check to ensure that your CAGE code and UEI are correct.
When a procurement agent skims your statement, they use that CAGE code to look up your company in SAM. If the CAGE code is wrong, they won’t find you, and your bid likely will end up getting tossed.
Adding, the wrong NAICS codes also can cause problems. You need to ensure that these codes accurately identify the goods or services your company provides. Be sure to update these codes if your business model changes, as incorrect information is a huge red flag to a procurement agent.
- Poor Visual Design & Formatting
While our example above likely won’t win any design awards, it is well-organized and easy to read. You want to provide a statement that is easy for an agent to scan quickly, and you want to keep the fonts, colors, and general design consistent throughout. Our statement above did not include a company logo, but your statement should include your logo, as it gives the statement a professional touch.
We recommend browsing the internet for good examples of a well-designed capability statement for government contractors. There are companies that will prepare this statement for you, just as there are services for those needing a professional resume.
How To Get Started With Government Contracting
While designing a capability statement is essential, the first step toward becoming a government contractor is to register in the System for Award Management (SAM). Without completing SAM registration, you cannot bid on any federal contractor jobs, and Federal Contractor Registry can help.
The government does not charge a fee for SAM registration, but the process is complex and time-consuming (10 or more hours on average). If you make any mistakes, this can delay your approval, and you may miss out on contracting opportunities. Many company owners simply hire a third-party SAM registration service.
In addition to quickly and accurately completing your SAM registration (or SAM renewal), we also will help you obtain your UEI number and help with the SAM notarized letter requirement.
Additionally, if you qualify as a small business, we can help you sign up with SBA and determine if you qualify for any small business set aside, such as the 8(a) Business Development program, HUBZone certification, or others. These can make it easier for small business owners to win federal government contractor jobs.
At Federal Contractor Registry, we make it easier for business owners to get started with contracting by providing fast, efficient SAM registration services that save you time and allow you to focus on running your business as well as creating a dynamic capability statement. If you would like to get started with SAM registration, just click on the green New Registration tab on our homepage and fill out our quick contact form.








