While there are many tasks that you need to take in order to work with the federal government, one of your first jobs will be to create a capability statement. For government contractors, this important document serves as a sort of resume and provides a quick snapshot of how your company can benefit a government agency. Here are some tips that will help you create a stellar capability statement.
1. Start With A Quick Introduction
Typically, at the top of your capability statement, you will want to create a short intro paragraph talking about your business. This is very similar to the objective section of a resume except that rather than describing your objectives or goals, you just want to give a brief description of your company and what goods or services it provides.
2. Create A Section For Basic Company Info
Aside from a short intro paragraph, a capability statement for government contractors usually includes five main sections – Contact Information, Corporate Data, Core Competencies, Differentiators and Past Performance. The first of these sections, the Contact Information area, is the easiest to complete.
For this section, you will want to include your website address, the name of the person that government procurement agents should contact, as well as the phone and fax numbers for that person. You also will want to include your business’s physical address as well as the contact’s email address.
3. Compile Your Company Data
The Company Data section for government contracting is very unique. You will include your DUNS, your CAGE code, your SBA certifications, your NAICS codes, your NIGP codes, your PSCs and any additional certifications you might possess. You also will want to include your corporation type, as well as the year in which you were incorporated.
Now, you might be wondering what all of that means, so let’s take it step by step. A DUNS is a number given to your business when you register at Dun & Bradstreet. You may already have that number and you can check at the Dun & Bradstreet website. If you don’t possess a number, you can have one assigned to you at no charge. DUNS is actually being phased out and replaced with something else, but this process has been delayed, so for the time being just place your DUNS on your capability statement.
The CAGE Code is a special unique code that identifies your business. It is given to you by the government and must appear on your capability statement. We’ve included further information about the CAGE Code under the final section in this blog.
SBA certifications are applicable only for those companies that qualify as small businesses. SBA stands for the Small Business Administration, and if your business qualifies as a small business, you definitely want to sign up with the SBA and explore any set-asides that might apply to your business. A portion of all federal contractor jobs is “set aside” for small businesses.
Additionally, if your small business is 51% (or more) woman-owned, veteran-owned or perhaps owned by a member of a traditionally disenfranchised group, you may qualify for multiple set-asides. If your business is located in what is known as a HUB Zone, you also might qualify for set-asides for that. SBA government contracting can be very lucrative, so don’t forget to inquire as to whether or not you qualify for SBA set-asides.
NAICS codes are North American Industry Classification System codes. These designated the precise goods and services your company can provide to the government. PSCs are Product Service Codes and these are similar to NAICS codes. NIGP Codes (National Institute of Government Purchasing) are yet another way to classify your goods or services. Government procurement agents might use any of these codes to search for potential contractors, so it’s smart to put all of these on your capability statement.
If you possess any other types of certifications or licenses, be sure to list these, as well, as they can help a procurement agent identify the best possible match for a contracting job. For instance, if you are ISO-registered, add that to your statement. This speaks to the quality of the company in general and can set you apart from other contractors.
4. Describe Your Core Competencies
The Core Competencies section showcases the types of services you provide. NAICS codes and PSCs are just numbers, but under Core Competencies, you can explain in more detail the services you can provide. Typically this is a bulleted list of your services or goods.
5. Add Some Previous Clients
The Past Performance section is a list of your previous or current clients or jobs. You can either create a bulleted list for this or you could use the logos of previous clients if they are fairly well known. This section functions as a references section but you don’t need to put in contact information for the references. You simply list clients or jobs you have completed.
6. Explain What Sets You Apart
The Differentiators section is probably the trickiest to write. In this section, you speak about what sets you apart from your competitors. Perhaps you have many decades of experience, the ability to work in many locations, more areas of expertise than your competitors, a high rate of referrals, etc. It’s basically a shortlist of why your company would be the best choice for a government contracting job.
7. Create A Great Design
As with a resume, the quality of the content is more important than the quality of the design, but a clean, easy-to-read design is your best bet. There are countless examples of capability statement designs on the internet, so take a look at a few and emulate a good design.
Typically, it’s best to stick with just one highly readable font or two at the most. Adding color is fine, but limit the colors to just one or two. Companies usually place their logo at the top of the capability statement and keep the contact information up at the top, as well. Generally, a one-page statement is best, but many companies will create a two-page document, just don’t ramble on to a third page.
But, SAM Registration Comes First
While you need that capability statement, you cannot start bidding on government contracts until you have completed your System for Award Management registration and received your Commercial and Government Entity (CAGE) Code. The Cage Code is your unique identifier within the System for Award Management (SAM). This is a database that includes all government contractors.
SAM registration is free, but it can be a difficult and time-consuming task, and the SAM government website can be tricky to use. The application is lengthy and includes quite a bit of “government-speak” which is confusing, to say the least. In many cases, people simply prefer to pay someone else to handle their SAM registration, and this is where we come in. We are a third-party SAM registration and SAM renewal service.
We can complete your registration quickly and correctly and ensure that you are approved as a contractor as soon as possible. We can even help you identify those NAICS codes and PSC codes, and help you identify any set-asides for which you may qualify.
While we are working on your SAM registration, you can work on setting up and designing your capability statement, as well as learning all you can about the bidding process. To get started with our SAM registration services, just head to our homepage and click on the New Registration tab or call us at (800) 985-7658.