What Is a Capability Statement?
A capability statement is a one-page summary of your business for agencies and prime contractors: what you do, what sets you apart and your past work.
Capability statement in plain English
There's no official format. Most include core competencies, differentiators, past performance and company data such as your UEI, CAGE code, NAICS codes and certifications.
Agencies use capability statements in market research, and primes use them to find subcontractors. You'll often attach one to a sources sought response.
Tailor it to the agency or contract when you can, and keep it to bullets and short phrases.
Related terms
- Sources sought notice: A sources sought notice is market research: an agency asks which businesses can do a job before it decides how to buy. Answering it isn't a bid.
- Past performance: Past performance is your record on previous contracts. Agencies use it to judge how likely you are to do a new job well.
- UEI (Unique Entity ID): A UEI (Unique Entity ID) is the 12-character ID SAM.gov assigns to your business. It replaced the DUNS number on April 4, 2022.
- CAGE code: A CAGE code is a five-character ID the Defense Logistics Agency (DLA) assigns to a business location that registers to bid on federal contracts.
Put it to work
- How to write a capability statement
- Build one with FedReady's capability statement builder (free account)
Looking for another term? Browse the full glossary or the government contracting glossary guide.