What Is a Capability Statement? How to Write One (Examples and Free Template)

A capability statement is a one-page summary of your business written for government buyers and prime contractors. It shows what you do, why you're a safe choice, who has paid you before, and the codes a buyer needs to look you up, such as your UEI, CAGE code and NAICS codes. Below you'll find what goes in each section, capability statement examples from fictional companies, and a free Word template.

When government contractors use a capability statement

A capability statement is a marketing document, like a résumé for your company. Training from the Alaska APEX Accelerator calls it the next step after a business card. No regulation sets its format, and the Small Business Administration (SBA) doesn't publish an official template or required format. The best guidance comes from APEX Accelerators, centers funded in part by the Department of War that help businesses sell to the government at no cost.

You'll use it in four places:

• Agency small business offices. The law requires one, usually called the OSDBU, in each agency with buying authority. SBA says these offices help identify contracting opportunities, and a capability statement is what you send before you meet.
• Market research responses. Agencies ask for capability information in sources sought notices and RFIs before they decide how to buy.
• Prime contractors. Large companies with small business subcontracting goals use them to find partners.
• Events and outreach. Hand out printed copies at matchmaking events, and attach the PDF when you email a buyer.

Capability statement vs. company profile

A company profile or brochure tells your story to commercial customers, and it can run several pages. A business capability statement is shorter and built for government buyers. It adds the data they check (UEI, CAGE code, NAICS codes, certifications) and gets tailored to one agency at a time.

You may also hear "profile" used for your listing in SBA's Small Business Search (SBS), the database agencies use to find small businesses. SBA fills it with your SAM.gov registration data and recommends a comprehensive profile, so keep your registration complete.

Free capability statement template (Word)

The template is a single page:

• Top: your company name, a one-line tagline, and a short company overview.
• Left column: core competencies, differentiators and past performance. This is the part that sells.
• Right column (shaded): company data (UEI, CAGE code, primary and other NAICS codes, PSC codes, business size, certifications, contract vehicles and purchase card acceptance) and your contact details.

All the sample text sits in square brackets. Replace every bracket, and delete lines that don't apply, like contract vehicles if you don't have any yet. APEX guidance says to gather your data before you fill in a template: your IDs and codes, any certifications and contract vehicles, and your recent projects. It also helps to have your licenses, insurance and bonding details handy.

What to put in each section

Company name and tagline

Write one line on what you do, for whom, and where. A buyer should know in two seconds whether you fit.

Company overview

Use two or three sentences: how long you've been in business, what you're known for, and the size of jobs you handle. Rewrite this part for each agency.

Core competencies

List three or four services or products, one line each. Use the words agencies use in their solicitations: search a few notices for your kind of work and copy their terms. APEX guidance is blunt here: focus on what you do best, not everything you've ever done.

Differentiators

Say why you're the safer choice, in specific, provable terms. APEX Accelerators suggest relevant certifications and specialized licenses, bonding capacity, facility security clearances, experience with the agency, and staff credentials. Equipment, response time and local presence count too. A number beats an adjective.

Past performance

List two or three projects from the last 3 to 5 years, most similar first. For each one, give the client, the type (federal, state or commercial), the years, and one sentence on what you delivered, at what scale, and the result. If you were a subcontractor, name the prime contractor and the end customer. Skip agency logos: APEX guidance notes that most agencies don't allow them in advertising.

Writing a capability statement with no past performance

You don't need federal contracts to write a strong one. APEX guidance says to put government work first when you have it, and to use commercial projects when you don't. State and local government jobs count too. Pick the projects closest in type and size to the work you want, and give numbers: acres, square feet, users, meals, parts.

Company data and contact

This column lets a buyer check you in seconds.

Name the codes in the size line, because size depends on the NAICS code in each contract. And keep the purchase card line: the government purchase card is the preferred way to pay for micro-purchases, which are generally buys up to $15,000 (less for some construction and service work).

Capability statement examples

These example lines come from fictional companies. Each pair shows a vague line and a specific one.

A full example: a small landscaping company (fictional)

Here's how a made-up business, Bramblewick Grounds LLC, might fill in the template. The company, clients and details are invented.

BRAMBLEWICK GROUNDS LLC. Grounds maintenance and snow removal for federal sites in central Maryland.

Overview. Owner-operated since 2019. Two full-time crew leads plus seasonal staff. Sites of 1 to 20 acres on weekly and on-call schedules.

Core competencies. Mowing, trimming and edging on fixed schedules · Seasonal cleanups and mulching · Snow plowing and salting

Differentiators. Licensed pesticide applicator on staff · Two company-owned plow trucks · On site within 2 hours for storm calls

Past performance. Office park, 14 acres, commercial, 2021 to present: weekly mowing, renewed three times. County parks department, local government, 2023 to 2025: 9 ball fields, no missed visits. Retail center, commercial, 2022 to present: plowing 6 acres of parking before opening.

Company data. UEI and CAGE code · Primary NAICS 561730 Landscaping Services · Other NAICS 561790 (stand-alone snow plowing) · PSC S208 Landscaping/Groundskeeping · Small under both codes · Accepts government purchase card

Contact. The owner's name, direct phone and email.

There's no certification line, because they don't hold one. For a snow removal notice, the owner would move plowing to the top and lead with the retail center job.

How to tailor it to each agency or prime

Keep a master version, then make a copy for each target:

1. Read what they buy. Pull up the agency's recent notices, or its past awards on USAspending.gov.
2. Borrow their words. If the notice says "grounds maintenance," don't write "lawn care."
3. Reorder. Put the matching competencies and the most similar past performance first.
4. Cut what doesn't fit. NorCal APEX advises leaving out experience that isn't relevant to the opportunity.
5. Save it under the agency's name so you know which version went where.

Selling to state or local governments too? NorCal APEX suggests a separate version listing the codes and certifications state buyers use (such as UNSPSC codes).

For sources sought and RFI responses

A sources sought notice is market research. The agency is checking whether enough capable small businesses exist to set the work aside. Use the notice's own language in your capability statement.

Design tips and common mistakes

How long should a capability statement be?

One page for handouts, meetings and emails. The exception is a sources sought or RFI response: APEX Alaska says 1 to 2 pages (front and back) is fine there, within any page limit the notice sets. Short matters because buyers skim. One APEX Accelerator's training says you have about six seconds to show three things: that you're ready, what you sell, and who has paid you.

Design tips

• Bullets and short phrases, with no heavy blocks of text.
• White space. A cramped page doesn't get read.
• A clean font and colors that match your logo and website.
• A PDF named with your company, like "BramblewickGrounds-Capability-Statement.pdf." For events, print on heavier paper.

Common mistakes

The certification point matters. Women-owned small business (WOSB) set-asides have required SBA certification since October 2020, and service-disabled veteran-owned set-asides since January 1, 2024. Claiming a status you haven't earned is a fast way to lose a buyer's trust.

Where to send it and how to follow up

• Agency small business offices. Email a short introduction, attach the PDF, and ask for a brief call about what they buy in your NAICS codes.
• Sources sought responses. Attach a tailored version to every one.
• Prime contractors. Send it to the small business liaison at large companies that win work in your field.
• Your website. Post the PDF so buyers who look you up can find it.

Then follow up. APEX guidance lists fear of following up as a common mistake. An APEX Accelerator near you can also review your draft for free before you send it.

Next steps

Put your capability statement to work. Learn how to find government contracts and notices worth answering, then follow the 90-day plan to get your first government contract. If a term is new to you, look it up in the government contracting glossary.

This guide is general information, not legal or financial advice. Rules and thresholds change, so confirm details on SAM.gov and the official agency sites linked above before you act. FedReady is an independent company and is not affiliated with any government agency.