A capability statement is a concise, typically one-page document that highlights your company's core competencies, past performance, certifications, and value proposition. It's used to respond to government RFIs and to market your company to contracting officers.
A capability statement is your marketing document in the world of federal contracting. It's a one-page (sometimes two pages) overview of who you are, what you do best, relevant past experience, key team members, and relevant certifications or achievements. Unlike a proposal, which responds to a specific solicitation, a capability statement is evergreen and used to introduce yourself to potential government customers.
Government agencies often issue Requests for Information (RFIs) asking vendors to submit capability statements before deciding whether to issue a full solicitation. Contracting officers also use them when they're conducting market research or building a competitive list of potential bidders. A strong capability statement can influence whether an agency includes you in their bidding pool.
Why it matters: A well-crafted capability statement can be the difference between being considered and being overlooked. Agencies use capability statements to determine if you have the basic qualifications to bid on opportunities. It's also the easiest tool to distribute widely—you can send it to dozens of contracting officers proactively. Many successful contractors maintain multiple capability statements tailored to different service lines or customer types.
In practice, capability statements are surprisingly important. Some companies treat them as an afterthought, but the best contractors invest time in writing clear, compelling statements that answer the question: "Why should the government buy from us?" Key elements include: company overview, core competencies (usually 3-5), relevant past performance with customer names (when releasable), team qualifications, certifications (small business status, security clearances, ISO certifications), and contact information.
One strategic tip: customize your capability statement slightly for different agencies or customer sets. A capability statement for a Defense agency should emphasize different capabilities than one for a civilian agency. Also include specific contract vehicle experience (GSA Schedule, IDIQ vehicles you've won, etc.) because that tells contracting officers you're already in the system.