What is the purpose of a capability statement?

Government contracting has become a very competitive market, thanks to its potential to be very profitable. Businesses of all sizes, from small micro-businesses with one employee to large mega-businesses with thousands of employees, have been successful in selling products and services to government agencies at the federal, state, city, county, and municipal levels.

However, competition has increased as more companies try to enter, stay competitive and stay successful in this market. Five years ago, no one knew what a Statement of Capability was, and now it’s an essential tool to help you be as successful as possible, no matter what size company you represent.

Another complicating factor is that the government employs fewer people to handle outreach and acquisitions. This means contractors must know how to distill the information that is most important to a particular decision maker, express it clearly and concisely, and reinforce its importance to the prospect, even more so than in the past.

Successful businesses use their Statement of Capability for a number of purposes:

o Required in many government registration processes

o A gateway to new agencies

o Qualification test

o Proof of past performance

o Set you apart from your competitors

Capacity declaration format

A Statement of Capability should be very short (only 1-2 pages), to the point, and specifically related to the needs of the individual agency. Ideally, it is a living document that will change depending on the target agency. Why is this? Because smart contractors know that each agency has its own mission and focus, and they speak directly to them in their statement of capability.

It is important that the document is visually interesting and has graphic elements similar to your company brand and logo. It should also be a searchable document that can be easily sent as a PDF file.

Therefore, we recommend that capability statements be created in Word or Publisher using a template that reflects a company’s brand with its own logo, colors, and graphic identity. It is important to place all critical information on one side of a page. The second side, if absolutely necessary, can contain additional supporting data relevant to the target agency, such as case studies of previous successful projects.

Content of the declaration of capacity

The five key areas included in a success are:

1. Basic skills

2. Past performance

3. Differentiators

4. Corporate data

5. Contact information

Tips:

It is better to call the document Statement of Capability. This should be indicated at the top of the document. This is a term familiar to government contracting decision makers and indicates that you are aware of the contracting process. A statement of capability should also display a company logo and other branding elements, for recognition, and be free of long paragraphs, instead using short sentences and bulleted lists for quick visual scanning.

When writing a Capability Statement, use the following section labels: Core Competencies, Past Performance, and Differentiators. These are the key elements government buyers look for to make a quick decision.

Display contact information, including the website and a specific person’s name, email, and phone number, on each side (page) of the document.

Create a new document for each agency, principal, or teamwork opportunity. This way, each capability statement has all the information you need for that opportunity, and only the information you need.

A capacity statement is preferably one page, one sided. Go both ways only if absolutely necessary.

Save and distribute as a PDF, not Word, PowerPoint, or any other format. Save the document with your company name in the file name. Many federal agencies block Word and Publisher documents because they may contain viruses; however, a PDF file is much more secure, generally smaller, and remains visually consistent when mailed.

Basic skills

These are short introductory statements that relate the company’s core competencies to the specific needs of the agency, followed by bullet points packed with keywords. This is NOT all that a company can do, but the core expertise of a company, specifically related to the agency for which this Capability Statement is written, its mission, and identified opportunities.

past performances

Start by listing past clients for whom your company has done similar work. Prioritize from the related agency, to all federal to another government, to commercial contracts. If the above projects do not relate to the needs of the target agency, do not mention it.

Tip: Ideally, include specific contact information for immediate reference. Include name, title, email, and phone. Use this information when you meet with decision makers. Leave this information out of the Capability Statement when you submit the PDF as an initial outreach effort or leave it as a handout at conferences.

differentiators

Doing business with the government is highly competitive. Contractors have the burden of dealing with this competitive market and outperforming other contractors. Many companies trying to increase sales in the government market do not have a clear value statement detailing what sets them apart from their competitors. A succinct and clear statement that relates to the agency’s specific needs is what will help procurement people, program managers, and end users understand why they should choose your company over other competitors.

Examples of differentiating questions:

How is your company best suited to the needs of this agency? What makes your services stand out from the rest? What is it about your people that gives you the advantage over your competitors? Why are your products better solutions than others that are available?

If these benefits cannot be clearly communicated, it is impossible for a decision maker to make a clear recommendation for your company over one of your competitors. Many companies do not take this critical step. And they wonder why they are losing contracts.

Company data

Include a short sentence or two with a company description detailing the relevant story. Please include: the size of your business, your revenue, the number of employees you have, and the typical geographic area you serve.

Tip: Readers will visit your website for additional information. Make sure your website is constantly up to date and government focused.

List of specific relevant codes

• DUNES
• Socioeconomic certifications: 8(a), HUB Zone, SDVOB, etc.
• NAICS (all) Do not include code descriptions, just use the numbers
• cage code
• Accept Credit and Purchase Cards
• GSA Program Contract Number(s)
• Other federal contract vehicles
• BPA and other federal contract numbers
• State Contract Numbers
• Name (a specific person)
• Direction
• Phone (main and cell)
• Email (a personal email, not info@)

If your business has won any awards, accolades, or has notable achievements related to that agency, please list them only if you have space.

Use this information to help you create a powerful Statement of Capability and open doors to federal government contracting opportunities. This document is the key to building relationships with key decision makers in government contracting, providing them with a concise description of the goods and services your business can provide, and a constant reminder of your business. When written correctly, a Statement of Capability is the tool that sets your business above the competition.