What is a capability statement?
A capability statement is a one-page summary of what a business does for government buyers: core competencies, past performance, differentiators and company data. What goes in it and when it's used.
The short answer
A capability statement is a one-page summary a business gives government buyers and prime contractors: what it does (core competencies), work it has done (past performance), why it's different, and its company data (UEI, CAGE code, NAICS codes, certifications and contact). The government doesn't require one; it's the business card of government sales.
What goes in it
- Core competencies: the few things you do best, in the buyer's words (NAICS and PSC terms help).
- Past performance: two to four relevant contracts or projects, with the customer and the result.
- Differentiators: what sets you apart (a certification, a clearance, a location, a method).
- Company data: legal name, UEI, CAGE code, NAICS codes, small-business certifications (8(a), HUBZone, WOSB, SDVOSB), and a named contact with phone and email.
When it's used
Send it with a reply to a sources sought notice or an RFI, bring it to agency small-business office meetings and industry days, and use it to introduce yourself to prime contractors looking for subcontractors. Tailor the competencies and past performance to each agency.
Build one from your records
SpendQuery's free capability statement builder fills the company data and past federal awards from your UEI's public records; you write the competencies and differentiators.
On SpendQuery
Official sources
Questions people ask
How long should a capability statement be?
One page, two at most. Buyers skim it in under a minute.
Should a capability statement include my UEI and CAGE code?
Yes. Contracting officers use them to look you up in SAM.gov and check your registration and size status.
Do I need a different capability statement for each agency?
Keep one base version and tailor the competencies and past performance to each agency or opportunity.
Is a capability statement the same as a proposal?
No. It introduces your business; a proposal answers a specific solicitation's requirements.
More guides
- How to find government contracts
- What is a small business set-aside?
- How to read a SAM.gov contract notice
- How to register in SAM.gov
- NAICS codes and small-business size standards
- Federal contract types, explained
- How to market your business to government buyers
- Sole-source contracts for small businesses
- Joint ventures and the SBA Mentor-Protégé Program
- Size protests and certificates of competency
- How to decide whether to bid on a government contract
- How to find federal grants
- The federal fiscal year-end spending rush
- What are the easiest government contracts to get?
- FY2026 federal contract spending: which agencies grew and shrank
- Government contract lists: open bids, awards and small business
- Who buys janitorial services from the federal government
- How government contractors get paid: timing, invoices and factoring
- How to respond to RFIs and sources-sought notices
- How to start a government contracting business from scratch
- Subcontracting on federal contracts: finding and vetting subs
- Who won federal IT support contracts in your state
- A free tool to ask government spending questions in plain English
- How to find federal bids your small business qualifies for
- How to find which federal agencies buy your product or service
- Free tools to search state and local government contracts
- How to understand the FAR without reading all of it
- Supplier databases in government buying: how to get listed
- What is a CAGE code?
- How do I get a UEI number?
Updated 2026-10-22. General information, not legal advice; the solicitation and the FAR govern each purchase.