Market Your Business with a Capabilities Statement

By Christina Mortel

Editor’s Note: Getting Started in Government Contracting is part of a series on US government contracting (GovCon) opportunities at all government levels. A non-US entity may register in SAM.gov as a foreign entity.

In my previous article on government contracting, I covered research basics on how to find the agencies that need your business products and services. Along with having research on hand, businesses need to develop a company capabilities statement. This document is required to work with local, state, and federal agencies and is helpful when working with private sector entities. The capability statement is a key component of your business development efforts. Let’s dive in.

A capability statement is a one-page marketing document that details your business value and expertise. It contains four main categories:  Company Information, Core Competencies, Differentiators, and Past Performance/Experience. When combined on one page, this information provides a snapshot for procurement teams with which to assess the competitive ability of your business to fill the agency’s needs for products and services. The capability statement is required when working with local, state, and federal entities. Here is an overview: 

Company information: This section includes the company name, logo, business address, website, contact information, and business certifications. Here, it is helpful to include your NAICS and NIGP codes (and if working with federal agencies, CAGE and UEI codes). These codes are obtained in the System for Awards Management registration process. By looking at such codes, the procurement representative can quickly scan the document and assess the pertinent information. Include a few descriptive sentences about your company. (Example: ABC LLC specializes in delivering XXX products and/or services to government, private sector, and non-profit entities, statewide and throughout the east coast. Formed in 2023, our company replaces legacy systems to drive business growth and efficiency … )

Core Competencies: In this section, highlight in bullets the products and services that are the bread and butter of your business. Craft three to five bullets that showcase your expertise. 

Differentiators: In this area, detail what makes your company different from competitors and how you can add value for the project you are bidding on. Include specific industry training and certifications, depth and years of staff experience, use of state-of-the-art equipment, availability, and response times for projects, while also offering information about relevant benefits such as post-project audits, etc. 

Consider the agency’s needs, shortfalls, and pain points. Do your core competencies and differentiators help address the target organization’s needs?

Past Performance and Past Experience:

Past Performance is work completed under a contract. Past Experience is just that, work experience that is relevant to the current need, but was gained in a previous role or with a previous employer. Use both government and private sector project work you have completed. Volunteer work may also be used if it constitutes relevant work experience. In general, list the most recent work, the highest contract value, or the most relevant project(s) first in the list. Again, if you do not have any past contracts, use previous work experience, noting the work and its outcome. It all counts toward building credibility. 

The capability statement can be used with private sector businesses, too, and it is helpful to use it as a leave-behind after a client meeting or call. You may edit it once you have spoken to the prospect, adding useful information gained during the call. Use the capability statement at trade shows, conferences, client calls, and 1:1 meetings, including those with potential teaming partners, to discuss where your business can add value and build capacity.

Tips:

• Keep the cap statement to one page if possible. The reader will spend five to eight seconds reviewing it. Make it impactful. Use font size 14 (no smaller than 12). Again, the goal is to get to the follow-up call or appointment to discuss how you can work together.
• Segment the information in an easy-to-read format. Have enough white space on the page so the eye can easily scan and find information.
• Start with a foundational capability statement and customize it for the product or service opportunity. This may include updating the NAICS and NIGP codes, adding relevant past performance, and including training and expertise to address the agency’s specific project. 
• List accepted payment options: credit cards, ACH, etc.
• Add the capability statement to your website so interested parties can find it via your navigation bar.
• Contact your local APEX Accelerator or Small Business Development Center (SBDC) office to review your capability statement.

Lastly, design and format your statement so that it represents your organization. Linked here is a basic sample to get you started from the SBDC Center for Government Contracting at The University of Texas at San Antonio and an example from our fellow AIIP member, Marj Atkinson. You may use MS Word, MS Publisher, or CANVA to begin. 

Christina Mortel, co-owner of Get Write to Business LLC, provides original written communications, including case studies, White Papers, feature articles, and web copy, for B2B and B2G audiences. We research, write, and fact-check content that educates and informs decision makers, explains complex issues, and reaches diverse audiences. Our focus areas are Economic Development, Entrepreneurship, Government Contracting, and Small Business Advising.