Understanding the Purpose of Capabilities Statements

Essential Elements of Capabilities Statements

Company overview: Brief description of who you are and what you do (2-3 sentences)
Core competencies: Your primary service or product areas (4-6 specific capabilities)
Differentiators: What sets you apart from competitors (3-4 unique value propositions)
Past performance: Relevant contracts demonstrating capability (3-5 key projects)
Certifications and credentials: Socioeconomic status, security clearances, industry certifications
Company data: UEI, CAGE code, NAICS codes, DUNS (if still used), size status
Contact information: Key personnel with direct contact details

1
Identify Unique Assets
List what you have that competitors lack. This might include proprietary technology, specialized facilities, unique partnerships, rare certifications, or exceptional personnel. These assets form the basis of differentiators.
2
Connect to Customer Value
For each unique asset, articulate the benefit to customers. Faster delivery, lower risk, better outcomes, cost savings, or mission enhancement. The customer benefit makes the asset meaningful.
3
Add Evidence
Support differentiators with proof. Reference specific contracts where you delivered the claimed benefit. Include metrics demonstrating results. Evidence transforms claims into credible differentiators.
4
Test Against Competitors
Review competitor capabilities statements to ensure your differentiators are truly distinctive. If competitors make the same claims, your differentiator is not differentiating. Refine until you stand out.

Industry events: Distribute at conferences, industry days, and networking events
Direct outreach: Include when emailing contracting officers or program managers
Market research responses: Submit with Sources Sought responses and RFI replies
Prime contractor engagement: Share with primes seeking subcontractor capabilities
Online presence: Upload to Dynamic Small Business Search and agency vendor portals
Teaming opportunities: Exchange with potential partners evaluating fit
Follow-up meetings: Leave behind after capability briefings and introductions

Too generic: Use specific, distinctive language rather than boilerplate
Missing data: Include all required company identifiers and current contact information
Outdated content: Update regularly with new contracts, certifications, and company changes
Poor design: Invest in professional formatting that reflects company quality
Too long: Edit ruthlessly to fit essential information on one page
No evidence: Support claims with specific examples and metrics
Wrong focus: Align content with target customer needs, not internal priorities