The Best Capability Statement for Federal Government Contracting in 2025 

The GovCon Chamber has taught thousands of small businesses how to write capability statements for federal government contracting.

If you aren't getting meetings with federal buyers, it is usually one of two problems.

1. You don't stand out where federal buyers are looking for companies like yours
2. Your Capability Statement is not working for you.

Your Cap-Statement is the first thing Federal agency buyers see in your DSBS – the Dynamic Small Business Search profile and may determine whether they reach out to you for valuable contracting opportunities.

What does DSBS show government buyers?

Your small business profile in DSBS and SAM.gov presents a snapshot of how your business can help federal agencies achieve their missions.

Your Capability Statement, website and capability narratives in DSBS should instantly tell them –

• What you sell – your core offering of product and services, core competencies and expertise
• Who you sell it to – current customers and past experience
• What kind of company you are – ownership, socio-tags like 8(a), HUBZone, women-owned, veteran owned business
• What makes you different– certifications, licenses, contract vehicles etc 

The Purpose of a Capability Statement is to Open Doors. 

When government buyers are in the market research phase, they are just looking for 'generally qualified' vendors. They don't have time to read long documents. This is why the best capability statement in 2025 must fit on one page only.

In the begining, federal buyers are simply to identify prospective small businesses. When they find enough, they will forward the names to the actual buyers – the program officers.

You only have 6 seconds to hook their interest

Use clear concise language to  tell them  –

1. that you are 'procurement ready'
2. what good or professional services you sell
3. what government agencies or commercial entities have paid you in the past

Capability statements are the most important marketing tools for small business government contractors whether you are pursuing work as a prime contractor or a subcontractor.

A well-written statement will–

• open doors and
• persuade government small business specialists to connect you with program officers. 

Your Capability Statement is just one of the 6 Essential Marketing Assets for Small Business Government Contractors in the Federal Marketplace

How to Create an Effective Capability Statement

The Key Elements of a One-Page Capability Statement

The Z Format | Template for Government Contracting Capability Statements

Studies show that the reader's eye naturally moves across a document in a Z pattern.

Skimming quickly, readers start in the top left corner, moving horizontally to the top right corner, then diagonally to the bottom left corner, and finally, horizontally to the bottom right corner. 

It is important to layout your information in a sequence and pattern of priority.

What should you include in a one-page capability statement?

Here is how to quickly and effectively communicate your value proposition and key qualifications to government buyers.

HEADER SECTION * the most important information!

1. Company name and logo
2. Title: "Capability Statement"
3. Cage Code and UEI: This shows your company is 'procurement ready' and registered in SAM.gov. Be sure to hyperlink your CAGE and UEI to your official DSBS profile.
4. Logos for any socio-economic federal certification (HUBZone, veteran or women-owned small business, #wosb #sdvosb)
5. All contract vehicles that you are on (hyperlink to GSA or STARS III profile if appropriate)

CORE COMPETENCIES

• State your clear 'focused offer' and your primary core competency.

PAST PERFORMANCE

• Use specific examples and metrics to demonstrate your company's capabilities and achievements, who you have worked for and sample projects.
• If you only have experience as a subcontractor, you can still demonstrate familiarity with recognized government agencies. Only list 4-6 federal and state (list commercial only if necessary)

DIFFERENTIATOR (less important than past performances)

• Differentiators may include things, like:
  • facility clearance levels, licensing or bonding levels
  • specific agency experience
  • intellectual property and patents
  • unique employee qualifications ie academic credentials and specialized certifications, pattern of employee retentions

ABOUT Section (14 pt font)

• Your hook leads to your pitch

FOOTER (12 pt font)

• Contact info: Must show your company's primary point of contact, typically the owner.
• Keep the boring stuff like primary NAICS codes on the bottom.

FORMAT

• Capability statements are often scanned into agency databases. Use minimal graphics and crisp fonts.
• If possible, your capability statement should be tailored to the specific agency or opportunity that you're targeting.