Definition of a Capability Statement

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Companies use capability statements to make business deals with the government.
Companies use capability statements to make business deals with the government. (Image: pen and paper image by Melissa Schalke from Fotolia.com)

A capability statement is a brief outline of a company that is trying to contract work with a government office. This statement describes the company, its capabilities and its expertise.

Information

A capability statement details a company’s basic information, contact information and selling points of the company. It should be presented on business stationary and should be only one page. A company’s logo is placed on the form and it should be saved and submitted as a PDF file. A new capability statement is constructed each time a company applies for a different job.

Purposes

Most government agencies hiring contractors require a capability statement from all contractors looking into a job. The statements prove contractors' qualifications and abilities, and they show records of past performance.

Sections

Capability statements should include three sections: core competencies, past performance and differentiators. Core competencies outline the organization's main expertise and how it specifically relates to the agency work for which it is applying. Past performance lists instances of similar work and for whom the work was done. Differentiators should detail what sets the company apart from others.

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