The 6 CS of a Powerful Capability Statement

If you’re looking to attract new clients and grow your small business by securing contracts with the state, local and federal governments or Fortune 1000 private sector companies, it’s important to show your new prospective clients what you’re all about as quickly and concisely as possible. Capability statements are a great way to do just that. But crafting an optimal capability statement is much easier said than done. The good news is that by following the 6 Cs of a powerful capability statement, you can create your own capability statement that converts in no time. Keep reading to learn more.

What is a Capability Statement?

A capability statement is a “best-in-class” presentation of your company’s federal contracting resume, including proper formatting, information, and design. It is the standard tool used by federal buyers and decision-makers to conduct an initial evaluation of your organization’s competencies and qualifications.

In a nutshell, the main purpose of a capability statement is to introduce your company to government contracting personnel.

Who Needs a Capability Statement?

Any organization interested in pursuing government or private sector contracts needs a capability statement. Many federal solicitations and procurement and supply chain departments require a capability statement before vendors can submit a quote, bid, or proposal.

The 6 Cs of a Capability Statement

The most important part of a strong capability statement is that it captures the six Cs:

#1. Capabilities Narrative

Your capabilities narrative must introduce your company within 255 characters maximum, including punctuation.

Your capabilities narrative should not be a one-size-fits-all introduction that you send along with every bid. Instead, you should change this narrative based on each potential client, the specific project, and its requirements, scope of work, and how your firm’s skillset and expertise meet — and surpass — what they’re looking for.

#2. Codes

Before you can start doing business with the federal, state, and local government, you should know which codes you need to procure that apply to your business so that you can have the codes in place before you bid on government work.

These codes can also be used in your capabilities narrative mentioned above.

The most common codes used for federal procurements include:

• NAICS (North American Industrial Classification System)
• SIC (Standard Industrial Classification Code)
• PSC (Product Supply Code)
• DUNS (Data Universal Numbering System)
• CAGE (Commercial and Government Entity)
• UEI (Unique Entity ID)

State and Local government entities use:

• NIGP (National Institute of Government Procurement)
• UNSPC (United Nations Standard Products and Services Code)

#3. Core Competencies / Differentiators

What makes your company truly stand out from the rest? What is your unfair advantage? The core competencies section of your capabilities statement is your chance to highlight your business’s core strengths and the offerings that make you stand out in the competitive marketplace. This section is usually a bulleted list that allows agencies to learn more about your company in a way that’s easy to read and not overwhelming.

#4. Company Snapshot and Contact Information

Once your capability statement has intrigued an agency to want to learn more about doing business with you, it’s critically important that there’s a way for them to contact you. That’s why the fourth C in a powerful capability statement is your contact information.

Be sure to include your basic company information and any other way that people can get in contact with you:

• Phone number
• Fax number
• Website address
• Physical address and Mailing Address
• Professional business email address
• Year Established
• State of Incorporation
• Geographic Areas Served
• Industry Size Standard: Small, Large

It is also important to make it easy for your new prospective clients to do business with you and to help your new client reach out to the right individuals in your firm, providing their point of contact information. These include:

• Company President/CEO
• Government POC
• Finance POC
• Past Performance POC
• Facilities Security Officer (FSO), if applicable

#5. Certifications and Credentials

In this section you will list your certifications, which include:

• Socio-Economic Certifications (SBA WOSB, 8A, Veteran-Owned, HUBZone, DBE, MBE, etc.)
• Professional Licenses: Some industries are regulated and require professional licensing such as engineering, construction, electrical, architects, and medical professionals. It is highly recommended to list your license number and credential ID.
• Technical Certifications: Other industries require technical certifications for personnel and for your firm. These include Project Management Professional (PMP), Information Technology Infrastructure Library (ITIL), and Capabilities Model Maturity Index (CMMI), among others

#6. Contracting Vehicles / Customers

In this section, you’ll provide details about your existing contracting vehicles the government agency may use in order to acquire your goods and services on larger solicitations or requirements. List things like the contract type, length, contract number, duties, and results of all commercial and/or federal contracts.

These contracting vehicles include:

• GSA Schedules (General Services Administration)
• IDIQ (Indefinite Delivery Indefinite Quantity)
• MAS (Multiple Award Schedules)
• BPA (Blanket Purchase Agreements)
• MATOC (Multiple Award Task Order Contracts)