Federal Grants
Capability Statement: What to Include, With an Example
Grant Writing Service Editorial Team
June 12, 2026 · 5 min read
Table of contents
Key takeaways
- A capability statement is a marketing document for government contracting, usually one page, not a grant application form.
- Lead with the core competencies that match the buyer's need, then prove them with past performance.
- Include the identifiers buyers use to check you: UEI, CAGE code, NAICS codes, and certifications.
- Keep a master version and tailor the competencies and past performance for each agency or opportunity.
A capability statement is a short marketing document, usually one page, that tells government buyers and prime contractors what your business does, what you have delivered before, what sets you apart, and how to verify and contact you. Small businesses use it in government contracting: handing it to contracting officers and small business specialists, attaching it to responses to sources sought notices and requests for information, and sending it to prime contractors looking for subcontractors. Think of it as a resume for your company, tailored to the buyer reading it.
It is not usually part of a grant application. Federal grant applications ask for organizational capacity inside the narrative and on standard forms such as the SF-424. Some nonprofits and research organizations still keep a capability statement for partnership pitches, subaward conversations, or state and local contracts.
The sections buyers expect
Agency small business offices, APEX Accelerators (the federally funded procurement assistance centers formerly called Procurement Technical Assistance Centers), and Small Business Development Centers all describe roughly the same structure.
- Header and company overview. Company name, logo, and two or three sentences on what you do and for whom. Skip the mission statement; say what you deliver.
- Core competencies. Five to eight specific services or products, in the buyer's terms. "Phase I environmental site assessments" beats "comprehensive environmental solutions." Mirror the language of the agency's requirements where it honestly applies.
- Past performance. Three entries showing you have done this work, each with client, scope, value, period, and a measurable result. This is the block buyers trust most; our guide to writing the past performance section covers it entry by entry, including what to write if you have no federal history.
- Differentiators. What a buyer gets from you that a competitor cannot honestly claim: a specialized method, licensed or cleared staff, geographic coverage, equipment, response time. If a rival could paste the sentence into their own statement, cut it.
- Company data. The identifiers buyers use to check you in SAM.gov and judge eligibility for set-asides:
- Unique Entity Identifier (UEI) and Commercial and Government Entity (CAGE) code
- Primary and secondary North American Industry Classification System (NAICS) codes
- Small business certifications, such as 8(a), HUBZone, woman-owned small business, or service-disabled veteran-owned small business
- General Services Administration (GSA) schedule or other contract vehicles, if you hold any
- Business size and year founded
- Contact information. A named point of contact with direct phone and email, plus website and address.
If you are not yet registered, finish SAM.gov registration first; your UEI comes from that registration, and the CAGE code is assigned through it. Our guide to SAM.gov and Grants.gov registration walks through the process.
A complete example
The example below is illustrative. The company, clients, and identifiers are fictional.
CEDAR RIDGE ENVIRONMENTAL, LLC Environmental assessment and permitting support for federal and state agencies
Company overview Cedar Ridge Environmental is a woman-owned small business providing site assessment, wetland delineation, and environmental permitting support for infrastructure and land management projects across the Mountain West. Founded in 2014; 22 staff, including licensed professional geologists and certified wetland scientists.
Core competencies
- Phase I and Phase II environmental site assessments
- Wetland delineation and jurisdictional determinations
- National Environmental Policy Act documentation: categorical exclusions and environmental assessments
- Stormwater pollution prevention plans and inspections
- Geographic information system mapping and field data collection
Past performance
- Federal land management agency, regional office. Environmental assessments for 14 trail and facility projects. $1.2M, three years. All documents accepted without major revision; task order extended twice.
- State department of transportation. Wetland delineation for 38 miles of highway corridor. $640K, two years. Delivered field surveys six weeks ahead of the permitting schedule.
- Prime contractor (subcontract), federal military installation. Phase II site assessments at four former fuel storage sites. $410K, 18 months. Zero safety incidents; client rated performance "very good."
Differentiators
- Two field crews based within 90 minutes of most federal land units in the region
- In-house geographic information system team delivering data in the formats agencies specify
- Average 10-business-day turnaround on Phase I reports
Company data UEI: XXXXXXXXXXXX · CAGE: XXXXX NAICS: 541620 (primary), 541370, 541690 Woman-owned small business, certified through the Small Business Administration Small business under all listed NAICS codes
Contact [Name], Business Development Director · [phone] · [email] · [website]
Notice what the example does. The tagline and competencies say exactly what the company sells. Each past performance entry ends on a result, not a duty. The differentiators are specific enough that a competitor could not copy them truthfully. The company data block gives a contracting officer everything needed to look the firm up and check set-aside eligibility. Before you list any NAICS code, confirm it on the Census Bureau's NAICS site and check the size standard in the Small Business Administration's table for that code.
For a fill-in version with this layout, use our free capability statement template.
Tailoring it for each buyer
A single statement sent to everyone is the most common reason these documents get ignored. Keep a master version with every competency and every past performance entry you could use, then cut it down for each target:
- Read the agency's recent awards and forecasts. Lead with the competencies that match what it actually buys.
- Swap past performance entries for the three most relevant to that buyer, even if they are not your largest contracts.
- Use their vocabulary. If the requirement says "jurisdictional determinations," so should you.
- List the NAICS codes that match the opportunity first.
Format and delivery
Fit it on one page if you can, two at most. A two-column layout works well: overview and competencies on one side, past performance and differentiators on the other, company data and contact across the bottom. Use your logo and colors, but keep text readable at normal size. Save it as a PDF with a clear file name that includes your company name, and keep the print version and the emailed version identical.
APEX Accelerators and Small Business Development Centers will review a capability statement at no cost, which is worth doing before your first outreach push.
If your business is also pursuing federal grants, such as SBIR awards, those applications need a full narrative, budget, and forms rather than a capability statement; see our guide to the federal grant application process for how it differs.
