Definition of a Capability Statement

by Jennifer VanBaren ; Updated September 26, 2017
Companies use capability statements to make business deals with the government.

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.


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.


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.

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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.

About the Author

Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.

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