Federal Contractor Readiness Guide

How to Create a Capability Statement

Build a one- or two-page federal capability statement with core competencies, differentiators, NAICS/PSC codes, past performance, and SAM identifiers for outreach and teaming.

Proposal Readiness

What it is

A capability statement is a concise marketing document federal contractors use to introduce their firm to contracting officers, primes, and partners. SBA publishes a standard optional format for small businesses.

Who needs it

New and growing contractors who need a leave-behind for industry days, DSBS/SAM profiles, and prime subcontracting discussions.

Prerequisites

  • Active SAM.gov registration with UEI and CAGE
  • Selected NAICS and PSC codes that reflect actual work

Step-by-step process

  1. 1. Download the SBA capability statement template

    Start from SBA's optional format to ensure you include core competencies, differentiators, and corporate data buyers expect.

    Official reference: https://www.sba.gov/document/support--capability-statement-template-simple-version-word

  2. 2. Draft core competencies and differentiators

    List three to five capabilities tied to NAICS/PSC codes and measurable differentiators (certifications, facilities, clearances) supported by evidence.

    Official reference: https://www.sba.gov/document/support--capability-statement-template-simple-version-word

  3. 3. Add identifiers and socioeconomic status

    Include UEI, CAGE, small business and certification status consistent with SAM.gov and SBA certifications.

    Official reference: https://sam.gov/content/entity-registration

  4. 4. Validate past performance and contact data

    List recent federal or commercial contracts relevant to target agencies and provide a dedicated government-facing point of contact.

    Official reference: https://www.sba.gov/document/support--capability-statement-template-simple-version-word

Information and documents you need

  • UEI
  • CAGE
  • NAICS and PSC codes
  • Past performance summaries
  • Optional SBA template output (PDF or Word)

Cost

Using SBA's free capability statement template does not incur a federal fee.

Typical processing time

Drafting is internal; no federal processing time applies.

Common mistakes

  • Marketing language without verifiable codes or past performance
  • Certifications listed that are not active in SAM.gov
  • Overlong brochures instead of a one-page leave-behind

What happens after approval / completion

Share the statement during outreach, upload excerpts to DSBS, and align content with proposal past-performance volumes when you bid.

Official sources

Related acronyms

Related guides

Related federal market intelligence

Last reviewed / updated: September 20, 2026