Creating an Effective Capability Statement

Government contracting has developed into a very competitive marketplace, thanks to its
potential for being very profitable. Companies of all sizes, from small, micro-firms with one
employee to large, mega-firms with thousands of employees, have been successful in selling
products and services to government agencies at the federal, state, city, county and municipal
levels. Competition in government contracting has heightened as more companies try to break
into, be competitive in, and stay successful in this market.

Furthermore, fewer people are employed by the government to handle an increasing number of
outreach and acquisitions, creating an acquisition workforce that is pressed for time.

To be competitive in this market, contractors must know how to distill the information that is
most important to a particular decision-maker, state it in a clear, concise manner, and reinforce
its importance to the prospect, even more so than in the past.

A Capability Statement is a tool that will help you do just that! Five years ago, no one knew
what a Capability Statement was, and now, it is a critical tool to help you be as successful as
possible, no matter what size company you represent.

Capability Statement: Definition and Uses

In its simplest form, a capability statement is a promotional or marketing statement about your
business and its capabilities and skills that advertises who you are and what you do. However,
Capability Statements must be tailored to your audience: the government buyer or prime
contractor.

Successful firms use their Capability Statement for a number of purposes:

• Required in many government registration processes
• A door-opener to new agencies
• Proof of qualification
• Proof of past performance
• It will set your apart from your competitors

Capability Statement Format

A Capability Statement should be very brief (only 1 or 2 pages) and to the point. It is important
that the document be visually interesting and have similar graphic elements to your company's
brand and logo. Therefore, we recommend that Capability Statements are created in Word or
Publisher using a template that reflects a firm's brand with its own logo, colors and graphic
identity.
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It is important to fit all critical information on one side of one page. The second side, if
absolutely necessary, may contain additional supporting data important to the targeted agency
such as case studies of past successful projects.

Tip: It is best to call the document a Capability Statement. This should be stated at the
top of the document. This is a term known by government contracting decision-makers
and indicates that you have knowledge of the contracting process.

A Capability Statement should also show a firm's logo and other branding elements for
recognition and be free of long paragraphs, instead, using short sentences and bulleted
lists for quick visual scanning.

A Capability Statement is preferably only one page, one side. Go to two sides only if
absolutely necessary.

Save and distribute as a PDF, not a Word, PowerPoint or other format. Save the
document with your company's name in the file name. Many federal agencies block Word
and Publisher documents because they may harbor viruses, however, a PDF file is much
safer, usually smaller and stays visually consistent when mailed.

Capability Statement Contents

The five key areas included in a successful Capability Statement are:

1. Core competencies / capabilities
2. Differentiators / including facilities and equipment
3. Past performance
4. Corporate data including industry codes
5. Contact information

When composing a Capability Statement, use the following section labels: Core Competencies,
Past Performance, and Differentiators. These are the key elements that government buyers are
looking for so that they can make a speedy decision.

1. Core Competencies
These are short introduction statements relating the company's core competencies to the agency's
specific needs followed by key-word heavy bullet points. This is NOT everything a firm is able
to do, but the core expertise of a firm, specifically related to the agency this Capability Statement
is written for, its mission and identified opportunities.

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2. Differentiators
Doing business with the government is highly competitive. Contractors have the burden of
dealing with this competitive market and rising above the other contractors. Many companies
who are trying to increase sales to the government market do not have a clear value statement
detailing what makes them different from their competitors. A succinct, clear statement that
relates to the specific needs of the agency is what will help the procurement and purchasing staff,
the program managers and end users understand why they should pick your firm over other
competitors.

Sample Differentiator Questions:

How is your company best suited for the needs of this agency? What is it about your services that
make you stand out from the rest? What is it about your people that give you the advantage over
your competitors? Why are your products better solutions than the others that are available?

If these benefits cannot be clearly communicated, it is impossible for a decision-maker to make a

clear recommendation for your company over one of your competitors. Many companies fail to
take this critical step. And they wonder why they are missing out on contracts.

3. Past Performance
Begin by listing past customers for whom your business has done similar work. Prioritize
starting with related agency, to all federal to other government, to commercial contracts. If the
past projects do not relate to the targeted agency's needs, do not list it.

Tip: Ideally, include specific contact information for immediate references. Include
name, title, email and phone. Use this information when meeting with decision-makers.
Leave this information off the Capability Statement when you are sending the PDF as an
initial outreach effort or leaving as a handout at conferences.

4. Company Data
Include one or two short sentences with a company description detailing pertinent history.
Include the size of your firm, your revenue, the number of employees you have, and the typical
geographic area you serve.

Tip: Readers will visit your web site for additional information. Make sure your web site
is constantly updated and government-focused.

List Specific Pertinent Codes

• DUNS
• Socio-economic certifications: 8(a), HUB Zone, SDVOB, etc.

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 • NAICS (all) Do not include code descriptions, just use the numbers
• CAGE Code
• Accept Credit and Purchase Cards
• GSA Schedule Contract Number(s)
• Other federal contract vehicles
• BPAs and other federal contract numbers
• State Contract Numbers
• Name (a specific person)
• Address
• Phone (main and cell)
• Email (a personal email, not info@)

5. Contact Information
Show contact information, including web site and a specific person's name, email and phone
number, on each side or page of the document.

If your firm has won any awards, received accolades or has notable accomplishments relating to
that agency, list them only if you have space.

Using this information will help in creating a Powerful Capability Statement and open doors to
contracting opportunities in the federal government. This document is the key to building
relationship with important decision-makers in government contracting, providing them with a
concise description of the goods and services your business can provide, and a consistent
reminder of your firm. When properly written, a Capability Statement is the tool that sets your
company head and shoulders above your competition.

The following page contains an example of a Capability Statement. This statement has been
created based on a fictitious company. Details bearing any resemblance to any actual company
is purely coincidental.

Note: This document is provided as a tool to assist you to develop a Capability Statement. While the information
contained herein should benefit you in your efforts to design a Capability Statement, following this advice will not
guarantee you a contract award. The SAP&DC PTAC assumes no liability for use of this document.

Article Source: http://EzineArticles.com/?expert=Gloria_Berthold_Larkin

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 Company Data
3PL VETS - EXCELLENCE IN LOGISTICS
3PL Vets is a SDVOSB
Third Party Logistics VetS 2515 3PL Way, Altoona, PA 16601
(tel) 814-555-1234 | (fax) 814-555-5678
provider with over WORLDWIDE www.vetsworldwide3PL.com
$4.3 million in annual LOGISTICS

revenue and nearly

100 employees
worldwide. CAPABILITY STATEMENT
Capabilities
DUNS: 054893485
Experts in:
CAGE: 7BAY5
 Supply chain management, order management, logistics management,
NAICS Codes:
optimization and visibility
488190 - Other Support
Activities for Air Transpor-  Creative, global 3PL solutions that address needs ranging from single
tation transactions to some of the largest and most complex supply chain
488210 - Support Activi- challenges
ties for
RbaoildTjrfaknasdpfojrt  Open and scalable technology that is readily integrated into existing
a- operations, and extended as needs evolve
tion
488390 - Other Support  Lean logistics focusing on reducing waste and inventory, standardized
Activities for Water work and mistake proofing
Trans- portation
488490 - Other Support Differentiators
Activities for Road Trans-
Leading the way…
portation
488510 - Freight Trans-  Utilizing our services has resulted in an
portation Arrangement average savings of 22% per customer
488991 - Packing and
Crating  Three year average of 99.78% on-time
488999 - All Other Sup- delivery rate with no lost shipments and no accidents
port Activities for Trans-
portation  Our Green Initiatives are setting a new industry standard! 3PL
Vets has been a SmartWay partner since 2007, committed to reducing
493110 - General Ware-
carbon footprint by focusing on energy conservation, waste reduction,
housing and Storage recycling and procurement
541614 - Process,
Physical Distribution, and  3PL Vets was named a Top 100 3PL Provider by Inbound Logistics
Logistics Consulting Ser-
A Service Disabled Past Performance
Veteran Owned
Certified Rated “Outstanding” by our customers!
Small
Business
 US Department of Defense Surface Deployment and Distribution
(SDDC) approved supplier
Contact Information
 USTRANSCOM preferred vendor for transportation services
David Williams
VP, Government Service  GSA Schedule contract holder (GS48F2824B) and preferred vendor
814-555-1233 for travel and relocation services
[email protected]