How to write an effective capacity statement for government contractors

What is the purpose of a capacity statement?

Public procurement has become a very competitive market, thanks to its potential to be very profitable. Businesses of all sizes, from small micro-businesses with one employee to large mega-businesses with thousands of employees have been successful in selling products and services to government agencies at the federal, state, municipal, and municipal levels.

However, competition has intensified as more companies try to enter, be competitive, and remain successful in this market. Five years ago, no one knew what a Statement of Capability was, and now, it is a critical tool to help you be as successful as possible, no matter the size of the company you represent.

Another complicating factor is that the government employs fewer people to handle extension and procurement. This means that contractors must know how to extract the information that is most important to a particular decision maker, express it clearly and concisely, and reinforce its importance to the potential customer, even more than in the past.

Successful companies use their Statement of Capability for several purposes:

o Required in many government registration processes

o A door opener to new agencies

o Qualification test

o Past performance test

o It will differentiate you from your competitors

Capacity declaration format

A Statement of Capability should be very brief (1-2 pages only), to the point, and specifically related to the needs of the individual agency. Ideally, it is a living document that will change depending on the target agency. Why is this? Because smart contractors know that each agency has its own mission and focus, and they speak directly to those in their capacity statement.

It is important that the document is visually interesting and has graphic elements similar to your company brand and logo. It should also be a searchable document that can be easily sent as a PDF file.

Therefore, we recommend that Capability Statements be created in Word or Publisher using a template that reflects a company’s brand with its own logo, colors, and graphic identity. It is important to put all critical information on one side of a page. The second side, if absolutely necessary, can contain additional supporting data important to the target agency, such as case studies of previous successful projects.

Content of the capacity statement

The five key areas included in a success are:

1. Basic competences

2. Past profitability

3. Differentiators

4. Corporate data

5. Contact information

Advice:

It is better to call the document Declaration of Capability. This should be indicated at the top of the document. This is a term familiar to all government hiring decision makers and indicates that you have knowledge of the hiring process. A Statement of Capability should also display a company logo and other branding elements, for recognition, and be free of long paragraphs, instead you should use short sentences and bulleted lists for quick visual scanning.

When writing a Statement of Capability, use the following section labels: Core Competencies, Past Performance, and Differentiators. These are the key elements that government buyers look for in order to make a quick decision.

Display the contact information, including the website and the name, email, and phone number of a specific person, on each side (page) of the document.

Create a new document for each agency, lead, or team building opportunity. In this way, each Capability Statement has all the information you need for that opportunity and only the necessary information.

A capacity statement is preferably one page, one side. Go two ways only if you absolutely have to.

Save and distribute as PDF, not Word, PowerPoint, or other format. Save the document with your company name in the file name. Many federal agencies block Word and Publisher documents because they may contain viruses; however, a PDF file is much more secure, generally smaller, and remains visually consistent when mailed.

Core competencies

These are short introductory statements that relate the core competencies of the company to the specific needs of the agency, followed by bullet points with lots of keywords. This is NOT all that a company can do, but rather the core expertise of a company, specifically related to the agency for which this Statement of Capability is written, its mission and identified opportunities.

Past performances

Start by listing previous clients for whom your company has done similar work. Prioritize from the related agency, to all federal governments to others, to commercial contracts. If past projects do not relate to the needs of the target agency, do not include them.

advice: Ideally, include specific contact information for immediate referrals. Include name, title, email and phone number. Use this information when meeting with decision makers. Leave this information out of the Statement of Capability when submitting the PDF as an initial outreach effort or leaving it as a brochure at conferences.

Differentiators

Doing business with the government is very competitive. Contractors have the burden of dealing with this competitive market and outperforming other contractors. Many companies trying to increase sales to the government market do not have a clear value statement detailing what makes them different from their competitors. A clear and concise statement that relates to the specific needs of the agency is what will help procurement people, program managers, and end users understand why they should choose your company over other competitors.

Examples of differentiating questions:

How is your company best suited to the needs of this agency? What do your services have that make you stand out from the rest? What do your people have that gives you an advantage over your competitors? Why are your products better solutions than the others available?

If these benefits cannot be clearly communicated, it is impossible for a decision maker to make a clear recommendation to your company over one of your competitors. Many companies fail to take this critical step. And they wonder why contracts are being lost.

Company data

Include a short sentence or two with a description of the business detailing relevant history. Include: the size of your business, your income, the number of employees you have, and the typical geographic area you serve.

advice: Readers will visit your website for additional information. Make sure your website is constantly updated and focused on the government.

List specific relevant codes

  • DUNS
  • Socio-economic certifications: 8 (a), HUB Zone, SDVOB, etc.
  • NAICS (all) Do not include code descriptions, just use numbers
  • Cage code
  • Accept Credit Cards and Purchase
  • GSA program contract number (s)
  • Other Federal Contract Vehicles
  • BPA and other federal contract numbers
  • State contract numbers
  • Name (a specific person)
  • Speak to
  • Telephone (main and cell)
  • Email (a personal email, not info @)

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

Use this information to help you create a powerful Statement of Capability and open doors to federal hiring opportunities. This document is the key to establishing relationships with important decision makers in public procurement, providing them with a concise description of the goods and services that your company can provide, and a constant reminder of your company. When written correctly, a Statement of Capability is the tool that puts your company above the competition.

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