People who are applying for a new job opening will do their best to win the employer’s consideration. Especially in a situation where you don’t have the connection to land the job, you want to put everything into making a lasting impression. You might have the right resume and cover letter, but that is not enough; other applicants have similar or better ones. You need to capture the employer’s interest from the beginning—a cover letter and a resume that make you stand out from the crowd. That is exactly what a capability statement does when it comes to applying for contract as a construction company. 

A capability statement is a unique type of written document a contractor tender to customer or agencies of government, indicating why they should trust and do business with their company. It is a statement that small businesses used to encourage the government to do business with them.

Your capability statement is like a resume indicating your personal and organizational achievements, competences, associations and due accreditations.

Are they relevant for all types of contracts?

Yes. Any capability statement you submit a s business must be relevant to the agency and the type of contract you are bidding for. Therefore, a business may have to come up with different forms of this depending on the agency it is dealing with, and the mature of the contract involved.

How to prepare your capability statement?

While there are no hard and fast rules on how to structure your capability statement, it is necessary that you spent time on it to get it right. 

First, visit the website of the federal agency you are trying to convince, and learn what their mission statement stands for.  Think about how best your business can assist them in achieving their goals and objectives. Note down whatever critical challenges such agencies might be facing, and match it to what your business offers. If there is something you can do or an area where you can be of help, structure your capability statement around that form. Give them a picture of how dealing with you can help produce a quicker result or at a lower cost. 

The length of capability statement shouldn’t be more than two pages. It should contain all relevant information about your business and the subject matter it seeks to achieve. It is best to keep it simple and such that a government official can read through it quickly and possibly invite you to undertake a capability briefing, which may lead to award of the contract. 

What to keep in mind when preparing your capability statement?

All efforts to win a contract through your capability statement will prove fruitless if you fail to keep in mind or comply with the followings why preparing your statement:

• An “Elevator Speech” that describes your expertise in 20 seconds
• Business registration with System for Award Management (SAM)
•  Your business North American Identification Codes (NAICS), Cage Code, DUN Number, etc; are they available?
• Do you have relevant financial support that will keep your business afloat till government initiate payment?
• Is your business well equipped and ready to perform the task under consideration?
• What is your business bonding capacity, supposing you’re a construction company? 

Headings in your capability statement

The followings should form important headings when designing and structuring your capability statement:

• Your area of service 
• Offices or facilities locations
• Business website address
• Contact point
• Cage Code
• Your business DUN’s number
• E-mail address
• Fax number
• Phone number

Certification

If you have any form of certification known to the Small Business Administration (SBA), make sure to include it in the area of certification.

Conclusion

Your capability statement should be able to capture the attention of the relevant government official within 10 seconds. Otherwise, it will find its way down below the pack. Make sure you get it right.

This blog was written by Linda Rawson, who is the founder of DynaGrace Enterprises (dynagrace.com) and the inventor of WeatherEgg (weatheregg.com). She, along with her daughter, Jennifer Remund make up the mother-daughter duo of 2BizChicks (2Bizchicks.com).  For further information, please connect with Linda on LinkedIn, or contact her at (800) 676-0058 ext 101.

Please reach out to us at GovCon-Biz should you have any questions.