Writing a Capability Statement That Wins Contracts

If you run a small or mid-sized manufacturing company, you know that landing contracts isn’t just about having a quality product. Often, it’s about how well you communicate what your business can do and how you stand out from the competition. That’s where a well-crafted Capability Statement comes in.

What Is a Capability Statement?

A Capability Statement is a concise document that summarizes your company’s skills, experience, and qualifications. Think of it as your business’s resume — but for government agencies, prime contractors, or commercial clients looking for reliable partners. It should quickly tell potential clients why they should choose you over others.

Why Is a Capability Statement Important?

• Builds Trust: Demonstrates your expertise and reliability.

• Highlights Differentiators: Shows what makes your manufacturing company unique.

• Facilitates Opportunities: Serves as a key marketing tool to win government or private contracts.

Key Components of a Winning Capability Statement

1. Company Overview

Start with a brief paragraph describing your business — who you are, where you’re located, and what you make. Keep it straightforward but impactful.

• Example: XYZ Manufacturing has been providing high-quality metal fabrication services in Ohio since 2005.

2. Core Competencies

List your primary skills, products, and services. Focus on what you excel at and what your target clients need.

• Example: Precision machining, welding, metal stamping, assembly services.

3. Past Performance

Highlight successful projects, particularly those relevant to your target clients. Use specific details — the type of work, results, or certifications.

• Example: Supplied fabricated aluminum parts for ABC Automotive, resulting in a 15% reduction in assembly time.

4. Differentiators

Explain what sets you apart. Do you have specialized equipment? Fast turnaround? Skilled workforce?

• Example: Certified ISO 9001 manufacturer with a fast-turnaround guarantee for urgent orders.

5. Company Data and Certifications

Include business info, licenses, certifications, and size standards.

• Company D-U-N-S number

• NAICS codes — these are industry classification codes. See more at Census Bureau’s NAICS site

• Certifications like ISO 9001, AS9100, or Small Business certifications if applicable.

6. Contact Information

Make it easy for them to reach you. Include your phone number, email, and website.

Tips for Crafting an Effective Capability Statement

• Keep It Short: One to two pages maximum.

• Use Clear Language: Avoid jargon, unless it's common in your industry.

• Be Honest: Do not exaggerate; trust builds long-term relationships.

• Tailor It: Customize your statement for each client or opportunity.

Sample Structure of a Capability Statement

Conclusion

A well-prepared Capability Statement is a simple yet powerful tool. It helps you showcase your strengths quickly and clearly. Take the time to tailor it for each opportunity, and keep it updated. When done right, it’s your foot in the door to new contracts and long-lasting relationships.

For more resources, check out the Small Business Administration’s guide on crafting effective Capability Statements.