How this guide was made: drafted with AI assistance from the official sources linked below, then passed an automated editorial check before publishing. Our process

A good capability statement example is one page with five blocks: company data (UEI, CAGE, NAICS codes, small business status), core competencies, past performance, differentiators and contact details. Government buyers often spend less than 30 seconds on a statement. So the blocks that answer "can this firm count toward a small business set-aside, and does it do exactly what I need?" belong where the eye lands first. The rest of this guide shows that layout, a labeled sample, and the SAM.gov and SBA steps that make the page match what buyers find when they look you up.

Which option is right for you?

The right starting point depends on whether you're registered yet, whether you're chasing a specific notice, and whether you have money for outside help.

If you have to pick one: when there's no deadline, start with the SBS profile, because the narrative you write there becomes the text of your statement too.

Why contracting officers read some sections first

Buyers check eligibility before capability, because their first job is deciding how to buy, not who to buy from.

The SBA's guidance for contracting officials says that if at least two small businesses could do the work at a fair price, the contract should generally be set aside for small businesses. It also says contracts from $15,000 to $350,000 are automatically and exclusively set aside for small businesses (SBA, guidance for contracting officials). The same page tells officials to use the Small Business Search (SBS) as part of their market research.

What this means for you: a buyer doing market research needs to know quickly whether you're small under the NAICS code they're using, and whether you hold a certification such as 8(a), HUBZone, WOSB or SDVOSB. When the UEI, CAGE code and size status are hidden in a footer, the buyer has to hunt for them. Generic statements get skipped because they make the buyer do that work.

SBA describes the capability statement as a "resume for your business" and often "a government buyer's first impression" (SBA event listing). No official study ranks the sections by reading order. The order below comes from how buyers actually use the document: confirm eligibility, confirm fit, confirm proof.

The 5 elements, in the order buyers check them

Each block below answers one question a buyer has. Put them on the page in roughly this priority.

1. Company data block (top or right column)

This block tells the buyer whether you count. Include your UEI, the 12-character ID assigned in SAM.gov, plus your CAGE code, primary and secondary NAICS codes, any PSC codes, your small business status and your certifications. Other guides also suggest adding entity type, year founded, employee count and bonding capacity if you do construction work (iQuasar).

Check your size before printing "small." SBA's general rule of thumb is 500 employees or fewer for most manufacturers and average annual receipts under $7.5 million for many non-manufacturers, with exceptions by industry (SBA). Look up the exact standard for each NAICS code you list.

2. Core competencies

This block tells the buyer whether you do their thing. APEX counselors advise choosing 4–6 competencies that match the contracts you're actively pursuing, because buyers want specialists, not generalists (SupplierDiversity summary of APEX guidance). Write each one as a deliverable, for example "HVAC preventive maintenance for occupied federal office buildings," not "facility solutions."

3. Past performance

This block tells the buyer whether you've done it before. A common format is three recent contracts, each with customer, contract number, period of performance, value and a one-line outcome (Contractology). Commercial and subcontract work counts if it's relevant. Federal past performance evaluations generally look back three years, or six years for construction and architect-engineer work (GovScout).

4. Differentiators

This block tells the buyer why you instead of the next small firm. Make every claim checkable. Norcal APEX gives a specific warning: replace "we offer competitive pricing" with actual data, such as a percentage difference or a regional comparison (Norcal APEX). Good differentiators include active clearances, specialized equipment, a named certification, or a location that matters to the place of performance.

5. Contact

This block tells the buyer who to call. List one named person, a direct phone number, an email on your own domain, and your website. One person is better than a general inbox.

A capability statement example (layout you can copy)

Below is a fictional example for illustration only. The company, numbers and contracts are invented to show the format.

RIVERBEND MECHANICAL LLC                 | COMPANY DATA
"HVAC maintenance for occupied           | UEI: XXXXXXXXXXXX
 federal facilities in the Ohio Valley"  | CAGE: XXXXX
                                         | NAICS: 238220 (primary), 561210
CORE COMPETENCIES                        | PSC: J041
• Preventive maintenance, 50–500 ton     | Small business (238220)
  chiller plants                         | SDVOSB (SBA-certified)
• 24/7 emergency HVAC response,          | Founded 2016 | 22 employees
  4-hour on-site within 90 miles         |
• BAS controls troubleshooting           | CONTACT
• Refrigerant management (EPA 608)       | Jane Doe, President
                                         | 555-555-0100
PAST PERFORMANCE                         | jane@example.com
• County courthouse HVAC O&M, 2023–2026, |
  $410K, zero missed PM visits           |
• Sub to [prime], VA clinic chiller      |
  retrofit, 2024, $185K, on schedule     |
                                         |
DIFFERENTIATORS                          |
• 6 technicians with active facility     |
  access badges at federal sites         |
• Owned crane truck: no rental lead time |

Notice what's missing. There's no mission statement paragraph and no list of 20 services. Each line answers one of the five questions above.

How to build and publish it: numbered steps

You'll get the most from the statement when the page, your SAM.gov registration and your SBS profile all say the same thing.

1. Confirm SAM.gov registration is active. Sign in at SAM.gov, open your entity under Entity Management, and copy the UEI and CAGE code exactly. If you aren't registered, follow SBA's getting-started steps first.
2. Check your SBS listing. Go to Small Business Search and search your UEI. Profiles show tabs including Profile overview, Certifications, NAICS codes, Service information and Performance history (SmallGovCon). You'll only appear if SAM shows you as small for at least one of your NAICS codes.
3. Edit the capability narrative. Create an SBS account, choose Edit [Business Name], and sign and date the Small Business Certification Statement when prompted (SmallGovCon). Use the same competency phrases and keywords that are on your statement. SBA launched SBS as the replacement for DSBS in July 2025 (iQuasar).
4. Find the opportunity you're writing for. On SAM.gov search, choose Contract Opportunities, then filter Notice Type to Sources Sought and add your NAICS code. Sources sought notices are market research, so your reply can help show the contracting officer that at least two capable small businesses exist.
5. Tailor the page. Reorder the competencies so the notice's scope comes first, and drop past performance that doesn't relate to it, as APEX guidance advises (SupplierDiversity).
6. Export to PDF and name it clearly, for example CompanyName_CapStatement_NAICS238220_2026-10.pdf, then check that it fits one page.

Common mistakes and fixes

Most rejected statements fail for one of a few repeat reasons, and each has a quick fix.

Next steps

Today, spend about an hour making your statement and your SBS listing say the same thing.

DIY actions for today:

1. Search your UEI in SBS and write down any NAICS codes or certifications that are wrong. Fix them in SAM.gov first.
2. Rewrite your core competencies as 4–6 specific deliverables, using the layout example above.
3. Save one Sources Sought search on SAM.gov for your primary NAICS code and draft a version tailored to one notice.

If you'd rather not do it yourself:

• APEX Accelerators (run by the Department of Defense) offer free or nominal-cost counseling, including capability statement reviews (SupplierDiversity overview). This suits first-time bidders who want a second opinion. It's a poorer fit if you need it done in 48 hours, since appointments depend on your local office's schedule. Find yours through the SBA Office of Government Contracting.
• SBA and APEX workshops, such as the APEX capability statement session listed on SBA.gov, suit people who learn best in a class. The limitation is that a workshop teaches you how, but you still have to write the page yourself.
• Paid proposal writers or designers suit firms that bid often and lack staff time. They're not for brand-new firms with no past performance, because good design can't make up for missing proof. Fees vary widely (as of October 2026; get a written quote). Keep in mind SBA's caution that some businesses spend $80,000–$130,000 to win their first contract (SBA).

Related guides on this site: there aren't any yet. This section will link to them once they're published.

FAQ

What should a capability statement include?

Include a company data block (UEI, CAGE code, NAICS codes, size status and certifications), core competencies, past performance, differentiators and contact details. Keep it to one page. Put the eligibility data where it's seen first, because that's what buyers check during market research.

How long should a capability statement be?

One page. Norcal APEX notes rare exceptions, such as long supplier line cards, but says buyers generally won't read a second page (source). If a sources sought notice sets its own page limit, follow the notice.

Can I write a capability statement with no federal past performance?

Yes. Commercial, state, local and subcontract work can all count if it's relevant to the requirement. List the customer type, scope, dates and a measurable result, and don't pad the section with unrelated jobs.

Is the SBS profile the same as a capability statement?

No. SBS is SBA's searchable database, which pulls data from SAM.gov and adds your capability narrative. The capability statement is the PDF you send to buyers. They should use the same keywords and codes, because buyers often check one against the other.

Sources

• SBA – Guidance for federal contracting officials
• SBA – Get started with contracting
• SBA – How to Stand Out with a Capability Statement (event)
• SBA – APEX Accelerator: Developing a Compelling Capability Statement (event)
• SBA – Office of Government Contracting
• SBA Small Business Search
• SAM.gov search
• Norcal APEX Accelerator – 5 Secrets for a Distinguished Capabilities Statement
• SmallGovCon – SBA Introduces its New Small Business Search System
• iQuasar – SBS Replaces DSBS
• iQuasar – Guide to Writing a Capability Statement
• SupplierDiversity – Capability statement guide
• SupplierDiversity – APEX Accelerators overview
• Contractology – Capability statement
• GovScout – Capability statement guide

Originally published at Set-Aside Brief.