How to Write a Capability Statement for Government Tenders

A capability statement is the single most important document for any business pursuing government work. It is not a brochure. It is not a company profile. It is a concise, evidence-based document that proves you can deliver what the buyer needs.

Every state and federal procurement office in Australia expects one. If you do not have a strong capability statement, you are losing opportunities before you even submit a tender response.

What Is a Capability Statement?

A capability statement is a short document — typically one to two pages — that summarises your business’s competencies, experience, and capacity to deliver specific work. Government buyers use it to quickly assess whether your business is worth considering for a contract.

It differs from a company profile or marketing brochure in one critical way: it is structured around the buyer’s needs, not your story. A company profile tells the world who you are. A capability statement tells a specific buyer why you are the right choice for their requirement.

Government evaluation panels spend less than two minutes scanning each capability statement. If yours does not immediately communicate relevance, it gets passed over.

Key Sections Every Capability Statement Needs

While formats vary, Australian government agencies consistently expect these sections:

Company Overview

Your ABN, business name, year established, location, and a two-to-three sentence description of what you do. Keep this tight. Do not waste space on your founding story or corporate values — the evaluator needs facts.

Core Competencies

This is the most important section. List the specific services or products you deliver that are relevant to the buyer. Use language that mirrors how government agencies describe their requirements. If you are targeting IT contracts, say “cloud migration and managed services” not “digital transformation solutions.”

Limit this to four to six competencies. Listing everything you have ever done dilutes your message.

Past Performance and Case Studies

Government buyers want proof. Include two to three brief case studies that demonstrate you have delivered similar work successfully. Each case study should cover:

• The client (government clients carry more weight)
• The problem or requirement
• What you delivered
• The outcome or result (quantified where possible)

A case study that says “delivered a $2M network upgrade for Queensland Health, completed on time and 8% under budget” is worth more than a page of marketing copy.

Key Personnel

List the people who would actually work on the contract. Include their name, role, qualifications, and relevant experience. Evaluators want to see that your team has done this kind of work before, not just that your company has.

Certifications and Compliance

List relevant certifications, licences, insurance, and compliance credentials. For government work, this typically includes:

• Professional indemnity and public liability insurance
• Work Health and Safety documentation
• Quality management certifications (ISO 9001)
• Industry-specific certifications (ISO 27001 for IT, prequalification schemes for construction)
• Security clearances if applicable

Contact Details

Full business contact information including a named contact person, phone, email, and physical address.

How to Tailor Your Capability Statement

The biggest mistake businesses make is creating one generic capability statement and sending it to every opportunity. Government procurement is not one-size-fits-all.

Before submitting your capability statement, research the agency and opportunity:

1. Read the tender documentation carefully. Note the language used to describe requirements and mirror it in your capability statement.
2. Check the evaluation criteria. Your capability statement should directly address the criteria the agency will use to assess responses.
3. Review the agency’s past contracts on AusTender. Understanding what they have bought before tells you what they value.
4. Adjust your case studies. Lead with examples most relevant to this specific opportunity, not your biggest or most recent project.

Common Mistakes That Kill Capability Statements

Too long. If your capability statement is more than two pages, you are saying too much. Evaluators do not have time for a novel. Cut ruthlessly.

Too generic. “We are a leading provider of innovative solutions” tells the evaluator nothing. Be specific about what you do, for whom, and what results you deliver.

Outdated information. A case study from 2015 suggests you have not done relevant work recently. Review and update your capability statement quarterly. Remove old projects and add recent ones.

Poor design. Government evaluators are professionals, but presentation matters. A clean, well-formatted PDF with consistent branding signals professionalism. A Word document with inconsistent fonts signals the opposite.

Listing everything. You may offer 20 different services, but if the buyer needs three of them, your capability statement should focus on those three. Relevance beats comprehensiveness.

No evidence. Claims without proof are worthless. “We have extensive experience in government IT” means nothing without project names, clients, and outcomes. Every claim should be backed by a specific example.

Capability Statements in the Tender Process

Capability statements serve different roles at different stages of procurement:

• Expressions of Interest (EOI): Your capability statement is often the primary submission document. The agency uses it to shortlist suppliers for the formal tender stage.
• Panel applications: When applying for government panels or Multi-Use Lists, your capability statement supports your application alongside detailed questionnaire responses.
• Open tenders: Your capability statement supplements your full tender response, providing a quick reference for evaluators.
• Direct approaches: When agencies approach the market directly for lower-value procurements, your capability statement may be the only document they see.

Getting Started

If you do not have a capability statement, start with your strongest service area and your best two to three case studies. Write a first draft in plain language — no jargon, no marketing fluff. Have someone outside your business read it and tell you what they understood. If they cannot explain what you do and why you are good at it after reading two pages, rewrite it.

Update it quarterly. Treat it as a living document. Every significant project you complete should be considered for inclusion.

The businesses that win government contracts are not always the biggest or the cheapest. They are the ones that make it easiest for evaluators to say yes. A strong capability statement is how you do that.

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Related Reading

• Government Tendering for Beginners
• Tender Response Writing Guide
• Understanding the Australian Procurement Process