Government contracting demands more than just competitive pricing – it requires strategy, infrastructure, and a deep understanding of agency requirements. For Margarita Howard, sole owner and CEO/president of HX5, success in this challenging sector stems from early strategic decisions that positioned her company for long-term growth.

Since its founding in 2004, HX5 has grown to employ over 1,000 people across 34 states and 90 government locations. The company provides specialized services in research, development, testing, evaluation, hardware and software engineering, and mission support operations primarily to NASA and the Department of Defense.

Strategic investment creates competitive advantage

Howard recognized from the beginning that infrastructure investments would be crucial for gaining credibility with government agencies. “Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms,” Howard explains. “A system we knew the government was very familiar with and that would provide us the necessary accounting tools to pass government billing audits and gain government approval for use in the performance of our government contracts.”

This foresight paid dividends as HX5 competed for contracts. “So, that was also very attractive to large businesses, that we were very small at the time and that we already had this government accounting system in place that those large businesses had,” Howard continues.

Rather than relying solely on set-aside contracts through the Small Business Administration’s 8(a) program, Howard insisted on competing broadly. “I had that competitive edge or desire,” Howard notes. “I knew that I didn’t want HX5 to be dependent on sole-source awards.”

This philosophy shaped the company’s trajectory. “We had been in the industry, we knew small businesses in our area, and that’s what many of them did. And once the program was over after nine years, they were done. They had never competed. They had never really done it on their own,” Howard states.

Building relationships through performance

Howard emphasizes that strong relationships with government agencies emerge from consistent delivery and demonstrated expertise. “Large businesses and the government have to meet small-business goals,” Howard explains. “So when they find a small company that they know understands the industry, that performs well, takes care of its employees, and know they’re not going to have to hold their hand, so to speak, that makes for a very positive long-term relationship between the two companies and oftentimes leads to new contracts and the expansion of existing work.”

The company’s success comes from maintaining impeccable records and transparency with government partners. “From working in the industry, we knew the importance of impeccable record keeping,” she says. “Therefore, we’ve always ensured our finances, and all our records of everything we say we do must always be supported with the appropriate documentation and recorded accurately because, as a government contractor, all of our records are open to the government’s inspection and audits at any time.”

Selecting and developing the right talent

Finding qualified personnel presents a significant challenge in government contracting. Howard refers to particularly difficult positions to fill as “purple unicorns” – candidates with rare combinations of technical expertise, security clearances, and specific experience.

The company focuses primarily on STEM fields (science, technology, engineering, and mathematics), which are essential for supporting Department of Defense and NASA missions. “We prefer to hire experienced individuals, so we look for people that have worked with, or supported, NASA or the Department of Defense,” Margarita Howard says. “Experience in their respective fields, while supporting these agencies’ respective programs and missions, is very different than experience gained from working in the commercial world.”

Howard sums up her guiding principles for business success: “Our guiding principle is to lead by example. We hold ourselves to the same high standards of performance, and integrity, and honesty that we would expect of our employees. We try to remind them always that our customers have important missions, and we are trusting in them to help us support our customers. We always want to provide the best possible services at the highest levels,” Howard concludes.

Through strategic planning, relationship building, and talent development, Howard has successfully navigated the complex government contracting environment, establishing HX5 as a trusted partner for critical federal missions.

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