Government contractors face many challenges, including stringent compliance requirements, intense competition for specialized talent, and ongoing federal budget uncertainty. While many corporations struggle with these obstacles, HX5under Margarita Howard’s leadership, she overcame these obstacles and built a successful company. The company supports key government projects at 90 locations in 34 states, specializing in research and development, engineering, information technology, mission operations and program management.
Howard’s path to success was not guaranteed. Foundress Margaret Howard she began her profession in the United States Air Force and then moved to the private sector. She launched HX5 with a clear vision to create a government contracting company that will compete successfully while maintaining the highest standards of integrity and efficiency. The company employs over 1,000 people and has secured large government contracts.
Building foundations through strategic risk management
“When we talk to entrepreneurs or new employees, we remind them: we know that what we do is not easy to do, and ensuring that it is done well is very expensive,” says Margarita Howard. “If it were easy, everyone would do it.”
From the very starting, the HX5 enjoyed great success calculated risk which sets it apart from typical small government contractors. The company has already made significant investments in a specialized accounting system designed specifically for government services corporations. This decision turned out to be crucial for gaining credibility in the eyes of government agencies and business partners.
Howard, a graduate of the 8(a) Small Business Administration program, demonstrates her strategic pondering. While many small businesses in the program rely heavily on set-aside agreements, Howard took a different path. “I had this competitive advantage and desire,” she notes. “I knew I didn’t want HX5 to be dependent on sole-source rewards.”
Howard continues, “We worked in this industry, we knew the small businesses in our area and many of them were doing just that. And when the show ended after nine years, it was already over. They never competed with each other. They never really did it themselves.”
Margarita Howard on navigating the complexities of federal contracts
Federal procurement presents unique challenges that require constant vigilance. HX5 maintains a team of specialised advisors who help the company stay current with policies and regulations governing the defense industry. This expertise proves crucial when dealing with the extensive audit requirements inherent in government work.
“The government’s job is to control every area of what we, as a federal contractor, do for the government, from the Department of Labor evaluating our human resources policies to the financial data we bill the government for services we provide,” Howard explains. . The company’s security department is subject to annual audits to confirm proper training and management of staff authorizations.
He says: “Having worked in this industry, we knew how important impeccable record keeping was. That is why we have always been careful about our finances and all our records of everything we say we do must always be supported by appropriate documentation and recorded accurately, because as a government contractor all our records are open to government inspections and audits at any time. These are just some of the many reasons we maintain high standards.”
This rigorous oversight covers critical operations that must not interrupt budget negotiations. The company has developed advanced processes to discover which programs or projects might be put on hold in the event of a budget impasse, allowing for proactive planning and risk mitigation.
Finding qualified staff is one other significant obstacle. Howard calls particularly demanding positions “purple unicorns” – candidates with a rare combination of technical knowledge, security clearances and specific experience. The company’s primary focus is in the STEM fields of science, technology, engineering and mathematics that are essential to supporting the missions of the Department of Defense and NASA.
“We prefer to hire experienced people who have worked with or supported NASA or the Department of Defense,” says Margarita Howard. “Experience in relevant fields supporting the relevant programs and missions of these agencies is very different from experience working in the commercial world.”
To maintain its competitive advantage, the company invests heavily in skilled development and training programs. This commitment to worker development has helped HX5 retain talent, with many employees remaining with the company for over a decade.
Howard realizes how vital it is to repeatedly maintain the highest ethical standards when bidding for public contracts. “The hardest lesson for us was realizing that some competitors do not follow the same ethical principles as us,” he says. This reality led HX5 to thoroughly vet potential partners and competitors.
Business commitment to honesty extends to its relationships with financial institutions. Even though many banks now operate, HX5 stays loyal to the first bank that gave them a business loan when others wouldn’t take the risk.
Innovation stays central to the HX5 strategy, especially when it involves recent technologies. The company has begun integrating artificial intelligence tools into its operations while focusing on security and compliance. Recognizing the importance of artificial intelligence and its ever-expanding role at each NASA and the Department of Defense is critical to the company’s continued ability to support diverse customer needs in the areas of aeronautics, structural engineering and weapons research.
Margarita Howard’s leadership style places an emphasis on leading by example and maintaining consistent standards throughout the organization. “We hold ourselves to the same high standards of performance, honesty and integrity that we expect of our employees,” he says. “We always want to provide the best services at the highest level.”
This approach has proven particularly vital in breaking down barriers in a field traditionally dominated by men. “It is gratifying to see women making significant strides in the government contracting industry, breaking down barriers and increasingly taking on leadership roles in this industry and in the government agencies we work with,” notes Margarita Howard.
Majority Members of the HX5 management team they are women. Howard says: “Sometimes we have to overcome more challenges that unfortunately still exist in some areas. NASA has done a particularly good job of promoting highly experienced and educated women to a variety of leadership positions, including center director positions.”