Government contractors face many challenges like stringent compliance requirements, intense competition for specialized talent, and the constant uncertainty of federal budgets. While many firms struggle with these obstacles, HX5, under Margarita Howard’s leadership, has overcome these hurdles to build a thriving enterprise. The company supports critical government projects across 90 locations in 34 states, specializing in research and development, engineering, information technology, mission operations, and program management.
Howard’s path to success wasn’t guaranteed. Female founder Margarita Howard started her career in the U.S. Air Force before transitioning to the private sector. She launched HX5 with a clear vision to create a government contracting firm that would compete effectively while maintaining the highest standards of integrity and performance. The company employs over 1,000 people and has secured large government contracts.
Building a Foundation Through Strategic Risk Management
“When we talk to business entrepreneurs or new staff, we remind them: We know that what we do is not easy to do, and it’s very expensive to ensure it’s done right,” Margarita Howard says. “If it were easy, everyone would do it.”
From its inception, HX5 took calculated risks that set it apart from typical small government contractors. The company made substantial early investments in a specialized accounting system designed specifically for government service contracting firms. This decision proved pivotal in gaining credibility with government agencies and business partners.
Howard, an alumnus of the Small Business Administration’s 8(a) program, demonstrates her strategic thinking. While many small businesses rely heavily on set-aside contracts through the program, Howard pursued a different path. “I had that competitive edge or desire,” she notes. “I knew that I didn’t want HX5 to be dependent on sole-source awards.”
Howard continues, “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.”
Margarita Howard on Conquering the Complexities of Federal Contracting
Federal contracting presents unique challenges that require constant vigilance. HX5 maintains a team of specialized advisers 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 audit every single area of what we, as a federal services contractor, do for them, from the labor department evaluating our human resources policies to the financials that we bill to the government for services being provided,” Howard explains. The company’s security department undergoes annual audits to verify proper training and clearance management for personnel.
She says, “From working in the industry, we knew the importance of impeccable record keeping. 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. These are some of the many reasons for the high standards that we hold.”
This rigorous oversight extends to mission-critical operations that can’t pause for budget negotiations. The company has developed sophisticated processes to identify which programs or projects might face furloughs during budget impasses, allowing for proactive planning and risk mitigation.
Finding qualified personnel presents another significant hurdle. Howard refers to particularly challenging positions as “purple unicorns” — candidates with rare combinations of technical expertise, security clearances, and specific experience. The company focuses primarily on the STEM fields of science, technology, engineering, and mathematics, which are essential for supporting Department of Defense and NASA missions.
“We prefer to hire experienced individuals who 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.”
The company invests heavily in professional development and training programs to maintain its competitive edge. This commitment to employee growth has helped HX5 retain talent, with many staff members staying with the company for over a decade.
Howard acknowledges the importance of always maintaining the highest ethical standards while competing in government contracting. “Our hardest lesson has absolutely been the realization that there are certain competitors who don’t play by the same ethical rules that we do,” she says. This reality has led HX5 to carefully vet potential partners and competitors.
The firm’s commitment to integrity extends to its relationship with financial institutions. Despite now having multiple banks pursuing their business, HX5 maintains loyalty to the first bank that provided them a business loan when others wouldn’t take the risk.
Innovation remains central to HX5’s strategy, particularly in emerging technologies. The company has begun integrating artificial intelligence tools into its operations while maintaining its focus on security and compliance. Recognizing the importance of AI and its ever expanding role in both NASA and the Department of Defense, is critical to the company’s ongoing ability to support its customer’s varying needs in the areas of aeronautics, structural engineering, and weapons research.
Margarita Howard’s leadership style emphasizes leading by example and maintaining consistent standards throughout the organization. “We hold ourselves to the same high standards of performance, integrity, and honesty that we expect of our employees,” she says. “We always want to provide the best possible services at the highest levels.”
This approach has proven particularly important in breaking barriers in a traditionally male-dominated field. “It’s rewarding to see that women are making significant strides in the government contracting industry, breaking barriers and more often assuming leadership roles in this industry and within government agencies that we work with,” Margarita Howard notes.
The majority of HX5’s management team members are women. Howard says, ”We sometimes have to overcome more challenges that unfortunately still exist in some areas. NASA has done a particularly good job in promoting highly experienced and educated women to various leadership positions to include center director positions.”
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