Competing for government work can overwhelm a new company Margarita Howard, who founded HX5 in 2004, has a straightforward view of why. Without a real grasp of what federal contracting demands, she said, “then it’s a daunting task.”

Her formula is sequential. A contractor needs to learn the industry, assemble a capable team, set up proper infrastructure, and then meet every obligation that comes with government contracts. Howard applied that thinking from the start at HX5.

Putting Capital Where It Counts

Her clearest example is an early accounting purchase. Rather than spend startup funds on decor or prominent office space, Howard bought a high-end accounting system created for government contractors and approved by the government. Most small businesses delay a purchase like that for years.

The same logic shaped other spending. HX5 hired qualified people instead of renting premium offices, bought compliance tools instead of promotional materials, and held cash in reserve rather than growing its payroll ahead of demand. Each choice favored the ability to win and perform work over the appearance of size.

Howard said HX5 knew which investments were required to compete without relying on sole-source awards, and to become a partner that both the government and large businesses would want. In her view, both of those goals were met.

Two Roles, One Foundation

HX5 has grown to more than 1,000 employees in more than 20 states. It has won large prime contracts, uses large businesses as its subcontractors, and has also been recognized as Prime Subcontractor of the Year for its own subcontracting work.

That dual role depends on the groundwork laid early. A company acting as prime must manage subcontractors and billing at scale, while a strong subcontractor must satisfy the compliance expectations of its primes. The accounting system HX5 adopted at launch supports both jobs.

For Margarita Howard, the story underlines a basic point: in federal contracting, readiness is what gets a company invited to compete, and performance is what keeps it there. Refer to this article for related information.

Learn more about Howard on https://www.itsecurityguru.org/2025/11/12/what-will-defense-contracting-look-like-in-10-years/