If you think the field of government contracting is highly competitive, you’re right. HX5 has emerged as a notable success story in the space under the leadership of Margarita Howard, the sole owner and CEO/president. From its humble beginnings to its current status as a significant player in the aerospace and defense sectors, HX5 has regularly secured and executed significant contracts.
Five essential elements have shaped the company’s strategy and operations.
- Talented Proposal Team
One of the key elements of HX5’s success lies in its investment in a highly skilled proposal team. Howard recognizes this team’s critical role in securing contracts and driving the company’s growth.
“We invested heavily early on in a professional proposal team that consisted of very experienced proposal managers and writers, who had years of experience in working with subject matter experts, developing comprehensive and persuasive proposals,” Howard explains. This strategic decision has paid dividends, allowing HX5 to compete effectively for prime contracts from the outset.
The importance of this investment cannot be overstated in an industry where the ability to craft compelling, compliant, and technically sound proposals is often the difference between winning and losing contracts. Howard’s foresight in prioritizing this aspect of the business has positioned HX5 to consistently punch above its weight in contract competitions.
- HX5’s Participation in the 8(a) Program
HX5’s growth trajectory was significantly influenced by its participation in the Small Business Administration’s 8(a) program. This nine-year initiative provides valuable support and opportunities to businesses owned by socially and economically disadvantaged individuals. A first-generation American, Howard qualified for the program, opening doors for HX5 to compete for substantial contracts.
The impact of the 8(a) program on HX5’s early success is clear. “After becoming an 8(a) company, we were awarded four contracts very quickly in one year, and that really helped in getting us off the ground,” Margarita Howard says. This early momentum provided HX5 with the experience and past performance necessary to compete for larger contracts as the company grew.
However, Howard’s approach to the 8(a) program was strategic and forward-thinking. Unlike some companies that become overly reliant on set-aside contracts, HX5 used the program as a springboard for broader competitiveness. “It was a very early decision that we would compete while still being in the 8(a) program,” she notes. “I had that competitive edge or desire. And I knew that I didn’t want HX5 to be dependent on sole-source awards.” This strategy ensured that HX5 was well positioned to thrive beyond the program’s duration.
- Priority Spending: Investing in Critical Infrastructure
Howard’s approach to financial management and resource allocation has been a vital factor in HX5’s success. Rather than focusing on superficial aspects of the business, she prioritized investments in critical infrastructure that would support the company’s long-term growth and competitiveness.
A prime example of this strategy was the early adoption of a government-approved accounting system. Howard says, “Right from the beginning, we invested heavily up front in purchasing and implementing a specialized accounting system developed for government service contracting firms; 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 is what we used to bill the government.” This decision positioned HX5 as a credible partner for both the government and larger contractors.
“Those were investments the company made that were very key in the beginning. And certainly, the Small Business Administration makes those recommendations, but they don’t force you [to take them]. It was a risk that we took, and it highly paid off,” she notes.
- Margarita Howard on Strategic Hiring and Leadership Development
The fourth element of HX5’s success formula is its approach to hiring and developing leadership talent. Margarita Howard has reliably prioritized building a robust and experienced team capable of navigating the complexities of government contracting.
“We prefer to hire experienced individuals, so we look for people that have worked with, or supported, NASA or the Department of Defense, as this experience is always very helpful. 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 says.
“So in all of the respective fields we perform in, in many cases, we look for people that have experience working in NASA and DOD environments, because it’s not easy to get the type of experience we look for from the commercial world, and the more experience they have, the more helpful they’re going to be to us in what we do.”
This focus on experience and industry-specific knowledge has allowed HX5 to build a leadership team that understands the nuances of government contracting.
“I’m very proud to say that I believe the approach we took from the very beginning to recruiting and hiring paid off,” notes Margarita Howard. “Once we were ready to turn it over to our management staff to do the hiring, they looked for the same kind of people.”
- Aiming for Big Contracts
The fifth element of HX5’s success strategy is its willingness to compete for large, complex contracts. Rather than limiting itself to smaller opportunities, HX5 has persistently aimed high, competing for and winning substantial prime contracts.
“We have won some, for our size company, very large prime contracts. And we have large businesses as our subcontractors. And then we’re a very good subcontractor as well,” says Howard.
The company’s ability to compete for these large contracts reinforces the effectiveness of the other elements of its success formula. HX5’s remarkable journey from a small startup to a significant government contractor is the result of a carefully crafted and consistently executed strategy.
By focusing on these five core elements, Margarita Howard has guided the company to a position of strength in the competitive world of government contracting. As the company continues to grow and evolve, these foundational elements remain central to its operations, ensuring that it is well positioned to capitalize on new opportunities and navigate the industry’s challenges.