Inside Margarita Howard’s Playbook for HX5’s Long-Term Success

When building a government contracting business, the investments made during its formative stages often determine its long-term viability. For Margarita Howard, sole owner and CEO/president of HX5, strategic infrastructure investments made at the company's inception have proven instrumental in establishing a foundation for sustainable growth and market credibility. Howard's approach to infrastructure investment has been deliberate and forward-thinking since founding HX5 in 2004. Rather than following the conventional path of many small contractors who prioritize immediate revenue generation or superficial business trappings, she focused on establishing robust operational systems that would support scalable growth. "Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms," Howard recalls. "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 differentiated HX5 from competitors and established credibility with potential government clients and business partners. The specialized accounting infrastructure reveals a sophisticated understanding of federal contracting requirements and a commitment to operational excellence before winning major 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 notes. "Those were investments a company made that were very key in the beginning. And certainly the SBA, the Small Business Administration, makes those recommendations, but they don't force you [to implement them]. And it was a risk that we took and it highly paid off." Building Financial Infrastructure Through Relationships Margarita Howard's infrastructure development extended beyond operational systems to include financial partnerships that would support sustainable growth. This dimension of infrastructure building required persistence and relationship development with financial institutions. "We went from the first year where a big part of my job was going and knocking on doors, meeting with the bankers, and trying to get a line of credit, a business loan. I was turned down continually until one bank took a chance on us, and that bank remains our bank to this day," she remembers. "Banks that turned us down when we were small have occasionally come back over the years to try to get our business, but we've stayed with the same bank that took a chance on us when we were very small and just getting started." This take on financial infrastructure reflects Howard's broader philosophy of building long-term business relationships based on loyalty and mutual benefit. She says, "We have remained very loyal to our key people that started with us. Our accounting firm, our banking firm, some of our insurers for our commercial equipment and things like that. We still have the same people we started with. And I fully believe in trust and loyalty. And when I talk about success, those are some of the keys." Compliance Infrastructure as Competitive Advantage Government contracting demands rigorous attention to regulatory compliance, and Howard recognized early that building a robust compliance infrastructure would create a substantial competitive advantage. Rather than viewing compliance as merely a necessary burden, she positioned it as a core capability that would distinguish HX5 in the marketplace. "Government contracting is laden with rules, regulations, and compliance requirements that can be daunting to new business owners," Howard points out. "Businesses must invest in educating themselves about these regulations and ensure strict adherence to them. It's important that a company's records are impeccable when working with the government due to the compliance reporting and audits that companies have to agree to in order to perform on government contracts." This compliance infrastructure extends beyond accounting systems to encompass comprehensive record-keeping practices and documentation standards. "From working in the industry, we knew the importance of impeccable record keeping," Howard states. "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." Human Capital Infrastructure While systems and processes form the operational backbone of a government contractor, Howard recognized that human capital infrastructure ultimately determines performance quality and client satisfaction. Her approach to talent infrastructure has emphasized specialized expertise and cultural alignment. "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," Howard explains. "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." This selective talent acquisition has translated into remarkable retention rates, with professionals choosing to build long-term careers at HX5. "Many of them have been with us 10 years or so, and we just have a highly dedicated, experienced management team," Howard notes. The company has developed a substantial workforce of over 1,000 employees across 34 states and 90 government locations, creating a talent infrastructure capable of supporting diverse client needs across the federal sector. Howard's leadership philosophy has established a cultural infrastructure that permeates the organization. This emphasizes alignment between personal example and organizational values. "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," she explains. "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." A Foundation for Sustained Growth The infrastructure investments made under Margarita Howard's leadership have created a solid foundation for HX5's long-term success. The company has expanded from a startup to a substantial federal contractor supporting major agencies including the Army, Navy, Air Force, and NASA. These infrastructure investments have enabled the company to remain competitive during economic fluctuations and government spending cycles, maintaining stability while many competitors struggled with market volatility. Howard's foresight regarding infrastructure investment demonstrates that success in government contracting requires more than technical capabilities or initial contract wins. It demands comprehensive infrastructure development across financial, operational, compliance, human capital, and leadership dimensions. The results validate this approach. HX5 has provided specialized services and support in research, development, testing, evaluation, hardware and software engineering, and mission support operations. This technical breadth is built upon the infrastructure foundation Howard established, enabling the company to deliver consistent value to government clients while maintaining operational excellence and regulatory compliance. Through prioritizing infrastructure investments from inception, Margarita Howard has built more than a successful government contracting company. She has created an organization with the structural integrity and operational capability to sustain excellence over time, demonstrating that in federal contracting, the most important assets are often the foundational systems and processes that enable consistent performance delivery across complex missions.