Margarita Howard bootstrapped her government contracting company HX5 through methodical planning and strategic investments, transforming it into a thriving enterprise with over 1,000 employees across 34 states and 90 government locations. Her leadership philosophy, shaped through military service and extensive industry experience, is underpinned by grit.
"If it were easy, everyone would do it," Howard, the sole owner and CEO/president of the Florida-based company, says about the complex world of government contracting. The company supports NASA and Department of Defense missions, where HX5 has secured prime contracts.
The foundation for HX5's success was laid before the company won its first contract. "Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms," Howard explains. "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."
From day one, Margarita Howard insisted that HX5 would not be the type of small business that relies on the low-hanging fruit of sole-source contracts.
Building Long-Term Success Through Competition and Loyalty
This competitive mindset drove Howard to diversify HX5's contract portfolio beyond initial sole-source award opportunities through the Small Business Administration's 8(a) program. "I had that competitive edge or desire," Howard notes. "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."Armed with the right infrastructure, Margarita Howard prioritized building relationships with government agencies. "Large businesses and the government have to meet small-business goals," she explains. "When they find a small company that they know understands the industry — that they're not going to have to hold their hand — I'm proud to say they were very impressed with us. And I don't think we've ever let them down."
The company maintains equally strong relationships with financial partners, demonstrating remarkable loyalty to those who supported its early growth. Margarita Howard says, "We went from the early beginning, where it seemed a big part of my job was going and knocking on doors and meeting with the bankers and trying to get a line of credit, a small-business loan — and being turned down the majority of the time, to one bank that is still our bank today because they gave us that first chance."
That loyalty extends throughout the company’s business relationships. "When you find a good partner like our bank, yes, we have remained very loyal to our key people that started with us," she says. "Our accounting firm, our banking firm, some of our insurers and things like that. In many cases, we still have the same people we started with. And I fully believe in trust and loyalty."
Margarita Howard: Setting Standards in Compliance and Diverse Leadership
Government contracting demands rigorous attention to detail and compliance. "For example, government contracting is laden with rules, regulations, and compliance requirements that can be daunting to new business owners. Businesses must invest in educating themselves about these regulations and ensure strict adherence to them,” says Howard. “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.”
The company's proactive stance extends to its management structure. Howard has built an inclusive leadership team, with women holding the majority of senior positions, including two of three vice president roles. This represents significant progress in an industry historically dominated by men.
Howard's experience breaking barriers informs her perspective. She says, "I've experienced it firsthand, and it does create an additional challenge to prove yourself as an effective and successful leader."
She continues, "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. It's still somewhat challenging for women in this industry, and while progress has been made, some biases unfortunately still remain to be overcome.”
Success in government contracting requires substantial upfront investment and expertise. "To excel in government contracting, it is imperative to understand the unique characteristics and intricacies of this marketplace," Howard explains. "Government agencies at federal, state, and local levels have diverse needs and requirements, which can vary significantly across industries and regions."
Howard credits her team for HX5's continued success. "At the end of the day, it's our great employees and our management and leadership team who make us successful," she says. The company's growth stems from careful selection of personnel at every level. "We were very selective of the people that we chose for our management team. And really, I could not be more proud of the team that we have. Many of them have been with us for 10 years or more, and are highly dedicated and experienced,” says Margarita Howard.
HX5’s Early AI Adoption Drives Operational Excellence
When artificial intelligence emerged as a game-changing technology, HX5 didn't wait to see how others would implement it. Instead, the company launched a comprehensive AI program to transform internal processes and client support capabilities.
"We are very much involved in AI already and try to stay ahead of those changing technologies," Margarita Howard notes. The company's AI strategy spans two critical areas: enhancing its operational efficiency and supporting defense and space agency missions. "We're actually developing our own internal AI tools that we're using and seeing benefits from," adds Howard.
This early adoption of AI technology exemplifies the company’s methodical approach to innovation. Rather than viewing AI as merely another tech trend, the company recognized its fundamental importance. It moved decisively to build expertise through internal talent development and strategic consulting partnerships.
