Succeeding in the labyrinthian world of government contracting requires more than just technical expertise and industry knowledge. For Margarita Howard, sole owner and CEO/president of HX5, success has come through a combination of strategic foresight, infrastructure investment, and an unwavering commitment to excellence. This has established her company as a respected provider of professional mission support services to the Department of Defense and NASA.
From its humble beginnings in 2004 to its current status as a contractor with over 1,000 employees across 34 states and 90 government locations, HX5 has carved out a distinctive path in government contracting. The growth trajectory of the Fort Walton Beach, Florida-based company reflects Howard’s unique approach to building a sustainable business in a highly competitive industry.
Margarita Howard’s journey to entrepreneurship was shaped by her military service and subsequent experience with the Tricare program, the Department of Defense’s comprehensive health care initiative. Howard says, “I was part of the Tricare implementation team when it was first introduced. Before that, the military’s care had never been managed in such a fashion.”
She explains, “Nobody likes change. So we had a lot of town hall meetings. I was an area field manager at the time, responsible for my office in Florida. I then quickly advanced to a regional director where I had seven states in the Southeast that I was responsible for.”
This background provided her with invaluable insights into the operational and commercial aspects of government contracting, laying the groundwork for her future success.
Margarita Howard on Overcoming Industry Challenges
The government contracting sector in 2024 presents unique obstacles and opportunities, shaped by record federal spending levels and an increased focus on emerging technologies like cybersecurity and artificial intelligence. While the surge in defense spending, health care initiatives, and infrastructure projects has created significant contractor opportunities, it also brings intensified scrutiny and oversight.
Howard understands that success in this environment requires rigorous attention to detail. “Businesses must invest in educating themselves about these regulations and ensure strict adherence to them,” she says. “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 perform on government contracts.”
Throughout her career in government contracting, Margarita Howard has witnessed significant shifts in industry dynamics, particularly in opportunities for women. The increasing presence of women represents a meaningful evolution in what was historically a male-dominated field. Yet she remains clear-eyed about both progress and persistent challenges.
“It’s rewarding to see that women are making significant strides in the government contracting industry, over the years, breaking barriers and more often assuming leadership roles in this industry and within government agencies that we work with,” she says. However, she acknowledges that: “It’s still somewhat challenging for women in this industry, and while progress has been made, some biases unfortunately remain to be overcome.”
At HX5, Howard has put these observations into practice, creating the inclusive environment she envisions for the broader industry. She has built a diverse leadership team that reflects her commitment to advancing women in the industry. Many of HX5’s senior management positions are held by women, and many of them have been with the company for extended periods. “At the end of the day, it’s our team of great employees and management that makes us successful,” Margarita Howard acknowledges.
Her careful approach to building this strong foundation has paid dividends. “We were very selective of people that we chose for our management team. And really, I could not be more proud of them,” she says. “Many of them have been with us for 10 years or so, and we just have a highly dedicated, experienced management team. We could not do what we do without them.”
HX5’s Strategic Growth Through Competitive Excellence
What distinguishes HX5 from many of its peers is Howard’s decision to focus on competitive bidding rather than relying solely on sole-source awards. Howard says, “We had been in the industry, we knew small businesses in our area, and that’s what many of them did (relied on sole-source awards). 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.”
She’s talking about the 8(a) program, a federal initiative designed to provide contracting opportunities and training for small-business owners facing social and economic disadvantages. It proved instrumental in catalyzing HX5’s growth and development. “After becoming an 8(a) company, we were awarded very quickly four contracts in one year and that really helped in getting us off the ground,” she recalls.
Margarita Howard’s emphasis on building robust infrastructure from the outset has been particularly crucial. “Large businesses and the government have to meet small-business goals,” she explains. “So when they find a small company that they know understands the industry [and] they’re not going to have to hold their hand, I’m proud to say they were very impressed with us.”
Despite the complexities inherent in government contracting, Howard maintains an unwavering commitment to her company’s mission. “Working side by side with civil servants and the military, supporting their respective missions, is a privilege. I love this business and the work that we do. I’m extremely proud of it,” she says.
As HX5 continues to grow and adapt in the government contracting space, Margarita Howard’s leadership style and vision serve as a blueprint for success in this demanding industry. HX5 demonstrates how women-owned businesses can thrive and lead in the government contracting sector, setting new standards for excellence and innovation.
