HX5 Growth Story Traces Back to Margarita Howard’s Founding Decisions
In 2004, Margarita Howard started HX5 with a single employee and a clear sense of what the company needed to succeed in the federal contracting marketplace. That clarity drove an early investment in a specialized accounting system one designed, built, and government-approved specifically for companies working on federal contracts.
The purchase was unusual for a firm at that stage. Most small contractors begin with general business software, moving to more specialized systems only after winning contracts that require them. Howard reversed that sequence, acquiring the infrastructure before it was contractually mandated.
Why the Sequence Mattered
The order of operations was not incidental. By having compliant systems in place before pursuing work, Margarita Howard positioned HX5 as a credible subcontracting partner for large defense firms from the beginning. Those firms needed small business partners who could handle billing properly, maintain accurate cost records, and pass audits without assistance.
“A lot of small businesses usually wait many years before making such an investment, but we found tremendous benefit from having it in place early on,” Howard said. “That was one aspect that made HX5 very attractive to large businesses who were looking to partner with small businesses to meet their small business goals that are often required in large government contracts.”
The accounting system became proof of operational seriousness. It signaled that HX5 understood the demands of government contracting and had built the infrastructure to meet them before any contract required it to.
From Infrastructure to Influence
The company Howard built through disciplined investment now holds a notable position in the contracting market. HX5 operates across more than 70 government locations in over 20 states, employing more than 1,000 people. It has won large prime contracts and now brings major defense companies on as subcontractors for certain awards.
“We have won some very large prime contracts,” Howard said. “And we have large businesses as our subcontractors. And then we’re a very good subcontractor as well.” For Margarita Howard and HX5, the path to that position began with a choice that most small businesses consider premature: investing in the infrastructure that government contracting demands before winning the work that would pay for it. Refer to this article to learn more.
Find more information about Howard on https://www.youngupstarts.com/2025/01/10/how-hx5-and-margarita-howard-stay-ahead-in-government-contracting-as-a-women-owned-firm//