Federal contracting requires mastery of both technical capabilities and regulatory compliance, a balance that HX5 has maintained since its founding in 2004. The company, which operates across 34 states and 90 government locations, combines specialized expertise with rigorous attention to documentation and regulatory requirements to secure and retain contracts with agencies like NASA and the Department of Defense.
Strategic Infrastructure Investment Drives Contract Success
HX5’s approach to winning and retaining government contracts began with foundational investments in systems designed specifically for federal contracting. “Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms,” says Margarita Howard, sole owner and CEO/president of HX5. “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 early infrastructure investment distinguished HX5 from competitors and positioned the company for long-term success. “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 explains.
The company’s strong performance on initial contracts created opportunities for growth. “Those initial contracts we received provided a strong foundation for us to build from,” notes Howard. This foundation has expanded significantly, with HX5 now employing over 1,000 people and securing substantial prime contracts.
Meticulous Compliance Management
For government contractors, meeting compliance requirements represents a critical success factor. “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,” Howard says.
This commitment to compliance extends throughout the organization. “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,” she emphasizes.
The company maintains comprehensive documentation practices across all operations. “From working in the industry, we knew the importance of impeccable record keeping. 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,” Howard points out.
Building Expertise Through Strategic Recruitment
Technical excellence forms the other half of HX5’s contract retention strategy. The company focuses on recruiting professionals with specialized knowledge in their fields, particularly those with experience in 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 explains.
The technical nature of HX5’s work requires professionals with advanced education and specialized skills. Howard notes, “Our focus is supporting R&D and specialty area programs all with a heavy emphasis on education, skill sets and experience in STEM science, technology, engineering, and math disciplines. So across DOD and NASA, those are the specialties that are our primary workforce.”
This focus on building a team with relevant expertise has contributed to HX5’s ability to win and retain significant contracts. “Large businesses and the government have to meet small-business goals,” Howard says. “So when they find a small company that they know understands the industry, that performs well, takes care of its employees, and know they’re not going to have to hold their hand, so to speak, that makes for a very positive long-term relationship between the two companies and oftentimes leads to new contracts and the expansion of existing work.”
Through strategic infrastructure investment, meticulous compliance management, and targeted recruitment of experienced professionals, HX5 continues to secure and maintain contracts with federal agencies while delivering consistent technical excellence across its operations.
