How HX5 Balances Prime and Subcontracting Roles With Margarita Howard at the Helm
Margarita Howard founded HX5 with a clear vision: build a government contracting firm that could thrive in both prime contractor and subcontractor positions. Twenty years later, her company serves organizations across the federal spectrum, from military branches to NASA, demonstrating mastery of these distinct contracting roles.
“In government contracting, there is a different strategy to take depending on if a company is pursuing subcontractor contracts or pursuing prime contractor contracts,” Howard explains. “When pursuing work as a subcontractor, you tend to focus on specific specialization areas, network regularly with multiple prime contractors, and try to demonstrate the value you bring as a partner to the prime’s team by offering the specialized skills and competitive pricing you can bring.”
The responsibilities shift when taking on prime contracts. Margarita Howard says, “When pursuing work as a prime contractor, the company has to invest in comprehensive proposal development, form teaming arrangements, which can sometimes be very complicated, manage client relationships, and prioritize the various competitive risks that may affect any of a number of potential outcomes. Ultimately, as a subcontractor, you aim to complement prime contractors’ capabilities, but as a prime contractor, you bear all the responsibility for project execution, client satisfaction, and overall contract management.”
Margarita Howard Talks Strategic Resource Allocation
Successful contract pursuit requires careful resource management. “Allocating resources such as staffing and budgets when preparing bids for government contracts is extremely important. First and foremost, we thoroughly review the proposal specifications and requirements, the scope of work that is identified in the proposal, and all deliverables and timelines that are defined,” says Howard.
“You have to ensure that your submitted proposal aligns with all the requirements and demonstrates to the customer how the company can fulfill the requirements effectively.”
Meticulous evaluation practices differentiate successful contractors in the federal space. Margarita Howard points out, “Understanding the requirements of the bid allows you to then evaluate the staffing levels and financial resources that may be required to complete the proposal successfully. We have to consider such factors as the proposal’s complexity, timeline, technology requirements, and any specialized skills that may be needed to complete the proposal.
“From there, we identify the team members to be assigned to the effort based on skillsets, knowledge, availability, etc., and then outline their respective roles and responsibilities in the effort.”
Howard’s journey to government contracting expertise began in the Air Force, where she gained firsthand experience with military operations and structure. Her subsequent work implementing the Tricare program provided crucial insights into managing large-scale government initiatives and bridging military and commercial interests.
This background proved invaluable when launching HX5. “I saw all the areas of securing a government contract,” says Howard. “I then decided to go work for another government contractor for more industry experience, but with the intent of eventually starting my own business, as I just felt that I had seen it all from the ground up.”
The company started small, with Margarita Howard handling everything from business development to basic operations. Today, HX5 employs over 1,000 people across 34 states and offers specialized services in areas such as research, development, testing, evaluation, hardware and software engineering, and mission support operations.
Building HX5 for Long-Term Success
Howard’s approach to the Small Business Administration’s 8(a) Business Development program showcases her strategic thinking. Rather than relying solely on program benefits, she positioned HX5 to compete for contracts throughout its nine-year participation. This forward-thinking strategy ensured the company’s continued success after graduating from the program.
The company maintains strong relationships with its original partners, demonstrating Howard’s commitment to stability and loyalty.
“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, etc. she recalls. “I was turned down continually until one bank took a chance on us, and that bank remains our bank to this day. Banks that turned us down when we were small have come back occasionally 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.”
HX5’s current capabilities span multiple technical domains, allowing the company to serve effectively in either a prime contractor or subcontractor role. HX5 leverages its comprehensive project management expertise when operating as a prime contractor. In subcontractor roles, the company focuses on delivering specialized technical capabilities that complement prime contractors’ strengths.
Under Margarita Howard’s leadership, HX5 continues to demonstrate that success in government contracting requires more than technical expertise — it demands strategic thinking, resource management skills, and the ability to adapt to different contract roles while maintaining consistent quality and reliability.
“One should constantly be researching new opportunities, with a particular focus on contracts aligned with your capabilities, experience, and business goals,” says Howard. “One should regularly monitor government contracting websites, databases, and industry publications to identify relevant opportunities that the company can pursue.”
She continues, “You have to actively highlight how your services can address the government’s needs and add value to their mission in a way that no other company can. You also need to emphasize quality, reliability, and performance in your proposals and project execution. Building a track record of successful contract performance enhances your credibility and your competitiveness.”
The company’s dual expertise in prime and subcontracting has positioned it as a versatile and indispensable partner for critical government initiatives. With its robust technical capabilities and Margarita Howard’s unwavering commitment to excellence, HX5 is successful at meeting government contracting challenges while redefining what it means to thrive in this competitive space. The firm’s trajectory suggests that its best chapters are yet to be written as it continues to innovate and expand.