Government contracting is an industry where contract transitions typically trigger significant workforce changes. With operations spanning 34 states and 90 government sites, HX5 demonstrates excellence in government contracting. The company’s workforce of over 1,000 professionals provides mission-critical support to NASA and Department of Defense initiatives. However, what sets HX5 apart is the remarkable retention of its talent. CEO/president and sole owner Margarita Howard says, “Many of them have been with us 10 years or so, and we just have a highly dedicated and experienced workforce.”
Howard, an Air Force veteran, knows that keeping talented employees starts with choosing the right leaders. “For example, we were very selective of people that we chose for our management team. And really, I could not be more proud of the team that we have,” she explains. Her careful approach to building the leadership team stems from a more profound insight: While technical skills matter in government contracting, an authentic commitment to supporting missions and serving the public proves equally crucial.
HX5’s way of keeping talent begins with a clear insight: Small and mid-sized government contractors offer a distinct working environment that isn’t right for everyone. Rather than competing with large corporations for talent, the company targets professionals who value making a direct impact. The company has successfully built enduring teams and strong professional bonds by focusing on candidates who appreciate the agility and influence possible at a specialized firm.
“We were very attractive to large businesses to use us to meet their small business goals,” says Margarita Howard.
The Key to HX5’s Retention Success
Instead of superficial spending, the company initially made strategic investments in professional systems. For Margarita Howard’s expertise, this meant prioritizing critical infrastructure like specialized accounting software. “Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms,” she says.
“We knew the government was very familiar with this system, and it 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 is what we used to bill the government.”
Howard continues, “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.” By establishing such professional systems early on, HX5 created an environment where employees could find both stability and opportunities for growth.
Even as the company has grown, its commitment to careful team-building hasn’t wavered. “I’m very proud to say that that’s an area that we always stayed very involved in,” says Howard. While growth eventually required delegating some hiring responsibilities to program managers for contract-specific positions, company leadership maintains direct involvement in key management hires. “With our corporate staff, especially for management positions, to this day, company leadership remains involved in the hiring process,” she explains.
The strategy has proven effective. Howard says, “Once we were ready to turn it over to our management staff to do the hiring, they looked for the same kind of people.” This methodical approach to talent selection has created a sustainable cycle of excellence throughout the organization.
How Margarita Howard Transforms Experience Into Government Partnerships
HX5’s ability to keep talented employees directly influences its track record of winning and retaining government contracts. Teams with years of experience navigate the intricate demands of government work, where precision and compliance can make or break success.
Margarita Howard understands these challenges firsthand. “Government contracting is laden with rules, regulations, and compliance requirements that can be daunting to new business owners,” she notes. “Businesses must invest in educating themselves about these regulations and ensure strict adherence to them.”
This expertise becomes particularly crucial given the government’s strict oversight requirements. A company’s records must be impeccable when working with the government due to the compliance reporting and audits that companies must agree to perform on government contracts.
Howard says, “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. These are some of the many reasons for the high standards that we hold.”
Understanding that government agencies favor contractors with solid performance histories, HX5 built its foundation through strategic subcontracting. These early projects provided crucial experience and references while the company simultaneously invested in industry-specific certifications and systems.
Relationship building is an integral part of this process. “We are always looking to build our relationships with the government and other prime contractors within the government contracting community,” Howard says. “We attend industry events, networking functions, and government-sponsored outreach programs as they allow us to establish new connections and stay informed about upcoming opportunities within the sectors we operate and support. The information that we learn through these activities often is important to the proposal writing process.”
Success in government contracting hinges on the ability to craft winning proposals. These documents must showcase a company’s expertise, methodology, and value while meeting strict compliance requirements — a complex task demanding technical knowledge and sophisticated writing skills. Many new companies struggle with this crucial capability.
Recognizing this challenge, HX5 made an early decision to invest in seasoned proposal professionals. The company built a team of experienced managers and writers who brought years of expertise in collaborating with subject matter experts to create compelling, thorough proposals. This upfront investment gave it a competitive edge from day one.
The impact of HX5’s employee retention strategy extends far beyond stable staffing — it creates a deep reservoir of expertise and credibility that fuels the company’s growth. Led by Margarita Howard, HX5 has built teams with the specialized knowledge to excel in government contracting, demonstrating a commitment to sustainable success. Investing in long-term relationships with its workforce has strengthened its market position and earned recognition as a trusted partner for federal agencies’ mission-critical work.
