Most government contractors operate within defined roles, either pursuing prime contracts or serving as subcontractors to larger firms. HX5 has developed operational capabilities that enable success across both contracting structures, creating revenue diversification and market flexibility that strengthens its competitive position.
Margarita Howard, sole owner and CEO of HX5, describes the company’s approach to contract roles as deliberately flexible. “Really, it’s a mix. We have won some, for our size company, very large prime contracts. And we have large businesses as our subcontractors. And then we’re a very good subcontractor as well,” Howard explains.
This dual capability reflects systematic infrastructure development and relationship management that began during HX5’s participation in the Small Business Administration’s 8(a) Business Development program. Rather than relying solely on program benefits, Howard positioned the company to compete across multiple contract categories.
Prime Contract Capabilities Through Infrastructure Investment
HX5’s success as a prime contractor stems from early investments in specialized systems and processes that demonstrated government contracting competence from the company’s founding. Howard made infrastructure decisions that established credibility with federal agencies and positioned the company for direct contract awards.
“Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms,” Howard notes. “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.”
These foundational investments enabled HX5 to pursue contracts typically reserved for more established firms. The company has secured contracts across multiple federal agencies, including the Army, Navy, Air Force, NASA, and General Services Administration, supporting research, development, testing, evaluation, hardware and software engineering, and mission support operations.
The recognition extends beyond contract awards. “We have also been awarded a Prime-Subcontractor of the Year award in recognition of our outstanding performance as a subcontractor,” Howard adds, demonstrating excellence across both contracting roles.
Strategic Subcontracting Relationships
HX5’s subcontracting success reflects deliberate relationship building with larger prime contractors who require specialized capabilities to meet government requirements. These partnerships provide access to larger projects while enabling focused delivery of technical expertise.
“Large businesses and the government have to meet small-business goals,” Howard explains. “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.”
This approach has created sustainable partnerships where HX5 contributes specialized technical capabilities while prime contractors manage overall project coordination. The arrangement benefits all parties by combining HX5’s agility and expertise with larger firms’ resources and market reach.
Operational Flexibility Through Diversified Capabilities
The dual-role strategy requires operational systems that support both prime contractor responsibilities and subcontractor collaboration requirements. HX5 has developed processes that enable seamless transitions between these roles based on project requirements and market opportunities.
The company’s workforce of over 1,000 employees across 34 states and 90 government locations provides the scale necessary for prime contract execution while maintaining the specialized expertise valued in subcontracting relationships. This geographic distribution enables response to opportunities across multiple markets and agencies.
Howard’s emphasis on building internal capabilities rather than depending on external partnerships has created competitive advantages. “We invested heavily early on in a professional proposal team that consisted of very experienced proposal managers and writers, who had years of experience in working with subject matter experts, developing comprehensive and persuasive proposals,” she explains.
Market Position Through Performance Excellence
HX5’s success across both contracting roles demonstrates how systematic capability development can create market flexibility. The company’s ability to serve effectively as either prime contractor or subcontractor provides revenue diversification while building relationships across the government contracting ecosystem.
Howard’s approach shows that operational excellence, rather than contract structure alone, determines success in government contracting. The company’s dual capabilities position it to capitalize on opportunities regardless of procurement approach, creating sustainable competitive advantages in federal markets.
