Competitive advantages in government contracting rarely come from a single win. They accumulate, and Margarita Howard built HX5 around that principle from its founding in 2004. What started as one early purchase, a government-approved accounting system, eventually became a form of protection that compounded year after year.

Margarita Howard chose the system specifically because it was already familiar to federal auditors and to the large prime contractors HX5 wanted to partner with. That familiarity mattered more than the cost. “It was more important for us that we invest in things like a high-end accounting system that was built and developed specifically for companies who work with the government, and was government reviewed and approved,” she said.

Performance History As Protection

From there, the advantages built on themselves. Each contract HX5 executed generated performance history that agencies could review. Each successful audit added to a growing track record. Each teaming arrangement with a major prime expanded the company’s network and its standing within the industry. None of this happened quickly, but each piece made the next partnership easier to secure.

Howard has said many small businesses hesitate to make this kind of investment before they have contracts to justify it, which is precisely why HX5’s early move stood out. Waiting, she noted, carries its own cost. Without the right infrastructure, small contractors limit themselves to simpler work, smaller dollar values, and fewer partnership opportunities, often missing the window when prime contractors are actively seeking small business partners.

HX5 avoided that trap. The company now operates as both a prime contractor and a subcontractor, depending on the opportunity, and has been recognized as Prime Subcontractor of the Year for its performance. What began as accounting software in a company’s first year became, over two decades, a moat that newer contractors still struggle to replicate. Refer to this article for related information.

Find more information about HX5 on https://www.margaritahoward.com/