Dealing with budget uncertainties is par for the course for companies that provide mission-critical services to government agencies like NASA and the Department of Defense. Margarita Howard, owner and CEO/president of HX5, a professional services firm supporting these agencies, understands this reality all too well. Howard leads HX5 in navigating these uncertainties while ensuring seamless support for its customers’ crucial operations.
“Changing mission priorities based on real-time world events is one of the areas that we always have to be ready for,” says Howard. From geopolitical shifts to evolving national security priorities, HX5’s work is intrinsically tied to the dynamic nature of global affairs. “If it’s in the news, we’re probably dealing with it,” she says.
This fluidity extends to funding priorities as well. As the fiscal year-end approaches on Sept. 30, the HX5 team braces for potential budget cuts or last-minute demands. “Every year, we run into, ‘Is the budget going to be approved? Are they going to have budget cuts?’ It is something that we always prepare for the month of September — what changes may come about, or they’re going to let us know at the last minute of something that they need, or that we may see some cuts in the following year that we need to prepare for. It’s a lot of very much typical government bureaucracy,” Howard says.
She recognizes that HX5 must remain agile and prepared to adapt swiftly to these fluctuations.
HX5’s Margarita Howard: Crafting a Resilient Strategy
In the face of such uncertainties, HX5 has developed a multipronged approach. For mission-critical areas, the company is willing to “work at risk for a little while,” as Howard puts it. This means temporarily self-funding operations until budgets are approved and reimbursements are issued. “We know that with the work that we do, we will get reimbursed,” she says.
However, this strategy is only feasible due to HX5’s extensive experience and deep understanding of the government contracting landscape. The firm knows which programs to contact and which individuals to prep. This institutional knowledge allows HX5 to proactively identify areas more susceptible to furloughs and take appropriate measures, ensuring business continuity.
Beyond budget uncertainties, the company must also contend with an increasingly intricate web of regulations governing its operations. Margarita Howard says, “We know that what we do is not easy, and it’s very expensive to ensure that it’s done right.”
The company relies on experienced personnel who are well-versed in the nuances of government contracting. “We have to hire experienced individuals,” Howard says. The company seeks professionals with prior exposure to the Department of Defense, NASA, and other relevant agencies. This expertise spans various domains, including contracting, accounting, finance, and human resources — all areas where leading a workforce in the government sector demands a unique skill set. “Leading a workforce in this industry is very different than leading it in the commercial world,” Margarita Howard says.
The company also maintains a dedicated team of advisers specializing in government-industry matters. “We keep a team of advisers to help us with the more complex matters, whether it’s a legal team, or an accounting team or auditors,” Howard says.
Investing in Education and Certifications
Recognizing the value of formal training, HX5 emphasizes advanced education and professional certifications within its workforce. As Howard says, “Advanced education in the work that we do is just extremely important.” With a primary focus on the STEM fields of science, technology, engineering, and mathematics across NASA and Department of Defense contracts, HX5’s personnel must possess relevant academic credentials.
Industry-specific certifications, such as those in government contracting, financial systems, and procurement, are equally crucial. HX5 aims to recruit and retain people with these specialized governmental certifications.
While strategic planning and regulatory compliance are vital, the company’s success is also rooted in its mission-driven culture. The company’s guiding principle is to lead by example. Margarita Howard says, “We hold ourselves to the same high standards of performance, integrity, and honesty that we would expect of our employees. We try to remind them always that our customers have important missions, and we are trusting in them to help us support our customers. We always want to provide the best possible services at the highest levels.”
This ethos resonates profoundly with the company’s workforce, many of whom have been with the company for over a decade. “I’m very proud of the team that we have,” Howard says. “June [2024] is our 20th anniversary in business, and we have people who have been with us for 15 years.”
Government Contracting Trends for 2024
As HX5 navigates budgetary and regulatory complexities, the company also monitors emerging trends that could shape the future of government contracting.
With the rising prevalence of cyber threats and the rapid advancement of artificial intelligence technologies, government agencies are expected to emphasize cybersecurity measures and integrate AI solutions into their operations. Contractors with proven expertise in these domains will likely be in high demand.
Aligning with broader societal priorities, government agencies are increasingly factoring sustainability and social responsibility into their procurement decisions. Contractors demonstrating environmentally friendly practices, social impact initiatives, and adherence to ethical standards may gain a competitive edge.
Another factor is the impact of the COVID-19 pandemic in the government sector. “The shift toward remote work and virtual collaboration, accelerated by the pandemic, is heavily influencing how government contracts are being performed, and women-owned businesses that develop the skill sets and infrastructure to effectively deliver services remotely may have a competitive advantage in the very near future,” says Margarita Howard.
As the government’s focus broadens to encompass emerging technologies and societal challenges, new contracting opportunities are expected to arise in renewable energy, climate change mitigation, and public health preparedness. Companies like HX5 can position themselves as invaluable partners to government agencies by staying attuned to these trends and proactively adapting their strategies, ensuring seamless support for critical missions.
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