Large defense contractors have a recurring hiring headache. Many big government contracts require them to bring in small business subcontractors, but plenty of small firms lack the back-office capacity to bill accurately, separate costs, or withstand an audit. Partnering with the wrong one can mean disputes and extra oversight.
HX5 offered primes a way around that problem. Shortly after Margarita Howard founded the company in 2004, she invested in an accounting system designed for government contractors. The platform carried government review and approval, and auditors and prime contractors recognized it.
Matching the Big Firms
What impressed large businesses was the match between their systems and the one HX5 ran. “This is what we used to bill the government,” Margarita Howard said, explaining that primes liked seeing a very small company already running the same type of system they relied on.
For a prime contractor, that meant less hand-holding. HX5 did not need to be coached through compliance, and billing errors were less likely. The small firm could slot into a team and handle its administrative duties from day one.
That reliability mattered because federal rules do not compel every new contractor to buy such a system. Accounting adequacy requirements apply only to certain contract types, so many startups put off the expense. HX5 stood apart from peers who were still relying on simpler tools.
A Record That Kept Growing
Early partnerships led to more. Completed contracts created a performance record, passed audits reinforced credibility, and each teaming deal with a major prime widened the network of firms willing to work with HX5.
The company still maintains subcontracting relationships with major defense primes and was named Prime Subcontractor of the Year. It has also stepped into the prime role itself, winning large contracts and hiring large businesses as subcontractors. Howard described HX5 as a very good subcontractor in addition to a successful prime.
HX5 now has more than 1,000 employees. Margarita Howard’s decision to equip a one-person company with enterprise-grade accounting turned out to be one of its most persuasive selling points. Refer to this article to learn more.
Find more information about Howard on https://about.me/margaritahoward