Margarita Howard on HX5’s Path From Defense Contracting to NASA Work

 

NASA has expanded its small-business footprint in recent years, directing $4.4 billion in prime contracting dollars to small firms through the third quarter of fiscal 2024, a 20% increase from the previous year. That consistent growth has created more room for technically capable firms that can meet the agency’s stringent requirements.

HX5 fits that profile. The Florida-based contractor built its early business supporting the Department of Defense with research, engineering, and mission-support services. Founder and CEO Margarita Howard describes the shift into NASA work as an outcome of performance rather than long-term planning. After HX5 delivered on several defense projects, a large prime approached the company about teaming on a NASA opportunity.

“That initial team arrangement created the opportunity,” Howard says. “Once we began supporting that first NASA contract, we were able to build expertise that positioned us for additional work.”

More than 1,000 HX5 employees now work across over 20 states on both DoD and NASA programs, a footprint that reflects how performance in one mission-driven agency can serve as a gateway to another.

A Defense Background That Carried Over

Margarita Howard’s start in federal service began with the Air Force. That experience, followed by work on the rollout of the Tricare military health system, gave her early exposure to the full procurement cycle, from bidding through implementation. When she launched HX5, she built the company with that process in mind.

Early contracts focused on research and development, engineering, IT, and operations support for defense missions. These roles often required advanced STEM degrees and security clearances, which created a narrow hiring market but ensured HX5 could field teams familiar with highly regulated environments.

“Experience supporting these agencies is very different from the commercial world,” Howard says. Familiarity with government systems and expectations proved valuable once HX5 began exploring opportunities with NASA. While the agencies differ in culture and mission, both operate within strict regulatory frameworks and evaluate contractors heavily on past performance.

Using Subcontracting as the Entry Point

Rather than moving directly into prime competitions, HX5 spent years pursuing subcontracting roles. Many emerging contractors follow the same strategy because subcontracting creates revenue while helping firms build the record of performance needed for prime eligibility.

“You focus on specialized areas and show where you add value,” Howard says. By the time HX5 joined its first NASA team, it already had a track record supporting complex federal programs and had established relationships with prime contractors.

NASA’s procurement environment often includes more pathways for small firms than some other agencies. In 2024, the agency selected 299 Phase I Small Business Innovation Research proposals and awarded more than $44 million in funding. 

Building Credibility With NASA

HX5 initially entered NASA work through a team arrangement, and the company used that opportunity to accumulate performance history within NASA’s evaluation system. Like DoD, NASA relies heavily on Contractor Performance Assessment Reporting System records when scoring competitive bids. Strong results on early projects often determine whether a small business gains momentum.

“Once we were awarded our first prime contract, staying compliant with the performance and reporting requirements was essential,” Howard says. Continued execution led HX5 to win several sizable prime awards, which provided more control over programs but also heightened operational responsibility.

The Talent Equation

Maintaining a workforce equipped for defense and space programs remains central to HX5’s strategy. The company recruits people with prior DoD or NASA experience whenever possible, seeking candidates who can meet technical expectations without lengthy onboarding. Competition for engineers and cybersecurity personnel has intensified in recent years, which makes that approach more challenging.

Veterans remain a significant part of the company’s hiring pipeline. HX5 received the 2025 HIRE Vets Medallion Award for its recruitment and retention practices, recognition that aligns with the firm’s emphasis on real-world mission experience. Many roles require familiarity with classified handling, government reporting systems, or risk-averse operational cultures, and prior federal experience shortens the learning curve.

Investment in proposal development has also shaped HX5’s growth. Smaller firms often assemble temporary proposal teams that can produce uneven results. HX5 built an in-house capability that supports multiple simultaneous bids and aligns technical, cost, and management inputs early in the process.

A Dual-Agency Footprint

HX5 now supports programs at government sites across the country. Its trajectory reflects a pattern often seen in federal contracting, where firms that excel in technically demanding defense work can extend into NASA projects more easily than into other civilian agencies.

Overlap between the two agencies is far from perfect. NASA programs often involve long development cycles, while defense work can fluctuate with shifting budgets and re-competitions. Even so, both organizations rely on contractors with proven execution, disciplined compliance practices, and the ability to staff specialized technical roles.

Success in that space typically requires patience and early investment. Building the infrastructure to support high-level federal programs often precedes the revenue needed to sustain it.

Howard points to relationships with contracting officers and program managers as a significant factor in that progression. “Strong government relationships can lead to positive performance appraisals and sometimes to new work,” she says. Even so, the company’s growth suggests that performance metrics have been the primary driver.

The transition from defense to NASA remains challenging, and not all firms make the shift. Yet the technical alignment between the agencies provides a viable path for companies with the right capabilities. HX5’s expansion shows how performance built in one federal environment can create opportunities in another when combined with staffing depth, consistent execution, and the willingness to take on incremental roles while building toward prime responsibility.