In the demanding world of government contracting, where compliance requirements are exhaustive and mission priorities shift with global events, HX5 has established itself as a reliable partner for federal agencies. With operations spanning 34 states and 90 government locations, the company supports critical initiatives for the Department of Defense and NASA while managing the complex regulatory landscape that defines the industry.
Addressing Stringent Compliance Requirements
Government contractors face rigorous oversight in every aspect of their operations. “The government’s job is to audit every single area of what we, as a federal services contractor, do for them, from the labor department evaluating our human resources policies to the financials that we bill to the government for services being provided,” explains Margarita Howard, sole owner and CEO/president of HX5.
This level of scrutiny requires meticulous attention to detail and robust systems. “From working in the industry, we knew the importance of impeccable record keeping. Therefore, we’ve always ensured our finances, and all our records of everything we say we do must always be supported with the appropriate documentation and recorded accurately because, as a government contractor, all of our records are open to the government’s inspection and audits at any time. These are some of the many reasons for the high standards that we hold,” Howard adds.
The company’s early investments in specialized infrastructure have proven crucial to navigating these requirements. “Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms, 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,” Howard explains.
Navigating Changing Mission Priorities
Beyond compliance, government contractors must remain adaptable to evolving operational needs. “We always have to be ready for changing mission priorities based on real-time world events,” says Howard. Budget uncertainties add another layer of complexity, especially as fiscal years draw to a close.
“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 typical government bureaucracy. If it’s in the news, we’re probably dealing with it,” she explains.
This requires strategic planning and maintaining contingency measures. “So, being prepared for it, knowing our financials are always in order is of critical importance. As a Government contractor, our financials can be audited at any time, at a moment’s notice,” Howard notes.
Building Specialized Expertise
The company has developed a network of advisors to help navigate these regulatory challenges. “We have built and keep a team of advisers that specialize in the government industry, in the government field. These external experts help us with the more challenging and complex regulatory matters, for example, whether it’s a legal issue, an accounting issue, or an audit issue,” Howard points out.
This emphasis on specialized knowledge extends to HX5’s workforce. “We prefer to hire experienced individuals, so we look for people that have worked with or supported NASA or the Department of Defense as this experience is always very helpful,” says Howard. “Experience in their respective fields while supporting these agencies’ respective programs and missions, is very different than experience gained from working in the commercial world.”
The specialized nature of government contracting creates both challenges and rewards. As Howard observes, “When we talk to business entrepreneurs or new staff we remind them: We know that what we do is not easy to do, and it’s very expensive to ensure it’s done right. A phrase we use often is, ‘If it were easy, everyone would do it.'”
Despite these challenges, the work provides unique opportunities. “The work we do is very, very exciting. It’s not being done anywhere else in the world,” Howard says, highlighting the innovative projects HX5 supports through its government partnerships.
Through careful compliance management, strategic planning, and specialized expertise, HX5 continues to navigate the complex regulatory landscape of government contracting while delivering mission-critical support for federal agencies.
Discussion about this post