The Small Business Administration’s 8(a) Business Development Program offers qualified companies access to sole-source contracts worth millions of dollars. While many participants become dependent on these set-aside opportunities, Margarita Howard took a different approach when HX5 entered the program. Her competitive philosophy shaped the company’s trajectory from startup to a contractor employing over 1,000 people across 34 states and 90 government locations.
Howard’s decision to compete for contracts rather than rely solely on program benefits reflected her understanding of sustainable business development. She recognized that sole-source dependency created vulnerabilities that could cripple companies after program graduation.
“I had that competitive edge or desire. And I knew that I didn’t want HX5 to be dependent on sole-source awards,” Howard explains. “We had been in the industry, we knew small businesses in our area, and that’s what many of them did. And once the program was over after nine years, they were done. They had never competed. They had never really done it on their own.”
Margarita Howard’s Competitive Strategy During 8(a) Participation
Rather than accepting the easier path of sole-source contracts, Margarita Howard positioned HX5 to compete against other contractors from the beginning. This approach required additional investment in proposal development capabilities and competitive analysis, but created essential business competencies that would prove valuable long-term.
Howard’s competitive strategy yielded immediate results. “After becoming an 8(a) company, we were awarded very quickly four contracts in one year and that really helped in getting us off the ground,” she notes. These initial contracts provided the foundation for HX5’s expansion into supporting research, development, testing, evaluation, hardware and software engineering, and mission support operations for federal agencies including the Army, Navy, Air Force, NASA, and General Services Administration.
The decision to compete during program participation created compound advantages. HX5 developed proposal writing expertise, competitive intelligence capabilities, and market positioning skills that many 8(a) companies never acquire during their program tenure.
Building Sustainable Capabilities Beyond Set-Aside Programs
Margarita Howard’s competitive philosophy extended beyond contract acquisition to encompass comprehensive business development. She understood that competition required different organizational capabilities than sole-source contract management.
This commitment to competition influenced every aspect of HX5’s development. The company invested in specialized proposal teams, competitive analysis capabilities, and pricing strategies that enabled success in contested procurement environments.
Howard’s approach contrasted sharply with other 8(a) participants who focused primarily on sole-source opportunities. While these companies enjoyed short-term revenue benefits, they failed to develop the competitive infrastructure necessary for post-graduation success.
The competitive focus required accepting higher business development costs and proposal risks, but created sustainable competitive advantages that continued generating value after program completion.
HX5’s Post-8(a) Success Through Competitive Excellence
Margarita Howard’s early competitive strategy proved essential when HX5 graduated from the 8(a) program. The company possessed the organizational capabilities necessary to compete effectively in open market environments, unlike many program participants who struggled after losing set-aside benefits.
“It was a very early decision that we would compete while still being in the 8(a) program,” Howard explains. The company’s competitive infrastructure enabled continued growth and contract acquisition after program graduation.
HX5’s success in both prime contracts and subcontracting relationships demonstrates the value of Howard’s competitive approach. The company developed relationships with large prime contractors who valued HX5’s proven competitive capabilities and performance track record.
The competitive philosophy became embedded in HX5’s organizational culture, influencing hiring decisions, investment priorities, and strategic planning processes. This comprehensive approach to competition enabled the company to maintain growth momentum beyond program benefits.
Margarita Howard’s decision to compete from day one illustrates how strategic business philosophy can determine long-term success in government contracting. Her approach created sustainable competitive advantages that continue supporting HX5’s growth across diverse federal contracting opportunities, demonstrating the value of building competitive capabilities rather than depending solely on set-aside programs.
