Artificial intelligence is becoming pivotal in federal procurement, reshaping how contractors and government agencies approach the bidding and evaluation process. As a recent Federal News Network article highlights, AI’s integration into government contracting hinges on the modernization of IT systems and organizational frameworks. Without updated infrastructure, AI’s full potential in streamlining procurement remains limited.
Contractors increasingly use AI to manage proposal preparations, particularly in analyzing past performance data and optimizing responses. This automation enhances efficiency and accuracy, allowing offerors to refine their submissions based on historical data trends. Government agencies are also expected to expand their reliance on AI to evaluate proposals and raise important questions about transparency and accountability.
Margarita Howard, sole owner and CEO/president of HX5, recognized this imperative early. “The bottom line is, if you don’t embrace it, you’re just going to be gone,” she says, discussing her company’s proactive approach to AI adoption. “We’re already seeing benefits from it.”
Under Howard’s leadership, HX5 moved aggressively to implement internal AI systems through a combination of in-house expertise and external resources. She authorized significant investments in technology and talent to ensure the company would stay ahead of industry trends. “We’re adopting it heavily, “ she confirms.
Margarita Howard: Early Investment Pays Off
Howard’s decision to invest in technology and infrastructure before pursuing rapid growth proved prescient. “Right from the beginning, we invested heavily in purchasing and implementing specialized systems,” she explains. “We knew the government was very familiar with them and that they would provide us with the necessary tools to pass audits and gain approval for contract performance.”
This foundation now supports over 1,000 employees across 34 states and 90 government locations. While the company actively implements new AI capabilities, it maintains its core focus on technical excellence and regulatory compliance.
The specialized nature of defense and space sector work requires constant technological advancement. “Our field is supporting R&D and specialty area programs,” Margarita Howard notes, adding those areas are primarily in the science, technology, engineering, and mathematics fields. “Across [the Department of Defense] and NASA, those specialties form our primary workforce.”
Because of the types of programs HX5 supports, hiring people with STEM backgrounds is almost always the priority. Additionally, the company invests heavily in training. In addition to hiring qualified technical staff, all employees must complete regular training on security procedures, government regulations, and new developments in their technical fields to excel in sensitive government projects.
HX5 maintains relationships with outside specialists to handle complex technical and regulatory matters. “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, those are types of external situations where we may need to consult with these experts,” Margarita Howard says. “They’re part of our practice and business model.”
Mission Support Meets Modern Tech
The integration of AI into government operations presents both opportunities and challenges. Margarita Howard says, “We try to stay ahead of changing technologies, AI, and cybersecurity. I saw it was important to get started on it early and so we have.”
This forward-thinking approach extends to proposal development, where AI tools are now increasingly important. “Being able to write winning proposals is an absolute necessity,” Howard points out. “Developing proposals that accurately show capabilities, solutions, and value propositions requires solid technical expertise combined with effective writing skills.”
Government contracting demands constant readiness for shifting priorities. “We always have to be ready for changing missions,” Margarita Howard explains.
HX5 maintains detailed financial records and documentation that can withstand government scrutiny. AI systems that track and organize this type of information allow employees to handle more sophisticated work while ensuring perfect audit accuracy.
The excitement about cutting-edge work helps attract and retain top talent despite fierce competition from commercial tech companies offering high salaries. “We always say, ‘You have to get up in the morning and be excited about the particular program you’re supporting, let’s get to the moon, let’s accomplish this mission overseas where X and Y are happening, etc.,” says Howard.
Margarita Howard’s leadership style, which emphasizes innovation and operational excellence, is particularly effective in an industry where precision and adaptability determine success.
“The work we do is very, very exciting,” she says. “Some of it is not being done anywhere else in the world.”
AI isn’t a trend; federal agencies expect it from their contractors. HX5’s early and substantial investment in AI technology, combined with Margarita Howard’s decades of defense contracting experience, puts the company ahead of competitors who are still weighing their options. HX5 shows that embracing new technology while maintaining strict compliance standards wins government business in an industry where technical innovation determines contract awards.
