How Margarita Howard and HX5 Support Government Operations: The Advisory and Assistance Services Model

Federal agencies spent $456.2 billion on defense contracts during fiscal year 2024. Within this procurement ecosystem, advisory and assistance services represent a distinct category that enables government operations without contractors performing inherently governmental functions. Companies providing these services deliver technical expertise without displacing the decision-making authority that belongs to federal employees.

Margarita Howard, owner and CEO of HX5, has positioned her company to operate in this specialized domain. HX5 provides professional mission support services across over 20 states and 70 government locations, primarily serving the Department of Defense and NASA. The company operates in areas where government agencies require external technical capabilities but maintain control over policy decisions.

Defining Advisory and Assistance Services

The Federal Acquisition Regulation defines advisory and assistance services through three reporting categories: management and professional support services, studies and analyses, and engineering and technical services. These distinctions establish boundaries around contractor responsibilities.

HX5’s work falls primarily into the technical services category.

“Our focus is supporting R&D and specialty area programs, all with a heavy emphasis on education, skill sets, and experience in STEM disciplines,” Howard says. “So across DoD and NASA, those are the specialties our primary workforce possesses.”

This focus creates a specific employment profile. HX5 hires professionals with advanced technical education who can integrate into government teams without taking over government responsibilities. Federal regulations prohibit using A&AS contracts to bypass personnel ceilings or perform work that federal employees should handle directly.

The Embedded Support Model

Unlike contractors who deliver discrete products, A&AS providers embed personnel within government facilities. These contractors work alongside federal employees, often at secure locations where classified programs require daily collaboration.

“When visiting one of our work locations, it is often apparent that the type of work being done is not the type of work that someone can just come in with minimal education or experience and start performing,” Howard explains. “Much of the work requires a substantive combination of advanced education and specific work experiences, most often gained from working in the DOD or at NASA.”

The operational reality means HX5 employees often work side-by-side with military personnel or civil servants on programs lasting years rather than months. Contractor turnover creates operational disruptions, which affects how agencies evaluate performance.

This embedded model requires different security protocols than standard contracting. Each contract specifies classification levels, and the company must track training requirements and clearance status continuously.

Compliance and Documentation Requirements

Advisory and assistance services carry heightened compliance burdens compared to product-based contracts. Contractors must demonstrate they support rather than supplant government decision-making.

“From working in the industry, we knew the importance of impeccable record keeping,” Howard says. “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 our records are open to the government’s inspection and audits at any time.”

The company also employs advisers who specialize in government contracting regulations. “We have built and keep a team of advisers who specialize in the government industry, in the government field,” Howard says. “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.”

Government audits occur regularly across multiple domains. Labor department reviews examine human resources policies. Financial audits verify billing accuracy. Security audits confirm proper handling of classified information. “As a government contractor being paid with tax-payer dollars, it is the government’s job to audit every single area of what we do for them,” Howard says. For virtually any company supporting the government on A&AS type of contracts, it’s quickly understood that undergoing multiple types of audits is just a part of doing business with the Government.

Mission Integration and Operational Flexibility

Traditional contractors bid on defined projects, complete the work, and move to the next contract. A&AS providers operate differently. They become embedded in ongoing operations.

“We always have to be ready for changing mission priorities based on real-time world events,” Howard notes. A contractor supporting weapons development might see program emphasis shift suddenly when international tensions change. Personnel need the breadth of knowledge to adapt to different technical requirements within their specialty.

This operational flexibility creates advantages in contract renewals. Government agencies prefer continuity when contractors integrate into sensitive programs. Strong performance leads to expanded work rather than simply winning the next competitive bid.

“Building strong relationships with government agencies is an invaluable asset for successful government contractors as it can serve to provide the contractor with positive performance appraisals and sometimes even lead to new or additional business,” Howard says.

The Government Accountability Office found that agencies frequently awarded A&AS contracts to the same contractors on a recurring basis. Nearly 63% of A&AS contract actions used competitive processes, but established relationships mattered in who competed.

For HX5, this means investing in proposal capabilities even for recompetes. “Developing winning proposals that accurately show the company’s capabilities, solution approach, and value proposition in a compelling and compliant manner requires solid technical and cost expertise combined with effective proposal writing skills,” Howard says.

The company maintains dedicated proposal staff rather than assembling teams for each bid. This permanent capability has helped improve win rates and enabled pursuing multiple opportunities simultaneously.

Evolving Requirements and Automation

The advisory and assistance services model faces new pressures tied to the advance of AI and other technologies. Agencies increasingly need AI capabilities, cybersecurity expertise, and integration across multiple technical domains.

Howard anticipates changes in how contracts get managed. “Government agencies will increasingly utilize AI to streamline procurement processes, evaluate contractor performance, and probably predict future needs based on historical data that they collect,” she says.

Automation could affect compliance protocols. “Compliance protocols will be automated,” Howard predicts. “Contractors will be required to integrate systems that provide continuous reporting and real-time audit capabilities.”

This shift would change the embedded support model. Rather than periodic audits, agencies might monitor contractor performance continuously through automated data feeds. Financial transactions, milestone completions, and compliance metrics could flow automatically into federal databases.

For companies like HX5, success in A&AS contracting requires balancing technical excellence with regulatory compliance and operational flexibility. The model differs from both product delivery and pure consulting. It occupies a middle space, where contractors provide sustained technical capability while agencies retain decision authority.