Margarita Howard built HX5 with a simple recognition: Government contracting demands specialized expertise that takes years to accumulate. Lose that expertise through turnover, and you lose your competitive edge.
“Many of our employees have been with us for 10 years or more, and we just have a highly dedicated and experienced workforce,” Howard says of her company’s personnel.
For an industry where contract transitions often trigger workforce churn, HX5’s retention record stands out. The firm now employs over 1,000 professionals in over 20 states, supporting NASA and Department of Defense projects.
Retention alone doesn’t solve the knowledge problem. Even stable workforces face succession challenges when senior employees retire or move on. The question becomes: How do you capture what they know before they leave?
The Challenge: Specialized Knowledge in High-Stakes Environments
Defense and aerospace contracting presents particular knowledge transfer challenges. Projects often involve classified information, complex technical requirements, and strict regulatory frameworks. Employees need to understand not just the technical work itself but also government procurement processes, compliance obligations, and agency-specific expectations.
“Government contracting is laden with rules, regulations, and compliance requirements that can be daunting to new business owners,” Howard says. “Businesses must invest in educating themselves about these regulations and ensure strict adherence to them.”
The Defense Logistics Agency recently emphasized this challenge through its Contracting Officer Mentorship Program. DLA Energy officials stressed how mentorship helps contracting professionals navigate emerging technologies and acquisition practices during an era of strategic competition.
Each year, scientists and engineers working within defense laboratories produce around 600 patented inventions across virtually every technology field. This constant flow of innovation creates knowledge that contractors must absorb and integrate into operations. Without structured systems for knowledge transfer, critical insights can vanish.
HX5’s Three-Pronged Approach
Howard describes HX5’s knowledge transfer strategy in practical terms.
“Through our knowledge management systems, we have developed internal platforms to document our processes, our lessons learned, and the best practices for easy access,” she says.
These platforms serve as institutional memory. Project documentation, compliance procedures, and technical specifications live in searchable databases. Documentation alone falls short, though. Written procedures can’t capture every nuance of client relationships or the judgment calls that experienced contractors make daily.
“We also have our mentorship programs where senior employees mentor newer hires, ensuring that knowledge transfers happen quickly and consistently from within,” Howard explains.
The Department of Defense itself recognizes mentorship’s importance for its own workforce. DoD’s formal Mentor-Protégé Program, established in 1990, pairs major contractors with small businesses to enhance capabilities and foster long-term relationships.
After knowledge management systems and mentorship, the third prong of Howard’s approach at HX5 is organizational culture.
“We encourage a learning culture where employees share insights regularly through ongoing cross-department collaboration,” she says.
This creates what organizational scholars call “communities of practice” – groups that share knowledge through regular interaction. An engineer working on a NASA contract might learn from colleagues supporting DoD projects, discovering how different agencies approach similar technical challenges.
Why It Matters Beyond HX5
Knowledge transfer affects government contracting’s broader ecosystem. When contractors lack institutional knowledge, they make mistakes that cost taxpayers money. Projects might run over budget. Deadlines can slip. Quality suffers.
Recent industry data underscores retention’s importance. Global turnover rates climbed to roughly 20% in 2024, up from 18% in 2023. High turnover leads to increased recruitment and training costs, disrupted productivity, and loss of institutional knowledge. The average employee tenure dropped from 4.5 years in 2022 to 4.2 years in 2024.
There are competitive advantages to bucking these trends. Companies with strong retention and knowledge transfer systems can maintain consistent performance across contract renewals.
Howard sees knowledge sharing as an industry responsibility. “We don’t keep good processes to ourselves,” she says. “If it makes sense, especially with people we’re collaborating with, we share those insights with them. And we believe that it elevates the entire industry.”
The Practical Reality
When asked about advice she would give to her younger self, Howard emphasized the importance of knowledge sharing.
“Don’t try to do it all by yourself,” she says. “Trust in your team and focus on the big picture.”
“I think it took me a little bit longer to let go,” she says “It’s very hard to give up that control, so I would remind myself that delegation is not a weakness, but it’s a sign of good leadership.”
Effective knowledge transfer requires that kind of delegation. Senior employees must take time away from their own work to teach others. Leaders must trust that newer employees will eventually match or exceed the expertise of those they’re learning from.
The alternative is building a company dependent on a few irreplaceable people. When they leave, crucial knowledge walks out the door with them.
HX5’s emphasis on knowledge management systems, mentorship programs, and continuous learning represents one contractor’s solution to a common industry challenge.
The broader defense contracting industry faces similar imperatives. As technology advances and regulations adjust accordingly, the ability to capture, transfer, and build upon institutional knowledge will separate contractors who adapt from those who struggle.
