CMMC: The New Department of Defense Requirements for Cybersecurity Maturity in Defense Contracting Companies

In October 2024, the Department of Defense (DoD) introduced the first part of its final rule establishing the Cybersecurity Maturity Model Certification (“CMMC”) program — a set of requirements designed to enhance cybersecurity maturity in defense contracting companies to reduce the risks associated with leveraging third-party contractors to complete mission-critical tasks, including the handling of controlled unclassified information (CUI).

What is CMMC?

CMMC is a framework that assesses an organization’s cybersecurity capabilities and processes against a set of controls outlined by the National Institute of Standards and Technology (NIST) Special Publication 800-171. This comprehensive guide provides a roadmap for organizations to achieve cybersecurity maturity to protect sensitive information and intellectual property.

The rollout of CMMC is scheduled to occur in phases:

2025: All DoD contractors must self-assess and attest to their status in order to win new contracts.
2026: Third-party assessment and certification required for new contracts
2027: All new contracts and new work on existing contracts require certification.
2028: CMMC requirements will apply to all DoD solicitations and contracts as a condition of award

The Impact on Small- and Midsize Businesses

CMMC Level 2 certification is the requirement most small and mid-size businesses (SMBs) will need to achieve to do business with the DoD. To obtain this certification, organizations must demonstrate compliance with NIST 800-171 requirements. This includes implementing robust security controls such as multi-factor authentication, encryption, incident response planning, and more.

However, many SMBs are currently unable to meet CMMC requirements due to their limited resources and lack of prioritization on cybersecurity controls. Many SMBs may not have the necessary expertise, budget, or infrastructure to implement the required security measures, eliminating them from participating in DoD contracts and leaving them vulnerable to cyber attacks.

Two Paths for SMBs

Small and mid-sized businesses (SMBs) face two distinct paths when it comes to addressing the requirements of CMMC Level 2 certification, each with vastly different outcomes for their cybersecurity posture and competitiveness.

Postpone or Ignore Remediation

Some SMBs may choose to delay or forego the necessary steps to meet CMMC requirements, but this approach comes with substantial risks:

Increased Exposure to Cyber Threats: Failing to implement robust security controls leaves businesses vulnerable to cyberattacks and data breaches, with potential losses far outweighing the cost of compliance.
Competitive Disadvantage: As the DoD and other organizations prioritize contractors with advanced cybersecurity maturity, non-compliant SMBs will find themselves excluded from lucrative contracts and falling behind in the marketplace.

Set the Stage for a Secure and Prosperous Future

Alternatively, SMBs that take proactive steps toward achieving CMMC Level 2 certification can position themselves as trusted, reliable partners. By investing in compliance now, they can:

Mitigate Cybersecurity Risks: Strengthened defenses reduce the likelihood of costly breaches and improve overall resilience against threats.
Gain a Competitive Edge: Demonstrating maturity in cybersecurity enhances an organization’s reputation and increases its appeal during contract evaluations.
Secure Long-term Viability: Early compliance ensures readiness for future CMMC requirements, maintaining access to critical business opportunities in the defense sector.

Choosing the path of compliance not only protects sensitive information but also secures a more prosperous and sustainable future in the highly competitive world of defense contracting.

The Value of Partnering with an MSSP

Achieving CMMC compliance is a smart and necessary step for SMBs, but the process can be daunting. Limited budgets, resource constraints, outdated infrastructure, and the complexity of cybersecurity requirements often make compliance challenging for smaller organizations. This is where partnering with a knowledgeable MSSP becomes invaluable.

MSSPs offer cost-effective security solutions through affordable monthly plans, helping SMBs address key compliance needs, including:

Assessment: Conducting detailed evaluations to identify gaps that could prevent passing the C3PAO certification assessment.
Remediation: Streamlining the process of implementing required NIST 800-171 security controls to close identified gaps.
Enhanced Cybersecurity Maturity: Providing expert-managed services that improve cybersecurity capabilities, boost SPRS scores, and increase the likelihood of securing DoD contracts.

Given that CMMC compliance is a critical requirement for defense contractors, SMBs face the greatest risks if they fail to prioritize cybersecurity. By partnering with reputable MSSPs, SMBs can overcome resource limitations, ensure compliance, and demonstrate the advanced cybersecurity maturity necessary to thrive.