As cyber threats evolve, businesses working with the Department of Defense (DoD) must prioritize CMMC 2.0 compliance to protect sensitive data. The Cybersecurity Maturity Model Certification (CMMC) sets clear requirements for safeguarding Controlled Unclassified Information (CUI) and Federal Contract Information (FCI).
Understanding when CMMC compliance is required is crucial for securing DoD contracts. Achieving CMMC certification ensures your business meets Level 2 compliance requirements and remains eligible for contracts. With the final rule effective in 2025, businesses must act now to meet CMMC assessment requirements and avoid losing opportunities. Non-compliance could exclude you from the Defense Industrial Base.
In this blog, we will explore when CMMC compliance is required, the CMMC level requirements, the benefits of achieving CMMC certification, and the steps businesses must take to meet the CMMC compliance deadline and secure future DoD contracts.
Key Takeaway
- CMMC compliance is essential for businesses handling sensitive government data like CUI and FCI to secure or maintain DoD contracts.
- The CMMC program includes Level 1, Level 2, and Level 3 certifications, with each level requiring increasing security practices and third-party assessments for higher levels.
- Non-compliance can lead to losing access to valuable contracts, making early preparation critical for staying competitive in the Defense Industrial Base (DIB).
What Is CMMC and Who Needs It?
CMMC (Cybersecurity Maturity Model Certification) is the Department of Defense’s (DoD) new cybersecurity standard designed to protect sensitive government data. The certification ensures that contractors and subcontractors meet specific CMMC requirements to safeguard Federal Contract Information (FCI) and Controlled Unclassified Information (CUI), which are critical to national security.
CMMC applies to businesses handling sensitive data in DoD contracts. Contractors and subcontractors in the Defense Industrial Base (DIB) must meet the appropriate CMMC level: Level 1 for basic security, Level 2 for advanced measures, and Level 3 for the highest standards.
However, businesses that deal only with Commercial Off-the-Shelf (COTS) products are generally exempt from CMMC compliance requirements, as these products do not involve sensitive government data. To ensure businesses are compliant with the CMMC program rule, many work with CMMC consultants or the CMMC accreditation body to meet the required CMMC level. (Source: McDonald Hopkins)
Why This Matters
- Small contractors and suppliers may be impacted if they handle sensitive government data like CUI or FCI, even if they are not large prime contractors.
- Businesses must verify their compliance with CMMC requirements, not just promise strong cybersecurity measures. Compliance is about tangible, demonstrated security practices, which can be proven through assessments and certifications.
- Failure to meet CMMC compliance may result in losing access to valuable DoD contracts, as the CMMC clause becomes a mandatory part of contract awards.
- As CMMC Level 2 and Level 3 certification becomes required, businesses that do not meet these security requirements risk falling behind in the Defense Industrial Base (DIB) and missing opportunities with the Department of Defense.
- Being CMMC compliant not only opens doors to DoD contracts but also demonstrates a strong commitment to data security, building trust with partners and clients.
CMMC 2.0 Levels and What They Mean for Your Business
The Three CMMC Levels
The CMMC program consists of three levels, each representing a set of cybersecurity practices and maturity requirements designed to protect sensitive information. Here’s a breakdown of the three levels:
|
CMMC Level |
What It Covers |
Assessment Type |
Requirements |
|
Level 1 |
Basic Cyber Hygiene — Focuses on safeguarding Federal Contract Information (FCI). |
Self-assessment |
Includes basic security requirements, such as access control and incident response. |
|
Level 2 |
Intermediate Cyber Hygiene — Addresses the protection of Controlled Unclassified Information (CUI). |
Self-assessment or third-party |
Level 2 requirements include more advanced practices aligned with NIST SP 800-171. |
|
Level 3 |
Advanced Cybersecurity Practices — Required for businesses handling the most sensitive CUI and critical defense data. |
Third-party assessment |
Includes extensive security requirements covering over 100 practices to ensure robust cybersecurity. |
Each level builds on the previous one, with Level 2 certification and Level 3 certification requiring third-party assessments to ensure businesses meet the necessary compliance requirements for handling sensitive DoD data.
When Is CMMC Compliance Required? Key Considerations
- CMMC compliance will be required for all DoD contracts involving Federal Contract Information (FCI) or Controlled Unclassified Information (CUI). Businesses handling this data must demonstrate compliance with the appropriate CMMC level to secure or maintain contracts with the Department of Defense.
- Businesses are required to comply with CMMC as of 2025 in order to qualify for new DoD contracts or renewals that involve sensitive data. This deadline is critical for companies looking to engage with the DoD and remain competitive in the Defense Industrial Base (DIB).
- Existing contracts may not immediately require compliance, but renewal opportunities will likely hinge on meeting CMMC standards once the new rules take effect.
- As the CMMC program final rule becomes fully enforced, businesses must ensure they are prepared to meet compliance requirements or risk losing out on future contracts and opportunities.
- Subcontractors will also be required to meet CMMC compliance as part of the 48 CFR CMMC clause, making it essential for all businesses in the supply chain to stay up-to-date with the CMMC model and its requirements.
- To ensure compliance with CMMC 2.0, businesses may need to undergo a Level 2 C3PAO assessment or higher, depending on their role and data handling practices.
- Businesses must adopt a solid compliance strategy and work with CMMC consultants to meet CMMC documentation and compliance controls, securing their eligibility for future DoD contracts.
What Does This Mean for Your Business?
- Contracts with DoD primes (large contractors) will demand CMMC compliance from all lower-tier suppliers and subcontractors.
- Early readiness can position your company as a preferred partner for new DoD contracts as the requirement ramps up.
- Even if you’re not currently working with DoD contracts, if you plan to bid in the future, it’s crucial to prepare now.
- Businesses should conduct gap analyses and update their cybersecurity protocols to meet CMMC standards.
Who Needs to Comply — A Self-Assessment Checklist
- Does your business handle DoD contracts, whether prime or subcontractor?
- Do you handle Federal Contract Information (FCI) or Controlled Unclassified Information (CUI)?
- Are you involved in the development, storage, or processing of defense-related data?
- Do you plan to bid on or maintain DoD contracts?
- Are you part of a supply chain supporting a larger DoD contractor?
If you handle any DoD sensitive data, compliance is required for any contract that handles that data. Don’t wait until the solicitation specifies it — begin preparations now.
Why Businesses Should Care — Risks of Non-Compliance & Benefits
Risks of Not Being CMMC-Ready
- Ineligibility for DoD contracts: Without certification, businesses will be excluded from contract opportunities involving FCI or CUI.
- Data breach risks: Failure to meet compliance exposes your company to cybersecurity risks, with sensitive data at risk.
- Loss of business relationships: Non-compliance could force contractors to drop you from supply chains.
Benefits of Early CMMC Compliance
- Competitive advantage: Demonstrates your business’s commitment to cybersecurity and sets you apart from non-compliant competitors.
- Access to more contracts: Early compliance increases your eligibility for future DoD contracts.
- Reduced risks: Enhanced security and mitigation of potential data breaches protect your reputation.
How to Prepare — Steps for Achieving CMMC Compliance
- Conduct a gap analysis: Assess your current cybersecurity practices against the requirements for the level of CMMC compliance your business needs.
- Document your policies: Create or update your System Security Plan (SSP) and Plan of Action & Milestones (POA&M).
- Implement cybersecurity controls: Focus on securing sensitive data (e.g., encryption, access control, etc.) to meet the appropriate CMMC level.
- Prepare for assessments: Depending on the level, ensure you are prepared for self-assessments or engage with third-party assessors for Levels 2 and 3.
- Train your employees: Make sure your team understands the importance of CMMC and implements best practices.
- Work with experts: If needed, consult cybersecurity professionals or CMMC consultants to streamline your journey toward compliance.
How an IT Support Partner Like Crown Computers Helps with CMMC Compliance
With over 28 years of experience, Crown Computers offers unmatched white-glove service and a commitment to always answering the phone, ensuring your business receives the support it needs when it matters most. Our team is dedicated to delivering tailored IT solutions that help you meet CMMC compliance requirements, safeguard sensitive data, and maintain the highest level of security for your systems.
Ways We Can Help:
- Network & Data Security: Ensure your network and systems are secure and meet CMMC security requirements for protecting Federal Contract Information (FCI) and Controlled Unclassified Information (CUI).
- CMMC Compliance Support: Specialized support for businesses in the Defense Industrial Base (DIB) and other sectors, ensuring compliance with CMMC and providing the tools you need to achieve Level 2 or Level 3 certification.
- Managed Backups & Disaster Recovery: Implement reliable backup solutions and disaster recovery plans to ensure business continuity and compliance with CMMC’s security requirements for data protection.
- Vendor Oversight & Audits: Conduct thorough vendor audits and oversight to minimize risk, ensuring your partners and subcontractors are also CMMC compliant, reducing the chance of compliance gaps in your supply chain.
Schedule a Compliance Review with Crown Computers Today.
Frequently Asked Questions
Do subcontractors need CMMC, or only prime contractors?
Yes — subcontractors working with DoD contractors must comply with CMMC if they handle sensitive data, regardless of whether they are a CMMC Level 1 or CMMC Level 3 contractor. Compliance with the requirements for CMMC is essential for all businesses in the supply chain, including subcontractors, to maintain eligibility for DoD contracts.
Does my business need CMMC for all contracts?
No — only for contracts involving Federal Contract Information (FCI) or Controlled Unclassified Information (CUI). If you don’t deal with sensitive data, you may not need to comply with CMMC requirements. However, if your business plans to bid on contracts involving sensitive information, you must meet the CMMC standards, including any Level 1 or Level 2 requirements.
Can my business meet CMMC standards without a third‑party assessment?
It depends on the CMMC level and contract requirements. CMMC Level 1 and CMMC Level 2 may allow for self-assessment, but CMMC Level 3 requires a CMMC third-party assessment. Businesses must ensure they are compliant with the appropriate level, and a third-party assessment will be necessary for the higher levels to meet all security and compliance standards.
How long does it take to get CMMC‑compliant?
Typically, it takes 6 to 12 months for small to mid-sized businesses to become CMMC-compliant, depending on their current systems and the required CMMC level. Businesses working toward CMMC Level 2 compliance may need additional time to meet NIST 800-171 requirements. The process could take longer depending on the complexity of your infrastructure, especially for those seeking CMMC Level 3.
What happens if my business doesn’t meet CMMC requirements by the deadline?
If your business fails to meet CMMC requirements by the compliance deadline, you may be excluded from DoD contracts or renewals, particularly if the CMMC clause is included. Without CMMC certification, businesses will be unable to participate in any Phase 1 or higher DoD contracts requiring CMMC compliance.
Can we get CMMC certification if our systems are not fully aligned with NIST 800-171?
It depends on the CMMC level you are targeting. For CMMC Level 2 and Level 3 compliance, your business must meet NIST 800-171 requirements. If gaps exist, you’ll need to address them before CMMC certification. For Level 1, the requirements for CMMC are less stringent, but CMMC third-party assessments may still be needed for higher levels.
Final Words
CMMC compliance is crucial for businesses handling sensitive government data or planning to in the future. As the CMMC timeline progresses, meeting the requirements for CMMC Level 2 or CMMC Level 3 ensures eligibility for DoD contracts. The implementation of CMMC requires businesses to meet enhanced security requirements and maintain compliance with NIST standards. Start your compliance journey now by assessing your cybersecurity practices.
Need help with CMMC compliance? Contact Crown Computers to begin your gap analysis and create a comprehensive compliance program to ensure you’re prepared for the final CMMC standards.