Why CMMC Readiness is a Must for Defense Contractors: Don’t Risk Losing Out!
Why CMMC Readiness is a Must for Defense Contractors
For companies in the Defense Industrial Base (DIB), getting CMMC ready isn’t just a suggestion—it’s a must to keep security tight across the digital supply chain. With the Department of Defense’s (DoD) final rule now active, companies need to make compliance a top priority. Putting it off can be risky and even devastating, leading to lost contracts and missed business chances.
The Top Three Challenges Making Readiness Tough
Not New, But Now Stricter
Unlike what some might think, the controls behind CMMC aren’t new. They’ve been enforceable since the DFARS 7012 clause went live in 2017. That rule required all DoD contractors handling Controlled Unclassified Information (CUI) to use the 110 controls in NIST SP 800-171. What CMMC adds is independent validation, turning self-checks into certified proof.
Cost vs. Staying Competitive
Skipping or delaying budget for implementation has real consequences today. Companies often lowball project bids to stay competitive, leaving out the real costs of compliance. But this can mean either eating the costs after winning the bid or failing compliance altogether. Spreading out implementation costs across multiple contracts doesn’t remove the need to certify or charge correctly in bids.
Confusing Government Messages
Many companies say confusing federal guidance is a top challenge. The pressure grows when rules change mid-rollout or new timelines are introduced across different administrations or congressional cycles. Expect more updates to CUI definitions and scoping from upcoming CFR guidance. Clarity is coming, but only after significant disruption has already happened.
Unclear CUI Scoping
Almost 50% of companies are still unsure what counts as CUI under specific contracts. Even though the Defense Department is expected to define CUI scope in each contract, internal definitions are often vague. Contractors need to proactively check their data to find systems handling CUI, including technical specs, security planning documents, and subcontractor data, rather than waiting for clear guidance.
CMMC Is Now Part of Contracts
With the official program rule published in late 2024 and inclusion in 32 CFR and DFARS underway, CMMC is now part of contract law. Contracts are already starting to mention CMMC levels, especially Level 2 for handling CUI, making certification a basic requirement as early as Q3–Q4 2025, with full enforcement expected by Q4 2026.
Why Delaying Readiness Is a Business Risk
Falling Behind in Competitive Bidding
Prime contractors are already making awards depend on proof of CMMC readiness. If your organization isn’t certified or working on it, you risk being left out—not just from future awards, but also from current supply chain roles.
Little Room for Mistakes in Assessment
The old “check first, fix later” approach won’t work anymore. Assessors want to see proof of consistent implementation, not just planned policies. Failing an assessment might stop you from rebidding for months or even over a year, especially since there are only a limited number of C3PAOs and over 76,000 suppliers need certification.
Limited Qualified Assessors
DoD audit findings showed that some authorized C3PAOs lacked basic qualifications—leaving organizations open to inconsistent judgments. The lesson? Don’t risk leaving fixes until after the assessment. Set up NIST-based control basics first, then work with checked assessors.
Expensive Last-Minute Fixes
Assessment costs usually run between tens of thousands of dollars for most organizations. If you fail and need to fix things quickly, you often end up paying more in rush fees, emergency solutions, and operational disruptions.
Leadership Signals
DoD leaders, including CIO Katie Arrington, have been clear: “If you haven’t started getting ready for CMMC, now is the time to do so. Now the light is flashing red.” The message is clear: organizations were already late as early as 2024, and excuses are no longer accepted.
How Companies Should Act Now
- Do a Gap Check Right Away: Find out where your current setup falls short of the NIST SP 800-171 control set. Know exactly what systems store, process, or send CUI. This is a basic step for certification.
- Make a Step-by-Step, Real Plan: Put the plan into action in phases to reduce disruption. Focus first on key controls like MFA, encryption, checking/logging, and access controls. Spread out costs and effort across different periods and contracts to lessen budget shock.
- Start Gathering Proof Early: To ensure a smooth certification, start collecting documents, policies, training records, and proof of operations well before your formal check.
- Book Your C3PAO: C3PAO slots are fully booked months ahead. For most DIB companies, working with a qualified readiness partner can make fixes, proof gathering, and scheduling easier. Getting involved early pays off—both in cost savings and smoother check results.
- Build Governance and Check Trails into Security Controls: Certification is about having governance that supports practice. Check trails, version control, executive confirmation, and responsibility setups are as important as technical controls.
CMMC Readiness Means Keeping Business Going
The message is clear: if your company wants to stay in the Defense Industrial Base, CMMC readiness is a must. Not following the rules risks include being left out of contracts, legal problems, financial penalties, and reputation damage.
