The Cost of CMMC Compliance for Small Companies

As the Department of Defense (DoD) ramps up cybersecurity requirements for its contractors, small businesses are facing new financial and logistical challenges in achieving Cybersecurity Maturity Model Certification (CMMC) 2.0 compliance. This certification is crucial for companies in the DoD supply chain, but the associated costs can be significant, especially for small companies with limited resources. Let’s break down these costs and explore some ways to prepare.

Why is CMMC 2.0 Compliance Costly?

CMMC 2.0 compliance requires implementing cybersecurity practices across three certification levels, each tailored to the sensitivity of information being handled. For small businesses, expenses can accumulate from a variety of sources:

Initial Assessment and Gap Analysis

Companies need to first assess their current cybersecurity posture to identify gaps between their practices and CMMC requirements. An initial self-assessment might suffice for Level 1 (which allows self-attestation for handling Federal Contract Information, or FCI), but Levels 2 and 3 require a third-party assessment, especially for handling Controlled Unclassified Information (CUI). Hiring consultants for a gap analysis alone can cost several thousand dollars.

Technology and Infrastructure Upgrades

Small businesses may need to upgrade their cybersecurity tools to meet CMMC standards, including firewalls, intrusion detection systems, access controls, and encryption for CUI protection. Depending on the company’s current infrastructure, these upgrades can range from a few thousand to tens of thousands of dollars.

Employee Training and Awareness Programs

CMMC compliance also mandates cybersecurity awareness training. For a small business, training costs might include purchasing training materials, hiring trainers, or dedicating internal staff time, which can add up to several hundred or even thousands of dollars annually.

Audit and Assessment Fees

For businesses needing Level 2 or Level 3 certification, third-party assessment costs are non-negotiable. These assessments ensure companies are fully compliant and typically cost anywhere from $35,000 to $100,000 for a small company, depending on the number of controls being verified and the complexity of the organization’s operations. 

Beyond the cost of audits, there is currently a 9-15 month wait for Level 2 and Level 3 audits due to a shortage of qualified auditors. 

Ongoing Maintenance and Compliance Management

Once certified, companies must maintain their cybersecurity practices and prepare for regular audits. This includes monitoring, ongoing vulnerability assessments, software updates, and possibly a dedicated compliance manager, with costs ranging from $25,000 to over $100,000 per year.

Strategies to Reduce Compliance Costs

Start with a Self-Assessment for Level 1

If your business only requires Level 1 certification, a self-assessment may be sufficient. This can save you the costs of a third-party audit, allowing you to focus your budget on training, software, and basic cybersecurity upgrades.

Use Existing Third-Party Infrastructure

CMMC 2.0 allows companies to “inherit” controls from third-party providers, such as cloud service providers who already meet CMMC requirements. Leveraging secure, compliant cloud services can help cut down on the costs of implementing and maintaining certain controls in-house.

Consider Compliance Automation Tools

Compliance software solutions can automate many aspects of CMMC compliance, including evidence collection, control mapping, and audit preparation. While there is an upfront cost, it can ultimately reduce the time and expense of ongoing maintenance and training.

Take Advantage of Available Grants and Resources

Some state and federal grants, along with small business loans, are available to help DoD contractors cover CMMC compliance costs. Checking with local business development centers can provide valuable guidance on financing and grants specifically for cybersecurity upgrades.

The Time to Start is Now

For small companies, the cost of CMMC 2.0 compliance can be daunting (see what this small company went through), but it’s an essential investment to remain eligible for lucrative DoD contracts. By carefully planning, conducting an initial self-assessment, and considering cost-saving strategies, small businesses can reduce the financial burden while meeting the necessary standards to protect sensitive government information.

Understanding and preparing for these costs now will enable small businesses to move forward with confidence in the defense supply chain, keeping their organizations secure and compliant for the future. For more details on CMMC requirements, visit the Federal Register’s CMMC page.

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