What Business Owners Need to Know About CMMC Compliance

CMMC compliance

After Biden was elected president, he vowed to make cybersecurity a top priority for his administration. This dedication to cybersecurity would extend to any non-government organization that works with the Department of Defense.

In order to ensure that defense contractors are in compliance with current requirements, the CMMC compliance program would be put into place. CMMC, or Cybersecurity Maturity Model Certification, aims to safeguard important government information from hackers and other threats.

Here’s what business owners need to know about CMMC compliance and how it can help with data protection.

What Is CMMC?

The Department of Defense’s CMMC was designed to ensure contractors complied with current security requirements. This would help these businesses protect both their own business data as well as any confidential government information that cannot get out.

Originally, the CMMC model structure had five different levels under two categories for processes and practices. A newer version of the program streamlines the requirements to three levels of cybersecurity. It also brings them in line with widely accepted NIST cybersecurity standards.

The three main goals of CMMC compliance include:

  • Protect sensitive defense data
  • Create a unifying cybersecurity standard
  • Ensure accountability for defense companies

CMMC Levels and Requirements

The new version of CMMC cuts down the levels to three by getting rid of the original transition levels. The updated version takes into account the type of information a contracted company may handle in its daily operations.

Level 1

Level 1, also known as the foundational level, only applies to companies that focus on the protection of Federal Contract Information (FCI). To acquire this certification, a company must display adherence to the 17 controls found in FAR 52.204-21.

This clause states that the company must limit access control, enforce identification and authentication, provide physical protection, and much more. It essentially comes down to various methods of protecting their data as well as consumer data.

Level 2

Level 2, or the advanced level, is for companies working with CUI. Controlled Unclassified Information (CUI) is any data that is not classified but still requires safeguarding or dissemination controls.

Instead of the FAR regulations, this would abide by the NIST SP 800-171 regulations. Level 2 specifically aligns with the 14 control families introduced by it. These include access control, awareness and training, incident response, personnel security, and more.

Level 3

The expert level focuses on reducing the risk from Advanced Persistent Threats (APTs). These threats use continuous and sophisticated hacking techniques to gain access to private data. Most often, APTs are performed by hacker groups who have ample time and resources.

This certification level combines NIST SP 800-171 and NIST SP800-172 controls for a total of 130 controls. It’s the most comprehensive expectation of cybersecurity measures due to the consistent threat posed by hackers.

Who Needs CMMC Certification?

Currently, the changes to CMMC have not gone into effect yet. However, they are expected to become part of contracts as of 2026.

When CMMC 2.0 is fully put into effect, it will become a requirement for most defense contractors doing work for the Department of Defense. The required level will depend on the type of work and the specific contract.

A good way to predict which certification level will apply is by analyzing the company’s current requirements.

For example, companies that must adhere to FAR 52.204-21 will most likely only need to achieve CMMC level 1. They’ll also need to self-certify once a year that they meet the current requirements.

At level 2, a third-party assessment will be required every three years. They will also need to perform a self-assessment every year.

Companies in contact with highly sensitive information will need to achieve level 3 compliance. This means meeting a laundry list of requirements and implementing the most thorough cybersecurity measures available. However, the Department of Defense has yet to establish strict rules on how to assess this level of compliance.

Cost of CMMC Compliance

If you’re a Southern California based business then partnering with a Los Angeles IT support company can help you fight cybersecurity issues.

But cybersecurity compliance does not come without its own costs and considerations, though. It depends on various factors such as the size of your company, what measures you already have implemented, and your budget.

When it comes to the cost of implementing new cybersecurity measures, the main factor is the number of employees accessing this data. It’s important that the company limits how many actual employees and technologies can access confidential information.

Newer companies will also have a difficult time adhering to CMMC regulations. It may cost more and require implementing processes and procedures not already in play.

In order to maximize CMMC compliance, your company will need IT support consulting. This will take up the bulk of your budget since they’ll need to analyze every aspect of your security measures. You’ll then need to budget the cost of a CU technology solution that will cost a certain amount per user.

Without these cybersecurity measures, your company can risk extensive downtime, losing important data, and violating your contract.

Cybersecurity Compliance Tips

In order to remain compliant with new cybersecurity measures, it’s important to understand the regulatory landscape. Regulations are constantly changing, and the way you comply one year may not be enough for the next. This is one reason why annual self-assessments are so critical.

Your company will also want to develop a comprehensive cybersecurity policy. Lay out which employees have access to what information. Create procedures to follow in case an incident arises.

Finally, install network security. It’s all too easy for hackers to gain access through your WiFi, emails, and installed software. Make sure that you have installed and updated firewalls, detection systems, and prevention systems.

Protect Your Information

CMMC compliance requires that your business make a lot of changes to how it operates and accesses its data. However, these changes are necessary in today’s climate if you want to protect your company and avoid lawsuits in the future. It’s especially important if you want the Department of Defense to trust your services.

Be Structured Technology Group has been providing managed IT services in Los Angeles for over 15 years. Our services cover security, cloud network installation, hardware installation, and more.

Contact us today to speak with a representative and get a free consultation.

About Chad Lauterbach

CEO at Be Structured Technology Group, Inc. a Los Angeles based provider of Managed IT Services for small business. I desire to help small businesses better utilize technology by assisting in high level planning to make sure that new systems will benefit them both operationally and financially. I am careful to implement and support systems using industry best practices.