Since the Department of Defense (DoD) finalized its Cybersecurity Maturity Model Certification (CMMC) Program, many organizations are asking how much it will cost. Understandably, defense industrial base (DIB) contractors and subcontractors want to know how CMMC compliance will impact their bottom lines.
Depending on the organization’s size (small, medium, or large) and the required certification level (1 to 3), Defense Industrial Base (DIB) companies should anticipate allocating between $25,000 and $250,000 annually to achieve and maintain CMMC compliance. Many factors impact the cost of CMMC certification and can lead to significantly higher or lower CMMC-related expenses, including the complexity of IT infrastructure, the need for third-party assessments, and the degree of cybersecurity maturity already in place.
In the DoD’s final rule, you’ll find a cost analysis for small and “other than small” entities, illustrating the estimated impacts of CMMC implementation at different levels. The estimates are based on public feedback and internal expertise — per cost accounting standards — and reflect the cost of preparation, the CMMC assessment itself and reporting its results, and annual affirmation. The following estimates also assume that an organization already has the required security controls in place, such as those in National Institute of Standards and Technology Special Publication 800-171 (NIST SP 800-171):
The following factors can greatly impact how much your organization will need to spend on CMMC compliance:
The CMMC level you need determines the number of controls your organization must implement, which may require a greater investment in security tools, software, or upgrades. For example, if your business handles Federal Contract Information (FCI) and must achieve CMMC Level 1, you’ll need to comply with the 15 security requirements in Federal Acquisition Regulation 52.204-21 and can perform a self-assessment to confirm compliance. The process is streamlined, and costs are tied primarily to internal resources spent on documentation, security implementation, and reporting compliance.
By contrast, a DIB that handles Controlled Unclassified Information (CUI) will need to be assessed for CMMC Level 2 by a third party, which requires compliance with 110 NIST SP 800-171 security controls. They may need to invest significantly more resources into the appropriate security controls, employee training, and documentation than a Level 1 contractor.
Most organizations needing to reach CMMC Level 2 certification must also hire a CMMC Third Party Assessment Organization (C3PAO) to conduct an official assessment, leading to higher costs. To illustrate, the DoD estimates that a Level 1 self-assessment for small entities is $2,705 annually, while a C3PAO Level 2 assessment is $76,743 per three years.
Costs at Level 2 and Level 3 can vary widely, often starting in the tens of thousands and possibly exceeding $100,000 depending on the level of effort and third-party assessor involvement.
If your business plans to hire a consultant, you will need to factor their fees into your CMMC certification costs, which vary depending on your organization’s size, complexity, and level of support required. Despite the additional initial costs, consulting services can help your organization save money in the long run. Working with an experienced consultant can make CMMC implementation more streamlined, reduce the chance of errors, and ultimately be more cost-effective than navigating compliance on your own.
CMMC consultants usually begin their services by performing a gap analysis to identify relevant cybersecurity gaps. After the consultant uncovers vulnerabilities, they can recommend a practical, actionable path forward, saving your organization time, resources, and costly mistakes. While DoD does not require contractors to seek consulting services, it’s still worth considering to ensure CMMC assessment readiness.
Chances are, CMMC certification for a large, multilocation entity will cost much more than that of a small, single-location organization. Large organizations have more networks, documentation, and policies to assess against NIST SP 800-171, while smaller businesses have fewer in-scope assets. A large organization may also have a greater number of supply chain partners that need to comply with CMMC.
As stated in the final rule, CMMC requirements flow down to subcontractors that process, store, or transmit CUI. Prime contractors are responsible for ensuring subcontractors comply with these requirements. Part of that responsibility may include creating new documentation to share with partners or establishing a process to monitor their compliance — and these steps require time and resources.
Regardless of organization size, businesses must confirm their assessment scope before an official CMMC assessment can occur. Determining all the assets that are in scope for CMMC can be challenging and may require the support of a consultant. At Business Transformation Institute, Inc. (BTI), our consultants will help you determine and understand organizational assets in scope for CMMC as part of the preparation for an assessment.
How well is your business currently prepared to comply with CMMC? If your organization already has a strong cybersecurity posture that meets NIST SP 800-171 requirements, you may not need to invest in additional tools, software, and training to prepare for an assessment. In such a case, CMMC implementation probably won’t impact your bottom line too much, though you’ll still need to cover the cost of an assessment and save resources for ongoing maintenance.
By contrast, if your business is just getting started, you may still need to establish a robust security framework. In other words, you may need to invest in various technological controls, employee training, or an in-house IT team to get your cybersecurity up to par. Depending on your needs, getting where you need to be could cost thousands of dollars. An experienced consultant can help you make impactful, cost-effective choices that will lead your business in the right direction.
You’ll discover that some CMMC service providers cost more than others — which can affect your overall CMMC certification cost. However, we encourage you not to base partnership decisions on price alone. Even if your organization doesn’t work with the DoD directly, it’s vital to choose CMMC partners authorized to handle sensitive information if there’s any chance that such information could be exposed.
The least expensive options may be less qualified to work with sensitive information, which can put your organization at risk of a cybersecurity incident. Working with the lowest-cost service provider may also lead you to discover that they aren’t qualified to assist you with a particular security control due to data sensitivity, leading to wasted time and money. Lastly, the cheapest option likely doesn’t have the expertise and experience to streamline CMMC implementation, which can increase costs in the long run.
For the above reasons, it’s recommended to partner with providers who offer extensive cybersecurity experience, have proven CMMC expertise, and are authorized to handle highly sensitive information. Though a high-quality consultant or assessor may bring higher fees, it’s likely worth the extra expense if you want the best results and long-term savings.
At BTI, we’ve provided expert CMMC services since the DoD launched the program and have written key components of the model ourselves. Additionally, our team members have real-world experience implementing cybersecurity controls and CMMC, bringing technical expertise to our consulting, assessing, and training services.
We understand the challenges organizations face in navigating complex regulations, identifying gaps, and remediating vulnerabilities efficiently. As a business that cares about its partners’ success, we are dedicated to helping our clients get on a clear, practical path to compliance and providing reliable information along the way.
CMMC compliance at any level is achievable with expert support and guidance. We offer various CMMC compliance services tailored to your needs to get your organization on the right track efficiently and cost-effectively.
Unlike our competitors, we are authorized to work with information at the highest levels of government sensitivity. You can be confident we’re capable of helping your organization reach its CMMC certification goals.
Whether you need a high-quality C3PAO, experienced CMMC consultant, or Approved Training Provider, we can assist you. Contact us today.
