The DoD’s CMMC Final Rule becomes effective on December 16, 2024, and requires organizations who handle CUI to achieve CMMC Level 2 Certification, which will require an independent assessment every 3 years by a C3PAO (CMMC Third Party Assessment Organization).
The DoD estimates the cost of these assessments will exceed $100,000, plus the cost of any technology. However, our survey of over 2,000 defense contractors revealed that 70% of them budgeted less than that, underscoring a significant gap.
This guide helps defense contractors understand compliance costs and provides six actionable strategies to cut expenses at each stage of the CMMC process.
DoD CMMC Level 2 certification cost estimates
Over 95% of contractors seeking CMMC Level 2 certification will need to undergo a formal 3rd party CMMC assessment by a C3PAO. The DoD estimates that small defense contractors will need to spend over $100K to achieve CMMC Level 2 with a C3PAO assessment, and submit annual affirmations of compliance, as shown below.
DoD CMMC Level 2 Certification and Cost Estimates
for small defense contractors with <500 employees or revenue <$7.5 m (source)
These cost estimates include time spent by both in-house IT specialists and External Service Providers (ESPs) such as Registered Practitioners (RPs), Certified CMMC Assessors (CCAs), and C3PAOs.
These cost estimates start at the C3PAO assessment phase and do not include any costs up to that point. That’s because defense contractors have been required to comply with NIST SP 800-171—which CMMC Level 2 requirements mirror—since 2017. Therefore, DoD doesn’t consider NIST SP 800-171 compliance technologies or documentation a new expense.
How to reduce CMMC level 2 certification costs
While costs to achieve NIST 800-171 compliance will vary by company size and maturity, organizations can achieve compliance more efficiently and affordably by deploying the proven strategies listed below:
1. Reduce your compliance boundary
If only a portion of your organization handles CUI, then it makes sense to narrow the scope of the security requirements by creating a separate enclave. A smaller scope means a simpler assessment, which significantly reduces costs. Unlike GCC High, which often requires deployment organization-wide, PreVeil can be used in just the enclave, saving costs and reducing complexity.
The importance of scoping
“One of the key things you have to figure out to make you successful with CMMC is scoping. Get your scope figured out and don’t include systems that are outside your scope. You’re just creating more work for yourself that you don’t need to do. –Paul Miller @Virtra”
How PreVeil addresses: PreVeil can be easily deployed to an enclave, reducing your compliance and saving you time and money.
2. Select an Easy-to-Deploy Platform to Protect CUI
Choosing a compliant, user-friendly platform simplifies deployment and minimizes training costs. GCC High often requires a complete overhaul of IT systems, making implementation costly and complex.
How PreVeil addresses: PreVeil can be deployed in hours, uses your existing email address and is easy for your team to use since it integrates directly with the tools you’re already using, like Outlook, Gmail, File Explorer and MacFinder.
3. Deploy a solution with proven CMMC credentials
If your organization has migrated to the cloud, know that services such as Microsoft 365 Commercial and Gmail do not meet CMMC requirements for storing, processing and transmitting CUI. Choose a solution that has proven CMMC credentials to avoid retroactive fixes, which can be costly and time-consuming.
How PreVeil addresses: Over a dozen PreVeil customers have achieved CMMC compliance- validated by a perfect 110 score on their C3PAO or DoD assessment. PreVeil is used by over 1,200 defense contractors and provides a comprehensive solution to expedite CMMC compliance. In addition through a combination of inherited and shared controls, PreVeil supports over 90% of the NIST SP 800-171 security controls (102 of the 110). Read about how we meet CMMC requirements here.
4. Leverage Pre-Filled Compliance Documentation
Passing an assessment requires contractors to provide detailed, evidence based documentation clarifying how the controls are addressed within their company. This can be a daunting, time-consuming and costly task.
How PreVeil addresses: PreVeil’s proven Compliance Accelerator provides pre-filled documentation for the System Security plan (SSP), Standard Operating Procedures (SOP), POAM worksheet and more and cuts documentation work by 60%. In addition, we add walkthrough videos with C3PAOs and 1×1 support if you get stuck.
5. Leverage certified consultants who are familiar with your technology
Many organizations lack the internal security expertise to accurately self-assess their environment. Outside partners can save time and money if you get stuck and need help.
How PreVeil addresses: PreVeil has built a partner network of C3PAOs, Registered Practitioners, MSPs, and other consultants and organizations certified by the Cyber AB that have expert knowledge of DFARS, NIST, CMMC and PreVeil. This coordinated access streamlines your engagement because no time is spent learning how PreVeil supports compliance.
6. Create a reasonable timeline that matches your budget
Once defense contractors have protected CUI, prepared their documentations, completed a self-assessment, and uploaded their SPRS score, the next step is to schedule their C3PAO Level 2 assessment. Assuming you have a score of 88 and the remaining controls are acceptable POAMs, you can take some time before completing the assessment. This may allow you to use next year’s budget, for example. Just note that the DoD has the authority to audit your organization at any time.
The PreVeil solution
PreVeil is the leading solution for NIST 800-171 and CMMC Level 2 compliance and is trusted by more than 1,200 small and midsize defense contractors. To date, over a dozen defense contractors and C3PAOs have used PreVeil to achieve CMMC compliance with a perfect 110 score on their C3PAO/ DoD assessment.
Learn more about how PreVeil can help your organization achieve CMMC Level 2 compliance faster and more affordably. Get a custom quote for your organization.