If you’re targeting Department of Defense contracts, Cybersecurity Maturity Model Certification (CMMC) details the IT security requirements that make you eligible. The certification opens your business up to lucrative opportunities, gives you an edge over uncertified rivals, and lowers your company’s susceptibility to cyberattacks.
But how much does CMMC compliance cost? Consulting fees, technical resources, third-party assessments — you want to consider all costs for better planning and resource allocation. So, let’s start from the beginning.
What Is CMMC?
CMMC is a cybersecurity standard that the Department of Defense (DoD) uses to evaluate businesses’ ability to protect sensitive data in the defense industry. With CMMC, the government aims to protect sensitive information, such as controlled unclassified information and federal contract information, that businesses working with the DoD handle.
Today, CMMC divides certification levels into three:
- Level 1 (Foundational): Focuses on safeguarding Federal Contract Information (FCI) through basic cybersecurity practices specified in FAR Clause 52.204-21.
- Level 2 (Advanced): Establishes protection of Controlled Unclassified Information (CUI) through enhanced cybersecurity practices highlighted in NIST 800-171.
- Level 3 (Expert): Ensures robust protection of controlled unclassified information against advanced persistent threats (APTs) through continuously optimized cybersecurity measures specified in the NIST SP 800-172.
Who Is Required To Be CMMC Certified?
If you’re a business in the DoD supply chain, you are mandated to obtain CMMC certification. This mandate extends to all organizations within the defense industrial base ecosystem, spanning:
- Defense contractors
- Aerospace manufacturers
- Information technology providers
- Engineering firms
- Cybersecurity service providers
If your business fails to comply with CMMC certification, you lose eligibility for DoD contracts, impacting your company’s revenue opportunities. Besides, you’ll lose a competitive edge because potential clients in the defense sector won’t be able to work with you.
How Much Does CMMC Cost?
The DoD recently provided a cost estimation for implementing the CMMC, depending on company size and the cybersecurity maturity level you want to be certified for. According to the Federal Register estimates:
- Level 1 self-assessments cost approximately $4,000 and $6,000 annually
- Level 2 self-assessments cost between $37,000 and $49,000 every three years
- Level 2 certification assessment conducted by a third party costs between $105,000 and $118,000
- Level 3 certification assessment involves the same cost as Level 2 plus the expenses of implementing security requirements specific to Level 3, an additional $41,000
Assessment costs within a level vary depending on your business size and current cybersecurity practices. In addition to assessment costs, expect to spend on activities related to achieving and maintaining compliance.
Factors Determining the Total Cost of Compliance
The total amount you’ll spend varies depending on:
- Your company size
- Your current state of cybersecurity maturity
- Additional tools or infrastructure upgrades you need for CMMC compliance
- The type of assessment you need
The table below can help you estimate the total CMMC certification costs.
| Compliance Activity/Tool | CMMC Level 1 Cost | CMMC Level 2 Cost | CMMC Level 3 Cost |
| Certification assessment | $4,000 – $6,000 annually | $105,000 – $118,000 per three years | Level 2 costs + $41,000 |
| Hiring a registered practitioner for gap analysis (optional) | Average $50 – $75 per billable hour, 30 – 40 hours | Average $50 – $75 per billable hour, 50 -100 hours | Average $50 – $75 per billable hour, 100 – 200 hours |
| Gap remediation | Varies depending on implementations required to fill available security gaps in your cybersecurity practices | Varies depending on implementations required to fill available security gaps in your cybersecurity practices | Varies depending on implementations required to fill available security gaps in your cybersecurity practices |
| Maintenance | Expenses of continuous monitoring, regular updates, annual employee training | Expenses of continuous monitoring, regular updates, and regular employee training between triennial assessment | Costs of continuous monitoring, regular updates, regular employee training between triennial assessments, and managed security provider |
While you can rely on in-house compliance management, you want to account for time and productivity lost in activities like:
- Evaluating cybersecurity practices
- Reviewing evidence
- Documenting findings
- Preparing final reports
CMMC Allowable Cost
Allowable costs are expenses that the DoD can reimburse when performing contracts that require compliance with CMMC standards. These costs must directly relate to meeting CMMC compliance requirements as defined by the Federal Acquisition Regulation (FAR) Part 31.
As you execute the DoD contract, you can allocate allowable costs as follows:
- Cybersecurity investments: Include expenses for IT security tools you implement to be CMMC compliant, such as the purchase of a firewall to protect CUI
- Staff training: Cost of training employees on securing networks and adhering to CMMC standards
- Compliance audit: Include third-party audit fees to verify compliance with CMMC
- Infrastructure enhancement: Highlight costs for infrastructure upgrades to meet compliance.
Steps To Ensure Compliance With Government Reimbursement Policies
To qualify for reimbursement, follow these steps:
- Identify and document relevant costs. If unsure, consult FAR guidelines to ensure all your documented costs qualify for reimbursement.
- Keep all cybersecurity-related records for easy review and audits.
- Stay up-to-date on changes to FAR or DoD policies that might affect costs considered allowable for compliance.
The best practice is to exclude non-allowable expenses, such as general office supplies, that you can’t link to CMMC compliance efforts.
How To Get CMMC Certified
The steps you take to get CMMC certified can vary depending on your current cybersecurity practices. The more advanced your security posture, the less of the following steps you’re likely to follow.
Step 1: Conduct a self-assessment according to NIST 800-171 standards to identify gaps.
Step 2: Prepare documentation and improve cybersecurity controls based on areas of weaknesses you identified.
Step 3. Choose which maturity level you’d like your business to achieve.
Step 4: Undergo an official audit by a CMMC Third Party Assessor Organization (C3PAO).
You’ll earn CMMC certification after fixing any issues you uncover in the assessment process. The time it takes to achieve CMMC depends on the level of certification you want and your existing security posture. However, on average, it takes between 9-12 months to achieve compliance.
Maximize Efficiency While Managing Your CMMC Compliance Costs
CMMC compliance can be expensive, even though it’s a requirement if you want to continue doing business with the DoD. But with proper planning, preparation, and correct implementation of the requirements, you can keep the costs manageable.
At Trava Security, we help you navigate every step of the CMMC process to effectively manage compliance costs. Our team of experts will guide you in meeting all CMMC requirements to avoid losing a DoD contract or facing fines. Speak with a compliance expert today to learn how we can help.