The Department of Defense has unveiled fresh cost estimates for defense contractors and organizations looking to implement the Cybersecurity Maturity Model Certification (CMMC) program. Published in the Federal Register, these new projections are part of the proposed CMMC 2.0 rule.
CMMC 2.0 mandates that defense contractors handling federal contract information (FCI) or controlled unclassified information (CUI) meet specific cybersecurity standards. Depending on the information’s sensitivity, contractors must undergo either self-assessments or evaluations by third-party organizations, known as C3PAOs.
This program, which affects over 200,000 companies in the defense industrial base, is set for a phased implementation. By October 1, 2026, all applicable defense contracts will require CMMC compliance. However, waivers may be available before then.
Cost Breakdown for CMMC Compliance:
Level 1 Cybersecurity Maturity Model Certification (CMMC)
The cost of achieving this certification level can vary significantly depending on the size of the business, existing cybersecurity infrastructure, and external consulting or auditing needs. Here’s a general breakdown of potential costs for small and large businesses:
1. Small Businesses (10-50 Employees):
- Initial Assessment & Gap Analysis: Small businesses often need an initial assessment to determine the gaps in their cybersecurity controls. This could cost around $3,000 – $10,000 depending on complexity.
- Internal Labor Costs: If the company has IT staff or outsourced IT support, internal time spent preparing for certification, training, and implementing controls may cost an additional $5,000 – $20,000.
- External IT Consulting Services: Small businesses may hire external consultants to implement technical controls or provide training. This could add $5,000 – $15,000.
- CMMC Level 1 Assessment/Certification: The official CMMC assessment for Level 1, performed by a certified third-party assessor organization (C3PAO), typically ranges from $3,000 – $6,000.
Total Estimated Cost for Small Businesses: $10,000 – $50,000
2. Large Businesses (100-500+ Employees):
- Initial Assessment & Gap Analysis: Larger businesses will have more systems and processes to evaluate, leading to higher costs for an assessment and gap analysis, typically ranging from $10,000 – $30,000.
- Internal Labor Costs: With more staff and more complex systems, the internal cost of preparing for CMMC Level 1 could be around $30,000 – $100,000, depending on the size and resources.
- External Consulting Services: Large organizations often hire external experts to assist with compliance, especially if they have a more complex IT infrastructure. This may cost $25,000 – $100,000.
- CMMC Level 1 Assessment/Certification: The actual certification process for large businesses typically costs more due to the scale and complexity, with assessments costing around $10,000 – $20,000.
Total Estimated Cost for Large Businesses: $75,000 – $250,000
Key Factors Influencing Costs:
- Pre-existing cybersecurity controls: If a business already has strong cybersecurity measures in place, costs will be lower.
- Complexity of IT systems: More complex or larger IT infrastructures require more extensive assessments and adjustments.
- Use of in-house vs. outsourced resources: In-house expertise can lower external consulting costs, while outsourcing may add to the total expense.
- Certification Body: Costs can vary slightly depending on the C3PAO conducting the certification.
These estimates are ballpark figures, as actual costs will depend on each business’s unique situation and the service providers they engage.
Level 2 Cybersecurity Maturity Model Certification (CMMC)
The cost of achieving this certification level is significantly higher than Level 1 due to the increased number of security controls (110 for Level 2 compared to 17 for Level 1) and the need for more mature cybersecurity practices. Here’s a general breakdown for both small and large businesses:
1. Small Businesses (10-50 Employees):
- Initial Assessment & Gap Analysis: Small businesses will need to undergo an extensive assessment to identify gaps in meeting the 110 security controls required for Level 2. This typically costs $5,000 – $15,000.
- Internal Labor Costs: Significant internal time is required for implementing and documenting practices, such as multi-factor authentication, endpoint protection, and data encryption. Internal labor costs may range from $20,000 – $50,000.
- External Consulting Services: Due to the complexity of Level 2, many small businesses rely on external consultants to implement technical controls, provide security awareness training, or assist with documentation. This could cost between $15,000 – $40,000.
- CMMC Level 2 Assessment/Certification: The certification process is more thorough than Level 1, and the cost of a formal CMMC Level 2 assessment by a C3PAO ranges from $10,000 – $20,000.
- Cybersecurity Tools and Solutions: Additional costs will be incurred for cybersecurity tools and technologies (e.g., SIEM systems, encryption software, vulnerability management). These costs vary but could range from $5,000 – $30,000 depending on existing infrastructure.
Total Estimated Cost for Small Businesses: $50,000 – $150,000
2. Large Businesses (100-500+ Employees):
- Initial Assessment & Gap Analysis: Larger companies require more in-depth and time-consuming assessments due to their complex IT environments. This could cost anywhere from $20,000 – $50,000.
- Internal Labor Costs: Larger organizations will need dedicated teams to manage compliance, potentially involving departments such as IT, compliance, and legal. Internal labor costs can be significant, ranging from $50,000 – $200,000 or more.
- External Consulting Services: External consulting fees are higher for large businesses due to the complexity of their systems. External consultants may charge $50,000 – $150,000 to assist with compliance, documentation, and implementation of cybersecurity solutions.
- CMMC Level 2 Assessment/Certification: The cost of the assessment for large companies is typically higher due to the scope of the review and the number of systems involved. This might range from $20,000 – $50,000.
- Cybersecurity Tools and Solutions: Large organizations may need to invest heavily in advanced cybersecurity tools, such as Security Information and Event Management (SIEM) systems, data loss prevention (DLP), endpoint detection and response (EDR), etc. These tools and associated implementation may cost $30,000 – $200,000 or more, depending on the size and complexity of the business.
Total Estimated Cost for Large Businesses: $150,000 – $500,000
Key Factors Influencing Costs:
- Current cybersecurity posture: Businesses with strong existing security frameworks (e.g., NIST 800-171 compliance) will incur lower costs, as many of the requirements overlap.
- Third-party assistance: Small businesses often rely more heavily on consultants, which increases costs. Larger organizations may have more in-house capabilities but will still face higher costs due to scale.
- Technology investment: The need for new or upgraded cybersecurity tools can drive up costs, especially for advanced solutions required for Level 2 compliance.
- Documentation and process maturity: A significant part of CMMC Level 2 compliance involves documentation of processes and practices, which can add to labor and consulting costs.
These cost estimates are intended to provide a general idea, but actual costs can vary depending on each organization’s starting point, industry, and specific needs for compliance.
CMMC Raises the Bar for DoD Contractors
With the new CMMC requirements, Department of Defense contractors face higher cybersecurity standards. Preparing for compliance can seem daunting, but Intech Hawaii simplifies the process.
We begin by calculating your NIST 800-171 self-assessment score, helping you understand where you stand. Next, we assess the specific steps needed to meet CMMC compliance. Finally, we create and execute a comprehensive plan to get your organization fully prepared for certification. Contact us to see how we can help you.
