From Payam PourkhomamiPresident and CEO of OSIbeyond

The requirements for Cybersecurity Maturity Model certification are here, and the clock is ticking for affected organizations. According to the Ministry of Defense estimatesBeginning in Q1 2025, all new DOD contracts will require a CMMC Level 1 or 2 pre-award self-assessment. By Q3 2027, CMMC requirements will be included in all solicitations and contracts.

With deadlines approaching, all defense industry organizations should consider CMMC assessment and certification – not only in terms of technical requirements or implementation timelines, but also the costs involved.

After all, you don’t want to encounter an unpleasant financial surprise and end up in a bind along the road to compliance. In this article, we’ll break down the cost of CMMC assessment and certification to give you a rough idea of ​​what to expect depending on your current situation.

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Costs for preparing for the CMMC assessment

The total cost for CMMC Compliance is determined by two main factors: how much it costs to prepare an organization for a CMMC assessment and how much a CMMC Third-Party Assessment Organization (C3PAO) charges for the actual certification.

Let’s start by breaking down the cost factors associated with preparing for an appraisal. These may be limited to a few tens of thousands of dollars for confirmation that all requirements are already met, but for large organizations that need to close extensive gaps in their cybersecurity, they can also be in the six or even seven figures.

Existing cybersecurity situation

Your organization’s current cybersecurity maturity level plays an important role in determining preparation costs.

Organizations that already have a robust cybersecurity framework in place, particularly those that comply with NIST SP 800-171, can expect lower preparation costs. These organizations may only need to optimize their existing practices and documentation.

On the other hand, companies that start from scratch or have minimal cybersecurity measures in place incur higher costs. These costs may include implementing new security controls, developing new policies and procedures, and training employees.

The CMMC target level

The CMMC level your organization wants to achieve directly impacts the preparation costs, as higher levels require more security measures (both in terms of quantity and complexity):

• CMMC Level 1: The first level focuses on basic cybersecurity hygiene and the protection of Federal Contract Information (FCI) and includes 17 practices derived from Federal Acquisition Regulation 52.204-21.
• CMMC Level 2: The second level introduces more advanced techniques for protecting Controlled Unclassified Information (CUI) and includes all 110 security requirements specified in NIST SP 800-171 Rev 2.
• CMMC Level 3: The third level builds on Level 2 by requiring full implementation of the controls of NIST SP 800-171 Rev. 2 as well as additional practices derived from NIST SP 800-172.

Given the impact of the CMMC target level on preparation costs, it is in every organization’s best interest to strive for that level.

To make an informed decision, we strongly recommend conducting an internal audit to understand exactly what type of information (FCI or CUI) is being handled and how it is processed, stored and transferred within your systems. This audit should also identify which employees have access to confidential information and how it flows through your supply chain.

Size and complexity of the organization

The size and complexity of your organization will significantly affect preparation costs. The following variables are particularly important:

• Geographical distribution of business activities: Organizations with multiple locations or remote employees face additional challenges because they must implement consistent security measures across all locations.
• Number of employees: A larger workforce typically means more users, devices, and data to secure, which can make CMMC requirements more difficult to implement. Training and managing a larger number of employees to comply with cybersecurity practices also increases overall costs.
• Variety of IT systems and applications: A more diverse IT ecosystem leads to greater complexity in implementing unified security controls, increased potential for security vulnerabilities at integration points, and higher costs for specialized security solutions for different platforms.
• Relationships with subcontractors: Contractors who rely on subcontractors must ensure that these external entities also meet CMMC requirements, which can make the preparation process more complex and expensive.

It goes without saying that larger organizations with more complex operations typically face higher costs to achieve CMMC compliance. However, costs do not necessarily increase linearly with size. Economies of scale and efficient internal processes can help larger organizations control and optimize their compliance spend.

CMMC certification costs

In addition to the costs associated with preparing for a CMMC assessment, companies must also consider the actual cost of certification. These costs vary depending on the CMMC level and type of assessment required.

CMMC Level 1 Certification Costs

For CMMC Level 1, organizations perform a self-assessment, so there are no direct costs for third-party certification. The main cost is the time required for internal staff to conduct the assessment and submit the results. Based on the Ministry of Defense estimatesThis is approximately:

These costs primarily cover the personnel costs for planning and conducting the self-assessment, reporting the results and providing the necessary confirmations.

CMMC Level 2 Certification Costs

The cost of CMMC Level 2 certification depends on whether an organization is eligible for self-assessment or requires a third-party assessment.

For organisations eligible for Level 2 self-assessment, the estimated costs are:

These costs also mainly cover the working time of internal staff in the various evaluation phases.

If Level 2 requires a third-party assessment, the costs increase dramatically:

These increased costs relate to both the time spent by internal staff and the fees charged by the C3PAO to conduct the assessment, which could increase significantly in the future as there is currently an imbalance between supply and demand for CMMC assessments.

At the time of writing this article, there are only 56 C3PAOs listed with Cyber ​​​​AB (formerly CMMC Accreditation Body), with an additional 243 C3PAO candidates in preparation. However, it is estimated that over 80,000 organizations will require CMMC Level 2 certification.

CMMC Level 3 Certification Costs

CMMC Level 3 requires the most stringent assessment and is associated with the highest costs:

• $39,000 per assessment for organisations that are not small businesses, and 21,100,000 USD with one-off engineering costs and 4,120,000 USD in recurring development costs.
• Costs for small companies aiming for Level 3 are not provided, as this level is expected to apply only to a small subset of larger defense companies.

It is important to note that Level 3 certification builds on Level 2, so companies must consider the total costs of both levels.

Compliance: Ongoing costs

Obtaining certification for the first time is just the beginning of the journey to CMMC compliance. Maintaining compliance over time is another potentially costly challenge that organizations must prepare for.

As your IT infrastructure naturally evolves to meet growing and changing business needs, someone needs to ensure it continues to meet CMMC requirements. Here you have two main options: in-house staff or a CMMC-certified managed service provider (MSP).

Internal compliance management

If you choose to manage CMMC compliance in-house, you will need to dedicate significant resources to this task. You will need to hire at least one full-time employee focused on cybersecurity and compliance. Given the expertise required, the salary for such a position could easily reach $150,000 per year or more.

In addition, the ongoing shortage of cybersecurity talent can make it difficult to find qualified candidates for this role. According to the World Economic ForumThe global cybersecurity industry urgently needs four million professionals to close the talent gap. This shortage is not only driving up salaries but also making it difficult to find and retain qualified cybersecurity professionals.

Partnership with a CMMC-certified MSP

Given the challenges of internal compliance management, many companies find working with a CMMC-certified managed service provider to be more cost-effective and efficient.

This gives you access to specialists who are always up to date with CMMC requirements and best practices, can scale with your business growth without additional staff, and continuously provide you with best-in-class cybersecurity solutions.

At OSIbeyond we offer Comprehensive cybersecurity and compliance services tailored to the needs of organizations in the DIB. As a CMMC Registered Provider Organization (RPO), authorized by Cyber ​​AB, we have the qualifications and expertise to help your organization become CMMC audit-ready and maintain compliance after certification.

Our services include CMMC readiness assessments, gap analysis and remediation planning, implementation of required security controls, development of documentation and policies, ongoing compliance management and monitoring, and employee training and awareness programs.

Diploma

Understanding the cost of CMMC assessment and certification can be challenging in itself, but it is always better to be prepared than to be faced with unexpected expenses. If you are still unsure of how CMMC might affect your company financially, do not hesitate to Contact us at OSIbeyondOur team of experts can help you determine the cost of your specific assessment and certification based on your individual situation.

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