CMMC COST CONSIDERATIONS
Questions to Ask Before Seeking CMMC Certification
If you're a small to medium-sized business within the Department of Defense (DoD) supply chain, you need to be aware of the imminent CMMC 2.0 certification requirements. This is neither a cheap nor quick undertaking; costs can reach five to six figures, and the process may take between 9 to 18 months to complete. CMMC 2.0 is starting as soon as the end of 2024 and fully mandated in 2027.
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Here is a list of questions you will need to ask yourself and your team:
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Do we understand the requirements of CMMC 2.0?
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Have we thoroughly reviewed the CMMC framework and its specific requirements for our industry and company size?
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What level of CMMC certification do we need?
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Which level of certification (Level 1-3) is required for our contracts and future business opportunities?
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This depends on if you handle FCI (Federal Contract Information) and/or CUI (Controlled Unclassified Information).
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What is our current cybersecurity posture?
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Have we conducted a gap analysis to determine our position in relation to the required CMMC practices and processes?
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What resources do we need?
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Do we have the necessary internal expertise, or do we need to hire external CMMC consultants or a managed service provider (MSP)?
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What are the costs involved?
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What are the anticipated costs for achieving and maintaining CMMC certification, including technology upgrades, consulting fees, and ongoing compliance costs?
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This is not a one-and-done process; it requires yearly assessments and expenses.
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How will this affect our operations?
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What impact will the changes required for CMMC compliance have on our daily operations and overall business processes?
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What is our timeline?
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How long will it take to prepare for and achieve CMMC certification, and how does this fit with our contract deadlines and business goals?
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Who will be responsible for compliance?
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Who within our organization will champion the CMMC compliance effort, and how will responsibilities be allocated?
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What is our risk management strategy?
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How will we handle potential risks and challenges associated with achieving and maintaining CMMC certification?
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Who will maintain compliance?
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What processes will we implement to ensure ongoing compliance and continuous improvement in our cybersecurity posture?
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What are the potential benefits?
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How will achieving CMMC certification benefit our business in terms of new opportunities, customer trust, and competitive advantage?
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How will we communicate our efforts?
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How will we inform our employees, customers, and stakeholders about our CMMC compliance efforts and their importance?
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How will we document our proof of compliance?
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As auditors often say… “If it isn’t documented, it didn’t happen.” Therefore, documentation is critical and needs to be organized by the various compliance objectives and specific control areas.
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Is the volume of DoD contracts sufficient to justify the investment in CMMC certification?
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Your Management team will need to ask whether the volume of DoD business justifies the high investment in CMMC certification. Things to consider:
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Assessment of Current DoD Contracts:
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Volume and Value Analysis: Review the total value of your existing business, including past performance and future projections.
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Revenue Contribution: Determine the percentage of your company's related revenue. A higher percentage indicates a greater reliance on certification.
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Cost-Benefit Analysis:
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Certification Costs: Calculate the total costs associated with obtaining CMMC certification. If you are already compliant with NIST SP 800-171, this will greatly reduce your cost of CMMC implementation. This includes initial assessment fees, implementation costs, potential upgrades to systems and processes, staff training, and ongoing maintenance.
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Potential Revenue Loss: Consider the potential revenue loss if your company fails to obtain CMMC certification and cannot bid on future DoD contracts. We were talking with one company, and they said their DoD-related work was only 10% of their total work, but it represented 90% of their annual revenue, so compliance is a must.
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Return on Investment (ROI): Compare certification costs with the potential revenue gained from retaining and winning new DoD contracts.
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Strategic Importance:
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Market Positioning: Assess how critical DoD contracts are to your company’s market position and growth strategy. If DoD contracts are central to your strategic goals, investing in CMMC certification may be crucial.
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Competitive Advantage: Evaluate whether having CMMC certification will provide a competitive advantage in winning more DoD contracts or even contracts from other federal or commercial customers who value high cybersecurity standards.
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Risk Management:
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Cybersecurity Risks: Consider the risks associated with not having robust cybersecurity measures. The CMMC certification, especially the NIST 800-171 component, can mitigate risks related to data breaches and cyberattacks, which could have severe financial and reputational impacts.
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Regulatory Compliance: Consider any upcoming regulations that might require similar levels of cybersecurity requirements. Being proactive in ongoing cybersecurity compliance will be beneficial in the long term.
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Long-Term Business Impact:
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Sustainability: Analyze whether the investment in CMMC certification aligns with your company’s long-term sustainability goals and business continuity plans.
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Future Opportunities: Consider the potential for new business opportunities that CMMC certification might open, including partnerships and contracts beyond the DoD that require stringent cybersecurity measures and protection of customer data.
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Consultation with Stakeholders:
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Management Input: Discuss with your management team for input and support. This includes understanding their risk tolerance and strategic vision for the company. You must have the full support of management for this effort to be successful.
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Customer Feedback: Engage with key customers to gauge their views on the importance of CMMC/NIST certification and how it might impact your business relationships.
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Answering these questions can help your company develop a clear plan and strategy for achieving CMMC certification.
Act Now: Secure Your Future in the Growing Defense Industry Business
Don’t wait until it’s too late. The CMMC certification is more than just a requirement; it’s a prerequisite to securing your current and future business in the defense industry. The stakes are high, but so are the rewards. Bluestreak Compliance™ will partner with you to streamline and successfully complete this process, ensuring you achieve CMMC certification efficiently and effectively. The time to act is now—secure your contracts, enhance your cybersecurity, and position your business for long-term success in the defense sector.
At Bluestreak Compliance™, we recognize the challenges you may encounter on your journey to compliance. Download our Free Compliance eBook to gain valuable insights into compliance management and help yourself become eligible for future DoD and downstream service-based contracts.
Bluestreak Compliance™ provides affordable and effective compliance solutions for small and mid-sized businesses (SMBs). Our services, delivered by CMMC Registered Practitioners (RP) and CMMC Registered Practitioners Advanced (RPAs), are designed to help your company achieve compliance through our proven methods. We offer tailored support, whether leading your project or collaborating with your Project Manager. Partner with Bluestreak Compliance™ for answers to your cybersecurity, DFARS, NIST SP 800-171, and CMMC 2.0 questions.
Check out my article in Cyber Defense Magazine: DoD Compliance: The Differences Between CMMC and NIST SP 800-171
Also, my latest article in Heat Treat Today: Top 10 Myths Of CMMC & NIST SP 800-171
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