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Disclaimer: This article was originally published in May 2023 and has since been updated to reflect current CMMC guidelines.
CMMC compliance costs vary based on your company size, current security setup, the urgency of your need, and the CMMC level you require. There is no set price, and every defense contractor starts from a different place.
With the final rule set on December 16, 2024, DoD contractors now require CMMC certification.
Contractors who handle Federal Contract Information (FCI) or Controlled Unclassified Information (CUI) must get certified. Without it, you cannot win or keep DoD contracts.
Intelligent Technical Solutions (ITS) has over 20 years of experience helping defense contractors. As a CMMC Registered Practitioner, ITS Chief Security Risk Officer, Sean Harris, shares his knowledge of what companies pay for certification.
This article uncovers factors that affect CMMC compliance costs. We’ll walk you through topics such as:
After you're done reading, you'll know how to budget for your certification.
What Drives CMMC Compliance Costs?
Not knowing what affects CMMC compliance costs makes it impossible to know its accurate pricing.
As Harris puts it: "It's like if you wanted me to renovate your house, and you're just sending me emails asking how much time and money it will take to bring my house to the latest building code standard."
Considering this, below are some factors that affect CMMC costs:
Company Size
Bigger companies pay more because they are more complex. A company with 20 employees has fewer computers and systems than a 200-person company.
Putting it into perspective:
- Small businesses might spend $15,000 to $50,000 for Level 1.
- Mid-sized companies often spend $75,000 to $200,000 for Level 2.
- Large companies might spend over $500,000 for Level 3.
Certification Timeline
Companies with sound IT systems need one to three months for Level 1, three to six months for Level 2, and 12 months or more for Level 3.
Conversely, fast timelines cost more.
Rush jobs that require starting from scratch with a tight deadline can double or triple your costs. In these situations, providers require extra staff and work overtime.
Required Certification Level
Each CMMC level protects different types of data. According to the Federal Register:
- Level 1 has 15 basic controls required by FAR clause 52.204-21.
- Level 2 has 110 security rules from NIST SP 800-171.
- Level 3 adds 24 more rules from NIST SP 800-172.
Higher levels need more security work, paperwork, training, and monitoring, which raises costs.
Related: How to Improve Your CMMC Maturity Level (6 Best Practices)
Current Security Setup
Your current security is the most significant cost factor.
Companies with current security tools, regular updates, and good backups face fewer problems and spend much less. Meanwhile, companies that ignored security face considerable catch-up costs.
Harris shared this story: "We had a client that originally self-assessed with a score of 88, but after doing a thorough gap assessment, we found they were actually at negative 30."
This scenario shows that, although companies often think they're more ready than they are, professional gap checks matter for budgeting.
What Costs Keep Going After Certification?
CMMC also requires an ongoing budget after your initial certification. As a DoD contractor, here are some costs you can expect to incur once you get certified:
Yearly Checks and Maintenance
Plan for $10,000 to $50,000 each year for ongoing maintenance. The amount depends on company size.
The yearly checks per level are as follows:
- Level 1: yearly self-checks through the Supplier Performance Risk System (SPRS)
- Level 2: outside checks every three years, plus annual compliance checks
- Level 3: Level 2 checks and Defense Contract Management Agency checks every three years
Training and Technology Costs
Your staff must undergo comprehensive training on new security measures and how to respond to potential problems.
Companies typically spend between $5,000 and $25,000 annually on training and paperwork updates.
Oftentimes, you also need to buy security tools, which include login protection systems, encryption tools, and threat detection platforms.
Technology costs range from $20,000 to $150,000, depending on your specific needs.
Is CMMC Compliance Worth It?
Whether or not getting CMMC (Cybersecurity Maturity Model Certification) compliance is worth it depends on your specific situation and needs.
Certification is required for defense contractors who want DoD work. According to the Federal Register, contracting officers cannot award contracts without passing checks.
Getting Access to Contracts
CMMC certification opens doors to valuable defense contracts. Many prime contractors now want subcontractors to show compliance before teaming up on bids.
In line with this, Harris shared: "We have a partner that went with a SOC certification recently. They actually have a big client right now. Their client said, if you get this, we will give you this contract. And so, it was a very easy math problem for them. They went, 'Fine, let's do it.'"
He added: "And so, the costs are not that important. You want to make sure you're always getting the best value for your dollar, but it's in perspective of the business cost."
When certification unlocks a $5 million contract, spending $150,000 makes good business sense.
Better Security and Market Position
Beyond contracts, CMMC enhances your security. Data breaches can cost hundreds of thousands of dollars in fixes, legal fees, and reputation damage. Strong security prevents these costs.
Even companies not seeking DoD work benefit from strong cybersecurity. Additionally, clients in many fields check vendor security before awarding contracts.
Read: CMMC Compliance and MSPs: Do They Need It? (+ 8 Security Standards)
Are You Prepared for CMMC Compliance Costs?
CMMC compliance costs change based on your company’s size, timeline, certification level, and current IT setup. Working with experienced providers helps defense contractors budget effectively and obtain certification.
Intelligent Technical Solutions has over 20 years of managed IT experience, along with specialized knowledge in CMMC. Starting with a comprehensive gap check provides clarity to make informed decisions about your certification investment.
Ready to learn your actual CMMC costs?
Start your certification with a free cybersecurity assessment with ITS today. Our team will review your current security and provide a detailed price quote for your certification level.
Keep Learning About CMMC:
- What is CMMC and Does Your Business Need It?
- What Types of Businesses Need CMMC Compliance?
- Can You Perform a CMMC Self-Assessment?
Frequently Asked Questions About CMMC Compliance Costs
Q: How much does CMMC Level 2 cost for small businesses?
A: Small businesses with fewer than 50 employees usually spend $50,000 to $150,000 for Level 2. Costs change based on the current security setup and the specific issues that need to be addressed.
Q: Can I lower CMMC costs by hiring a company offering IT services?
A: Yes, hiring companies with managed IT services can handle tasks like writing policies and training staff. This can cut consulting fees by 20 to 40 percent.
Q: What if my company fails the CMMC check after paying for it?
A: Failed checks need issues fixed before trying again. This creates additional costs for repairs and new check fees, typically ranging from $10,000 to $50,000.
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