How Much Does CMMC Certification Cost?

Key Highlights

• CMMC 2.0 consists of three certification levels: Foundational (Level 1), Advanced (Level 2), and Expert (Level 3), each with increasing complexity and cost.
• The total cost of CMMC certification is broken down into four main categories: assessment costs, preparation costs, implementation costs, and maintenance costs.
• Assessment costs vary significantly by level, ranging from $5,000 for Level 1 self-assessment to potentially $4.1 million for Level 3 certification for larger organizations.
• Implementation costs can range from $20,000 to $60,000 for lower levels, while Level 3 recurring engineering costs can reach $21.1 million for larger organizations.
• Factors influencing certification costs include organization size and complexity, current cybersecurity posture, chosen CMMC level, and the use of internal versus external resources.

Understanding CMMC Certification

CMMC certification is a critical cybersecurity standard for the Defense Industrial Base (DIB) and defense supply chain organizations. It measures how well an organization can protect sensitive government information. Costs increase as maturity levels rise. The certification is based on NIST 800-171 but includes third-party assessment, making it more costly. The Department of Defense (DoD) estimates that over 300,000 organizations will be impacted by CMMC requirements, with most needing Level 1 to Level 2 certification.

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Understanding CMMC 2.0 Certification Levels

The CMMC 2.0 framework has a tiered approach to protect sensitive info in the Defense Industrial Base (DIB). This model consists of three levels, each tailored to address varying degrees of cybersecurity maturity. Organizations must navigate the requirements of their upcoming contract solicitations to find their required CMMC level and its costs.

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Level 1: Foundational

Level 1 is the entry point for CMMC certification, focusing on fundamental cyber hygiene practices. It’s designed for companies that handle Federal Contract Information (FCI) but not Controlled Unclassified Information (CUI).

The foundational level establishes a baseline for cybersecurity practices. Companies at this level typically deal with less sensitive information but still play a role in the defense supply chain. The requirements are simple. So, they suit small or new organizations in government contracting.

Key aspects of Level 1 include:

• Implementation of 17 practices from FAR 52.204-21
• Annual self-assessment requirement
• Suitable for companies with less complex cybersecurity needs

Organizations seeking Level 1 certification must demonstrate compliance with these basic security controls. Self-assessment lets companies evaluate their own practices without involving an external auditing organization. It may lower the cost and complexity of getting certified. However, this self-attestation involves maintaining accurate records and preparing for potential audits.

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Level 2: Advanced

Level 2 represents a significant leap in cybersecurity maturity, aligning with the National Institute of Standards and Technology (NIST) SP 800-171 standard. This level is mandatory for companies that handle Controlled Unclassified Information (CUI). It raises the bar for security practices and assessments.

The advanced level introduces a more rigorous set of security controls. These measures protect sensitive information from a wider range of threats. Organizations at this level are expected to have a more mature cybersecurity posture, with documented processes and regular assessments.

Notable features of Level 2 are:

• Implementation of 110 security practices
• Triennial third-party assessment of systems that handle critical national security information
• Annual self-assessment with senior official affirmation for select programs

The increased security requirements and practices at Level 2 reflect the higher stakes when handling CUI. These practices cover a broad spectrum of cybersecurity domains, from access control to incident response. Third-party assessments for critical programs add scrutiny. They ensure organizations meet the required standards.

The annual self-assessment with senior official affirmation for select programs introduces an element of accountability. This ensures top management knows and invests in the organization’s cybersecurity. It also bridges the self-assessment model of Level 1 and the more stringent government-led assessments of Level 3.

Level 3: Expert

Level 3 is the pinnacle of CMMC certification, designed for organizations working with the most critical defense programs and technologies. This level builds upon the foundation laid by Level 2, introducing additional security practices and more stringent assessment procedures.

Level 3 certified organizations have the highest cybersecurity maturity in the CMMC framework. These entities are entrusted with the most sensitive information and play critical roles in national defense supply chains. The requirements at this level are comprehensive and demanding, reflecting the potential consequences of a security breach.

Key elements of Level 3 include:

• Implementation of more than 110 security practices based on NIST SP 800-172
• Government-led assessments
• Tailored to protect the most sensitive, Controlled, Unclassified Information

The security practices at Level 3 go beyond those required at Level 2, incorporating additional controls from NIST SP 800-172. These practices address advanced persistent threats and other sophisticated attack vectors. The specific number of practices may vary depending on the nature of the information being protected and the specific requirements of the defense program.

Government-led assessments at Level 3 introduce a new level of rigor to the certification process. These assessments are conducted by trained government personnel or authorized representatives. They involve a deep dive into an organization’s cybersecurity practices. This includes reviewing documents, interviewing staff, and testing systems.

The tailored approach to protecting sensitive CUI at the Level 3 maturity level allows for flexibility in addressing unique security challenges. This may require adding controls or changing practices to meet program requirements. Organizations at this maturity level are expected to demonstrate not just compliance but also a proactive and adaptive approach to cybersecurity.

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Factors Affecting CMMC Certification Cost

CMMC certification costs vary widely. They depend on several factors: certification level, assessment type, organization size, and compliance needs. Planning and implementation costs include creating a roadmap, setting timelines, and allocating resources. They also include training and documenting the process. IT system and facilities costs include risk and vulnerability assessments, penetration testing, and fixing gaps. Also, they include risk assessment and remediation. Existing infrastructure and compliance costs depend on the organization’s security posture. Startups often have a weaker posture than established enterprises.

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Breakdown of CMMC Certification Costs

The CMMC process has various expenses, frequently described as CMMC costs. These include the cybersecurity requirements that organizations must consider when planning their compliance journey. These costs can be categorized into four main components: assessment, preparation, implementation, and maintenance. Each category represents a distinct phase in the certification process and carries its financial considerations.

Soft Costs

Soft costs refer to internal expenses and resources incurred during preparation for the CMMC audit. These costs can vary significantly based on several factors:

Factors Affecting Soft Costs:

• Size of the business
• Number of locations
• Required CMMC level
• Current compliance with NIST 800-171
• Extent of Controlled Unclassified Information (CUI) handling

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Estimated Soft Cost Ranges:

• $0-$10,000 for organizations with an up-to-date Risk Assessment, System Security Plan, and a mature NIST SP 800-171 compliant environment
• $10,000-$40,000 for organizations with a less mature environment
• $15,000-$100,000, depending on whether outsourcing is needed for tasks like gap assessments

These costs primarily cover activities such as risk and readiness assessments, documentation preparation, and internal resource allocation for compliance efforts.

Hard Costs

Hard costs include tangible expenses related to technology investments, audit processes, and implementation of security measures. These costs can be further divided into two categories:

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1. Hard Costs for Audit Preparation

Factors Affecting Preparation Costs:

• Current maturity of NIST SP 800-171 compliance
• Required technological upgrades

Estimated Cost Ranges:

• Minimal for businesses with a mature NIST SP 800-171 compliant environment
• $20,000-$60,000 for businesses needing significant upgrades to reach compliance

These costs may include investments in:

• Multi-factor authentication(MFA)
• Endpoint protection
• Log monitoring/SIEM tools
• Mobile device management
• Data backups
• Code review
• Advanced email protection

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2. Hard Costs for the Audit Process

Estimated Audit Costs:

• $20,000-$40,000 for a typical standardized control assessment audit program
• $112,000 per assessment for organizations other than small entities (Level 2)
• $102,000 per assessment for small entities (Level 2)

It’s important to note that these costs can vary based on the CMMC level required and the complexity of the organization’s infrastructure. Additionally, some of these costs may be considered allowable and potentially reimbursable under DFARS rules

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Assessment Costs

Assessment and audit costs encompass the expenses directly related to the CMMC certification process. These costs fluctuate based on the CMMC level sought and the size of the organization undergoing certification. The Department of Defense (DoD) has provided estimates to help organizations budget for these expenses.

For Level 1 certification, which relies on self-assessment, the costs are relatively modest. Small organizations can expect to spend around $5,000, while larger companies might see a slightly lower cost of approximately $4,000. This cost difference may seem odd, but it reflects the more efficient Level 1 assessment process for larger organizations with established internal processes.

Level 2 certification introduces a split in assessment methods. For organizations dealing with critical national security information, third-party certification becomes mandatory. This external assessment significantly increases costs. Estimates are $102,000 for small companies and $112,000 for larger organizations.

Level 3 certification, the highest tier in the CMMC framework, which is still in development, will come with an expected substantially higher assessment cost. This blog will highlight that small organizations might see expenses reaching $2.7 million, while larger organizations could face costs of up to $4.1 million. These figures highlight the complexity of Level 3 assessments. They involve government-led assessments and advanced security practices.

• Level 1 self-assessment: $5,000 (small entities), $4,000 (larger entities)
• Level 2 third-party assessment: $102,000 (small entities), $112,000 (larger entities)
• Level 3 assessment: $2.7 million (small entities), $4.1 million (larger entities)

Preparation Costs

Preparation costs include the expenses incurred while getting ready for a CMMC assessment. These costs can vary widely depending on an organization’s existing cybersecurity posture and the complexity of its operations. Many organizations find it beneficial to conduct gap or readiness assessments before pursuing certification.

For a typical organization with around 250 employees, gap or readiness assessments might cost between $15,000 and $35,000. These assessments identify gaps in an organization’s practices vs. CMMC requirements. They enable targeted improvements before the official assessment. It is also important to have a current Risk Assessment and System Security Plan, as lacking these foundational documents may lead to higher assessment costs due to additional remediation efforts necessary to meet compliance requirements.

Another critical aspect of preparation is conducting CUI scoping exercises and risk assessments. These activities help organizations find where their systems hold Controlled Unclassified Information (CUI). They also assess for vulnerabilities. Such exercises typically cost between $30,000 and $50,000, depending on the organization’s size and the complexity of its information systems.

Many organizations also engage external service providers for consulting or implementation assistance. These experts can provide valuable insights and hands-on support in preparing for assessments. The cost of these services can vary significantly based on the scope of work and the duration of engagement.

• Gap assessments: $15,000 – $35,000 (250-person organization)
• CUI scoping and risk assessments: $30,000 – $50,000
• External consulting services: Vary based on scope and duration

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Implementation Costs

Implementation costs represent the financial investment required to implement the necessary security controls. These costs can vary dramatically based on an organization’s starting point in terms of cybersecurity measures.

For organizations starting with minimal existing cybersecurity measures, implementation costs for lower CMMC levels can range from $20,000 to $60,000. When significant upgrades or overhauls are needed, these costs might reach $100,000 dollars. These figures cover new software licenses, hardware upgrades, and the labor costs associated with configuring and testing new systems.

Level 3 certification demands additional security measures, resulting in higher implementation costs. The DoD estimates nonrecurring engineering costs for Level 3 at approximately $2.7 million for small organizations and $21.1 million for larger ones. These figures show the thoroughness of Level 3 requirements. They often require major changes to an organization’s IT and security practices.

• • Basic implementation (lower levels): $20,000 – $60,000 (up to $100,000 in some cases)
  • Level 3 nonrecurring engineering costs: $2.7 million (small entities), $21.1 million (larger entities)

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Maintenance Costs

Maintenance costs are the ongoing expenses of keeping CMMC compliance after certification. These recurring costs should be factored into an organization’s long-term budget planning.

Regular updates to security systems form a significant part of maintenance costs. As new threats and technology evolve, organizations must update their cybersecurity to stay compliant. This might mean buying software updates, replacing old hardware, or using new security tools.

Employee training is another critical aspect of maintaining CMMC compliance. Organizations must keep their staff updated on the latest cybersecurity practices. They must also understand their role in maintaining a secure environment. This often involves regular training sessions. They incur direct costs for materials and instructors, and indirect costs for employee time.

Periodic reassessments are also part of the maintenance process, especially for higher CMMC levels. These reassessments ensure ongoing compliance and may uncover areas where security practices have slipped or need updating.

For Level 3 certification, the DoD estimates recurring engineering costs at $490,000 for small companies and $4.1 million for larger organizations. These figures highlight the substantial ongoing investment required to maintain the highest level of CMMC compliance.

Many organizations find it helpful to have in-house compliance management or to engage a CMMC-certified managed service provider. While this adds to the overall cost, it can help ensure consistent compliance and potentially reduce the risk of costly security breaches.

• • Level 3 recurring engineering costs: $490,000 (small entities), $4.1 million (larger entities)
  • Regular security system updates: Varies based on organizational needs
  • Employee training: Ongoing expense, varies by organization size and training frequency
  • Periodic reassessments: Cost depends on CMMC level and assessment type

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Cost-Saving Strategies for CMMC Compliance

To cut CMMC certification costs, organizations should prioritize tasks that directly impact it. They should focus on controls and practices that secure Controlled Unclassified Information (CUI). They can also assess and manage risks from third-party vendors, suppliers, and contractors accessing CUI. This includes implementing vendor risk management practices. Pre-made compliance policy and procedure documents can save time and resources. They provide a framework for documenting your compliance posture. Hiring consultants certified by CyberAB can help. They can provide guidance, recommendations, and support that align with meeting CMMC requirements.

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Industry-Specific CMMC Certification Costs

The cost of CMMC certification can vary depending on the industry and the specific requirements of the organization. For example, defense contractors may require higher levels of certification, which can increase costs. Small businesses may also face unique challenges in implementing CMMC requirements, which can impact costs.

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CMMC Certification Cost for Small Businesses

Small businesses may face higher costs for CMMC certification due to limited resources and expertise. However, there are cost-saving strategies that small businesses can implement to manage CMMC certification costs. For example, they can prioritize key CMMC compliance tasks, utilize pre-made compliance documents, and hire consultants certified by CyberAB. Small businesses can also consider outsourcing their CMMC compliance efforts to third-party providers to reduce costs.

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Frequently Asked Questions

What is the average cost range for achieving CMMC certification?

The total cost of CMMC certification can change based on different factors. These include the required CMMC level, the organization’s size, and how strong its current security is. The costs can be divided into hard costs and soft costs. Hard costs are things like upgrading technology, while soft costs include fees for consulting.

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Can small businesses afford CMMC certification, and are there grants available?

Manufacturing Extension Partnership (MEP) centers, part of the NIST MEP National Network, provide crucial support to small and medium-sized manufacturers across the United States. These centers offer a range of services to enhance businesses’ competitiveness, efficiency, and profitability.

MEP centers assist manufacturers with:

• • • • Technology acceleration: Implementing advanced manufacturing technologies and Industry 4.0 practices.
        Workforce development: Training employees and addressing skills gaps.
      • Supply chain optimization: Improving supplier networks and logistics.
      • Process improvement: Implementing lean manufacturing and quality management systems.
      • Business growth: Developing new markets and expanding product lines.
      • Sustainability: Adopting environmentally friendly practices and reducing energy consumption.

These services are typically more affordable than hiring private consultants, making them accessible to smaller businesses. MEP centers employ experienced professionals who understand regional manufacturing challenges.

To access these services, manufacturers can contact their local MEP center through the NIST MEP website. Many centers offer initial consultations at no cost, allowing businesses to explore potential improvements before committing to specific projects.

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How often will recertification be required, and does it affect the overall cost?

Recertification for CMMC usually happens every three years. However, this may change as the CMMC program updates. The cost depends on the required CMMC level and the ongoing risk assessment and remediation work needed.

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Does achieving a higher level of CMMC ensure better opportunities for defense contracts?

Achieving a higher CMMC level can open up more chances for defense contracts. This is important because some Department of Defense (DoD) contracts require specific CMMC levels to qualify.

What are the first steps a company should take toward CMMC certification?

The initial steps toward CMMC certification involve pre-assessment readiness, a comprehensive gap assessment to identify areas for improvement, and proper planning to outline a clear roadmap for compliance.