Who Needs CMMC Certification? A Simple Breakdown

Are you wondering if your business needs CMMC certification? You're not alone. The cybersecurity landscape for defense contractors can feel like navigating a maze blindfolded. I recently helped a small manufacturing company figure this out

April 30, 2025

What is CMMC anyway?

CMMC stands for Cybersecurity Maturity Model Certification.

Think of it as the Department of Defense's way of making sure contractors protect sensitive information.

It's not just another annoying regulation.

It exists because defense contractors handle valuable information that America's adversaries would love to steal.

Remember when hackers stole sensitive F-35 fighter jet data from contractors?

That's exactly what CMMC aims to prevent.

Who Actually Needs CMMC Certification?

Do you do business with the Department of Defense?

That's the first question.

But not all DoD contractors need certification.

It comes down to what type of information you handle:

  • If you handle Federal Contract Information (FCI): You need at least CMMC Level 1
  • If you handle Controlled Unclassified Information (CUI): You need CMMC Level 2
  • If you handle high-value CUI at risk from Advanced Persistent Threats: You need CMMC Level 3

Not sure what these terms mean?

FCI is basic information related to government contracts.

CUI is more sensitive information that requires protection (like technical drawings or specifications).

Breaking Down the CMMC Levels

CMMC Level 1

This is the entry level.

It covers 15 basic cybersecurity requirements.

It's designed for companies that only handle Federal Contract Information (FCI).

About 63% of Defense Industrial Base companies fall into this category.

It's the cybersecurity equivalent of locking your doors at night.

CMMC Level 2

This is where things get serious.

Level 2 includes 110 security requirements based on NIST SP 800-171 Rev 2.

Any company handling Controlled Unclassified Information (CUI) needs this level.

Think of it as having both locks and an alarm system.

CMMC Level 3

This is the highest level.

It adds 24 more requirements on top of Level 2.

Less than 1% of defense contractors need this level.

It's for organizations handling the most sensitive CUI that faces threats from advanced hackers.

This is like having locks, alarms, cameras, and armed guards.

What Happens If You Don't Get Certified?

The consequences are simple but severe.

Starting in early 2025, the DoD will require CMMC for every organization that handles CUI.

No certification?

No contracts.

As the official documentation states: "Contracting officers will not make an award, exercise an option, or extend the period of performance on a contract if the offeror or contractor does not have a passing result."

The Cost Factor

Let's talk money.

CMMC certification isn't free.

The costs include:

  • CMMC consulting assistance
  • Remediation costs to fix security gaps
  • Certification assessment costs
  • Ongoing costs to maintain compliance

For small businesses, this presents a significant challenge.

The requirements were designed with larger organizations in mind.

Wrapping up

CMMC certification isn't optional if you want to remain in the defense contracting space.

The key is understanding exactly which level applies to your business.

Remember, most companies only need Level 1, a smaller number need Level 2, and very few need Level 3.

I've seen companies waste thousands preparing for the wrong level.

Don't be one of them.

Start preparing now - 2025 will arrive faster than you think.

And when it does, you'll either be certified and winning contracts, or watching from the sidelines as your competitors take your business.