How much does it cost to get your CMMC 2.0 Compliance?
With CMMC 2.0 becoming mandatory requirements for DIBs by March 2023, it's crucial to budget and understands the CMMC cost components. Refrain from letting the cost of CMMC 2.0 Compliance hold you back. Consult a CMMC expert for a personalized action plan and budget. Read on to understand
On December 26, 2023, the Department of Defense publishedthe Proposed CMMC Rule. The Proposed Rule represents a pivotal step in the cybersecurity of the Defense Industrial Base (DIB). With the Proposed CMMC Rule, DoD has made significant changes that will have long-term impacts on how CMMC2.0 requirements are implemented in the DIB Supply chain.
Many Defense Contractors realize they must comply with CMMC but are hesitant to take proactive steps due to the cost involved. It is particularly challenging for Small to Medium size Defense Contractors. But the cost of CMMC Non-Compliance is much higher than cost of CMMC Compliance.
If you are a part of the DoD supply chain ecosystem, you must get your CMMC Certification to bid on DoD proposals.
Being a CMMC candidate, getting your CMMC Compliance requires organizational and monetary resources. So, let's understand how different factors affect the cost of CMMC Compliance.
Understanding the cost elements of CMMC Certification
While there is no single measurement standard for CMMC certification cost, it is reasonable to expect to spend between $3,000 and $100,000 to achieve CMMC level 3 certification.
CMMC Certification costs vary based on several factors, including the size of the business, the number of locations, and existing cybersecurity readiness.
The total cost of CMMC certification will also depend on your business's budget. Consider consulting a CMMC compliance expert to determine the best action plan.
To understand what it costs to implement CMMC in your organization, you first need to figure out which CMMC Level you will be certified. A thorough CUI scoping exercise will help you determine the suitable CMMC Level your company needs to comply. Each level has its requirements, and there are different technologies you can use to meet them. The higher the CMMC Level, the higher the cost of Certification.
For CMMC Level 1, there is no external audit required; therefore, you save on the audit cost. For CMMC Level 2, an external audit by a CyberAB-authorized C3PAO is needed, so there is an audit cost. Finally, for CMMC Level 3, an external audit by a government-led entity is required, so there is a preparatory audit cost.
Existing security compliance
Suppose you have an existing non-governmental security framework like ISO 27001, ISO 27002, GDPR, or HIPAA. In that case, you can leverage some of your security controls to comply with CMMC, thereby saving on time and cost for certification readiness.
Time required to prepare for CMMC
The other cost element is the time required to prepare for CMMC. For CMMC compliance, training and documentation development will be necessary for implementing new procedures and policies. It is also essential to have policies in place to report malicious cyber incidents. Thus, the time required to prepare for CMMC is directly related to the organization's size, current cybersecurity maturity level, number of people, etc., and the cost is a function of time.
The number of people involved in the project
As already mentioned, the other factor that can affect the cost of CMMC is the number of people involved in the project. The more people involved in the CMMC assessment, the higher the price. However, the cost will also be proportional to the organization's size. For example, if fewer people in the organization are involved in the CMMC compliance journey, the prices will be lower. However, the number of employees with access to the CUI will be a crucial driver of the overall CMMC compliance costs.
Technology implementation
Depending on the existing cybersecurity maturity of the organization, one other factor in calculating the cost of CMMC is the technology implemented. For example, some businesses will need a cloud-based app to manage their CUI, but this does not make the process more expensive. It can limit the scope of the project, however.
The compliance cost also depends on the type of cybersecurity protocols used. For example, if your company uses encryption, it is crucial to ensure it is FIPS 140-2 compliant.
The complexity of the Business Model
Finally, the cost of implementing CMMC 2.0 will vary depending on the complexity of your business. For instance, a large organization with a large IT staff and a large amount of technology will have a more difficult time implementing CMMC than a small or mid-sized business.
Other Factor
Other considerations are companies in Joint-Venture that have contracts that require CMMC compliance. Small and Midsize businesses often form a JV to go after contracting vehicles such as CIO-SP4, 8(a) STARS III, Polaris, etc. All these vehicles have CMMC compliance requirements, which flow down to individual companies in the JV.
Companies with multiple locations and offshore locations add additional complexity to the CMMC scoping and compliance.
Likewise, the more people who are going to be involved in the CMMC assessment and the more technologies that the CUI will touch, the higher the cost will be.
How much does CMMC Compliance cost in dollar value?
Although CMMC certification is a new requirement, total cost estimates for small and medium-sized businesses have yet to be precisely defined.
While the cost of CMMC certification is not a fixed number, the expenses incurred for CMMC compliance are allowable costs in your pricing proposal under the DFARS rules.
These costs include the costs associated with the certification audit and CMMC remedial actions. It also provides for the cost of implementing new processes and purchasing security equipment and software. The government has yet to release any specific charges, but the best estimates range between $3000 and $5000.
Working with qualified CMMC security experts will help identify several cost-effective and valuable steps in the CMMC compliance process.
Below is the breakdown to give you some idea of the cost considerations for CMMC Level 2 compliance.
How do I start on the CMMC journey?
As a DoD contractor, you must take on the responsibility of implementing CMMC. For this reason, it is essential to consult with experts. Also, proper CMMC consulting can help you cut down on the cost of CMMC 2.0.
While choosing your CMMC compliance expert, ensure that the cybersecurity organization you decide to work with is Cyber-AB certified Registered Provider Organization (RPO) or CMMC Third-Party Assessment Organization (C3PAO) authorized and has years of experience handling NIST/DFAR Compliance for federal contractors.
You can also seek out Managed Security Service Providers (MSSPs) that specialize in CMMC compliance. These organizations have a detailed understanding of the control families and know all the CMMC requirements.
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