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    How to Budget for CMMC

    Find out what CMMC is really going to cost. Discover key steps, timelines, and cost estimates to prepare your organization effectively.

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    3 Minutes Read

    How to Budget for CMMC 

    Over the past few years, Summit 7 has engaged in more than 3,600 discussions with defense contractors of varying sizes. 

    In all of those calls, our most frequently asked question is: “𝗪𝗵𝗮𝘁 𝗯𝘂𝗱𝗴𝗲𝘁 𝗱𝗼 𝗜 𝗻𝗲𝗲𝗱?” 

    Today, we’ve got the answer for you. 

     I Got You GIFs | GIFDB.com 

    What Is CMMC And Why Is It Important? 

    The Cybersecurity Maturity Model Certification (CMMC) is a unified standard for cybersecurity that all Department of Defense (DoD) contractors must meet to do business with the DoD. This model is based on the National Institute of Standards and Technology (NIST) Special Publication 800-171, which outlines the security requirements federal contractors must adhere to. The CMMC framework is designed to protect sensitive information from unauthorized access, use, or disclosure. 

    To put it simply, CMMC Level 2 is keeping DoD Contractors accountable for doing NIST SP 800-171.  

    As Jacob Horne, Summit 7's Chief Security Evangelist, says: “CMMC isn’t making you do the requirements. It’s making sure you did the requirements.”  

    When Will CMMC Be Required? 

    CMMC will be required for any company in the defense supply chain, including prime contractors and subcontractors. The CMMC framework is expected to be fully implemented by 2025, but CMMC certifications will likely become available in Q4 of 2024. The timeline for CMMC implementation is as follows: 

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    Companies should start preparing for CMMC as soon as possible to avoid any disruptions to their business. 

    How Long Does It Take to Prepare for CMMC? 

    Implementing NIST SP 800-171 is a complex process that can take anywhere from a few months to over a year to complete, depending on the size and complexity of your organization and the current level of NIST SP 800-171 maturity. 

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    To help you in your journey to CMMC, we developed the CMMC Readiness Brief that includes our 7 Steps to CMMC to make the daunting CMMC checklist more approachable and empower you with the right knowledge and tools for each step. 

    Click here to download the FREE CMMC Readines Brief.

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    When Should I Get Started? 

    The CMMC Final Rule is expected in Q4 of 2024. As Dave McKeown, Deputy CIO for the DoD, said: “By the first quarter of calendar year 2025 we'll be able to start enforcing this and putting this in contracts.” 

    Achieving CMMC compliance can take anywhere from 3-5 quarters. If you want to be ahead of the curve and avoid the rush, we recommend starting now.  

    The longer you wait, the more it will cost, and the more you risk missing out on contracts that require CMMC. Many contractors are trying to find the goldilocks zone to begin their CMMC compliance journey; not wanting to be too early and be undercut by other bidders who didn’t have CMMC costs built into their budget, but also not wanting to be late and miss out on contracts for lack of CMMC preparedness.  

    Our advice? Early is better, due to the backlog of clients in CMMC solution providers’ pipelines, the time it takes to implement NIST 800-171, and the time that assessment might take once the gates open.

    As Daniel Akridge, Summit 7’s Director of Sales Engagement, says: “You can’t be ‘on-time’ for CMMC. You’re either early or you’ll end up being very late.” 

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    What Should My Company Budget for CMMC? 

    While the DoD offers vague estimates for the cost of CMMC assessments, they have not provided figures for implementing the necessary security requirements assessed by CMMC. 

    Their big hint? The DoD suggests companies allocate at least .5% of their revenue to security. But this treats the wound too lightly. What about the costs of implementing NIST SP 800-171? 

    We get no real help from the DoD on estimating the cost of NIST SP 800-171 implementation. However, the government has provided estimates for the cost to implement and maintain NIST SP 800-53, which is more comprehensive than NIST SP 800-171. 

    With our expertise in both areas, we did some calculations. 

    We compared these figures with our own operations and the solutions we've developed for nearly 1,000 defense contractors to calculate a specific numbers to help you budget better. 

    The number we calculated might surprise you. Check out the free, on-demand webinar to learn:  

    • What our research shows implementing NIST 800-171 will cost 
    • What other regulated industries budget for security and compliance 
    • What Summit 7 budgets internally for IT in preparation for CMMC  
    • How to choose the best CMMC solution for your company 
    • What your company should budget for CMMC 

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    Budgeting for CMMC is a complex but necessary process for any company involved in the defense supply chain. By understanding the requirements, estimating costs accurately, and starting the compliance process early, you can ensure your organization meets the necessary standards to continue doing business with the DoD. 

    Watch the FREE webinar on-demand here: 

     

     

    Download the Brief on How to Budget for CMMC

    Daniel Akridge

    Daniel Akridge is the Director of Sales Engagement at Summit 7. With extensive experience in cybersecurity and compliance, he specializes in helping Defense Contractors achieve DFARS 7012, CMMC, and ITAR Compliance leveraging the Microsoft Government Cloud.

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