Whether you're a prime contractor, a subcontractor, or a supplier in the defense industry, understanding CMMC is crucial for securing your business and staying competitive. But who exactly needs to get CMMC certified? 

Below, we’ll examine which organizations are required to have CMMC certification and why it might be beneficial even for those who aren't directly mandated to comply. 

Who does CMMC apply to?

Is CMMC required? It depends. 

CMMC is required for organizations within the Defense Industrial Base (DIB) that wish to bid on and participate in contracts with the U.S. Department of Defense (DoD). 

Here’s a detailed look at who is required to comply with CMMC:

• Defense contractors and subcontractors: Any company that seeks to work on DoD contracts must achieve CMMC certification. This includes prime contractors and their subcontractors who handle Federal Contract Information (FCI) or Controlled Unclassified Information (CUI). The level of certification required depends on the sensitivity of the information handled and the specific contract requirements. If CUI or very sensitive information is processed to additional parties, CMMC can apply to fourth-party vendors such as contractors or subcontractors.
• Suppliers in the defense supply chain: Suppliers providing goods or services that are part of the defense supply chain, even if not directly contracted by the DoD, must comply if their work involves handling FCI or CUI. This ensures the entire supply chain is secure and protected from cyber threats.

Other organizations that benefit from CMMC certification

Companies that aren't strictly required to comply with Cybersecurity Maturity Model Certification (CMMC) 2.0 might still choose to do so for several strategic reasons. Let’s examine a few situations where an organization would benefit from voluntary CMMC certification. 

Companies seeking new business opportunities

Achieving CMMC certification opens up new business opportunities with the DoD and other federal agencies, expanding market access. It also provides a competitive edge over non-certified organizations when bidding for contracts.

Organizations that handle sensitive information

Even outside the defense sector, companies dealing with sensitive data can benefit from adopting CMMC practices to enhance their cybersecurity posture. This includes sectors like healthcare, finance, and critical infrastructure, where data protection is paramount.

Businesses looking to implement cybersecurity best practices

CMMC provides a robust framework for improving cybersecurity practices. Organizations looking to protect themselves from cyber threats and data breaches can adopt CMMC standards to build a stronger security foundation.

Companies that are already NIST 800-171 Rev. 2 compliant

Organizations that are already compliant with NIST 800-171 Rev. 2 may choose to become CMMC certified because there is significant overlap in requirements. They may also find that CMMC certification opens doors to more business opportunities. Unlike NIST 800-171, CMMC is a certifiable framework, which provides valuable third-party validation and certification of strong security practices. 

To help decide if CMMC certification is the right choice for your organization, ask yourself the following questions:

• Do your current or prospective contracts with the DoD mandate CMMC certification? Assess the specific level of certification required based on the nature of the information handled.
• What is the market opportunity? Evaluate any potential business opportunities with the DoD and other federal agencies that require CMMC certification and consider the long-term benefits of accessing a broader market.
• How would CMMC compliance enhance your overall security posture and mitigate risks?
• Would achieving CMMC certification provide a significant advantage over non-certified competitors?
• Does CMMC compliance closely align with other regulatory requirements and security standards your organization already complies with?

CMMC compliance is essential for organizations within the defense sector and beneficial for any company looking to strengthen its cybersecurity practices and expand business opportunities with the federal government. By carefully considering contractual obligations, market potential, current cybersecurity posture, and competitive dynamics, organizations can make informed decisions about pursuing CMMC certification.