.svg)
Even though CMMC is no longer optional in new DoD contracts, there are still some government contractors in the Defense Industrial Base (DIB) who are delaying their efforts to obtain CMMC certification. Although this approach may temporarily save them the time and capital expenditure necessary for achieving CMMC compliance, the cost of waiting will likely be considerable.
Short-term Savings Can Lead to Greater Long-term Costs
For too many defense contractors, investment in CMMC preparation seems like something that can wait in favor of resolving more immediate company revenue or operational issues. If certification is not yet written into your organization's active contracts, it’s easy to assume you still have time to prepare for CMMC. However, delaying CMMC compliance efforts will likely result in higher financial and operational costs as well as lost contract opportunities.
The Main Costs Caused by Delaying CMMC Compliance
Expensive remediation efforts
Companies that delay their compliance preparation are often blindsided by the weakness of their current cybersecurity environment compared to CMMC requirements. A belated gap analysis may find substantial remediation efforts necessary for access controls, endpoint protection, and MfA, along with the need to deploy centralized log management tools and vulnerability management programs. When these upgrades are made reactively under time pressure, the cost for these investments cannot be spread out over a 12–24-month timeframe. Having to fund major IT infrastructure improvements simultaneously and hurriedly can upend annual budgets and disrupt cash flow.
Additional document readiness cost
Many contractors make the mistake of thinking that CMMC is simply meeting a checklist of technical tools and underestimate the considerable effort it takes to provide required documentation as proof of compliance.
Going hand in hand with implementing new tools and processes required for CMMC certification is the ability to demonstrate documented, repeatable processes during a CMMC audit. Some of the key documentation requirements include a System Security Plan (SSP), risk assessments, strict policies and procedures, configuration baselines, and Plans of Action and Milestones (POA&Ms).
When these types of documentation are created under deadline pressure, staff must be moved away from their core duties, and the consulting costs from CMMC partners will increase.
More impact from the C3PAO bottleneck
Government contractors must also be aware of the growing bottleneck in scheduling mandatory CMMC assessments with third-party auditors known as C3PAOs. With a limited number of C3PAOs and a rapidly growing demand for CMMC certification, the longer your organization waits to schedule and prepare for an audit, the longer the wait for an appointment will be. Companies waiting until CMMC mandates appear in their contracts will find themselves frantically scrambling to prepare and will have difficulty finding a reasonable time window for an assessment. Any delays in achieving certification can result in lost opportunities to both renew contracts and bid on new ones.
Disruption to normal operations
A hurried implementation of policy changes and tools will negatively impact your organization’s operations by forcing employees to adjust their workflows to adapt to new technology and policies and by requiring emergency system upgrades. Employees will be disgruntled as they face mandatory training sessions and abrupt changes to security controls. Your internal IT team or your IT Support partner may be overwhelmed by the need for simultaneous infrastructure changes.
A reactive approach to CMMC preparation increases the likelihood of missed requirements, configuration errors, and ineffectively implemented security controls that will need to be corrected later, resulting in an additional expenditure of time and capital.
Weaker competitive positioning
Prime contractors are closely evaluating the cybersecurity maturity of subcontractors on their current contracts and on future contracts—even before CMMC certification has been officially added to them. Primes have their pick of partners on their contracts, and they are expressly looking for companies that demonstrate proactive alignment with CMMC standards. Importantly, most new teaming agreements already require that subcontractors submit a verified Supplier Performance Risk System (SPRS) score. If your company appears unprepared for CMMC, a prime contractor will view you as high risk in terms of reliability and long-term viability and will look elsewhere.
Greater security risk
The goal of CMMC is to protect Federal Contact Information (FCI) and Controlled Unclassified Information (CUI), which requires an elite cybersecurity posture. Any organization that delays this important mission to achieve a high level of IT security will be more vulnerable to cyberattacks. Any successful data breach involving FCI or CUI would result in reputational damage, contractual penalties, legal liabilities, and a long-term loss of trust and business in the DIB environment.
Additional expenses
Aside from the significant costs already discussed, if your organization delays its CMMC efforts you will have to deal with higher costs of legal and contractual review of compliance documentation because of the need for expedited services. In addition, if you have not demonstrated a more deliberate approach to obtaining CMMC certification, your cyber insurance premiums will be more costly. Finally, there is the substantial opportunity cost if your business loses out on a renewed or new contract, which would be much higher than the investment needed to prepare for CMMC in a timely fashion.
Work with a CMMC Expert to Follow a Phased Approach to CMMC Certification
If your business wants to compete effectively in the DIB, you will need CMMC certification, and the smart play is to do it quickly and deliberately with the help of an experienced CMMC expert like Network Depot.
Achieving CMMC certification will require a considerable investment in time and capital, and the most efficient approach for your organization is to start immediately and get it done quickly and thoroughly with the help of a trusted CMMC partner. By being proactive and following a phased approach, your organization will be able to plan and control costs, ensure operational stability, demonstrate a competitive advantage, and reap the benefits of an elite level of cybersecurity.
By avoiding the easier approach of waiting to prepare for CMMC certification, your company will save on time, capital, and organizational stress, and you will be well-positioned to work successfully on current and future DoD contracts.
