Executive Brief
- Winning a defense contract requires more than a strong product or service, you must meet strict Department of Defense (DoD) compliance and security standards.
- The path includes multiple steps: registration, meeting Defense Federal Acquisition Regulation Supplement (DFARS) / National Institute of Standards and Technology (NIST) requirements, and achieving the right Cybersecurity Maturity Model Certification (CMMC).
- Option years are not guaranteed. If your compliance posture slips, your contract extension could be at risk.
- After the CMMC phase-in, many commercial contracts will also require current certification for eligibility.
- Strong compliance preparation positions your business for long-term success in the defense supply chain.
Want to see how to position your business for success? Dig deeper below.
Step 1: Get Registered
The government facilitates its contracts through the System for Award Management (SAM) system. Here is how you can get started on your government contracting journey:
- SAM: Register at SAM.gov to be eligible.
- Small Business Administration: If eligible, certify as a small business and explore socioeconomic programs such as the 8(a) Business Development Program, Historically Underutilized Business Zone, Woman-Owned Small Business, Veteran-Owned Small Business (VOSB), or Service-Disabled VOSB. These designations can open set-aside opportunities and strengthen competitiveness.
- Commercial and Government Entity (CAGE) Code: Obtain a CAGE code. A CAGE Code is a unique identifier assigned to businesses that work with the U.S. government. It’s used by the Department of Defense and other federal agencies to track approved vendors, confirm business details, and manage contract eligibility.
- North American Industry Classification System (NAICS) Codes: Identify your NAICS codes to align with opportunities. When pursuing federal contracts, businesses are required to apply the correct NAICS code that represents their industry. Using these codes allows government agencies to properly categorize and assess bids, supporting a fair and consistent procurement process. In many cases, eligibility for specific contracts depends on aligning a company’s products or services with the appropriate NAICS classification.
Step 2: Understand the Requirements
Each solicitation spells out what the DoD expects. Pay close attention to:
- Scope of Work: Defines the exact services or products required.
- Compliance Clauses: Look for DFARS, International Traffic in Arms Regulations, and cybersecurity requirements.
- Evaluation Criteria: The DoD often weighs past performance, technical compliance, and cost realism heavily.
Step 3: Build a Compliance Baseline
Eligibility depends on more than just capability, it requires security compliance.
- Supplier Performance Risk System (SPRS) score: Your SPRS score reflects how well you’ve implemented NIST Special Publication 800-171.
- CMMC Level 1: According to the DoD, most contractors will fall into this category, with more than 100,000 organizations expected at Level 1.
- CMMC Level 2: Contractors handling Controlled Unclassified Information (CUI) will need at least Level 2 certification. A Level 2 self-assessment is required for eligibility, and in many cases a third-party assessment is mandated.
- Defense Industrial Base Cybersecurity Assessment Center (DIBCAC) assessments: All contractors pursuing Level 2 certification will undergo a Level 2 self-assessment first, which serves as a precursor to formal DIBCAC-led certifications.
Without meeting compliance requirements, your bid can be disqualified before review.
Step 4: Find the Right Opportunities
Bid on as many contracts that make sense to pursue. However, don't overdo it. Make sure you fully vet the opportunity for your probability of winning the contract:
- SAM.gov: Central hub for open solicitations.
- DoD Forecasts: Many agencies publish advance notice of upcoming opportunities.
- Primes and Teaming: Large primes frequently subcontract portions of contracts. Don’t be afraid to start as a sub, many businesses build their defense portfolio this way. It’s a practical entry point, lowers initial risk, and helps you gain past performance credentials.
Step 5: Prepare Your Proposal
Defense proposals are competitive and detailed. Focus on:
- Technical Volume: Show how you’ll meet requirements.
- Management Plan: Demonstrate ability to deliver reliably.
- Cost/Price Volume: Ensure numbers are realistic and defensible.
- Past Performance: Highlight similar work with strong references.
- Compliance Narrative: Clearly show how your security posture meets or exceeds requirements.
Step 6: Post-Award Realities
Winning the contract is just the beginning. Be ready to:
- Pass Security Audits: Maintain compliance and update your SPRS score regularly.
- Option Years Aren’t Guaranteed: DoD contracting officers cannot award, extend, or exercise an option year if you don’t have a current CMMC certification or self-assessment in SPRS. Compliance must be continuously affirmed.
- Commercial Contracts Count Too: CMMC requirements do not apply to contracts and subcontracts that are exclusively for the delivery of Commercial Off-The-Shelf products to a DoD buyer.
- Manage Flow-Downs: CMMC requirements flow down to subcontractors at all tiers if they process, store, or transmit Federal Contract Information or CUI.
FAQs
Do I need CMMC certification before I bid?
CMMC is being rolled out for self-assessment contracts likely by the end of this year as well as flow downs for Level 2 (Certified Third-Party Assessment Organization) by primes.
What happens if my SPRS score is low?
A low SPRS score can disqualify you from opportunities or flag your company as a high-risk subcontractor. The best approach is to submit an accurate score and, then immediately begin remediation and communicating with your prime contractors and other relevant stakeholders informed of your progress.
Can primes help me win work?
Yes. Primes are often required to include partners. Demonstrating compliance readiness makes you a stronger teaming candidate, and subcontracting is often the best first step into defense contracting.
Can CMMC affect my option years on current contracts?
Yes. If your compliance posture slips, the DoD or a prime may choose not to exercise an option year, even if performance is otherwise strong.
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