Budgeting for the Cost of CMMC Level 2 Compliance

EXECUTIVE BRIEF

CMMC requirements are now appearing in new DoD contracts, making accurate budgeting a critical priority for defense contractors. This guide breaks down what truly drives CMMC costs, why internal compliance efforts often exceed expectations, and how a DIB-focused MSP like ISI can streamline cost, effort, and risk.

In this article, you’ll learn:

• What core components every contractor must account for when budgeting for CMMC Level 2 compliance—including scoping, remediation, and infrastructure readiness.
• Why in-house compliance is often more expensive and less efficient than expected, especially for organizations without dedicated cybersecurity and compliance teams.
• How partnering with a purpose-built, defense-focused MSP reduces total cost, shortens timelines, and provides predictable, audit-ready support.
• How to develop a timeline for building your CMMC budget before requirements hit your contracts.

Dig deeper below to learn more.

As of November 10, the phased rollout of Cybersecurity Maturity Model Certification (CMMC) has officially begun, which means CMMC requirements are now appearing in new Department of Defense (DoD) (also known as the Department of War) contract language. For defense contractors, especially small and midsize businesses, understanding the true cost of CMMC Level 2 certification has shifted from a long-term planning exercise to an urgent operational priority.

By the end of next year, Level 2 compliance will be fully embedded across eligible contracts, and organizations that aren’t prepared risk falling behind competitors who are already moving toward assessment.

CMMC readiness doesn’t happen overnight. Most contractors will face significant lead times securing a CMMC Third-Party Assessor Organization (C3PAO), and even once scheduled, the preparation and assessment process can take several months.

Budgeting early prevents delays and unnecessary costs. Building a budget that accounts for people, processes, technology, and ongoing cybersecurity expenses is critical for staying on track and avoiding last-minute surprises.

With ISI you can move confidently toward audit readiness. For detailed benchmarks, staffing considerations, and planning frameworks, download our free CMMC budgeting guide, Compliance Without Compromise.

What Really Drives CMMC Costs

CMMC isn’t a quick project or a one-time purchase. Level 2 compliance requires the right blend of technical safeguards, skilled personnel, and operational processes. Estimated costs can shift depending on:

• Accurate scoping to determine which systems, users, and workflows fall inside the Controlled Unclassified Information (CUI) boundary
• The complexity of the enclave you need to secure
• The age and configuration of your existing infrastructure
• The maturity of your pre-existing cybersecurity documentation
• How much remediation is needed before a third-party assessment

Organizations with well-defined security controls, updated policies, and strong operational practices typically experience lower preparation costs than those starting from fragmented or outdated systems.

Here are three core components that shape every CMMC budget:

IT Helpdesk & Patching

These provide the core day-to-day operations that keep your systems updated, monitored, and functional. Regular patching, device management, and user support ensure your environment meets DoD expectations and prevents vulnerabilities from developing. These costs often appear upfront, especially when older infrastructure must be brought into alignment with baseline compliance requirements.

Cybersecurity Tools & Security Engineering

A secure CMMC-ready environment requires the right mix of defense-grade technologies and expert engineering. Endpoint protection, identity and access management, SIEM logging, monitoring, and secure enclave design all fall under this umbrella. This is where many of the required security controls live: the technical safeguards that protect CUI and demonstrate a contractor’s commitment to strong cybersecurity practices.

Compliance Oversight & Program Management

Beyond tools and technology, CMMC readiness requires continuous governance. This includes documentation, policy development, evidence collection, Plan of Action and Milestones (POA&M) management, internal reviews, and preparation for formal CMMC audits. Strong program management ensures your organization stays compliant long after the implementation work is complete.

Get more detailed CMMC certification cost estimates in Compliance Without Compromise, our free guide to budgeting for CMMC.

Why In-House CMMC Compliance Often Costs More Than You Expect

Many contractors begin their CMMC journey assuming that building compliance internally will be the most cost-effective choice. In practice, however, most small to midsize businesses underestimate what their organization needs to sustain compliant operations—particularly the staffing, technical expertise, and ongoing effort required to protect sensitive data and maintain the security measures expected under CMMC Level 2.

Our guide details the risks organizations encounter with an internal-only approach, but some of the major issues include:

• Unrealistic expectations for small teams that don’t have the capacity to take on the extra work
• Overreliance on generalists who lack the background to fully understand the requirements
• Trouble recruiting and retaining the specialized talent you need to stay compliant

See how internal vs. outsourced models compare. Download our budgeting guide for full CMMC certification cost breakdowns.

How a DIB-Focused MSP Cuts Risk and Cost

For many contractors, the most efficient way to achieve and maintain CMMC Level 2 compliance is by partnering with a Managed Service Provider (MSP) purpose-built for the Defense Industrial Base, like ISI. Unlike generalist IT vendors, a DIB-focused MSP integrates the technology, expertise, and ongoing support required to meet DoD expectations—without forcing your internal team to absorb the full operational burden.

Here are some of the advantages that directly influence both costs and risks:

Cross-Functional IT + Security Coverage - A specialized MSP brings helpdesk support, system administration, cybersecurity engineering, and compliance oversight together under one coordinated umbrella.

Bundled Tool Stacks Designed for Compliance - MSPs serving the DIB typically provide an integrated tool stack pre-vetted for CMMC alignment and deployed as part of a cohesive architecture, eliminating the cost and complexity of sourcing and managing each tool individually.

Predictable, Fixed Monthly Pricing - Instead of unpredictable project costs or constant procurement cycles, MSPs like ISI offer fixed monthly pricing that covers ongoing cybersecurity, IT operations, and compliance support.

Faster Deployment and Built-In Compliance Alignment - DIB-focused MSPs implement the same frameworks and toolsets across many contractors, which means they can move quickly, often shortening implementation timelines and reducing the risk of misconfigurations or missing evidence during assessments.

Partnering with a specialized MSP reduces cost and simplifies planning. With clear pricing, proven toolsets, and cross-functional expertise, contractors can forecast budgets more accurately and move toward CMMC readiness with greater confidence and less disruption.

Budgeting Timeline: When to Start (and Why Waiting Costs More)

One of the most common budgeting mistakes contractors make is waiting until an RFP or audit deadline is already approaching. Delaying planning can increase total CMMC certification costs by 20–30%, largely due to compressed timelines, rushed remediation, and limited assessor availability.

The ideal budgeting window is 6–12 months before you expect CMMC requirements to apply to your contracts. That timeline gives your team the space to plan intentionally, avoid emergency spending, and align resources without disrupting day-to-day operations.

Most organizations move through three budgeting phases:

• Explore - Assess your current environment, identify gaps, or begin vetting DIB-focused MSP partners who can support compliance.
• Finalize - Develop or refine your POA&M, confirm the required staffing and tool investments, and establish a realistic budget based on your strategic priorities.
• Implement - Start remediation, deploy tools, update documentation, and secure a spot with a C3PAO—long before the market becomes saturated.

Build a CMMC Budget That Keeps You Contract-Ready

CMMC Level 2 compliance is an investment in your resilience, competitiveness, and ability to keep bidding on the contracts that drive your business forward. Contractors who plan early, budget strategically, and align their efforts with proven frameworks are the ones who stay ahead of deadlines and avoid unnecessary costs.

ISI works with defense contractors every day to simplify compliance, reduce operational strain, and build budgets that support long-term readiness. Whether you're navigating CMMC for the first time or refining an existing program, our team can help you plan with clarity and confidence.

Download Our Guide: Compliance Without Compromise – Smarter Budgeting for Defense Contractors.

FAQs about the Cost of Level 2 CMMC Compliance

How much does Level 2 CMMC certification cost?

The total cost to obtain CMMC Level 2 certification varies widely depending on your organization’s size, IT complexity, current security posture, and whether you pursue an internal or outsourced compliance model. Expenses typically include security tools, IT support, cybersecurity engineering, compliance documentation, and the formal C3PAO assessment.

What factors influence the cost of achieving CMMC Level 2 compliance?

Several elements shape the cost of CMMC Level 2 compliance, including the maturity of your existing cybersecurity program, number of users, the scope of your CUI environment, required remediation, tool stack complexity, internal staffing capacity, and the fees associated with a C3PAO assessment. Organizations with outdated infrastructure or limited documentation typically face higher costs due to additional remediation and engineering work needed to meet NIST 800-171 requirements.

How much does a SOC 2 Type 2 cost?

A SOC 2 Type 2 examination can range broadly depending on factors similar to those mentioned above related to the cost of CMMC compliance. While SOC 2 and CMMC differ in purpose, both require mature cybersecurity practices, which can increase the overall investment for organizations building programs from scratch.

What is CMMC 2.0 Level 2 compliance?

CMMC 2.0 Level 2 compliance requires organizations that handle Controlled Unclassified Information (CUI) to implement and maintain all 110 controls from NIST SP 800-171. Level 2 also introduces the requirement for most contractors to undergo a third-party assessment by an accredited C3PAO. 

Is CMMC compliance worth it?

Yes, CMMC compliance is worth the investment for any organization that relies on DoD contracts or plans to pursue new opportunities within the Defense Industrial Base. Achieving compliance keeps you contract-eligible, strengthens your cybersecurity posture, reduces operational risk, and can streamline future assessments. Contractors who plan early often save money and avoid the rush-driven costs associated with delayed remediation.

What is the role of C3PAOs in the CMMC process?

A C3PAO (Certified Third-Party Assessment Organization) is accredited by the Cyber AB to conduct official CMMC assessments for contractors pursuing Level 2 certification. C3PAOs review your implementation of NIST 800-171 controls, validate documentation, interview staff, and determine whether your organization meets the requirements for certification.

Internal Links

How to Obtain a Facility Clearance: What DCSA Is Really Looking For | Webinar

CMMC 48 CFR Goes Into Effect: What Contractors Should Do Now

The Hidden Cost of Waiting on CMMC Certification

Do You Need a Facility Security Officer? What FSOs Actually Do