EXECUTIVE BRIEF
As the urgency for CMMC compliance increases, contractors are looking for guidance on how to appropriately budget for compliance-related costs. Here's what contractors need to know:
- Implementation costs and remediation costs will largely depend on your current security posturing, size of your company, and complexity of your system/networks
- Additionally, contractors should budget for the cost of a C3PAO assessment which can vary due to the aforementioned reasons
- For contractors who are just starting or are completely revamping their compliance posturing, the government estimates the first-year costs to be around $200,000 if handling in-house (salary, software and hardware, assessment fees)
Dig deeper and continue learning below!
For contractors in the Defense Industrial Base (DIB), the time to take a “wait and see” approach to CMMC is over. The CMMC framework has gone through multiple revisions, shifting timelines, and lengthy public comment periods, which left many organizations unsure when—if ever—the requirements would become real.
But that uncertainty is over.
As of November 10, 2025, the Department of Defense will officially begin including CMMC requirements in new contracts. Compliance is no longer a future consideration. It’s a prerequisite for doing business with the DoD.
That means the time to start budgeting is now. Understanding what CMMC certification will cost—and where those costs come from—is the only way to avoid being caught off guard when solicitations start requiring proof of compliance. Contractors that delay planning or funding their readiness efforts risk losing eligibility for upcoming awards, scrambling to secure last-minute support, or paying inflated prices as the demand for certified partners surges this fall.
So what’s the real cost of CMMC compliance? We break it down in this blog post. At ISI, we help defense contractors reach and maintain compliance more efficiently, avoiding the wasted spending, reworking, and uncertainty that drive costs up. Our fully integrated approach to IT, security, and compliance delivers predictable outcomes, consistent audit readiness, and a measurable competitive edge—without the inflated price tag of going it alone.
What is CMMC?
Cybersecurity Maturity Model Certification(CMMC) is based on the National Institute of Science Technology (NIST) standards that establish security requirements for DoD environments. The Defense Industrial Base follows these guidelines, and CMMC was issued by the DoD to build upon those requirements, standardizing cybersecurity from a model maturity perspective and ensuring proper documentation.
CMMC 2.0 includes three different maturity levels:
- Level 1 | Foundational: For contractors handling FCI, requiring adherence to 17 cybersecurity controls outlined in FAR 52.204-21
- Level 2 | Advanced: For contractors handling CUI, requiring adherence to all 110 controls and 320 objectives outlined in NIST SP 800-171a Rev2
- Level 3 | Expert: Mainly for prime contractors, but also some subcontractors, handling particularly sensitive CUI. Requires a Level 2 certification as well as 24 additional controls from NIST SP 800-172
How To Become CMMC Certified
To become CMMC certified, start by determining which level of certification you need based on your organization’s size and the type of data you handle: FCI or CUI. From there, the path to certification typically includes five key steps:
- Conduct a CMMC Assessment: Begin with an internal or third-party gap assessment to identify where your current cybersecurity practices fall short of CMMC compliance requirements.
- Develop a System Security Plan (SSP): Document your organization’s cybersecurity environment, including existing controls, policies, and processes. A strong System Security Plan is a required foundation for certification and helps auditors understand how compliance is maintained.
- Create and Execute a POA&M: Build a Plan of Actions and Milestones (POA&M) that outlines how and when you’ll close those gaps.
- Implement and Document Controls: Put the required security controls in place and maintain detailed documentation to demonstrate compliance.
- Undergo a CMMC Audit: Depending on your certification level, complete either a self-assessment or a third-party CMMC audit by a certified assessor (a C3PAO).
The exact steps can vary based on your organization’s size and risk profile, and the process is rarely as simple as a checklist. ISI helps DoD contractors streamline every phase, from gap assessment to audit, so you can achieve certification confidently and cost-effectively.
Is CMMC Certification Worth It?
Yes, CMMC certification is worth the investment on a multitude of levels. Here’s why:
- Certification will be required to accept award of new and continue working on current defense contracts
- The cybersecurity practices required are standard best practices to protect your sensitive information and reduce the risk of costly and reputation-damaging cyber attacks
- Mitigates the risk of False Claim lawsuits
- Early adoption can give your business a competitive edge against competitors, late adopters will be poised to be compliant with the upcoming FAR CUI rule
There is no denying that achieving your CMMC Certificate of Status requires an investment. But it’s an investment in yourself that will position your business for future success.
How Long Does CMMC 2.0 Certification Take?
The CMMC certification process typically takes 9-12 months to complete with an expert-managed service provider like ISI.
However, timelines depend on the maturity of your current cybersecurity posture. For example, if migration from a commercial to a government cloud environment is required, it can take over a year to become CMMC-ready.
How Long Is CMMC Certification Good For?
A CMMC certification is valid for three years—often called a triennial certification period. However, maintaining compliance requires continuous monitoring of your systems, policies, and IT infrastructure to ensure your security posture remains strong between audits. CMMC validates through an annual affirmation by an Affirming Official designated by your company.
The exact renewal process depends on your level of CMMC: organizations handling CUI, for example, must undergo a new third-party assessment every three years, while lower levels may rely on annual self-assessments.
For small businesses, this ongoing maintenance can be the most challenging part of compliance. Partnering with ISI helps ensure your controls stay effective year-round—so your next CMMC assessment or renewal is predictable, cost-efficient, and free of last-minute surprises.
How to Budget for the Cost of CMMC
Budgeting for CMMC involves understanding various cost factors including assessment, preparation, and implementation/remediation costs. For many contractors, CMMC certification cost also depends on how closely your environment already aligns with DFARS and NIST 800-171 requirements. Organizations that need to build or segment a secure enclave for handling CUI often face added expenses for configuration and upgrades to existing systems.
Costs can also rise when bringing in external consultants to support remediation or perform a readiness assessment before the formal audit—especially at the higher levels of CMMC, where controls are more stringent. And because compliance extends beyond your own network, contractors must also account for supply chain risk management, ensuring that subcontractors and vendors meet equivalent security standards.
Let’s break it down:
Key Cost Factors to Consider
Assessment Costs
Certified 3rd-Party Assessment Organization (C3PAO) audit costs for small- to medium-sized defense contractors typically range from $30,000-$40,000+. However, costs largely depend on factors including:
- Size of the organization
- Complexity of your network and system configuration
- Organization of documents and artifacts
- Total number of assets in scope
For larger, more complicated environments assessment costs can rise to $100,000+.
Infrastructure and Technology Investments
As with many things relating to your CMMC readiness journey, your company size and current cybersecurity posturing have a huge influence on your technology costs.
For small- to medium-sized businesses, the government estimates that the initial cost for necessary hardware and software would be around $27,500, with a recurring cost of $5,000. For larger organizations, the cost estimate is $140,000 in the initial year of implementation and $80,000 in annual recurring costs.
Remediation Costs
Most defense contractors will likely be focusing on remediation efforts compared to implementing a DoD-compliant infrastructure from scratch. Preparation costs for addressing security vulnerabilities and implementing necessary fixes typically range from $15,000-$50,000 for small- to medium-sized businesses.
Employee Training
The CMMC 2.0 final rule requires contractors to provide cybersecurity and CUI best practices training to their employees. The government provides access to online learning modules but your business may need more technical training for your employees, especially if you plan on achieving compliance in-house.
Some common training or certification programs are:
- CMMC Certified Professional certification ($475 first year costs, $250 annual renewal fee)
- CompTIA A+ certification ($506 for first-time test taker)
ISI Insight: Stipends may be available to reduce or cover the cost of training and certifications for veterans.
How Much Does CMMC Compliance Cost?
There are a lot of factors that will determine the total cost of CMMC compliance costs, including:
- Size of your company
- Current cybersecurity posturing
- Number of employees who work on defense contracts
- Achieving compliance in-house or working with an expert partner
That said, we advise our customers that the first year of implementation, remediation, and a formal C3PAO assessment is like going to cost six figures. We highly defense contractors to budget for more and find a partner like ISI to help reduce costs.
Tips for Cost-Effective CMMC Compliance
Plan Ahead
If you have not started your compliance journey, you’re at risk of being behind. CMMC contractual obligations are already being flowed down to subcontractors and the government is expected to begin the programmatic rollout in mid-2025.
That said, don’t rush through your compliance journey. Take time to plan and get it right the first time around. C3PAOs are largely booked out until July and August, so start building your compliance timeline and budget to achieve certification by the end of this calendar year.
Assume Third-Party Assessment
When the final CMMC 2.0 rule became effective, one of the lingering gray areas was on Level 2 self-assessments. Since then, more guidance has come out surrounding this topic and the truth is contractors seeking Level 2 certification should plan on a C3PAO assessment.
Due to the types of CUI defense contractors handle, a CMMC Level 2 (Self) certification is not going to position your business to bid on the vast majority of defense contracts. Additionally, prime contractors are likely going to flow down Level 2 (C3PAO) requirements, making Level 2 self-assessments practically obsolete.
ISI Insight: If your business handles CUI that falls within a Defense Organizational Index Grouping, a CMMC Level 2 (Self) certification does not apply to you.
Partner with Experts
DoD-specific compliance regulations are complex and ever-evolving. It’s a full-time job that requires a lot of time and attention many defense contractors don’t currently have. Working with an expert partner can help ensure your compliance investment outcomes are more predictable and streamlined.
If you’re considering partnering with an industry expert like ISI, ask the prospective service provider the following questions:
- Do you have a Registered Provider Organization (RPO) certification from the Cyber AB?
- Have you provided NIST 800-171 implementation or remediation projects in the past? If so, how many?
- Have they gone through and passed a CMMC Level 2 (C3PAO) audit for their own company? If not, do they plan to and when is it scheduled?
If the prospective partner says yes to all of these questions, you can be assured you’re working with a true partner with the experience and ability to support your compliance journey.
How ISI Defense Can Help You with CMMC Compliance
ISI is committed to providing industry-leading, value-driven solutions to ensure your cybersecurity posture is better today than it was yesterday. Here is what we have done to ensure your confidence heading into a Level 2 assessment:
- Achieved CMMC Level 2 (C3PAO) status, passing along the same, verified tool stack to our customers
- Completed 100+ NIST 800-171 remediation projects for defense contractors
- Certified by the Cyber AB as a Registered Provider Organization (RPO) with several Registered Practitioners (RP) and CMMC Certified Professionals (CCP) on staff
>> Schedule your complimentary CMMC consultation with a trusted advisor here!
