CMMC Bottleneck
coming
why early adopters are positioned for success
Insights based upon June 2026 Cyber AB Town Hall data.

June 2026 cmmc Updates
As of July 13, 2026, the Department of War (DoW) has suspended Phase II of the phase implementation of CMMC 2.0.
As a result, CMMC Level 2 (C3PAO) and Level 3 (DIBCAC) certifications will not be included in new contract solicitations and existing opportunities will be modified to reflect this change.
However, the CMMC ecosystem still exists. Companies still in the assessment queue are able to achieve Level 2 (C3PAO) certification and be eligible for new contract opportunities. As many companies still exist in the queue, we will continue to monitor ecosystem growth as well as any regulatory updates that come from the 60-day review.
Here is where the ecosystem stands as of June 30, 2026:
1,717
level 2 (c3pao) certifications
107
approved c3paos
1,013
cmmc certified assessors (cca)
full compliance Projection: January 2032
supply chain pressure is building
We're 18 months into the CMMC 2.0 program. To date, just 1.5% of companies in need of a Level 2 (C3PAO) certification have done so.
That matters.
As contract requirements expand later this year, limited certified supplier availability will begin impacting both prime and subcontractor competitiveness.
Why Progress Remains Constrained
Certification output is driven by two variables:
- Assessor capacity
- Contractor readiness
In June:
279 certifications were completed.
But the ecosystem had capacity for 2,024.
That’s just:
13.8% capacity utilization.
And this is not a one-month anomaly — average utilization has remained below 10% since program activation.
The bottleneck isn’t just the number of assessors.
It’s a general lack of readiness that might force assessors to focus on advisory roles and mock assessments, further reducing formal assessment capacity.
Schedule a complimentary call with one of our advisors to discuss your compliance strategy.
phase 2 outlook
ecosystem readiness for level 2 requirements
This November, CMMC Level 2 (C3PAO) requirements will be the focus of the government's phased rollout. Certification momentum will continue, but supplier readiness concerns will persist.
Even under optimistic assumptions, small- and mid-sized primes will likely face sourcing pressure as certified supplier pools remain thin.
3,563
Projected cumulative assessments
~3%
Projected level 2 compliance Across defense contractors
WHAT THIS MEANS FOR CONTRACTORS
If compliance timelines extend, or if supplier readiness lags, competitive positioning narrows quickly. Those with certification will mitigate risks of losing out on contract opportunities, supply chain removal, and False Claims Act exposure.
Contractors finalizing 2026–2027 supply chain strategy should be modeling:
- Certification timing
- Assessment queue risk
- Supplier readiness exposure
- Revenue compression scenarios
This is no longer a compliance discussion.
It’s a market timing discussion.
Additional cmmc resources
Purpose-built for defense contractors.
If misconceptions around contract and remediation timelines are slowing progress for you and your suppliers, start here:
Dig Deeper
Get more insights into CMMC 2.0
CMMC for FSOs Guide
Steal our cmmc level 2 strategy
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