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CMMC Bottleneck

coming

why early adopters are positioned for success

Insights based upon June 2026 Cyber AB Town Hall data.

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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: