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CMMC: The Importance of Security Compliance for Defense Contractors

January 26, 2026 | CMMC, Compliance

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TRANSCRIPT:

[Ava Baratz, Senior Consultant, Attest Services at BARR Advisory:]

Security in the Defense Industrial Base starts with accountability.

The Department of Defense (DoD) relies on a network of tens of thousands of private companies, collectively known as the Defense Industrial Base, or DIB, to support national defense. These organizations handle sensitive government information every day. If that information falls into the wrong hands, the consequences extend far beyond a single company. They can pose real risks to national security. That’s why the Cybersecurity Maturity Model Certification, or CMMC, was created.

CMMC was designed to ensure that every DoD contractor and subcontractor follows cybersecurity best practices that match the level of risk associated with their work. The goal is simple, but critical: protect sensitive government data across the entire defense supply chain.

So what does that mean for defense contractors today?

First, it means that cybersecurity is no longer optional or something that can be addressed later. CMMC applies to any organization that handles federal contract information, known as FCI, and controlled unclassified information, known as CUI.

FCI includes information related to government contracts, like contract details, RFPs, and other official communications.

CUI includes sensitive, but unclassified data, such as technical schematics, research data, and procedural documentation. While this information is technically not labeled as classified, if it’s exposed, it could still threaten national security.

CMMC doesn’t just apply to organizations that work directly with the DoD. If your business touches FCI or CUI in any way, you should expect to comply with CMMC requirements. That includes subcontractors and third-party vendors that support defense projects.

There are different levels of CMMC compliance that can apply to your organization depending on the sensitivity of the information you have access to.

Level 1 focuses on basic cyber hygiene. At this level, organizations must complete an annual self-assessment and affirmation of compliance with a list of 15 security requirements.

Level 2 is where most organizations start needing external validation. At this point, you must comply with the 110 security requirements in NIST 800-171. Depending on contract requirements, organizations must complete either a self-assessment or an external assessment by a CMMC Third-Party Assessor Organization, or a C3PAO, every three years.

Level 3 is reserved for the highest risk work. Organizations at this level undergo an assessment every three years by the Defense Industrial Base Cybersecurity Assessment Center, or DIBCAC. They must also provide an annual affirmation verifying compliance with additional requirements from NIST 800-172.

This tiered structure ensures that security expectations scale appropriately with risk while still holding every organization accountable.

The most important thing to take away from all of this is that a single breach at a small subcontractor can have cascading effects across the defense ecosystem. CMMC exists to reduce that risk by enforcing consistent cybersecurity maturity across the DIB. Compliance isn’t just about meeting a requirement; it’s about protecting national defense and maintaining eligibility for future DoD contracts.

Organizations that take CMMC seriously today are better positioned to secure contracts, protect sensitive data, and play a trusted role in the future of U.S. national defense.

Contact us for a free consultation.