CMMC Compliance Costs: What DoD Contractors Need to Know

Disclaimer: This article was originally published in May 2023 and has since been updated to reflect current CMMC guidelines. 

CMMC compliance costs vary based on your company size, current security setup, timeline, and the CMMC level required by your contract. There is no set price because every defense contractor starts from a different place.

Phase I of CMMC implementation began in November 2025 and currently focuses on Level 1 and Level 2 self-assessments. In July 2026, the Department suspended the planned Phase II certification requirements while it reviews the program.

Contractors that handle Federal Contract Information (FCI) or Controlled Unclassified Information (CUI) may need to meet the applicable CMMC requirements included in their DoD contracts.

Intelligent Technical Solutions (ITS) has over 20 years of experience helping defense contractors. ITS Chief Risk and Compliance Officer Sean Harris, a CMMC Registered Practitioner, shares insights into the costs businesses may face as they prepare for and maintain CMMC compliance.

This article explains the factors that affect CMMC compliance costs, including:

• what drives CMMC compliance costs
• what costs keep going after certification

After reading, you’ll have a clearer idea of how to plan and budget for CMMC compliance.

What Drives CMMC Compliance Costs? 

Not knowing what affects CMMC compliance costs makes it impossible to know its accurate pricing.  

As Harris puts it: "It's like if you wanted me to renovate your house, and you're just sending me emails asking how much time and money it will take to bring my house to the latest building code standard." 

Considering this, below are some factors that affect CMMC costs: 

Company Size 

Bigger companies pay more because they are more complex. A company with 20 employees has fewer computers and systems than a 200-person company. 

CMMC costs vary widely based on your current security posture, assessment scope, required level, and the amount of remediation needed. A smaller company with strong controls already in place may spend less than a larger organization with more systems, users, and security gaps.

Official DoD estimates show that assessment-related costs can range from several thousand dollars for a Level 1 self-assessment to much higher amounts for Level 2 and Level 3. These estimates do not always include the full cost of remediation, new tools, or ongoing security improvements, so actual spending can vary significantly.

CMMC Preparation Timeline

Preparation time varies based on your current security posture, available resources, and the CMMC level required. Based on ITS guidance:

• Level 1 may take about 30 days to 4 months.
• Level 2 may take about 6 to 12 months.
• Level 3 may take 18 to 24 months or longer.

Organizations with stronger security controls already in place may move faster, while those with larger gaps may need more time for remediation, documentation, and assessment preparation.

Required CMMC Level

Each CMMC level protects different types of information and has different security requirements. According to the Federal Register:

• Level 1 includes 15 requirements aligned with FAR 52.204-21.
• Level 2 includes 110 requirements aligned with NIST SP 800-171 Revision 2.
• Level 3 includes the Level 2 requirements plus 24 selected requirements from NIST SP 800-172.

Higher levels may require additional security controls, documentation, training, and monitoring, which can increase compliance costs.

Related: 6 Proven Strategies to Improve CMMC Maturity Levels 

Current Security Setup 

Your current security setup can have a major impact on CMMC compliance costs.

Companies with up-to-date security tools, regular patching, reliable backups, and established security processes may have fewer gaps to address. Organizations with outdated systems or missing controls may need to invest more in remediation before completing the required assessment.

Harris shared this example: "We had a client that originally self-assessed with a score of 88, but after doing a thorough gap assessment, we found they were actually at negative 30."

This example shows why a thorough gap assessment can be important for budgeting. It can uncover security gaps that may otherwise lead a company to underestimate the time and cost needed to prepare for CMMC.

What Costs Continue After Initial Compliance?

CMMC can require ongoing spending after your initial assessment. Depending on your required level, costs may include recurring assessments, annual affirmations, security maintenance, training, and technology updates.

For ongoing assessments:

• Level 1: Annual self-assessment and annual affirmation.
• Level 2: Assessment every three years, either through a self-assessment for select programs or a C3PAO certification assessment when required, plus annual affirmation.
• Level 3: Government assessment every three years, plus annual affirmation.

Yearly Checks and Maintenance 

Ongoing CMMC costs depend on your environment, required level, current controls, and the amount of maintenance needed. Businesses may need to budget for activities such as annual affirmations, recurring assessments, staff training, documentation updates, security tools, monitoring, and remediation.

The DoD’s official cost analysis includes assessment, affirmation, and certain engineering costs, but it notes that actual implementation and maintenance expenses can vary by organization.

Training and Technology Costs 

Your staff must undergo comprehensive training on new security measures and how to respond to potential problems. 

Oftentimes, you also need to buy security tools, which include login protection systems, encryption tools, and threat detection platforms. 

Is CMMC Compliance Worth It? 

Whether CMMC compliance is worth the investment depends on the DoD work your business pursues and the requirements included in your contracts.

For applicable DoD contracts, contractors must meet the required CMMC status before award. During the current Phase I implementation, this primarily involves Level 1 and Level 2 self-assessments, while Phase II certification requirements remain suspended.

Getting Access to Contracts 

For applicable DoD solicitations, contractors must have a current CMMC status at the level required by the solicitation to be eligible for award. Prime contractors may also consider a subcontractor’s cybersecurity readiness when selecting partners.

Harris shared a related example of a company pursuing a security certification because a client required it before awarding a major contract: "We have a partner that went with a SOC certification recently. They actually have a big client right now. Their client said, 'if you get this, we will give you this contract.' And so, it was a very easy math problem for them. They went, ‘Fine, let’s do it.’"

He added: "And so, the costs are not that important. You want to make sure you're always getting the best value for your dollar, but it’s in perspective of the business cost."

The example shows why compliance investments should be weighed against the value of the contracts and business opportunities they support.

Better Security and Market Position 

Beyond contract requirements, the security practices used to support CMMC compliance can help strengthen your overall cybersecurity posture. Stronger controls may reduce the likelihood and impact of incidents that can lead to recovery costs, legal expenses, downtime, and reputational damage.

Even businesses that are not pursuing DoD work can benefit from stronger cybersecurity practices. Customers and business partners in many industries also review vendor security when evaluating potential relationships.

Read: CMMC MSP Security Standards: Is Compliance Necessary? 

Are You Prepared for CMMC Compliance Costs? 

CMMC compliance costs vary based on your company size, timeline, required level, and current security setup. Understanding these factors can help you plan for the assessments, remediation, and ongoing security work your contract may require.

Intelligent Technical Solutions has over 20 years of managed IT experience and specialized knowledge in CMMC. A compliance consultation can help you review your current environment, identify gaps, and better understand the potential cost of meeting your CMMC requirements.

Ready to learn your actual CMMC costs? Start with a CMMC compliance consultation with ITS.

Keep Learning About CMMC: 

• What Is CMMC 2.0, and Does It Apply to Your Business? 
• CMMC Compliance: Which Businesses Need Certification? 
• CMMC Self-Assessment: Can DoD Contractors Do It? 

Frequently Asked Questions About CMMC Compliance Costs 

Q: How much does CMMC Level 2 cost for small businesses? 

A: Level 2 costs vary based on your current security setup, assessment requirements, scope, and the gaps you need to address. Businesses with stronger controls already in place may spend less than those requiring significant remediation.

Q: Can I lower CMMC costs by hiring a company offering IT services? 

A: An experienced IT or compliance provider may help control costs by supporting tasks such as policy development, security improvements, documentation, and staff training. Actual savings depend on your current environment and the work required.

Q: What if my company fails a CMMC assessment after paying for it? 

A: If an assessment identifies unmet requirements, your organization may need to address those gaps before completing the required assessment process. This can add remediation, consulting, and reassessment costs.