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CMMC Final Rule: What It Means for Defense Contractors

CMMC Final Rule: What It Means for Defense Contractors

After nearly four years, the Department of Defense (DoD) has finalized its rulemaking around the Cybersecurity Maturity Model Certification (CMMC). The update to 48 CFR cements CMMC into federal contracting, creating a new era of accountability for the Defense Industrial Base (DIB).

The Latest Updates

  • Effective Date: The rule takes effect November 10, 2025 (60 days after publication).

  • Contract Requirement: Contractors must have the appropriate level of CMMC compliance posted in SPRS at the level required by the solicitation to be eligible for the award.

  • Conditional Certifications: Levels 2 and 3 contractors may operate under a conditional certification for up to 180 days while closing out POA&Ms.

  • Subcontractor Flowdown: Requirements extend to subcontractors that handle FCI or CUI.

  • Exclusions: COTS-only contracts remain outside CMMC scope.

  • Timeline: DoD will phase in requirements, but by year three, CMMC will be included in all applicable contracts.

Why It Matters for Contractors

Eligibility to bid on contracts is now tied directly to compliance. If you’re not compliant, you can lose your existing contracts and the ability to secure new ones. This could result in a major blow to your bottom line and competitive differentiator.

Your eligibility to bid on and maintain existing contracts now depends on compliance. If you are not compliant, you risk losing current contracts as well as future opportunities.

The Strategic Advantage

  • Risk Management: CMMC brings cybersecurity into the core of supply chain risk oversight. Contractors that get ahead will be viewed as more reliable partners.

  • Operational Discipline: While contractors have always been required to post SPRS scores, CMMC raises the bar by requiring formal certification from a C3PAO for certain companies. This creates true accountability and ensures compliance is enforced.

  • Business Impact: For some small and mid-sized contractors, the cost of compliance may feel steep, but the long-term cost of exclusion from DoD contracts is far greater.

Your Next Steps

  1. Assess Your Current State– Identify gaps against the appropriate CMMC Level (1–3).

  2. Develop a Roadmap– Prioritize remediations and leverage POA&Ms strategically.

  3. Engage Early– Don’t wait for your contracts to mandate it. Build readiness now.

  4. Partner with a Registered CMMC Vendor Work with experts who can guide you through compliance and help secure your contracts.

Bottom Line: CMMC is here to stay, and the defense supply chain must recognize compliance as a business imperative. Those who move quickly have a better chance of staying eligible for awards, as well as building trust, resilience, and having the upper hand in a tightening market.

The team at Clark Schaefer Consulting helps contractors interpret these changes, prepare for assessments, and implement sustainable cybersecurity practices that go beyond compliance. Contact us today to assess your current state, develop a roadmap, and start your CMMC readiness plan.

Expert Contributors

Carly Devlin

Shareholder, Chief Information Security Officer
We're always excited to address challenges for our clients and to bring the best solutions for their situation to the table.
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