Small Contractors Share Where They Stand on CMMC

Alluvionic surveyed small defense contractors to understand their CMMC readiness. The results highlight awareness gaps, cost concerns, and slow timelines.

CMMC Readiness: Insights from the DIB

Alluvionic recently conducted a focused survey of small Defense Industrial Base (DIB) contractors to assess their progress toward compliance with the Cybersecurity Maturity Model Certification (CMMC) 2.0. The goal: understand where companies stand, what challenges they face, and how they’re preparing for upcoming DoD requirements.

Participants included small contractors—primarily under $100 million in annual revenue—who work with the Department of Defense and may be subject to handling Federal Contract Information (FCI) or Controlled Unclassified Information (CUI).

Here’s what the data revealed.

Key Finding 1: Many Contractors Still Unsure About Their CMMC Level

Nearly one-third of respondents said they do not know which CMMC level applies to their organization.

This is significant because the level determines the path to compliance:

Level 1 (FCI): Self-assessment permitted
Level 2 (CUI): Requires third-party certification by a C3PAO

Without this clarity, it’s difficult for contractors to know what scope, documentation, or cybersecurity measures are required.

Key Finding 2: Organizations Have Not Taken Sufficient Readiness Steps

A majority of respondents have not completed key components of the CMMC process. Specifically:

56% have not completed a gap analysis
70% have not deployed compliant technical solutions
50% have not documented their cybersecurity policies

These steps are foundational to understanding current cybersecurity maturity and aligning with the appropriate CMMC level.

Key Finding 3: Cost and Timelines Are Common Concerns

For those pursuing Level 2 certification, the estimated annual cost to sustain compliance exceeds $120,000.

Additional statistics:

40% of Level 2-focused contractors have already spent over $100,000
73% have been working on CMMC preparation for more than a year
About one-third have spent over three years on the effort

These findings suggest that contractors may be underestimating the planning and resourcing needed for compliance, particularly when it comes to staffing, documentation, and infrastructure.

Key Finding 4: Compliance Impacts Business

Although CMMC has not yet been fully phased into all DoD contracts, 15% of respondents reported already losing business opportunities due to unmet cybersecurity requirements.

That said, many are already seeing positive returns:

42% say they have greater peace of mind as a result of their CMMC efforts
38% have experienced business development benefits

These responses highlight the link between CMMC readiness and contract competitiveness.

Final Takeaways

The survey underscores a few consistent themes across the small contractor space:

Clarity is needed on how to determine the appropriate CMMC level
Many organizations are still early in their preparation
Cost and complexity are real barriers, especially for Level 2
Contract risk is real for those who delay

With enforcement tied to the CMMC Final Rule, the findings point to the need for structured planning and early action, especially for organizations handling CUI.