The contracts and work opportunities you aim for as a small business are nearly within reach. In fact, the prime contracts awarded to small companies in 2024 totaled $183.27 billion.
If you’re a small business looking to work with the Department of Defense, there’s one thing you can’t afford to ignore: CMMC compliance. It’s not just a box to check—it’s a requirement to win or keep defense contracts.
Cybersecurity frameworks like CMMC can confuse small businesses, especially when juggling day-to-day operations without a big IT team. To help make sense of it all, we’ve broken down the basics of CMMC and what small businesses need to know.
In this article, we’ll walk you through exactly what CMMC means for your business, the different certification levels, and what you need to do to stay compliant and competitive.
Is CMMC Applicable to Small Businesses?
CMMC is a framework created by the Department of Defense (DoD) that sets cybersecurity standards for businesses that work with the DoD. These standards have been established to protect sensitive information and data from cyber threats.
While CMMC primarily aims at defense contractors and suppliers, it also applies to small businesses that work with larger prime contractors or directly with the DoD. Small businesses that handle Controlled Unclassified Information (CUI) or are involved in the DoD supply chain must also comply with CMMC requirements.
Even if your small business doesn’t deal with classified material, if you touch any kind of DoD data like project specs, system design, or communication, CMMC compliance is still mandatory.
What are the CMMC Requirements for Small Businesses?
The Cybersecurity Maturity Model Certification (CMMC) is a unified standard for implementing cybersecurity across the Defense Industrial Base (DIB). This model was created by the Department of Defense (DoD) to ensure that all contractors adhere to a consistent level of cybersecurity measures. The CMMC requirements were divided into five levels: basic cyber hygiene and advanced protection against sophisticated threats. However, CMMC 2.0 is now simplified to three levels.
CMMC level 1 is the basic level, which focuses on protecting Federal Contract Information (FCI). The information that is not intended for public release and has been provided by or generated for the government under a contract to develop or deliver a product or service.
CMMC level 2 is the intermediate level, which focuses on protecting Controlled Unclassified Information (CUI). This includes information requiring safeguarding or disseminating controls by laws, regulations, and government-wide policies.
Small and medium-sized businesses that handle CUI must meet the requirements set by CMMC level 2 to bid on DoD contracts.
CMMC Level 1 – Foundational (For FCI)
CMMC level 1 focuses on basic safeguarding requirements outlined in Federal Acquisition Regulation (FAR) Clause 52.204-21. An annual self-assessment is required for CMMC level 1 compliance.
Let’s go into more detail about CMMC level 1, the foundational level. An an
Access Control (AC)
CMMC level 1 has basic requirements for access control (AC). The users and devices must be authorized to access the system and its sensitive information.
Some key requirements for access control at CMMC level 1 include limiting system access to only authorized users, such as employees with a legitimate need to access the system. If an employee no longer requires access to the system, their access should be revoked promptly.
CMMC level 1 also requires organizations to limit access to authorized devices. Only approved devices should be allowed to connect to the system, and unapproved devices should not be able to access sensitive information.
Identification and Authentication (IA)
Identification and Authentication (IA) are essential to CMMC Level 1 compliance. It refers to organizations’ processes and procedures to ensure only authorized individuals can access their systems. This includes requiring unique user IDs and secure passwords for all users.
One of the primary objectives of IA is to prevent unauthorized access to sensitive information. CMMC level 1 requires organizations to implement strong identification and authentication controls to achieve this. One way to accomplish this is using unique user IDs and complex passwords.
Media Protection (MP)
Media Protection (MP) is another important aspect of IA that protects information stored on physical media. The media in this context refers to any physical device used for storing or transmitting sensitive information, such as hard drives, USBs, and other removable storage devices. MP aims to ensure that the confidentiality and integrity of information are maintained even when it is not being actively used or accessed.
Employees should limit access to physical media containing sensitive information and monitor its use. This can include implementing a sign-out system for devices or tracking the usage of USBs through logs. Additionally, any physical media no longer needed should be properly disposed of to prevent unauthorized access.
Physical Protection (PE)
Physical protection is another essential component of MP. It refers to the measures taken to safeguard physical assets, such as buildings, equipment, and other tangible items that contain sensitive information.
Access control systems, surveillance cameras, and alarms are examples of physical protection measures that can help prevent unauthorized access or theft of sensitive information. The physical protection component of MP also includes personnel training on maintaining a secure work environment and the proper use of physical protection measures.
System and Communications Protection (SC)
System and Communications Protection (SC) involves safeguarding the integrity, confidentiality, and availability of information. SC’s lifecycle includes establishing, implementing, assessing, and maintaining security controls to protect the system and its communications. These security controls include technical solutions such as firewalls, encryption, and intrusion detection systems.
Additionally, SC includes monitoring the system for unauthorized access attempts or malicious activity. Regular audits and vulnerability assessments are also essential for SC to identify any potential security weaknesses and address them promptly.
System and Information Integrity (SI)
As technology advances, so do cybercriminals’ methods to gain unauthorized access to systems and sensitive information. System and Information Integrity (SI) is a critical component in ensuring the security of any system or network. It involves maintaining data and systems’ accuracy, completeness, and reliability by defending against any malicious attacks or unauthorized modifications.
CMMC Level 2 – Advanced (For CUI)
CMMC Level 2 is an advanced level of certification for organizations that handle Controlled Unclassified Information (CUI). It requires the implementation of 110 security practices from NIST SP 800-171, which are divided into 14 control families. These practices focus on protecting CUI against any malicious attacks or unauthorized modifications.
To achieve CMMC Level 2 certification, organizations must have a System Security Plan (SSP) in place and develop a Plan of Action and Milestones (POA&M) to address any security gaps.
Here are 14 control families that organizations must adhere to to become CMMC Level 2 certified.
Access Control
Access control is managing and regulating access to resources within a system. A limited access control system ensures that only authorized users can access the data and resources necessary for their job functions. Access control measures should be implemented at all levels, including physical, network, and system access.
Awareness and training
The best security measures can be easily compromised if employees are unaware of potential threats and how to handle them. The first line of defense in any organization is its employees; therefore, it is essential to provide them with the necessary awareness and training. This includes educating them about safe practices, potential risks, and how to handle sensitive information.
Audit and accountability
No matter how robust an organization’s security measures are, there is always a possibility of a breach. In such cases, having a system in place to track and audit activities can help identify the source of the breach and mitigate any further damage. Logging all relevant information, such as user activity, system access, and changes made to security settings, can aid in identifying any suspicious or unauthorized activities.
Configuration management
Configuration management involves maintaining an accurate inventory of all hardware and software assets within an organization’s network. This includes keeping track of all devices, applications, and updates, as well as their configurations. Proper configuration management can help prevent vulnerabilities caused by outdated or misconfigured systems.
Identification and authentication
Identification and authentication are essential components of a secure network. Identification is verifying a user’s identity by requiring them to provide specific credentials, such as usernames and passwords. Authentication involves validating those credentials to ensure the user is who they claim to be before granting access to resources or information.
Incident response
Incident response is the process of rapidly identifying, responding to, and resolving security incidents that occur within a network or system. A security incident is any event that disrupts or compromises a network or system’s confidentiality, integrity, or availability.
Incident response aims to minimize the damage caused by a security incident and restore normal operations as quickly as possible. It involves a coordinated effort from various IT, security personnel, legal teams, and management teams.
Maintenance and improvements
Apart from responding to security incidents, incident response involves ongoing maintenance and improvements to prevent future incidents. The incident response team should regularly review and analyze past incidents to identify any common patterns or vulnerabilities that can be addressed proactively. Conducting security audits, implementing new security measures, and updating existing security protocols are some examples of proactive maintenance and improvements.
Media protection
In the era of digitalization and remote work, protecting sensitive data is more important than ever. Media protection refers to measures taken to secure physical storage devices such as laptops, USB drives, and external hard drives from unauthorized access or theft. Incident response teams should ensure that all media containing sensitive information is encrypted and password-protected. It is also recommended to have strict policies in place for handling and disposing of media once it is no longer needed.
Physical protection
Physical protection includes storing media securely, such as a locked cabinet or safe, when not in use. It also involves limiting physical access to the media, such as having designated personnel responsible for handling and accessing it. Additionally, physical protection includes proper disposal of media, such as shredding or degaussing hard drives and incinerating optical media.
Personnel security
The employees or personnel who handle media should also be trained on proper handling and disposal procedures. When hiring new employees, background checks should be conducted to ensure they have a trustworthy past and are not a potential threat to the organization’s sensitive information. Regular security awareness training for all employees can also help prevent insider threats.
Risk assessment
Before disposing of any media, a risk assessment should be conducted to identify potential security risks and vulnerabilities arising from improper disposal. The evaluation should consider factors such as the type of information stored on the media, the level of sensitivity, and the potential impact if it falls into the wrong hands.
Security assessment
The network, systems, and devices the organization uses should also undergo regular security assessments to identify any vulnerabilities that malicious insiders could exploit. This includes identifying weak spots in the network, open ports and services, outdated software or hardware, and any misconfigurations that could leave the organization’s systems open to attack.
System and communication protection
Encryption of all sensitive data in transit and at rest, strict access controls for systems and devices, and secure protocols for remote connections are all essential for protecting organizational systems and data. Additionally, implementing firewalls, intrusion detection systems, and other security measures can help prevent unauthorized access and malicious activity. Regular patching and updating systems and applications can also help mitigate vulnerabilities and keep systems secure.
System and information integrity
System and information integrity refers to the ability of a system and its data to remain accurate, complete, and available in all stages – at rest, in transit, and during processing. It is an essential aspect of cybersecurity that ensures the reliability and trustworthiness of organizational systems and data.
Conclusion
CMMC requirements for small businesses aren’t just about checking boxes—it’s about securing your place in the defense industrial base and protecting the sensitive data you handle. The right CMMC level ensures you’re meeting the government’s minimum cybersecurity expectations—and signaling to potential partners that you’re serious about security.
For businesses handling FCI, CMMC Level 1 requires straightforward, foundational cybersecurity practices like limiting access, using strong passwords, and keeping systems updated. While the 17 practices are relatively simple, they create a baseline defense that protects you and your clients from common cyber threats.
If your business handles CUI, CMMC Level 2 brings a deeper responsibility. Implementing all 110 practices from NIST SP 800-171, each control serves a vital purpose. They’re active defense strategies designed to help small businesses safeguard sensitive information and ensure long-term viability.
To move forward as a small business,
- Conduct a gap analysis to compare your current cybersecurity posture with the required level.
- Create or update your System Security Plan (SSP) and define steps to close any gaps with a POA&M.
- If aiming for Level 2, prepare for a third-party audit or self-assessment depending on your contract type.
- Train your team and build a security-first culture across your organization, even if you’re small.
If you are a small business owner, Sync Resource provides a step-by-step guide to help you improve your cybersecurity posture and meet the requirements for government contracts. These steps include conducting a gap analysis, creating or updating your System Security Plan (SSP), preparing for audits or self-assessments, and training your team on cybersecurity best practices.
