The Ultimate IT Compliance Checklist for Milwaukee Businesses

by Nadya Shkurdyuk | Oct 29, 2025 | Compliance

Compliance affects so many aspects of a business: insurance eligibility, client retention, contracts, partnerships, and even whether you are allowed to bid on certain manufacturing or government projects. Whether you manage patient records, financial data, employee information, or vendor credentials, data protection requirements apply to your business in some form.

This guide gives you a clear view of the compliance landscape, the regulations that matter most in Wisconsin, what your business needs to do to stay compliant, and how to turn compliance from a risk into an advantage.

1. Why Compliance Matters

Compliance is not just about avoiding penalties. It is about protecting your business, safeguarding your relationships, and building trust with the clients you serve.

Here is why it matters:

Reason	What It Means in Real Life
Cyber insurance	Most policies now require MFA, backups, encryption, and recovery plans before coverage
Contract eligibility	Manufacturers, healthcare networks, and financial services often require proof of controls
Client retention	Clients increasingly ask for security questionnaires, SOC reports, or compliance attestations
Risk reduction	Strong compliance practices help prevent both cyberattacks and operational failures
Regulatory protection	HIPAA, FTC, GDPR or CMMC violations can result in heavy fines and legal action

Compliance is no longer optional for companies with sensitive data, vendor access, or regulated clients. The question is whether your systems and documentation are audit-ready.

2. Key Regulations That Milwaukee Businesses Should Understand

Not every business is governed by the same frameworks, but most fall under at least one of these:

Regulation	Who It Applies To	What It Covers
HIPAA	Medical, dental, billing, labs, insurance, managed service providers handling PHI	Protected Health Information, data handling, breach response, access control
CMMC	Manufacturers, contractors, engineering firms that work with the U.S. Department of Defense	Controlled Unclassified Information (CUI), cybersecurity maturity, documentation
GDPR	Any U.S. business holding personal data of EU citizens or processing EU transactions	Privacy rights, consent, data storage, exporting, reporting
FTC Safeguards Rule	Financial institutions, dealerships, tax preparers, loan providers, credit brokers	Data protection, risk management, access controls, incident response
Wisconsin data breach notification laws	All businesses	Customer notification requirements, legal reporting timelines
Cyber Insurance Underwriting Controls	Any business purchasing or renewing cyber liability insurance	MFA, endpoint protection, backup testing, security awareness, recovery plans

If your business handles personal, financial, medical, proprietary, or manufacturing data, one or more of these frameworks apply.

3. IT Compliance Checklist: What Needs to Be in Place

This checklist is designed for small and mid-sized Milwaukee businesses. It covers both technical controls and documentation requirements.

Data Security and Access Control

Multi-factor authentication (Microsoft 365, servers, VPN, core apps)
Unique user logins. No shared accounts
Role-based access (only access to what is necessary)
Automatic account disabling for former employees
Least privilege permissions

Risk and Compliance Documentation

Written Information Security Policy (WISP)
Incident response plan
Backup and disaster recovery plan
Acceptable Use Policy (AUP) for staff
Data retention and disposal policy
Cyber insurance coverage review

Backup and Recovery

Automatic daily backups of servers, devices, and cloud apps
Off-site or cloud-based backup copy
Immutable backups for ransomware resilience
Regularly tested restore procedures with documented results

Endpoint, Email, and Network Protection

AI-driven endpoint security (SentinelOne, Huntress, Microsoft Defender)
Email phishing protection and domain authentication (SPF, DKIM, DMARC)
Secure firewall with logging and threat monitoring
Encrypted remote access and VPN protection

Security Awareness and Training

Annual cybersecurity training for all employees
Phishing simulation testing
Leadership training on cyber insurance and breach procedures

Vendor and Cloud Compliance

Review security practices of vendors, cloud apps, payroll, CRM, EMR, ERP
Documented Business Associate Agreements (BAA) if applicable
Third-party access controls for maintenance providers

Incident Response & Reporting Readiness

Defined response team and communication protocol
SEC, HIPAA, DoD, FTC, or Wisconsin state breach reporting requirements
Logging and audit trails for systems and user access

You do not need to implement everything at once. But you do need a roadmap that lines up with your risk level, industry requirements, and insurance expectations.

4. Consequences of Non-Compliance

It is not just about fines. The bigger issues are financial disruption, legal exposure, and loss of reputation.

Risk	Real-World Impact
Cyber insurance claim denial	Business pays out-of-pocket for recovery, legal, and ransom costs
Lost contracts or bids	Disqualified from DoD, manufacturing, healthcare, or financial industry work
Lawsuits or regulatory penalties	HIPAA, FTC, or GDPR fines ranging from thousands to millions
Downtime and operational disruption	Lost productivity, supply chain delays, billing delays, missed deadlines
Client or partner distrust	Loss of accounts due to perceived negligence

Businesses that cannot demonstrate compliance often struggle to compete, even if they have strong operations.

5. How Centurion Helps with Compliance

We focus on practical, real-world compliance designed for Wisconsin SMBs, not enterprise-sized frameworks that do not apply.

Here is how we help:

Need	How Centurion Supports
Assessment	Compliance readiness audit with written risk report
Documentation	We help create policies, runbooks, and access logs
Tools	Backup, encryption, EDR, MFA, reporting, and vendor review
Implementation	We deploy, configure, and manage compliance tools
Testing	We schedule periodic backup and recovery testing
Evidence	Compliance documentation for cyber insurance, HIPAA, FTC, CMMC

We do not simply hand over templates. We help your business build a compliance environment that is understandable, maintainable, and audit-ready.

Get Your Compliance Readiness Review

Not sure how compliant your business actually is? Want to know what an auditor, cyber insurer, or legal contract reviewer would see?

Centurion offers a Compliance Readiness Review for Milwaukee businesses that includes:

✔ Risk assessment and compliance scoring
✔ Documentation and policy review
✔ Cyber insurance alignment and readiness analysis
✔ Gap analysis with practical, prioritized steps
✔ Compliance roadmap you can share with leadership

No pressure. No generic report. Just clarity and direction.

👉 Request your Compliance Readiness Review

Inside the Shadow AI Economy: Why Your Employees Are Already Ahead of You

by Nadya Shkurdyuk | Aug 28, 2025 | Business IT Best Practices, Compliance, Cybersecurity

When MIT released its Project NANDA report this summer, headlines fixated on a startling figure: 95% of enterprise AI projects fail to deliver meaningful results. For Wall Street, it was a warning flare about overhyped technology. For business leaders in Milwaukee and beyond, it raises a sharper question: if companies are spending millions on AI but getting nothing back, who actually is making AI work?

The answer might not be who you think.

AI in the Shadows

The MIT researchers discovered a parallel economy thriving just below the radar of CIOs and CFOs: the Shadow AI economy. While multimillion-dollar deployments stall in pilot purgatory, employees across industries are quietly turning to consumer-grade tools like ChatGPT, Claude, and Midjourney to speed up their work.

They’re writing proposals faster, automating spreadsheets, drafting reports, and even brainstorming new product ideas, often without approval, and sometimes against policy. According to the study, more than 90% of employees already use AI in some form. Most never reported it to IT.

The irony? Workers are realizing measurable productivity gains while corporate projects crumble under the weight of bureaucracy and over-engineering.

Why Big Projects Fail—And Small Ones Win

Official AI rollouts often collapse under familiar pressures: governance slowdowns, tool sprawl, integration nightmares. By the time a solution gets to the frontline worker, it’s clunky, fragmented, and outdated.

Employees, on the other hand, gravitate toward what works. Consumer tools are fast, flexible, and relentlessly improved. For the people doing the work, the choice is obvious.

This tension is driving the quiet divide: companies that ban AI risk losing ground to competitors who learn to govern it instead.

The Hidden Business Case

Buried in the MIT report was another overlooked insight: the biggest payoffs aren’t in flashy front-end pilots but in back-office operations. Document processing, compliance reporting, customer service workflows, and other areas that were once considered too mundane to innovate are now prime targets for AI automation.

Organizations embracing AI in these areas are already seeing annual savings in the millions, without cutting staff. For small and mid-sized businesses, that translates into efficiency gains that can reshape margins and free up teams to focus on growth.

So What Should Leaders Do?

The message is clear: pretending Shadow AI doesn’t exist is a losing strategy. Employees are already bringing these tools into the workplace. The real question is whether leadership chooses to get ahead of it—or wait for compliance violations, data leaks, or client trust issues to force the conversation.

That’s where a structured Shadow AI Audit comes in. It’s a way to bring daylight to what’s already happening inside your business: mapping usage, uncovering risks, and, critically, pinpointing the hidden wins you can scale safely.

Bringing AI Into the Light

At Centurion Data Systems, we’ve seen this pattern unfold across Greater Milwaukee’s SMB landscape: manufacturers, healthcare groups, financial firms. Employees lean on AI because it helps them do their jobs better. Leadership hesitates and worries about risk. The companies that bridge that divide by governing Shadow AI without crushing it are the ones unlocking real value.

That’s why we launched our Shadow AI Audit. It’s designed to help local businesses turn Shadow AI from a liability into an advantage: safely, securely, and with measurable ROI.

Because AI isn’t failing. It’s the way enterprises are trying to use it that’s broken. The workers have already proven it works. Now it’s time to meet them halfway.

The Ultimate IT HIPAA Compliance Checklist for Milwaukee Businesses in 2025

by Nadya Shkurdyuk | Aug 18, 2025 | Compliance

HIPAA compliance has always been important, but 2025 marks a turning point.
For Milwaukee’s healthcare practices, dental offices, imaging centers, and business associates, new federal updates are reshaping how data protection is measured and enforced.

In January 2025, the Department of Health and Human Services (HHS) introduced the first major update to the HIPAA Security Rule in more than ten years. The proposed rule makes encryption, multi-factor authentication (MFA), and regular vulnerability testing clear expectations for any organization handling electronic protected health information (ePHI).
You can read the full HHS proposal here: https://www.hhs.gov/hipaa/for-professionals/security/hipaa-security-rule-nprm/factsheet/index.html.

Local businesses that handle patient data can no longer assume that “basic IT security” is enough. Maintaining compliance now directly affects your ability to renew cyber-insurance policies, satisfy vendor audits, and maintain patient trust.

This checklist gives Milwaukee business owners a step-by-step way to review where they stand today and what actions to take to stay ahead of 2025 requirements.

What’s Changing in 2025

Federal Developments

Proposed Security Rule Update (January 2025)
The HHS proposal removes the “addressable vs. required” distinction and sets clear requirements for MFA, full encryption, annual penetration testing, and vendor oversight.
→ Source: HHS.gov Fact Sheet on the HIPAA Security Rule NPRM
→ Additional analysis: Barr Advisory summary of 2025 HIPAA Security Rule changes
Privacy Rule Adjustments (June 2025)
A U.S. District Court vacated parts of the 2024 Privacy Rule concerning reproductive-health data, but HHS continues to treat that data as highly sensitive until a new rule is issued.
→ Source: HHS Reproductive Health Privacy Guidance
Stronger Enforcement and Penalties
The Office for Civil Rights (OCR) is prioritizing cases where organizations have failed to perform formal risk assessments or maintain technical safeguards.
→ Source: Reuters Legal Analysis, April 2025

Wisconsin and Local Context

Wisconsin follows HIPAA as the foundation for patient data protection, with additional requirements under Wis. Stat. § 146.82 (Confidentiality of Patient Health Care Records).
This means Milwaukee-area healthcare providers and IT vendors must not only comply federally but also ensure that all business associates and subcontractors protect patient data to the same standard.

Who Needs to Pay Attention

HIPAA applies to Covered Entities (such as healthcare providers, health plans, and clearinghouses) and Business Associates (vendors or service providers that create, receive, maintain, or transmit PHI).

In Milwaukee, that includes:

Local medical and dental practices
Imaging centers and diagnostic labs
Behavioral health clinics and therapy offices
Chiropractors and physical therapy practices
IT service providers, MSPs, and hosting companies supporting healthcare organizations

If your company touches patient data in any way, you share responsibility for safeguarding it. Compliance is not just a legal requirement; it’s a sign of professionalism and trust.

The Complete HIPAA IT Compliance Checklist

1. Governance and Policy

Appoint a Security Officer and Privacy Officer.
Keep written privacy and security policies, reviewed at least once a year.
Maintain current Business Associate Agreements (BAAs) with all vendors.
Update policies to include MFA, encryption, and annual security testing.
Report compliance status to ownership or leadership each year.

2. Risk Analysis and Asset Inventory

Maintain an inventory of every system and device that handles ePHI.
Conduct formal risk assessments annually and after major system changes.
Document how data moves inside and outside your network.
Score each risk by likelihood and potential impact, and create mitigation plans.
Keep all documentation for at least six years, as HIPAA requires.

3. Technical Safeguards

Encrypt all ePHI, whether stored or transmitted.
Require MFA for all users with administrative or remote access.
Enable detailed access logs and review them monthly.
Perform vulnerability scans every six months and penetration tests annually.
Segment your network to separate ePHI systems from other business traffic.
Securely dispose of drives, devices, and media that once stored ePHI.

4. Administrative Safeguards

Train every employee on HIPAA and cybersecurity basics each year.
Apply role-based access control and revoke credentials immediately upon termination.
Maintain a business continuity and disaster recovery plan, tested annually.
Keep an incident response plan and conduct periodic tabletop exercises.
Include cybersecurity and breach notification clauses in all vendor contracts.

5. Physical Safeguards

Restrict physical access to servers and storage rooms.
Log all visitors and vendors entering sensitive areas.
Lock or auto-logout all workstations when unattended.
Properly destroy paper and electronic media that contain PHI.
Review building access controls and cameras annually.

6. Privacy Rule and Data Use

Post an updated Notice of Privacy Practices and distribute it to patients.
Ensure patients can access or request amendments to their records within 30 days.
Apply the “minimum necessary” principle for all disclosures.
Obtain written authorization before using PHI for marketing or other non-treatment purposes.
Review Wisconsin’s state privacy laws for added obligations.

7. Breach Response and Reporting

Define how your organization identifies and classifies breaches.
Notify affected individuals, HHS, and media (if required) within 60 days.
Document every incident, investigation, and resolution.
Retain breach documentation for at least six years.
Build a relationship with local IT forensics and legal partners for faster response.

8. Continuous Improvement

Perform internal HIPAA audits every year.
Track metrics such as employee training completion and vendor compliance.
Fix issues quickly and document remediation.
Subscribe to HHS OCR updates and Wisconsin healthcare bulletins.

Implementation Roadmap for Milwaukee Businesses

Phase	Focus	Key Milestones
Phase 1 (0–60 Days)	Immediate Risk Reduction	Complete a risk assessment, enable MFA, and encrypt all devices and backups.
Phase 2 (60–120 Days)	Operational Readiness	Update policies, retrain staff, and renew vendor BAAs.
Phase 3 (Ongoing)	Long-Term Compliance	Conduct annual audits, refresh training, and update plans as new rules are finalized.

For most small and mid-sized Milwaukee businesses, partnering with a local IT and cybersecurity provider simplifies compliance. Regular reviews and documentation keep HIPAA readiness part of everyday operations rather than a once-a-year scramble.

Final Thoughts

HIPAA compliance does not have to be complicated.
Start with documentation, address one area at a time, and keep improving.

Milwaukee businesses that act early will have fewer challenges when the 2025 Security Rule becomes law. They’ll also gain a stronger cybersecurity posture and lower insurance risks.

At Centurion Data Systems, we help local organizations simplify compliance and secure their operations without disruption. If you’re unsure where to begin, we can walk you through the process.

Let’s make sure your business is protected before the next renewal cycle. Reach out today to schedule a consultation.

Your ChatGPT Chats Might Be on Google: Why This Is a Problem for Your Business and How to Fix It

by Nadya Shkurdyuk | Aug 1, 2025 | Business IT Best Practices, Compliance, Cybersecurity

Recent reports from Tom’s Guide and Fast Company confirm that private ChatGPT conversations are appearing in Google search results. For individuals, that’s alarming. For business owners, it’s potentially catastrophic.

Imagine an employee using ChatGPT to draft a financial forecast, troubleshoot a security issue, or brainstorm a client project – and that conversation becomes publicly accessible online. That’s not just an embarrassing privacy slip. It’s a potential data breach, a compliance violation, and a reputational risk rolled into one.

If you think it’s only tech-savvy employees using AI, think again. These tools have quietly made their way into marketing, finance, HR, and customer support. Many business owners don’t realize how much company data is already passing through AI tools—sometimes without any oversight.

How Did This Happen?

ChatGPT conversations don’t automatically appear on Google. The issue comes from shared conversation links in ChatGPT. Users can create shareable URLs for their chats, often to collaborate with coworkers, or between personal and work accounts, or during document work. If those links aren’t locked down or get posted publicly (e.g., on blogs, forums, or shared documents that are indexed), Google and other search engines can crawl and index them.

This means what was intended as a simple collaboration step can quickly turn into a public data leak. Employees often don’t realize this risk because they assume that since they’ve signed into an account, especially if the account is paid, that their conversations are always private, even if they opted to make the conversation link “discoverable by anyone.” Random people out there don’t know that the link exists, right? Correct. But search engines do. They can now crawl and index it. The result: internal conversations—sometimes containing sensitive client or operational information—can show up in a basic web search.

Since the issue was reported by Fast Company, there have already been updates that Google and OpenAI are working together on solving this issue. OpenAI CISO Dane Stuckey announced that the feature to share chats in web searches would be removed from the ChatGPT app. The cached chats may still be showing up in search while they’re working with Google to remove it.

However, there are currently no guarantees released that some chat that ended up is search engine’s caches, may not show up, ever. And, more importantly, there is always a risk of things like that happening in the future. Not this exact issue, perhaps, but something completely unforeseen.

Business Impact: Why Owners Should Be Concerned

This isn’t just an IT issue. It’s a business risk with multiple layers:

Client Trust: If client information appears in a public ChatGPT chat, you risk losing accounts and damaging relationships.
Compliance Violations: For industries under HIPAA, GDPR, or financial regulations, exposing data via AI tools can trigger audits and fines.
Competitive Exposure: AI chats often include details about pricing models, sales strategies, or product roadmaps. That’s exactly the kind of intelligence competitors love to find.
Reputation Damage: Even if content is removed later, archived pages and screenshots can live on. Prospects, partners, and investors doing due diligence may find them long after you’ve taken action.

What makes this problem unique is that it often happens without malicious intent. Employees are just trying to be efficient. But unmonitored AI use can turn into an expensive problem for your business.

Shadow AI – The Hidden Risk

“Shadow IT”—when employees use unapproved software—has been a known security risk for years. AI has now amplified it, giving rise to shadow AI. Employees sign up for free AI accounts, often with personal email addresses, and use them for work tasks. These accounts bypass IT controls, data policies, and compliance standards.

Why do employees do this? Because AI makes their work easier and faster. The problem is that these AI chats may contain proprietary data, customer details, or internal processes. Since no one is monitoring these tools, sensitive information can end up outside company oversight—sometimes even indexed publicly.

If your business doesn’t have a defined AI usage policy, chances are you already have shadow AI operating within your organization.

What’s Already Out There About You or Your Team?

Before assuming your company is safe, take a moment to check what’s public. Try searching Google for your company name, product names, or unique phrases you know exist only in internal documentation.

If you see unexpected results, that’s your first red flag. Set up Google Alerts with your brand name plus terms like “ChatGPT” or “ShareGPT” to monitor future exposures.

Finding indexed ChatGPT conversations tied to your business isn’t just a technical issue—it’s a leadership issue. These conversations may already have been archived or scraped by third parties, making removal more complicated. That’s why understanding and controlling your team’s AI usage is critical.

How to Secure Your Personal ChatGPT Conversations

If you’ve ever shared or saved ChatGPT conversations, start by making sure they’re not indexed publicly. Tom’s Guide outlined how to check and delete them, but here’s a simplified version:

1. Check if your conversations are indexed:
Search Google for your name or unique phrases you remember using in a ChatGPT conversation. If you see your ChatGPT link (often starting with https://sharegpt.com/), it’s public.

2. Delete shared chats you no longer need:
Open your ChatGPT account, go to “Shared Links,” and delete any you don’t want public. This instantly removes access to those chats.

3. Turn off conversation history:
Inside ChatGPT settings, toggle “Chat History & Training” off. This prevents your chats from being stored and used for AI training and keeps them more private.

4. Avoid sharing sensitive data in any AI chat:
Treat AI conversations like email: once it’s shared, you lose control.

How to Secure Your Business From AI Data Leaks

Personal cleanup is only half the solution. For business owners, the bigger issue is controlling how employees use AI. Here’s what to do:

1. Create an AI usage policy immediately
Even a basic one is better than none. Define what kind of company information is acceptable to use in AI tools and what is strictly prohibited.

2. Restrict public sharing of AI chats
Disable or discourage the use of “shareable links” for AI-generated content unless approved by IT or leadership.

3. Centralize AI use with company-approved accounts
Provide employees with secure, company-controlled AI accounts instead of allowing personal logins. This lets you monitor access and enforce policies.

4. Conduct a shadow AI audit
Find out what tools employees are already using. This is often an eye-opener for leadership because unofficial AI use is more common than expected.

5. Train your team on AI security risks
Don’t assume employees know. Provide short, practical training on what’s safe to input into AI and what could put the company at risk.

6. Implement AI governance and monitoring tools
Use platforms designed to track AI usage, enforce policies, and flag risky behavior. This is especially critical if you handle regulated or sensitive data.

Why You Can’t Just Ignore This

The problem is bigger than a few public chats. AI tools are now embedded in how people work, often without guidance or oversight. Ignoring it increases your risk of:

Data breaches from unintended AI leaks
Compliance violations that trigger fines and legal issues
Loss of competitive advantage when sensitive strategy or product data leaks out
Reputation damage that erodes customer trust

And this isn’t a one-time event. The number of indexed AI conversations is growing, and malicious actors are actively scraping and analyzing AI-generated content for useful information. If your business doesn’t have a plan, you’re relying on luck.

How We Help

We work with business owners to remove luck from the equation. Our services include:

AI Policy Creation: We create clear, practical policies tailored to your business needs.
Shadow AI Audits: We identify which AI tools your team is using—official or not—and assess risks.
AI Governance & Compliance Frameworks: We implement monitoring tools and processes to keep AI use secure and compliant.
Secure AI Adoption Strategies: We help you leverage AI safely so it becomes a business advantage rather than a liability.

If you want to know exactly what AI risks exist in your business right now, we can help.

Want to know what’s out there about your company? Let’s start with a shadow AI risk assessment and discuss how to secure your business.

Contact us today to schedule a conversation and take control of AI before it becomes your next security or compliance problem.

CMMC Compliance for Subcontractors: Are You at Risk of Losing DoD Contracts?

by Nadya Shkurdyuk | Oct 30, 2024 | Business IT Best Practices, Compliance

Compliance with the Cybersecurity Maturity Model Certification (CMMC) is no longer an option for companies involved in Department of Defense (DoD) contracts—it’s a necessity. But what if your business doesn’t have a direct DoD contract? Could you still be subject to CMMC requirements?

The answer is likely “yes.” Many businesses, from materials suppliers to parts manufacturers, could be classified as DoD subcontractors without knowing it. This means that even if you don’t handle classified information, your company may still need to implement specific cybersecurity practices to continue working with prime contractors who fulfill DoD contracts. Failure to meet these requirements could put your contracts at risk.

In this guide, we’ll explore how to identify if your business is considered a DoD subcontractor, what CMMC compliance entails, and how companies like Centurion Data Systems (CDS) can help you navigate the compliance process to protect your business.

1. What is CMMC? A Practical Overview

The Cybersecurity Maturity Model Certification (CMMC) is a DoD initiative designed to secure the defense supply chain by ensuring that all companies involved follow rigorous cybersecurity standards. CMMC introduces a tiered system, assigning compliance levels based on the sensitivity of data each company handles. From protecting basic contract details to securing highly sensitive information, the CMMC framework holds both direct and indirect DoD suppliers to consistent standards.

CMMC Compliance Levels:

Level 1: Basic Cyber Hygiene – Designed for companies handling basic Federal Contract Information (FCI), requiring fundamental security practices.
Level 2: Advanced Cyber Hygiene – For companies dealing with Controlled Unclassified Information (CUI), with more advanced controls to secure sensitive information.
Level 3: Expert Cyber Hygiene – For companies handling the most critical defense data, requiring the highest level of cybersecurity protections.

Why is CMMC Important for All Suppliers? The DoD’s commitment to secure its supply chain means that any business handling FCI or CUI—whether directly contracted by the DoD or indirectly supporting a DoD prime contractor—may be required to comply with CMMC. Many companies are unaware of this indirect responsibility, which can put them at risk of non-compliance and contract loss. CMMC compliance not only ensures contract eligibility but also strengthens cybersecurity across the supply chain.

2. Who is Considered a DoD Subcontractor?

Many businesses might assume they’re exempt from CMMC requirements if they don’t have a direct contract with the DoD. However, indirect suppliers are just as crucial in the defense supply chain and may still need to meet CMMC standards. Any business that provides goods or services essential to a DoD contract is considered a subcontractor—even if they’re several layers removed from the prime contractor.

Direct vs. Indirect Subcontractors

Direct Subcontractors: Companies directly contracted by the DoD or a primary contractor.
Indirect Subcontractors: Companies further down the supply chain that support DoD-related work but aren’t directly contracted by the DoD. Examples include parts suppliers, logistics firms, and specialized material providers whose products or services contribute to fulfilling DoD contracts.

Indicators of Subcontractor Status

Your business might be considered a subcontractor if:

Contract terms mention Federal Contract Information (FCI) or Controlled Unclassified Information (CUI).
You receive flow-down clauses from prime contractors that specify cybersecurity or data handling requirements.
You supply goods or services integral to a DoD contract’s completion, such as raw materials or specialized parts.

Examples of Indirect Subcontractors

A parts supplier for a military vehicle manufacturer: This supplier may need to meet CMMC requirements because their components are essential for producing DoD assets.
A logistics provider transporting equipment for a DoD project: The provider might handle data like routing information or delivery schedules, which could classify as FCI.
A metals supplier providing raw materials for aerospace components: This business indirectly supports DoD projects and may be required to secure sensitive information about production and delivery schedules.

3. Understanding Federal Contract Information (FCI) and Why It Matters

Federal Contract Information (FCI) is defined as unclassified information generated for or provided by the government under a contract that isn’t meant for public release. FCI may include anything from pricing details to delivery timelines, and it requires basic safeguarding. If a business handles FCI, it must comply with CMMC Level 1, the most basic cybersecurity standard.

Examples of FCI:

Contract Specifications: Details about order quantities, timelines, and delivery expectations.
Pricing Information: Sensitive pricing or bid-related data that is not publicly available.
Operational Documents: Work orders, delivery schedules, and packing lists for shipments linked to a DoD project.
Quality Assurance Documents: Inspection standards and quality control requirements provided by the DoD or a prime contractor.

Example Scenario

A textile company providing fabric for military uniforms receives detailed order specifications, delivery schedules, and testing standards from a DoD prime contractor. This contract-related information qualifies as FCI, meaning the company must implement CMMC Level 1 requirements to continue working with the prime contractor and protect these basic contract details.

4. What is Controlled Unclassified Information (CUI)?

Controlled Unclassified Information (CUI) is a category of unclassified but sensitive information that requires safeguarding due to its potential impact on national security. Unlike FCI, CUI is more sensitive and requires compliance with CMMC Level 2 or higher, depending on the type and criticality of the data. Companies that handle CUI must implement more advanced cybersecurity measures to protect this information.

Examples of CUI:

Technical Drawings: Detailed schematics or engineering designs for parts used in defense systems, such as turbine blades.
Testing and Evaluation Data: Results from durability tests or stress tests conducted on materials like protective coatings.
Proprietary Manufacturing Processes: Unique techniques or formulas that are integral to producing DoD-specific products.
Personnel Data: Sensitive payroll or contact information for employees working on a DoD contract.

Example Scenario

A metals processing company handles proprietary processes for coating military vehicle parts to enhance durability. Because these processes are classified as CUI, the company needs to meet CMMC Level 2 requirements, which include more advanced access control, encryption, and incident response practices to protect sensitive information.

5. CMMC Levels and Compliance Requirements

CMMC compliance levels vary based on the sensitivity of the information being handled. The requirements escalate from basic controls for FCI (Level 1) to advanced cybersecurity measures for CUI (Levels 2 and 3).

CMMC Compliance Levels:

Level 1 – Basic Cyber Hygiene: Basic practices like access control, data disposal, and physical security to protect FCI. Requires annual self-assessment and affirmation in the Supplier Performance Risk System (SPRS).
Level 2 – Advanced Cyber Hygiene: Requires 110 cybersecurity controls aligned with NIST SP 800-171 for protecting CUI. Depending on data sensitivity, it may require self-assessment or third-party assessment.
Level 3 – Expert Cyber Hygiene: The highest security level, incorporating advanced controls aligned with NIST SP 800-172, often assessed by government-led bodies for companies handling the most critical DoD information.

Why Each Level Matters

Each level of CMMC compliance is crucial for securing the DoD’s supply chain, ensuring that sensitive data is protected across every supplier and contractor. Even if a business only handles FCI, compliance with Level 1 requirements is essential to continue supporting DoD projects and to meet legal obligations.

6. How Vendor Consolidation Can Impact Subcontractors Who Aren’t CMMC Compliant

Vendor consolidation is a growing trend in the defense industry, as prime contractors and large suppliers streamline their operations by reducing the number of vendors they work with. Through consolidation, they aim to work with fewer suppliers who can handle a wider range of products and services, making it easier to manage security requirements and compliance standards across their supply chains. For subcontractors, however, this trend means that falling behind in CMMC compliance can directly lead to lost business.

What is Vendor Consolidation?

Vendor consolidation occurs when a prime contractor combines multiple supply needs—such as raw materials, manufacturing, and logistics—under a single vendor or supplier. This reduces complexity for the prime contractor, as they only need to manage and verify compliance for one vendor instead of several. But for subcontractors, this consolidation means they must meet all relevant CMMC requirements across the services they provide, especially if those services involve handling Federal Contract Information (FCI) or Controlled Unclassified Information (CUI).

Compliance Challenges in a Consolidated Environment

When prime contractors consolidate their vendors, they tend to favor suppliers who are already CMMC compliant across all applicable levels. Subcontractors that lag behind in achieving CMMC compliance—particularly those that haven’t yet met even basic Level 1 requirements—risk being dropped from consideration in favor of more compliant competitors. This trend increases the pressure on subcontractors to proactively achieve compliance to stay competitive.

Example Scenario

Imagine a metal parts manufacturer that supplies fasteners and specialized components for a military vehicle contract. The fasteners themselves might only require CMMC Level 1 compliance because they don’t involve sensitive information. However, the specialized components use proprietary designs and data classified as CUI, requiring CMMC Level 2 compliance.

If this subcontractor hasn’t taken steps to secure CMMC Level 2, the prime contractor may choose a different vendor who can handle both parts at the necessary compliance levels. By consolidating these roles under a compliant vendor, the prime contractor reduces risk and ensures the entire contract meets DoD security standards. In this scenario, the original parts manufacturer loses out on future contracts due to lack of proactive CMMC compliance.

Why Lack of Compliance Means Missed Opportunities

In a consolidated vendor environment, prime contractors expect their suppliers to be ready to meet CMMC requirements across all relevant data levels. Non-compliant subcontractors are seen as liabilities, as any lapse in security can jeopardize the prime contractor’s entire contract with the DoD. Suppliers that proactively achieve compliance are more likely to secure long-term contracts, while those who delay risk losing business to competitors who have already met CMMC standards.

The Importance of Proactive Compliance

For subcontractors, being proactive about CMMC compliance isn’t just about meeting government regulations—it’s essential to staying competitive. Prime contractors are increasingly unwilling to work with vendors who aren’t CMMC certified because non-compliance poses risks that could affect the prime’s own contract eligibility. By ensuring compliance, subcontractors position themselves as reliable partners, more likely to retain and grow their role in consolidated vendor relationships.

7. Why Prime Contractors Are Responsible for Ensuring Supply Chain Compliance

The CMMC framework places responsibility on prime contractors to ensure that their entire supply chain is compliant with the appropriate cybersecurity standards. This approach, known as “flow-down,” is designed to prevent weak links within the defense supply chain that could compromise sensitive DoD information. Here’s how it affects subcontractors.

Understanding Flow-Down Requirements

“Flow-down” refers to the obligation of prime contractors to pass on specific requirements to subcontractors, especially around cybersecurity. This means that if a prime contractor’s DoD contract includes CMMC requirements, these obligations must flow down to all subcontractors who handle FCI or CUI, even if they’re indirect suppliers several layers removed from the DoD.

Implications for Subcontractors

For subcontractors, flow-down means that compliance is not optional. Prime contractors have an incentive to vet each supplier’s cybersecurity practices, as any non-compliance within the supply chain can jeopardize the prime’s contract eligibility and expose them to penalties.

Example Scenario

A logistics provider is hired by a DoD prime contractor to transport specialized equipment. Although the provider may not handle CUI directly, the operational details—like delivery routes and schedules—could be classified as FCI. The prime contractor would need to ensure that the logistics provider meets CMMC Level 1 standards, including basic security controls for data handling and regular self-assessment in SPRS.

8. Steps to Determine If Your Business Needs CMMC Compliance

For businesses unsure of their subcontractor status or cybersecurity obligations, a few essential steps can clarify their responsibilities. Taking the time to evaluate contracts, data handling practices, and communication with prime contractors can help companies make an informed decision about CMMC compliance.

Self-Assessment Checklist

Review Contract Language: Look for terms like FCI, CUI, or references to data security clauses such as FAR 52.204-21 or DFARS 252.204-7012. These clauses typically indicate that cybersecurity protections are required.
Evaluate Data Handling Practices: Determine if any data received, stored, or shared could qualify as FCI or CUI. Examples include shipping records, production schedules, and technical drawings.
Check Flow-Down Requirements: If the contract specifies flow-down clauses or mentions “supplier compliance,” these are strong indicators that CMMC compliance applies.
Consult with Prime Contractors: Contact the prime contractor to confirm the level of data sensitivity in your contract and clarify whether compliance is required.

Practical Examples

A textile supplier reviewing its contract notices references to FAR 52.204-21, suggesting that it must meet CMMC Level 1 for basic data protection.
A precision parts manufacturer supplying DoD-specific parts with technical drawings should confirm if these designs are classified as CUI. If so, CMMC Level 2 would be necessary.

By conducting a self-assessment and clarifying obligations, businesses can determine their CMMC responsibilities and prepare for any needed compliance steps.

9. How to Comply with CMMC Level 1: Step-by-Step Implementation

CMMC Level 1, or “Basic Cyber Hygiene,” requires companies to implement foundational cybersecurity practices to safeguard FCI. For many small businesses and non-IT companies, these controls are manageable and designed to protect essential data without overwhelming resources.

Overview of CMMC Level 1 Requirements

CMMC Level 1 comprises 15 practices across several security domains, including access control, data disposal, and basic data protection measures. Here’s how companies can achieve Level 1 compliance, step-by-step:

Access Control:
- Limit Access to Authorized Users: Create individual accounts for authorized employees and require login credentials for any system handling FCI.
- Define Transaction Permissions: Set user permissions to limit access to only the data and functions employees need for their roles.
Media Protection:
- Sanitize or Destroy Media: Properly destroy or erase any media containing FCI before disposal. This applies to hard drives, flash drives, or other digital media used for contract-related information.
Physical Protection:
- Limit Physical Access: Control physical access to systems storing FCI. Implement basic security measures, such as locked storage for hard copies or restricted access areas for computers.
System and Information Integrity:
- Protect Against Malicious Code: Use antivirus software on all devices that access FCI. Regularly update and monitor antivirus systems for protection.
- Perform Regular Scans: Schedule regular scans to detect and address any vulnerabilities in your systems.

Example Scenario

A shipping company working with a DoD prime contractor restricts access to computers that store FCI, requires unique user IDs, and installs antivirus software to protect operational data. By implementing these controls, the company meets Level 1 requirements, safeguarding contract information and maintaining eligibility.

10. Introduction to SPRS and Compliance Affirmation

The Supplier Performance Risk System (SPRS) is the DoD’s central database for tracking and affirming CMMC compliance. Companies subject to CMMC Level 1 requirements must submit an annual self-assessment affirmation in SPRS to confirm their compliance. This provides the DoD and prime contractors with visibility into each supplier’s cybersecurity readiness.

What is SPRS?

SPRS is used to collect, manage, and track self-assessment results from companies within the DoD supply chain. By affirming compliance, businesses demonstrate their commitment to safeguarding FCI, which helps primes and the DoD assess the security posture of their suppliers.

How to Submit Your CMMC Level 1 Self-Assessment

Complete the Self-Assessment: Conduct a self-assessment using the CMMC Level 1 guidelines, ensuring all 15 practices are in place.
Document Compliance: Record your assessment results, listing each control and evidence of its implementation.
Log into SPRS: Submit your affirmation of compliance, including key details like company name, contract information, and a summary of the assessment results.

To simplify the process of self-assessment, you can also work with a company like Centurion Data Systems, that is a registered DoD contractor, understands this process intimately, and offers assistance services to take the burden of having to do this off the business principals.

Example Scenario

A packaging company working with a DoD prime contractor completes its CMMC Level 1 self-assessment, implementing basic cybersecurity controls. The company then submits its affirmation in SPRS, allowing the DoD and its prime contractor to verify their compliance status and maintain a secure supply chain.

11. CMMC Level 2: Requirements for Subcontractors Handling CUI

For companies that handle Controlled Unclassified Information (CUI), CMMC Level 2 compliance is mandatory. CUI is more sensitive than Federal Contract Information (FCI) and may include technical schematics, proprietary manufacturing techniques, or testing data that support national security. Achieving Level 2 requires 110 specific cybersecurity controls, as outlined in the NIST SP 800-171 framework.

Overview of Level 2 Compliance Requirements

Level 2 builds upon the basic protections of Level 1, adding more stringent measures for access control, data encryption, incident response, and system monitoring. To comply, companies must address each of these areas thoroughly, creating multiple layers of protection around CUI.

Examples of Required Controls for CUI

Access Restrictions: Limit CUI access strictly to authorized personnel. Implement role-based access controls to ensure employees only view data relevant to their job.
Data Encryption: Encrypt all CUI, both in storage and during transmission, to protect it from unauthorized access.
Incident Response and Monitoring: Establish an incident response team and document incident response plans. Implement continuous monitoring tools to detect suspicious activities in real-time.

Example Scenario

A manufacturer of specialized components for defense aircraft handles technical data on their proprietary designs, which qualifies as CUI. To comply with Level 2, they encrypt all design files, limit access to a restricted group of engineers, and install monitoring software to track unauthorized access attempts. By adhering to Level 2 standards, the company protects its contract eligibility and ensures that sensitive information stays secure.

12. Plan of Action and Milestones (POA&M) for Conditional Certification

Not every company achieves full compliance immediately, especially when transitioning to the more demanding Level 2 and Level 3 requirements. For subcontractors close to compliance but needing time to implement all controls, CMMC allows for a “conditional” certification status through a Plan of Action and Milestones (POA&M).

What POA&M Entails

A POA&M is a formal plan documenting any outstanding compliance requirements and detailing steps to achieve full compliance within a specified timeframe. Companies must demonstrate at least 80% compliance to qualify for conditional status. The remaining 20% must be completed within 180 days to maintain eligibility.

Steps in a POA&M

Identify Gaps: Conduct an internal assessment to identify which specific controls are not yet fully implemented.
Set Milestones: Outline a clear timeline for achieving each remaining control, with specific milestones and completion dates.
Commit to Monitoring: Regularly review progress toward each milestone and update the plan as necessary to stay on track.

Example Scenario

A machine parts manufacturer aiming for Level 2 compliance has implemented 85% of the required controls but needs more time to secure all access points. They submit a POA&M detailing their remaining steps, including encryption upgrades and additional employee training. This conditional status allows them to retain their contract temporarily, but full compliance must be achieved within 180 days to avoid penalties or potential contract termination.

13. Risks of Non-Compliance for Subcontractors

The consequences of failing to achieve CMMC compliance can be serious, especially for subcontractors in competitive fields. Non-compliance can jeopardize existing contracts, restrict future business opportunities, and damage relationships with prime contractors, who are increasingly focused on cybersecurity due to their own contractual obligations to the DoD.

Immediate Consequences

Contract Termination: If a subcontractor cannot meet the required compliance level, a prime contractor may need to find an alternative supplier who can meet DoD standards.
Loss of Competitive Advantage: As CMMC compliance becomes standard across the defense industry, non-compliant subcontractors are at risk of losing out on bids to compliant competitors.
Liability for Security Incidents: In cases where non-compliance leads to a security breach, the subcontractor may be held liable, facing potential fines, legal costs, or reputational damage.

Example Scenario

A supplier providing coatings for military vehicles fails to complete their CMMC Level 1 self-assessment. When the prime contractor discovers the lapse, they are forced to look for an alternate vendor to protect their DoD eligibility. The original supplier loses their contract and risks future business with the prime contractor due to their non-compliance.

14. Why CMMC Compliance Benefits Extend Beyond DoD Contracts

While CMMC is a DoD-specific requirement, achieving compliance offers advantages that extend well beyond defense contracts. Strong cybersecurity practices can improve a business’s resilience to cyber threats, enhance customer trust, and create new opportunities within other regulated industries that value robust security measures.

Enhanced Cybersecurity Resilience

Implementing CMMC controls protects a business from common cyber threats like malware, phishing, and ransomware attacks. By establishing a foundation of security best practices, companies can minimize downtime, avoid costly data breaches, and prevent loss of proprietary information.

Increased Business Credibility and Trust

Compliance with CMMC standards demonstrates to all clients, not just DoD primes, that a company is committed to cybersecurity. This credibility can help attract customers in industries such as aerospace, energy, and healthcare, where data protection is a priority.

Example Scenario

A small manufacturing firm specializing in sensor technology adopts CMMC Level 2 standards to comply with a DoD contract. This cybersecurity focus helps them stand out in the commercial aerospace sector, where secure data handling is critical, opening new business opportunities and strengthening relationships with non-defense clients.

15. Proactively Securing Your Business with CMMC Compliance

The DoD’s CMMC framework has set a new standard for cybersecurity within the defense industry supply chain, impacting businesses across sectors, including those that may not have initially realized they qualify as subcontractors. For companies handling FCI or CUI, compliance is more than a regulatory requirement—it’s a competitive advantage and a long-term investment in business continuity.

Next Steps for Subcontractors

Start with a Self-Assessment: Identify your current cybersecurity controls, assess where they align with CMMC requirements, and address any gaps.
Seek Expert Assistance: For companies new to compliance, working with experts like Centurion Data Systems (CDS) can simplify the compliance process. CDS provides tailored assessments, POA&M development, and ongoing support to help subcontractors meet and maintain CMMC standards.
Commit to Long-Term Compliance: Cybersecurity is an ongoing effort. Regularly review and update your practices to stay aligned with evolving CMMC requirements and protect your position in the DoD supply chain.

By taking proactive steps toward compliance as soon as possible, subcontractors ensure that not only their contracts are secure but also position themselves as trusted partners well outside strictly the defense sector. Working with a trusted partner like Centurion Data Systems can ensure that your compliance efforts are thorough, efficient, and sustainable, allowing you to confidently continue or expand your role within the defense industry.

CMMC 2.0 Compliance for DoD Contractors

by Nadya Shkurdyuk | Sep 16, 2024 | Compliance

CMMC 2.0: A Guide for DoD Contractors to Get Compliant Before the Deadline

If your business works with the Department of Defense (DoD)—whether as a contractor or a subcontractor—then you’ve likely heard about the updated cybersecurity standards known as CMMC 2.0. For companies in manufacturing or those providing vital services, it’s more important than ever to meet these new requirements before the looming deadline. If you don’t act soon, your business risks losing lucrative contracts and facing major disruptions. Let’s dive into CMMC 2.0 Compliance for DoD Contractors in this guide.

What is CMMC 2.0?

CMMC 2.0 stands for Cybersecurity Maturity Model Certification, and it’s designed to protect sensitive DoD data from cyberattacks. With the rise in cyber threats, especially targeting defense contractors, the DoD needed to put stricter rules in place. CMMC 2.0 has three levels, each requiring different security practices depending on how sensitive the information you handle is:

Level 1 (Foundational): For contractors who handle less sensitive info (like basic DoD data), this level involves simple practices like using antivirus software and managing system access. It focuses on basic “cyber hygiene,” ensuring your company follows everyday security practices to keep data safe.
Level 2 (Advanced): If you work with Controlled Unclassified Information (CUI), this level is for you. It’s based on NIST SP 800-171 guidelines and includes more detailed controls, like encryption and incident response plans, to safeguard sensitive DoD information.
Level 3 (Expert): Reserved for the most critical DoD projects, this level involves extensive cybersecurity practices to protect against the most sophisticated cyber threats, aligned with NIST SP 800-172.

This new model simplifies things by trimming down from five levels (in CMMC 1.0) to three, making it easier for contractors to identify where they fit in and what they need to do.

Key Deadlines and Compliance Timeline

The official deadline to comply with CMMC 2.0 is set for October 2025, but don’t wait until the last minute. The DoD will start requiring CMMC compliance in contracts as early as 2024, meaning if you’re not compliant soon, you could lose out on critical business opportunities.

The transition timeline includes significant milestones such as:

2024: Early adoption in new DoD contracts will begin.
Mid-2025: All contractors must show some progress toward compliance.
October 2025: Full implementation across all contracts.

If you wait until the final deadline, you risk losing DoD contract opportunities, so starting early is crucial.

Being prepared now will not only protect your place in the DoD supply chain, but it also means you won’t be scrambling to meet the final deadline. For up-to-date information, the DoD has a dedicated CMMC resources page, so you can track important dates and new developments.

Why CMMC Compliance is Crucial for Your Business

Think of CMMC 2.0 as a security checkpoint for companies wanting to work with the DoD. If you don’t pass, you don’t get the job. Non-compliance can have some serious consequences:

No more contracts: If your business fails to meet CMMC requirements, you won’t be able to bid for new DoD contracts, effectively locking you out of a key revenue stream.
Fines and penalties: Misrepresenting your compliance status could lead to legal action or fines under the False Claims Act. It’s essential to ensure that you’re fully compliant at the right level before taking on new contracts.

The DoD is cracking down on cybersecurity because cyberattacks are more frequent and more dangerous than ever. For example, 60% of small businesses close their doors within six months of a cyberattack. You don’t want your business to become part of that statistic, especially when protecting sensitive government data is part of the job.

How Do CMMC Levels Affect Contractors and Subcontractors?

Each level of CMMC 2.0 targets specific types of contractors, depending on what kind of data you handle:

Level 1 (Foundational): This level covers basic practices like using antivirus software and managing access to your systems. It’s essential to maintain “basic cyber hygiene,” which means making sure everyone in your company is following common-sense security rules. Skipping these basics can be a huge risk, as shown in a lawsuit where poor security left a contractor exposed to cyberattacks.
Level 2 (Advanced): If your company handles CUI—more sensitive information—this level applies to you. You’ll need to meet the stricter requirements of NIST SP 800-171, which includes encryption, access controls, and incident response systems. These safeguards are designed to protect important data and ensure you can quickly address security breaches.
Level 3 (Expert): This is for contractors working with the most sensitive DoD data, and it involves extremely high-level security measures to defend against advanced threats, such as nation-state actors.

Each level of compliance corresponds to how sensitive the data is that you handle, so make sure you’re prepared based on your specific needs.

How to Get Started: The Self-Assessment and Gap Analysis

Before you can get certified, you need to figure out where your company stands now. This means conducting a self-assessment for Level 1 or planning a more detailed third-party assessment for higher levels.

Start with a gap analysis, which compares your current cybersecurity practices with what CMMC requires. This will help you identify where you’re falling short and what you need to fix. For example, NIST SP 800-171 has 110 security practices that Level 2 contractors need to follow, ranging from access controls to encryption, and these gaps can be costly if not addressed.

For detailed steps on conducting internal assessments, refer to the DFARS 252.204-7019 requirements, which outline the DoD’s expectations for contractors.

Challenges Contractors Face in Meeting CMMC Requirements

Many small and mid-sized businesses find the compliance process overwhelming. Some of the common challenges include:

Limited resources: Smaller businesses may not have a full IT team dedicated to cybersecurity, making it harder to implement necessary changes.
Complex regulations: Navigating all of the requirements, especially at higher levels, can feel like trying to decode a foreign language. Without proper guidance, it’s easy to miss important steps.
Time constraints: With deadlines approaching, many companies feel the pressure to comply quickly but may not know where to start.

This is why many contractors partner with managed service providers (MSPs) to help navigate the compliance maze.

How MSPs Can Help With Achieving CMMC Compliance

Managed Service Providers (MSPs) can play a crucial role in helping your business meet CMMC standards. MSPs offer a range of services, from performing initial gap analyses to implementing cybersecurity solutions that meet DoD requirements. However, it’s important that you work with an MSP who is also a CMMC DoD contractor and understands all the intricacies of the certification process and requirements.

Partnering with an MSP can significantly reduce the burden on your in-house team, allowing you to focus on your business while experts handle your compliance needs. MSPs also provide ongoing monitoring and updates to ensure you remain compliant over time, even as new threats and regulations emerge.

Cybersecurity Best Practices to Help You Get Compliant

To prepare for your CMMC 2.0 assessment, start by implementing these key cybersecurity practices:

Access Control: Ensure that only authorized personnel have access to sensitive systems and information.
Antivirus and Malware Protection: Regularly update and monitor antivirus software to protect against threats.
Encryption: Encrypt sensitive data both when it’s stored and when it’s sent to other systems.
Incident Response Plan: Develop a detailed plan for how your business will respond in the event of a data breach or cyberattack.

By following these steps, you’ll not only be on the right path toward compliance, but you’ll also enhance your company’s overall security posture.

What Does CMMC Compliance Cost?

Compliance costs vary depending on your CMMC level. For Level 1, the costs are relatively low since you can self-assess, but as you move up to Levels 2 and 3, you may need to invest in:

Cybersecurity tools and infrastructure upgrades.
Training and certifications for your employees.
Third-party assessments for the higher levels.

While these costs can add up, failing to comply can be much more expensive, especially if you lose out on lucrative DoD contracts or face penalties.

Next Steps: Start Preparing for CMMC Now

The clock is ticking toward the October 2025 deadline, but CMMC requirements will start appearing in contracts as early as 2024. If your business wants to stay competitive in the DoD supply chain, you need to start preparing now.

Our team specializes in helping businesses like yours meet CMMC 2.0 standards. Contact us today for a free initial consultation, and we’ll help you develop a tailored plan to ensure you’re ready well before the deadline.

Taking action now will safeguard your business’s future and ensure you can continue to work with the DoD on critical projects.

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