If You're in Energy and Hold DoD Contracts, You're Playing By Two Sets of Rules

Energy and CMMC

Most IT directors in energy prioritize NERC CIP or TSA pipeline directives. What often surprises them is the second framework in their contracts: CMMC 2.0.
 

Supplying equipment to a defense program while running grid infrastructure?

Congratulations—you've inherited two compliance frameworks written by different agencies for different environments, with no real consideration for how organizations can run both frameworks at once.

This convergence of requirements is increasingly common.

 

Two Mandates, One Environment

Energy companies operating at the intersection of critical infrastructure and the defense industrial base now face these overlapping demands as part of their daily reality.

Access controls: Both models require access controls but differ in specifics.

  • NERC CIP mandates electronic controls for critical cyber assets.
  • CMMC Level 2 requires role-specific access, least privilege, and multi-factor authentication (MFA) on all systems handling Controlled Unclassified Information (CUI), including remote vendor access.

If your engineering environment covers grid operations and defense data, your identity architecture must meet both requirements.

Monitoring and audit logging:

  • NERC CIP's 2026 expansion mandates Internal Network Security Monitoring (INSM) for previously exempt low-impact assets.
  • CMMC Level 2 requires continuous monitoring and audit log retention for all CUI systems.

IT directors managing converged environments must extend monitoring across the entire estate, not just operational technology.

Incident response:

  • TSA pipeline directives require annual testing and documented cybersecurity assessment plans.
  • CMMC Level 2 mandates a formal incident response plan with defined roles, escalation routes, and evidence of execution.

 

Although different, these plans should come from a unified program to avoid conflicts under pressure.

Third-party and vendor access:

  • NERC CIP imposes supply chain risk management requirements under CIP-013. CMMC explicitly includes every vendor, integrator, and contractor accessing CUI systems.

For energy companies with complex vendor ecosystems spanning OT maintenance, Manufacturing Execution System (MES) integration, and defense program support, this is one of the hardest governance problems to solve—and one of the first areas assessors look at.

 

From Complexity to Control

When it’s time to address these complex requirements, a strong unified approach is built on four essential steps:

Define a Controlled Unclassified Information (CUI) enclave. This is critical for organizations handling defense contract data. Isolating systems that touch controlled data from the wider corporate and operational environment not only reduces CMMC scope but also creates a cleaner boundary for NERC CIP purposes. This limits the intersection between defense program systems and grid-connected assets.

Deploy a unified identity and access management (IAM) system. To streamline compliance, deploy an IAM system that incorporates MFA, role-based access controls, and privileged access management (PAM) specifically for vendors and third parties. Ensure this IAM solution is configured to meet both NERC CIP and CMMC Level 2 requirements, including access reviews, account provisioning, and monitoring of privileged activities. Implementing a comprehensive IAM approach simplifies governance more than managing separate systems for each framework. Building access controls right the first time is much more sustainable than managing separate programs.

Monitor with a single MDR and SIEM setup. Spanning both IT and OT environments, combined with log retention and alerting configured to satisfy both NERC CIP and CMMC, can bridge monitoring requirements across frameworks while maintaining consistent visibility across the environment.

Build an incident response program. A single incident response program operating under a unified structure can satisfy the documentation and testing requirements of both models while reducing duplication and confusion. The plan should define clear roles and include annual testing, while covering both a cybersecurity event affecting grid operations and a CUI breach affecting defense contract data. In a converged environment, those events may not be cleanly separable, which is why a unified response program is essential.

 

The Competitive Angle IT Directors Don't Always Surface to Leadership

Here's something to take upstairs: dual-framework compliance doesn't just reduce risk—it expands your addressable market. Primes qualify suppliers on CMMC readiness, and utilities face increasing scrutiny. Energy companies with mature, documented compliance across both NERC CIP and CMMC can access defense contracts, retain prime relationships, and compete for programs that less-prepared rivals can't approach.

Compliance is not just a cost. For energy companies at this intersection, it's a qualification—and a powerful differentiator.

 

Bringing It All Together: Where to Start

If your organization operates in the energy sector and holds or pursues DoD contracts, start by understanding exactly where each framework applies in your environment and where they overlap.

NexusTek works with energy companies operating under both NERC CIP and CMMC 2.0 obligations. We start with a unified IT and compliance assessment that maps your current environment against both sets of frameworks, identifies the intersections, and builds a prioritized remediation roadmap that addresses both without doubling your compliance workload.

If you're managing both and aren't sure your current program covers the gap between them, that's worth a conversation. Schedule your assessment today.