Insights

Times Up: Past Performance Won’t Protect Your DoD Contract with CMMC 2.0

Written by James Reid | Apr 27, 2026 6:44:38 PM

CMMC 2.0 may have seemed like a long way off. But it’s already in effect and many companies we work with didn’t know that. Until now. Our job is to help defense manufacturers avoid the big surprises that come with CMMC Level 2 non-compliance.
 

Because the days of wondering whether or not you need to comply are over. Now the real question is whether you'll still have contracts when your prime asks for proof. In other words, now it’s about your bottom line.

Here’s a real-life scenario we came across recently. A precision machining company with around thirty employees spent the last fifteen years supplying components to a defense prime. And they were really good at it. Because they were one of the few suppliers able to deliver on the tight-tolerance spec many DoD contracts require. They thought they were safe because their delivery record was outstanding. It’s not like they took things for granted. They just didn’t see the Level 2 train coming round the bend until it was too late. So when their contract came up for renewal and, sure enough, the prime asked for their CMMC Level 2 certification. Not only didn’t they have one, but they didn’t have a path to get one, and they lost the contract altogether.

That scenario is playing out everywhere across the Defense Industrial Base (DIB).

 

What the Mandate Actually Says

CMMC 2.0 raises the bar, and most defense manufacturers have to reach Level 2 certification to be awarded contracts. This means meeting 110 security controls aligned to NIST SP 800-171—to win, keep, or renew DoD contracts. But in a world that’s all digital, connected, and cloud-first, Controlled Unclassified Information (CUI) is everywhere—from the shop floor to production endpoints. And that makes achieving compliance more challenging than you think.

The numbers tell the story plainly: roughly 80,000 contractors will need Level 2 certification. Given that only 270 currently hold one, there is a serious bottleneck built into the process since but there are only so many authorized assessors available to help everyone through the process.1 That gap means the contractors who move now will be better positioned to keep their current contracts, and the ones who wait will be out of luck.

Given that manufacturing is now part of the costliest sectors for data breaches, with the global average cost of a data breach at $5 million in 2025,2 now is the right time to address high-risk exposure areas for your CUI and ensure compliance.

It’s as simple as this. Non-compliance earns disqualification regardless of delivery record or relationship history. No warning. No grace period.

 

From Compliance Checkbox to Revenue Reset

The mistake most manufacturers make is treating CMMC like an IT project they can schedule and address later. It’s not. It’s a direct threat to revenue tied to every DoD contract you have.

When you think about it, the cost of getting ready properly is a fraction of what a single contract is worth in a year. Losing a contract, and the subcontract relationships that come with it, can’t be fixed on a spreadsheet.

And it’s not just the DoD driving this change. Primes are already pushing certification requirements down their supply chains. And this is ahead of formal deadlines. If your prime gets serious before your contract technically requires it, you won't get extra time. You’ll get a call you’re not ready for.

 

Start Here—Or Explain It Later

The first step in gearing up for CMMC 2.0 is a gap assessment. That’s a structured review of your current environment against all 110 controls. This can tell you exactly where you stand—your supplier performance risk system (SPRS) baseline score, what’s working, and what needs to be fixed before an assessor ever shows up.

Many companies we work with are surprised by the results. Because the gap is almost always bigger than expected. But once you can see it clearly in a map, the path to closing it is usually easier than you think.

One thing that often catches clients off guard is the timeline. Between the gap assessment, remediation, documentation, and scheduling with a C3PAO, you’re realistically looking at months from start to finish. And with assessment capacity limited, and demand growing, the companies who wait will find themselves in a queue.

That machining company didn't lose the contract because their parts or service were lacking. They lost it because they weren't prepared for the prime’s question.

That's the only part of this that's entirely within your control.

If you’re ready to find out where you stand, NexusTek's CMMC Readiness Assessment maps your environment against all 110 controls and delivers a prioritized roadmap in 30 minutes. Learn more https://info.nexustek.com/cmmc-2.0-readiness-assessment

 

1. FedTech, Major Contractors Close In on CMMC 2.0 Readiness, April 2025
2. IBM, Cost of a Data Breach Report, July 2025