If your organization works with the Department of Defense or plans to, you’ll need to comply with the Cybersecurity Maturity Model Certification (CMMC). This framework helps protect sensitive federal data by requiring specific cybersecurity practices tailored to your business's information handling.
CMMC is divided into three levels, but today, we’re focusing on the two that apply to most contractors: Level 1 and Level 2. These levels define the minimum and moderate requirements for securing Federal Contract Information (FCI) and Controlled Unclassified Information (CUI), and they directly impact your ability to bid on DoD contracts.
Understanding the difference between these two levels is critical whether you are preparing for your first DoD opportunity or reassessing your current security practices.
CMMC Level 1 vs Level 2: which one do you need? Let’s find out, starting by defining what they both are.
If your business works with the Department of Defense, meeting the right CMMC requirements is essential. Level 1 and Level 2 are designed to protect sensitive information, but they differ in complexity, the type of data they secure, and how you demonstrate compliance.
Choosing the right level depends on what kind of government information you handle and the expectations tied to your contracts.
Let’s take a closer look at what each level means.
Level 1 is the entry point of the CMMC framework. It applies to companies that handle Federal Contract Information, this being non-public data shared by the government for contract purposes.
This level includes 17 basic security practices, covering topics such as access control, data protection, and system integrity.
To stay compliant, you must complete a self-assessment once a year and have it signed off by a senior official in your company.
Level 2 applies to companies that work with Controlled Unclassified Information, which is more sensitive and requires stronger safeguards. It includes 110 security practices and is based on the standards laid out in NIST 800-171.
How you’re assessed depends on the type of contract. If the project involves national security, you’ll need a third-party assessment every three years. If it’s not considered critical, you can complete an annual self-assessment and submit it through SPRS.
The main difference between these two levels is the sensitivity of the data they’re meant to protect. Level 1 is built to secure basic contract-related data, while Level 2 is designed for handling more sensitive information that could impact national security if compromised.
Level 2 also includes far more security practices, 110 compared to Level 1’s 17, which makes it much more detailed and demanding. Because of this, the effort required to achieve and maintain Level 2 is significantly higher.
How you show compliance is different as well. Level 1 allows you to complete your own assessment every year. For Level 2, you may need an outside assessment, depending on the contract. A certified third party must conduct the review if the work is critical to national defense. If it’s not, you can self-assess and submit your results.
Level 2 is also tied directly to a widely used cybersecurity standard, making it a more thorough and structured level of protection. Level 1 provides basic coverage, while Level 2 ensures deeper security for more sensitive operations.
Choosing the right CMMC level for your organization starts with understanding what information you handle and how your business fits into the broader defense supply chain.
To ensure you're aligned with Department of Defense requirements, it's important to take a methodical approach that considers both current contracts and future opportunities.
Begin by reviewing your existing and upcoming DoD contracts. Many contracts will specify the required CMMC level.
If that information isn’t clearly stated, consult your contracting officer or legal team to clarify expectations based on the type of work and data involved.
Understanding the contractual obligations is your first step in determining which level of compliance you need.
Next, evaluate the types of information your organization manages. If you only work with Federal Contract Information, CMMC Level 1 will usually be sufficient.
But if you store, process, or transmit Controlled Unclassified Information, you’ll need to meet Level 2 requirements, which include stricter security practices and more oversight.
Your position in the defense supply chain also influences which level applies to you. Prime contractors working directly with the DoD and handling sensitive information often need a higher level of certification than subcontractors with limited access to Controlled Unclassified Information.
If you’re a subcontractor, it's still important to engage with your prime contractors to understand any flow-down requirements that may apply to your role.
While your current contract might only require Level 1, consider your long-term business goals. If you plan to take on more complex DoD work or expand your footprint in the defense industry, pursuing Level 2 may give you a strategic advantage.
It shows a proactive commitment to cybersecurity and positions your business for future growth as DoD security expectations continue to evolve.
BEMO can help you determine which CMMC level you need and help you achieve compliance fast.
Becoming CMMC compliant is a strategic investment in your business’s long-term success. From securing contracts to improving your cybersecurity posture, the benefits extend far beyond just meeting the minimum requirements. These include securing DoD contracts, protecting sensitive information, and demonstrating cybersecurity maturity.
Here’s why your organization should become CMMC compliant:
Most importantly, achieving the required CMMC level is mandatory for bidding on and securing Department of Defense contracts.
Without the appropriate certification, your business may be disqualified from valuable opportunities within the defense sector.
By implementing CMMC-aligned security practices, your organization strengthens its ability to protect both Federal Contract Information and Controlled Unclassified Information.
This reduces the risk of cyberattacks, data leaks, and compliance violations that can jeopardize your reputation and partnerships.
Certification clearly communicates to the DoD and other partners that you take cybersecurity seriously. It shows your systems, people, and processes are aligned with nationally recognized security standards.
CMMC compliance can also give you an edge in the bidding process. As more companies enter the defense space, being compliant helps your business stand out, especially to prime contractors looking for reliable and secure partners in their supply chain.
Let’s find out how to get CMMC certified.
Preparing for CMMC certification requires strategic planning, documentation, and follow-through. Here’s how to approach the process from start to finish.
Begin by assessing your current state. A gap analysis will compare your existing cybersecurity posture to the specific requirements of your target CMMC level. This step is essential for identifying areas that need improvement and setting the stage for focused remediation.
Once gaps are identified, develop a clear roadmap to address them. This might involve updating internal policies, applying technical safeguards, enhancing access controls, or training employees. All changes should align with your target CMMC level’s practices and procedures.
As you make progress, begin collecting documentation that supports your compliance. This includes written policies, access logs, system configurations, network diagrams, and incident response plans. Maintaining clear, well-organized records will make the assessment process smoother and more efficient.
The type of assessment your organization will undergo depends on the CMMC level you’re pursuing. For Level 1, a self-assessment is required annually, along with a formal affirmation submitted by a senior official.
For Level 2, organizations with critical national security contracts must complete a triennial third-party assessment by a certified assessment body. If your contracts are considered non-critical, you can complete an annual self-assessment and submit it through the Supplier Performance Risk System (SPRS).
After successfully passing your assessment, your organization will receive official certification for your CMMC level. This marks a significant milestone, demonstrating your compliance and positioning you for new DoD opportunities.
Certification is the beginning of an ongoing commitment. Cybersecurity threats evolve constantly, and staying compliant means actively maintaining and updating your controls. Regular internal reviews, staff training, and policy updates will help you keep pace with new threats and maintain your certification status.
Remember that BEMO can help you along every step of the way, from performing a gap analysis to helping you stay compliant year-round.
Getting CMMC certified requires a financial investment that varies based on your organization's size, complexity, and current cybersecurity posture.
Several factors contribute to the overall cost, including conducting a gap analysis, implementing necessary controls, undergoing assessments, and maintaining ongoing compliance.
For CMMC Level 1, which focuses on protecting Federal Contract Information, the costs typically range from $5,000 to $25,000. This level involves implementing 17 basic cybersecurity practices and requires an annual self-assessment.
On the other hand, CMMC Level 2, designed to safeguard Controlled Unclassified Information, demands a more significant investment.
The costs for Level 2 certification can range from $50,000 to $100,000 or more, depending on the scope and complexity of your organization's IT infrastructure and the extent of remediation required to meet the 110 practices aligned with NIST SP 800-171.
It's important to note that these cost estimates are rough guidelines, and the actual expenses may vary. Factors such as the need for external consultants, the acquisition of new security tools and technologies, and the time and resources required for staff training and documentation can impact the total cost of CMMC compliance.
When budgeting for CMMC, consider both the initial certification costs and the ongoing expenses associated with maintaining compliance. Continuous monitoring, regular assessments, and the implementation of evolving cybersecurity best practices are necessary to ensure the long-term protection of sensitive information.
While the costs of CMMC compliance may seem substantial, the benefits of securing DoD contracts, protecting sensitive data, and demonstrating your commitment to cybersecurity can provide a significant return on investment. By prioritizing CMMC compliance, you position your organization for growth and success in the defense contracting industry.
If your organization wants to do business with the Department of Defense, then yes, CMMC certification is absolutely worth the investment. It ensures your cybersecurity practices meet the required standards for protecting sensitive information and positions you to win and retain DoD contracts.
CMMC Level 1 is suitable for organizations that handle only Federal Contract Information, while Level 2 is necessary for those that work with Controlled Unclassified Information, which requires more advanced safeguards.
Beyond eligibility, certification signals your commitment to cybersecurity, strengthens your overall defense against cyber threats, and aligns your organization with industry best practices.
It also gives you a competitive edge in the bidding process. As CMMC becomes mandatory across all DoD contracts, certified contractors will be better positioned to secure long-term opportunities.
Ultimately, CMMC protects your business and plays a key role in securing the defense supply chain and supporting national security.
If you're unsure which CMMC level you need or how to close compliance gaps, BEMO helps you get certified faster with less risk and lower cost. Their team guides you through every step, from gap analysis to audit readiness.
If you don’t pass, you’ll receive a remediation plan. Once issues are resolved, you can undergo reassessment.
Timelines vary, but most organizations should plan for at least 3 to 6 months from gap analysis to assessment.
Yes, if subcontractors handle FCI or CUI, they must meet the appropriate CMMC level based on their role and access.
Level 1 requires annual self-assessment. Level 2 needs either annual self-assessment or a third-party review every three years.