Understanding the CMMC: A Practical Guide for SMBs Working with the DoD

If your business works with the U.S. Department of Defense (DoD), the Cybersecurity Maturity Model Certification (CMMC) is something you can’t afford to ignore. CMMC was designed to make sure that contractors and subcontractors who handle sensitive government data, such as Federal Contract Information (FCI) or Controlled Unclassified Information (CUI), have the right protections in place.

Without certification, companies can lose out on DoD contracts and even face compliance penalties. But beyond the risks, becoming CMMC-certified also shows that your business takes cybersecurity seriously. By learning understanding the purpose of CMMC and taking proactive steps to prepare, you’ll be setting your business up for long-term success with stronger security and a smoother path to compliance.

What is CMMC and Why Does it Matter?

The Cybersecurity Maturity Model Certification (CMMC) is a framework created by the Department of Defense (DoD) to make sure businesses in the defense supply chain are protecting sensitive information properly. In simple terms, it’s the DoD’s way of verifying that contractors and subcontractors are following strong and appropriate cybersecurity practices.

At its core, CMMC exists to safeguard sensitive government data, bring consistency across the Defense Industrial Base (DIB), and lower the risks of costly cyberattacks or data breaches. By putting everyone on the same standard, the DoD can trust that each organization it works with is taking cybersecurity seriously.

The newest version, CMMC 2.0, makes things slightly easier to navigate. It trims down the number of certification levels and ties more closely to existing standards such as NIST SP 800-171 (a cybersecurity framework developed by the National Institute of Standards and Technology). That means businesses that have already been working toward NIST compliance have a head start, rather than starting completely from scratch.

For example, consider a small manufacturer that supplies parts for military vehicles. Even though this company isn’t designing the vehicles themselves, they may receive Controlled Unclassified Information (CUI) such as blueprints or technical data in order to do their job. If that information were to be leaked or stolen, it could compromise national security. CMMC ensures that businesses like this manufacturer have the right safeguards in place, such as access controls, data encryption, and proper employee training, so sensitive information stays protected throughout the entire supply chain.

The Levels of CMMC Certification

CMMC 2.0 is structured around three levels of maturity, with each one building on the last. The idea is that not every business in the defense supply chain needs the same depth of cybersecurity, but everyone does need to meet the standards appropriate for the kind of information they handle.

Level 1: Level 1 is all about basic cybersecurity hygiene. It’s designed to protect Federal Contract Information (FCI) through a set of 15 practices that cover essentials like password management, controlling who has access to systems, and making sure devices are secure. Think of a small cleaning company contracted to service a military facility. While they aren’t dealing with top-secret data, they may receive work orders or schedules that count as FCI, so they need to show they can protect even that limited information from being exposed.

Level 2: Level 2 goes deeper and is required for organizations handling CUI. It aligns with the 110 security requirements found in NIST SP 800-171 and places a heavier emphasis on risk management, continuous monitoring, and incident response. For example, imagine a mid-sized engineering firm that provides design schematics for military equipment. The data they handle could be highly valuable to foreign adversaries if stolen, so this level ensures they have stronger safeguards in place, like logging suspicious activity and having a clear plan to respond to potential breaches.

Level 3: Level 3 is the most rigorous of the three CMMC levels. It focuses on defending against advanced persistent threats (APTs) and is based on a subset of NIST SP 800-172. This level is intended for the highest-priority contractors that handle the most sensitive defense data and involves detailed, government-led assessments. A real-world example could be a large defense contractor working directly on weapons systems or cybersecurity tools for the military. The information they protect is mission-critical, so the security expectations are far higher than those at Levels 1 or 2.

Together, these levels create a clear path for organizations of all sizes, from small service providers to major defense contractors, to meet the security expectations tied to the work they do.

Key Requirements for Businesses

Meeting CMMC standards isn’t just about installing new software or locking down laptops. The framework looks at how well your entire organization approaches cybersecurity, from technical safeguards to everyday employee habits. At a high level, the requirements focus on areas such as controlling who can access sensitive information, having a clear plan for how to respond to security incidents, and making sure your systems stay patched and free of malware.

For example, access control goes beyond setting strong passwords—it means making sure only the right people can log in to the right systems, and that former employees or outside vendors don’t retain access they shouldn’t have. Incident response is another big piece as it’s not enough to hope a cyberattack never happens. Companies are expected to have documented plans that explain how they would detect, respond to, and recover from a security event.

Other requirements touch on system integrity and risk management, which means regularly monitoring your environment, staying on top of software updates, and addressing vulnerabilities before they become a problem. This includes an emphasis on employee awareness and training. A simple phishing email can lead to a serious breach if staff don’t know how to recognize and report it.

What makes these requirements challenging for many SMBs is that they aren’t just about technology. They’re about having policies, procedures, and documentation to prove that good cybersecurity practices are part of your daily operations. In other words, CMMC is as much about culture and consistency as it is about tools and systems.

Common Challenges to Achieving CMMC Certification

While the goals of CMMC are straightforward, the path to certification can feel overwhelming, especially for small and mid-sized businesses. One of the biggest challenges companies face is documentation. Many SMBs already follow good security practices in their day-to-day operations, but they don’t have formal policies written down. For instance, you might already require employees to change their passwords regularly, but if that rule isn’t documented and consistently enforced, it won’t meet the CMMC standard.

Another common hurdle is limited resources. Large defense contractors often have entire teams dedicated to cybersecurity and compliance, while smaller businesses may rely on a single IT manager who’s already stretched thin. Trying to balance normal business operations with the additional workload of preparing for CMMC can feel like too much to handle without outside help.

The complexity of the controls can also catch companies off guard. Level 2, in particular, requires organizations to monitor their systems continuously and have well-defined response plans in place. That might mean investing in new tools for logging, patching, or incident detection. For a small manufacturer or service provider that has never needed those systems before, the learning curve can be steep.

Finally, many businesses underestimate the time it takes to get ready. Certification isn’t something that can be achieved overnight. Closing security gaps, training employees, and creating the necessary documentation can take a significant amount of time, depending on how mature your current practices are. For example, a company that hasn’t updated its security policies in years may need time to modernize and implement new procedures before even scheduling an assessment.

All of these challenges are manageable, but they highlight why it’s so important for SMBs to start preparing early and not wait until CMMC is a contract requirement.

How to Prepare for CMMC Now

At its core, preparing for CMMC starts with understanding where your business stands today. PulseOne  is a trusted provider of managed IT services, specializing in tailored solutions that help small and medium-sized businesses meet evolving compliance and security challenges. With the help of Knit Security, a leading CMMC-focused cybersecurity consulting firm, we can guide your business through the complexities of federal compliance. The first step is usually a gap analysis, comparing your current cybersecurity practices to the requirements of the certification level you’ll need. From there, it’s about prioritizing the gaps that pose the greatest risk, like missing access controls or outdated systems, and then building a plan to close them.

Documentation is just as important as technology. Even if your business already follows good cybersecurity habits, you’ll need written policies and procedures to show that your practices are consistent and repeatable. To conduct a gap analysis and learn more about how PulseOne and Knit Security can guide you through documenting your existing practices, schedule a CMMC consultation here.

Because certification takes time, starting early makes a huge difference. Taking small steps now—like documenting processes, updating security controls, and testing your response plans—will make the path to certification much smoother.

Whether you’re just starting to learn about CMMC or you already know certification is around the corner, PulseOne is here to guide you through the process step by step. Contact our team to conduct a CMMC Readiness Assessment and take the first, most important step toward compliance and long-term cybersecurity resilience.