Skip to content

CMMC 2.0 Explained: What Your Business Needs to Know

Monreal IT Jul 24, 2025 10:58:06 AM
CMMC 2.0 Blog Post Featured Image WEBP

CMMC 2.0 Simplified: Your Guide to the DoD’s Cybersecurity Update

I remember when the first version of the Cybersecurity Maturity Model Certification (CMMC) was announced. The collective groan from the defense industrial base was almost audible here in Cleveland. It felt complex, expensive, and a little overwhelming, especially for the small and medium-sized businesses that are the backbone of the supply chain. It was a well-intentioned effort to secure our nation's sensitive data, but the execution felt like a bit much.

Then came CMMC 2.0, and a collective sigh of relief followed. Okay, maybe it was more of a "wait, what changed?" followed by a sigh of relief. The Department of Defense (DoD) listened to the feedback and revamped the program to be more streamlined, flexible, and logical. Honestly, it’s a much more practical approach. But what is it, exactly? Let’s grab a cup of coffee and break it down.

From 1.0 to 2.0: A Much-Needed Glow-Up

The original CMMC, now affectionately called 1.0, was a five-level model that required every single contractor in the Defense Industrial Base (DIB) to get a third-party assessment. While the goal of verifying cybersecurity practices was sound, the one-size-fits-all approach was cumbersome and costly for companies that didn't handle highly sensitive information.

CMMC 2.0 simplifies this entire framework. The DoD’s primary goals with this update were to:

  • Safeguard sensitive information to protect the warfighter.
  • Enforce DIB cybersecurity standards for any company in the supply chain.
  • Ensure accountability while minimizing barriers to DoD compliance.
  • Cultivate a collaborative culture of cybersecurity and cyber resilience.
  • Maintain public trust through professional and ethical standards.

The result is a more focused model that aligns better with existing federal standards and reduces the compliance burden where it makes sense. It’s less about jumping through hoops and more about building a genuine security culture.

Breaking Down the CMMC 2.0 Levels

The biggest and most welcome change in CMMC 2.0 is the consolidation from five levels to three. This makes it much easier to understand where your organization fits and what you need to do. The level you must achieve is determined by the type of information your company handles.

Level 1: Foundational

Think of this as the entry level for good cyber hygiene. If your company only handles Federal Contract Information (FCI), this is your stop. FCI is information not intended for public release that is provided by or generated for the government under a contract.

  • Controls: Level 1 consists of 17 basic cybersecurity practices, which are the same as those found in the Federal Acquisition Regulation (FAR) 52.204-21.
  • Assessment: This level requires an annual self-assessment, where your company attests to its compliance. No third-party auditor needed here, which is a major cost-saver for many businesses.

Level 2: Advanced

This is where things get more serious, and it’s the level that will apply to most contractors. If your organization creates, stores, or transmits Controlled Unclassified Information (CUI), you’ll be aiming for Level 2. CUI is information that requires safeguarding but is not classified.

The CMMC 2.0 requirements for this level are a significant step up.

  • Controls: Level 2 aligns perfectly with the 110 security controls outlined in NIST SP 800-171, a standard many defense contractors are already familiar with. This alignment was a huge win for clarity and consistency.
  • Assessment: Here’s where it gets nuanced. Depending on the sensitivity of the CUI you handle, you will either need an annual self-assessment (for some contracts) or a triennial third-party assessment conducted by a certified CMMC Third-Party Assessment Organization (C3PAO).

Level 3: Expert

This is the top tier, reserved for companies working on the DoD’s highest-priority programs. These organizations handle CUI that is most critical to national security.

  • Controls: Level 3 builds on the 110 controls from NIST SP 800-171 and adds a subset of controls from NIST SP 800-172, which focuses on enhanced security against advanced persistent threats (APTs).
  • Assessment: Compliance at this level must be verified by a government-led assessment every three years. If you need Level 3, you definitely already know it.

Preparing for Your CMMC Journey

Seeing this all laid out might still feel a bit daunting, and that's okay. The key is to start now, not when a contract requirement forces your hand. The first step is to understand what kind of information you handle (FCI or CUI) to determine your target CMMC level.

From there, conducting a CMMC readiness assessment is the logical next step. This is essentially a gap analysis where you compare your current cybersecurity posture against the controls required for your target level. It helps you identify weaknesses and create a roadmap for remediation. This is a heavy lift, and it’s why many businesses that want to stay focused on their own work turn to a partner for help.

We happen to be a managed services provider Cleveland businesses trust to help them navigate the technical controls and documentation requirements with confidence. Cybersecurity is in our DNA, and we see CMMC not just as a compliance checklist but as a framework for building a truly resilient and secure business. It’s about protecting your data, your clients’ data, and our national security interests. It's a big responsibility, but you don’t have to carry it alone.