If you’re a small DoD supplier putting off CMMC compliance because “it’s expensive” or “we’ll get to it later” – here’s what that delay is actually costing you right now.
Contracts You Can’t Bid On
Every RFP that requires CMMC is a contract you’re ineligible for. As more primes require flow-down compliance from their supply chain, the number of opportunities shrinking for non-compliant suppliers grows monthly. Your competitors who invested in compliance are bidding on work you can’t touch.
The False Claims Risk
If you’ve self-attested to NIST 800-171 compliance in a DFARS 252.204-7012 clause and you’re not actually compliant, you have False Claims Act exposure. Penalties: triple damages plus per-claim fines. This isn’t theoretical – DOJ has an active enforcement initiative targeting cybersecurity false claims.
Higher Insurance Costs
Cyber insurance carriers are increasingly asking about CMMC/NIST compliance for defense contractors. Non-compliance means higher premiums or denial of coverage entirely.
What Compliance Actually Costs vs. What Non-Compliance Costs
Compliance: Level 1 for a small supplier (10-30 people) takes 4-8 weeks and costs a fraction of one government contract’s value. It’s a one-time investment with annual maintenance.
Non-compliance: Lost contracts (ongoing revenue loss), False Claims liability (potentially existential), breach costs without proper controls ($120K+ average), and increasing inability to compete as the market moves forward.
The ROI on CMMC compliance is among the clearest in business: invest once, win contracts repeatedly, avoid catastrophic risk.
We’re CyberAB registered and help small DIB suppliers get compliant efficiently. Level 1 in 4-8 weeks, right-sized for your scope.
Need IT help? Seashore IT provides flat-rate managed IT for businesses with 5-250 computers across the Western US – from auto shops and contractors to law firms and healthcare practices. Call (833) 997-6886 or email info@seashoreit.com.
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