Federal Contract Information (FCI)
Information provided by or generated for the government under a contract that is not intended for public release. Lower sensitivity. Protecting FCI maps to CMMC Level 1.
CMMC (Cybersecurity Maturity Model Certification) is a US Department of Defense program that verifies defense contractors protect sensitive government information, Federal Contract Information (FCI) and Controlled Unclassified Information (CUI). CMMC 2.0 has three levels, builds on NIST SP 800-171, and ties cybersecurity to the ability to win DoD contracts.
CMMC is the Cybersecurity Maturity Model Certification, a US Department of Defense program that verifies the companies in its supply chain protect sensitive government information. It exists to confirm that defense contractors and subcontractors, collectively the Defense Industrial Base, actually meet the cybersecurity standards their contracts require, rather than simply claiming to.
The current program, CMMC 2.0, has three levels of increasing rigor and is built on existing NIST standards, principally NIST SP 800-171 for protecting Controlled Unclassified Information. The CMMC Program rule took effect in December 2024, and the requirement is being phased into DoD contracts. Once it appears in a contract, meeting the specified CMMC level becomes a condition of award.
"The CMMC program enforces protection of sensitive unclassified information shared by the Department with its contractors and subcontractors."
For years, defense contractors were required by the DFARS clause 252.204-7012 to implement NIST SP 800-171 and to self-attest to their compliance. The problem was verification: self-attestation meant the DoD had little assurance that the controls were actually in place, and adversaries were successfully targeting the supply chain to steal sensitive defense information.
CMMC was created to close that gap by adding assessment and, for sensitive contracts, independent certification. The original 2020 model had five levels; the streamlined CMMC 2.0, announced in 2021, reduced that to three and re-anchored the program on NIST standards to reduce duplication. The result ties a measurable, verified cybersecurity posture directly to eligibility for DoD work.
CMMC exists to protect two categories of government information. The data you handle determines the level you need.
Information provided by or generated for the government under a contract that is not intended for public release. Lower sensitivity. Protecting FCI maps to CMMC Level 1.
More sensitive government information that requires safeguarding under law, regulation, or policy, such as controlled technical data. Protecting CUI maps to CMMC Levels 2 and 3.
CMMC 2.0 defines three levels of increasing rigor. The level a contract requires depends on the sensitivity of the information involved.
Basic safeguarding of FCI, aligned to the 15 requirements of FAR 52.204-21. Assessed by the contractor itself each year, with a senior official affirming compliance.
Protection of CUI, aligned to the 110 security requirements of NIST SP 800-171. Most CUI contracts require a third-party (C3PAO) assessment every three years; some lower-criticality contracts allow self-assessment.
The highest level, for the most sensitive programs. Adds enhanced requirements from NIST SP 800-172 on top of 800-171, and is assessed by the government (DIBCAC) rather than a third party.
How you demonstrate compliance depends on your level. Level 1 and some Level 2 contracts allow an annual self-assessment, with a senior company official affirming the results in the government's system.
Most Level 2 contracts that involve CUI require a third-party assessment by a C3PAO(a CMMC Third-Party Assessment Organization) every three years. Level 3 is assessed by the government itself. Across all levels, contractors must maintain a System Security Plan, and a Plan of Action and Milestones (POA&M) is permitted only for a limited set of requirements, with firm closeout timelines.
The requirement reaches subcontractors too. A prime contractor must flow the appropriate CMMC level down its supply chain, so the obligation applies to many small and mid-size suppliers, not just large primes.
These two are constantly confused. The simplest way to hold them apart: NIST SP 800-171 is the standard (the 110 requirements for protecting CUI), and CMMC is the program that verifies you meet it.
Contractors handling CUI have been required to implement 800-171 under DFARS for years and to self-score it. CMMC Level 2 takes those same 110 requirements and adds assessment and, for most CUI contracts, independent third-party certification. So implementing 800-171 well is the bulk of the work; CMMC is the proof. For the full breakdown of the standard, see our guide to NIST 800-171.
Six steps that take a contractor from uncertain to assessment-ready. Scoping the CUI environment tightly (step 2) is the biggest lever on cost and timeline.
Identify whether your contracts involve FCI (Level 1) or CUI (Level 2, occasionally Level 3). Your contract language and the data you handle drive the answer.
Define the assets that store, process, or transmit FCI or CUI, and separate them where possible. A tight scope is the single biggest lever on cost and effort.
For Level 2, assess against all 110 requirements, calculate your SPRS score using the DoD Assessment Methodology, and identify the gaps.
Close gaps, and for the limited items where a Plan of Action and Milestones is permitted, document them with owners and dates. A System Security Plan (SSP) is mandatory.
Assessors want artifacts, not assertions: policies, configurations, logs, and records that show each practice is implemented and operating.
Submit your self-assessment and affirmation, or schedule a certified third-party assessment (C3PAO) for the contracts that require one, then maintain the posture between cycles.
RiskWatch ships pre-built CMMC and NIST 800-171 assessments on a shared control library, calculates your posture, tracks remediation and POA&M items to closure, and keeps the System Security Plan and evidence an assessor expects.
The questions defense contractors ask most as the requirement rolls out.
Pre-built CMMC and NIST 800-171 assessments, SPRS scoring, POA&M and SSP support, and a timestamped evidence trail your C3PAO expects. 30-day free trial, no credit card.
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