```

[Federal Register Volume 88, Number 246 (Tuesday, December 26, 2023)]
[Proposed Rules]
[Pages 89058-89138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27280]

[[Page 89057]]

Vol. 88

Tuesday,

No. 246

December 26, 2023

Part II

Department of Defense

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32 CFR Part 170

Cybersecurity Maturity Model Certification (CMMC) Program and Program 
Guidance; Proposed Rule and Notice

Federal Register / Vol. 88 , No. 246 / Tuesday, December 26, 2023 / 
Proposed Rules

[[Page 89058]]

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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 170

[Docket ID: DoD-2023-OS-0063]
RIN 0790-AL49

Cybersecurity Maturity Model Certification (CMMC) Program

AGENCY: Office of the Department of Defense Chief Information Officer 
(CIO), Department of Defense (DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to establish requirements for a comprehensive 
and scalable assessment mechanism to ensure defense contractors and 
subcontractors have, as part of the Cybersecurity Maturity Model 
Certification (CMMC) Program, implemented required security measures to 
expand application of existing security requirements for Federal 
Contract Information (FCI) and add new Controlled Unclassified 
Information (CUI) security requirements for certain priority programs. 
DoD currently requires covered defense contractors and subcontractors 
to implement the security protections set forth in the National 
Institute of Standards and Technology (NIST) Special Publication (SP) 
800-171 Rev 2 to provide adequate security for sensitive unclassified 
DoD information that is processed, stored, or transmitted on contractor 
information systems and to document their implementation status, 
including any plans of action for any NIST SP 800-171 Rev 2 requirement 
not yet implemented, in a System Security Plan (SSP). The CMMC Program 
provides the Department the mechanism needed to verify that a defense 
contractor or subcontractor has implemented the security requirements 
at each CMMC Level and is maintaining that status across the contract 
period of performance, as required.

DATES: Comments must be received by February 26, 2024.

ADDRESSES: You may use the following methods to submit comments on:

 the proposed rule, identified by docket number DoD-2023-OS-
0063 and/or Regulatory Identifier Number (RIN) 0790-AL49 and title
 the guidance in the Appendix documents, identified by docket 
number DoD-2023-OS-0096 and title
 the information collection requirements, identified by docket 
number DoD-2023-OS-0097 and title

    Comment Submission Methods include:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Department of Defense, Office of the Assistant to 
the Secretary of Defense for Privacy, Civil Liberties, and 
Transparency, Regulatory Directorate, 4800 Mark Center Drive, Attn: 
Mailbox 24, Suite 08D09, Alexandria, VA 22350-1700.
    Instructions: All submissions received must include the agency name 
and docket number or RIN for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing at 
https://www.regulations.gov as they are received without change, 
including any personal identifiers or contact information.

FOR FURTHER INFORMATION CONTACT: Ms. Diane Knight, Office of the DoD 
CIO, 202-770-9100.

SUPPLEMENTARY INFORMATION: 

History of the Program

    The CMMC Program is designed to verify protection of sensitive 
unclassified information shared between the Department and its 
contractors and subcontractors or generated by the contractors and 
subcontractors. CMMC increases assurance that contractors and 
subcontractors are meeting cybersecurity requirements applying to 
acquisition programs and systems processing CUI.
    The beginnings of CMMC start with the November 2010, Executive 
Order (E.O.) 13556,\1\ Controlled Unclassified Information. The intent 
of this Order was to ``establish an open and uniform program for 
managing [unclassified] information that requires safeguarding or 
dissemination controls.'' Prior to this E.O., more than 100 different 
markings for this information existed across the executive branch. This 
ad hoc, agency-specific approach created inefficiency and confusion, 
led to a patchwork system that failed to adequately safeguard 
information requiring protection, and unnecessarily restricted 
information-sharing.
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    \1\ https://www.federalregister.gov/citation/75-FR-68675 
(November 4, 2010).
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    As a result, the E.O. established the CUI Program to standardize 
the way the executive branch handles information requiring safeguarding 
or dissemination controls (excluding information that is classified 
under E.O. 13526, Classified National Security Information \2\ or any 
predecessor or successor order; or the Atomic Energy Act of 1954,\3\ as 
amended).
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    \2\ https://www.federalregister.gov/citation/75-FR-707 (December 
29, 2009).
    \3\ https://www.govinfo.gov/link/uscode/42/2011, et seq.
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    In 2019, DoD announced the development of CMMC in order to move 
away from a ``self-attestation'' model of security. It was first 
conceived by the Office of the Under Secretary of Defense for 
Acquisition and Sustainment (OUSD(A&S)) to secure the Defense 
Industrial Base (DIB) sector against evolving cybersecurity threats. In 
September 2020, DoD published an interim rule, Defense Federal 
Acquisition Regulation Supplement (DFARS): Assessing Contractor 
Implementation of Cybersecurity Requirements (DFARS Case 2019-D041),\4\ 
which implemented the DoD's initial vision for the CMMC Program (``CMMC 
1.0'') and outlined the basic features of the framework (tiered model 
of practices and processes, required assessments, and implementation 
through contracts) to protect FCI and CUI. The interim rule became 
effective on 30 November 2020, establishing a five-year phase-in 
period. In response to approximately 750 public comments on the CMMC 
1.0 Program, in March 2021, the Department initiated an internal review 
of CMMC's implementation.
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    \4\ https://www.federalregister.gov/documents/2020/09/29/2020-21123/defense-federal-acquisition-regulation-supplement-assessing-contractor-implementation-of.
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    In November 2021, the Department announced ``CMMC 2.0,'' an updated 
program structure and requirements designed to achieve the primary 
goals of the internal review:
 Safeguard sensitive information to enable and protect the 
warfighter
 Enforce DIB cybersecurity standards to meet evolving threats
 Ensure accountability while minimizing barriers to compliance 
with DoD requirements
 Perpetuate a collaborative culture of cybersecurity and cyber 
resilience
 Maintain public trust through high professional and ethical 
standards
    The CMMC 2.0 Program has three key features:

     Tiered Model: CMMC requires companies entrusted with 
national security information to implement cybersecurity standards at 
progressively advanced levels, depending on the type and sensitivity of 
the information. The program also describes the process for requiring 
protection of information flowed down to subcontractors.
     Assessment Requirement: CMMC assessments allow the 
Department to verify the implementation of clear cybersecurity 
standards.

[[Page 89059]]

     Implementation through Contracts: Once CMMC is fully 
implemented, certain DoD contractors handling sensitive unclassified 
DoD information will be required to achieve a particular CMMC level as 
a condition of contract award.

CMMC 2.0 Overview as Proposed by This Rule

Current Requirements for Defense Contractors and Subcontractors

    Currently, federal contracts (including defense contracts) 
involving the transfer of FCI to a non-Government organization follow 
the requirements specified in FAR clause 52.204-21, Basic Safeguarding 
of Covered Contractor Information Systems.\5\ FAR clause 52.204-21 
requires compliance with 15 security requirements, FAR 52.204-21(b)(1), 
items (i) through (xv). These requirements are elementary for any 
entity wishing to achieve basic cybersecurity.
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    \5\ https://www.acquisition.gov/far/52.204-21.
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    Defense contracts involving the transfer of CUI to a non-Government 
organization may include applicable requirements of DFARS clause 
252.204-7012, Safeguarding Covered Defense Information and Cyber 
Incident Reporting.\6\ The DFARS clause 252.204-7012 requires defense 
contractors to provide adequate security on all covered contractor 
information systems by implementing the 110 security requirements 
specified in the National Institute of Standards and Technology (NIST) 
Special Publication (SP) 800-171, Protecting Controlled Unclassified 
Information in Nonfederal Systems and Organizations. The DFARS clause 
252.204-7012 includes additional requirements; for example, defense 
contractors must meet Federal Risk and Authorization Management Program 
(FedRAMP) standards by confirming that their Cloud Service Providers 
(CSP) have achieved the FedRAMP Baseline Moderate or Equivalent 
standard. The DFARS clause 252.204-7012 also requires defense 
contractors to flow down all the requirements to their subcontractors.
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    \6\ https://www.acquisition.gov/dfars/252.204-7012-safeguarding-covered-defense-information-and-cyber-incident-reporting.
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    Currently, to comply with DFARS clause 252.204-7012, contractors 
are required to develop a System Security Plan (SSP) \7\ detailing the 
policies and procedures their organization has in place to comply with 
NIST SP 800-171. The SSP serves as a foundational document for the 
required NIST SP 800-171 self-assessment. Self-assessment scores, as 
referenced in DFARS clause 252.204-7020, must be submitted in the DoD's 
Supplier Performance Risk System (SPRS).\8\ The highest score is 110, 
meaning all 110 NIST SP 800-171 security requirements have been fully 
implemented. If a contractor's SPRS score is less than 110, indicating 
security gaps exist, then the contractor must create a Plan of Action 
(POA) \9\ identifying security tasks that still need to be 
accomplished. In essence, an SSP describes the cybersecurity plan the 
contractor has in place to protect CUI. The SSP needs to go through 
each NIST SP 800-171 security requirement and explain how the 
requirement is implemented, monitored, and enforced. This can be 
through policy, technology, or a combination of both. The SSP will also 
outline the roles and responsibilities of security personnel to ensure 
that CUI is appropriately protected.
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    \7\ Required since November 2016, NIST SP 800-171 security 
requirement 3.12.4 states organizations must ``develop, document, 
and periodically update system security plans that describe system 
boundaries, system environments of operation, how security 
requirements are implemented, and the relationships with or 
connections to other systems.''
    \8\ https://www.sprs.csd.disa.mil/ under OMB control number 
0750-0004.
    \9\ The POA requirement described under DFARS clause 252.204-
7012 is different from a Plan of Action and Milestones (POA&M) 
requirement in CMMC as POAs do not require milestones.
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    In November 2020, the DoD released its DFARS Interim Rule, the 
Defense Federal Acquisition Regulation Supplement: Assessing Contractor 
Implementation of Cybersecurity Requirements.\10\ The goal of this rule 
was to increase compliance with its cybersecurity regulations and 
improve security throughout the DIB. This rule introduced three new 
clauses--DFARS clause 252.204-7019, DFARS clause 252.204-7020, and 
DFARS clause 252.204-7021.
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    \10\ https://www.federalregister.gov/documents/2020/09/29/2020-21123/defense-federal-acquisition-regulation-supplement-assessing-contractor-implementation-of.
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     DFARS clause 252.204-7019 strengthens DFARS clause 
252.204-7012 by requiring contractors to conduct a NIST SP 800-171 
self-assessment according to NIST SP 800-171 DoD Assessment 
Methodology.\11\ Self-assessment scores must be reported to the 
Department via SPRS. SPRS scores must be submitted by the time of 
contract award and not be more than three years old.
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    \11\ https://www.acq.osd.mil/asda/dpc/cp/cyber/docs/safeguarding/NIST-SP-800-171-Assessment-Methodology-Version-1.2.1-6.24.2020.pdf
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     DFARS clause 252.204-7020 notifies contractors that DoD 
reserves the right to conduct a higher-level assessment of contractors' 
cybersecurity compliance, and contractors must give DoD assessors full 
access to their facilities, systems, and personnel. Further, DFARS 
clause 252.204-7020 strengthens DFARS clause 252.204-7012's flow down 
requirements by holding contractors responsible for confirming their 
subcontractors have SPRS scores on file prior to awarding them 
contracts.
     DFARS clause 252.204-7021 paves the way for rollout of the 
CMMC Program. Once CMMC is implemented, DFARS clause 252.204-7021 
requires contractors to achieve the CMMC level required in the DoD 
contract. DFARS clause 252.204-7021 also stipulates contractors will be 
responsible for flowing down the CMMC requirements to their 
subcontractors.

Additional Requirements for Defense Contractors and Subcontractors 
Discussed in This Proposed Rule

    A key difference between the DFARS 252.204-7012 and CMMC Level 2 
requirements is that compliance with NIST SP 800-171 under DFARS 
252.204-7012 has not been consistently verified. Under CMMC, compliance 
will be checked by independent third-party assessors certified by DoD.
    When this 32 CFR CMMC Program rule is finalized, solicitations for 
defense contracts involving the processing, storing, or transmitting of 
FCI or CUI on a non-Federal system will, in most cases, have a CMMC 
level and assessment type requirement a contractor must meet to be 
eligible for a contract award. CMMC-related contractual processes will 
be addressed in DoD's DFARS Case 2019-D041, Assessing Contractor 
Implementation of Cybersecurity Requirements, which will be proposed by 
the Department in a separate rulemaking.\12\
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    \12\ Information on the Department's agenda for all rulemakings 
can be found at https://www.reginfo.gov/public/do/eAgendaMain and 
then selecting the relevant agency and rule name.
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    This rule establishes the CMMC Program and defines requirements 
both in general and based on the specific CMMC level and assessment 
type required by the contract and applicable subcontract. Each CMMC 
level and assessment type is described.
1. Contracts or Subcontracts With a CMMC Level 1 Self-Assessment 
Requirement
a. Security Requirements
    For CMMC Level 1, contractors and applicable subcontractors are 
already required to implement the 15 security requirements currently 
required by the FAR clause 52.204-21.

[[Page 89060]]

b. Assessment Requirements (New)
    At Level 1, CMMC adds a requirement for contractors and applicable 
subcontractors to verify through self-assessment that all applicable 
security requirements outlined in FAR clause 52.204-21 have been 
implemented. This self-assessment must be performed annually and the 
results must be entered electronically in the Supplier Performance Risk 
System (SPRS) (see Sec.  170.15 for details on CMMC Level 1 Self-
Assessment requirements and procedures, and specifically Sec.  
170.15(a)(1)(i) for the information collection).
c. Affirmation Requirements (New)
    A senior official from the prime contractor and any applicable 
subcontractor will be required to annually affirm continuing compliance 
with the specified security requirements. Affirmations are entered 
electronically in SPRS (see Sec.  170.22 for details on Affirmation 
requirements and procedures).
2. Contracts or Subcontracts With a CMMC Level 2 Self-Assessment 
Requirement
a. Security Requirements
    For CMMC Level 2, contractors and applicable subcontractors are 
already required to implement the 110 security requirements currently 
required by the DFARS clause 252.204-7012, which are aligned with NIST 
SP 800-171 Rev 2.
b. Assessment Requirements (New)
    At Level 2, CMMC adds a requirement for contractors and applicable 
subcontractors to verify that all applicable security requirements 
outlined in NIST SP 800-171 Rev 2 and required via DFARS clause 
252.204-7012 have been implemented. As determined by DoD, program 
contracts will include either a CMMC Level 2 Self-Assessment 
requirement or a CMMC Level 2 Certification Assessment requirement to 
verify a contractor's implementation of the CMMC Level 2 security 
requirements. Selected requirements are allowed to have a Plan of 
Action and Milestones (POA&M) that must be closed out within 180 days 
of the assessment (see Sec.  170.21 for details on POA&M). This self-
assessment must be performed on a triennial basis and the results must 
be entered electronically in SPRS (see Sec.  170.16 for details on CMMC 
Level 2 Self-Assessment requirements and procedures, and specifically 
Sec.  170.16(a)(1)(i) for information collection).
c. Affirmation Requirements (New)
    A senior official from the prime contractor and any applicable 
subcontractor will be required to affirm continuing compliance with the 
specified security requirements after every assessment, including POA&M 
closeout, and annually thereafter. Affirmations are entered 
electronically in SPRS (see Sec.  170.22 for details on Affirmation 
requirements and procedures).
3. Contracts or Subcontracts With a CMMC Level 2 Certification 
Assessment Requirement
a. Security Requirements
    For CMMC Level 2 Certification Assessment, contractors and 
applicable subcontractors are already required to implement the 
security requirements currently required by the DFARS clause 252.204-
7012, which are aligned with NIST SP 800-171 Rev 2.
b. Assessment Requirements (New)
    At Level 2, CMMC adds a requirement for contractors and applicable 
subcontractors to verify that all applicable security requirements 
outlined in NIST SP 800-171 Rev 2 and required via DFARS clause 
252.204-7012 have been implemented. As determined by DoD, program 
contracts will include either a CMMC Level 2 Self-Assessment 
requirement or a CMMC Level 2 Certification Assessment requirement to 
verify a contractor's implementation of the CMMC Level 2 security 
requirements. Selected requirements are allowed to have a POA&M that 
must be closed out within 180 days of the assessment (see Sec.  170.21 
for details on POA&M). The final certification will have up to a three-
year duration. The third-party assessment organization will enter the 
assessment information electronically into the CMMC Enterprise Mission 
Assurance Support Service (eMASS), that will electronically transmit 
the assessment results into SPRS (see Sec.  170.17 for details on CMMC 
Level 2 Certification Assessment requirements and procedures, and 
specifically Sec.  170.17(a)(1)(i) for information collection).
c. Affirmation Requirements (New)
    A senior official from the prime contractor and any applicable 
subcontractor will be required to affirm continuing compliance with the 
specified security requirements after every assessment, including POA&M 
closeout, and annually thereafter. Affirmations are entered 
electronically in SPRS (see Sec.  170.22 for details on Affirmation 
requirements, procedures, and information collection).
4. Contracts or Subcontracts With a CMMC Level 3 Certification 
Assessment Requirement
a. Security Requirements (New)
    For CMMC Level 3, when CMMC becomes a final rule, contractors and 
applicable subcontractors will be required to implement the 24 selected 
security requirements from NIST SP 800-172, as detailed in table 1 to 
Sec.  170.14(c)(4). CMMC Level 2 is a prerequisite for CMMC Level 3.
b. Assessment Requirements (New)
    At Level 3, CMMC adds a requirement for contractors and applicable 
subcontractors to verify through DoD assessment and receive 
certification that all applicable CMMC Level 3 security requirements 
from NIST SP 800-172 have been implemented. Selected requirements are 
allowed to have a POA&M that must be closed out within 180 days of the 
assessment (see Sec.  170.21 for details on POA&Ms). The final 
certification will be valid for up to three years. The DoD assessor 
will enter the assessment information electronically into the eMASS, 
that will electronically transmit the assessment results into SPRS (see 
Sec.  170.18 for details on CMMC Level 3 Certification Assessment 
requirements and procedures, and specifically Sec.  170.18(a)(1)(i) for 
information collection).
c. Affirmation Requirements (New)
    A senior official from the prime contractor and any applicable 
subcontractor will be required to affirm continuing compliance with the 
specified security requirements after every assessment, including POA&M 
closeout, and annually thereafter. Affirmations are entered 
electronically in SPRS (see Sec.  170.22 for details on Affirmation 
requirements, procedures, and information collection).

Summary of Provisions Contained in This Rule

Section 170.1 Purpose

    Section 170.1 addresses the purpose of this rule. It describes the 
CMMC Program and establishes policy for requiring the protection of FCI 
and CUI that is processed, stored, or transmitted on defense contractor 
and subcontractor information systems. The security standards utilized 
in the CMMC Program are from the FAR clause 52.204-21; NIST SP 800-171 
Rev 2; and selected requirements from the NIST SP 800-172, as 
applicable. The purpose of the CMMC Program is for contractors

[[Page 89061]]

and subcontractors to demonstrate that FCI and CUI being processed, 
stored, or transmitted is adequately safeguarded through the 
methodology provided in the rule.

Section 170.2 Incorporation by Reference

    Section 170.2 addresses the standards and guidelines that are 
incorporated by reference. The Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51 approves any materials that are 
incorporated by reference (as detailed in the Office of the Federal 
Register's Incorporation By Reference (IBR) Handbook, June 2023). 
Materials that are incorporated by reference in this rule are 
reasonably available. Information on how to access the documents is 
detailed in Sec.  170.2. Materials that are incorporated by reference 
in this rule are from the NIST (see Sec.  170.2(a)), the Committee on 
National Security Systems (see Sec.  170.2(b)), and the International 
Organization for Standardization/International Electrotechnical 
Commission (ISO/IEC) (see Sec.  170.2(c)) which may require payment of 
a fee.

    Note: While the ISO/IEC standards are issued jointly, they are 
available from the ISO Secretariat (see Sec.  170.2(c)).

    The American National Standards Institute (ANSI) IBR Portal 
provides access to standards that have been incorporated by reference 
in the U.S. Code of Federal Regulations at https://ibr.ansi.org. These 
standards incorporated by the U.S. government in rulemakings are 
offered at no cost in ``read only'' format and are presented for online 
reading. There are no print or download options. All users will be 
required to install the FileOpen plug-in and accept an online end user 
license agreement prior to accessing any standards.
    The materials that are incorporated by reference are summarized 
below.
    (a) Federal Information Processing Standard (FIPS) Publication 
(PUB) 200 (FIPS PUB 200), titled ``Minimum Security Requirements for 
Federal Information and Information Systems'' is the second of two 
security standards mandated by the Federal Information Security 
Management Act (FISMA). It specifies minimum security requirements for 
information and information systems supporting the executive agencies 
of the federal government and a risk-based process for selecting the 
security controls necessary to satisfy the minimum security 
requirements. This standard promotes the development, implementation, 
and operation of more secure information systems within the federal 
government by establishing minimum levels of due diligence for 
information security and facilitating a more consistent, comparable, 
and repeatable approach for selecting and specifying security controls 
for information systems that meet minimum security requirements. This 
document is incorporated by reference as a source for definitions.
    (b) FIPS PUB 201-3, titled ``Personal Identity Verification (PIV) 
of Federal Employees and Contractors'' establishes a standard for a PIV 
system that meets the control and security objectives of Homeland 
Security Presidential Directive-12. It is based on secure and reliable 
forms of identity credentials issued by the Federal Government to its 
employees and contractors. These credentials are used by mechanisms 
that authenticate individuals who require access to federally 
controlled facilities, information systems, and applications. This 
Standard addresses requirements for initial identity proofing, 
infrastructure to support interoperability of identity credentials, and 
accreditation of organizations and processes issuing PIV credentials. 
This document is incorporated by reference as a source for definitions.
    (c) NIST SP 800-37, revision 2, titled ``Risk Management Framework 
for Information Systems and Organizations: A System Life Cycle Approach 
for Security and Privacy'' describes the Risk Management Framework 
(RMF) and provides guidelines for applying the RMF to information 
systems and organizations. The RMF provides a disciplined, structured, 
and flexible process for managing security and privacy risk that 
includes information security categorization; control selection, 
implementation, and assessment; system and common control 
authorizations; and continuous monitoring. The RMF includes activities 
to prepare organizations to execute the framework at appropriate risk 
management levels. The RMF also promotes near real-time risk management 
and ongoing information system and common control authorization through 
the implementation of continuous monitoring processes; provides senior 
leaders and executives with the necessary information to make 
efficient, cost-effective, risk management decisions about the systems 
supporting their missions and business functions; and incorporates 
security and privacy into the system development life cycle. Executing 
the RMF tasks links essential risk management processes at the system 
level to risk management processes at the organization level. In 
addition, it establishes responsibility and accountability for the 
controls implemented within an organization's information systems and 
inherited by those systems. This document is incorporated by reference 
as a source for definitions.
    (d) NIST SP 800-39, titled ``Managing Information Security Risk: 
Organization, Mission, and Information System View'' provides guidance 
for an integrated, organization-wide program for managing information 
security risk to organizational operations (i.e., mission, functions, 
image, and reputation), organizational assets, individuals, other 
organizations, and the Nation resulting from the operation and use of 
federal information systems. SP 800-39 provides a structured, yet 
flexible approach for managing risk that is intentionally broad-based, 
with the specific details of assessing, responding to, and monitoring 
risk on an ongoing basis provided by other supporting NIST security 
standards and guidelines. The guidance provided in this publication is 
not intended to replace or subsume other risk-related activities, 
programs, processes, or approaches that organizations have implemented 
or intend to implement addressing areas of risk management covered by 
other legislation, directives, policies, programmatic initiatives, or 
mission/business requirements. Rather, the risk management guidance 
described herein is complementary to and should be used as part of a 
more comprehensive Enterprise Risk Management (ERM) program. This 
document is incorporated by reference as a source for definitions.
    (e) NIST SP 800-53, revision 5, titled ``Security and Privacy 
Controls for Information Systems and Organizations'' provides a catalog 
of security and privacy controls for information systems and 
organizations to protect organizational operations and assets, 
individuals, other organizations, and the Nation from a diverse set of 
threats and risks, including hostile attacks, human errors, natural 
disasters, structural failures, foreign intelligence entities, and 
privacy risks. The controls are flexible and customizable and 
implemented as part of an organization-wide process to manage risk. The 
controls address diverse requirements derived from mission and business 
needs, laws, executive orders, directives, regulations, policies, 
standards, and guidelines. Finally, the consolidated control catalog 
addresses security and privacy from a functionality perspective (i.e., 
the strength of functions and mechanisms provided by the controls) and 
from an assurance perspective (i.e., the measure

[[Page 89062]]

of confidence in the security or privacy capability provided by the 
controls). Addressing functionality and assurance helps to ensure that 
information technology products and the systems that rely on those 
products are sufficiently trustworthy. This document is incorporated by 
reference as a source for definitions.
    (f) NIST SP 800-82, revision 2, titled ``Guide to Industrial 
Control Systems (ICS) Security'' provides guidance on how to secure 
ICS, including Supervisory Control and Data Acquisition (SCADA) 
systems, Distributed Control Systems (DCS), and other control system 
configurations such as Programmable Logic Controllers (PLC), while 
addressing their unique performance, reliability, and safety 
requirements. The document provides an overview of ICS and typical 
system topologies, identifies typical threats and vulnerabilities to 
these systems, and provides recommended security countermeasures to 
mitigate the associated risks. This document is incorporated by 
reference as a source for definitions.
    (g) NIST SP 800-115, titled ``Technical Guide to Information 
Security Testing and Assessment'' assists organizations in planning and 
conducting technical information security tests and examinations, 
analyzing findings, and developing mitigation strategies. The guide 
provides practical recommendations for designing, implementing, and 
maintaining technical information security test and examination 
processes and procedures. These can be used for several purposes, such 
as finding vulnerabilities in a system or network and verifying 
compliance with a policy or other requirements. The guide is not 
intended to present a comprehensive information security testing and 
examination program but rather an overview of key elements of technical 
security testing and examination, with an emphasis on specific 
technical techniques, the benefits and limitations of each, and 
recommendations for their use. This document is incorporated by 
reference as a source for definitions.
    (h) NIST SP 800-160, Volume 2, revision 1, titled ``Developing 
Cyber-Resilient Systems: A Systems Security Engineering Approach'' 
focuses on cyber resiliency engineering--an emerging specialty systems 
engineering discipline applied in conjunction with systems security 
engineering and resilience engineering to develop survivable, 
trustworthy secure systems. Cyber resiliency engineering intends to 
architect, design, develop, implement, maintain, and sustain the 
trustworthiness of systems with the capability to anticipate, 
withstand, recover from, and adapt to adverse conditions, stresses, 
attacks, or compromises that use or are enabled by cyber resources. 
From a risk management perspective, cyber resiliency is intended to 
help reduce the mission, business, organizational, enterprise, or 
sector risk of depending on cyber resources. This document is 
incorporated by reference as a source for definitions.
    (i) NIST SP 800-171, revision 2, titled ``Security Requirements for 
Controlled Unclassified Information'' provides agencies with 
recommended security requirements for protecting the confidentiality of 
CUI when the information is resident in nonfederal systems and 
organizations; when the nonfederal organization is not collecting or 
maintaining information on behalf of a federal agency or using or 
operating a system on behalf of an agency; and where there are no 
specific safeguarding requirements for protecting the confidentiality 
of CUI prescribed by the authorizing law, regulation, or governmentwide 
policy for the CUI category listed in the CUI Registry. The 
requirements apply to all components of nonfederal systems and 
organizations that process, store, and/or transmit CUI, or that provide 
protection for such components. The security requirements are intended 
for use by federal agencies in contractual vehicles or other agreements 
established between those agencies and nonfederal organizations. This 
document is incorporated by reference as a foundational source for 
definitions and security requirements.
    (j) NIST SP 800-171A, titled ``Assessing Security Requirements for 
Controlled Unclassified Information'' provides federal and nonfederal 
organizations with assessment procedures and a methodology that can be 
employed to conduct assessments of the CUI security requirements in 
NIST SP 800-171. The assessment procedures are flexible and can be 
customized to the needs of the organizations and the assessors 
conducting the assessments. Security assessments can be conducted as 
self-assessments; independent, third-party assessments; or government-
sponsored assessments and can be applied with various degrees of rigor, 
based on customer-defined depth and coverage attributes. The findings 
and evidence produced during the security assessments can facilitate 
risk-based decisions by organizations related to the CUI requirements. 
This document is incorporated by reference as a foundational source for 
definitions and assessment.
    (k) NIST SP 800-172, titled ``Enhanced Security Requirements for 
Controlled Unclassified Information'' provides federal agencies with 
recommended enhanced security requirements for protecting the 
confidentiality of CUI: (1) when the information is resident in 
nonfederal systems and organizations; (2) when the nonfederal 
organization is not collecting or maintaining information on behalf of 
a federal agency or using or operating a system on behalf of an agency; 
and (3) where there are no specific safeguarding requirements for 
protecting the confidentiality of CUI prescribed by the authorizing 
law, regulation, or government-wide policy for the CUI category listed 
in the CUI Registry. The enhanced requirements apply only to components 
of nonfederal systems that process, store, or transmit CUI or that 
provide security protection for such components when the designated CUI 
is associated with a critical program or high value asset. The enhanced 
requirements supplement the basic and derived security requirements in 
NIST SP 800-171 and are intended for use by federal agencies in 
contractual vehicles or other agreements established between those 
agencies and nonfederal organizations. This document is incorporated by 
reference as a foundational source for security requirements.
    (l) NIST SP 800-172A, titled ``Assessing Enhanced Security 
Requirements for Controlled Unclassified Information'' provides federal 
agencies and nonfederal organizations with assessment procedures that 
can be used to carry out assessments of the requirements in NIST SP 
800-172. The assessment procedures are flexible and can be tailored to 
the needs of organizations and assessors. Assessments can be conducted 
as (1) self-assessments; (2) independent, third-party assessments; or 
(3) government-sponsored assessments. The assessments can be conducted 
with varying degrees of rigor based on customer-defined depth and 
coverage attributes. The findings and evidence produced during the 
assessments can be used to facilitate risk-based decisions by 
organizations related to the CUI enhanced security requirements. This 
document is incorporated by reference as a foundational source for 
definitions and assessment.
    (m) Committee on National Security Systems (CNSS) Instruction No. 
4009 provides a glossary of terms and applies to all U.S. Government 
Departments, Agencies, Bureaus and Offices, supporting contractors and 
agents that collect, generate, process, store, display,

[[Page 89063]]

transmit or receive classified or controlled unclassified information, 
or that operate, use, or connect to National Security Systems (NSS). 
This document is incorporated by reference as a source for definitions.
    (n) ISO/IEC 17011:2017, titled ``Conformity assessment--
Requirements for accreditation bodies accrediting conformity assessment 
bodies'' specifies requirements for the competence, consistent 
operation and impartiality of accreditation bodies assessing and 
accrediting conformity assessment bodies. This document is incorporated 
by reference as a source for requirements on the CMMC Ecosystem.
    (o) ISO/IEC 17020:2012, titled ``Conformity assessment--
Requirements for the operation of various types of bodies performing 
inspection'' specifies requirements for the competence of bodies 
performing inspection and for the impartiality and consistency of their 
inspection activities. It applies to inspection bodies of type A, B or 
C, as defined in ISO/IEC 17020:2012, and it applies to any stage of 
inspection.'' This document is incorporated by reference as a source 
for requirements on the CMMC Ecosystem.
    (p) ISO/IEC 17024:2012, titled ``Conformity assessment--
Requirements for the operation of various types of bodies performing 
inspection'' contains principles and requirements for a body certifying 
persons against specific requirements, and includes the development and 
maintenance of a certification scheme for persons.'' This document is 
incorporated by reference as a source for requirements on the CMMC 
Ecosystem.

Section 170.3 Applicability

    Section 170.3 identifies entities to which the rule applies and how 
the Department intends to implement the rule. The rule applies to 
defense contractors and subcontractors that will process, store, or 
transmit FCI or CUI, and private-sector businesses or other entities 
that are specified in Subpart C. Government information systems that 
are operated by contractors and subcontractors in support of the 
Government do not apply to this rule. CMMC Program requirements apply 
to DoD solicitations and contracts requiring defense contractors and 
subcontractors to process, store, or transmit FCI or CUI. Exceptions to 
the applicability of this rule are addressed in Sec.  170.3(c)(1) and 
(2). Department Program Managers or requiring activities will determine 
which CMMC Level will apply to a contract or procurement. Applicability 
of the CMMC Level to subcontractors is addressed in Sec.  170.23.
    Section 170.3 addresses the four-phased implementation plan of the 
CMMC Program requirements in solicitations and contracts. Phase 1 
begins on the effective date of the CMMC revision to DFARS 252.204-
7021. More information regarding Phase 1 can be found in Sec.  
170.3(e)(1). Phase 2 begins six months after the start date of Phase 1. 
More information regarding Phase 2 can be found in Sec.  170.3(e)(2). 
Phase 3 begins one calendar year after the start date of Phase 2. More 
information regarding Phase 3 can be found in Sec.  170.3(e)(3). Phase 
4, or full implementation, begins one calendar year after the start 
date of Phase 3. More information regarding Phase 4 can be found in 
Sec.  170.3(e)(4).

Section 170.4 Acronyms and Definitions

    Section 170.4 includes acronyms and definitions used in the rule 
text and can be used as a reference while reading the text and tables. 
CMMC introduces new terms and associated definitions, and customizes 
definitions for existing terms, as applied to the CMMC Program. CMMC-
custom terms and definitions are clearly marked to distinguish from 
terms sourced externally. CMMC also utilizes terms created by other 
authoritative sources, including NIST. Terms from other authoritative 
sources are also listed in Sec.  170.4 and are properly sourced.
    The Department developed the following CMMC-custom terms to enhance 
understanding of the requirements and elements of the CMMC Program and 
welcomes comments on these definitions as part of the proposed rule:

 Accreditation
 Accreditation Body
 Assessment
 Self-Assessment
 CMMC Level 2 Certification Assessment
 CMMC Level 3 Certification Assessment
 Assessment Findings Report
 Assessment Team
 Asset Categories
 Authorized
 CMMC Assessment and Certification Ecosystem
 CMMC Assessment Scope
 CMMC Assessor and Instructor Certification Organization 
(CAICO)
 CMMC instantiation of eMASS
 CMMC Level 1 Self-Assessment
 CMMC Level 2 Conditional Certification Assessment
 CMMC Level 2 Conditional Self-Assessment
 CMMC Level 2 Final Certification Assessment
 CMMC Level 2 Final Self-Assessment
 CMMC Level 3 Conditional Certification Assessment
 CMMC Level 3 Final Certification Assessment
 CMMC Third-Party Assessment Organization (C3PAO)
 Contractor Risk Managed Assets
 Controlled Unclassified Information (CUI) Assets
 External Service Provider (ESP)
 Federal Contract Information (FCI) Assets
 Organization-Defined
 Organization Seeking Assessment (OSA)
 Organization Seeking Certification (OSC)
 Out-of-Scope Assets
 Periodically
 Process, store, or transmit
 Restricted Information Systems
 Security Protection Assets
 Specialized Assets
 Test Equipment.

Section 170.5 Policy

    Section 170.5 addresses the policy underlying the rule. The 
protection of FCI and CUI on defense contractor information systems is 
crucial to the continuity of the missions and functions of the DoD. To 
that end, this rule requires that contractors and subcontractors 
implement the specified security requirements for the applicable CMMC 
Level. For CMMC Level 3, safeguards defined in NIST SP 800-172 and DoD-
specified parameters (see table 1 to Sec.  170.14(c)(4)) may be 
required.
    Program Managers and requiring activities identify the applicable 
CMMC Level. Factors used to determine which CMMC Level will be applied 
are included but not limited to the list found in Sec.  170.5(b)(1-5). 
CMMC Program requirements will flow down to subcontractors, as 
applicable (see Sec.  170.23). A DoD Service Acquisition Executive or a 
Component Acquisition Executive may elect to waive inclusion of CMMC 
Program requirements in a solicitation or contract.
    Section 170.5 addresses that the CMMC Program does not alter the 
requirements imposed on contractors and subcontractors in FAR 52.204-
21, DFARS subpart 204.73, or any other applicable safeguarding of 
information requirement. The CMMC Program verifies implementation of 
security requirements in FAR 52.204-21, NIST SP 800-171 Rev 2, and NIST 
SP 800-172, as applicable.

Section 170.6 CMMC PMO

    Section 170.6 addresses the CMMC Program Management Office (PMO) 
functions that are performed within the

[[Page 89064]]

Department of Defense Chief Information Officer (DoD CIO).

Section 170.7 DCMA DIBCAC

    Section 170.7 addresses how DCMA DIBCAC will support the CMMC 
Program by conducting CMMC Level 2 assessments of the Accreditation 
Body and C3PAOs; conducting CMMC Level 3 assessments for OSCs; and 
recording results, issuing certificates, tracking appeals, and 
retaining records as required.

Section 170.8 Accreditation Body

    Section 170.8 addresses the roles and responsibilities of the 
Accreditation Body, as well as requirements that the Accreditation Body 
must meet. The Accreditation Body must be a member in good standing 
with the Inter-American Accreditation Cooperation (IAAC) and become an 
International Laboratory Accreditation Cooperation (ILAC) Mutual 
Recognition Arrangement (MRA) signatory, with a signatory status scope 
of ISO/IEC 17020:2012 and be compliant with ISO/IEC 17011:2017.\13\ 
There is only one Accreditation Body for the DoD CMMC Program at any 
given time, and its primary mission is to authorize and accredit the 
C3PAOs. Prior to the Accreditation Body being compliant with ISO/IEC 
17011:2017 and completing a peer assessment of conformity with the IAAC 
in accordance with the ISO Committee on Conformity Assessment,\14\ the 
Accreditation Body may authorize but not accredit C3PAOs. After the 
Accreditation Body has achieved compliance with ISO/IEC 17011:2017 and 
completed a peer assessment of conformity with the IAAC in accordance 
with the ISO Committee on Conformity Assessment, the Accreditation Body 
may accredit C3PAOs.
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    \13\ https://www.iso.org/standard/67198.html.
    \14\ https://www.iso.org/committee/54998.html.
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    The Accreditation Body also oversees the CAICO to ensure compliance 
with ISO/IEC 17024:2012 \15\ and to ensure all training products, 
instruction, and testing materials are of high quality.
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    \15\ https://www.iso.org/standard/52993.html.
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    Section 170.8 addresses specific requirements for the Accreditation 
Body with regards to national security background checks, foreign 
ownership, reporting, information protection, and appeals. The 
Accreditation Body will also develop policies for Conflict of Interest 
(CoI), Code of Professional Conduct (CoPC), and Ethics that comply with 
all ISO/IEC 17011:2017 and DoD requirements. These policies will apply 
to the Accreditation Body as well as to all other individuals, 
entities, and groups within the CMMC Ecosystem. The information systems 
used by the Accreditation Body to process CMMC information have to meet 
all of the security requirements for CMMC Level 2 and will be assessed 
by DCMA's Defense Industrial Base Cybersecurity Assessment Center 
(DIBCAC).

Section 170.9 CMMC Third-Party Assessment Organizations (C3PAOs)

    Section 170.9 addresses the roles, responsibilities, and 
requirements for C3PAOs, which are the organizations that perform CMMC 
Level 2 Certification Assessments for OSCs. The C3PAOs will submit 
assessment data into the CMMC instantiation of government owned and 
operated system called eMASS,\16\ a CMMC instance of the Enterprise 
Mission Assurance Support Service. C3PAOs grant a certificate of 
assessment when all security requirements are met, in accordance with 
the requirements in Sec.  170.17 of this part.
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    \16\ This system is accessible only to authorized users.
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    Section 170.9 addresses detailed requirements for C3PAOs with 
regards to national security background checks, foreign ownership, 
reporting, records management, information protection, quality 
assurance, and appeals. The information systems used by C3PAOs to 
process CMMC assessment information have to meet all of the security 
requirements for CMMC Level 2 and will be assessed by DCMA DIBCAC. 
C3PAOs need to comply with ISO/IEC 17020:2012, as well as with the 
Accreditation Body's policies for CoI, CoPC, and Ethics.
    Prior to a C3PAO being compliant with ISO/IEC 17020:2012, the C3PAO 
may be authorized but not accredited. After a C3PAO is compliant with 
ISO/IEC 17020:2012, the C3PAO may be accredited.

Section 170.10 CMMC Assessor and Instructor Certification Organization 
(CAICO)

    Section 170.10 addresses the roles, responsibilities, and 
requirements for the CAICO, the organization that trains, tests, 
authorizes, and certifies CMMC assessors, instructors, and related 
professionals. There is only one CAICO for the DoD CMMC Program at any 
given time. The CAICO must comply with ISO/IEC 17024:2012, as well as 
with the Accreditation Body's policies for CoI, CoPC, and Ethics. 
Section 170.10 addresses detailed requirements for the CAICO with 
regards to certification examinations, quality assurance, appeals, 
records management, reporting, separation of duties, and information 
protection.

Section 170.11 CMMC Certified Assessor (CCA)

    Section 170.11 addresses the roles and responsibilities of a CMMC 
Certified Assessor (CCA) who conduct Level 2 Certification Assessments. 
In order to be a CCA, a candidate must first be a CCP, must adhere to 
the requirements set forth in Sec.  170.10, Sec.  170.8(b)(17), and 
complete a Tier 3 background investigation or equivalent. The required 
cybersecurity experience for different CCA roles is addressed in Sec.  
170.11(b)(6) and (7). Section 170.11 addresses CCA requirements with 
respect to security breaches; completion of a Tier 3 background 
investigation or equivalent; reporting; sharing assessment information; 
and permitted use of C3PAO equipment, devices, and services.

Section 170.12 CMMC Certified Instructor (CCI)

    Section 170.12 addresses the roles and responsibilities of a CMMC 
Certified Instructor (CCI) to teach CMMC assessor candidates. The CAICO 
trains and tests candidate CCIs per the requirements set forth in Sec.  
170.12(b). Candidate CCIs are provided with a list of requirements to 
obtain and maintain certification, compliance with Accreditation Body 
policies, work activity exclusions, confidentiality expectations, non-
disclosure clause, non-public training related information, forbidden 
consulting services, and reporting requirements.

Section 170.13 CMMC Certified Professional (CCP)

    Section 170.13 addresses the roles and responsibilities of a CMMC 
Certified Professional (CCP) required to provide advice, consulting, 
and recommendations to clients. The CAICO trains and tests candidate 
CCPs per the requirements set forth in Sec.  170.13(b) with CCP 
certification issued upon successful completion. A CCP can participate 
on CMMC Level 2 Certification Assessments with CCA oversight, however 
CCAs are responsible for making final assessment determinations. A list 
of CCP requirements is provided for obtaining and maintaining 
certification, compliance with Accreditation Body policies, completion 
of a Tier 3 background investigation or equivalent, sharing assessment 
specific information, and reporting requirements.

[[Page 89065]]

Section 170.14 CMMC Model

    Section 170.14 addresses the structure, security requirement 
contents, organization, sourcing, and numbering of the security 
requirements that comprise the CMMC Model. It also provides an overview 
of the assessment process. The CMMC Model consists of three (3) levels, 
each containing security requirements taken directly from existing 
regulations and guidelines. Firstly, Sec.  170.14(2) defines CMMC Level 
1 as the 15 requirements listed in the FAR clause 52.204-21(b)(1). 
Secondly, Sec.  170.14(3) defines CMMC Level 2 as the 110 requirements 
from the NIST SP 800-171 Rev 2. Lastly, Sec.  170.14(4) defines CMMC 
Level 3 as 24 selected requirements from the NIST SP 800-172.
    The CMMC security requirements are organized into domains following 
the approach taken in NIST SP 800-171 Rev 2. The numbering of the CMMC 
security requirements, addressed in Sec.  170.14(c)(1), is of the form 
DD.L#-REQ where the `DD' is the two-letter domain abbreviation, the 
`L#' is the CMMC Level, and the `REQ' is based directly on the 
numbering in the source. Assessment criteria for these security 
requirements, as described in Sec.  170.14(d), is based on security 
requirement assessment guidance provided in NIST SP 800-171A and NIST 
SP 800-172A.

Section 170.15 CMMC Level 1 Self-Assessment and Affirmation 
Requirements

    Section 170.15 addresses how an OSA will achieve and maintain 
compliance with CMMC Level 1 Self-Assessment. The OSA must successfully 
implement the security requirements listed in Sec.  170.14(c)(2) within 
their Level 1 CMMC Assessment Scope as described in Sec.  170.19(b). 
Successful implementation requires meeting all objectives defined in 
NIST SP 800-171A for the corresponding CMMC Level 1 security 
requirements as outlined in the mapping table 1 to Sec.  
170.15(c)(1)(i).
    After implementation, the OSA must perform a self-assessment to 
verify the implementation and score themselves using the scoring 
methodology provided in Sec.  170.24. All objectives must be met in 
order for a security requirement to be considered fully implemented; no 
security requirements may be placed on a POA&M for Level 1. The OSA 
must then input their results into SPRS as described in Sec.  
170.15(a)(1)(i) and submit an affirmation as described in Sec.  170.22.
    In order to be eligible for a contract with a CMMC Level 1 Self-
Assessment requirement, the OSA must have a Level 1 Self-Assessment and 
have submitted an affirmation. These activities must be completed 
annually.

Section 170.16 CMMC Level 2 Self-Assessment and Affirmation 
Requirements

    Section 170.16 addresses how an OSA will achieve and maintain 
compliance with CMMC Level 2 Self-Assessment. The OSA must successfully 
implement the security requirements listed in Sec.  170.14(c)(3) within 
its Level 2 CMMC Assessment Scope as described in Sec.  170.19(c). 
Successful implementation requires meeting all objectives defined in 
NIST SP 800-171A for the corresponding CMMC Level 2 security 
requirements.
    After implementation, the OSA must perform a self-assessment to 
verify the implementation and score themselves using the scoring 
methodology provided in Sec.  170.24. All objectives must be met in 
order for a security requirement to be considered fully implemented; in 
some cases, if not all objectives are met, some security requirements 
may be placed on a POA&M as provided for in Sec.  170.21. If the 
minimum score has been achieved and some security requirements are in a 
POA&M, the OSA has a Conditional Self-Assessment; if the minimum score 
has been achieved and no security requirements are in a POA&M, the OSA 
has a Final Self-Assessment. For Conditional Self-Assessments, a POA&M 
close-out must be conducted within 180 days as described in Sec.  
170.21(b).
    After both Conditional Self-Assessment and Final Self-Assessment, 
the OSA must input their results into SPRS as described in Sec.  
170.16(a)(1)(i) and submit an affirmation as described in Sec.  170.22.
    In order to be eligible for a contract with a CMMC Level 2 Self-
Assessment requirement, the OSA must have a Level 2 Conditional Self-
Assessment or Level 2 Final Self-Assessment and have submitted an 
affirmation. The Level 2 Self-Assessment must be completed tri-annually 
and the affirmation must be completed annually.

Section 170.17 CMMC Level 2 Certification Assessment and Affirmation 
Requirements

    Section 170.17 addresses how an OSC will achieve and maintain 
compliance with CMMC Level 2 Certification Assessment. The OSC must 
successfully implement the security requirements listed in Sec.  
170.14(c)(3) within its Level 2 CMMC Assessment Scope as described in 
Sec.  170.19(c). Successful implementation requires meeting all 
objectives defined in NIST SP 800-171A for the corresponding CMMC Level 
2 security requirements.
    After implementation, the OSC must hire a C3PAO to perform an 
assessment to verify the implementation. The C3PAO will score the OSC 
using the scoring methodology provided in Sec.  170.24. All objectives 
must be met in order for a security requirement to be considered fully 
implemented; in some cases, if not all objectives are met, some 
security requirements may be placed on a POA&M as defined in Sec.  
170.21. If the minimum score has been achieved and some security 
requirements are in a POA&M, the OSC has a Conditional Certification 
Assessment; if the minimum score has been achieved and no security 
requirements are in a POA&M, the OSC has a Final Certification 
Assessment. For Conditional Certification Assessments, a POA&M close-
out must be conducted within 180 days as described in Sec.  170.21(b).
    After both Conditional Certification Assessment and Final 
Certification Assessment, the C3PAO will input the OSC's results into 
the CMMC instantiation of eMASS as described in Sec.  170.17(a)(1)(i). 
After both Conditional Certification Assessment and Final Certification 
Assessment, the OSC must submit an affirmation as described in Sec.  
170.22.
    In order to be eligible for a contract with a CMMC Level 2 
Certification Assessment requirement, the OSC must have a CMMC Level 2 
Conditional Certification Assessment or CMMC Level 2 Final 
Certification Assessment and have submitted an affirmation. The CMMC 
Level 2 Certification Assessment must be completed tri-annually and the 
affirmation must be completed annually.

Section 170.18 CMMC Level 3 Certification Assessment and Affirmation 
Requirements

    Section 170.18 addresses how an OSC will achieve and maintain 
compliance with CMMC Level 3 Certification Assessment. The OSC must 
have a CMMC Level 2 Final Certification Assessment based on its Level 3 
CMMC Assessment Scope. The OSC must successfully implement the security 
requirements listed in Sec.  170.14(c)(4) and table 1 to Sec.  
170.14(c)(4) within its Level 3 CMMC Assessment Scope as described in 
Sec.  170.19(d). Successful implementation requires meeting all 
objectives defined in NIST SP 800-172A for the corresponding CMMC Level 
3 security requirements.
    After implementation, the OSC must contact DCMA DIBCAC to perform 
an assessment to verify the

[[Page 89066]]

implementation. DCMA DIBCAC will score the OSC using the scoring 
methodology provided in Sec.  170.24. All objectives must be met in 
order for a security requirement to be considered fully implemented; in 
some cases, if not all objectives are met, some security requirements 
may be placed on a POA&M as defined in Sec.  170.21. If the minimum 
score has been achieved and some security requirements are in a POA&M, 
the OSC has a Conditional Certification Assessment; if the minimum 
score has been achieved and no security requirements are in a POA&M, 
the OSC has a Final Certification Assessment. For Conditional 
Certification Assessments, a POA&M close-out must be conducted within 
180 days as described in Sec.  170.21(b).
    After both Conditional Certification Assessment and Final 
Certification Assessment, DCMA DIBCAC will input the OSC's results into 
the CMMC instantiation of eMASS as described in Sec.  170.18(a)(1)(i). 
After both Conditional Certification Assessment and Final Certification 
Assessment, the OSC must submit an affirmation as described in Sec.  
170.22.
    In order to be eligible for a contract with a CMMC Level 3 
Certification Assessment requirement, the OSC must have a CMMC Level 3 
Conditional Certification Assessment or CMMC Level 3 Final 
Certification Assessment and have submitted an affirmation. The CMMC 
Level 3 Certification Assessment must be completed tri-annually and the 
affirmation must be completed annually.

Section 170.19 CMMC Scoping

    Section 170.19 addresses the requirements for the scoping of each 
CMMC Level assessment. Scoping determines which assets are included in 
a given assessment and the degree to which each is assessed. The CMMC 
Assessment Scope is specified prior to any CMMC assessment, based on 
the CMMC Level being assessed. The Level 2 CMMC Assessment Scope may 
also be affected by any intent to achieve a CMMC Level 3 Certification 
Assessment, as detailed in Sec.  170.19(e).
    Scoping for CMMC Level 1, as detailed in Sec.  170.19(b), consists 
of all assets that process, store, or transmit FCI. These assets are 
fully assessed against the applicable CMMC security requirements 
identified in Sec.  170.14(c)(2) and following the procedures in Sec.  
170.15(c). All other assets are out of scope and are not considered in 
the assessment.
    Scoping for CMMC Level 2, as detailed in Sec.  170.19(c), consists 
of all assets that process, store, or transmit CUI, and all assets that 
provide security protections for these assets. These assets are fully 
assessed against the applicable CMMC security requirements identified 
in Sec.  170.14(c)(3) and following the CMMC Level 2 Self-Assessment 
procedures in Sec.  170.16(c) or the CMMC Level 2 Certification 
Assessment procedures in Sec.  170.17(c). In addition, Contractor Risk 
Managed Assets, which are assets that can, but are not intended to, 
process, store, or transmit CUI because of security policy, procedures, 
and practices in place, are documented and are subject to a limited 
check that may result in the identification of a deficiency, as 
addressed in table 1 to Sec.  170.19(c)(1). Finally, Specialized 
Assets, which are assets that can process, store, or transmit CUI but 
are unable to be fully secured, including: Internet of Things (IoT) 
devices, Industrial Internet of Things (IIoT) devices, Operational 
Technology (OT), Government Furnished Equipment (GFE), Restricted 
Information Systems, and Test Equipment, are documented but are not 
assessed against other CMMC security requirements, as addressed in 
table 1 to Sec.  170.19(c)(1). All other assets are out of scope and 
are not considered in the assessment.
    Scoping for CMMC Level 3, as detailed in Sec.  170.19(d), consists 
of all assets that can (whether intended to or not) or do process, 
store, or transmit CUI, and all assets that provide security 
protections for these assets. The CMMC Level 3 Assessment Scope also 
includes all Specialized Assets but allows an intermediary device to 
provide the capability for the Specialized Asset to meet one or more 
CMMC security requirements, as needed. These assets (or the applicable 
intermediary device, in the case of Specialized Assets) are fully 
assessed against the applicable CMMC security requirements identified 
in Sec.  170.14(c)(4) and following the procedures in Sec.  170.18(c). 
All other assets are out of scope and are not considered in the 
assessment.
    If an OSA utilizes an ESP, other than a Cloud Service Provider 
(CSP), the ESP must have a CMMC certification level equal to or greater 
than the certification level the OSA is seeking. For example, if an OSA 
is seeking a CMMC Level 2 Certification Assessment the ESP must have 
either a CMMC Level 2 Certification Assessment or a CMMC Level 3 
Certification Assessment.

Section 170.20 Standards Acceptance

    Section 170.20 addresses how OSCs that, prior to the effective date 
of this rule, have achieved a perfect score on a DCMA DIBCAC High 
Assessment with the same scope as a Level 2 CMMC Assessment Scope, are 
eligible for a CMMC Level 2 Certification Assessment.

Section 170.21 Plan of Action and Milestones Requirements

    Section 170.21 addresses rules for having a POA&M for the purposes 
of a CMMC assessment and satisfying contract eligibility requirements 
for CMMC. All POA&Ms must be closed within 180 days of the initial 
assessment. To satisfy CMMC Level 1 requirements, a POA&M is not 
allowed. To satisfy CMMC Level 2 requirements, both self-assessment and 
certification assessment, a POA&M is allowed. Section 170.21 details 
the overall minimum score that must be achieved and identifies the 
Level 2 security requirements that cannot have a POA&M and must be 
fully met at the time of the assessment. To satisfy CMMC Level 3 
requirements, a POA&M is allowed. Section 170.21 details the overall 
minimum score that must be achieved and identifies the Level 3 security 
requirements that cannot have a POA&M and must be fully met at the time 
of the assessment. Section 170.21 also established rules for closing 
POA&Ms.

Section 170.22 Affirmation

    Section 170.22 addresses that the OSA's affirming official must 
affirm, in SPRS, compliance with the appropriate CMMC Self-Assessment 
or Certification Assessment: upon completion of any conditional or 
final assessment, annually following final assessment, and following a 
POA&M closeout assessment (as applicable).

Section 170.23 Application to Subcontractors

    Section 170.23 addresses flow down of CMMC requirements from the 
prime contractor to the subcontractors in the supply chain. Prime 
contractors shall comply and shall require subcontractor compliance 
throughout the supply chain at all tiers with the applicable CMMC level 
for each subcontract as addressed in Sec.  170.23(a).

Section 170.24 CMMC Scoring Methodology

    Section 170.24 addresses the assessment finding types MET, NOT MET, 
and NOT APPLICABLE (N/A) in the context of CMMC assessments, and the 
CMMC Scoring Methodology used to measure the implementation status of 
security requirements for CMMC Level 2 and CMMC Level 3. Scoring is not 
calculated for CMMC Level 1 since all

[[Page 89067]]

requirements must be MET at the time of assessment.
    For CMMC Level 2, the maximum score is the total number of 
requirements and is the starting value for assessment scoring. Any 
requirement that has one or more NOT MET objectives reduces the current 
score by the value of the specific requirement. Values for each CMMC 
Level 2 requirement are enumerated in Sec.  170.24(c)(2)(i)(B).
    For CMMC Level 3, the maximum score is the total number of 
requirements and is the starting value for assessment scoring. Any 
requirement that has one or more NOT MET objectives reduces the current 
score by the value of the specific requirement. CMMC Level 3 does not 
use varying values; the value for each requirement is one (1), as 
described in Sec.  170.24(c)(3).

Appendix A to Part 170: Guidance

    Appendix A lists the guidance documents that are available to 
support defense contractors and the CMMC Ecosystem in the 
implementation and assessment of CMMC requirements.

Discussion of Public Comments and Resulting Changes

    As part of standing up version 1 of the CMMC Program, the 
Department of Defense published a DFARS interim final rule, ``Assessing 
Contractor Implementation of Cybersecurity Requirements'' in the 
Federal Register on September 29, 2020 (85 FR 61505). The Department 
received approximately 750 comments on the DFARS interim final rule 
pertaining to elements of the CMMC Program that are now being addressed 
in this rule. Those comments are summarized and addressed in the 
discussion and analysis.
    In addition to comments on elements of the CMMC Program, DoD also 
received comments on the associated DFARS text, solicitation 
provisions, and contract clauses relating to the CMMC Program. The CMMC 
Program requirements proposed in this rule will be implemented in the 
DFARS, as needed, which may result in changes to current DoD 
solicitation provisions and contract clauses relating to DoD's 
cybersecurity protection requirements, including DFARS clause 252.204-
7021, CMMC Requirements. DoD will address comments regarding the DFARS 
clause 252.204-7021 in a separate 48 CFR rulemaking.

1. Service Providers

    Comment: Multiple commenters asked about applicability of the CMMC 
Program to a variety of service providers. One commenter requested 
clarification regarding how CUI controls apply to internet Service 
Providers and their globally sourced service support because of the 
prohibition of foreign dissemination for CUI. Two commenters suggested 
that common carrier telecommunications (often termed as Plain-Old-
Telephone-Services (POTS)) and similar commercial services (cloud 
services, external service providers) should be treated as commercial 
off-the-shelf (COTS), and so excluded from CMMC certification 
requirements. One commenter expressed concerns about the impact of the 
rule on the telecom industry. One commenter recommended that, to limit 
the burden of CMMC implementation, contractors providing commercial 
services to support COTS items, such as technical support for software, 
should receive the same exceptions as other COTS contracts.
    Response: The CMMC Program will result in cybersecurity protection 
and assessment requirements for defense contractors and subcontractors. 
CMMC Level requirements will apply only if a defense contractor or 
subcontractor handles FCI or CUI on its own contractor information 
systems. If so, then under CMMC, the contractor or subcontractor will 
be required to comply with the cybersecurity protection and assessment 
requirements associated with the appropriate Level. As such, CMMC Level 
requirements will not apply to internet Service Providers or other 
telecommunications service providers (i.e., common carriers), unless 
those entities themselves are or intend to become defense contractors 
or subcontractors. In addition, there is no general prohibition of 
foreign dissemination for CUI, although certain CUI may be subject to 
export restrictions. Commercial item determinations per 48 CFR 15, to 
include those relating to common carrier telecommunications or cloud 
services, are not defined by CMMC. With respect to the CMMC Assessment 
Scope, although they provide connectivity for contractor systems, and 
the common carrier link is within the boundary of the contractor's 
system, the common carrier's information system is not within the 
contractor's CMMC Assessment Scope as long as CUI is encrypted during 
transport across the common carrier's information system.

2. Joint Ventures

    Comment: Multiple commenters asked for clarification on how to 
handle joint ventures with respect to DFARS clause 252.204-7021.
    Response: The CMMC Program requirements proposed in this rule will 
be implemented in the DFARS, as needed, which may result in changes to 
current DoD solicitation provisions and contract clauses, including 
DFARS clause 252.204-7021. As such, DoD cannot address applicability of 
current DFARS clause 252.204-7021 at this time. With respect to joint 
ventures, CMMC Program requirements will apply to information systems 
associated with the contract efforts that process, store, or transmit 
FCI or CUI, and to any information system that provides security 
protections for such systems, or information systems not logically or 
physically isolated from all such systems.

3. Internet of Things/Operational Technology

    Comment: Multiple commenters noted the applicability of the CMMC 
requirements to Internet of Things (IoT) and Operational Technology 
(OT) systems was unclear. Several commenters expressed concerns about 
the impact of the rule on factories and OT.
    Response: CMMC security requirements apply to information systems 
associated with the contract efforts that process, store, or transmit 
FCI or CUI, and to any information system that provides security 
protections for such systems; or are not logically or physically 
isolated from all such systems. In accordance with Sec.  170.19, an 
OSA's IoT or OT systems located within its Level 1 or Level 2 CMMC 
Assessment Scope are not assessed; however, for CMMC Level 2 they are 
required to be documented in the System Security Plan (SSP). When a 
CMMC Level 2 Certification Assessment is performed as a precursor to a 
CMMC Level 3 Certification Assessment, the IOT and OT (and all other 
Specialized Assets) should be assessed against all CMMC Level 2 
security requirements as described in Sec.  170.18(a)(1). For CMMC 
Level 3, an OSC's IoT or OT located within its CMMC Assessment Scope 
are assessed against all CMMC security requirements unless they are 
physically or logically isolated. However, for IoT and OT (and all 
other Specialized Assets), it is permissible to use intermediary 
devices to provide the capability for the specialized asset to meet 
CMMC Level 3 security requirements.

4. Government Furnished Equipment

    Comment: One commenter questioned how the interim rule applies to 
Government Furnished Equipment (GFE) in a `test' versus a `production 
environment.'
    Response: As described in Sec.  170.3, CMMC security requirements 
will apply

[[Page 89068]]

to any information system associated with the contract efforts that 
process, store, or transmit FCI or CUI, and to any information system 
that provides security protections for such systems; or information 
systems not logically or physically isolated from all such systems. 
This includes when a `Test Environment' processes, stores, or transmits 
FCI or CUI; provides security protections for such systems; or is not 
logically or physically isolated from such systems. See Sec.  170.19 
and the response to public comment under the heading 3. Internet of 
Things/Operational Technology in the Discussion of Comments and Changes 
section of this preamble for additional details on defining the scope 
of CMMC assessments.
    If GFE cannot be configured to meet all the NIST SP 800-171 Rev 2 
requirements or must be maintained in a specified configuration which 
does not comply with NIST SP 800-171 Rev 2, additional protections such 
as physical or logical isolation may be used for risk mitigation in 
accordance with the treatment of Specialized Assets as defined in table 
1 to Sec.  170.19(c)(1) CMMC Level 2 Scoping.

5. Fundamental Research

    Comment: Multiple commenters requested that DoD clarify the 
application of CMMC requirements to fundamental research. Commenters 
described adverse consequences of not explicitly exempting fundamental 
research from the CMMC requirements, noting that institutions of higher 
education will have to pull out of research agreements with the 
Department, may no longer accept DoD funds because the resource burden 
would be cost prohibitive to both the institution and its partners, and 
the burdens imposed by even CMMC Level 1 requirements would hinder the 
progress of fundamental research. These commenters also noted that 
restrictions on posting of public information would inhibit open 
collaboration and the exchange of ideas that is critical to the 
advancement of scientific discovery. Commenters also requested that the 
Department clarify that subcontracts scoped as fundamental research 
also be exempt from CMMC requirements.
    Response: CMMC Program requirements are designed to provide 
increased assurance to the Department that defense contractors can 
adequately protect FCI and CUI, in accordance with already applicable 
regulations and standards. Fundamental research is defined by National 
Security Defense Directive (NSDD)-189 \17\ as `basic and applied 
research in science and engineering, the results of which ordinarily 
are published and shared broadly within the scientific community, as 
distinguished from proprietary research and from industrial 
development, design, production, and product utilization, the results 
of which ordinarily are restricted for proprietary or national security 
reasons.' CMMC Program requirements apply only to defense contractors 
and subcontractors who handle FCI and CUI on an information system 
associated with a contract effort or any information system that 
provides security protections for such systems, or information systems 
not logically or physically isolated from all such systems. Fundamental 
research that is `shared broadly within the scientific community' is 
not, by definition, FCI or CUI; however, other research-related 
information that is provided to or handled by contractors as part of 
contract performance may be FCI or CUI, thus may trigger application of 
CMMC Level requirements. If DoD determines the information handled by 
contractors pursuant to the fundamental research contract activities is 
or will become FCI or CUI, the information would be required to be 
processed, stored, or transmitted on an information system compliant 
with the appropriate CMMC Level.
---------------------------------------------------------------------------

    \17\ https://irp.fas.org/offdocs/nsdd/nsdd-189.htm.
---------------------------------------------------------------------------

6. International--Foreign DIB Partners/Non-U.S. Contractors

    Comment: Multiple commenters asked if international subcontractors 
of a U.S. prime will require CMMC certification. Commenters also asked 
if there is a strategy for legally implementing CMMC requirements 
beyond the U.S. DIB, and if an enterprise-level resolution has been 
developed to address foreign DIB sovereignty. One commenter suggested 
that some foreign governments have issued guidance to their local 
companies directing them not to accept CMMC flow down requirements.
    One commenter expressed concern regarding the impact of CMMC to 
existing bilateral/multilateral security agreements. Another commenter 
asked if the foreign DIB will be authorized to evaluate U.S. DIB and 
vice versa. One non-U.S. commenter suggested using the existing 
Facility Security Clearance process to ensure a company is compliant 
with CMMC in accordance with national legislation.
    Response: Contractors are required to comply with all terms and 
conditions of the contract, to include terms and conditions relating to 
cybersecurity protections and assessments. In addition, offerors will 
be required to comply with the pre-award CMMC requirement. This holds 
true when a contract clause is flowed down to subcontractors. The 
Facility Security Clearance process does not apply to unclassified 
information systems owned by, or operated on behalf of, a non-federal 
entity (e.g., contractors), and, therefore, does not apply to systems/
networks that will be subject to CMMC requirements. This rule makes no 
distinction about which C3PAOs may assess which companies seeking 
certification. For more details on C3PAO requirements, see Sec.  170.9.

7. CUI and FCI

a. Marking and Identifying CUI
    Comment: Multiple commenters asked for clarification regarding 
definition, marking, and identification of CUI as related to CMMC 
requirements and DFARS clause 252.204-7021. One commenter asked if the 
definition of DoD CUI applies to the CUI required to be safeguarded 
under the CMMC clause. Another asked if DFARS clause 252.204-7021 
includes information that requires protection under DFARS clause 
252.204-7012.
    One commenter requested that the Department confirm that, under 
CMMC, contractors will only be responsible for protecting CUI that is 
clearly marked upon receipt from the Department and created by 
contractors.
    Response: If the contract includes a CMMC Level requirement, 
contractors will be required to protect FCI and CUI, as applicable, 
through fulfillment of the designated CMMC Level security requirements. 
CMMC does not in any way change the DoD requirements regarding the 
definition, marking, and protection of CUI.
    If DFARS clause 252.204-7012 applies, contractors are required to 
safeguard covered defense information in accordance with the terms and 
conditions of the clause and contract, which includes information 
developed in support of the contract. CMMC does not change these 
requirements.
b. Relationship of FCI and CUI to the CMMC Requirements
    Comment: One commenter suggested that the inclusion of FCI in CMMC 
needs significant clarification. Others asked if FCI references within 
the CMMC Model [1.0] and nonpublic DoD information references in 
Department of

[[Page 89069]]

Defense Instruction (DoDI) 8582.01 \18\ are the same type of 
information, and if DoDI 8582.01 is the definitive DoD policy for FCI 
and DoD standards regarding the requirements under FAR clause 52.204-
21.
---------------------------------------------------------------------------

    \18\ https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/DoDi/858201p.pdf?ver=2019-12-09-143118-860.
---------------------------------------------------------------------------

    Response: The CMMC Program requirements for Level 1 will apply when 
the contract effort requires contractors to process, store, or transmit 
FCI on its unclassified information system. If CUI is processed, 
stored, or transmitted on a contractor information system, a higher 
level of CMMC compliance or certification is required. The CMMC Level 
required to protect CUI (i.e., CMMC Level 2 Self-Assessment as 
described in Sec.  170.16, CMMC Level 2 Certification Assessment as 
described in Sec.  170.17, or CMMC Level 3 Certification Assessment as 
described in Sec.  170.18) is determined by the Department based upon 
the sensitivity of the CUI and will be identified in the solicitation.
    The CMMC Program uses the definitions of FCI from FAR 4.1901 and 
CUI from 32 CFR 2002, which are the definitive sources for these 
definitions. DoDI 8582.01, published on December 9, 2019, points to FAR 
clause 52.204-21 and DFARS clause 252.204-7012, both of which preceded 
it, to address the safeguarding requirements for FCI and CUI. CMMC 
builds from those requirements by requiring that defense contractors 
and subcontractors provide assurance, either with Self-Assessments, 
Third-Party Assessments, or Level 3 Assessments, as required, that they 
have implemented the required information protection requirements.

8. Small Business/Entities

a. Assistance/Support for Small Business
    Comment: Several commenters suggested that in order to successfully 
implement cybersecurity requirements, contractors require support from 
the Department. One commenter suggested DoD should perform an analysis 
of each requirement and ensure that necessary support structures are in 
place and fully functioning prior to implementing this rule, and that 
access to tech support/solutions should be provided. Multiple 
commenters suggested that more support and guidance is needed for small 
businesses trying to comply with CMMC. One commenter suggested that DoD 
should relax affiliation rules (in conjunction with the Small Business 
Association (SBA)) to allow small companies to work together to meet 
CMMC requirements while spreading the cost over a larger base and 
expand mentor-prot[eacute]g[eacute] agreements for larger businesses to 
help smaller companies with CMMC appraisals.
    One commenter expressed concern for non-traditional, innovative 
companies that are coming in through the Small Business Innovation 
Research (SBIR) and Small Business Technology Transfer (STTR) process 
and asked what DoD is doing to help them become compliant. Another 
noted that if CMMC Level 1 will be the minimum requirement for SBIRs 
and STTRs, regardless of whether they include FCI, it may significantly 
limit the number of universities that can partner with small businesses 
under these awards.
    Response: DoD's Office of Small Business and Technology 
Partnerships (OSBTP) is working to provide SBIR/STTR programs with 
support for CMMC implementation through the use of Technical and 
Business Assistance. The SBA's affiliation rules are codified at 13 CFR 
121.103, available at https://www.ecfr.gov/current/title-13/chapter-I/part-121. Any change to the SBA's affiliation rules is outside the 
scope of this rulemaking.
    The CMMC Program is designed to increase assurance that defense 
contractors do in fact, comply with information protection requirements 
to adequately protect FCI and CUI. Additional information to assist 
contractors regarding DoD's current information security protection 
requirements may be found in Frequently Asked Questions (FAQs) 
Regarding the Implementation of DFARS subpart 204.73, published at 
https://DoDprocurementtoolbox.com/.
b. Impact of Cost
    Comment: Multiple commenters commented on the cost impact of CMMC 
to small businesses, suggesting that the cost to become and remain 
compliant is too high. Several commenters added that small businesses 
limited by finances won't be able to compete, which could be 
detrimental to the supply chain and efforts to meet national defense 
goals, and that the rule fails to provide any consideration for the 
future loss of technology acquisition should small businesses be 
inadvertently precluded from participation. Other commenters suggested 
that the impact of CMMC will be a profound and significant obstacle to 
businesses due to their lack of resources as compared to their large 
business competitors, adding that the requirement to have the same 
measures in place for any company, regardless of size, incurs a higher 
percentage of indirect cost for small businesses. Multiple commenters 
remarked on the limited or lack of options for a small business to 
recover costs.
    Response: The estimated costs attributed to this rule do not 
include the costs associated with compliance with existing 
cybersecurity requirements under FAR clause 52.204-21 or associated 
with implementing NIST SP 800-171 requirements in accordance with DFARS 
clause 252.204-7012, Safeguarding Covered Defense Information and Cyber 
Incident Reporting. To the extent that defense contractors or 
subcontractors have already been awarded DoD contracts or subcontracts 
that include these clauses, and process, store, or transmit FCI or CUI 
in support of the performance of those contracts, costs for 
implementing those cybersecurity requirements should have already been 
incurred and are not attributed to this rule. Those costs are distinct 
from costs associated with undergoing a CMMC assessment to verify 
implementation of those security requirements. The CMMC Program does 
not levy additional information security protection requirements for 
CMMC Levels 1 and 2. The value of DoD's sensitive information (and 
impact of its loss to the Department) does not diminish when it moves 
to contractors--prime or sub, large or small.
    A Regulatory Flexibility Analysis was conducted. In comparison to 
CMMC 1.0, DoD has now eliminated the requirement for organizations to 
hire a third-party assessment organization to comply with CMMC Level 1. 
The CMMC Program requirements further address cost concerns by 
permitting self-assessment at Level 1 and at Level 2 for some contracts 
that are not designated to require the added assurance of C3PAO 
assessment.
    In addition, resources available through the DoD Office of Small 
Business Programs (OSBP) may help defray cybersecurity costs by helping 
companies stay up to date with the latest cybersecurity policies and 
best practices. The OSBP also partners with the NIST and its 
Manufacturing Extension Partnership (MEP) programs (https://www.nist.gov/mep), which operate across the U.S. to provide resource 
and funding assistance options.
    The Department currently has no plans for separate reimbursement of 
costs to acquire cybersecurity capabilities or a required cybersecurity 
certification that may be incurred by an offeror on a DoD contract. 
Costs may be recouped via competitively set prices, as companies see 
fit.

[[Page 89070]]

c. Alternative Implementation
    Comment: Multiple commenters requested that the government give 
small businesses time for CMMC compliance post-contract award. One 
commenter recommended that DoD consider only requiring government 
assessment of NIST SP 800-171 compliance (vice private third party) for 
small businesses, even at lower CMMC assessment levels, thus offsetting 
a higher burden level to small businesses. Several commenters commented 
on the need to include exemptions for small businesses that do not 
possess CUI and have never been contracted by the government. One added 
that DoD should identify portions of contracts which won't require CMMC 
so that small businesses are afforded maximum practicable opportunity 
regardless of their CMMC status.
    Response: The DoD has determined that the assessment of the ability 
of a prospective contactor to adequately protect FCI and CUI that will 
be processed, stored, or transmitted on information systems during 
contract performance is a requirement prior to award of any prime 
contract or subcontract. Failure to assess a prospective contractor's 
ability to comply with applicable information security protection 
requirements, such as NIST SP 800-171 Rev 2, risks significant 
performance delays if information cannot be shared immediately at 
contract award due to lack of compliance. As applicable, the awardee 
must be capable of processing, storing, and transmitting FCI and CUI at 
the start of the performance period, regardless of the business size of 
the awardee. The CMMC Program has simplified requirements for Level 1 
and 2 assessments in some contracts. Specifically, although contractors 
must still implement and maintain the security requirements set forth 
in FAR 52.204-21 to protect FCI and set forth in the NIST SP 800-171 
Rev 2 to protect CUI, the requirement to hire a third-party assessment 
organization for CMMC Level 1 was eliminated, and for some contracts, 
contractors may be permitted to self-assess compliance with CMMC Level 
2. Annual affirmations are also required for CMMC Level 1 and 2.
    Prospective contractors must make a business decision regarding the 
type of DoD business they wish to pursue and understand the 
implications for doing so. If an offeror or current DoD contractor or 
subcontractor has self-assessed then later decides to pursue a contract 
or subcontract requiring a certification at CMMC Level 2 or 3, it will 
need to factor in the time and investment necessary to hire a third-
party assessment organization and achieve certification as a condition 
of contract award.
    Public comments received illustrate that some small businesses may 
be unaware of how to propose cybersecurity-related costs for cost-type 
contracts. This rule does not change existing contract cost principles 
or procedures. For firm-fixed priced efforts, market supply and demand 
dictates profitability and bid prices, and underlying costs are not 
itemized.

9. Disputes Regarding CMMC Assessments

    Comment: Multiple commenters asked about the CMMC assessment 
dispute resolution process, with regard to which standards would be 
followed, how much time would be available to appeal findings, the 
types of complaints that could be raised, any limits to the costs or 
schedule required for dispute resolution, and roles and 
responsibilities of the DoD, C3PAOs, and the Accreditation Body. 
Commenters also wanted to know whether a tiered recourse process would 
be available to resolve contractor objections to the initial 
resolution. Two commenters expressed concerns regarding potential 
impacts of C3PAO assessment errors. Two commenters requested 
clarification regarding whether the CMMC Level required by the DoD or a 
prime contractor could be contested.
    Response: The CMMC assessment appeal process (formerly referred to 
as dispute resolution) described in the DFARS Case 2019-D041 
Supplementary Information has changed and is described in Sec.  
170.9(b)(20) and Sec.  170.8(b)(16). The appeals process is derived 
from and consistent with ISO/IEC 17020:2012 and ISO/IEC 17011:2017. 
Each C3PAO is required to have a time-bound, internal appeals process 
to address disputes related to perceived assessor errors, malfeasance, 
and unethical conduct. Requests for appeals will be reviewed and 
approved by individual(s) within the C3PAO not involved in the original 
assessment activities in question. OSCs can request a copy of the 
process from their C3PAO. If a dispute regarding assessment findings 
cannot be resolved by the C3PAO, it will be escalated to the 
Accreditation Body. The decision by the Accreditation Body will be 
final.
    A request for an appeal about an assessor's professional conduct 
that is not resolved with the C3PAO will be escalated and resolved by 
the Accreditation Body.
    The issue of C3PAO liability is between an OSC and the C3PAO with 
which it contracts to do the assessment.
    Any questions about the CMMC Level required by the solicitation 
should be directed to the contracting officer for the affected 
contractor.

10. Acceptance of Alternate Standards

a. NIST SP 800-171 Rev 2 DoD Assessments and CMMC Assessments
    Comment: Multiple commenters asked for clarification on reciprocity 
between NIST SP 800-171 Rev 2 DoD Assessments and CMMC assessments.
    Response: As stated in Sec.  170.20(a), DoD intends to allow 
qualified standards acceptance of High confidence assessment using NIST 
SP 800-171 Rev 2 for CMMC Level 2. However, the CMMC Program 
requirements proposed in this rule will be implemented in the DFARS, as 
needed, which may result in changes to current DoD solicitation 
provisions and contract clauses relating to cybersecurity assessments.
b. Cloud Standards
    Comment: Many commenters expressed concerns regarding CMMC 
recognition of Federal Risk and Authorization Management Program 
(FedRAMP) and requested guidance on which FedRAMP baselines, if any, 
would be granted standards acceptance at each CMMC Level. A few 
commenters sought assurance that DoD Cloud Computing Security 
Requirements Guide (SRG) Impact Levels 4 and 5 would not be applied to 
CMMC Level 3.
    Response: CMMC does not offer comprehensive acceptance of FedRAMP. 
The CMMC Program allows the acceptance of FedRAMP environments in some 
cases to meet CMMC requirements in connection with use of a Cloud 
Service Provider (CSP). If an OSC uses an external CSP to process, 
store, or transmit CUI or to provide security protection for any such 
component, the OSC must ensure the CSP's product or service offering 
either (1) is authorized as FedRAMP Moderate or High on the FedRAMP 
Marketplace; or (2) meets the security requirements equivalent to those 
established by the Department for the FedRAMP Moderate or High 
baseline. The CSP will provide evidence that its product or service 
offering meets the security requirements equivalent to FedRAMP Moderate 
or High by providing a body of evidence (BOE) that attests to and 
describes how the CSP's product or service offering meets the FedRAMP 
baseline security requirements. Note that for any portion of the on-
premises (internal) network

[[Page 89071]]

that interacts with the cloud service offering and is within the CMMC 
Assessment Scope, the OSC is required to meet all applicable CMMC 
requirements to achieve certification.
    The DoD Cloud Computing SRG applies to DoD-provided cloud services 
and those provided by a contractor on behalf of the department, i.e., a 
commercial cloud service provider or integrator. Cloud Computing SRG 
does not apply to CMMC.
c. Other Standards
    Comment: Numerous commenters asked whether CMMC could leverage the 
results of other assessments, such as ISO/IEC 27001/27002, NIST SP 800-
53, NIST SP 800-172, HITRUST, DoE Cybersecurity Capability Maturity 
Model, NIAP Common Criteria Testing Laboratory Services (CCEVS), 
Committee on National Security Systems (CNSS) Instruction No. 12533 
(CNSSI 12533), ISA/IEC-62443, DoD's Security Technical Implementation 
Guides (STIG), NIST Cyber Security Framework (CSF), NIST Risk 
Management Framework (RMF), the American Institute of CPAs Service and 
Organizational Controls, Service and Organization Controls (SOC) Trust 
Services Criteria (SOC 2), ISA/IEC-62443, ITAR, Criminal Justice 
Information Services (CJIS) security standards, and non-ISO/IEC 
standards used by foreign partners such as the Australian Cybersecurity 
Centre Essential Eight Maturity Model.
    Response: The CMMC Program standards acceptance is defined in Sec.  
170.20 of this rule.

11. CMMC Assessment Scope

    Comment: Multiple commenters requested details on assessment 
boundaries and what systems are in-scope for a CMMC assessment. 
Questions included how assessment boundaries are defined, how networks 
composed of federal components (including systems operated on behalf of 
the government) and non-federal components are addressed, how 
centralized security services are treated, and how ``enduring 
exceptions'' are handled.
    Response: Sec.  170.19 states that prior to a CMMC assessment, the 
OSA must define the CMMC Assessment Scope for the assessment, 
representing the boundary with which the CMMC assessment will be 
associated. This section includes detailed guidance on how to define 
the CMMC Assessment Scope, how different categories of equipment are 
defined to be in- or out-of-scope for an assessment, how the security 
of specialized equipment is expected to be managed, External Service 
Providers considerations, and the incorporation of people, technology, 
and facilities into the boundary.
    GFE, IoT, OT, and, as defined, Restricted Information Systems and 
Test Equipment are categorized as ``Specialized Assets'' in Sec.  
170.19. NIST SP 800-171 Rev 2 uses the term ``enduring exceptions'' to 
describe how to handle exceptions for Specialized Assets.

12. Applicability of Multiple CMMC Levels

    Comment: Two commenters sought confirmation that it is acceptable 
for contractors with multiple business segments to have one or more 
CMMC assessments (e.g., one segment at Level 1, another at Level 2). 
Commenters also wanted to know if systems within the scope of an 
assessment require multiple assessments if the systems are used to 
support tasks under multiple contracts. Another asked, if a company has 
multiple Commercial and Government Entity (CAGE) codes, whether a 
single assessment can cover all CAGE codes.
    Response: Yes, it is possible to have different business segments 
or different enclaves assessed or certified at different CMMC Levels. A 
CMMC assessment can be restricted to a particular segment or enclave 
based on the defined CMMC Assessment Scope, and an OSA can define 
multiple CMMC Assessment Scopes. Thus, a business segment that only 
supports Level 1 (FCI) efforts can identify a boundary that is assessed 
against Level 1 requirements, and another segment that supports Level 2 
(CUI) efforts can identify a different boundary that is assessed 
against Level 2. Offerors will be required to attain CMMC 
certification, when applicable, at or above the level required by the 
solicitation, by the time of award (or option period exercise) and must 
maintain their CMMC status throughout the life of the contract, task 
order, or delivery order.

13. CMMC Implementation Timeline and Pilot Program

a. CMMC Schedule
    Comment: There were many comments requesting clarification or 
justification regarding the general roll-out schedule for DFARS clause 
252.204-7021. Some commenters requested program acceleration and others 
advocated for delays. Two commenters were confused by statements in the 
Federal Register Notice that the timeline for implementation across the 
DoD contractor population would be seven years, but that all contracts 
would include the CMMC clause in five years, at the end of the roll-
out.
    Response: The DoD is implementing a phased implementation for the 
CMMC Program and intends to introduce CMMC requirements in 
solicitations over a three-year period to provide appropriate ramp-up 
time. The Department anticipates it will take two years for companies 
with existing contracts to become CMMC certified.
    In response to public comment, assessment requirements in CMMC have 
been simplified to three tiers, and DoD is developing policy to guide 
Program Managers through a time-phased introduction of CMMC 
requirements. From the effective date of the DFARS rule that will 
implement CMMC requirements, DoD will include CMMC self-assessment 
requirements in solicitations when warranted by the FCI and CUI 
categories associated with the planned effort. A similar requirement 
for CUI has been in place since publication of the September 2020 rule 
that implemented DFARS provision 252.204-7019, which requires offerors 
to submit NIST SP 800-171 Rev 2 self-assessment results in the SPRS as 
a condition of award. DoD intends to include CMMC requirements for 
Levels 1, 2, and 3 in all solicitations issued on or after October 1, 
2026, when warranted by any FCI or CUI information protection 
requirements for the contract effort. In the intervening period, DoD 
Program Managers will have discretion to include CMMC requirements in 
accordance with DoD policies.
b. CMMC Pilot Program
    Comment: Multiple commenters wanted more information about the 
roll-out of the CMMC pilot program, including transparency about which 
acquisition programs are being considered for inclusion prior to the 
release of a solicitation. Commenters requested details on the 
``provisional period,'' whether there would be a break between the 
pilot program and the official launch of the CMMC Program, whether 
there would be an assessment on the effectiveness of the pilot, and if 
lessons learned from the pilot would be shared across the community.
    Response: CMMC 1.0 did include a CMMC Pilot program; however, CMMC 
2.0 does not include pilots. Instead, upon the effective date of the 
associated CMMC DFARS rule, the Department intends to begin including 
CMMC self-assessment requirements when applicable, for protection of 
FCI and CUI.

[[Page 89072]]

c. Communicating CMMC Requirements
    Comment: Two commenters requested that, during the phased rollout 
of CMMC, defense contractors be forewarned of DoD plans to include a 
CMMC requirement in an upcoming solicitation. They asked for 
transparency with respect to which contracts were being considered for 
CMMC requirements.
    Response: Offerors and contractors will be informed of CMMC 
requirements in solicitations through (1) the specification of a 
required CMMC Level, and (2) inclusion of the appropriate DFARS 
provisions or clauses. There is no plan to advertise a list of 
solicitations that will or may include CMMC requirements. The 
implementation plan described in Sec.  170.3(e) addresses phase-in of 
CMMC requirements.
d. Market Capacity for Assessments
    Comment: Multiple commenters wanted details about assessor 
availability and were concerned that a lack of assessors would impact 
the schedule for including CMMC requirements in solicitations and 
contractor planning to attain CMMC certification to meet those 
requirements.
    Response: The phased implementation plan described in Sec.  
170.3(e) is intended to address ramp-up issues, provide time to train 
the necessary number of assessors, and allow companies the time needed 
to understand and implement CMMC requirements. An extension of the 
implementation period or other solutions may be considered in the 
future to mitigate any C3PAO capacity issues, but the Department has no 
such plans at this time. If changes to the implementation plan occur, 
DoD policies that govern requirements definition in the acquisition 
process will be modified.
e. Certification Sustainment During Validity Period
    Comment: Three commenters asked about sustainment of CMMC 
certification during the three-year certificate validity period. They 
wanted to know how sustainment will be monitored and whether 
demonstrating continuous monitoring capabilities would be considered in 
lieu of a strict three-year recertification period. There were also 
questions about what the criteria or triggers would be that would lead 
to a loss of accreditation during this period, including what happens 
when a company with a certification is acquired by another company, and 
whether contractors are required to notify the DoD if systems fall out 
of compliance with CMMC requirements.
    Response: The validity period is one (1) year for CMMC Level 1 and 
three (3) years for CMMC Levels 2 and 3. Contractors must continue to 
meet CMMC requirements during the period of performance of the 
contract. Under CMMC, contractors must submit affirmations into SPRS 
for each assessment, attesting that they have met the CMMC requirements 
and will maintain the applicable information systems at the required 
CMMC level as specified in Sec.  170.22. Monitoring contractor 
compliance with the terms of the contract is the responsibility of the 
contractor, with the government contracting officer. DoD is not 
utilizing a continuous monitoring capability in lieu of compliance 
requirements. DoD understands that information systems operating in a 
CMMC Assessment Scope will require upgrades and maintenance. For 
systems certified at CMMC Level 2 or above, a plan for addressing 
deficiencies is defined in Sec.  170.21.
    It is possible for an organization to need a new assessment during 
the validity period. CMMC self-assessments and certifications are valid 
for a defined CMMC Assessment Scope. If the CMMC Assessment Scope 
changes due to infrastructure modifications or expansion of the CMMC 
Assessment Scope due to new acquisition, a new assessment may be 
required. The original CMMC certification remains valid for the 
original CMMC Assessment Scope. The information system(s) in the new 
CMMC Assessment Scope may not be used to process, store, or transmit 
CUI for any contract until it is validated via a new CMMC assessment. 
The same applies to the annual affirmations. During the annual 
affirmation process, a senior organization official affirms that the 
organization is satisfying and will maintain the requirements of the 
specified CMMC level (e.g., CMMC Level 2 Self-Assessment). The 
affirmation applies to the CMMC Assessment Scope. At the time of a new 
self-assessment or certification, a new affirmation is submitted into 
SPRS affirming that the organization meets the CMMC requirements and 
will maintain the applicable information system (within the CMMC 
Assessment Scope) at the required CMMC level. For CMMC Levels 2 and 3, 
an affirmation is required to be submitted in SPRS annually for the 
duration of the triennial validity period and at the conclusion of any 
POA&M closeout assessments. Affirmation requirements are set forth in 
Sec.  170.22.

14. CMMC Assessment Timeline

    Comment: Several comments requested details about CMMC assessment 
timelines, including how long an assessment would take, how long after 
an assessment was completed would the assessment report be ready, and 
when SPRS content would be updated. One commenter wanted to know how 
soon after a failed assessment a subsequent assessment could be 
scheduled. One commenter wanted details about the remediation period.
    Response: The actual length of time it takes for an OSA to prepare 
for, and assessors to conduct an assessment and prepare the assessment 
report depends on many factors, including the number of systems and 
networks in the CMMC Assessment Scope, the level of assessment being 
conducted, staff preparedness for assessor questions, and the number of 
assessors conducting the assessment.
    For CMMC assessments, C3PAOs will upload the results of the 
assessment and the signed CMMC certificate into the CMMC instantiation 
of eMASS. Certification is automatically posted to SPRS. There is no 
minimum time to wait after a failed assessment before scheduling 
another assessment.
    A NOT MET requirement may be re-evaluated during the course of the 
assessment and for 10 business days following the active assessment 
period under certain conditions, as set forth in Sec.  170.17(c)(2) and 
Sec.  170.18(c)(2). A Level 2 or Level 3 conditional assessment and 
associated POA&M must be closed out within 180 days.

15. Assessment Delays and Award Impact

    Comment: Several commenters expressed concerns about the impact 
that delays in the assessment process would have on contract award. For 
example, if an assessment is held up, by no fault of the contractor, 
such that the results will not be available until after the award date, 
will the contractor be ineligible to receive the award or is there a 
process for delaying the award? Would the answer be the same for a 
reassessment of a contractor whose three-year assessment or certificate 
is expiring? On a related issue, one comment asked about the timing of 
reassessment/recertification and whether work on an existing contract 
can continue after an assessment/certificate has expired if the 
reassessment is scheduled but delayed.
    Response: The CMMC Program rule does not provide mitigations for 
assessment delays that may impact timeliness of certification or 
recertification with regard to the closing date of a particular 
solicitation. Offerors will be required to attain CMMC certification, 
when applicable, at or

[[Page 89073]]

above the level in the solicitation, by the time of award (or option 
period exercise) and must maintain their CMMC status throughout the 
life of the contract, task order, or delivery order. The three-year 
validity period should provide adequate time to prepare for and 
schedule subsequent assessments for certification. Timelines for 
meeting CMMC requirements for Level 1 or 2 self-assessment are within 
the control of the contractor.

16. Defense Contractor and Subcontractor Engagement

    Comment: Several commenters suggested that defense contractors and 
subcontractors should be more engaged in the formulation of the rule 
and better informed in how the rule will be applied. They indicated 
that guidance is unclear, ad hoc, and inconsistent, and requested an 
authoritative source of information, such as FAQs, that are kept up to 
date and provide reliable responses to questions. They also expressed a 
desire for more transparency in how ambiguities are being resolved in 
early assessments.
    Response: In September 2019, the CMMC PMO released the first draft 
publication of the CMMC Model v 0.4. The CMMC PMO received over 2,000 
comments from individuals and industry associations. These comments 
informed changes included in CMMC Model 1.0 released in January 2020. 
In addition, DFARS Case 2019-D041 generated over 750 additional public 
comments that informed changes to the rule text and influenced the 
transition to CMMC 2.0. The Office of the Under Secretary of Defense 
for Acquisition and Sustainment (OUSD(A&S)) held over 100 industry 
listening sessions in 2020 and 2021, engaged with the DIB through 
briefings and discussions with defense industry trade associations, 
academia, and government-based organizations with industry members 
(e.g., National Industrial Security Program Policy Advisory Committee). 
Many sessions were recorded and shared with the public on the internet 
in social media, news releases, and the CMMC PMO website (https://DoDcio.defense.gov/CMMC/), which was completely updated in 2021 and 
contains new information, FAQs, and allows the public direct contact 
with the CMMC PMO. As always, FAQs are to clarify content only, and do 
not interpret, define, or otherwise change the meaning of the 
regulatory text. The CMMC PMO continues to communicate with defense 
contractors and subcontractors, to include small businesses, and other 
members of the public.
    The official website of the DoD CMMC Program is https://DoDcio.defense.gov/CMMC/. This website contains links to CMMC documents 
including, but not limited to, the CMMC Model Overview, CMMC Scoping 
Guidance (by level), CMMC Level 1 Self-Assessment Guide, CMMC Level 2 
Assessment Guide, and the CMMC Glossary.

17. C3PAO Consistency

    Comment: One commenter expressed concerns that C3PAOs would not 
conduct CMMC assessments in a uniform manner, leading to inconsistent 
results.
    Response: C3PAOs use only certified CMMC assessors to perform CMMC 
assessments. To ensure assessments are conducted in a uniform manner, 
assessors are trained by certified instructors and required to pass 
CMMC assessor tests before becoming certified. The accredited CAICO 
manage and oversee the training, testing, authorizing, and certifying 
of candidate assessors and instructors. A CAICO must meet the DoD 
requirements set forth in Sec.  170.10 and achieve compliance with ISO/
IEC 17024:2012, Conformity Assessment--General Requirements for Bodies 
Operating Certification of Persons Conformity Assessment.

18. CMMC Cost Impacts

a. CMMC Cost Assumptions and Estimates
    Comment: Several commenters questioned or refuted the cost 
estimates and/or the assumptions and mathematical approach upon which 
the cost estimates were based. Several commenters requested 
clarification around the cited difference in both cost and hours 
between the CMMC certification process and the DoD Assessment process, 
the accounting for completion of NIST SP 800-171 Rev 2 requirements, 
and cost distinction between enterprise and enclave assessments. Two 
commenters stated that the estimated number of subcontractors was low, 
and one commenter suggested that the $5 million threshold for small 
businesses excluded a large number of small businesses from the 
calculations. One commenter asked whether duplication of assessments 
was considered for small businesses who support many prime contractors. 
Additional commenters believed costs were absent from the calculations, 
to include the cost of completing POA&M, management costs for small 
companies to achieve maturity, and costs for international suppliers. A 
number of comments requested additional estimates based on adjustments 
to labor rates for benefits and taxes, each of the assessment levels, 
and small, medium, and large companies. One commenter asked for 
clarification on the calculations used to estimate public savings. One 
commenter questioned why North American Industry Classification System 
(NAICS) code 54715 pertaining to sensitive CUI was not included in the 
calculations.
    Response: The cost estimates and assumptions referenced by the 
commenters pertain to CMMC 1.0 and are not reflective of the changes in 
CMMC, though public comment feedback has been incorporated into the 
cost estimation process for the CMMC Program where appropriate. The 
Department limited estimates for CMMC to those costs associated with 
preparing for, attaining, and publishing results of: (a) CMMC 
compliance via self-assessment for CMMC Levels 1 and 2, and (b) 
certification at CMMC Level 2 through a C3PAO and Level 3 through the 
DoD. Costs for companies to implement information security protections 
to comply with the existing FAR subpart 4.19 to achieve CMMC Level 1, 
and DFARS subpart 204.73 to achieve CMMC Level 2, are distinct from 
costs associated with CMMC assessment processes to verify and attest to 
the corresponding implementation of existing rules. Cost estimates were 
developed for companies to implement security requirements for CMMC 
Level 3. CMMC Level 3 security requirements are defined in table 1 to 
Sec.  170.14(c)(4) CMMC Level 3 Requirements. For the vast majority of 
the DIB, CMMC does not levy additional information security protection 
requirements but is designed to provide increased assurance that 
defense contractors are contract compliant and can adequately protect 
FCI and CUI at a level commensurate with risk, accounting for 
information flow down to its subcontractors in a multi-tier supply 
chain. There is no recognized duplication of assessments for small 
companies that support many primes, because once assessed, an 
organization need only provide evidence of compliance or certification 
to prospective primes in order to satisfy the CMMC requirement in a 
solicitation. When information system or network boundaries differ, an 
additional assessment may apply.
b. CMMC Cost Burden
    Comment: Several commenters suggested that costs were 
underestimated, particularly for small businesses who were perceived to 
be at risk of decreased participation in the

[[Page 89074]]

marketplace due to the cost prohibitive nature of the CMMC requirement. 
Multiple commenters requested additional strategies to mitigate costs, 
including the promotion of new technologies.
    Response: CMMC Levels 1 and 2, which represent the majority of the 
anticipated requirements, does not levy any additional information 
security protection requirements. To address assessment cost concerns, 
CMMC eliminates the third-party assessment requirement at CMMC Level 1 
and permits self-assessment for certain contracts containing a CMMC 
Level 2 requirement. The DoD Office of Small Business Programs, 
available at https://business.defense.gov/, has informational resources 
that may help defray cybersecurity implementation costs by helping 
organizations stay up-to-date with the latest cybersecurity compliance 
and policy best practices.
c. CMMC Cost Effectiveness and Alternatives
    Comment: Two commenters requested that the DoD measure the impact 
of implementing the additional security requirements. One commenter 
suggested an alternative strategy to protect CUI when generated.
    Response: CMMC does not require implementation of any additional 
security protection requirements beyond those identified in current FAR 
clause 52.204-21 and in NIST SP 800-171 Rev 2 for CMMC Levels 1 and 
Level 2, respectively. CMMC Level 3 requirements are new and based upon 
NIST SP 800-172.

19. CMMC Model

a. CMMC Level Requirement Selection
    Comment: Multiple commenters requested clarification about who 
selects the CMMC Level that is specified in a solicitation and the 
criteria used. Commenters also wanted to know if the contractor's CMMC 
Level flows-down directly to subcontracts and if so, whether that level 
carries down to lower tier subcontracts. Numerous questions asked if 
the government or a contractor is responsible for determining the 
appropriate CMMC Level to include in a subcontract and, if it is the 
contractor's responsibility, what criteria is used to identify the 
appropriate level to flow-down. To that end, commenters requested 
guidance for identifying CUI and information sensitivity. One commenter 
asked for clarification on whether different CMMC Level requirements 
could be identified within a single Statement of Work (SOW).
    Response: The solicitation will specify the required CMMC Level, 
and the level itself will be identified by the requiring activity. The 
requiring activity knows the type and sensitivity of information that 
will be shared with or developed by the awarded contractor and selects 
the CMMC Level required to protect the information according to DoD 
guidance. Contractors must have achieved this level, or higher, to be 
awarded the resultant contract. For subcontracts, the prime contractor 
will identify for its subcontractor the required CMMC Level in 
accordance with Sec.  170.23 if it is not already defined in the 
solicitation. If a prime contractor is uncertain about the appropriate 
CMMC Level to assign when creating a subcontract solicitation, it 
should consult with the government program office to determine what 
type of certification or assessment will be required given the 
information that will flow down. Policies for identification and clear 
marking of CUI materials are provided in CUI program materials and 32 
CFR part 2002, when applicable. A solicitation may contain requirements 
for multiple CMMC Levels if, in support of the contract, different 
enclaves are expected to process, store, or transmit information that 
needs different levels of security.
b. Model Standard, CMMC Levels, and Model Updates
    Comment: One commenter stated that the CMMC Model is not a 
configuration-controlled standard managed by a recognized standards 
body.
    Response: This rule codifies the CMMC Program, elements of which 
are reflected in the CMMC Model. All CMMC Model requirements are 
derived from FAR 52.204-21, NIST SP 800-171 Rev 2, and NIST SP 800-172, 
which are configuration-controlled guidelines managed by NIST. As a 
result of the alignment of CMMC to NIST guidelines, the Department's 
requirements will continue to evolve as changes are made to the 
underlying NIST SP 800-171 Rev 2 and NIST SP 800-172 security 
requirements. Additional rulemaking may be necessary in the future to 
conform CMMC requirements described in this rule to any changes to the 
underlying information protection requirements defined in the 
foundational NIST guidelines.
    Comment: Many comments were received requesting changes to CMMC 
Model 1.0. Several commenters requested changes to CMMC Level 
requirements and others had questions about the content and handling of 
CMMC Model updates. A few commenters made suggestions for restricting 
the current implementation, such as using only NIST SP 800-171 Rev 2 
for the CMMC 1.0 implementation of Level 1-3 requirements and 
supplementing with additional requirements only in Levels 4 and 5. 
Similar comments recommended using NIST SP 800-171 Rev 2 for the 
initial CMMC rollout and later expanding to include additional CMMC 
requirements. A number of comments questioned the purpose and use of 
the CMMC 1.0 implementation of CMMC Level 2. Other comments requested 
information on updating CMMC requirements as new technology and threats 
emerge and new versions of NIST SP 800-171 Rev 2 and NIST SP 800-53 are 
released. Multiple comments were received on CMMC 1.0 Levels 4 and 5. 
Several commenters believed there to be a significant disconnect 
between NIST SP 800-171B/172 and CMMC 1.0 Levels 4 and 5, and issues 
with implementation of these levels. Many comments requested that 
Levels 4 and 5 be updated to allow for flexibility in implementation 
rather than require all the requirements as written. Reasons cited for 
allowing flexibility include reducing cost and assessment complexity as 
well as allowing for the ability to adapt based on architectural 
environments and dynamic threat models.
    Response: Changes were made in this rule to requirements in the 
former CMMC model based in part upon receipt of informal public 
comment. The CMMC Model was streamlined to three-tiers, which align to 
the protection requirements set forth in FAR 52.204-21, NIST SP 800-171 
Rev 2, and NIST SP 800-172, and all CMMC-unique requirements and 
process maturity elements have been removed.
    The CMMC Model and program requirements will be evaluated as new 
technology and threats emerge and revised as appropriate.
    Comment: One comment included a request to identify instances where 
contractors would be better off using a classified environment, rather 
than CMMC version 1.0 Level 4 or 5, to protect the information.
    Response: The CMMC Program is designed to enforce protection of 
unclassified information, to include FCI and CUI, not intended for 
public release that is shared by the Department with its contractors 
and subcontractors. The program provides the Department increased 
assurance that contractors and subcontractors are meeting the 
cybersecurity requirements that apply to acquisition programs and 
systems that process federal contract information and controlled 
unclassified information.

[[Page 89075]]

Any discussion regarding the use of classified networks is outside of 
the scope of the CMMC Program.

20. CMMC Requirements

    Comment: There were multiple comments suggesting additions, 
deletions, or changes to model requirements. One commenter noted 
multiple instances of CMMC requirements with the term `information 
system' rather than `system' used in NIST SP 800-171 Rev 2, asking if 
CMMC meant to change the intent by inserting `information' in these 
requirements. Multiple commenters questioned the intent, clarity, or 
interpretation of several CMMC requirements/NIST SP 800-171 Rev 2 
requirements, recommending clarification regarding vulnerability 
management, protection of mobile devices, review of audit logs, 
disabling of identifiers, FIPS validated encryption, and malicious code 
scans. One comment suggested that CMMC 1.0 requirements RM.2.141 and 
RM.3.144 are redundant and recommended incorporating RM 3.146 into 
CA.2.159, justifying that a plan of action is essentially a risk 
management plan. Two commenters noted that two CMMC 1.0 requirements 
(RE.2.137 and RE.3.139) are unclear as they do not specify what data 
requires backup, or the meaning of resilient backup. One commenter said 
that CMMC 1.0 requirement MA.2.114 removed the qualifier of 
``maintenance'' when describing personnel requiring supervision of 
maintenance activities, asking if this is an insignificant change to 
the NIST SP 800-171 Rev 2 security requirement, or whether there is 
some rationale or message that the CMMC specification is trying to 
adjust by deviating from the NIST SP 800-171 Rev 2. Two commenters 
stated that CMMC 1.0 requirement MP.1.1.18 requires only FCI be 
sanitized, but, for CMMC 1.0 Level 3 (CMMC Level 2 under CMMC 2.0) 
assessments, there is no requirement to sanitize CUI. One commenter 
wanted to know which CMMC requirement requires a medium assurance 
certificate for reporting cyber incidents.
    Response: In CMMC 1.0, there was no intent to change the meaning of 
NIST requirements except those referenced as ``modified.'' These minor 
discrepancies are now resolved as all FCI requirements use the exact 
FAR language and all CUI requirements use the exact language from the 
relevant NIST guidelines. The requirements in CMMC Level 3 are derived 
from NIST SP 800-172 with DoD-approved parameters. Commenters 
requesting revisions to NIST guidelines should respond to the NIST 
public comment periods. There is no CMMC-specific cyber incident 
reporting requirement or need for associated medium assurance 
certificate.
    Comment: Several comments sought clarification on the alignment and 
relative authority or precedence of the CMMC requirements to Federal, 
Legislative, Statutory, Regulatory, or DoD Organizational policy, DoD 
instructions, and FAQs.
    Response: The CMMC Program requirements will be required once 
implemented in the DFARS and will have the same relative authority of 
any other DoD contract requirement. The CMMC Program relates to and 
incorporates elements of the following authorities: Executive Order No. 
13556, Controlled Unclassified Information, 75 FR 68675 (November 4, 
2010), which establishes ``an open and uniform program for managing 
[unclassified] information that requires safeguarding or dissemination 
controls;'' 32 CFR part 2002, which describes the executive branch's 
Controlled Unclassified Information Program and establishes policy for 
designating, handling, safeguarding, and decontrolling information that 
qualifies as CUI when processed, stored, or transmitted on a federal or 
non-federal information system; FAR clause 52.204-21, Basic 
Safeguarding of Covered Contractor Information Systems, which, as 
applicable, requires contractors to apply certain basic safeguarding 
procedures on covered contractor information systems that process, 
store, or transmit FCI; and DFARS clause 252.204-7012, Safeguarding 
Covered Defense Information and Cyber Incident Reporting, which, as 
applicable, requires defense contractors to implement NIST SP 800-171 
Rev 2 requirements on unclassified covered contractor information 
systems that process, store, or transmit covered defense information. 
Additional DoD instructions and manuals address DoD information 
security policy, including DoDI 5200.48 CUI which establishes policy, 
assigns responsibilities, and prescribes procedures for CUI throughout 
the DoD for federal and on non-federal information systems to include 
the implementation of NIST SP 800-171 Rev 2. A requirement for CMMC 
assessments provides DoD assurance that contractors have implemented 
required cybersecurity protections. The requirements of this rule will 
be implemented in an associated 48 CFR acquisition rule regarding CMMC.

21. CMMC Assessment

    Comment: Multiple commenters pointed out that the rule does not 
specify an authoritative source for obtaining a CMMC certificate, 
leaving the pedigree of certificates in question. Two comments inquired 
about the security of record [data] collection and retention and 
whether the assessors' platforms would need to be CMMC Level 3 
compliant to protect sensitive data used for the assessment/
certification process.
    Response: The processes for achieving compliance with a CMMC level 
are described in Sec.  170.15 through Sec.  170.18. CMMC Level 2 
Certification Assessments are conducted by C3PAOs authorized by the 
CMMC Accreditation Body. C3PAOs grant CMMC Level 2 certificates of 
assessment. The DoD conducts CMMC Level 3 Certification Assessments and 
grants Level 3 certificates of assessment. A C3PAO's IT infrastructure 
must achieve at least a CMMC Level 2 Certification Assessment. 
Certified CMMC Assessors working at their place of business or from 
home must use their C3PAO's IT infrastructure. Assessment data and 
results are securely uploaded by the C3PAO into the CMMC instantiation 
of eMASS. The CMMC instantiation of eMASS automatically feeds 
compliance data into SPRS. Both eMASS and SPRS are Department owned and 
operated systems.
    Comment: A few commenters requested resources for understanding 
CMMC requirements. There were also many comments related to the 
purpose, status, schedule, or content of the CMMC Assessment Guides. 
Additional comments requested clarification on the evaluation criteria 
and evidence described in the current Assessment Guides.
    Response: CMMC Assessment Guides are optional resources to aid in 
understanding CMMC requirements and are largely derived from NIST 
documentation, to include NIST SP 800-171 Rev 2 and NIST SP 800-172. 
The CMMC assessment process is defined in Sec.  170.15 through Sec.  
170.18, and the CMMC Scoring Methodology is defined in Sec.  170.24. 
The evaluation criteria (i.e., assessment procedures) and evidence 
(i.e., potential assessment methods and objects) required are taken 
directly from the NIST documentation, and revisions to NIST 
documentation are outside the scope of this rule. The CMMC Assessment 
Guides provide supplementary information, further discussion, examples, 
and references for assessors and contractors preparing for assessments. 
The guides do not identify

[[Page 89076]]

specific solutions or baselines. These documents are available at: 
https://DoDcio.defense.gov/CMMC/. Updated CMMC Assessment Guides and 
associated CMMC documents were posted on the OUSD(A&S) CMMC website 
after the public comment period for DFARS Case 2019-D041 closed on 
November 30, 2020. These documents reflected changes based on review of 
public comments. Future updates to CMMC guidance documentation will be 
made as needed.
    Comment: One comment suggested that audit standards be determined 
for CMMC assessments. Two comments asked for clarification regarding 
references provided in the model, whether all references must be 
reviewed, and if the requirements within the references must also be 
achieved.
    Response: The Department has reviewed definitions of audit and 
assessments and determined ``assessment'' best meets the goals of the 
CMMC Program. The cybersecurity standard requirements for the different 
CMMC Levels are set forth in Sec.  170.14 and clarify references for 
the security requirements.
    Comment: Many commenters were concerned about the lack of waivers 
or POA&Ms. Several commenters commented that not allowing waivers is 
impractical and will impact the ability of businesses to qualify for 
contract award. Commenters asked for clarification on the differences 
between POA&M that are not allowed by CMMC and the plans of action as 
required in the CMMC Level 3 control (now CMMC Level 2 under CMMC 2.0), 
CA.2.159 (now CA.L2-3.12.2 under CMMC 2.0). Many noted that POA&Ms are 
necessary when managing activities like system upgrades, vendor 
changes, and company acquisitions to avoid temporarily falling out of 
compliance.
    Response: Under certain circumstances, the CMMC Program does permit 
contract award to organizations that have an approved and time limited 
POA&M. See Sec.  170.21 for additional information on POA&Ms. There is 
no process for organizations to request waiver of CMMC solicitation 
requirements. DoD internal policies, procedures, and approval 
requirements will govern the process for DoD to waive inclusion of the 
CMMC requirement in the solicitation.

22. The Accreditation Body and C3PAOs

    Comment: Many commenters had questions and concerns about the 
management of the Accreditation Body and C3PAOs. A few commenters 
suggested using a government entity instead of the Accreditation Body 
construct to manage assessments. Commenters asked about the governance, 
resourcing, and oversight of the Accreditation Body with respect to 
CMMC training and assessments. Commenters expressed concerns such as 
who would make final decisions about CMMC issues, the lack of clearly 
defined roles and responsibilities for CMMC governance, and the long-
term effectiveness of the Accreditation Body staffed by an all-
volunteer workforce. One comment asked how the Accreditation Body can 
legally license training when CMMC Program information is available for 
free.
    Response: The decision to use a non-governmental Accreditation Body 
was made because the DoD determined that there was insufficient 
capacity within the DoD to manage assessor training and assessments for 
all defense contractors who need to comply with CUI protection 
policies. The DoD CMMC PMO provides oversight of the Accreditation Body 
and is also responsible for developing, updating, maintaining, and 
publishing the CMMC Model, CMMC Assessment Guides, and policies for 
implementation of the CMMC Program.
    Roles and responsibilities of the CMMC PMO, the Accreditation Body, 
and its organizations are described in SUBPART C of this rule. The 
Accreditation Body accredits C3PAOs and the CAICO. The Accreditation 
Body authorizes the CAICO to certify CMMC assessors and instructors and 
the C3PAOs to conduct assessments using CAICO-certified assessors.
    Comment: Many commenters expressed concerns about how to ensure the 
necessary independence, quality assurance, integrity, and rigor of, and 
protection against potential conflicts of interest within the 
Accreditation Body and C3PAOs. Numerous commenters recommended the use 
of ISO/IEC standards to address these issues. Additionally, one 
commenter was concerned about high costs for assessments that could 
result if there is a lack of oversight for charging fees.
    Response: The Accreditation Body is required to become compliant 
with the ISO/IEC 17011:2017 standard (the international benchmark used 
in demonstrating an accreditation body's impartiality, technical 
competency, and resources) and the requirements set forth in Sec.  
170.8. Additionally, the C3PAOs and CAICO must comply with requirements 
as specified in Sec.  170.9 and Sec.  170.10, respectively, including 
the specified ISO/IEC standards.
    Comment: To address a perceived shortage of CMMC C3PAO assessors, 
two commenters suggested authorizing the use of other ISO/IEC-compliant 
accreditation bodies to increase the numbers of assessors. Another 
commenter wanted to know how a company could become an accreditation 
body.
    Response: Consistency in training is imperative due to the unique 
qualifications needed to understand requirements. Additionally, ISO/IEC 
17024:2012 Conformity Assessment requirements are levied against the 
CAICO and may not be required by other entities. The number and level 
of assessors needed is relative to the number of companies seeking CMMC 
assessment. The demand level is influenced, but not solely determined 
by, the number of solicitations that include CMMC requirements, the 
CMMC Levels specified, and the estimated number of subcontractors that 
will also need to meet CMMC requirements, when flowed down by the prime 
contractor. To facilitate a smooth and orderly transition to CMMC, the 
Department will issue policy guidance to government Program Managers to 
govern the rate at which CMMC requirements are levied in new 
solicitations. The implementation phases are described in Sec.  
170.3(e). The CMMC PMO has visibility into the Accreditation Body's 
assessor training activities, tracks the anticipated number of trained 
assessors, and will use this information to inform policies that guide 
government Program Managers in identifying CMMC requirements in new 
solicitations.

23. Relationship to Existing Regulations

    Comment: Several commenters asked about the implications of having 
DFARS clauses 252.204-7012 and 252.204-7021 coexist in contracts and 
wanted to know if all the 252.204-7012 requirements, including the 
requirements for ``adequate security,'' incident reporting, and flow-
down, apply in the presence of 252.204-7021. Others were concerned 
about a perceived conflict on the protection of CUI between NIST SP 
800-171 Rev 2, which specifies the minimum requirements to provide 
``adequate security'' for CUI on nonfederal systems and DFARS clause 
252.204-7021 based on the CMMC Program. Multiple commenters wanted to 
know if the 252.204-7021 clause and the CMMC requirements override 
contractor responsibility to comply with other applicable clauses of 
the contract, or other applicable U.S. Government statutory or 
regulatory requirements. Others were concerned about a

[[Page 89077]]

continued proliferation of security requirements.
    Response: CMMC Program requirements proposed in this rule will be 
implemented in the DFARS, as needed, which may result in changes to 
current DoD solicitation provisions and contract, including DFARS 
clause 252.204-7021. As such, DoD cannot address applicability of or 
changes to current DFARS clause 252.204-7021 or other current DFARS 
cybersecurity provisions or clauses at this time.
    DoD does not intend to impose duplicative cybersecurity protection 
or assessment requirements. There is no conflict between the CMMC 
cybersecurity protection requirements described in this rule and DoD's 
current information safeguarding requirements, including those set 
forth in DFARS clause 252.204-7012. This CMMC rule adds new 
requirements for the assessment of contractor implementation of 
underlying information security standards and guidelines, as 
applicable, such as those set forth in FAR clause 52.204-21 and in the 
NIST SP 800-171 Rev 2. This rule also prescribes additional information 
security protection and assessment requirements for CMMC Level 3, 
derived from NIST SP 800-172, for certain limited scenarios.
    As new cyber threats emerge, security requirements will continue to 
evolve to support efforts to protect information important to U.S. 
national security. However, alternate standards will continue to be 
reviewed, as described in Sec.  170.20, to minimize the burden of new 
requirements.

24. Phase-Out of Existing Cybersecurity Requirements

    Comment: Several commenters asked whether DFARS clause 252.204-
7012, DFARS provision 252.204-7019 and 252.204-7020 will be phased out 
since DFARS clause 252.204-7021 is now a requirement.
    Response: The CMMC Program requirements proposed in this rule will 
be implemented in the DFARS, as needed, which may result in changes to 
current DoD solicitation provisions and contract clauses, including 
DFARS clause 252.204-7021. As such, DoD cannot address applicability of 
or changes to current DFARS clause 252.204-7021 or other current DFARS 
cybersecurity provisions or clauses at this time.
    The information safeguarding requirements and cyber incident 
reporting requirements set forth in DFARS clause 252.204-7012 will not 
be phased out as a result of this rule. CMMC Program requirements 
provide DoD with verification, through self or third-party assessment, 
that defense contractors have, in fact, implemented DoD's cybersecurity 
protection requirements.
    In addition, the requirements of this rule will not be fully 
implemented (and will not appear in all DoD contracts) until 2026 or 
later. As such, DoD will continue to require the current cybersecurity 
protections as reflected in the identified DFARS provisions and clauses 
for contracts that do not include a CMMC requirements.

Applicability

    The CMMC Program will require DoD to identify CMMC Level 1, 2, or 3 
as a solicitation requirement for any effort that will cause a 
contractor or subcontractor to process, store, or transmit FCI or CUI 
on its unclassified information system(s). Once CMMC is implemented in 
48 CFR, DoD will specify the required CMMC Level in the solicitation 
and the resulting contract.
    Summary of Program Changes: DFARS Case 2019-D041 implemented DoD's 
original model for assessing contractor information security 
protections, which is referred to as ``CMMC 1.0.'' CMMC 1.0 was 
comprised of five progressively advanced levels of cybersecurity 
standards and required defense contractors and subcontractors to 
undergo a certification process to demonstrate compliance with the 
cybersecurity standards associated with a given CMMC Level.
    In March 2021, the Department initiated an internal review of 
CMMC's implementation that engaged DoD's cybersecurity and acquisition 
leaders to refine policy and program implementation, focusing on the 
need to reduce costs for small businesses and align cybersecurity 
requirements to other federal standards and guidelines. This review 
resulted in CMMC 2.0, which streamlines assessment and certification 
requirements and improves implementation of the CMMC Program. These 
changes include:
     Eliminating Levels 2 and 4, and renaming the remaining 
three CMMC Levels as follows:
     Level 1 will remain the same as CMMC 1.0 Level 1;
     Level 2 will be similar to CMMC 1.0 Level 3;
     Level 3 will be similar to CMMC 1.0 Level 5.
     Removing CMMC-unique requirements and maturity processes 
from all levels;
     For CMMC Level 1, allowing annual self-assessments with an 
annual affirmation by company leadership;
     Allowing a subset of companies at Level 2 to demonstrate 
compliance through self-assessment rather than C3PAO assessment.
     For CMMC Level 3, requiring Department-conducted 
assessments; and
     Developing a time-bound and enforceable POA&M process.
    The CMMC Program will be implemented through publication of rules 
for both title 32 CFR and title 48 CFR. Both rules will have public 
comment periods.

Background

A. Statement of Need for This Rule

    The Department of Defense (DoD) requires defense contractors to 
protect sensitive unclassified information in accordance with 
requirements for FCI and CUI. To verify contractor and subcontractor 
implementation of DoD's cybersecurity information protection 
requirements, the Department developed the Cybersecurity Maturity Model 
Certification (CMMC) Program as a means of assessing and verifying 
adequate protection of contractor information systems that process, 
store, or transmit either FCI or CUI.
    The CMMC Program is intended to: (1) align cybersecurity 
requirements to the sensitivity of unclassified information to be 
protected, (2) add a self-assessment element to affirm implementation 
of applicable cybersecurity requirements, (3) add a certification 
element to verify implementation of cybersecurity requirements, and (4) 
add an affirmation to attest to continued compliance with assessed 
requirements. As part of the program, DoD also intends to provide 
supporting resources and training to the DIB, to help support companies 
who are working to achieve the required CMMC level. The CMMC Program 
provides for assessment at three levels, starting with basic 
safeguarding of FCI at CMMC Level 1, moving to the broad protection of 
CUI at CMMC Level 2, and culminating with higher-level protection of 
CUI against risk from Advanced Persistent Threats (APTs) at CMMC Level 
3.
    The CMMC Program addresses DoD's need to protect its sensitive 
unclassified information during the acquisition and sustainment of 
products and services from the DIB. This effort is instrumental in 
establishing cybersecurity as a foundation for DoD acquisitions.
    Although DoD contract requirements to provide adequate security for 
covered defense information (reflected in DFARS clause 252.204-7012) 
predate CMMC by many years, a certification requirement for the 
handling of CUI to

[[Page 89078]]

assess a contractor or subcontractor's implementation of those required 
information security controls is new with the CMMC Program.
    The theft of intellectual property and sensitive information from 
all U.S. industrial sectors from malicious cyber activity threatens 
economic security and national security. The Council of Economic 
Advisers estimates that malicious cyber activity cost the U.S. economy 
between $57 billion and $109 billion in 2016.\19\ The Center for 
Strategic and International Studies estimates that the total global 
cost of cybercrime was as high as $600 billion in 2017.\20\
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    \19\ Based on information from the Council of Economic Advisors 
report: The Cost of Malicious Cyber Activity to the U.S. Economy, 
2018.
    \20\ Based on information from the Center for Strategic and 
International Studies report on the Economic Impact of Cybercrime; 
https://www.csis.org/analysis/economic-impact-cybercrime.
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    Malicious cyber actors have targeted and continue to target defense 
contractors and the DoD supply chain. These attacks not only focus on 
the large prime contractors, but also target subcontractors that make 
up the lower tiers of the DoD supply chain. Many of these 
subcontractors are small entities that provide critical support and 
innovation. Overall, the DIB sector consists of over 220,000 companies 
\21\ that process, store, or transmit CUI or FCI in support the 
warfighter and contribute towards the research, engineering, 
development, acquisition, production, delivery, sustainment, and 
operations of DoD systems, networks, installations, capabilities, and 
services. The aggregate loss of intellectual property and controlled 
unclassified information from the DoD supply chain can undercut U.S. 
technical advantages and innovation, as well as significantly increase 
the risk to national security. As part of multiple lines of effort 
focused on the security and resiliency of the DIB, the Department is 
working with industry to enhance the protection of FCI and CUI within 
the DoD supply chain. Toward this end, DoD has developed the CMMC 
Program.
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    \21\ Based on information from the Federal Procurement Data 
System, the average number of unique prime contractors is 
approximately 212,650 and the number of known unique subcontractors 
is approximately 8,300. (FPDS from FY18-FY21).
---------------------------------------------------------------------------

Cybersecurity Maturity Model Certification Program
    The CMMC Program provides a comprehensive and scalable 
certification approach to verify the implementation of requirements 
associated with the achievement of a cybersecurity level. CMMC is 
designed to provide increased assurance to the Department that defense 
contractors can adequately protect FCI and CUI at a level commensurate 
with the risk, accounting for information flow down to its 
subcontractors in a multi-tier supply chain. Defense contractors can 
achieve a specific CMMC Level for its entire enterprise network or an 
enclave(s), depending upon where the information to be protected is 
processed, stored, or transmitted.
    The CMMC Program assesses implementation of cybersecurity 
requirements. The CMMC requirements for safeguarding and security are 
the same as those required by FAR Subpart 4.19 and DFARS Subpart 
204.73, as well as selected NIST SP 800-172 requirements. CMMC Level 1 
requires implementation of the safeguarding requirements set forth in 
FAR clause 52.204-21. CMMC Level 2 requires implementation of the 
security requirements in NIST SP 800-171 Rev 2. CMMC Level 3 requires 
implementation of the security requirements in NIST SP 800-171 Rev 2 as 
well as selected NIST SP 800-172 requirements, with DoD specified 
parameters. The CMMC requirements for all three Levels are provided in 
Sec.  170.14. In general, CMMC assessments do not duplicate efforts 
from existing DoD assessments. In rare circumstances a re-assessment 
may be necessary when cybersecurity risks, threats, or awareness have 
changed.
    Under the CMMC Program, CMMC contract requirements include self-
assessments and third-party assessments for CMMC Level 2, predicated on 
program criticality, information sensitivity, and the severity of cyber 
threat. Based on the type and sensitivity of the information to be 
protected, a defense contractor must achieve the appropriate CMMC Level 
and demonstrate implementation of the associated set of information 
protection requirements.
    If CMMC Level 1 or Level 2 Self-Assessment is a contract 
requirement, the defense contractor will be required to self-assess its 
compliance with the CMMC Level 1 or Level 2 requirements and submit the 
assessment results and an affirmation of conformance in SPRS. CMMC 
Level 1 self-assessment and associated affirmation is required 
annually. CMMC Level 2 Self-Assessment is required triennially with an 
affirmation following self-assessment and annually thereafter.
    If CMMC Level 2 Certification Assessment is a contract requirement, 
CMMC assessments must be performed by an authorized or accredited CMMC 
Third Party Assessment Organization (C3PAO). When CMMC Level 3 
Certification Assessment is a contract requirement, an assessment by 
DoD is required following a CMMC Level 2 Final Certification 
Assessment. Upon completion of a CMMC Level 2 or 3 Certification 
Assessment, the offeror may be granted a certification of assessment 
based on the results of the assessment at the appropriate CMMC Level 
(as described in the CMMC Model). The assessment results are documented 
in SPRS to enable contracting officers to verify the validity status of 
an offeror's certification level and currency (i.e., not more than 
three years old) prior to contract award. The offeror must also submit 
an affirmation of conformance in SPRS following the assessment and 
annually thereafter.
    CMMC allows the use of a Plan of Action and Milestones (POA&Ms) for 
specified CMMC Level 2 and 3 security requirements. Each POA&M must be 
closed, i.e., all requirements completed, within 180 days of the 
initial assessment.
    The details of the requirements for self-assessment, third-party 
assessment, and affirmation for each CMMC Level, are provided in Sec.  
170.15 through Sec.  170.18. POA&M requirements, including which 
requirements are allowed to be on a POA&M and POA&M closeout 
requirements, in addition to requirements for provision of an 
affirmation at closeout, contract eligibility, and continuation are 
provided in Sec.  170.21 and Sec.  170.22.
    DoD's phased implementation of CMMC requirements is described in 
Sec.  170.3(e). Once CMMC requirements have been implemented in the 
DFARS, the solicitation will identify the specific CMMC Level required 
for that procurement. To implement a phased transition, selection of a 
CMMC Level will be based upon careful consideration of market research 
and the likelihood of a robust competitive market of prospective 
offerors capable of meeting the requirement. In some scenarios, DoD may 
elect to waive application of CMMC third party assessment requirements 
to a particular procurement. In such cases, the solicitation will not 
include a CMMC assessment requirement. Such waivers may be requested 
and approved by the Department in accordance with DoD's internal 
policies and procedures. For a DoD solicitation or contract that does 
include CMMC requirements, including those for the acquisition of 
commercial items (except those exclusively COTS items) valued at 
greater than the micro-purchase threshold, contracting officers will 
not make award, or exercise an option on a contract, if the offeror or

[[Page 89079]]

contractor does not meet the requirements for the required CMMC Level. 
Furthermore, CMMC requirements are required to flow down to 
subcontractors as prescribed in the solicitation at all tiers, 
commensurate with the sensitivity of the unclassified information 
flowed down to each subcontractor.

B. Legal Authority

    5 U.S.C. 301 authorizes the head of an Executive department or 
military department to prescribe regulations for the government of his 
or her department, the conduct of its employees, the distribution and 
performance of its business, and the custody, use, and preservation of 
its records, papers, and property. (https://www.govinfo.gov/content/pkg/USCODE-2009-title5/pdf/USCODE-2009-title5-partI-chap3-sec301.pdf).
    Section 1648 of the National Defense Authorization Act for Fiscal 
Year 2020 (Pub. L. 116-92) \22\ directs the Secretary of Defense to 
develop a consistent, comprehensive framework to enhance cybersecurity 
for the U.S. Defense Industrial Base (DIB). The CMMC Program is an 
important part of this framework.
---------------------------------------------------------------------------

    \22\ https://www.govinfo.gov/content/pkg/PLAW-116publ92/pdf/PLAW-116publ92.pdf.
---------------------------------------------------------------------------

C. Community Impact

    This rule impacts all prospective and actual DoD contractors and 
subcontractors that are handling or will handle DoD information that 
meets the standards for FCI or CUI on a contractor information system 
during performance of the DoD contract or subcontract. This rule also 
impacts all companies who are performing or will perform accreditation, 
training, certification, or assessment functions in connection with 
implementation of the CMMC Program.

D. Regulatory History

    The CMMC Program verifies defense contractor compliance with DoD's 
cybersecurity information protection requirements. It is designed to 
protect sensitive unclassified information that is shared by the 
Department with or generated by its contractors and subcontractors. The 
cybersecurity standards required by the program are the same as those 
set forth in FAR clause 52.204-21 (CMMC Level 1), the NIST SP 800-171 
Rev 2 guidelines, which is presently required by DFARS clause 252.204-
7012 (CMMC Level 2), and additional selected requirements from the NIST 
SP 800-172 guidelines (CMMC Level 3). The program adds a robust 
assessment element and provides the Department increased assurance that 
contractors and subcontractors are meeting these requirements.
    In September 2020, the DoD published an interim rule to the DFARS 
in the Federal Register (DFARS Case 2019-D041), which implemented the 
DoD's initial vision for the CMMC Program (``CMMC 1.0'') and outlined 
the basic features of the program (tiered model, required assessments, 
and implementation through contracts). The interim rule became 
effective on November 30, 2020, establishing a five-year phase-in 
period.
    In March 2021, the Department initiated an internal review of 
CMMC's implementation, informed by more than 750 CMMC-related public 
comments in response to the interim DFARS rule. This comprehensive, 
programmatic assessment engaged cybersecurity and acquisition leaders 
within DoD to refine policy and program implementation.
    In November 2021, the Department announced CMMC 2.0, which 
incorporates an updated program structure and requirements designed to 
achieve the primary goals of an internal DoD review of the CMMC 
Program. With the implementation of the CMMC Program, the Department 
introduced several key changes that build on and refine the original 
program requirements. These include:
     Streamlining the model from five to three certification 
levels;
     Allowing all companies at Level 1 and a subset of 
companies at Level 2 to demonstrate compliance through self-
assessments;
     Increased oversight of professional and ethical standards 
of third-party assessors; and
     Allowing companies, under certain limited circumstances, 
to make POA&Ms to achieve certification.
    The CMMC requirements established pursuant to DFARS Case 2019-D041 
have not been revised as of the date of publication of this rule. 
However, the CMMC Program requirements proposed in this rule will be 
implemented in the DFARS, as needed, which may result in changes to the 
current DFARS text, solicitation provisions, and contract clauses 
relating to DoD's cybersecurity protection requirements, including 
DFARS subpart 204.75 and DFARS clause 252.204-7021, Cybersecurity 
Maturity Model Certification (CMMC) Requirements.

Regulatory Impact Analysis

    FAR Subpart 4.19 and DFARS Subpart 204.73 address safeguarding of 
FCI and CUI in contractor information systems and prescribe contract 
clauses requiring protection of FCI and CUI within the supply chain. 
The FAR and DFARS requirements for safeguarding FCI and CUI predate the 
CMMC Program by many years, and baseline costs for their implementation 
are assumed to vary widely based on factors including, but not limited 
to, company size and complexity of the information systems to be 
secured. FAR 52.204-21, Basic Safeguarding of Covered Contractor 
Information Systems, is prescribed at FAR section 4.1903 for use in 
solicitations and contracts when the contractor or subcontractor at any 
tier may have FCI residing in or transiting through its information 
system. This clause requires contractors and subcontractors to apply 
basic safeguarding requirements and procedures to protect applicable 
contractor information systems that process, store, or transmit FCI. In 
addition, DFARS clause 252.204-7012, Safeguarding Covered Defense 
Information and Cyber Incident Reporting, is prescribed at DFARS 
section 204.7304(c) for use in DoD in all solicitations and contracts, 
including solicitations and contracts using FAR part 12 procedures for 
the acquisition of commercial items, except for solicitations and 
contracts solely for the acquisition of commercially available off-the-
shelf items. This clause applies when a contractor information system 
processes, stores, or transmits covered defense information and 
requires contractors and subcontractors to provide ``adequate 
security'' to safeguard that information when it resides on or transits 
through a contractor information system, and to report cyber incidents 
that affect that system or network. The clause states that to provide 
adequate security, the contractor shall implement, at a minimum, the 
security requirements in National Institute of Standards and Technology 
(NIST) Special Publication (SP) 800-171 Rev 2, Protecting CUI in 
Nonfederal Systems and Organizations. Contractors are also required to 
flow down DFARS clause 252.204-7012 to all subcontracts for 
operationally critical support or for which subcontractor performance 
will involve covered defense information.
    However, neither FAR clause 52.204-21 nor DFARS clause 252.204-7012 
provide for DoD assessment of a contractor's implementation of the 
information protection requirements required by those clauses. The 
Department developed the CMMC Program to verify implementation of 
cybersecurity requirements in DoD contracts and subcontracts, by 
assessing

[[Page 89080]]

adequacy of contractor information system security compliance prior to 
award and during performance of the contract. With limited exceptions, 
the Department intends to require compliance with CMMC as a condition 
of contract award. Once CMMC is implemented, the required CMMC Level 
for contractors and subcontractors will be specified in the 
solicitation and Requests for Information (RFIs), if utilized.
    There are three different levels of CMMC assessment, starting with 
basic safeguarding of FCI at Level 1, moving to the broad protection of 
CUI at Level 2, and culminating with higher level protection of CUI 
against risk from Advanced Persistent Threats (APTs) at Level 3. The 
benefits and costs associated with implementing this rule, as well as 
alternative approaches considered, are as follows:

Costs

    A Regulatory Impact Analysis (RIA) that includes a detailed 
discussion and explanation about the assumptions and methodology used 
to estimate the cost of this regulatory action follows and is available 
at https://www.regulations.gov (search for ``DoD-2023-OS-0063'' click 
``Open Docket'' and view ``Supporting Documents'').

Background

    The Department of Defense (DoD or Department) requires a secure and 
resilient supply chain to ensure the development, production, and 
sustainment of capabilities critical to national security. The DoD 
supply chain is targeted by adversaries with increasing frequency and 
sophistication, and to devastating effect. Therefore, implementation of 
cybersecurity standards and enforcement mechanisms are critically 
important. Executive Order (E.O.) 14028, ``Improving the Nation's 
Cybersecurity,'' emphasizes the need to strengthen cybersecurity 
protections for both the Federal Government and the private sector.
    Nation-state adversaries attack the U.S. supply chain for a myriad 
of reasons, including exfiltration of valuable technical data (a form 
of industrial espionage); disruption to control systems used for 
critical infrastructure, manufacturing, and weapons systems; corruption 
of quality and assurance across a broad range of product types and 
categories; and manipulation of software to achieve unauthorized access 
to connected systems and to degrade the integrity of system operations. 
For example, since September 2020, major cyber-attacks such as the 
SolarWinds,\23\ Colonial Pipeline, Hafnium,\24\ and Kaseya \25\ 
attacks, have been spearheaded or influenced by nation-state actors 
\26\ and resulted in significant failures and disruption. In context of 
this threat, the size and complexity of defense procurement activities 
provide numerous pathways for adversaries to access DoD's sensitive 
systems and information. Moreover, adversaries continue to evolve their 
tactics, techniques, and procedures. For example, on April 28, 2022, 
CISA and the FBI issued an advisory on destructive ``wiperware,'' a 
form of malware which can destroy valuable information.\27\ Protection 
of DoD's sensitive unclassified information is critically important, 
and the DoD needs assurance that contactor information systems are 
adequately secured to protect such information when it resides on or 
transits those systems.
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    \23\ https://www.gao.gov/assets/gao-22-104746.pdf.
    \24\ https://www.ic3.gov/Media/News/2021/210310.pdf.
    \25\ https://www.cisa.gov/uscert/ncas/current-activity/2021/07/04/cisa-fbi-guidance-msps-and-their-customers-affected-kaseya-vsa.
    \26\ https://www.mitre.org/sites/default/files/publications/pr-18-2417-deliver-uncompromised-MITRE-study-26AUG2019.pdf.
    \27\ https://www.cisa.gov/uscert/ncas/alerts/aa22-057a.
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    The Department is committed to working with defense contractors to 
protect DoD and defense contractor sensitive unclassified information 
in accordance with requirements for FCI and CUI.
     Federal Contract Information (FCI): As defined in section 
4.1901 of the FAR, FCI means information, not intended for public 
release, that is provided by or generated for the Government under a 
contract to develop or deliver a product or service to the Government, 
but not including information provided by the Government to the public, 
such as that on public websites, or simple transactional information, 
such as that necessary to process payments.
     Controlled Unclassified Information (CUI): 32 CFR 
2002.4(h) defines CUI, in part, as information the Government creates 
or possesses, or that an entity creates or possesses for or on behalf 
of the Government, that a law, regulation, or Government-wide policy 
requires or permits an agency to handle using safeguarding or 
dissemination controls, including FCI.
    In September 2020, the DoD published DFARS interim rule (Case 2019-
D041), which implemented DoD's initial vision for the Cybersecurity 
Maturity Model Certification (CMMC) Program (``CMMC 1.0'') and outlined 
basic program features, to include: 5-level tiered model, CMMC 
Certified Third Party Assessment Organization (C3PAO) assessments in 
support of contractor and subcontractor certification, with no 
allowance for a Plan of Action and Milestones, and implementation of 
all security requirements by the time of a contract award. A total of 
750 comments were received on the CMMC Program during the public 
comment period that ended on November 30, 2020. These comments 
highlighted a variety of industry concerns including concerns relating 
to the costs for a C3PAO certification, and the costs and burden 
associated with implementing, prior to award, the required process 
maturity and 20 additional cybersecurity practices that were included 
in CMMC 1.0. The Small Business Administration Office of Advocacy also 
raised similar concerns on the impact the rule would have on small 
businesses in the DIB.
    Pursuant to DFARS clause 252.204-7012, DoD has required certain 
defense contractors and subcontractors to implement the security 
protections set forth in the National Institute of Standards and 
Technology (NIST) Special Publication (SP) 800-171 Rev 2 to provide 
adequate security for sensitive unclassified DoD information that is 
processed, stored, or transmitted on contractor information systems and 
to document their implementation status, including any plans of action 
for any NIST SP 800-171 Rev 2 requirement not yet implemented, in a 
System Security Plan. The CMMC Program provides the Department the 
mechanism needed to verify that a defense contractor or subcontractor 
has implemented the security requirements at each CMMC Level and is 
maintaining that status across the contract period of performance, as 
required.
    In calendar year (CY) 2021 DoD paused the planned CMMC rollout to 
conduct an internal review of the CMMC Program. The internal review 
resulted in a refined and streamlined set of requirements that 
addressed many of the concerns identified in the public comments 
received relating to CMMC 1.0. These changes have been incorporated 
into the CMMC Program structure and policies, now referred to as ``CMMC 
2.0.'' In July 2022, the CMMC PMO met with the Office of Advocacy for 
the United States Small Business Administration (SBA) to address the 
revisions planned in CMMC 2.0 that are responsive to prior SBA 
concerns.
    The CMMC Program will enhance the ability of the DoD to safely 
share sensitive unclassified information with

[[Page 89081]]

defense contractors and know the information will be suitably 
safeguarded. Once fully implemented, CMMC will incorporate a set of 
cybersecurity requirements into acquisition contracts to provide 
verification that applicable cyber protections have been implemented. 
Under the CMMC Program, defense contractors and subcontractors will be 
required to implement certain cybersecurity protection requirements 
tied to a designated CMMC level and either perform a self-assessment or 
obtain an independent assessment from either a third-party or DoD as a 
condition of a DoD contract award. CMMC is designed to validate the 
protection of sensitive unclassified information that is shared with 
and generated by the Department's contractors and subcontractors. 
Through protection of information by adherence to the requirements 
verified in CMMC 2.0, the Department and its contractors will prevent 
disruption in service and the loss of intellectual property and assets, 
and thwart access to sensitive unclassified information by the nation's 
adversaries.
    The CMMC Program is intended to: (1) align cybersecurity 
requirements to the sensitivity of unclassified information to be 
protected, and (2) add a certification element, where appropriate, to 
verify implementation of cybersecurity requirements. As part of the 
program, DoD also intends to provide supporting resources and training 
to defense contractors to help support companies who are working to 
achieve the required CMMC level. The CMMC Program provides for 
assessment at three levels: basic safeguarding of FCI at CMMC Level 1, 
broad protection of CUI at CMMC Level 2, and enhanced protection of CUI 
against risk from Advanced Persistent Threats (APTs) at CMMC Level 3. 
The CMMC Program is designed to provide increased assurance to the 
Department that a defense contractor can adequately protect sensitive 
unclassified information (i.e., FCI and CUI) in accordance with 
prescribed security requirements, accounting for information flow down 
to its subcontractors in a multi-tier supply chain.
    The CMMC Program addresses DoD's need to protect its sensitive 
unclassified information during the acquisition and sustainment of 
products and services from the DIB. This effort is instrumental in 
establishing cybersecurity as a foundation for future DoD acquisition.
    Although DoD contract requirements to provide adequate security for 
covered defense information (reflected in DFARS 252.204-7012) predate 
CMMC by many years, a certification requirement for the handling of CUI 
to assess a contractor or subcontractor's compliance of those required 
information security controls is new with the CMMC Program. Findings 
from DoD Inspector General report \28\ indicate that DoD contractors 
did not consistently implement mandated system security requirements 
for safeguarding CUI and recommended that DoD take steps to assess a 
contractor's ability to protect this information. The report emphasizes 
that malicious actors can exploit the vulnerabilities of contractors' 
networks and systems and exfiltrate information related to some of the 
Nation's most valuable advanced defense technologies.
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    \28\ DODIG-2019-105 ``Audit of Protection of DoD CUI on 
Contractor-Owned Networks and Systems''
---------------------------------------------------------------------------

    Currently, the FAR and DFARS prescribe contract clauses intended to 
protect FCI and CUI. Specifically, the clause at FAR 52.204-21, Basic 
Safeguarding of Covered Contractor Information Systems, is prescribed 
at FAR 4.1903 for use in Government solicitations and contracts when 
the contractor or a subcontractor at any tier may have FCI residing in 
or transiting through its information system(s). This clause requires 
contractors and subcontractors to implement basic safeguarding 
requirements and procedures to protect FCI being processed, stored, or 
transmitted on contractor information systems. In addition, DFARS 
clause 252.204-7012, Safeguarding Covered Defense Information and Cyber 
Incident Reporting, is prescribed at DFARS 204.7304(c) for use in all 
solicitations and contracts except for solicitations and contracts 
solely for the acquisition of commercially available off-the-shelf 
(COTS) items. This clause requires contractors and subcontractors to 
provide ``adequate security'' to process, store or transmit covered 
defense information when it resides on or transits a contractor 
information system, and to report cyber incidents that affect that 
system or network. The clause states that to provide adequate security, 
the contractor shall implement, at a minimum, the security requirements 
in NIST Special Publication (SP) 800-171 Rev 2, Protecting CUI in 
Nonfederal Systems and Organizations. Contractors are also required to 
flow down DFARS clause 252.204-7012 to all subcontracts that require 
processing, storing, or transmitting of covered defense information.
    However, neither FAR clause 52.204-21 nor DFARS clause 252.204-7012 
provide for DoD verification of a contractor's implementation of the 
basic safeguarding requirements specified in FAR 52.204-21 nor the 
security requirements specified in NIST SP 800-171 Rev 2, 
implementation of which is required by DFARS clause 252.204-7012, prior 
to contract award. As part of multiple lines of effort focused on the 
security and resilience of the DIB, the Department is working with 
industry to enhance the protection of FCI and CUI within the DoD supply 
chain. Toward this end, DoD has developed the CMMC Program.

CMMC 2.0 Requirements

    The CMMC Program requirements will be implemented through the DoD 
acquisition and contracting process. With limited exceptions, the 
Department intends to require compliance with CMMC as a condition of 
contract award. Once CMMC is implemented, the required CMMC level for 
contractors will be specified in the solicitation. In accordance with 
the implementation plan described in 32 CFR 170.3(e), CMMC compliance 
or certification requirements will apply to new DoD solicitations and 
contracts, and shall flow down to subcontractors, based on the 
sensitivity of the FCI and CUI to be processed, stored or transmitted 
to or by the subcontractor. Before contract award, the offeror must 
achieve the specified CMMC level for the contractor information system 
(e.g., enterprise network, network enclave) that will process, store, 
or transmit the information to be protected. The contractor or 
subcontractor will also submit affirmations in the Supplier Performance 
Risk System (SPRS). An overview of requirements at each level is shown:

CMMC Level 1 Self-Assessment

     CMMC Level 1 Self-Assessment requires compliance with 
basic safeguarding requirements to protect FCI are set forth in FAR 
clause 52.204-21. CMMC Level 1 does not add any additional security 
requirements to those identified in FAR 52.204-21.
     Organizations Seeking Assessment (OSAs) will submit the 
following information in SPRS prior to award of any prime contract or 
subcontract and annually thereafter:
    1. the results of a self-assessment of the OSA's implementation of 
the basic safeguarding requirements set forth in 32 CFR 170.15 
associated with the contractor information system(s) used in 
performance of the contract; and
    2. an initial affirmation of compliance, and then annually 
thereafter, an affirmation of continued

[[Page 89082]]

compliance as set forth in 32 CFR 170.22.
    3. the Level 1 Self-Assessment cost burden will be addressed as 
part of the 48 CFR acquisition rule.

CMMC Level 2 Self-Assessment

     CMMC Level 2 Self-Assessment requires compliance with the 
security requirements set forth in NIST SP 800-171 Rev 2 to protect 
CUI. CMMC Level 2 does not add any additional security requirements to 
those identified in NIST SP 800-171 Rev 2.
     OSAs will submit the following information in SPRS prior 
to award of any prime contract or subcontract:
    1. the results of a self-assessment of the OSA's implementation of 
the NIST SP 800-171 Rev 2 requirements set forth in 32 CFR 170.16 
associated with the covered contractor information system(s) used in 
performance of the applicable contract.
    2. an initial affirmation of compliance, and, if applicable, a 
POA&M closeout affirmation, and then annually thereafter, an 
affirmation of continued compliance set forth in 32 CFR 170.22.
    3. the Level 2 Self-Assessment cost burden will be addressed as 
part of the 48 CFR acquisition rule.

CMMC Level 2 Certification Assessment

     CMMC Level 2 Certification requires compliance with the 
security requirements set forth in in 32 CFR 170.17 to protect CUI. 
CMMC Level 2 does not add any additional security requirements to those 
identified in NIST SP 800-171 Rev 2.
     A CMMC Level 2 Certification Assessment of the applicable 
contractor information system(s) provided by an authorized or 
accredited C3PAO is required to validate implementation of the NIST SP 
800-171 Rev 2 security requirements prior to award of any prime 
contract or subcontract and exercise of option.
     The C3PAO will upload the CMMC Level 2 results in eMASS 
which will feed the information into SPRS.
     OSCs will submit in SPRS an initial affirmation of 
compliance, and, if necessary, a POA&M closeout affirmation, and then 
annually thereafter, an affirmation of continued compliance as set 
forth in 32 CFR 170.22.
    The Level 2 Certification Assessment cost burdens are included in 
this part with the exception of the requirement for the OSC to upload 
the affirmation in SPRS that is included in the Title 48 acquisition 
rule and an update to DFARS collection approved under OMB Control 
Number 0750-0004, Assessing Contractor Implementation of Cybersecurity 
Requirements. Additionally, the information collection reporting 
requirements for the CMMC instantiation of eMASS are included in a 
separate ICR for this part and cover only those requirements pertaining 
to the CMMC process.

CMMC Level 3 Certification Assessment

     CMMC Level 3 Certification Assessment requires a CMMC 
Level 2 Final Certification Assessment and compliance with the security 
requirements set forth in 32 CFR 170.18 to protect CUI. CMMC Level 3 
adds additional security requirements to those required by existing 
acquisition regulations as specified in this rule.
     A CMMC Level 3 Certification Assessment of the applicable 
contractor information system(s) provided by the DCMA Defense 
Industrial Base Cybersecurity Assessment Center (DIBCAC) is required to 
validate implementation of the DoD-defined selected security 
requirements set forth in NIST SP 800-172. A CMMC Level 2 Final 
Certification is a prerequisite to schedule a DIBCAC assessment for 
CMMC Level 3.
     DCMA DIBCAC will upload the CMMC Level 3 results into the 
CMMC instantiation of eMASS, which will feed the information into SPRS.
     OSCs will submit in SPRS an initial affirmation of 
compliance, and, if necessary, a POA&M closeout affirmation, and then 
annually thereafter, an affirmation of continued compliance as set 
forth in 32 CFR 170.22.
    The Level 3 Certification Assessment cost burdens are included in 
this part with the exception of the requirement for the OSC to upload 
the affirmation in SPRS that is included in the Title 48 acquisition 
rule and an update to DFARS collection approved under OMB Control 
Number 0750-0004, Assessing Contractor Implementation of Cybersecurity 
Requirements. Additionally, the information collection reporting 
requirements for the CMMC instantiation of eMASS are included in a 
separate ICR for this part and cover only those requirements pertaining 
to the CMMC process. As described, the CMMC Program couples an 
affirmation of compliance with certification assessment requirements to 
verify OSA implementation of cybersecurity requirements, as applicable.
    The CMMC Program addresses DoD's need to protect its sensitive 
unclassified information during the acquisition and sustainment of 
products and services from the DIB. This effort is instrumental in 
ensuring cybersecurity is the foundation of future DoD acquisitions.

Policy Problems Addressed by CMMC 2.0

    Implementation of the CMMC Program is intended to solve the 
following policy problems:

Verifies the Contractor Cybersecurity Requirements

    Neither FAR clause 52.204-21 nor DFARS clause 252.204-7012 provide 
for DoD assessment of a defense contractor or subcontractor's 
implementation of the information protection requirements within those 
clauses. Defense contractors represent that they will implement the 
requirements in NIST SP 800-171 Rev 2 upon submission of their offer. 
Findings from DoD Inspector General report (DODIG-2019-105 ``Audit of 
Protection of DoD Controlled Unclassified Information on Contractor-
Owned Networks and Systems'') indicate that DoD contractors did not 
consistently implement mandated system security requirements for 
safeguarding CUI and recommended that DoD take steps to assess a 
contractor's ability to protect this information. CMMC adds new 
assessment requirements for contractor implementation of underlying 
information security requirements, to allow DoD to assess a defense 
contractor's cybersecurity posture using authorized or accredited 
C3PAOs. The contractor and subcontractor must achieve the required CMMC 
Level as a condition of contract award.

Implementation of Cybersecurity Requirements

    Under DFARS clause 252.204-7012, defense contractors and 
subcontractors must document implementation of the security 
requirements in NIST SP 800-171 Rev 2 in a system security plan and may 
use a Plan of Action Milestones to describe how and when any 
unimplemented security requirements will be met. For the CMMC Program, 
the solicitation, will specify the required CMMC level, which will be 
determined considering program criticality, information sensitivity, 
and severity of cyber threat. Although the security requirements in 
NIST SP 800-171 Rev 2 address a range of threats, additional 
requirements are needed to significantly reduce the risk posed by APTs. 
An APT is an adversary that possesses sophisticated levels of expertise 
and significant resources that allow it to create opportunities to 
achieve its objectives by using multiple attack vectors (e.g., cyber, 
physical, and

[[Page 89083]]

deception). CMMC Level 3 requires implementation of selected security 
requirements from NIST SP 800-172 to reduce the risk of APT threats.
    The CMMC Program will require prime contractors to flow the 
appropriate CMMC requirement down throughout the entire supply chain 
relevant to a particular contract. Defense contractors or 
subcontractors that handle FCI, must meet the requirements for CMMC 
Level 1. Defense contractors that handle CUI must meet the requirements 
for CMMC Level 2 or higher, depending on the sensitivity of the 
information associated with a program or technology being developed.

Scale and Depth

    Today, DoD prime contractors must include DFARS clause 252.204-7012 
in subcontracts for which performance will involve covered defense 
information, but this does not provide the Department with sufficient 
insights with respect to the cybersecurity posture of all members of a 
multi-tier supply chain for any given program or technology development 
effort. CMMC 2.0 requires prime contractors to flow down appropriate 
CMMC Level requirements, as applicable, to subcontractors throughout 
their supply chain(s).
    Given the size and scale of the DIB, the Department cannot scale 
its existing cybersecurity assessment capability to conduct on-site 
assessments of approximately 220,000 DoD contractors and subcontractors 
every three years. The Department's existing assessment capability is 
best suited for conducting targeted assessments for the relatively 
small subset of DoD contractors and subcontractors that support 
designated high-priority programs involving CUI.
    CMMC addresses the Department's scaling challenges by utilizing a 
private-sector accreditation structure. A DoD-authorized Accreditation 
Body will authorize, accredit, and provide oversight of C3PAOs which in 
turn will conduct CMMC Level 2 Certification Assessments of actual and 
prospective DoD contractors and subcontractors. Defense contractors 
will directly contract with an authorized or accredited C3PAO to obtain 
a CMMC Certification Assessment. The cost of CMMC Level 2 activities is 
driven by multiple factors, including market forces that govern 
availability of C3PAOs and the size and complexity of the enterprise or 
enclave under assessment. The Government will perform CMMC Level 3 
Certification Assessments. Government resource limitations may affect 
schedule availability.

Reduces Duplicate or Respective Assessments of Our Industry Partners

    CMMC assessment results will be posted in SPRS, DoD's authoritative 
source for supplier and product performance information. Posting CMMC 
assessment results in SPRS precludes the need to validate CMMC 
implementation on a contract-by-contract basis. This enables DoD to 
identify whether the CMMC requirements have been met for relevant 
contractor information systems, avoids duplicative assessments, and 
eliminates the need for program level assessments, all of which 
decreases costs to both DoD and industry.

CMMC 2.0 Implementation

    The DoD is implementing a phased implementation for CMMC 2.0 and 
intends to introduce CMMC requirements in solicitations over a three-
year period to provide appropriate ramp-up time. This phased 
implementation is intended to minimize the financial impacts to defense 
contractors, especially small businesses, and disruption to the 
existing DoD supply chain. After CMMC is implemented in acquisition 
regulation, DoD will include CMMC self-assessment requirements in 
solicitations when warranted by the type of information that will be 
handled by the contractor of subcontractor(s). CMMC requirements for 
Levels 1, 2, and 3 will be included in solicitations issued after the 
phase-in period when warranted by any FCI and/or CUI information 
protection requirements for the contract effort. In the intervening 
period, Government Program Managers will have discretion to include 
CMMC requirements or exclude them and rely upon existing DFARS Clause 
252.204-7012 requirements, in accordance with DoD policy. As stated in 
32 CFR 170.20(a), there is qualified standards acceptance between DCMA 
DIBCAC High Assessment and CMMC Level 2, which will result in 
staggering of the dates for new CMMC Level 2 assessments. The 
implementation period will consist of four (4) phases as set forth in 
32 CFR 170.3(e), during which time the Government will include CMMC 
requirements in certain solicitations and contracts. During the CMMC 
phase-in period, program managers and requiring activities will be 
required to include CMMC requirements in certain solicitations and 
contracts and will have discretion to include in others.
    A purpose of the phased implementation is to ensure adequate 
availability of authorized or accredited C3PAOs and assessors to meet 
the demand.

CMMC 2.0 Flow Down

    CMMC Level requirements will be flowed down to subcontractors at 
all tiers as set forth in 32 CFR 170.23; however, the specific CMMC 
Level required for a subcontractor will be based on the type of 
unclassified information and the priority of the acquisition program 
and/or technology being developed.

Key Changes Incorporated in the CMMC 2.0 Program

    In November 2021, the Department announced ``CMMC 2.0,'' which is 
an updated program structure with revised requirements. In CMMC 2.0, 
the Department has introduced several key changes that build on and 
refine the original program requirements. These include:
     Streamlining the model from five levels to three levels.
     Exclusively implementing National Institute of Standards 
and Technology (NIST) cybersecurity standards and guidelines.
     Allowing all companies subject to Level 1, and a subset of 
companies subject to Level 2 to demonstrate compliance through self-
assessments.
     Increased oversight of professional and ethical standards 
of CMMC third-party assessors.
     Allowing Plans of Action & Milestones (POA&M) under 
limited circumstances to achieve conditional certification.
    As a result of the alignment of CMMC 2.0 to NIST guidelines, the 
Department's requirements will continue to evolve as changes are made 
to the underlying NIST SP 800-171 Rev 2 and NIST SP 800-172 
requirements.

CMMC Assessment

Assessment Criteria

    CMMC requires that defense contractors and subcontractors entrusted 
with FCI and CUI implement cybersecurity standards at progressively 
more secure levels, depending on the type and sensitivity of the 
information.

CMMC Level 1 Self-Assessment

    An annual CMMC Level 1 Self-Assessment and annual affirmation 
asserts that an OSA has implemented all the Basic Safeguarding 
requirements to protect FCI as set forth in 32 CFR 170.14(c)(2).
    An OSA can choose to perform the annual self-assessment internally 
or engage a third-party to assist with evaluating its Level 1 
compliance. Use of a third party to assist with the

[[Page 89084]]

assessment process is still considered a self-assessment and does not 
result in a CMMC certification. An OSA can be compliant with CMMC Level 
1 requirements for an entire enterprise network or for a particular 
enclave(s), depending upon where the FCI is or will be processed, 
stored, or transmitted.

CMMC Level 2 Self-Assessment

    A CMMC Level 2 Self-Assessment and triennial affirmation attests 
that an OSA has implemented all the security requirements to protect 
CUI as specified in 32 CFR 170.14(c)(3).

CMMC Level 2 Certification Assessment

    A CMMC Level 2 Certification Assessment, conducted by a C3PAO, 
verifies that an OSC is conforming to the security requirements to 
protect CUI as specified in 32 CFR 170.14(c)(3). A CMMC Level 2 
assessment must be conducted for each OSC information system that will 
be used in the execution of the contract that will process, store, or 
transmit CUI.

CMMC Level 3 Certification Assessment

    Receipt of a CMMC Level 2 Final Certification Assessment for 
information systems within the Level 3 CMMC Assessment Scope is a 
prerequisite for a CMMC Level 3 Certification Assessment. A CMMC Level 
3 Certification Assessment, conducted by DCMA Defense Industrial Base 
Cybersecurity Assessment Center (DIBCAC), verifies that an OSC has 
implemented the CMMC Level 3 security requirements to protect CUI as 
specified in 32 CFR 170.14(c)(4). A CMMC Level 3 Certification 
Assessment must be conducted for each OSC information system that will 
be used in the execution of the contract that will process, store, or 
transmit CUI.

Impact and Cost Analysis of CMMC 2.0

Summary of Impact

    Public comment feedback on CMMC 1.0 indicated that cost estimates 
were too low. CMMC 2.0 cost estimates account for that feedback with 
the following improvements:

 Allowance for outsourced IT services
 Increased total time for the contractor to prepare for the 
assessment, including limited time for learning the reporting and 
affirmation processes
 Allowance for use of consulting firms to assist with the 
assessment process
 Time for a senior level manager to review the assessment and 
affirmation before submitting the results in SPRS
 Updated government and contractor labor rates that include 
applicable burden costs

    As a result, some CMMC 2.0 costs may be higher than those included 
in CMMC 1.0.
    The CMMC 2.0 impact analysis includes estimated costs for 
implementation of CMMC 2.0 requirements across Level 1, Level 2, and 
Level 3 for the Public (small and other than small entities, including 
the CMMC Ecosystem as set forth in 32 CFR Subpart C) and the 
Government. In summary, the total estimated Public and Government costs 
associated with this rule, calculated for a 20-year horizon in 2023 
dollars at a 7 percent discount rate and a 3 percent discount rate are 
provided as follows:
[GRAPHIC] [TIFF OMITTED] TP26DE23.004

[GRAPHIC] [TIFF OMITTED] TP26DE23.005

    Estimating the number of CMMC assessments for unique entities per 
level per year is complicated by the fact that companies may serve as a 
prime contractor on one effort but a subcontractor on others, and may 
also enter into subcontract agreements with more than one prime 
contractor for various opportunities.
    In addition, the CMMC Program relies upon free market influences of 
supply and demand to propel implementation. Specifically, the 
Department does not control which defense contractors aspire to compete 
for which business opportunities, nor does it control access to the 
assessment services offered by C3PAOs. OSAs may elect to complete a 
self-assessment or pursue a certification assessment at any time after 
issuance of the rule, in an effort to distinguish themselves as 
competitive for efforts that require an ability to adequately protect 
CUI. For that reason, the number of CMMC assessments for unique 
entities per level per year may vary significantly from the assumptions 
used in generating the cost estimate. The estimates represent the best 
estimates at this time based on internal expertise and public feedback.
    DoD utilized historical metrics gathered for the CMMC 1.0 Program 
and subject matter expertise from Defense Pricing and Contracting (DPC) 
and DCMA DIBCAC to estimate the number of entities by type and by 
assessment level for this analysis. The following

[[Page 89085]]

table summarizes the estimated profile used in this analysis.
[GRAPHIC] [TIFF OMITTED] TP26DE23.006

    DoD is planning for a phased roll-out of each assessment level 
across 7 years with the entity numbers reaching a maximum by Year 4 as 
shown in the tables. The target of Year 4 was selected based on the 
projected capacity of the CMMC Ecosystem to grow to efficiently support 
the entities in the pipeline. For modeling efficiency, a similar roll-
out is assumed regardless of entity size or assessment level. It is 
assumed that by year 7 the maximum number of entities is reached. 
Beyond year 7, the number of entities entering and exiting are expected 
to net to zero. The following tables reflect the number of new entities 
in each year and for each level.
[GRAPHIC] [TIFF OMITTED] TP26DE23.007

[GRAPHIC] [TIFF OMITTED] TP26DE23.008

[[Page 89086]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.009

Public Costs

Summary of Impacted Awardee Entities
    According to data available in the Electronic Data Access system 
for fiscal years (FYs) 2019, 2020, and 2021, DoD awards an average of 
1,366,262 contracts and orders per year that contain DFARS clause 
252.204-7012, to 31,338 unique awardees, of which 683,718 awards (50%) 
are made to 23,475 small entities (75%).\29\
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    \29\ The number of unique awardees impacted each year is \1/3\ 
of the average number of annual awardees according to the Electronic 
Data Access system (31,338/3 = 10,446). This estimate does not 
address new entrants or awardees who discontinue doing business with 
DoD.
---------------------------------------------------------------------------

Public Cost Analysis

    The following is a summary of the estimated Public costs CMMC 2.0 
for other than small \30\ entities, per assessment of a contractor 
information system, at the required periodicity for each CMMC level.
---------------------------------------------------------------------------

    \30\ Includes all businesses with the exception of those defined 
under the small business criteria and size standards provided in 13 
CFR 121.201 (See FAR Part 19.102)
[GRAPHIC] [TIFF OMITTED] TP26DE23.010

    The following is a summary of the estimated Public costs CMMC 2.0 
for Small Entities, per assessment of each contractor information 
system, estimated at one per entity, at the required periodicity for 
each CMMC level.
---------------------------------------------------------------------------

    \31\ The Level 1 and Level 2 Self-Assessment information 
collection reporting and recordkeeping requirements will be included 
in a modification of an existing DFARS collection approved under OMB 
Control Number 0750-0004, Assessing Contractor Implementation of 
Cybersecurity Requirements. Modifications to this DFARS collection 
will be addressed as part of the 48 CFR acquisition rule.

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[[Page 89087]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.011

    The total estimated Public (large and small entities) costs 
associated with this rule, calculated for a 20-year horizon in 2023 
dollars at a 7 percent and 3 percent discount rate, per OMB guidance, 
is provided as follows:
---------------------------------------------------------------------------

    \32\ The Level 1 and Level 2 Self-Assessment information 
collection reporting and recordkeeping requirements will be included 
in a modification of an existing DFARS collection approved under OMB 
Control Number 0750-0004, Assessing Contractor Implementation of 
Cybersecurity Requirements. Modifications to this DFARS collection 
will be addressed as part of the 48 CFR acquisition rule.
[GRAPHIC] [TIFF OMITTED] TP26DE23.012

Assumptions

    In estimating the Public costs, DoD considered applicable 
nonrecurring engineering costs, recurring engineering costs,\33\ 
assessment costs, and affirmation costs for each CMMC Level. For CMMC 
Levels 1 and 2, the cost estimates are based only upon the assessment, 
certification, and affirmation activities that a defense contractor, 
subcontractor, or ecosystem member must take to allow DoD to verify 
implementation of the relevant underlying security requirements, i.e., 
for CMMC Level 1, the security requirements set forth in FAR clause 
52.204-21, and for CMMC Level 2, the security requirements set forth in 
NIST SP 800-171 Rev 2. DoD did not consider the cost of implementing 
the security requirements themselves because implementation is already 
required by FAR clause 52.204-21, effective June 15, 2016, and by DFARS 
clause 252.204-7012, requiring implementation by Dec. 31, 2017, 
respectively; therefore, the costs of implementing the security 
requirements for CMMC Levels 1 and 2 should already have been incurred 
and are not attributed to this rule. As such, the nonrecurring 
engineering and recurring engineering costs to implement the security 
requirements defined for CMMC Level 1 and Level 2 are not included in 
this economic analysis. However, cost estimates to implement CMMC Level 
3, are included, as that CMMC level will require defense contractors 
and subcontractors, as applicable, to implement a DoD-defined subset of 
the security requirements set forth in NIST SP 800-172, a new addition 
to current security protection requirements.
---------------------------------------------------------------------------

    \33\ The terms nonrecurring engineering costs and recurring 
engineering costs are terms of art and do not only encompass actual 
engineering costs.
---------------------------------------------------------------------------

    In estimating the public cost for a defense contractor small entity 
to comply with CMMC Program requirements for each CMMC level, DoD 
considered non-recurring engineering costs, recurring engineering 
costs, assessment costs, and affirmation costs for each CMMC Level. 
These costs include labor and consulting.
    Estimates include size and complexity assumptions to account for 
typical organizational differences between small entities and other 
than small entities with respect to the handling of Information 
Technology (IT) and cybersecurity:

 small entities are likely to have a less complex, less 
expansive operating environment and IT/Cybersecurity infrastructure 
compared to larger defense contractors
 small entities are likely to outsource IT and cybersecurity to 
an External Service Provider (ESP)
 entities (small and other than small) pursuing CMMC Level 2 
Self-Assessment are likely to seek consulting or implementation 
assistance from an ESP to either help them prepare for the assessment 
technically or participate in the assessment with the C3PAOs.
    Estimates do not include the cost to implement (Non-recurring 
Engineering Costs (NRE)) or maintenance costs (Recurring Engineering 
(RE)) the

[[Page 89088]]

security requirements prescribed in current regulations.
    For CMMC Levels 1 and 2, cost estimates are based upon assessment, 
reporting and affirmation activities that a contractor or subcontractor 
will need to take to verify implementation of existing cybersecurity 
requirements set forth in FAR clause 52.204-21, effective June 15, 
2016, to protect FCI, and DFARS clause 252.204-7012 which required 
implementation of NIST SP 800-171 Rev 2 not later than December 31, 
2017, to protect CUI. As such, cost estimates are not included for an 
entity to implement the CMMC Level 1 or 2 security requirements, 
maintain implementation of these existing security requirements, or 
remediate a Plan of Action for unimplemented requirements.
    For CMMC Level 3, the cost estimates factor in the assessment, 
reporting, and affirmation activities in addition to estimates for NRE 
and RE to implement and maintain CMMC Level 3 security requirements. In 
addition to implementing the CMMC Level 2 security requirements, CMMC 
Level 3 requires implementing selected security requirement set forth 
in NIST SP 800-172 as described in 32 CFR 170.14(c)(4) which are not 
currently required through other regulations. CMMC Level 3 is expected 
to apply only to a small subset of defense contractors and 
subcontractors.
    The Cost Categories used for each CMMC Level are described:
    1. Nonrecurring Engineering Costs: Estimates consist of hardware, 
software, and the associated labor to implement the same. Costs 
associated with implementing the requirements set forth in FAR 52.204-
21 and NIST SP 800-171 Rev 2 are assumed to have been already 
implemented and, therefore, are not accounted for in this cost 
estimate. As such, these costs only appear in CMMC Level 3. If 
nonrecurring engineering costs are referenced, they are only accounted 
for as a one-time occurrence and are reflected in the year of the 
initial assessment.
    2. Recurring Engineering Costs: Estimates consist of annually 
recurring fees and associated labor for technology refresh. Costs 
associated with implementing the requirements set forth in FAR 52.204-
21 and NIST SP 800-171 Rev 2 are assumed to have been already 
implemented and, therefore, are not accounted for in this cost 
estimate. As such, these costs only appear in CMMC Level 3.
    3. Assessment Costs: Estimates consist of activities for pre-
assessment preparations (which includes gathering and/or developing 
evidence that the assessment objectives for each requirement have been 
satisfied), conducting and/or participating in the actual assessment, 
and completion of any post-assessment work. Assessment costs are 
represented by notional phases. Assessment costs assume the OSA passes 
the assessment on the first attempt (conditional--with an allowable 
POA&M or final). Each phase includes an estimate of hours to conduct 
the assessment activities including:
    (a) Labor hour estimates for a company (and any ESP support) to 
prepare for and participate in the assessment.
    (b) C3PAO cost estimates for companies pursuing a certification

 labor hour estimates for authorized or certified assessors to 
work with the business to conduct the actual assessment
 Assessment Costs broken down into phases:
 Phase 1: Planning and preparing for the assessment
 Phase 2: Conducting the assessment (self or C3PAO)
 Phase 3: Reporting of Assessment Results
 Phase 4: POA&M Closeout (for CMMC Level 3 only, if applicable 
and allowed)
 CMMC allows a limited open Plan of Action and Milestones 
(POA&M) for a period of 180 days to remediate the POA&M, see 32 CFR 
170.21.

    4. Affirmations: Estimates consist of costs for an OSA to submit to 
SPRS an initial and, as applicable, any subsequent affirmations of 
compliance that the contractor information system is compliant with and 
will maintain compliance with the security requirements of the 
applicable CMMC Level. If POA&Ms are allowed, an affirmation must be 
submitted with the POA&M closeout. With the exception of Small Entities 
for Level 1 and Level 2, it is assumed the task requires the same labor 
categories and estimated hours as the final reporting phase of the 
assessment.
    The categories and rates used for estimating purposes were compiled 
by subject matter experts based on current data available from within 
the DoD contractor database for comparable labor categories. A factor 
estimate of 30 percent was added to the labor rate per hour to include 
but are not limited to company-sponsored benefits (fringe) and limited 
employee-related expenses such as training and certifications. This 
estimate is based on labor performed by indirect personnel (i.e., 
personnel who are part of overhead expense); therefore, the 30 percent 
factor represents an estimate for fringe expense and G&A expenses 
versus full overhead expense. The categories and rates inclusive of the 
labor cost plus the additional factor are defined in the table.

[[Page 89089]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.013

[GRAPHIC] [TIFF OMITTED] TP26DE23.014

     
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    \34\ IT = Information Technology, MGMT = Management.
    \35\ IT and MGMT rates represent an estimate for in-house labor 
and includes the labor rate plus fringe and employee-related 
expenses.
    \36\ Background assumes a Bachelor's degree as the minimum 
education level, additional requirements are noted including 
required years of experience. A Master's degree may reduce the 
required years of experience as noted.
    \37\ The ESP/C3PAO rate represents an estimate for outsourced 
labor and includes the labor rate, overhead expense, G&A expense, 
and profit.
---------------------------------------------------------------------------

CMMC Level 1 Self-Assessment and Affirmation Costs

Other Than Small Entities

     Nonrecurring and recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
1, since it is assumed that the contractor or subcontractor has already 
implemented the applicable security requirements.\38\
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    \38\ CMMC Level 1 consists of the same 15 basic safeguarding 
requirements specified in FAR clause 52.204-21. This cost analysis 
assumes that defense contractors and subcontractors already have 
contracts with FAR clause 52.204-21 and, therefore, have already 
implemented the 15 basic safeguarding requirements.
---------------------------------------------------------------------------

     Assessments Costs: It is estimated that the cost to 
support a CMMC Level 1 self-assessment and affirmation is *$4,042 (as 
summarized in 4.1.2, Table 1). A Level I Self-Assessment is conducted 
annually, and is based on the assumptions detailed:

 Phase 1: Planning and preparing for the assessment: $1,146
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A manager (MGMT2) for 4 hours ($95.96/hr x 4hrs = $384)
 Phase 2: Conducting the self-assessment: $1,728
     A director (MGMT5) for 6 hours ($190.52/hr x 6hrs = 
$1,143)
     A staff IT specialist (IT4) for 6 hours ($97.49/hrs x 6hrs 
= $585)
 Phase 3: Reporting of assessment results into SPRS: $584
     A director (MGMT5) for 2 hours ($190.52/hr x 2hrs = $381)
     A staff IT specialist (IT4) for 2.08 hours ($97.49/hrs x 
2.08hrs = $203)
 Affirmations: It is estimated that the costs to perform an 
initial and annual affirmation of compliance with CMMC Level 1 for an 
``other than small'' entity is $584
     A director (MGMT5) for 2 hours ($190.52/hr x 2hrs = $381)
     A staff IT specialist (IT4) for 2.08 hours ($97.49/hrs x 
2.08hrs = $203)

     The Level 1 Self-Assessment and Affirmations cost burden 
will be addressed as part of the 48 CFR acquisition rule.
     Summary: The following is the annual other than small 
entities total cost summary for CMMC Level 1 self-

[[Page 89090]]

assessments and affirmations over a ten-year period: (Example 
calculation, Year 1: *$4,042 per entity x 246 entities (cumulative) = 
$994,233).
[GRAPHIC] [TIFF OMITTED] TP26DE23.015

Small Entities

     Nonrecurring and recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
1 since it is assumed the contractor or subcontractor has implemented 
the applicable security requirements.\39\
---------------------------------------------------------------------------

    \39\ Again, it is assumed that that defense contractors and 
subcontractors have already implemented the 15 basic safeguarding 
requirements in FAR clause 52.204-21.
---------------------------------------------------------------------------

     Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 1 assessment and 
affirmation is *$5,977 (as summarized in 4.1.2, Table 2). A Level I 
Self-Assessment is conducted annually, and is based on the assumptions 
detailed:

 Phase 1: Planning and preparing for the assessment: $1,803
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     An external service provider (ESP) for 4 hours ($260.28 x 
4hrs = $1,041)
 Phase 2: Conducting the self-assessment: $2,705
     A director (MGMT5) for 6 hours ($190.52/hr x 6hrs = 
$1,143)
     An external service provider (ESP) for 6 hours ($260.28 x 
6hrs = $1,562)
 Phase 3: Reporting of assessment results into SPRS: $909
     A director (MGMT5) for 2 hours ($190.52/hr x 2hrs = $381)
     An external service provider (ESP) for 2 hours ($260.28/hr 
* 2hrs = $521)
     A staff IT specialist (IT4-SB) for 0.08 hours \40\ 
($86.24/hr x 0.08hrs = $7)
---------------------------------------------------------------------------

    \40\ A person needs to enter the information into SPRS, which 
should only take five minutes.
---------------------------------------------------------------------------

 Affirmation: initial affirmation post assessment: $ 560
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level I annually for a small entity is $560
     A director (MGMT5) for 2 hours ($190.52/hr x 2hrs = $381)
     A staff IT specialist (IT4-SB) for 2.08 hours ($86.24/hr x 
2.08hrs = $179)

     The Level 1 Self-Assessment and Affirmations cost burden 
will be addressed as part of the 48 CFR acquisition rule.
     Summary: The following is the annual small entities total 
cost summary for CMMC Level 1 self-assessments and affirmations over a 
ten-year period: (Example calculation, Year 1: *$5,977 per entity x 699 
entities (cumulative) = $4,177,845).

[[Page 89091]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.016

All Entities Summary

    The following is a summary of the combined costs for both small and 
other than small entities for CMMC Level 1 Self-Assessments and 
Affirmations over a ten-year period:
[GRAPHIC] [TIFF OMITTED] TP26DE23.017

CMMC Level 2 Self-Assessment and Affirmation Costs

Other Than Small Entities

     Nonrecurring and Recurring Engineering Costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
2 Self-Assessment since it is assumed the contractor or subcontractor 
has implemented the NIST SP 800-171 Rev 2 security requirements.
     Self-Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 2 self-assessment and 
affirmation is *$43,403. The three-year cost is $48,827 (as summarized 
in 4.1.2, Table 1), which includes the triennial assessment + 
affirmation, and two additional annual affirmations ($43,403 + $2,712 + 
$2,712).

 Phase 1: Planning and preparing for the assessment: $18,015
     A director (MGMT5) for 30 hours ($190.52/hr x 30hrs = 
$5,716)
     A manager (MGMT2) for 40 hours ($95.96/hr x 40hrs = 
$3,838)
     A staff IT specialist (IT4) for 46 hours ($97.49/hr x 
46hrs = $4,485)
     A senior IT specialist (IT3) for 26 hours ($81.96/hr x 
26hrs = $2,131)
     An IT specialist (IT2) for 34 hours ($54.27/hr x 34hrs = 
$1,845)
 Phase 2: Conducting the self-assessment: $19,964
     A director (MGMT5) for 24 hours ($190.52/hr x 24hrs = 
$4,572)
     A manager (MGMT2) for 24 hours

[[Page 89092]]

($95.96/hr x 24hrs = $2,303)
     A staff IT specialist (IT4) for 56 hours ($97.49/hr x 
56hrs = $5,460)
     A senior IT specialist (IT3) for 56 hours ($81.96/hr x 
56hrs = $4,590)
     An IT specialist (IT2) for 56 hours ($54.27/hr x 56hrs = 
$3,039)
 Phase 3: Reporting of Assessment Results into SPRS: $2,712
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A manager (MGMT2) for 4 hours ($95.96/hr x 4hrs = $384)
     A staff IT specialist (IT4) for 16 hours ($97.49/hr x 
16hrs = $1,560)
     A senior IT specialist (IT3) for 0.08 hours ($81.96/hr x 
0.08hrs = $7)
 Affirmation: initial affirmation post assessment: $2,712
 Reaffirmations: It is estimated that the cost to perform an 
annual affirmation for CMMC Level 2 Self-Assessment is $2,712 (three-
year cost is $8,136, or $2,712 x 3):
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A manager (MGMT2) for 4 hours ($95.96/hr x 4hrs = $384)
     A staff IT specialist (IT4) for 16 hours ($97.49/hr x 
16hrs = $1,560)
     A senior IT specialist (IT3) for 0.08 hours ($81.96/hr x 
0.08hrs = $7)

     The Level 2 Self-Assessment and Affirmations cost burden 
will be addressed as part of the 48 CFR acquisition rule.
     Summary: The following is the annual other than small 
entities total cost summary for CMMC Level 2 Self-Assessments and 
Affirmations over a ten-year period: (Example calculation, Year 2: 
(*$43,403 assessment per entity x 35 entities) + ($2,712 annual 
affirmation per entity x 7 entities) = $1,538,092.
[GRAPHIC] [TIFF OMITTED] TP26DE23.018

Small Entities

     Nonrecurring and recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
2 Self-Assessment since it is assumed the contractor or subcontractor 
has implemented the NIST SP 800-171 Rev 2 security requirements.
     Self-Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 2 self-assessment and 
affirmation for a small entity is *$34,277. The three-year cost is 
$37,196 (as summarized in 4.1.2, Table 2), which includes the triennial 
assessment + affirmation, plus two additional annual affirmations 
($34,277 + $1,459 + $1,459).

 Phase 1: Planning and preparing for the assessment: $14,426
     A director (MGMT5) for 32 hours ($190.52/hr x * 32hrs = 
$6,097)
     An external service provider (ESP) for 32 hours ($260.28/
hr x 32hrs = $8,329)
 Phase 2: Conducting the self-assessment: $15,542
     A director (MGMT5) for 16 hours ($190.52/hr x 16hrs = 
$3,048)
     An external service provider (ESP) for 48 hours ($260.28/
hr x 48hrs = $12,493)
 Phase 3: Reporting of Assessment Results into SPRS: $2,851
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     An external service provider (ESP) for 8 hours ($260.28/hr 
x 8hrs = $2,082)
     A staff IT specialist (IT4-SB) for 0.08 hours ($86.24/hr x 
0.08hrs = $7)
 Affirmation: initial affirmation post assessment: $1,459
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 2 Self-Assessment annually is $1,459 (three-year costs to 
reaffirm a CMMC Level 2 Self-Assessment annually is $4,377, or $1,459 x 
3):
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A staff IT specialist (IT4-SB) for 8.08 hours ($86.24/hr x 
8.08hrs = $697)

     The Level 2 Self-Assessment and Affirmations cost burden 
will be addressed as part of the 48 CFR acquisition rule.
     Summary: The following is the annual small entities total 
cost summary for CMMC Level 2 Self-Assessments and Affirmations over a 
ten-year period: (Example calculation, Year 2: (*$34,277 self-
assessment per entity x 101 entities)

[[Page 89093]]

+ ($1,459 annual affirmation per entity x 20 entities) = $3,491,193).
[GRAPHIC] [TIFF OMITTED] TP26DE23.019

All Entities Summary

    The following is a summary of the cost to all entities regardless 
of size for CMMC Level 2 Self-Assessments and affirmations over a ten-
year period:
[GRAPHIC] [TIFF OMITTED] TP26DE23.020

CMMC Level 2 Certification Assessment and Affirmation Costs

Other Than Small Entities

     Nonrecurring and recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
2 Certification Assessment since it is assumed the contractor or 
subcontractor has implemented the NIST SP 800-171 Rev 2 security 
requirements.
     Assessment and Initial Affirmation Costs: It is estimated 
that the cost to support a CMMC Level 2 Certification Assessment and 
annual affirmation for an ``other than small'' entity is *$112,345. The 
three-year cost is $117,768 (as summarized in 4.1.2, Table 1), and 
includes a triennial assessment + affirmation, plus two additional 
annual affirmations ($112,345 + $2,712

[[Page 89094]]

+ $2,712, with a minor rounding difference.)

 Phase 1: Planning and preparing for the assessment: $26,264
     A director (MGMT5) for 32 hours ($190.52/hr x 32hrs = 
$6,097)
     A manager (MGMT2) for 64 hours ($95.96/hr x 64hrs = 
$6,141)
     A staff IT specialist (IT4) for 72 hours ($97.49/hr x 
72hrs = $7,019)
     A senior IT specialist (IT3) for 40 hours ($81.96/hr x 
40hrs = $3,278)
     An IT specialist (IT2) for 58 hours ($54.27/hr x 58hrs = 
$3,148)
     An associate IT specialist (IT1) for 16 hours ($36.32/hr x 
16hrs = $581)
 Phase 2: Conducting the assessment: $28,600
     A director (MGMT5) for 32 hours ($190.52/hr x 32hrs = 
$6,097)
     A manager (MGMT2) for 32 hours ($95.96/hr x 32hrs = 
$3,071)
     A staff IT specialist (IT4) for 72 hours ($97.49/hr x 
72hrs = $7,019)
     A senior IT specialist (IT3) for 72 hours ($81.96/hr x 
72hrs = $5,901)
     An IT specialist (IT2) for 120 hours ($54.27/hr x 120hrs = 
$6,512)
 Phase 3: Reporting of Assessment Results: $2,712
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A manager (MGMT2) for 4 hours ($95.96/hr x 4hrs = $384)
     A staff IT specialist (IT4) for 16 hours ($97.49/hr x 
16hrs = $1,560)
     A senior IT specialist (IT3) for 0.08 hours ($81.96/hr x 
0.08hrs = $7)
 Affirmations: initial affirmation post assessment: $2,712
 C3PAO Costs: C3PAO engagement inclusive of Phases 1, 2, and 3 
(5-person team) for 200 hours ($260.28/hr x 200hrs = $52,056)
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 2 Certification Assessment annually is $2,712 (three-year 
cost is $8,136 or $2,712 x 3)
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A manager (MGMT2) for 4 hours ($95.96/hr x 4hrs = $384)
     A staff IT specialist (IT4) for 8 hours ($97.49/hr x 8hrs 
= $1,560)
     A senior IT specialist (IT3) for 0.08 hours ($81.96/hr x 
0.08hrs = $7)

     The Level 2 Affirmations cost burden will be addressed as 
part of the 48 CFR acquisition rule.
     Summary: The following is the annual other than small 
entities total cost summary for CMMC Level 2 Certifications and 
Affirmations over a ten-year period: (Example calculation, Year 2: 
(*$112,345 assessment per entity x 673 entities) + ($2,712 annual 
affirmation per entity x 135 entities) = $75,974,425).
[GRAPHIC] [TIFF OMITTED] TP26DE23.021

Small Entities

     Nonrecurring or recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
2 Certification Assessment since it is assumed the contractor or 
subcontractor has implemented the NIST SP 800-171 Rev 2 security 
requirements.
     Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 2 Certification 
Assessment and affirmation for a small entity is *$101,752. The three-
year cost is $104,670 (as summarized in 4.1.2, Table 2), and includes 
the triennial assessment + affirmation plus two additional annual 
affirmations ($101,752 + $1,459 + $1,459).

 Phase 1: Planning and preparing for the assessment: $20,699
     A director (MGMT5) for 54 hours ($190.52/hr x 54hrs = 
$10,288)
     An external service provider (ESP) for 40 hours ($260.28/
hr x 40hrs = $10,411)
 Phase 2: Conducting the C3PAO-assessment: $45,509
     A director (MGMT5) for 64 hours ($190.52/hr x 64hrs = 
$12,193)
     An external service provider (ESP) for 128 hours ($260.28/
hr x 128hrs = $33,316)
 Phase 3: Reporting of Assessment Results: $2,851
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     An ESP for 8 hours ($260.28/hr x 8hrs = $2,082)
     A staff IT specialist (IT4-SB) for 0.08 hours ($86.24/hr x 
0.08hrs = $7)
 Affirmations: cost to post initial affirmation $1,459
 C3PAO Costs: C3PAO engagement inclusive of Phases 1, 2, and 3 
(3-person team) for 120 hours ($260.28/hr x 120hrs = $31,234)
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 2

[[Page 89095]]

Certification Assessment annually is $1,459 (three-year cost is $4,377, 
or $1,459 x 3)
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A staff IT specialist (IT4-SB) for 8.08 hours ($86.24/hr x 
8.08hrs = $697)

     The Level 2 Affirmations cost burden will be addressed as 
part of the 48 CFR acquisition rule.
     Summary: The following is the annual small entities total 
cost summary for CMMC Level 2 Certifications and Affirmations over a 
ten-year period: (Example calculation, Year 2: (*$101,752 assessment 
per entity x 1,926 entities) + ($1,459 annual affirmation per entity x 
382 entities) = $196,531,451).
[GRAPHIC] [TIFF OMITTED] TP26DE23.022

All Entities Summary

    The following is a summary of the cost to all entities regardless 
of size for CMMC Level 2 Certification and Affirmation costs over a 
ten-year period:
[GRAPHIC] [TIFF OMITTED] TP26DE23.023

[[Page 89096]]

CMMC Level 3 Certification Assessment and Affirmation Costs

    An OSC pursuing Level 3 Certification must have a CMMC Level 2 
Final Certification Assessment, and also must demonstrate compliance 
with CMMC Level 3, which includes implementation of selected security 
requirements from NIST SP 800-172 not required in prior rules. 
Therefore, the Nonrecurring Engineering and Recurring Engineering cost 
estimates have been included for the initial implementation and 
maintenance of the required selected NIST SP 800-172 requirements. The 
cost estimates account for time for an OSC to implement these security 
requirements and prepare for, support, participate in, and closeout a 
CMMC Level 3 Certification Assessment conducted by DCMA DIBCAC. The OSC 
should keep in mind that the total cost of a CMMC Level 3 Certification 
Assessment includes the cost of a Level 2 Certification Assessment as 
well as the costs to implement and assess the security requirements 
specific to Level 3. CMMC Level 3 is expected to affect a small subset 
of the DIB.

Other Than Small Entities, Per Entity

     Nonrecurring Engineering Costs: $21,100,000.\41\
---------------------------------------------------------------------------

    \41\ DoD utilized subject matter expertise from Defense Pricing 
and Contracting (DPC) and DCMA DIBCAC to estimate the Nonrecurring 
and Recurring Engineering Costs.
---------------------------------------------------------------------------

     Recurring Engineering Costs: $4,120,000.
     Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 3 Certification and 
affirmation for an other than small entity is *$39,021. The three-year 
cost is $44,445 (as summarized in 4.1.2, Table 1), and includes the 
triennial assessment + affirmation, plus two additional annual 
affirmations ($39,021 + $2,712 + $2,712).
 Phase 1: Planning and preparing for the assessment: $7,066
     A director (MGMT5) for 12 hours ($190.52/hr x 12hrs = 
$2,286)
     A manager (MGMT2) for 12 hours ($95.96/hr x 12hrs = 
$1,152)
     A staff IT specialist (IT4) for 16 hours ($97.49/hr x 
16hrs = $1,560)
     A senior IT specialist (IT3) for 12 hours ($81.96/hr x 
12hrs = $984)
     An IT specialist (IT2) for 20 hours ($54.27/hr x 20hrs = 
$1,085)
 Phase 2: Conducting the assessment: $23,136
     A director (MGMT5) for 24 hours ($190.52/hr x 24hrs = 
$4,572)
     A manager (MGMT2) for 24 hours ($95.96/hr x 24hrs = 
$2,303)
     A staff IT specialist (IT4) for 64 hours ($97.49/hr x 
64hrs = $6,239)
     A senior IT specialist (IT3) for 64 hours ($81.96/hr x 
64hrs = $5,245)
     An IT specialist (IT2) for 88 hours ($54.27/hr x 88hrs = 
$4,776)
 Phase 3: Reporting of assessment results: $2,712
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A manager (MGMT2) for 4 hours ($95.96/hr x 4hrs = $384)
     A staff IT specialist (IT4) for 16 hours ($97.49/hr x 
16hrs = $1,560)
     A senior IT specialist (IT3) for 0.08 hours ($81.96/hr x 
0.08hrs = $7)
 Phase 4: Closing out POA&Ms \42\ (for CMMC Level 3 if 
necessary and allowed): $3,394
---------------------------------------------------------------------------

    \42\ Costs for closing out POA&Ms are included at Level 3 
because the requirement to implement a subset of NIST SP 800-172 
security requirements is new with the CMMC rule. These costs are not 
included at Level 2 because the implementation of all NIST SP 800-
171 Rev 2 security requirements are already required.
---------------------------------------------------------------------------

     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
     A senior staff IT specialist (IT5) for 16 hours ($116.87/
hr x 16hrs = $1,870)
 Affirmations: initial affirmation post assessment: $2,712
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 3 Certification Assessment annually is $2,712 (three-year 
cost is $8,136, or $2,712 x 3)
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A manager (MGMT2) for 4 hours ($95.96/hr x 4hrs = $384)
     A staff IT specialist (IT4) for 16 hours ($97.49/hr x 
16hrs = $1,560)
     A senior IT specialist (IT3) for 0.08 hours ($81.96/hr x 
0.08hrs = $7)

    The Level 3 Affirmations cost burden will be addressed as part of 
the 48 CFR acquisition rule.
     Summary: The following is the annual other than small 
entities total cost summary for CMMC Level 3 Certifications and 
Affirmations over a ten-year period. Example calculation, Year 2 
(reference per entity amounts shown):

 *($39,021 Certification per entity x 5 entities) + ($2,712 
Annual Affirmation per entity x 1 entity) = $197,818, and
 $105,500,000 Nonrecurring Engineering cost ($21,100,000 per 
entity x 5 entities being certified), and
 $24,720,000 Recurring Engineering cost ($4,120,000 per entity 
x 5 entities being certified) + ($4,120,000 per entity x 1 entity 
performing affirmations)
 $130,417,818 Total Cost = Certification and Affirmation Cost 
($197,818) + Nonrecurring Engineering cost ($105,500,000) + Recurring 
Engineering cost ($24,720,000), or $145,432,897.

[[Page 89097]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.024

Small Entities

     Nonrecurring Engineering Costs: $2,700,000.
     Recurring Engineering Costs: $490,000.
     Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 3 Certification 
Assessment for a small entity is *$9,050. The three-year cost is 
$12,802 (summarized in 4.1.2, Table 2), and includes the triennial 
assessment + affirmation, plus two additional annual affirmations 
($9,050 + $1,876 + $1,876):

 Phase 1: Planning and preparing for the assessment: $1,905
     A director (MGMT5) for 10 hours ($190.52/hr x 10hrs = 
$1,905)
 Phase 2: Conducting the assessment: $1,524
     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
 Phase 3: Reporting of Assessment Results: $1,876
     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
     A staff IT specialist (IT4-SB) for 4.08 hours ($86.24/hr x 
4.08hrs = $352)
 Phase 4: Closing out POA&Ms \43\ (for CMMC Level 3 if 
necessary and allowed): $1,869
---------------------------------------------------------------------------

    \43\ Costs for closing out POA&Ms are included at Level 3 
because the requirement to implement a subset of NIST SP 800-172 
security requirements is new with the CMMC rule. These costs are not 
included at Level 2 because the implementation of all NIST SP 800-
171 Rev 2 security requirements are already required.
---------------------------------------------------------------------------

     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
     A staff IT specialist (IT4-SB) for 48 hours ($86.24/hr x 
48hrs = $345)
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 3 Certification Assessment annually is $1,876 (three-year 
cost is $5,628, or $1,876 x 3)
     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
     A staff IT specialist (IT4-SB) for 4.08 hours ($86.24/hr x 
4.08hrs = $352)

     The Level 3 Affirmations cost burden will be addressed as 
part of the 48 CFR acquisition rule.
    Summary: The following is the annual small entities total cost 
summary for CMMC Level 3 Certifications and Affirmations over a ten-
year period. Example calculation, Year 2 (reference per entity amounts 
shown):

 *($9,050 Certification per entity x 45 entities) + ($1,876 
Annual Affirmation per entity x 3 entities) = $412,897, and
 $121,500,000 Nonrecurring Engineering cost ($2,700,000 per 
entity x 45 entities being certified), and
 $23,520,000 Recurring Engineering cost ($490,000 per entity x 
45 entities being certified) + ($490,000 per entity x 3 entities 
performing affirmations)
 $145,432,897 Total Cost = Certification and Affirmation Cost 
($412,897) + Nonrecurring Engineering cost ($121,500,000) + Recurring 
Engineering cost ($23,520,000), or $145,432,897.

[[Page 89098]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.025

All Entities Summary

    The following is a summary of the cost to all entities regardless 
of size for Level 3 CMMC Certification Assessments and affirmations 
over a ten-year period:
[GRAPHIC] [TIFF OMITTED] TP26DE23.026

[[Page 89099]]

Government Costs

Summary of Impact

    The following is a summary of the estimated Government costs 
calculated for a 20-year horizon in 2023 dollars at a 7 percent and 3 
percent discount rate. The Government costs include conducting Level 3 
Certification Assessments, uploading results into the CMMC 
instantiation of eMASS, and the CMMC PMO costs.
[GRAPHIC] [TIFF OMITTED] TP26DE23.027

Government Costs (All Levels)

    The estimated Government costs utilize the entity numbers and 
phased roll-out detailed in the Public cost section. The DIBCAC 
estimated the detailed hours for all activities and other costs in a 
manner similar to the details shown in the Public cost section. Labor 
efforts for the Government are focused in Level 3. For purposes of the 
cost estimate, Government labor is based on the average of step one, 
five, and ten for GS-11 through GS-15 labor elements for the 
Washington, DC area. The cost of labor was increased by a factor of 
approximately 51 percent which includes an estimated fringe factor 
(fringe factor includes estimated average insurance and pension 
benefits) plus overhead (overhead factor represents supervision and 
management of the labor) to arrive at the estimated labor rates. The 
Government labor in this estimate is performed by DCMA, which is a 
labor-intensive agency with limited overhead expenses. Therefore, the 
overall added factor of 51 percent is appropriate versus a typical full 
overhead factor of 100 percent.

CMMC Database Infrastructure Costs

    The Government will develop the operational CMMC instantiation of 
eMASS. The cost analysis assumes that the nonrecurring engineering 
(NRE) cost includes the requirements development, architecture design, 
security, prototyping and testing, and approvals or certifications.\44\ 
Nonrecurring engineering costs is a one-time fee of $4,631,213 and is 
reflected here as incurred in the initial year of the estimate. The 
Year 1 amount is based on the actual cost incurred in FY2020 with 
adjustment for inflation to arrive at base year (BY) 1 dollars (2023).
---------------------------------------------------------------------------

    \44\ Nonrecurring engineering costs were first incurred in FY20. 
The cost has inflation applied to put the value in 2023 base year 
(BY) dollars.
---------------------------------------------------------------------------

    The recurring engineering (RE) cost includes database management, 
data analysis, cybersecurity, storage and backups, licensing, and 
infrastructure.\45\
---------------------------------------------------------------------------

    \45\ The cost for the recurring engineering cost is based on the 
costs incurred in FY20 and FY21. The values for Year 1 (FY20) and 
Year 2 ((FY21) are actual historic values that have inflation 
applied to them to put them in base year 2023 dollars. Every 
proceeding years' recurring engineering cost is based on the average 
of the two historic actual values.
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    The cost for recurring engineering in Year 1 ($2,336,038) and Year 
2 ($1,804,480) are based on historical amounts incurred for FY 2020 and 
FY 2021 with adjustment for inflation to arrive at base year 1 and Year 
2 dollars (2023 and 2024). The estimated recurring engineering for Year 
3 forward is calculated as the average of the Year 1 and Year 2 amounts 
(($2,336,038 + $1,804,480)/2 = $2,070,259).
    The table summarizes the nonrecurring engineering (NRE) and 
recurring engineering (RE) costs for Year 1 through Year 5:
[GRAPHIC] [TIFF OMITTED] TP26DE23.028

Total Government Costs

    The following is a summary of the total Government costs over a 
ten-year period:

[[Page 89100]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.029

Total Public and Government Costs

    The following is a summary of the total estimated annual Public and 
Government cost associated with implementation of the CMMC Program over 
a ten-year period:
[GRAPHIC] [TIFF OMITTED] TP26DE23.030

Alternatives

    DoD considered and adopted several alternatives during the 
development of this rule that reduce the burden on defense contractors 
and still meet the objectives of the rule. These alternatives include: 
(1) maintaining status quo and leveraging only the current requirements 
implemented in DFARS provision 252.204-7019 and DFARS clause 252.204-
7020 requiring defense contractors and offerors to self-assess 
utilizing the DoD Assessment Methodology and entering a Basic Summary 
Score; (2) revising CMMC to reduce the burden for small businesses and 
contractors who do not process, store, or transmit critical CUI by 
eliminating the requirement to hire a C3PAO and instead allow self-
assessment with affirmation to maintain compliance at CMMC Level 1, and 
allowing triennial self-assessment with an annual affirmation to 
maintain compliance for some CMMC Level 2 programs; (3) exempting 
contracts and orders exclusively for the acquisition of commercially 
available off-the-shelf items; and (4) implementing a phased 
implementation for CMMC.
    In addition, the Department took into consideration the timing of 
the requirement to achieve a specified CMMC level: (1) at time of 
proposal or offer submission, (2) after contract award, (3) at the time 
of contract award, or (4) permitting government Program Managers to 
seek approval to waive inclusion of CMMC requirements in solicitations 
that involve disclosure or

[[Page 89101]]

creation of FCI or CUI as part of the contract effort. Such waivers 
will be requested and approved by DoD in accordance with internal 
policies, procedures, and approval requirements. The Department 
ultimately adopted alternatives 3 and 4. The drawback of alternative 1 
(at time of proposal or offer submission) is the increased risk for 
contractors since they may not have sufficient time to achieve the 
required CMMC level after the release of the solicitation. The drawback 
of alternative 2 (after contract award) is the increased risk to the 
Department with respect to the costs, program schedule, and uncertainty 
in the event the contractor is unable to achieve the required CMMC 
level in a reasonable amount of time given their current cybersecurity 
posture. This potential delay would apply to the entire supply chain 
and prevent the appropriate flow of CUI and FCI. The Department seeks 
public comment on the requirement to achieve a specified CMMC level by 
the time of contract award.

Benefits

    The Department of Defense expects this proposed rule to protect DoD 
and industry from the loss of FCI and CUI, including intellectual 
property. The theft of intellectual property and sensitive unclassified 
information due to malicious cyber activity threatens U.S. economic 
security and national security. In 2010, the Commander of the U.S. 
Cyber Command and Director of the National Security Agency estimated 
the value of U.S. intellectual property to be $5 trillion and that $300 
billion is stolen over networks annually \46\. The 2013 Intellectual 
Property Commission Report provided concurrence and noted that the 
ongoing theft represents ``the greatest transfer of wealth in 
history.'' The report also highlighted the challenges of generating an 
exact figure because Government and private studies tend to understate 
the impacts due to inadequate data or scope, which is evidenced in 
subsequent analyses.\47\
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    \46\ https://www.govinfo.gov/content/pkg/CHRG-113hhrg86391/html/CHRG-113hhrg86391.htm.
    \47\ https://www.nbr.org/program/commission-on-the-theft-of-intellectual-property/.
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    The responsibility of federal agencies to protect FCI or CUI does 
not change when such information is shared with defense contractors. A 
comparable level of protection is needed when FCI or CUI is processed, 
stored, or transmitted on contractor information systems.\48\ The 
protection of FCI, CUI, and intellectual property on defense contractor 
systems can directly impact the ability of the federal government to 
successfully conduct its essential missions and functions.\49\
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    \48\ https://www.cybernc.us/fci-cui/.
    \49\ GAO Report to Congress, Defense Contractor Cybersecurity 
Stakeholder Communication and Performance Goals Could Improve 
Certification Framework, Dec. 2021.
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    Malicious cyber actors have targeted and continue to target the DIB 
sector that consists of approximately 220,000 small-to-large sized 
entities that support the warfighter. In particular, actors ranging 
from cyber criminals to nation-states continue to attack companies and 
organizations that comprise the Department's multi-tier supply chain 
including smaller entities at the lower tiers. From at least January 
2020, through February 2022, the Federal Bureau of Investigation (FBI), 
National Security Agency (NSA), and Cybersecurity and Infrastructure 
Security Agency (CISA) observed regular targeting of U.S. cleared 
defense contractors (CDCs) by Russian state-sponsored cyber actors. The 
actors have targeted sensitive, unclassified information, as well as 
proprietary and export-controlled technology. The acquired information 
provides significant insight into U.S. weapons platforms development 
and deployment timelines, vehicle specifications, and plans for 
communications infrastructure and IT. By acquiring proprietary internal 
documents and email communications, adversaries may be able to adjust 
their own military plans and priorities, hasten technological 
development efforts, inform foreign policymakers of U.S. intentions, 
and target potential sources for recruitment.\50\
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    \50\ https://www.cisa.gov/news-events/cybersecurity-advisories/aa22-047a.
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    In addition to stealing intellectual property for military gains, 
Russia may conduct cyber-attacks against the U.S. for retaliatory 
purposes. On March 21, 2022, that the Biden-Harris Administration 
stated intelligence indicates that the Russian Government and Russian-
aligned cybercrime groups have threatened to conduct cyber operations 
in retaliation for perceived cyber offensives against the Russian 
Government or the Russian people.\51\
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    \51\ https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/21/statement-by-president-biden-on-our-nations-cybersecurity/.
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    The aggregate loss of intellectual property and CUI from the DoD 
supply chain severely undercuts U.S. technical advantage, limits, and 
disrupts business opportunities associated with technological 
superiority, and ultimately threatens our national defenses and 
economy. By incorporating heightened cybersecurity into acquisition 
programs, the CMMC Program provides the Department assurance that 
contractors and subcontractors are meeting DoD's cybersecurity 
requirements and provides a key mechanism to adapt to an evolving 
threat landscape. This is critically important to the Department 
because defense contractors are the target of increasingly frequent and 
complex cyberattacks by adversaries and non-state actors. Dynamically 
enhancing DIB cybersecurity to meet these evolving threats and 
safeguarding the information that supports and enables our warfighters 
is a top priority for the Department. The CMMC Program is a key 
component of the Department's DIB cybersecurity effort.
    CMMC provides uniform and improved DoD cybersecurity requirements 
in three (3) levels, using the security requirements in NIST SP 800-171 
and NIST SP 800-172. With this rule, the Department is publishing 
supplemental guidance documents to assist the public and in particular, 
small businesses, with CMMC implementation, increasing the likelihood 
of successful implementation and strengthening cybersecurity across the 
DIB. CMMC decreases the burden and cost on companies protecting FCI by 
allowing all companies at Level 1, and a subset of companies at Level 
2, to demonstrate compliance through self-assessments. CMMC allows 
companies, under certain limited circumstances, to make a Plan of 
Action & Milestones (POA&M) to provide additional time to achieve final 
certification assessment. These key updates to CMMC benefit the DoD and 
our national interest by providing:
     improved safeguarding of competitive advantages through 
requirements flow-down to the defense contractor supply chain and 
protections for proprietary information and capabilities, and
     increased efficiency in the economy and private markets as 
a result of the streamlining of cybersecurity requirements, the 
resulting improvements in cybersecurity, and accountability across the 
supply chain.
    In summary, the CMMC Program enforces and validates implementation 
of DoD's required cyber protection standards for companies in the DIB, 
preserving U.S. technical advantage. In addition, CMMC increases 
security for the most sensitive unclassified information by applying 
additional requirements. Implementation of CMMC will help protect DoD's 
sensitive unclassified information upon which DoD systems and critical 
infrastructure rely, making it vital to national security.

[[Page 89102]]

CMMC is focused on securing the Department's supply chain, including 
the smallest, most vulnerable innovative companies. The security risks 
that result from the significant loss of FCI and CUI, including 
intellectual property and proprietary data, make implementation of the 
CMMC Program vital, practical, and in the public interest.

III. Regulatory Compliance Analysis

A. Executive Order 12866, ``Regulatory Planning and Review'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review''

    These Executive Orders direct agencies to assess all costs, 
benefits, and available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health, safety 
effects, distributive impacts, and equity). These Executive Orders 
emphasize the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. The 
Office of Management and Budget (OMB) has determined this proposed rule 
is significant as defined by Section 3(f)(1) for purposes of Executive 
Order 12866.

B. Congressional Review Act (5 U.S.C. 801 et seq.)

    As defined by 5 U.S.C. 804(2), a major rule is a rule that the 
Administrator of the Office of Information and Regulatory Affairs of 
the Office of Management and Budget finds has resulted in or is likely 
to result in--(a) an annual effect on the economy of $100,000,000 or 
more; (b) a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; or (c) significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based enterprises to compete with foreign-based enterprises in 
domestic and export markets. This rule has been designated a major rule 
as it is expected to have annual effect on the economy of $100M dollars 
or more.

C. Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    The Department of Defense Chief Information Officer certified that 
this rule is subject to the Regulatory Flexibility Act (5 U.S.C. 601) 
because it would, if promulgated, have a significant economic impact on 
a substantial number of small entities.
    DoD has considered previous comments from Small Business 
Administration (SBA) regarding the impact and cost to small businesses 
to implement CMMC. In July 2022, the CMMC PMO met with the Office of 
Advocacy for the U.S. SBA to address the revisions planned in CMMC that 
are responsive to prior SBA concerns, with which the SBA was satisfied.
    An Initial Regulatory Flexibility Analysis that includes a detailed 
discussion and explanation about the assumptions and methodology used 
to estimate the cost of this regulatory action on small entities 
follows and is available at https://www.regulations.gov (search for 
``DoD-2023-OS-0063'' click ``Open Docket'' and view ``Supporting 
Documents'').
    This initial regulatory flexibility analysis has been prepared 
consistent with 5 U.S.C. 603.
(1) Reasons for the Action
    This proposed rule is necessary to create a secure and resilient 
supply chain, by addressing threats to the U.S. economy and national 
security from ongoing malicious cyber activities and preventing theft 
of hundreds of billions of dollars of U.S. intellectual property. The 
President's Executive Order (E.O.) 14028, ``Improving the Nation's 
Cybersecurity,'' \52\ emphasized that industrial security needs 
strengthening to ensure investments are not lost through intellectual 
property theft, among other supply chain risks.
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    \52\ https://www.gsa.gov/technology/it-contract-vehicles-and-purchasing-programs/technology-products-services/it-security/executive-order-14028?gclid=CjwKCAjwrranBhAEEiwAzbhNtbkRN9aYRpHsrVE6jJroenQW0tC_DGtCLYch8KBJ_f5dny_LtBNziBoCukIQAvD_BwE.
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    Currently, the FAR and DFARS prescribe contract clauses intended to 
protect FCI and CUI within the DoD supply chain. Specifically, the 
clause at FAR 52.204-21, Basic Safeguarding of Covered Contractor 
Information Systems, is prescribed at FAR 4.1903 for use in Government 
solicitations and contracts when the contractor or a subcontractor at 
any tier may have FCI residing in or transiting through its information 
system. The FAR clause focuses on ensuring a basic level of 
cybersecurity hygiene and is reflective of actions that a prudent 
businessperson would employ.
    In addition, DFARS clause 252.204-7012, Safeguarding Covered 
Defense Information and Cyber Incident Reporting, requires defense 
contractors and subcontractors to provide ``adequate security'' to 
process, store or transmit CUI on information systems or networks, and 
to report cyber incidents that affect these systems or networks. The 
clause states that to provide adequate security, the contractor shall 
implement, at a minimum, the security requirements in ``National 
Institute of Standards and Technology (NIST) Special Publication (SP) 
800-171 Rev 2, Protecting CUI in Nonfederal Systems and 
Organizations.'' Contractors are also required to flow down DFARS 
clause 252.204-7012 to all subcontracts that involve CUI.
    However, neither FAR 52.204-21 nor DFARS 252.204-7012, provide for 
DoD verification of a contractor's implementation of basic safeguarding 
requirements specified in FAR 52.204-21 nor the security requirements 
specified in DFARS 252.204-7012 which requires implementation of NIST 
SP 800-171 Rev 2 prior to contract award. Instead, DFARS clause 
252.204-7012 requires prospective contractors or subcontractors to 
self-attest upon submission of their offer that they have implemented 
or will implement NIST SP 800-171 Rev 2.
    Findings from DoD Inspector General report (DODIG-2019-105 ``Audit 
of Protection of DoD CUI on Contractor-Owned Networks and Systems'') 
indicate that DoD contractors did not consistently implement mandated 
system security requirements for safeguarding CUI and recommended that 
DoD take steps to assess a contractor's ability to protect this 
information. The report emphasizes that malicious actors can exploit 
the vulnerabilities of contractors' networks and systems and exfiltrate 
information related to some of the Nation's most valuable advanced 
defense technologies.
    Due to these shortcomings and the associated risks to national 
security, the Department developed the Cybersecurity Maturity Model 
Certification (CMMC) Program to assess contractor and subcontractor 
implementation of DoD's required cybersecurity standards.
    The Cybersecurity Maturity Model Certification (CMMC) Program 
verifies compliance with DoD cyber protection standards by defense 
contractors and subcontractors. It is designed to protect sensitive 
unclassified information that is shared by the Department with its 
contractors and subcontractors. The program incorporates a set of 
cybersecurity requirements into acquisition contracts and provides the 
Department increased assurance that contractors and subcontractors are 
meeting these requirements. The CMMC Program has three key features:
     Tiered Model: CMMC requires that companies implement 
cybersecurity requirements at progressively advanced levels, depending 
on the type and sensitivity of the information. The

[[Page 89103]]

program also sets forth the process for information flow down to 
subcontractors.
     Assessment Requirement: CMMC assessments allow the 
Department to verify the implementation of cybersecurity requirements.
     Implementation through Contracts: Once CMMC is fully 
implemented, certain DoD contractors that handle sensitive unclassified 
DoD information will be required to achieve a particular CMMC level as 
a condition of contract award.
    In September 2020, the DoD published an interim DFARS rule in the 
Federal Register (DFARS Case 2019-D041) that implemented the DoD's 
initial vision for the CMMC Program (``CMMC 1.0'') and outlined the 
basic features of the program (tiered model, required assessments, and 
implementation through contracts). The interim rule became effective on 
November 30, 2020.
    In March 2021, the Department initiated an internal review of 
CMMC's implementation, informed by more than 750 public comments in 
response to the interim DFARS rule. This comprehensive, programmatic 
assessment engaged cybersecurity and acquisition leaders within DoD to 
refine policy and program implementation.
    In November 2021, the Department announced ``CMMC 2.0,'' which is 
an updated program structure and revised requirements designed to 
achieve the primary goals of an internal DoD review of the CMMC 
Program. With the implementation of CMMC 2.0, the Department introduced 
several key changes that build on and refine the original program 
requirements. These include:
     Streamlining the model from five levels to three levels.
     Exclusively implementing National Institute of Standards 
and Technology (NIST) cybersecurity guidelines.
     Allowing all companies at Level 1 and a subset of 
companies at Level 2 to demonstrate compliance through self-
assessments.
     Increased oversight of professional and ethical standards 
of third-party assessors.
     Allowing companies, under limited circumstances, to make 
Plan of Action & Milestones (POA&M) to achieve certification.
    In July 2022, the CMMC PMO met with the Office of Advocacy for the 
U.S. SBA to address the revisions planned in CMMC 2.0 that are 
responsive to prior SBA concerns. As a result of the alignment of CMMC 
2.0 to NIST guidelines, the Department's requirements will continue to 
evolve as changes are made to the underlying NIST SP 800-171 Rev 2 and 
NIST SP 800-172 requirements.
(2) Objectives of, and Legal Basis for, the Rule
    Legal Basis: 5 U.S.C. 301; Sec. 1648, Public Law 116-92, 133 Stat. 
1198.
    The objective of this proposed rule (CMMC Program rule) is to 
provide the Department with increased assurance that a defense 
contractor can adequately protect sensitive unclassified information 
commensurate with the risk, accounting for information flow down to its 
subcontractors in a multi-tier supply chain. This rule meets the 
objective by providing a mechanism to assess contractor and 
subcontractor implementation of DoD's cyber security protection 
requirements for FCI and CUI. Implementation of the CMMC Program is 
intended to address the following policy issues:
(a) Verification of a Contractor's Cybersecurity Posture
    Effective June 2016, FAR clause 52.204-21 Basic Safeguarding of 
Contractor Information Systems, requires federal contractors and 
subcontractors to implement 15 basic cyber hygiene requirements, as 
applicable, to protect contractor information systems that process, 
store, or transmit FCI.
    December 31, 2017, was DoD's deadline for contractors to implement, 
as applicable, the cybersecurity protection requirements set forth in 
NIST SP 800-171 Rev 2, Protecting Controlled Unclassified Information 
in Nonfederal Systems and Organizations, in accordance with DFARS 
clause 252.204-7012, Safeguarding Covered Defense Information and Cyber 
Incident Reporting. The current NIST 800-171A Assessment Guide states, 
``For the CUI security requirements in NIST Special Publication 800-171 
Rev 2, nonfederal organizations describe in a system security plan, how 
the specified requirements are met or how organizations plan to meet 
the requirements [in a Plan of Action].'' \53\ NIST's process provides 
contractors with a tool to assess their security posture and decide if 
or when to mitigate the risks based upon the organizational risk 
tolerance. As such, a contractor could be compliant with NIST SP 800-
171 Rev 2 if some of NIST SP 800-171 Rev 2 requirements are implemented 
but others are listed in a Plan of Action. As a result, at present, 
defense contractors and subcontractors can process, store, or transmit 
CUI without having implemented all security requirements set forth in 
NIST SP 800-171 Rev 2 and without establishing concrete, prompt, and 
enforceable timelines for addressing shortfalls and gaps documented in 
the Plan of Action.
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    \53\ https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-171A.pdf.
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    Findings from DoD Inspector General report (DODIG-2019-105 ``Audit 
of Protection of DoD Controlled Unclassified Information on Contractor-
Owned Networks and Systems'') indicated that DoD contractors did not 
consistently implement mandated system security requirements for 
safeguarding CUI and recommended that DoD take steps to assess a 
contractor's ability to protect this information.
    CMMC adds a third-party assessment requirement, as applicable, to 
verify defense contractors and subcontractors have implemented the 
required security requirements prior to award. CMMC also adds 
affirmation processes at every CMMC level requiring contractors and 
subcontractors to attest to compliance with CMMC's security 
requirements and then provide annual affirmations thereafter.
(b) Comprehensive Implementation of Cybersecurity Requirements
    Although the security requirements in NIST SP 800-171 Rev 2 address 
a range of threats, they do not sufficiently address Advanced 
Persistent Threats (APTs). An APT is an adversary that possesses 
sophisticated levels of expertise and significant resources, which 
allow it to create opportunities to achieve its objectives by using 
multiple attack vectors (e.g., cyber, physical, and deception). To 
address APTs, NIST has published NIST SP 800-172, Enhanced Security 
Requirements for Protecting Controlled Unclassified Information: A 
Supplement to NIST Special Publication 800-171 Rev 2. CMMC Level 3 
provides for government assessment of a contractor's implementation of 
a defined subset of NIST SP 800-172 Enhanced Security Requirements with 
DoD predefined parameters and specifications.
(c) Scale and Depth
    Today, DoD prime contractors must include DFARS clause 252.204-7012 
in subcontracts for which performance will involve covered defense 
information, but this does not provide the Department with sufficient 
insights with respect to the cybersecurity posture of all members of a 
multi-tier supply chain for any given program or technology development 
effort. CMMC 2.0 requires prime contractors to flow down

[[Page 89104]]

appropriate CMMC Level requirements, as applicable, to subcontractors 
throughout their supply chain(s).
    Given the size and scale of the DIB, the Department cannot scale 
its existing cybersecurity assessment capability to conduct on-site 
assessments of approximately 220,000 DoD contractors and subcontractors 
every three years. The Department's existing assessment capability is 
best suited for conducting targeted assessments for the relatively 
small subset of DoD contractors and subcontractors that support 
designated high-priority programs involving CUI.
    CMMC addresses the Department's scaling challenges by utilizing a 
private-sector accreditation structure. A DoD-authorized Accreditation 
Body will authorize, accredit, and provide oversight of C3PAOs which in 
turn will conduct CMMC Level 2 Certification Assessments of actual and 
prospective DoD contractors and subcontractors. OSCs will directly 
contract with an authorized or accredited C3PAO to obtain a CMMC 
Certification Assessment. The cost of CMMC Level 2 activities is driven 
by multiple factors, including market forces that govern availability 
of C3PAOs and the size and complexity of the enterprise or enclave 
under assessment. The Government will perform CMMC Level 3 
Certification Assessments. Government resource limitations may affect 
schedule availability.
(d) Reduces Duplicate or Repetitive Assessments of Our Industry 
Partners
    CMMC assessment results and contractor affirmations of compliance 
will be posted in the Supplier Performance Risk System (SPRS), DoD's 
authoritative source for supplier and product performance information. 
Posting CMMC assessment results in SPRS precludes the need to validate 
CMMC implementation on a contract-by-contract basis. This enables DoD 
to identify whether the CMMC assessment requirements have been met for 
relevant contractor information system(s), avoids duplicative 
assessments, and eliminates the need for program level assessments, all 
of which decreases costs to both DoD and industry.
(3) Anticipated Benefits and Costs
(a) Benefits
    The CMMC Program validates implementation of DoD's required cyber 
protection standards for companies in the DIB. Furthermore, this rule 
benefits the efficient functioning of the economy and private markets 
for all sizes of companies, including the smallest, most vulnerable 
companies, by: (1) protecting DoD from the loss of FCI and CUI; (2) 
promoting improvements in cybersecurity and accountability across DoD 
supply chains; (3) promoting continued innovation by helping to prevent 
significant loss of revenue, benefits, and jobs to the companies 
involved in developing those innovations for DoD; (4) promoting U.S. 
technical advantage and superiority; and (5) improving the safeguarding 
of competitive advantages and protections for proprietary information 
and capabilities through requirements flow-down throughout the defense 
contractor supply chain.
(b) Costs
    A Regulatory Impact Analysis (RIA) that includes a detailed 
discussion and explanation about the assumptions and methodology used 
to estimate the cost of this regulatory action is available at 
www.regulations.gov (search for ``DoD-2023-OS-0063'' click ``Open 
Docket'' and view ``Supporting Documents''). The total estimated Public 
(large and small entities) and Government costs associated with this 
rule, calculated in over a 20-year horizon in 2023 dollars at a 7 
percent discount rate and a 3 percent discount rate are provided as 
follows:
BILLING CODE 6001-FR-P
[GRAPHIC] [TIFF OMITTED] TP26DE23.031

[GRAPHIC] [TIFF OMITTED] TP26DE23.032

    The following shows the estimated number of small entities \54\ 
anticipated to pursue compliance or certification, at each CMMC level, 
over a phased implementation. These estimates were generated based upon 
prior year procurement data.
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    \54\ Small entities are small business concerns.

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[[Page 89105]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.033

    The following is a summary of the estimated public costs of CMMC 
for small entities, per assessment of each contractor information 
system, at the required periodicity for each CMMC level.
[GRAPHIC] [TIFF OMITTED] TP26DE23.034

    The following estimates are Small Entity Public and Government 
costs for CMMC requirements calculated over a 20-year horizon in 2023 
dollars at a 7 percent discount rate.

[[Page 89106]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.035

BILLING CODE 6001-FR-C
(4) Small Business Entities Impacted
    This rule will impact small businesses that do business with the 
Department of Defense as a prime or subcontractor, except for contracts 
or orders that are exclusively for COTS items or valued at or below the 
micro-purchase threshold.
    According to the Federal Procurement Data System (FPDS) there is an 
annual average of 30,145 unique small business contractors in DoD: FY 
2019 (31,189), FY 2020 (29,166), FY 2021 (27,427) and FY 2022 (32,798).
Cost Assumptions and Analysis for CMMC 2.0
    Complete details on CMMC requirements and associated costs, 
savings, and benefits of this rule are provided in the Regulatory 
Impact Analysis referenced in the Preamble. Key components of CMMC 
Program requirements are described in 32 CFR Subpart D.
(a) Comparison to CMMC 1.0 Cost Analysis
    Public comment feedback on CMMC 1.0 indicated that cost estimates 
were too low. CMMC 2.0 cost estimates account for that feedback with 
the following improvements:

 Allowance for outsourced IT services
 Increased total time for the contractor to prepare for the 
assessment, including limited time for learning the reporting and 
affirmation processes
 Allowance for use of consulting firms to assist with the 
assessment process
 Time for a senior level manager to review the assessment and 
affirmation before submitting the results into SPRS
 Updated government and contractor labor rates that include 
applicable burden costs
    As a result, some CMMC 2.0 costs may be higher than those included 
in CMMC 1.0.
(b) Assumptions for CMMC 2.0 Cost Analysis
    In estimating the public cost for a small defense contractor to 
achieve CMMC compliance or certification at each CMMC level, DoD 
considered non-recurring engineering costs, recurring engineering 
costs, assessment costs, and affirmation costs for each CMMC Level. 
These costs include labor and consulting.
    Estimates include size and complexity assumptions to account for 
typical organizational differences between small companies and others 
with respect to the handling of Information Technology (IT) and 
cybersecurity:

 small entities are likely to have a less complex, less 
expansive operating environment and IT/Cybersecurity infrastructure 
compared to larger defense contractors
 small entities are likely to outsource IT and cybersecurity to 
an External Service Provider (ESP)
 entities (small and other than small) pursuing CMMC Level 2 
Self-Assessment are likely to seek consulting or implementation 
assistance from an ESP to either help them prepare for the assessment 
technically or participate in the assessment with the C3PAOs.

    Estimates do not include implementation (Non-recurring Engineering 
Costs (NRE)) or maintenance costs (Recurring Engineering (RE) \55\) for 
requirements prescribed in current regulations.
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    \55\ The terms nonrecurring engineering costs and recurring 
engineering costs are terms of art and do not only encompass actual 
engineering costs.
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    For CMMC Levels 1 and 2, cost estimates are based upon assessment, 
reporting, and affirmation activities which a contractor will take to 
validate conformance with existing cybersecurity requirements from the 
FAR clause 52.204-21, effective June 15, 2016, to protect FCI, and the 
DFARS clause 252.204-7012 which required implementation of NIST SP 800-
171 Rev 2 not later than December 31, 2017, to protect CUI. As such, 
cost estimates are not included for an entity to implement the CMMC 
Level 1 or 2 security requirements, maintain compliance with current 
security requirements, or remediate a Plan of Action for unimplemented 
requirements.
    For CMMC Level 3, the cost estimates factor in the assessment, 
reporting, and affirmation activities in addition to estimates for NRE 
and RE to implement and maintain CMMC Level 3 security requirements. 
CMMC Level 3 security requirements are a selection of NIST SP 800-172 
Enhanced Security Requirements as described in 32 CFR 170.14(c)(4) and 
are not currently required through other regulations. DoD expects that 
CMMC Level 3 will apply only to a small subset of defense contractors 
and subcontractors.
    The Cost Categories used for each CMMC Level are described:
     Nonrecurring Engineering Costs: Estimates consist of 
hardware, software, and the associated labor to implement the same. 
Costs associated with implementing the requirements defined in FAR 
52.204-21 and NIST SP 800-171 Rev 2 are assumed to have been 
implemented and, therefore, are not accounted for in this cost 
estimate. As such, these costs only appear in CMMC Level 3. If 
nonrecurring engineering costs are referenced, they are only accounted 
for as a one-time occurrence and are reflected in the year of the 
initial assessment.
     Recurring Engineering Costs: Estimates consist of annually 
recurring fees and associated labor for technology refresh. Costs 
associated with implementing the requirements defined in FAR 52.204-21 
and NIST SP 800-171 Rev 2 are assumed to have been implemented and, 
therefore, are not accounted for in this cost estimate. As such, these 
costs only appear in CMMC Level 3.
     Assessment Costs: Estimates consist of activities for pre-
assessment preparations (which includes gathering and/or developing 
evidence that the assessment objectives for each requirement have been 
satisfied), conducting and/or participating in the actual assessment, 
and completion of any post-assessment work. Assessment costs are 
represented by notional phases. Assessment costs assume the company 
passes the assessment on the first attempt (conditional--with an 
allowable POA&M or final). Each phase includes an estimate of hours to 
conduct the assessment activities including:

[[Page 89107]]

(c) Labor Hour Estimates for a Company (and any ESP Support) To Prepare 
for and Participate in the Assessment
(d) C3PAO Cost Estimates for Companies Pursuing a Certification
     Labor hour estimates for certified or authorized assessors 
to work with the small business to conduct the actual assessment.
(e) Assessment Costs Broken Down Into Phases
     Phase 1: Planning and preparing for the assessment.
     Phase 2: Conducting the assessment (self or C3PAO).
     Phase 3: Reporting of Assessment Results.
     Phase 4: POA&M Closeout (for CMMC Level 3 only, where 
allowed, if applicable).
     CMMC allows a limited open Plan of Action and Milestones 
(POA&M) for a period of 180 days to remediate the POA&M, see 32 CFR 
170.21.
    Affirmations: Estimates consist of costs for a contractor or 
subcontractor to submit to SPRS an initial affirmation of compliance 
that the contractor information system is compliant with and will 
maintain compliance with the requirements of the applicable CMMC Level. 
If POA&Ms are allowed, an affirmation must be submitted with the POA&M 
closeout. With the exception of Small Entities for Level 1 and Level 2, 
it is assumed the task requires the same labor categories and estimated 
hours as the final reporting phase of the assessment.
    The categories and rates used for estimating purposes were compiled 
by subject matter experts based on comparable industry data and are 
defined in the table.
[GRAPHIC] [TIFF OMITTED] TP26DE23.036

(c) Cost Analysis/Estimates by CMMC Level
---------------------------------------------------------------------------

    \56\ IT = Information Technology, MGMT = Management.
    \57\ IT and MGMT rates represent an estimate for in-house labor 
and includes the labor rate plus fringe expenses.
    \58\ Background assumes a Bachelor's degree as the minimum 
education level, additional requirements are noted including 
required years of experience. A Master's degree may reduce the 
required years of experience as noted.
    \59\ The ESP/C3PAO rate represents an estimate for outsourced 
labor and includes the labor rate, overhead expense, G&A expense, 
and profit.
---------------------------------------------------------------------------

CMMC Level 1 Self-Assessment and Affirmation Costs for Small Business 
Entities
     Nonrecurring and recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
1 since it is assumed the contractor or subcontractor has already 
implemented the basic safeguarding requirements set forth in FAR 
52.204-21, which are the CMMC Level 1 security requirements.
     Self-Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 1 assessment and 
affirmation is *$5,977 (as summarized in Table 1) A Level I Self-
Assessment is conducted annually, and is based on the assumptions 
detailed:

 Phase 1: Planning and preparing for the assessment: $1,803
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     An external service provider (ESP) for 4 hours ($260.28 x 
4hrs = $1,041)
 Phase 2: Conducting the self-assessment: $2,705
     A director (MGMT5) for 6 hours ($190.52/hr x 6hrs = 
$1,143)
     An external service provider (ESP) for 6 hours ($260.28 x 
6hrs = $1,562)
 Phase 3: Reporting of Assessment Results into SPRS: $909
     A director (MGMT5) for 2 hours ($190.52/hr x 2hrs = $381)
     An external service provider (ESP) for 2 hours ($260.28/hr 
* 2hrs = $521)
     A staff IT specialist (IT4-SB) for 0.08 hours \60\ 
($86.24/hr x 0.08hrs = $7)
---------------------------------------------------------------------------

    \60\ A person needs to enter the information into SPRS, which 
should only take five minutes.
---------------------------------------------------------------------------

 Affirmation: initial affirmation post assessment: $560
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level I annually for a small entity is $560
     A director (MGMT5) for 2 hours ($190.52/hr x 2hrs = $381)
     A staff IT specialist (IT4-SB) for 2.08 hours ($86.24/hr x 
2.08hrs = $179)

     The Level 1 Self-Assessment and Affirmations cost burden 
will be addressed as part of the 48 CFR acquisition rule.
     Summary: The following is the annual small entities total 
cost summary for CMMC Level 1 self-assessments and affirmations over a 
ten-year period:

[[Page 89108]]

(Example calculation, Year 1: *$5,977 per entity x 699 entities 
(cumulative) = $4,177,845).
[GRAPHIC] [TIFF OMITTED] TP26DE23.037

CMMC Level 2 Self-Assessment and Affirmation Costs for Small Business 
Entities
    The costs account for a CMMC Level 2 Self-Assessment of the 
applicable contractor information system(s) with NIST SP 800-171 Rev 2 
requirements based on assumptions defined.
     Nonrecurring and recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with a CMMC 
Level 2 Self-Assessment since it is assumed the contractor or 
subcontractor has implemented the NIST SP 800-171 Rev 2 security 
requirements.
     Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 2 self-assessment and 
affirmation for a small entity is *$34,277. The three-year cost is 
$37,196 (as summarized in 4.1.2, Table 2), which includes the triennial 
assessment + affirmation, plus two additional annual affirmations 
($34,277 + $1,459 + $1,459).
 Phase 1: Planning and preparing for the self-assessment: 
$14,426
     A director (MGMT5) for 32 hours ($190.52/hr x* 32hrs = 
$6,097)
     An external service provider (ESP) for 32 hours ($260.28/
hr x 32hrs = $8,329)
 Phase 2: Conducting the self-assessment: $15,542
     A director (MGMT5) for 16 hours ($190.52/hr x 16hrs = 
$3,048)
     An external service provider (ESP) for 48 hours ($260.28/
hr x 48hrs = $12,493)
 Phase 3: Reporting of assessment results: $2,851
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     An external service provider (ESP) for 8 hours ($260.28/hr 
x 8hrs = $2,082)
     A staff IT specialist (IT4-SB) for 0.08 hours ($86.24/hr x 
0.08hrs = $7)
 Affirmation--initial affirmation post assessment: $1,459
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 2 Self-Assessment annually is $1,459 (three-year costs to 
reaffirm a CMMC Level 2 Self-Assessment annually is $4,377, or $1,459 x 
3):
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A staff IT specialist (IT4-SB) for 8.08 hours ($86.24/hr x 
8.08hrs = $697)
     The Level 2 Self-Assessment and Affirmations cost burden 
will be addressed as part of the 48 CFR acquisition rule.
     Summary: The following is the annual small entities total 
cost summary for CMMC Level 2 Self-Assessments and Affirmations over a 
ten-year period: (Example calculation, Year 2: (*$34,277 self-
assessment per entity x 101 entities) + ($1,459 annual affirmation per 
entity x 20 entities) = $3,491,193).

[[Page 89109]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.038

CMMC Level 2 Certification and Affirmation Costs for Small Business 
Entities
    The costs account for a CMMC Level 2 Certification assessment and 
affirmation costs of the applicable contractor information system(s) 
with NIST SP 800-171 Rev 2 requirements based on the assumptions 
defined. CMMC Level 2 certification assessments require hiring a C3PAO 
to perform the assessment.
     Nonrecurring or recurring engineering costs: There are no 
nonrecurring or recurring engineering costs associated with CMMC Level 
2 C3PAO Certification since it is assumed the contractor has 
implemented NIST SP 800-171 Rev 2 requirements.
     Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 2 C3PAO Certification 
and affirmation for a small entity is *$101,752. The three-year cost is 
$104,670 (as summarized in section 3(b), Table 1), and includes the 
triennial assessment + affirmation plus two additional annual 
affirmations ($101,752 + $1,459 + $1,459).

 Phase 1: Planning and preparing for the assessment: $20,699
     A director (MGMT5) for 54 hours ($190.52/hr x 54hrs = 
$10,288)
     An external service provider (ESP) for 40 hours ($260.28/
hr x 40hrs = $10,411)
 Phase 2: Conducting the C3PAO assessment: $45,509
     A director (MGMT5) for 64 hours ($190.52/hr x 64hrs = 
$12,193)
     An external service provider (ESP) for 128 hours ($260.28/
hr x 128hrs = $33,316)
 Phase 3: Reporting of C3PAO Assessment Results: $2,851
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     An external service provider (ESP) for 8 hours ($260.28/hr 
x 8hrs = $2,082)
     A staff IT specialist (IT4-SB) for 0.08 hours ($86.24/hr x 
0.08hrs = $7)
 Affirmation--initial affirmation post assessment: $1,459
 C3PAO Costs: C3PAO engagement inclusive of Phases 1, 2, and 3 
(3-person team) for 120 hours ($260.28/hr x 120hrs = $31,234)
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 2 C3PAO Assessment annually is $1,459 (three-year cost is 
$4,377, or $1,459 x 3)
     A director (MGMT5) for 4 hours ($190.52/hr x 4hrs = $762)
     A staff IT specialist (IT4-SB) for 8.08 hours ($86.24/hr x 
8.08hrs = $697)

     The Level 2 Affirmations cost burden will be addressed as 
part of the 48 CFR acquisition rule.
     Summary: The following is the annual small entities total 
cost summary for CMMC Level 2 Certifications and Affirmations over a 
ten-year period: (Example calculation, Year 2: (*$101,752 assessment 
per entity x 1,926 entities) + ($1,459 annual affirmation per entity x 
382 entities) = $196,531,451).

[[Page 89110]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.039

CMMC Level 3 Certification and Affirmation Costs for Small Business 
Entities
    A company pursuing a Level 3 Certification must have an active, 
final CMMC Level 2 Certification, and also must demonstrate compliance 
with CMMC Level 3, which includes implementation of a subset of 
security requirements from NIST SP 800-172 that have DoD predefined 
selections and parameters. CMMC Level 3 requires compliance with 
certain security requirements not required in prior rules. Therefore, 
the Nonrecurring Engineering and Recurring Engineering cost estimates 
have been included for the initial implementation and maintenance of 
the required subset of NIST SP 800-172 requirements. The cost estimates 
account for time for a contractor or subcontractor to implement these 
security requirements and prepare for, support, and participate in a 
CMMC Level 3 assessment conducted by DoD. The company should keep in 
mind that the total cost of a Level 3 certification includes the cost 
of a Level 2 C3PAO assessment as well as the cost to implement and 
assess the requirements specific to Level 3. CMMC Level 3 is expected 
to affect a small subset of the DIB.
    The estimated engineering costs per small entity associated with 
CMMC Level 3.
     Nonrecurring Engineering Costs: $2,700,000.
     Recurring Engineering Costs: $490,000.
     Assessment Costs and Initial Affirmation Costs: It is 
estimated that the cost to support a CMMC Level 3 C3PAO Certification 
for a small entity is *$9,050 The three-year cost is $12,802 
(summarized in 4.1.2, Table 2), and includes the triennial assessment + 
affirmation, plus two additional annual affirmations ($9,050 + $1,876 + 
$1,876):

 Phase 1: Planning and preparing for the Level 3 assessment: 
$1,905
     A director (MGMT5) for 10 hours ($190.52/hr x 10hrs = 
$1,905)
 Phase 2: Conducting the Level 3 assessment: $1,524
     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
 Phase 3: Reporting of Level 3 assessment results: $1,876
     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
     A staff IT specialist (IT4-SB) for 4.08 hours ($86.24/hr x 
4.08hrs = $352)
 Phase 4: Remediation (for CMMC Level 3 if necessary and 
allowed): $1,869
     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
     A staff IT specialist (IT4-SB) for 48 hours ($86.24/hr x 
48hrs = $345)
 Affirmation--initial affirmation post assessment: $1,876
 Reaffirmations: It is estimated that the costs to reaffirm a 
CMMC Level 3 Assessment annually is $1,876 (three-year cost is $5,628, 
or $1,876 x 3)
     A director (MGMT5) for 8 hours ($190.52/hr x 8hrs = 
$1,524)
     A staff IT specialist (IT4-SB) for 4.08 hours ($86.24/hr x 
4.08hrs = $352)

     The Level 3 Affirmations cost burden will be addressed as 
part of the 48 CFR acquisition rule.
     Summary: The following is the annual small entities total 
cost summary for CMMC Level 3 Certifications and Affirmations over a 
ten-year period. Example calculation, Year 2 (reference per entity 
amounts shown):

 *($9,050 Certification per entity x 45 entities) + ($1,876 
Annual Affirmation per entity x 3 entities) = $412,897, and
 $121,500,000 Nonrecurring Engineering cost ($2,700,000 per 
entity x 45 entities being certified), and
 $23,520,000 Recurring Engineering cost ($490,000 per entity x 
45 entities being certified) + ($490,000 per entity x 3 entities 
performing affirmations)
 $145,432,897 Total Cost = Certification and Affirmation Cost 
($412,897) + Nonrecurring Engineering cost ($121,500,000) + Recurring 
Engineering cost ($23,520,000), or $145,432,897.

[[Page 89111]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.040

    Relevant Federal rules which may duplicate, overlap, or conflict 
with the rule.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules. Rather, this rule allows DoD to validate and verify that 
defense contractors and subcontractors have implemented existing 
cybersecurity requirements set forth in FAR clause 52.204-21 and in the 
NIST SP 800-171 Rev 2, which are intended to protect FCI and CUI during 
contract performance.

D. Sec. 202, Public Law 104-4, ``Unfunded Mandates Reform Act'' (2 
U.S.C. Chapter 25)

    The Unfunded Mandates Reform Act requires agencies to assess 
anticipated costs and benefits before issuing a rule including mandates 
that require the spending of $100M dollars or more in a single year (in 
1995 dollars and updated for inflation) by State, local, or Tribal 
governments, in the aggregate, or by the private sector. This rule's 
impact, if any, on State, local, or Tribal governments, in the 
aggregate, will not exceed $100M dollars or more in a single year, and 
it will not significantly or uniquely affect small governments. This 
rule is expected to have an impact on the private sector of $100M 
dollars or more annually; however, this rule is being published as a 
national security function of the United States as unauthorized 
disclosure of FCI or CUI information to parties outside the Department 
or foreign entities can cause significant harm to the interests of the 
United States. See the regulatory impact section of the preamble for an 
assessment of the costs and benefits for this rule.

E. Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 
35)

    It has been determined that this rule, as proposed, does impose 
reporting or recordkeeping requirements under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (PRA). DoD has submitted an 
information collection request (ICR) proposal to OMB. See the 
Supporting Statements in docket number DoD-2023-OS-0097 for specific 
details and to provide comments on the information collection 
requirements for the CMMC Program. Comments are invited on: (a) whether 
the proposed collections of information are necessary for the proper 
performance of the functions of DoD, including whether the information 
will have practical utility; (b) the accuracy of the estimate of the 
burden of the proposed information collections; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
(d) ways to minimize the burden of the information collections on 
respondents, including the use of automated collection techniques or 
other forms of information technology.

Part A: Estimation of Respondent Burden Hours and Labor Cost

    For purposes of the proposed rule, DoD is proposing several 
separate information collections that will be addressed in the CMMC 
Title 32 Program rule and Title 48 acquisition rule. CMMC Program 
Information Collections and Recordkeeping Requirements are discussed in 
four separate groupings:

(1) CMMC Level 1 Self-Assessment Collection
(2) CMMC Level 2 Self-Assessment Collection
(3) CMMC Level 2 Certification Assessment Collection
(4) CMMC Level 3 Certification Assessment Collection
CMMC Level 1 Self-Assessment Collection
    The Level 1 Self-Assessment information collection reporting and 
recordkeeping requirements will be included in a modification of an 
existing DFARS collection approved under OMB Control Number 0750-0004, 
Assessing Contractor Implementation of Cybersecurity Requirements. 
Modifications to this DFARS collection will be addressed as part of the 
Title 48 acquisition rule. The information collection reporting and 
recordkeeping requirements include:
     OSAs conduct a self-assessment based on NIST guidelines as 
addressed in Sec.  170.15 of this part.

[[Page 89112]]

    This is an assessment to validate implementation of the 15 security 
requirements listed in FAR clause 52.204-21(b)(1).
     OSAs upload assessment results and affirmations in SPRS in 
accordance with Sec.  170.15 and Sec.  170.22 of this part.
CMMC Level 2 Self-Assessment Collection
    The Level 2 Self-Assessment information collection reporting and 
recordkeeping requirements will be included in a modification of an 
existing DFARS collection approved under OMB Control Number 0750-0004, 
Assessing Contractor Implementation of Cybersecurity Requirements. 
Modifications to this DFARS collection will be addressed as part of the 
Title 48 acquisition rule. The information collection reporting and 
recordkeeping requirements include:
    (a) OSAs conduct a self-assessment based on NIST guidelines as 
addressed in Sec.  170.16. This is an assessment to validate 
implementation of the 110 security requirements from NIST SP 800-171 
Rev 2.
    (b) OSAs upload assessment results and affirmations in SPRS in 
accordance with Sec.  170.16 and Sec.  170.22.
    (c) OSAs may have a POA&M at CMMC Level 2 as addressed in Sec.  
170.21(a)(2). OSAs must perform a POA&M closeout self-assessment and 
post compliance results in SPRS in accordance with Sec.  170.16.
CMMC Level 2 Certification Assessment Collection
    The Level 2 Certification Assessment information collection 
reporting and recordkeeping requirements are included in this part with 
the exception of the requirement for the OSC to upload the affirmation 
in SPRS that will be included in the Title 48 acquisition rule and an 
update to the DFARS collection approved under OMB Control Number 0750-
0004, Assessing Contractor Implementation of Cybersecurity 
Requirements. Additionally, the information collection reporting 
requirements for the CMMC instantiation of eMASS are included in a 
separate information collection request (ICR) for this part and cover 
only those requirements pertaining to the CMMC process. The information 
collection reporting requirements for eMASS include:
     The Accreditation Body provides the CMMC PMO with current 
data on C3PAOs, including authorization and accreditation records and 
status using the CMMC instantiation of eMASS as addressed in Sec.  
170.8(b)(9).
     C3PAOs submit pre-assessment and planning material, final 
assessment reports, and appropriate CMMC certificates of assessment 
into the CMMC instantiation of eMASS as addressed in Sec.  170.9(b)(8). 
C3PAOs upload assessment data compliant with the CMMC assessment data 
standard into the CMMC instantiation of eMASS as addressed in Sec.  
170.9(b)(18).
     C3PAOs post POA&M closeout assessment compliance results 
into the CMMC instantiation of eMASS in accordance with Sec.  
170.17(a)(1)(ii)(B) of this part.
     C3PAOs upload artifacts (list of artifacts, hash of 
artifacts, and hashing algorithm used) into the CMMC instantiation of 
eMASS as addressed in Sec.  170.9(b)(18)of this part.
     C3PAOs submit assessment appeals, review records, and 
decision results of assessment appeals using the CMMC instantiation of 
eMASS as addressed in Sec.  170.9(b)(21) of this part.
    Additional information collection reporting and recordkeeping 
requirements for this part include:
     OSCs prepare for assessments based on NIST guidelines as 
addressed in Sec.  170.17.
     C3PAOs conduct assessments based on NIST guidelines as 
addressed in Sec.  170.17.
     This is an assessment to validate implementation of the 
110 security requirements from NIST SP 800-171 Rev 2.
     Prospective C3PAOs must complete and submit the Standard 
Form (SF) 328 Certificate Pertaining to Foreign Interests upon request 
from Defense Counterintelligence and Security Agency (DCSA) (OMB 
Control Number 0704-0579).
     OSCs may have a POA&M at CMMC Level 2 as addressed in 
Sec.  170.21(a)(2). C3PAOs must perform a POA&M closeout assessment.
     OSCs may submit appeals to C3PAOs as addressed in Sec.  
170.9(b)(20).
     The Accreditation Body provides all plans related to 
potential sources of revenue, to include but not limited to: fees, 
licensing, processes, membership, and/or partnerships to the 
Government's CMMC PMOs addressed in Sec.  170.8(b)(13).
     C3PAOs maintain records for a period of six years of 
monitoring, education, training, technical knowledge, skills, 
experience, and authorization of each member of its personnel involved 
in inspection activities; contractual agreements with OSCs and 
organizations for whom consulting services were provided; and working 
papers generated from Level 2 Certification Assessments as addressed in 
Sec.  170.9(b)(10).
     CAICOs maintain records for a period of six (6) years of 
all procedures, processes, and actions related to fulfillment of the 
requirements set forth in Sec.  170.10(b)(9).
     OSCs must retain artifacts used as evidence for the 
assessment for the duration of the validity period of the certificate 
of assessment, and at minimum, for six (6) years from the date of 
certification assessment as addressed in Sec.  170.17(c)(4).
    The public respondent burden and labor cost for the information 
collection reporting and recordkeeping requirements under the CMMC 
Level 2 Certification Assessment are as follows:

    Note: This respondent burden and labor cost does not include the 
requirement for the OSC to upload the affirmation in SPRS (addressed 
in Title 48 acquisition rule and ICR).

[[Page 89113]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.041

     
---------------------------------------------------------------------------

    \62\ Respondent is equivalent to an entity; an entity provides 
one response annually.

---------------------------------------------------------------------------

[[Page 89114]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.042

[[Page 89115]]

     
---------------------------------------------------------------------------

    \63\ Respondent is equivalent to an entity; an entity provides 
one response annually.
---------------------------------------------------------------------------

CMMC Level 3 Certification Assessment Collection
    The Level 3 Certification Assessment information collection 
reporting and recordkeeping requirements are included in this part with 
the exception of the requirement for the OSC to upload the affirmation 
in SPRS that will be included in the Title 48 acquisition rule and an 
update to the DFARS collection approved under OMB Control Number 0750-
0004, Assessing Contractor Implementation of Cybersecurity 
Requirements. Additionally, the information collection reporting 
requirements for the CMMC instantiation of eMASS are included in a 
separate ICR for this part and cover only those requirements pertaining 
to the CMMC process. The information collection reporting requirements 
for eMASS include:
     DCMA DIBCAC submits pre-assessment and planning material, 
final assessment reports, and appropriate CMMC certificates of 
assessment into the CMMC instantiation of eMASS as addressed in Sec.  
170.7 of this part. The DCMA DIBCAC uploads assessment data compliant 
with the CMMC assessment data standard into the CMMC instantiation of 
eMASS as addressed in Sec.  170.7(a)(5) of this part.
     DCMA DIBCAC posts POA&M closeout assessment compliance 
results into the CMMC instantiation of eMASS in accordance with Sec.  
170.18(a)(1)(ii)(B) of this part.
     DCMA DIBCAC uploads artifacts (list of artifacts, hash of 
artifacts, and hashing algorithm used) into the CMMC instantiation of 
eMASS as addressed in Sec.  170.7(a)(5) of this part.
     DCMA DIBCAC submits assessment appeals, review records, 
and decision results of assessment appeals using the CMMC instantiation 
of eMASS as addressed in Sec.  Sec.  170.7(a)(2) and (6) of this part.
     Additional information collection reporting and 
recordkeeping requirements for this part include:
     OSCs prepare for assessment based on NIST guidelines as 
addressed in Sec.  170.18.
     DCMA DIBCAC conducts assessment based on NIST guidelines 
as addressed in Sec.  170.18. This is an assessment to validate 
implementation of 24 selected security requirements from NIST SP 800-
172.
     OSCs may have a POA&M at CMMC Level 3 as addressed in 
Sec.  170.21(a)(3). DCMA DIBCAC must perform a POA&M closeout 
assessment.
     OSCs may submit appeals to DCMA DIBCAC as addressed in 
Sec.  170.7(a)(6).
     OSCs must retain artifacts used as evidence for the 
assessment for the duration of the validity period of the certificate 
of assessment, and at minimum, for six (6) years from the date of 
certification assessment as addressed in Sec.  170.18(c)(4).
     DCMA DIBCAC maintains records for a period of six years of 
monitoring, education, training, technical knowledge, skills, 
experience, and authorization of each member of its personnel involved 
in inspection activities and working papers generated from Level 3 
Certification Assessments.
    The public and government respondent burden and labor cost for the 
information collection reporting and recordkeeping requirements under 
the CMMC Level 3 Certification Assessment are as follows:
---------------------------------------------------------------------------

    \64\ Respondent is equivalent to an entity; an entity provides 
one response annually.
    \65\ The hourly rate was calculated from base rates and 
increased by a factor of approximately 51 percent which includes an 
estimated fringe factor (fringe factor includes estimated average 
insurance and pension benefits) plus overhead (overhead factor 
represents supervision and management of the labor and other daily 
work activities such as recordkeeping).

    Note: This respondent burden and labor cost does not include the 
requirement for the OSC to upload the affirmation in SPRS (addressed 
---------------------------------------------------------------------------
in Title 48 acquisition rule and ICR).

[GRAPHIC] [TIFF OMITTED] TP26DE23.043

[[Page 89116]]

[GRAPHIC] [TIFF OMITTED] TP26DE23.044

     
---------------------------------------------------------------------------

    \66\ Respondent is equivalent to an entity; an entity provides 
one response annually.
[GRAPHIC] [TIFF OMITTED] TP26DE23.045

[[Page 89117]]

Part B: Respondent Costs Other Than Burden Hour Costs
---------------------------------------------------------------------------

    \67\ Each entity has one response annually; the public and the 
government are the respondents at Level 3.
---------------------------------------------------------------------------

    Non-Recurring and Recurring Engineering estimated costs are 
included for Level 3 Certification Assessments. Non-recurring 
Engineering reflects a one-time cost consisting of hardware, software, 
and the associated labor to implement the same. Recurring Engineering 
reflects annually recurring fees and associated labor for technology 
refresh. The estimated amounts are average annual amounts for the 
entity types indicated.
[GRAPHIC] [TIFF OMITTED] TP26DE23.046

Part C: Operational and Maintenance Costs
    Government operational and maintenance costs include the estimate 
to develop the operational CMMC instantiation of eMASS. The estimated 
average annual amount is $2,731,861.
Estimation of Total Public and Government Burden and Cost
[GRAPHIC] [TIFF OMITTED] TP26DE23.047

    Needs and Uses: The CMMC Program provides for the assessment of 
contractor and subcontractor implementation of DoD cybersecurity 
requirements for contractor information systems and enhances the 
protection of FCI and CUI within the DoD supply chain. The CMMC Program 
will be implemented in DFARS to incorporate CMMC Program requirements 
into defense contracts and subcontracts.
    Affected Public: Businesses or other for-profit or not-for-profit 
entities.
    Frequency: On occasion.
    Commenter's Obligation: Voluntary.
    OMB Desk Officer: Written comments and recommendations on the 
proposed information collections should be sent to Ms. Jasmeet Seehra 
at the Office of Management and Budget, DoD Desk Officer, Room 10102, 
New Executive

[[Page 89118]]

Office Building, Washington, DC 20503, with a copy to the Department of 
Defense, Office of the Assistant to the Secretary of Defense for 
Privacy, Civil Liberties, and Transparency, Regulatory Directorate, 
4800 Mark Center Drive, Mailbox #24 Suite 08D09, Alexandria, VA 22350-
1700. Comments can be received from 30 to 60 days after the date of 
this notice, but comments to OMB will be most useful if received by OMB 
within 30 days after the date of this notice.
    You may also submit comments, identified by docket number DoD-2023-
OS-0063 and title through the Federal eRulemaking Portal at https://www.regulations.gov. Follow the instructions for submitting comments.
    Instructions: All submissions received must include the agency 
name, docket number and title for this Federal Register document. The 
general policy for comments and other submissions from members of the 
public is to make these submissions available for public viewing on the 
internet at https://www.regulations.gov as they are received without 
change, including any personal identifiers or contact information.
    To request more information on these proposed information 
collections or to obtain a copy of the proposal and associated 
collection instruments, please write to Department of Defense, Office 
of the DoD Chief Information Officer, 4800 Mark Center Drive, Suite 
11G14, Alexandria, VA 22350 or contact Ms. Diane Knight at 202-770-9100 
or [email protected].

F. Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct requirement costs on state 
and local governments, preempts state law, or otherwise has federalism 
implications. This proposed rule will not have a substantial effect on 
State and local governments.

G. Executive Order 13175, ``Consultation and Coordination With Indian 
Tribal Governments''

    Executive Order 13175 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct compliance costs on one or 
more Indian Tribes, preempts Tribal law, or effects the distribution of 
power and responsibilities between the federal government and Indian 
Tribes. This proposed rule will not have a substantial effect on Indian 
Tribal governments.

List of Subjects in 32 CFR Part 170

    CMMC, CMMC Program, CMMC Levels, Cybersecurity, Certification, 
Federal Contract Information, Controlled Unclassified Information, 
Contracts, Government procurement, Incorporation by reference.

0
Accordingly, the Department of Defense proposes to add 32 CFR part 170 
to read as follows:

PART 170--CYBERSECURITY MATURITY MODEL CERTIFICATION (CMMC) PROGRAM

Subpart A--General Information.
Sec.
170.1 Purpose.
170.2 Incorporation by reference.
170.3 Applicability.
170.4 Acronyms and definitions.
170.5 Policy.
Subpart B--Government Roles and Responsibilities.
170.6 CMMC PMO.
170.7 DCMA DIBCAC.
Subpart C--CMMC Assessment and Certification Ecosystem.
170.8 Accreditation Body.
170.9 CMMC Third-Party Assessment Organizations (C3PAOs).
170.10 CMMC Assessor and Instructor Certification Organization 
(CAICO).
170.11 CMMC Certified Assessor (CCA).
170.12 CMMC Certified Instructor (CCI).
170.13 CMMC Certified Professional (CCP).
Subpart D--Key Elements of the CMMC Program.
170.14 CMMC model.
170.15 CMMC Level 1 Self-Assessment and Affirmation requirements.
170.16 CMMC Level 2 Self-Assessment and Affirmation requirements.
170.17 CMMC Level 2 Certification Assessment and Affirmation 
requirements.
170.18 CMMC Level 3 Certification Assessment and Affirmation 
requirements.
170.19 CMMC scoping.
170.20 Standards acceptance.
170.21 Plan of Action and Milestones requirements.
170.22 Affirmation.
170.23 Application to subcontractors.
170.24 CMMC scoring methodology.
Appendix A to Part 170--Guidance

    Authority:  5 U.S.C. 301; Sec. 1648, Pub. L. 116-92, 133 Stat. 
1198.

Subpart A--General Information.

Sec.  170.1  Purpose.

    (a) This part describes the Cybersecurity Maturity Model 
Certification (CMMC) Program of the Department of Defense (DoD) and 
establishes policy for requiring defense contractors and subcontractors 
to implement prescribed cybersecurity standards for safeguarding: 
Federal Contract Information (FCI), and Controlled Unclassified 
Information (CUI), as well as conduct an assessment of contractor 
information systems that process, store, or transmit FCI or CUI; 
provide security protections for such CUI systems; or are not logically 
or physically isolated from all such CUI systems, for compliance with 
the applicable prescribed cybersecurity standard.
    (b) The CMMC Program is designed to enhance protection of FCI and 
CUI when it is processed, stored, or transmitted on defense contractor 
information systems to meet evolving threats and safeguard the 
sensitive unclassified information that supports and enables the 
warfighter. The CMMC Program provides a consistent methodology to 
assess a defense contractor's implementation of required cybersecurity 
requirements. The CMMC Program utilizes the security standards set 
forth in the Federal Acquisition Regulation (FAR) clause 52.204-21; 
National Institute of Standards and Technology (NIST) Special 
Publication (SP) 800-171 Rev 2; and selected requirements from the NIST 
SP 800-172, as applicable (see table 1 to Sec.  170.14(c)(4) CMMC Level 
3 Requirements).
    (c) The CMMC Program provides DoD with a viable means of conducting 
the volume of assessments necessary to verify contractor and 
subcontractor implementation of required cybersecurity requirements.
    (d) The CMMC Program balances the need to safeguard FCI and CUI and 
the requirement to share information appropriately with defense 
contractors in order to develop capabilities for the DoD. The CMMC 
Program is designed to ensure implementation of cybersecurity practices 
for defense contractors and to provide DoD with increased assurance 
that FCI and CUI information will be adequately safeguarded when 
residing on or transiting contractor information systems.
    (e) This part creates no right or benefit, substantive or 
procedural, enforceable by law or in equity by any party against the 
United States, its departments, agencies, or entities, its officers, 
employees, or agents, or any other person.

Sec.  170.2  Incorporation by Reference.

    Certain material is incorporated by reference into this part with 
the approval of the Director of the Federal Register under 5 U.S.C. 
552(a) and 1 CFR part 51. Material approved for

[[Page 89119]]

incorporation by reference (IBR) is available for inspection at the 
Department of Defense (DoD) and at the National Archives and Records 
Administration (NARA). Contact DoD online: https://DoDcio.defense.gov/CMMC/; email [email protected]; or phone: 
(202) 770-9100. For information on the availability of this material at 
NARA, visit www.archives.gov/federal-register/cfr/ibr-locations.html or 
email [email protected]. The material may be obtained from the 
following sources:
    (a) National Institute of Standards and Technology, U.S. Department 
of Commerce, 100 Bureau Drive, Gaithersburg, MD 20899; (301) 975-8443; 
https://csrc.nist.gov/publications/.
    (1) FIPS PUB 200, Minimum Security Requirements for Federal 
Information and Information Systems, published March 2006; IBR approved 
for Sec.  170.4(b).
    (2) FIPS PUB 201-3, Personal Identity Verification (PIV) of Federal 
Employees and Contractors, published January 2022; IBR approved for 
Sec.  170.4(b).
    (3) SP 800-37, revision 2, Risk Management Framework for 
Information Systems and Organizations, published December 2018; IBR 
approved for Sec.  170.4(b).
    (4) SP 800-39, Managing Information Security Risk: Organization, 
Mission, and Information System View, published March 2011; IBR 
approved for Sec.  170.4(b).
    (5) SP 800-53 revision 5, Security and Privacy Controls for 
Information Systems and Organizations, published September 2020 
(includes updates as of Dec. 10, 2020); IBR approved for Sec.  
170.4(b).
    (6) SP 800-82 revision 2, Guide to Industrial Control Systems (ICS) 
Security, published June 3, 2015, updated November 10, 2018; IBR 
approved for Sec.  170.4(b).
    (7) SP 800-115, Technical Guide to Information Security Testing and 
Assessment, published September 2008; IBR approved for Sec.  170.4(b).
    (8) SP 800-160, Volume 2, revision 1, Developing Cyber-Resilient 
Systems: A Systems Security Engineering Approach, published December 
2021; IBR approved for Sec. Sec.  170.4(b).
    (9) SP 800-171 revision 2, Protecting Controlled Unclassified 
Information in Nonfederal Systems and Organizations, published February 
2020 (includes updates as of January 28, 2021); IBR approved for 
Sec. Sec.  170.4(b); 170.14(a), (b), and (c).
    (10) SP 800-171A, Assessing Security Requirements for Controlled 
Unclassified Information, published June 2018; IBR approved for 
Sec. Sec.  170.11(a), 170.14(d), 170.15(c), 170.16(c), 170.17(c).
    (11) SP 800-172, Enhanced Security Requirements for Protecting 
Controlled Unclassified Information: A Supplement to NIST Special 
Publication 800-171, published February 2021; IBR approved for 
Sec. Sec.  170.5(a) and 170.14(a) and (c).
    (12) SP 800-172A, Assessing Enhanced Security Requirements for 
Controlled Unclassified Information, published March 2022; IBR approved 
for Sec. Sec.  170.4(b), 170.14(d), and 170.18(c).
    (b) The Committee on National Security Systems (CNSS), National 
Security Agency, Savage Road, Suite 6165, Fort George G. Meade, MD 
20755-6716; 410-854-6805; www.cnss.gov/CNSS/issuances/Instructions.cfm.
    (1) Committee on National Security Systems Instruction No. 4009, 
Committee on National Security Systems (CNSS) Glossary, published March 
2022; IBR approved for Sec.  170.4(b).
    (2) [Reserved].
    (c) International Organization for Standardization (ISO) Chemin de 
Blandonnet 8, CP 401--1214 Vernier, Geneva, Switzerland; +41 22 749 01 
11; www.iso.org/popular-standards.html.
    (1) ISO/IEC 17011:2017, Conformity assessment--Requirements for 
accreditation bodies accrediting conformity assessment bodies, 
published 2017; IBR approved for Sec. Sec.  170.8(b) and 170.98(b).
    (2) ISO/IEC 17020:2012, Conformity assessment--Requirements for the 
operation of various types of bodies performing inspection, published 
2012; IBR approved for Sec. Sec.  170.8(a) and (b) and 170.9(a) and 
(b).
    (3) ISO/IEC 17024:2012, Conformity assessment--General requirements 
for bodies operating certification of persons, published 2012; IBR 
approved for Sec. Sec.  170.8(b) and 170.10(a) and (b).

    Note to Sec.  170.2(c): The American National Standards 
Institute (ANSI) IBR Portal provides access to standards that have 
been incorporated by reference in the U.S. Code of Federal 
Regulations at https://ibr.ansi.org. These standards incorporated by 
the U.S. government in rulemakings are offered at no cost in ``read 
only'' format and are presented for online reading. There are no 
print or download options. All users will be required to install the 
FileOpen plug-in and accept an online end user license agreement 
prior to accessing any standards.

Sec.  170.3  Applicability.

    (a) The requirements of this part apply to:
    (1) All DoD contract and subcontract awardees that will process, 
store, or transmit information that meets the standards for FCI or CUI 
on contractor information systems; and,
    (2) Private-sector businesses or other entities comprising the CMMC 
Assessment and Certification Ecosystem, as specified in subpart C of 
this part.
    (b) The requirements of this part do not apply to government 
information systems operated by contractors or subcontractors on behalf 
of the Government.
    (c) CMMC Program requirements apply to all DoD solicitations and 
contracts pursuant to which a defense contractor or subcontractor will 
process, store, or transmit FCI or CUI on unclassified contractor 
information systems, including those for the acquisition of commercial 
items (except those exclusively for COTS items) valued at greater than 
the micro-purchase threshold except under the following circumstances:
    (1) The procurement occurs during Implementation Phase 1, 2, or 3 
as described in paragraph (e) of this section, in which case CMMC 
Program requirements apply in accordance with the requirements for the 
relevant phase-in period; or
    (2) Application of CMMC Program requirements to a procurement or 
class of procurements may be waived in advance of the solicitation at 
the discretion of DoD in accordance with all applicable policies, 
procedures, and approval requirements.
    (d) DoD Program Managers or requiring activities are responsible 
for selecting the CMMC Level that will apply for a particular 
procurement or contract based upon the type of information, FCI or CUI, 
that will be processed on, stored on, or transmitted through a 
contractor information system. Application of the CMMC Level for 
subcontractors will be determined in accordance with Sec.  170.23.
    (e) DoD is utilizing a phased approach for the inclusion of CMMC 
Program requirements in solicitations and contracts. Implementation of 
CMMC Program requirements will occur over four (4) phases:
    (1) Phase 1. Begins on the effective date of the CMMC revision to 
DFARS 252.204-7021. DoD intends to include CMMC Level 1 Self-Assessment 
or CMMC Level 2 Self-Assessment for all applicable DoD solicitations 
and contracts as a condition of contract award. DoD may, at its 
discretion, include CMMC Level 1 Self-Assessment or CMMC Level 2 Self-
Assessment for applicable DoD solicitations and contracts as a 
condition to exercise an option period on a contract awarded prior to 
the effective date. DoD may

[[Page 89120]]

also, at its discretion, include CMMC Level 2 Certification Assessment 
in place of CMMC Level 2 Self-Assessment for applicable DoD 
solicitations and contracts.
    (2) Phase 2. Begins six months following the start date of Phase 1. 
In addition to Phase 1 requirements, DoD intends to include CMMC Level 
2 Certification Assessment all for applicable DoD solicitations and 
contracts as a condition of contract award. DoD may, at its discretion, 
delay the inclusion of CMMC Level 2 Certification Assessment to an 
option period instead of as a condition of contract award. DoD may 
also, at its discretion, include CMMC Level 3 Certification Assessment 
for applicable DoD solicitations and contracts.
    (3) Phase 3. Begins one calendar year following the start date of 
Phase 2. In addition to Phase 1 and 2 requirements, DoD intends to 
include CMMC Level 2 Certification Assessment for all applicable DoD 
solicitations and contracts as a condition of contract award and as a 
condition to exercise an option period on a contract awarded prior to 
the effective date. DoD intends to include CMMC Level 3 Certification 
Assessment for all applicable DoD solicitations and contracts as a 
condition of contract award. DoD may, at its discretion, delay the 
inclusion of CMMC Level 3 Certification Assessment to an option period 
instead of as a condition of contract award.
    (4) Phase 4, Full Implementation. Begins one calendar year 
following the start date of Phase 3. DoD will include CMMC Program 
requirements in all applicable DoD solicitations and contracts 
including option periods on contracts awarded prior to the beginning of 
Phase 4.

Sec.  170.4  Acronyms and definitions.

    (a) Acronyms. Unless otherwise noted, these acronyms and their 
terms are for the purposes of this part.

AC Access Control
APT Advanced Persistent Threat
APP Approved Publisher Partner
AT Awareness and Training
ATP Approved Training Provider
C3PAO CMMC Third-Party Assessment Organization
CA Security Assessment
CAICO CMMC Assessors and Instructors Certification Organization
CAGE Commercial and Government Entity
CCA CMMC Certified Assessor
CCP CMMC Certified Professional
CFR Code of Federal Regulations
CIO Chief Information Officer
CM Configuration Management
CMMC Cybersecurity Maturity Model Certification
CMMC PMO CMMC Program Management Office
CNC Computerized Numerical Control
CoPC Code of Professional Conduct
CSP Cloud Service Provider
CUI Controlled Unclassified Information
DCMA Defense Contract Management Agency
DD Represents any two-character CMMC Domain acronym
DFARS Defense Federal Acquisition Regulation Supplement
DIB Defense Industrial Base
DIBCAC DCMA's Defense Industrial Base Cybersecurity Assessment 
Center
DoD Department of Defense
DoDI Department of Defense Instruction
eMASS Enterprise Mission Assurance Support Service
ESP External Service Provider
FAR Federal Acquisition Regulation
FCI Federal Contract Information
FedRAMP Federal Risk and Authorization Management Program
GFE Government Furnished Equipment
IA Identification and Authentication
ICS Industrial Control System
IIoT Industrial Internet of Things
IoT Internet of Things
IR Incident Response
IS Information System
IEC International Electrotechnical Commission
ISO/IEC International Organization for Standardization/International 
Electrotechnical Commission
IT Information Technology
L# CMMC Level Number
MA Maintenance
MP Media Protection
MSP Managed Service Provider
MSSP Managed Security Service Provider
NARA National Archives and Records Administration
NAICS North American Industry Classification System
NIST National Institute of Standards and Technology
N/A Not Applicable
ODP Organization-Defined Parameter
OSA Organization Seeking Assessment
OSC Organization Seeking Certification
OT Operational Technology
PIEE Procurement Integrated Enterprise Environment
PLC Programmable Logic Controller
POA&M Plan of Action and Milestones
PRA Paperwork Reduction Act
RM Risk Management
SAM System for Award Management
SC System and Communications Protection
SCADA Supervisory Control and Data Acquisition
SI System and Information Integrity
SIEM Security Information and Event Management
SP Special Publication
SPRS Supplier Performance Risk System
SSP System Security Plan

    (b) Definitions. Unless otherwise noted, these terms and their 
definitions are for the purposes of this part.
    Access Control (AC) means the process of granting or denying 
specific requests to obtain and use information and related information 
processing services; and/or entry to specific physical facilities 
(e.g., federal buildings, military establishments, or border crossing 
entrances), as defined in FIPS 201-3 (incorporated by reference, see 
Sec.  170.2).
    Accreditation means a status pursuant to which a CMMC Assessment 
and Certification Ecosystem member (person or organization), having met 
all criteria for the specific role they perform including required ISO/
IEC accreditations, may act in that role as set forth in Sec.  170.8 
for the Accreditation Body and Sec.  170.9 for C3PAOs. (CMMC-custom 
term)
    Accreditation Body is defined in Sec.  170.8 and means the 
organization responsible for authorizing and accrediting members of the 
CMMC Assessment and Certification Ecosystem, as required. The 
Accreditation Body must be approved by DoD. At any given point in time, 
there will be only one Accreditation Body for the DoD CMMC Program. The 
current Accreditation Body is doing business as the Cyber AB at 
cyberab.org. (CMMC-custom term)
    Advanced Persistent Threat (APT) means an adversary that possesses 
sophisticated levels of expertise and significant resources that allow 
it to create opportunities to achieve its objectives by using multiple 
attack vectors (e.g., cyber, physical, and deception). These objectives 
typically include establishing and extending footholds within the 
information technology infrastructure of the targeted organizations for 
purposes of exfiltrating information, undermining or impeding critical 
aspects of a mission, program, or organization; or positioning itself 
to carry out these objectives in the future. The advanced persistent 
threat pursues its objectives repeatedly over an extended period-of-
time, adapts to defenders' efforts to resist it, and is determined to 
maintain the level of interaction needed to execute its objectives, as 
is defined in NIST SP 800-39, (incorporated by reference, see Sec.  
170.2).
    Assessment means the testing or evaluation of security controls to 
determine the extent to which the controls are implemented correctly, 
operating as intended, and producing the desired outcome with respect 
to meeting the security requirements for an information system or 
organization, as defined in Sec.  170.15 to Sec.  170.18. (CMMC-custom 
term)
    (i) Self-Assessment is the term for the activity performed by an 
entity to evaluate its own CMMC Level, as applied to Level 1 and some 
Level 2.
    (ii) CMMC Level 2 Certification Assessment is the term for the 
activity

[[Page 89121]]

performed by a C3PAO to evaluate the CMMC Level of an OSC.
    (iii) CMMC Level 3 Certification Assessment is the term for the 
activity performed by the Department of Defense to evaluate the CMMC 
Level of an OSC.
    Assessment Findings Report means the delivery of the final written 
assessment results by the third-party or government assessment team to 
the OSC. (CMMC-custom term)
    Assessment Team means participants in the CMMC assessment such as 
the CMMC Certified Assessors and CMMC Certified Professionals, or DCMA 
DIBCAC assessors. This does not include the OSC participants preparing 
for or participating in the assessment. (CMMC-custom term)
    Asset Categories means a grouping of assets that process, store or 
transmit information of similar designation, or provide security 
protection to those assets. (CMMC-custom term)
    Authentication is defined in FIPS 200 (incorporated by reference, 
see Sec.  170.2).
    Authorized means an interim status during which a CMMC ecosystem 
member (person or organization), having met all criteria for the 
specific role they perform other than the required ISO/IEC 
accreditations, may act in that role for a specified time as set forth 
in Sec.  170.8 for the Accreditation Body and Sec.  170.9 for C3PAOs. 
(CMMC-custom term)
    Capability means a combination of mutually reinforcing controls 
implemented by technical means, physical means, and procedural means. 
Such controls are typically selected to achieve a common information 
security or privacy purpose, as defined in NIST SP 800-37 (incorporated 
by reference, see Sec.  170.2).
    Cloud Service Provider (CSP) means an external company that 
provides a platform, infrastructure, applications, and/or storage 
services for its clients. (Source: CISA Cloud Security Technical 
Reference Architecture; see https://www.cisa.gov/sites/default/files/publications/CISA%20Cloud%20Security%20Technical%20Reference%20Architecture_Version%201.pdf; page 44.)
    CMMC Assessment and Certification Ecosystem means the people and 
organizations described in subpart C of this part. This term is 
sometimes shortened to CMMC Ecosystem. (CMMC-custom term)
    CMMC Assessment Scope means the set of all assets in the OSA's 
environment that will be assessed against CMMC security requirements. 
(CMMC-custom term)
    CMMC Assessor and Instructor Certification Organization (CAICO) is 
defined in Sec.  170.10 and means the organization responsible for 
training, testing, authorizing, certifying, and recertifying CMMC 
assessors, instructors, and related practitioners. (CMMC-custom term)
    CMMC Instantiation of eMASS means a CMMC instance of the Enterprise 
Mission Assurance Support Service (eMASS), a government owned and 
operated system). (CMMC-custom term)
    CMMC Level 1 Self-Assessment is defined in Sec.  170.15(c)(1). 
(CMMC-custom term)
    CMMC Level 2 Conditional Certification Assessment is defined in 
Sec.  170.17(a)(1)(ii). (CMMC-custom term)
    CMMC Level 2 Conditional Self-Assessment is defined in Sec.  
170.16(a)(1)(ii). (CMMC-custom term)
    CMMC Level 2 Final Certification Assessment is defined in Sec.  
170.17(a)(1)(iii). (CMMC-custom term)
    CMMC Level 2 Final Self-Assessment is defined in Sec.  
170.16(a)(1)(iii). (CMMC-custom term)
    CMMC Level 3 Conditional Certification Assessment is defined in 
Sec.  170.18(a)(1)(ii). (CMMC-custom term)
    CMMC Level 3 Final Certification Assessment is defined in Sec.  
170.18(a)(1)(iii). (CMMC-custom term)
    CMMC Third-Party Assessment Organization (C3PAO) means an 
organization that has been accredited by the Accreditation Body to 
conduct CMMC Level 2 Certification Assessments and has the roles and 
responsibilities identified in Sec.  170.9. (CMMC-custom term)
    Contractor is defined in 48 CFR 3.502-1.
    Contractor Risk Managed Assets are defined in table 3 to Sec.  
170.19(c)(1) CMMC Level 2 Scoping. (CMMC-custom term)
    Controlled Unclassified Information (CUI) is defined in 32 CFR 
2002.4(h).
    Controlled Unclassified Information (CUI) Assets means assets that 
can process, store, or transmit CUI. (CMMC-custom term)
    DCMA DIBCAC High Assessment means an assessment that is conducted 
by Government personnel using NIST SP 800-171A, Assessing Security 
Requirements for Controlled Unclassified Information that:
    (i) Consists of:
    (A) A review of a contractor's Basic Assessment;
    (B) A thorough document review;
    (C) Verification, examination, and demonstration of a contractor's 
system security plan to validate that NIST SP 800-171 security 
requirements have been implemented as described in the contractor's 
system security plan; and
    (D) Discussions with the contractor to obtain additional 
information or clarification, as needed; and
    (ii) Results in a confidence level of ``High'' in the resulting 
score. (Source: DFARS Clause 252.204-7020, see 48 CFR 252.204-7020).
    Defense Industrial Base (DIB) is defined in 32 CFR 236.2.
    Enterprise means an organization with a defined mission/goal and a 
defined boundary, using information systems to execute that mission, 
and with responsibility for managing its own risks and performance. An 
enterprise may consist of all or some of the following business 
aspects: acquisition, program management, financial management (e.g., 
budgets), human resources, security, and information systems, 
information and mission management. (Source: CNSSI 4009; https://www.cnss.gov/CNSS/issuances/Instructions.cfm.) ]
    External Service Provider (ESP) means external people, technology, 
or facilities that an organization utilizes for provision and 
management of comprehensive IT and/or cybersecurity services on behalf 
of the organization. In the CMMC Program, CUI or Security Protection 
Data (e.g., log data, configuration data), must be processed, stored, 
or transmitted on the ESP assets to be considered an ESP. (CMMC-custom 
term)
    Federal Contract Information (FCI) is defined in 48 CFR 4.1901.
    Federal Contract Information (FCI) Assets means assets that 
process, store, or transmit FCI. FCI Assets are part of the Level 1 
CMMC Assessment Scope and are assessed against all CMMC Level 1 
requirements. (CMMC-custom term)
    Government Furnished Equipment (GFE) has the same meaning as 
``government-furnished property'' as defined in 48 CFR 45.101.
    Industrial Control Systems (ICS) means a general term that 
encompasses several types of control systems, including supervisory 
control and data acquisition (SCADA) systems, distributed control 
systems (DCS), and other control system configurations such as 
Programmable Logic Controllers (PLC) often found in the industrial 
sectors and critical infrastructures. An ICS consists of combinations 
of control components (e.g., electrical, mechanical, hydraulic, 
pneumatic) that act together to achieve an industrial objective (e.g., 
manufacturing, transportation of matter or energy), as defined in NIST 
SP 800-82 R2 (incorporated by reference, see Sec.  170.2).
    Information System (IS) is defined in NIST SP 800-171 Rev 2 
(incorporated by reference, see Sec.  170.2).
    Internet of Things (IoT) means the network of devices that contain 
the

[[Page 89122]]

hardware, software, firmware, and actuators which allow the devices to 
connect, interact, and freely exchange data and information, as defined 
in NIST SP 800-172A (incorporated by reference, see Sec.  170.2).
    Operational Technology (OT) means programmable systems or devices 
that interact with the physical environment (or manage devices that 
interact with the physical environment). These systems or devices 
detect or cause a direct change through the monitoring or control of 
devices, processes, and events. Examples include industrial control 
systems, building management systems, fire control systems, and 
physical access control mechanisms, as defined in NIST SP 800-160v2 Rev 
1 (incorporated by reference, see Sec.  170.2).
    Organization-Defined means as determined by the OSA being assessed 
except as defined in the case of Organization-Defined Parameter (ODP). 
(CMMC-custom term)
    Organization-Defined Parameter (ODP) means selected enhanced 
security requirements contain selection and assignment operations to 
give organizations flexibility in defining variable parts of those 
requirements, as defined in NIST SP 800-172A (incorporated by 
reference, see Sec.  170.2).

    Note 1 to ODP:
    For CMMC Level 3, the organization defining the parameters is 
the DoD.

    Organization Seeking Assessment (OSA) means the entity seeking to 
conduct, obtain, or maintain a CMMC assessment for a given information 
system at a particular CMMC Level. The term OSA includes all 
Organizations Seeking Certification (OSCs). (CMMC-custom term)
    Organization Seeking Certification (OSC) means the entity seeking 
to contract, obtain, or maintain CMMC certification for a given 
information system at a particular CMMC Level. An OSC is also an OSA. 
(CMMC-custom term)
    Out-of-Scope Assets means assets that cannot process, store, or 
transmit CUI because they are physically or logically separated from 
information systems that do process, store or transmit CUI, or are 
inherently unable to do so; except for assets that provide security 
protection for a CUI asset (see the definition for Security Protection 
Assets). (CMMC-custom term)
    Periodically means occurring at regular intervals. As used in many 
requirements within CMMC, the interval length is organization-defined 
to provided OSA flexibility, with an interval length of no more than 
one year. (CMMC-custom term)
    Plan of action and milestones (POA&M) means a document that 
identifies tasks needing to be accomplished. It details resources 
required to accomplish the elements of the plan, any milestones in 
meeting the tasks, and scheduled completion dates for the milestones, 
as defined in NIST SP 800-115 (incorporated by reference, see Sec.  
170.2).
    Prime Contractor is defined in 48 CFR 3.502-1.
    Process, store, or transmit means data can be used by an asset 
(e.g., accessed, entered, edited, generated, manipulated, or printed); 
data is inactive or at rest on an asset (e.g., located on electronic 
media, in system component memory, or in physical format such as paper 
documents); or data is being transferred from one asset to another 
asset (e.g., data in transit using physical or digital transport 
methods). (CMMC-custom term)
    Restricted Information Systems means systems (and associated IT 
components comprising the system) that are configured based on 
government requirements (e.g., connected to something that was required 
to support a functional requirement) and are used to support a contract 
(e.g., fielded systems, obsolete systems, and product deliverable 
replicas). (CMMC-custom term)
    Risk means a measure of the extent to which an entity is threatened 
by a potential circumstance or event, and typically a function of the 
adverse impacts that would arise if the circumstance or event occurs 
and the likelihood of occurrence, as defined in CNSSI 4009 
(incorporated by reference, see Sec.  170.2).
    Risk Assessment means the process of identifying risks to 
organizational operations (including mission, functions, image, 
reputation), organizational assets, individuals, other organizations, 
and the Nation, resulting from the operation of a system. Risk 
Assessment is part of risk management, incorporates threat and 
vulnerability analyses, and considers mitigations provided by security 
controls planned or in place. Synonymous with risk analysis, as defined 
in NIST SP 800-39 (incorporated by reference, see Sec.  170.2).
    Security Protection Assets means assets providing security 
functions or capabilities to the OSA's CMMC Assessment Scope, 
irrespective of whether or not these assets process, store, or transmit 
CUI. (CMMC-custom term)
    Specialized Assets means types of assets considered Specialized 
Assets for CMMC: Government Furnished Equipment, Internet of Things 
(IoT) or Industrial Internet of Things (IIoT), Operational Technology 
(OT), Restricted Information Systems, and Test Equipment. (CMMC-custom 
term)
    Subcontractor is defined in 48 CFR 3.502-1.
    Supervisory Control and Data Acquisition (SCADA) means a generic 
name for a computerized system that is capable of gathering and 
processing data and applying operational controls over long distances. 
Typical uses include power transmission and distribution and pipeline 
systems. SCADA was designed for the unique communication challenges 
(e.g., delays, data integrity) posed by the various media that must be 
used, such as phone lines, microwave, and satellite. Usually shared 
rather than dedicated, as defined in NIST SP 800-82 Rev 2 (incorporated 
by reference, see Sec.  170.2).
    System Security Plan (SSP) means the formal document prepared by 
the information system owner (or common security controls owner for 
inherited controls) that provides an overview of the security 
requirements for the system and describes the security controls in 
place or planned for meeting those requirements. The plan can also 
contain as supporting appendices or as references, other key security-
related documents such as a risk assessment, privacy impact assessment, 
system interconnection agreements, contingency plan, security 
configurations, configuration management plan, and incident response 
plan, as defined in CNSSI 4009 (incorporated by reference, see Sec.  
170.2).
    Test Equipment means hardware and/or associated IT components used 
in the testing of products, system components, and contract 
deliverables. (CMMC-custom term)
    User means an individual, or (system) process acting on behalf of 
an individual, authorized to access a system, as defined in NIST SP 
800-53 Rev 5, (incorporated by reference, see Sec.  170.2).

Sec.  170.5  Policy.

    (a) Protection of FCI and CUI on contractor information systems is 
of paramount importance to the DoD and can directly impact its ability 
to successfully conduct essential missions and functions. It is DoD 
policy that defense contractors and subcontractors shall be required to 
safeguard FCI and CUI that is processed, stored, or transmitted on 
contractor information systems by applying specified security 
requirements. In addition, Defense contractors and subcontractors may 
be required to implement additional safeguards defined in NIST SP 800-
172

[[Page 89123]]

(incorporated by reference, see Sec.  170.2), implementing DoD 
specified parameters to meet CMMC Level 3 requirements (see table 1 to 
Sec.  170.14(c)(4) CMMC Level 3 Requirements). These additional 
requirements are necessary to protect CUI being processed, stored, or 
transmitted in contractor information systems, when designated by a 
CMMC Level 3 requirement as defined by a DoD program manager or 
requiring activity. In general, the Department will identify a CMMC 
Level 3 requirement for solicitations supporting its most critical 
programs and technologies.
    (b) Program managers and requiring activities are responsible for 
identifying the CMMC Level that will apply to a procurement. Selection 
of the applicable CMMC Level will be based on factors including but not 
limited to:
    (1) Criticality of the associated mission capability;
    (2) Type of acquisition program or technology;
    (3) Threat of loss of the FCI or CUI to be shared or generated in 
relation to the effort;
    (4) Potential for and impacts from exploitation of information 
security deficiencies; and
    (5) Other relevant policies and factors, including Milestone 
Decision Authority guidance.
    (c) In accordance with the implementation plan described in Sec.  
170.3, CMMC Program requirements will apply to new DoD solicitations 
and contracts, and shall flow down to subcontractors who will process, 
store, or transmit FCI or CUI in performance of the subcontract, as 
described in Sec.  170.23.
    (d) In very limited circumstances, a Service Acquisition Executive 
or Component Acquisition Executive in the DoD may elect to waive 
inclusion of CMMC Program requirements in a solicitation or contract, 
and in accordance with all applicable policies, procedures, and 
requirements. In such cases, contractors and subcontractors will remain 
obligated to comply with all applicable cybersecurity and information 
security requirements.
    (e) The CMMC Program does not alter any separately applicable 
requirements to protect FCI or CUI, including those requirements in 
accordance with FAR 52.204-21 (48 CFR 52.204-21), Basic Safeguarding of 
Covered Contractor Information Systems, or covered defense information 
in accordance with DFARS subpart 204.73 (48 CFR2 04.73), Safeguarding 
Covered Defense Information and Cyber Incident Reporting, or any other 
applicable information protection requirements. The CMMC Program 
provides a means of verifying implementation of the security 
requirements set forth in FAR 52.204-21, NIST SP 800-171 Rev 2, and 
NIST SP 800-172, as applicable.

Subpart B--Government Roles and Responsibilities

Sec.  170.6  CMMC PMO.

    (a) The Office of the Department of Defense Chief Information 
Officer (DoD CIO) Office of the Deputy CIO for Cybersecurity (DoD 
CIO(CS)) provides oversight of the CMMC Program and is responsible for 
establishing CMMC assessment, accreditation, and training requirements 
as well as developing and updating CMMC Program policies and 
implementing guidance. The CMMC PMO is responsible for the granting and 
revocation of the validity status of the appropriate CMMC certification 
level, which officially resides within SPRS based on inputs from the 
OSA, C3PAO, and or DCMA DIBCAC.
    (b) The CMMC PMO is responsible for investigating and acting upon 
indications that an active CMMC Self-Assessment, described in 
Sec. Sec.  170.15 and 170.16, or CMMC Certification Assessment, 
described in Sec. Sec.  170.17 and 170.18, has been called into 
question. Indications that may trigger investigative evaluations 
include, but are not limited to, reports from the CMMC Accreditation 
Body, a C3PAO, or anyone knowledgeable of the security processes and 
activities of the OSA. Investigative evaluations include, but are not 
limited to, reviewing pertinent assessment information and exercising 
the right to require a DCMA DIBCAC assessment of the OSA, as provided 
for under the DFARS clauses 252.204-7012 and 252.204-7020 (48 CFR 
252.204-7012 and 252.204-7020).
    (c) If the investigative results show that adherence to the 
provisions of this rule have not been achieved or maintained, the CMMC 
PMO may revoke the validity status of the appropriate existing CMMC 
Self-Assessment(s) or CMMC Final Certification Assessment(s).

Sec.  170.7  DCMA DIBCAC.

    (a) In support of the CMMC Program, DoD intends that the DCMA 
DIBCAC assessors performing Level 3 assessments will:
    (1) Complete CMMC Level 2 and Level 3 training.
    (2) Conduct CMMC Level 3 Certification Assessments and upload 
assessment results into the CMMC instantiation of eMASS.
    (3) Issue CMMC Level 3 Certification Assessment certificates.
    (4) Conduct CMMC Level 2 assessments of the Accreditation Body and 
prospective C3PAOs information systems that process, store, and/or 
transmit CUI.
    (5) Create and maintain a process for assessors to collect the list 
of assessment artifacts to include artifact names, their return values 
of the hashing algorithm, the hashing algorithm used, and upload that 
data into the CMMC instantiation of eMASS.
    (6) As authorized and in accordance with all legal requirements, 
enter and track, OSC appeals and updated results arising from CMMC 
Level 3 Certification Assessment activities into the CMMC instantiation 
of eMASS.
    (7) Retain all records in accordance with DCMA-MAN 4501-04.
    (b) [Reserved].

Subpart C--CMMC Assessment and Certification Ecosystem

Sec.  170.8  Accreditation Body.

    (a) Roles and responsibilities. The Accreditation Body is 
responsible for authorizing and ensuring the accreditation of CMMC 
Third-Party Assessment Organizations (C3PAOs) in accordance with ISO/
IEC 17020:2012 (incorporated by reference, see Sec.  170.2) and all 
applicable authorization and accreditation requirements set forth. At 
any given point in time, there will be only one Accreditation Body for 
the DoD CMMC Program.
    (b) Requirements. The Accreditation Body shall:
    (1) Become and remain a member in good standing of the Inter-
American Accreditation Cooperation (IAAC) and become an International 
Laboratory Accreditation Cooperation (ILAC) Mutual Recognition 
Arrangement (MRA) signatory, with a signatory status scope of ISO/IEC 
17020:2012.
    (2) Become and remain a member in good standing of the 
International Accreditation Forum (IAF) with mutual recognition 
arrangement signatory status scope of ISO/IEC 17024:2012 (incorporated 
by reference, see Sec.  170.2).
    (3) Achieve and maintain full compliance with ISO/IEC 17011:2017 
(incorporated by reference, see Sec.  170.2) and complete a peer 
assessment by other ILAC signatories for competence in accrediting 
conformity assessment bodies to ISO/IEC 17020:2012, both within 24 
months of DoD approval. If ISO/IEC 17011:2017 is revised or superseded, 
the Accreditation Body shall achieve full compliance with the updated 
standard within 12 months of the date of revision.
    (i) Prior to achieving full compliance as set forth in this 
paragraph (b)(3), the Accreditation Body shall:
    (A) Authorize, but not accredit, C3PAOs who meet all requirements 
set

[[Page 89124]]

forth in Sec.  170.9 to grant CMMC Level 2 Certification Assessments 
and issue certificates of assessment for OSCs.
    (B) Require all C3PAOs to achieve and maintain the ISO/IEC 
17020:2012 requirements within 27 months of authorization. If ISO/IEC 
17020:2012 is revised or superseded, the Accreditation Body shall 
require full compliance with the updated standard within 12 months of 
the date of revision.
    (ii) After achieving full compliance as set forth in this paragraph 
(b)(3), the Accreditation Body shall accredit C3PAOs, in accordance 
with ISO/IEC 17020:2012, or subsequent revisions, who meet all 
requirements set forth in Sec.  170.9 to grant CMMC Level 2 
Certification Assessments and issue certificates of assessment for 
OSCs.
    (4) Ensure that the Accreditation Body's Board of Directors, 
professional staff, Information Technology (IT) staff, accreditation 
staff, and independent assessor staff complete a Tier 3 background 
investigation resulting in a determination of national security 
eligibility. This Tier 3 background investigation will not result in a 
security clearance and is not being executed for the purpose of 
government employment. The Tier 3 background investigation is initiated 
using the Standard Form (SF) 86 and submitted by DoD CIO Security to 
Washington Headquarters Services (WHS) for coordination for processing 
by the Defense Counterintelligence and Security Agency (DCSA). These 
positions are designated as non-critical sensitive with a risk 
designation of ``Moderate Risk'' in accordance with title 5 CFR 
1400.201(b) and (d) and the investigative requirements of title 5 CFR 
731.106(c)(2).
    (5) Comply with Foreign Ownership, Control or Influence (FOCI) by:
    (i) Completing the Standard Form (SF) 328 Certificate Pertaining to 
Foreign Interests and submit it directly to Defense Counterintelligence 
and Security Agency (DCSA) and undergo a National Security Review with 
regards to the protection of controlled unclassified information based 
on the factors identified in 32 CFR 117.11(b) using the procedures 
outlined in 32 CFR 117.11(c). The Accreditation Body must receive a 
non-disqualifying eligibility determination by the CMMC PMO to be 
recognized by the Department of Defense.
    (ii) Reporting any change to the information provided on its SF 328 
by resubmitting the SF 328 to DCSA within 15 business days of the 
change being effective. A disqualifying eligibility determination, 
based on the results of the change, will result in the Accreditation 
Body losing its authorization or accreditation.
    (iii) Identifying all prospective C3PAOs to the CMMC PMO. The CMMC 
PMO will sponsor the prospective C3PAO for a FOCI risk assessment 
conducted by the DCSA using the SF 328 as part of the authorization and 
accreditation processes.
    (iv) Notifying prospective C3PAOs of the CMMC PMO's eligibility 
determination resulting from the FOCI risk assessment.
    (6) Obtain a CMMC Level 2 Certification Assessment in accordance 
with the procedures specified in Sec.  170.17(a)(1) and (c). This 
assessment, conducted by DCMA DIBCAC, shall meet all requirements for a 
Level 2 Final Certification Assessment and will not result in a CMMC 
Level 2 certificate. The CMMC Level 2 assessment process must be 
performed on a triennial basis.
    (7) Provide all documentation and records in English.
    (8) Establish, maintain, and manage an up-to-date list of 
authorized and accredited C3PAOs on a single publicly accessible 
website and provide the list of these entities and their status to the 
DoD through submission in the CMMC instantiation of eMASS.
    (9) Provide the CMMC PMO with current data on C3PAOs, including 
authorization and accreditation records and status in the CMMC 
instantiation of eMASS. This data shall include the dates associated 
with the authorization and accreditation of each C3PAO.
    (10) Provide the DoD with information about aggregate statistics 
pertaining to operations of the CMMC Ecosystem to include the 
authorization and accreditation status of C3PAOs or other information 
as requested.
    (11) Provide inputs for assessor supplemental guidance to the CMMC 
PMO. Participate and support coordination of these and other inputs 
through DoD-led Working Groups.
    (12) Ensure that all information about individuals is encrypted and 
protected in all Accreditation Body information systems and databases.
    (13) Provide all plans that are related to potential sources of 
revenue, to include but not limited to: fees, licensing, processes, 
membership, and/or partnerships to the Department's CMMC PMO.
    (14) Ensure that the CMMC Assessors and Instructors Certification 
Organization (CAICO) is compliant with ISO/IEC 17024:2012. If ISO/IEC 
17024:2012 is revised or superseded, the Accreditation Body shall 
require full compliance with the updated standard within 12 months of 
the date of revision.
    (15) Ensure all training products, instruction, and testing 
materials are of high quality and subject to CAICO quality control 
policies and procedures, to include technical accuracy and alignment 
with all applicable legal, regulatory, and policy requirements.
    (16) Render a final decision on all elevated appeals.
    (17) Develop and maintain a comprehensive plan and schedule to 
comply with all ISO/IEC 17011:2017, or subsequent revisions, and DoD 
requirements for Conflict of Interest, Code of Professional Conduct, 
and Ethics policies as set forth in the DoD contract. All policies 
shall apply to the Accreditation Body, and other individuals, entities, 
and groups within the CMMC ecosystem who provide CMMC assessments, CMMC 
instruction, CMMC training materials, or CMMC certification on behalf 
of the Accreditation Body. All policies in this section must be 
approved by the CMMC PMO prior to effectivity in accordance with the 
following requirements.
    (i) Conflict of Interest (CoI) Policy. The CoI policy shall:
    (A) Include a detailed risk mitigation plan for all potential 
conflicts of interest that may pose a risk to compliance with ISO/IEC 
17011:2017, or subsequent revisions.
    (B) Require members of the Accreditation Body to disclose to the 
CMMC PMO, in writing, as soon as it is known or reasonably should be 
known, any actual, potential, or perceived conflict of interest with 
sufficient detail to allow for assessment.
    (C) Require members of the Accreditation Body who leave the board 
or organization to enter a ``cooling off period'' of six (6) months 
whereby they are prohibited from working with the Accreditation Body or 
participating in CMMC activities.
    (D) Require CMMC Ecosystem members to actively avoid participating 
in any activity, practice, or transaction that could result in an 
actual or perceived conflict of interest.
    (E) Require CMMC Ecosystem members to disclose to Accreditation 
Body leadership, in writing, any actual or potential conflict of 
interest as soon as it is known, or reasonably should be known.
    (ii) Code of Professional Conduct (CoPC) policy. The CoPC policy 
shall:
    (A) Describe the performance standards by which the members of the 
CMMC ecosystem will be held accountable and the procedures for 
addressing violations of those performance standards.
    (B) Require the Accreditation Body to investigate and resolve any 
potential

[[Page 89125]]

violations that are reported or as identified by the DoD.
    (C) Require the Accreditation Body to inform the DoD in writing of 
new investigations within 72 hours.
    (D) Require the Accreditation Body to report to the DoD in writing 
the outcome of completed investigations within 15 business days.
    (E) Require CMMC Ecosystem members to represent themselves and 
their companies accurately; to include not misrepresenting any 
professional credentials or status, including CMMC authorization or 
certification status, nor exaggerating the services that they or their 
company are capable or authorized to deliver.
    (F) Require CMMC Ecosystem members to be honest and factual in all 
CMMC-related activities with colleagues, clients, trainees, and others 
with whom they interact.
    (G) Prohibit CMMC Ecosystem members from participating in the CMMC 
assessment process for a CMMC assessment in which they previously 
served as a consultant to prepare the organization for any CMMC 
assessment.
    (H) Require CMMC Ecosystem members to maintain the confidentiality 
of customer and government data to preclude unauthorized disclosure.
    (I) Require CMMC Ecosystem members to report results and data from 
assessments and training objectively, completely, clearly, and 
accurately.
    (J) Prohibit CMMC Ecosystem members from cheating, assisting 
another in cheating, or allowing cheating on CMMC examinations.
    (K) Require CMMC Ecosystem members to utilize official training 
content developed by a CMMC training organization approved by the CAICO 
in all CMMC certification courses.
    (iii) Ethics policy. The Ethics policy shall:
    (A) Require CMMC Ecosystem members to report to the Accreditation 
Body within 30 days of convictions, guilty pleas, or no contest pleas 
to crimes of fraud, larceny, embezzlement, misappropriation of funds, 
misrepresentation, perjury, false swearing, conspiracy to conceal, or a 
similar offense in any legal proceeding, civil or criminal, whether or 
not in connection with activities that relate to carrying out their 
role in the CMMC ecosystem.
    (B) Prohibit harassment or discrimination by CMMC Ecosystem members 
in all interactions with individuals whom they encounter in connection 
with their roles in the CMMC ecosystem.
    (C) Require CMMC Ecosystem members to have and maintain a 
satisfactory record of integrity and business ethics.

Sec.  170.9  CMMC Third-Party Assessment Organizations (C3PAOs).

    (a) Roles and responsibilities. C3PAOs are organizations that are 
responsible for granting CMMC Level 2 Certification Assessments and 
issuing certificates of assessment for OSCs. C3PAOs must be accredited 
or authorized by the Accreditation Body in accordance with the 
requirements set forth.
    (b) Requirements. C3PAOs shall:
    (1) Obtain authorization or accreditation from the Accreditation 
Body in accordance with Sec.  170.8(b)(3).
    (2) Comply with the Accreditation Body policies for Conflict of 
Interest, Code of Professional Conduct, and Ethics set forth in Sec.  
170.8(b)(17); and achieve and maintain compliance with ISO/IEC 
17020:2012 (incorporated by reference, see Sec.  170.2) within 27 
months of authorization. If ISO/IEC 17020:2012 is revised or 
superseded, the C3PAO shall achieve full compliance with the updated 
standard within 12 months of the date of revision.
    (3) Require all C3PAO company personnel participating in the CMMC 
assessment process to complete a Tier 3 background investigation 
resulting in a determination of national security eligibility. This 
includes the CMMC Assessment Team and the quality assurance individual. 
This Tier 3 background investigation will not result in a security 
clearance, and is not being executed for the purpose of government 
employment. The Tier 3 background investigation is initiated using the 
Standard Form (SF) 86. These positions are designated as non-critical 
sensitive with a risk designation of ``Moderate Risk'' in accordance 
with title 5 CFR 1400.201(b) and (d) and the investigative requirements 
of title 5 CFR 731.106(c)(2).
    (4) Require all C3PAO company personnel participating in the CMMC 
assessment process who are not eligible to obtain a Tier 3 background 
investigation to meet the equivalent of a favorably adjudicated Tier 3 
background investigation. DoD will determine the Tier 3 background 
investigation equivalence for use with the CMMC Program only.
    (5) Comply with Foreign Ownership, Control or Influence (FOCI) by:
    (i) Completing and submitting Standard Form (SF) 328 Certificate 
Pertaining to Foreign Interests upon request from DCSA and undergo a 
National Security Review with regards to the protection of controlled 
unclassified information based on the factors identified in 32 CFR 
117.11(b) using the procedures outlined in 32 CFR 117.11(c).
    (ii) Receiving a non-disqualifying eligibility determination from 
the CMMC PMO resulting from the FOCI risk assessment in order to 
proceed to a DCMA DIBCAC CMMC Level 2 assessment as part of the 
authorization and accreditation process set forth in paragraph (b)(6) 
of this section.
    (iii) Reporting any change to the information provided on its SF 
328 by resubmitting the SF 328 to DCSA within 15 business days of the 
change being effective. A disqualifying eligibility determination, 
based on the results of the change, will result in the C3PAO losing its 
authorization or accreditation.
    (6) Obtain a CMMC Level 2 Certification Assessment in accordance 
with the procedures specified in Sec.  170.17(a)(1) and (c). This 
assessment, conducted by DCMA DIBCAC, shall meet all requirements for a 
Level 2 Final Certification Assessment and will not result in a CMMC 
Level 2 certificate. The CMMC Level 2 assessment process must be 
performed on a triennial basis.
    (7) Provide all documentation and records in English.
    (8) Submit pre-assessment and planning material, final assessment 
reports, and CMMC certificates of assessment into the CMMC 
instantiation of eMASS.
    (9) Submit all assessment appeal investigations and decisions to 
include assessment results into the CMMC instantiation of eMASS.
    (10) Unless disposition is otherwise authorized by the CMMC PMO, 
maintain all assessment related records for a period of six (6) years. 
Such records include any materials provided by OSC, generated by the 
C3PAO in the course of an assessment, any working papers generated from 
Level 2 Certification Assessments; and materials relating to 
monitoring, education, training, technical knowledge, skills, 
experience, and authorization of all personnel involved in inspection 
activities; contractual agreements with OSCs; and organizations for 
whom consulting services were provided.
    (11) Provide any requested audit information, including any out-of-
cycle from ISO/IEC 17020:2012 requirements, or subsequent revisions, to 
the Accreditation Body.
    (12) Ensure that all personal information is encrypted and 
protected in all C3PAO information systems and databases.
    (13) Meet the requirements for Assessment Team composition, 
comprised of a Lead CCA, CCAs, and any participating CCPs.

[[Page 89126]]

    (14) Implement a quality assurance function that ensures the 
accuracy and completeness of assessment data prior to upload into the 
CMMC instantiation of eMASS. Any individual fulfilling the quality 
assurance function must be a CCA and cannot be a member of an 
Assessment Team for which they are performing a quality assurance role. 
A quality assurance individual shall manage the C3PAO's quality 
assurance reviews as defined in paragraph (b)(15) of this section and 
the appeals process as required by paragraph (b)(21) of this section 
and in accordance with ISO/IEC 17020:2012 and ISO/IEC 17011:2017, or 
subsequent revisions.
    (15) Conduct quality assurance reviews for each assessment, 
including observations of the Assessment Team's conduct and management 
of CMMC assessment processes.
    (16) Ensure that all CMMC assessment activities are performed on 
the information system within the CMMC Assessment Scope.
    (17) Maintain all facilities, personnel, and equipment involved in 
CMMC activities that are in scope of their CMMC Level 2 assessment and 
comply with all security requirements and procedures as prescribed by 
the Accreditation Body.
    (18) Upload into the CMMC instantiation of eMASS assessment data 
compliant with the CMMC assessment data standard as set forth in eMASS 
CMMC Assessment Import Templates on the CMMC eMASS website: https://cmmc.emass.apps.mil. \1\
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    \1\ This system is accessible only to authorized users.
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    (19) Issue certificates of assessment to OSCs in accordance with 
the certification requirements set forth in Sec.  170.17.
    (20) Address all OSC appeals arising from CMMC Level 2 assessment 
activities. Any appeal not resolved by the C3PAO will elevate to the 
Accreditation Body for final determination.
    (21) Submit assessment appeals, review records, and decision 
results of assessment appeals to DoD using the CMMC instantiation of 
eMASS.

Sec.  170.10  CMMC Assessor and Instructor Certification Organization 
(CAICO).

    (a) Roles and responsibilities. The CAICO is responsible for 
training, testing, authorizing, certifying, and recertifying CMMC 
assessors, instructors, and related professionals. Only the CAICO may 
make decisions relating to examination certifications, including the 
granting, maintaining, recertifying, expanding, and reducing the scope 
of certification, and suspending or withdrawing certification in 
accordance with current ISO/IEC 17024:2012 (incorporated by reference, 
see Sec.  170.2). At any given point in time, there will be only one 
CAICO for the DoD CMMC Program.
    (b) Requirements. The CAICO shall:
    (1) Comply with the Accreditation Body policies for Conflict of 
Interest, Code of Professional Conduct, and Ethics set forth in Sec.  
170.8(b)(17); and achieve and maintain full compliance with ISO/IEC 
17024:2012 within 25 months of registration. If ISO/IEC 17024:2012 is 
revised or superseded, the CAICO shall achieve full compliance with the 
updated standard within 12 months of the date of revision.
    (2) Provide all documentation and records in English.
    (3) Train, test, certify, and recertify CCAs, CCIs, and CCPs in 
accordance with the requirements of this section.
    (4) The CAICO's certification examinations must be certified under 
ISO/IEC 17024:2012, or subsequent revisions, by a recognized U.S.-based 
accreditor who is not a member of the CMMC Accreditation Body and 
complies with ISO/IEC 17011:2017, or subsequent revisions.
    (5) Establish quality control policies and procedures for the 
generation of training products, instruction, and testing materials.
    (6) Oversee development, administration, and management pertaining 
to the quality of training and examination materials for CMMC assessor 
and instructor certification and recertification.
    (7) Establish and publish an authorization and certification 
appeals process to receive, evaluate, and make decisions on complaints 
and appeals in accordance with ISO/IEC 17024:2012, or subsequent 
revisions.
    (8) Address all appeals arising from the CMMC assessor, instructor, 
and practitioner authorizations and certifications process through use 
of internal processes in accordance with ISO/IEC 17024:2012, or 
subsequent revisions.
    (9) Maintain records for a period of six (6) years of all 
procedures, processes, and actions related to fulfillment of the 
requirements set forth in this section and provide the Accreditation 
Body access to those records.
    (10) Provide the Accreditation Body information about the 
authorization and accreditation status of assessors, instructors, 
training community, and publishing partners.
    (11) Ensure separation of duties between individuals involved in 
testing activities, training activities, and certification activities.
    (12) Safeguard and require any subcontractor, as applicable, to 
safeguard the confidentiality of applicant, candidate, and certificate-
holder information and ensure the overall security of the certification 
process.
    (13) Ensure that all personal information is encrypted and 
protected in all CAICO and CAICO subcontractor, as applicable, 
information systems and databases.
    (14) Ensure the security of assessor and instructor examinations 
and the fair and credible administration of examinations.
    (15) Neither disclose nor allow any subcontractor, as applicable, 
to disclose CMMC data or metrics related to authorization or 
certification activities to any entity other than the Accreditation 
Body and DoD, except as required by law.
    (16) Require retraining and recertification of CCAs, CCIs, and CCPs 
upon significant change to DoD's CMMC Program requirements under this 
rule.

Sec.  170.11  CMMC Certified Assessor (CCA).

    (a) Roles and responsibilities. CCAs, in support of a C3PAO, 
conduct CMMC Level 2 Certification Assessments of OSCs in accordance 
with NIST SP 800-171A (incorporated by reference, see Sec.  170.2), the 
assessment processes defined in Sec.  170.17, and the scoping 
requirements defined in Sec.  170.19. CCAs are certified by the CAICO 
after successful completion of the CCA training and testing 
requirements set forth in paragraph (b) of this section. A CCA may 
conduct CMMC Level 2 Certification Assessments and participate on a 
C3PAO Assessment Team.
    (b) Requirements. CCAs shall:
    (1) Obtain and maintain certification from the CAICO in accordance 
with the requirements set forth in Sec.  170.10. Certification is valid 
for 3 years from the date of issuance.
    (2) Comply with the Accreditation Body policies for Conflict of 
Interest, Code of Professional Conduct, and Ethics set forth in Sec.  
170.8(b)(17).
    (3) Complete a Tier 3 background investigation resulting in a 
determination of national security eligibility. This Tier 3 background 
investigation will not result in a security clearance and is not being 
executed for the purpose of government employment. The Tier 3 
background investigation is initiated using the Standard Form (SF) 86. 
These positions are designated as non-critical sensitive with a risk 
designation of ``Moderate Risk'' in

[[Page 89127]]

accordance with title 5 CFR 1400.201(b) and (d) and the investigative 
requirements of title 5 CFR 731.106(c)(2).
    (4) Meet the equivalent of a favorably adjudicated Tier 3 
background investigation when not eligible for a Tier 3 background 
investigation. DoD will determine the Tier 3 background investigation 
equivalence for use with the CMMC Program only.
    (5) Provide all documentation and records in English.
    (6) Be a CCP who has at least 3 years of cybersecurity experience, 
1 year of assessment or audit experience, and at least one baseline 
certification aligned to either paragraph (b)(6)(i) or (ii) of this 
section through 15 February 2025 and aligned to paragraph (b)(6)(ii) of 
this section only beginning 16 February 2025.
    (i) IAT Level II from DoD Manual 8570 Information Assurance 
Workforce Improvement Program.
    (ii) Intermediate Proficiency Level for Career Pathway Certified 
Assessor 612 from DoD Manual 8140.03 Cyberspace Workforce Qualification 
& Management Program.
    (7) Qualify as a Lead CCA by having at least 5 years of 
cybersecurity experience, 5 years of management experience, 3 years of 
assessment or audit experience, and at least one baseline certification 
aligned to either paragraph (b)(7)(i) or (ii) of this section through 
15 February 2025 and aligned to paragraph (b)(7)(ii) of this section 
only beginning 16 February 2025.
    (i) IAM Level II from DoD Manual 8570 Information Assurance 
Workforce Improvement Program.
    (ii) Advanced Proficiency Level for Career Pathway Certified 
Assessor 612 from DoD Manual 8140.03 Cyberspace Workforce Qualification 
& Management Program.
    (8) Only use IT, cloud, cybersecurity services, and 
end[hyphen]point devices provided by the authorized/accredited C3PAO 
that they support and has received a CMMC Level 2 Certification 
Assessment or higher for all assessment activities. Individual 
assessors are prohibited from using any other IT, including IT that is 
personally owned, to include internal and external cloud services and 
end[hyphen]point devices, to store, process, handle, or transmit CMMC 
assessment reports or any other CMMC assessment-related information.
    (9) Immediately notify the responsible C3PAO of any breach or 
potential breach of security to any CMMC-related assessment materials 
under the assessors' purview.
    (10) Not share any CMMC assessment-related outcomes or advance 
information with any person not assigned to that specific assessment, 
except as otherwise required by law.

Sec.  170.12  CMMC Certified Instructor (CCI).

    (a) Roles and responsibilities. A CMMC Certified Instructor (CCI) 
teaches CMMC assessor candidates. A CCI is trained, tested, and 
certified to perform CMMC instructional duties by the CAICO to teach 
CMMC assessor candidates. Candidate CCIs are certified by the CAICO 
after successful completion of the CCI training and testing 
requirements set forth in paragraph (b) of this section.
    (b) Requirements. CCIs shall:
    (1) Obtain and maintain certification from the CAICO in accordance 
with the requirements set forth in Sec.  170.10. Certification is valid 
for 3 years from the date of issuance.
    (2) Comply with the Accreditation Body policies for Conflict of 
Interest, Code of Professional Conduct, and Ethics set forth in Sec.  
170.8(b)(17).
    (3) Provide all documentation and records in English.
    (4) Provide the Accreditation Body and the CAICO with the most up-
to-date and accurate information detailing their qualifications, 
training experience, professional affiliations, and certifications, 
and, upon reasonable request, submit documentation verifying this 
information.
    (5) Not provide CMMC consulting services while serving as a CMMC 
instructor.
    (6) Not participate in the development of exam objectives and/or 
exam content or act as an exam proctor while at the same time serving 
as a CCI.
    (7) Keep confidential all information obtained or created during 
the performance of CMMC training activities, including trainee records, 
except as required by law.
    (8) Not disclose any CMMC-related data or metrics to anyone without 
prior coordination with and approval from DoD.
    (9) Notify the Accreditation Body or the CAICO if required by law 
or authorized by contractual commitments to release confidential 
information.
    (10) Not share with anyone any CMMC training-related information 
not previously publicly disclosed.

Sec.  170.13  CMMC Certified Professional (CCP).

    (a) Roles and responsibilities. A CMMC Certified Professional (CCP) 
completes rigorous training on CMMC and the assessment process to 
provide advice, consulting, and recommendations to their clients. 
Candidate CCPs are certified by the CAICO after successful completion 
of the CCP training and testing requirements set forth in paragraph (b) 
of this section. CCPs are eligible to become CMMC Certified Assessors 
and can participate as a CCP on CMMC Level 2 Certification Assessments 
with CCA oversight where the CCA makes all final determinations.
    (b) Requirements. CCPs shall:
    (1) Obtain and maintain certification from the CAICO in accordance 
with the requirements set forth in Sec.  170.10. Certification is valid 
for 3 years from the date of issuance.
    (2) Comply with the Accreditation Body policies for Conflict of 
Interest, Code of Professional Conduct, and Ethics as set forth in 
Sec.  170.8(b)(17).
    (3) Complete a Tier 3 background investigation resulting in a 
determination of national security eligibility. This Tier 3 background 
investigation will not result in a security clearance and is not being 
executed for the purpose of government employment. The Tier 3 
background investigation is initiated using the Standard Form (SF) 86. 
These positions are designated as non-critical sensitive with a risk 
designation of ``Moderate Risk'' in accordance with title 5 CFR 
1400.201(b) and (d) and the investigative requirements of title 5 CFR 
731.106(c)(2).
    (4) Require all CCPs, who are not eligible to obtain a Tier 3 
background investigation, to meet the equivalent of a favorably 
adjudicated Tier 3 background investigation. DoD will determine the 
Tier 3 background investigation equivalence for use with the CMMC 
Program only.
    (5) Provide all documentation and records in English.
    (6) Not share any CMMC assessment-related outcomes or advance 
information with any person not assigned to that specific assessment, 
except as otherwise required by law.

Subpart D--Key Elements of the CMMC Program

Sec.  170.14  CMMC Model.

    (a) Overview. The CMMC Model incorporates the security requirements 
from:
    (1) FAR 52.204-21 (48 CFR 52.204-21) Basic Safeguarding of Covered 
Contractor Information Systems;
    (2) NIST SP 800-171 Rev 2, Protecting Controlled Unclassified 
Information in Nonfederal Systems and Organizations (incorporated by 
reference, see Sec.  170.2); and
    (3) Selected requirements from NIST SP 800-172, Enhanced Security 
Requirements for Protecting Controlled

[[Page 89128]]

Unclassified Information: A Supplement to NIST Special Publication 800-
171 Rev 2, (incorporated by reference, see Sec.  170.2).
    (b) CMMC domains. The CMMC Model consists of domains that map to 
the Security Requirement Families defined in NIST SP 800-171 Rev 2.
    (c) CMMC level requirements. CMMC Levels 1-3 utilize the 
safeguarding requirements and security requirements specified in FAR 
clause 52.204-21 (Level 1), NIST SP 800-171 Rev 2 (Level 2), and 
selected security requirements from NIST SP 800-172 (Level 3). This 
paragraph discusses the numbering scheme and the security requirements 
for each level.
    (1) Numbering. Each security requirement has an identification 
number in the format--DD.L#-REQ--where:
    (i) DD is the two-letter domain abbreviation;
    (ii) L# is the CMMC level number; and
    (iii) REQ is the FAR clause 52.204-21 paragraph number, NIST SP 
800-171 Rev 2, or NIST SP 800-172 requirement number.
    (2) CMMC Level 1 requirements. The security requirements in CMMC 
Level 1 are those set forth in FAR clause 52.204-21(b)(1)(i) through 
(b)(1)(xv).
    (3) CMMC Level 2 requirements. The security requirements in CMMC 
Level 2 are identical to the requirements in NIST SP 800-171 Rev 2.
    (4) CMMC Level 3 requirements. The security requirements in CMMC 
Level 3 are selected from NIST SP 800-172, and where applicable, 
Organization-Defined Parameters (ODPs) are assigned. Table 1 to this 
paragraph identifies the selected requirements and applicable ODPs that 
represent the CMMC Level 3 security requirements. ODPs for the NIST SP 
800-172 requirements are italicized, where applicable:

                     Table 1 to Sec.   170.14(c)(4)
------------------------------------------------------------------------
                                                CMMC level 3 security
                                             requirements (Selected NIST
        Security requirement No. \1\         SP 800-172 Requirement with
                                                 DoD ODPs italicized)
------------------------------------------------------------------------
(i) AC.L3-3.1.2e...........................  Restrict access to systems
                                              and system components to
                                              only those information
                                              resources that are owned,
                                              provisioned, or issued by
                                              the organization.
(ii) AC.L3-3.1.3e..........................  Employ secure information
                                              transfer solutions to
                                              control information flows
                                              between security domains
                                              on connected systems.
(iii) AT.L3-3.2.1e.........................  Provide awareness training
                                              upon initial hire,
                                              following a significant
                                              cyber event, and at least
                                              annually, focused on
                                              recognizing and responding
                                              to threats from social
                                              engineering, advanced
                                              persistent threat actors,
                                              breaches, and suspicious
                                              behaviors; update the
                                              training at least annually
                                              or when there are
                                              significant changes to the
                                              threat.
(iv) AT.L3-3.2.2e..........................  Include practical exercises
                                              in awareness training for
                                              all users, tailored by
                                              roles, to include general
                                              users, users with
                                              specialized roles, and
                                              privileged users, that are
                                              aligned with current
                                              threat scenarios and
                                              provide feedback to
                                              individuals involved in
                                              the training and their
                                              supervisors.
(v) CM.L3-3.4.1e...........................  Establish and maintain an
                                              authoritative source and
                                              repository to provide a
                                              trusted source and
                                              accountability for
                                              approved and implemented
                                              system components.
(vi) CM.L3-3.4.2e..........................  Employ automated mechanisms
                                              to detect misconfigured or
                                              unauthorized system
                                              components; after
                                              detection, remove the
                                              components or place the
                                              components in a quarantine
                                              or remediation network to
                                              facilitate patching, re-
                                              configuration, or other
                                              mitigations.
(vii) CM.L3-3.4.3e.........................  Employ automated discovery
                                              and management tools to
                                              maintain an up-to-date,
                                              complete, accurate, and
                                              readily available
                                              inventory of system
                                              components.
(viii) IA.L3-3.5.1e........................  Identify and authenticate
                                              systems and system
                                              components, where
                                              possible, before
                                              establishing a network
                                              connection using
                                              bidirectional
                                              authentication that is
                                              cryptographically based
                                              and replay resistant.
(ix) IA.L3-3.5.3e..........................  Employ automated or manual/
                                              procedural mechanisms to
                                              prohibit system components
                                              from connecting to
                                              organizational systems
                                              unless the components are
                                              known, authenticated, in a
                                              properly configured state,
                                              or in a trust profile.
(x) IR.L3-3.6.1e...........................  Establish and maintain a
                                              security operations center
                                              capability that operates
                                              24/7, with allowance for
                                              remote/on-call staff.
(xi) IR.L3-3.6.2e..........................  Establish and maintain a
                                              cyber-incident response
                                              team that can be deployed
                                              by the organization within
                                              24 hours.
(xii) PS.L3-3.9.2e.........................  Ensure that organizational
                                              systems are protected if
                                              adverse information
                                              develops or is obtained
                                              about individuals with
                                              access to CUI.
(xiii) RA.L3-3.11.1e.......................  Employ threat intelligence,
                                              at a minimum from open or
                                              commercial sources, and
                                              any DoD-provided sources,
                                              as part of a risk
                                              assessment to guide and
                                              inform the development of
                                              organizational systems,
                                              security architectures,
                                              selection of security
                                              solutions, monitoring,
                                              threat hunting, and
                                              response and recovery
                                              activities.
(xiv) RA.L3-3.11.2e........................  Conduct cyber threat
                                              hunting activities on an
                                              on-going aperiodic basis
                                              or when indications
                                              warrant, to search for
                                              indicators of compromise
                                              in organizational systems
                                              and detect, track, and
                                              disrupt threats that evade
                                              existing controls.
(xv) RA.L3-3.11.3e.........................  Employ advanced automation
                                              and analytics capabilities
                                              in support of analysts to
                                              predict and identify risks
                                              to organizations, systems,
                                              and system components.
(xvi) RA.L3-3.11.4e........................  Document or reference in
                                              the system security plan
                                              the security solution
                                              selected, the rationale
                                              for the security solution,
                                              and the risk
                                              determination.
(xvii) RA.L3-3.11.5e.......................  Assess the effectiveness of
                                              security solutions at
                                              least annually or upon
                                              receipt of relevant cyber
                                              threat information, or in
                                              response to a relevant
                                              cyber incident, to address
                                              anticipated risk to
                                              organizational systems and
                                              the organization based on
                                              current and accumulated
                                              threat intelligence.
(xviii) RA.L3-3.11.6e......................  Assess, respond to, and
                                              monitor supply chain risks
                                              associated with
                                              organizational systems and
                                              system components.
(xix) RA.L3-3.11.7e........................  Develop a plan for managing
                                              supply chain risks
                                              associated with
                                              organizational systems and
                                              system components; update
                                              the plan at least
                                              annually, and upon receipt
                                              of relevant cyber threat
                                              information, or in
                                              response to a relevant
                                              cyber incident.
(xx) CA.L3-3.12.1e.........................  Conduct penetration testing
                                              at least annually or when
                                              significant security
                                              changes are made to the
                                              system, leveraging
                                              automated scanning tools
                                              and ad hoc tests using
                                              subject matter experts.
(xxi) SC.L3-3.13.4e........................  Employ physical isolation
                                              techniques or logical
                                              isolation techniques or
                                              both in organizational
                                              systems and system
                                              components.

[[Page 89129]]

 
(xxii) SI.L3-3.14.1e.......................  Verify the integrity of
                                              security critical and
                                              essential software using
                                              root of trust mechanisms
                                              or cryptographic
                                              signatures.
(xxiii) SI.L3-3.14.3e......................  Ensure that Specialized
                                              Assets including IoT,
                                              IIoT, OT, GFE, Restricted
                                              Information Systems, and
                                              test equipment are
                                              included in the scope of
                                              the specified enhanced
                                              security requirements or
                                              are segregated in purpose-
                                              specific networks.
(xxiv) SI.L3-3.14.6e.......................  Use threat indicator
                                              information and effective
                                              mitigations obtained from,
                                              at a minimum, open or
                                              commercial sources, and
                                              any DoD-provided sources,
                                              to guide and inform
                                              intrusion detection and
                                              threat hunting.
------------------------------------------------------------------------
\1\ Roman numerals in parentheses before the Security Requirement are
  for numbering purposes only. The numerals are not part of the naming
  convention for the requirement.

    (d) Implementation. Assessment of security requirements is 
prescribed by NIST SP 800-171A (incorporated by reference, see Sec.  
170.2) and NIST SP 800-172A (incorporated by reference, see Sec.  
170.2). Descriptive text in these documents support OSA implementation 
of the security requirements and use the terms organization-defined and 
periodically. Except where referring to an Organization-Defined 
Parameter (ODP), organization-defined means as determined by the OSA 
being assessed. Periodically means occurring at regular intervals. As 
used in many requirements within CMMC, the interval length is 
organization-defined to provided contractor flexibility, with an 
interval length of no more than one year.

Sec.  170.15  CMMC Level 1 Self-Assessment and Affirmation 
requirements.

    (a) CMMC Level 1 Self-Assessment. To comply with CMMC Level 1 
requirements, the OSA must meet the requirements detailed in paragraphs 
(a)(1) and (2) of this section.
    (1) Self-Assessment. The OSA must complete and achieve a MET result 
for all security requirements specified in Sec.  170.14(c)(2). No 
POA&Ms are permitted for CMMC Level 1. The OSA must conduct a self-
assessment in accordance with the procedures set forth in paragraph 
(c)(1) of this section and submit assessment results in SPRS. To 
maintain compliance with CMMC Level 1 Self-Assessment requirements, the 
OSA must conduct a self-assessment of CMMC Level 1 on an annual basis 
and submit the results in SPRS.
    (i) SPRS inputs. The self-assessment results in the Supplier 
Performance Risk System (SPRS) shall include, at minimum, the following 
items:
    (A) CMMC Level.
    (B) Assessment Date
    (C) Assessment Scope.
    (D) All industry CAGE code(s) associated with the information 
system(s) addressed by the CMMC Assessment Scope
    (E) Compliance result.
    (ii) CMMC status revocation. If the CMMC PMO determines that the 
provisions of Level 1 of this rule have not been achieved or 
maintained, as addressed in Sec.  170.6, a revocation of the validity 
status of the CMMC Level 1 Self-Assessment may occur. At that time, 
standard contractual remedies will apply and the OSA will be ineligible 
for additional awards with CMMC Level 1 Self-Assessment or higher 
requirements for the information system within the CMMC Assessment 
Scope until such time as a valid CMMC Level 1 Self-Assessment is 
achieved.
    (2) Affirmation. Affirmations are required for all CMMC Level 1 
Self-Assessments. Affirmation procedures are set forth in Sec.  170.22.
    (b) Contract eligibility. Prior to award of any contract or 
subcontract with a CMMC Level 1 requirement, OSAs must comply with all 
CMMC Level 1 Self-Assessment requirements and have submitted an 
affirmation of compliance into SPRS for all information systems within 
the CMMC Assessment Scope.
    (c) Procedures.--(1) Self-Assessment. The OSA must perform a CMMC 
Level 1 Self-Assessment scored in accordance with the CMMC Scoring 
Methodology described in Sec.  170.24. The Level 1 Self-Assessment must 
be performed in accordance with the CMMC Level 1 scope requirements set 
forth in Sec.  170.19(a) and (b) and the following:
    (i) NIST SP 800-171A. The CMMC Level 1 Self-Assessment must be 
performed using the objectives defined in NIST SP 800-171A 
(incorporated by reference, see Sec.  170.2) for the security 
requirement that maps to the CMMC Level 1 security requirement as 
specified in table 1 to paragraph (c)(1)(ii) of this section. In any 
case where an objective addresses CUI, FCI should be substituted for 
CUI in the objective.
    (ii) Mapping Table for CMMC Level 1 security requirements to the 
NIST SP 800-171A objectives.

 Table 1 to Sec.   170.15(c)(1)(ii)--CMMC Level 1 Security Requirements
                           to NIST SP 800-171A
------------------------------------------------------------------------
 CMMC Level 1 security requirements as set forth in Sec.   NIST SP 800-
                       170.14(c)(2)                            171A
------------------------------------------------------------------------
AC.L1-b.1.i.............................................           3.1.1
AC.L1-b.1.ii............................................           3.1.2
AC.L1-b.1.iii...........................................          3.1.20
AC.L1-b.1.iv............................................          3.1.22
IA.L1-b.1.v.............................................           3.5.1
IA.L1-b.1.vi............................................           3.5.2
MP.L1-b.1.vii...........................................           3.8.3
PE.L1-b.1.viii..........................................          3.10.1
First phrase of PE.L1-b.1.ix (FAR b.1.ix *).............          3.10.3
Second phrase of PE.L1-b.1.ix (FAR b.1.ix *)............          3.10.4
Third phrase of PE.L1-b.1.ix (FAR b.1.ix *).............          3.10.5
SC.L1-b.1.x.............................................          3.13.1
SC.L1-b.1.xi............................................          3.13.5
SI.L1-b.1.xii...........................................          3.14.1

[[Page 89130]]

 
SI.L1-b.1.xiii..........................................          3.14.2
SI.L1-b.1.xiv...........................................          3.14.4
SI.L1-b.1.xv............................................          3.14.5
------------------------------------------------------------------------
* Three of the FAR 52.204-21 requirements were broken apart by
  ``phrase'' when NIST SP 800-171 Rev 2 was developed.

    (iii) Additional explanatory material can be found in the CMMC 
Level 1 Assessment Guide located at https://DoDcio.defense.gov/CMMC/.
    (2) [Reserved].

Sec.  170.16  CMMC Level 2 Self-Assessment and Affirmation 
requirements.

    (a) Level 2 Self-Assessment. To comply with CMMC Level 2 Self-
Assessment requirements, the OSA must meet the requirements detailed in 
paragraphs (a)(1) and (2) of this section. Meeting the CMMC Level 2 
Self-Assessment requirements detailed in paragraphs (a)(1) and (2) of 
this section also satisfies the CMMC Level 1 Self-Assessment 
requirements detailed in Sec.  170.15 for the same CMMC Assessment 
Scope.
    (1) Self-Assessment. The OSA must complete and achieve a MET result 
for all security requirements specified in Sec.  170.14(c)(3). The OSA 
must conduct a self-assessment in accordance with the procedures set 
forth in paragraph (c)(1) of this section and submit assessment results 
in SPRS. To maintain compliance with CMMC Level 2 Self-Assessment 
requirements, the OSA must perform a CMMC Level 2 Self-Assessment on a 
triennial basis and submit the results in SPRS.
    (i) SPRS inputs. The self-assessment results in the Supplier 
Performance Risk System (SPRS) shall include, at minimum, the following 
information:
    (A) CMMC Level.
    (B) Assessment Date.
    (C) Assessment Scope.
    (D) All industry CAGE code(s) associated with the information 
system(s) addressed by the CMMC Assessment Scope.
    (E) Overall self-assessment score (e.g., 105 out of 110).
    (F) POA&M usage and compliance status, as applicable.
    (ii) Conditional self-assessment. OSAs have achieved CMMC Level 2 
Conditional Self-Assessment if the Level 2 self-assessment results in a 
POA&M and the POA&M meets all the CMMC Level 2 POA&M requirements 
listed in Sec.  170.21(a)(2).
    (A) Plan of Action and Milestones. A Level 2 POA&M is allowed only 
in accordance with the CMMC POA&M requirements listed in Sec.  170.21.
    (B) POA&M closeout. The OSA must implement all CMMC Level 2 
security requirements and close out the POA&M within 180 days of the 
initial self-assessment. Upon remediation of the remaining 
requirements, the OSA must perform a POA&M closeout self-assessment and 
post compliance results to SPRS. If the POA&M is not closed out within 
the 180-day timeframe, the Conditional Level 2 Self-Assessment status 
of the OSA will expire. If Conditional Level 2 Self-Assessment expires 
within the period of performance of a contract, standard contractual 
remedies will apply, and the OSA will be ineligible for additional 
awards with CMMC Level 2 Self-Assessment or higher requirements for the 
information system within the CMMC Assessment Scope.
    (iii) Final Self-Assessment. The OSA will achieve CMMC Level 2 
Final Self-Assessment compliance for the information system(s) within 
the CMMC Assessment Scope upon implementation of all security 
requirements and close out of the POA&M, as applicable.
    (iv) CMMC status revocation. If the CMMC PMO determines that the 
provisions of Level 1 or Level 2 of this rule have not been achieved or 
maintained, as addressed in Sec.  170.6, a revocation of the validity 
status of the CMMC Level 2 Self-Assessment may occur. At that time, 
standard contractual remedies will apply and the OSA will be ineligible 
for additional awards with CMMC Level 2 Self-Assessment or higher 
requirements for the information system within the CMMC Assessment 
Scope until such time as a valid CMMC Level 2 Self-Assessment is 
achieved.
    (2) Affirmation. Affirmations are required at the time of each 
assessment, and annually thereafter, for all CMMC Level 2 Self-
Assessments. Affirmation procedures are provided in Sec.  170.22.
    (b) Contract eligibility. In order to be awarded a contract from 
DoD with a CMMC Level 2 Self-Assessment requirement, the following two 
requirements must be met:
    (1) OSAs must achieve, as specified in paragraph (a)(1) of this 
section, either CMMC Level 2 Conditional Self-Assessment or CMMC Level 
2 Final Self-Assessment.
    (2) OSAs must submit an affirmation of compliance into SPRS, as 
specified in Sec.  170.16(a)(2).
    (c) Procedures.--(1) Self-Assessment. The OSA must perform a CMMC 
Level 2 Self-Assessment in accordance with NIST SP 800-171A 
(incorporated by reference, see Sec.  170.2) and the CMMC Level 2 
scoping requirements set forth in Sec.  170.19(a) and (c) for the 
information systems within the CMMC Assessment Scope. The assessment 
must be scored in accordance with the CMMC Scoring Methodology 
described in Sec.  170.24. If a POA&M exists, a POA&M closeout 
assessment must be performed by the OSA when all remaining requirements 
have been remediated. The POA&M closeout assessment must be performed 
within the 180-day closeout period. Additional guidance can be found in 
the guidance document listed in paragraph (c) of appendix A to this 
part.
    (2) Self-Assessment of Cloud Service Provider. An OSA may use a 
Federal Risk and Authorization Management Program (FedRAMP) Moderate 
(or higher) cloud environment to process, store, or transmit CUI in 
execution of a contract or subcontract with a requirement for CMMC 
Level 2 under the following circumstances:
    (i) The Cloud Service Provider's (CSP) product or service offering 
is FedRAMP Authorized at the FedRAMP Moderate (or higher) baseline in 
accordance with the FedRAMP Marketplace; or
    (ii) The Cloud Service Provider's (CSP) product or service offering 
is not FedRAMP Authorized at the FedRAMP Moderate (or higher) baseline 
but meets security requirements equivalent to those established by the 
FedRAMP Moderate (or higher) baseline. Equivalency is met if the OSA 
has the CSP's System Security Plan (SSP) or other security 
documentation that describes the system environment, system 
responsibilities, the current status of the Moderate baseline controls 
required for the system, and a Customer Responsibility Matrix (CRM) 
that summarizes how each control is MET and which party is responsible 
for maintaining that control that maps to the NIST SP 800-171 Rev 2

[[Page 89131]]

requirements. (See https://www.fedramp.gov/assets/resources/documents/FedRAMP_Moderate_Security_Controls.xlsx.)
    (iii) In accordance with Sec.  170.19, the OSA's on-premises 
infrastructure connecting to the CSP's product or service offering is 
part of the CMMC Assessment Scope, which will also be assessed. As 
such, the security requirements from the CRM must be documented or 
referred to in the OSA's System Security Plan (SSP).

Sec.  170.17  CMMC Level 2 Certification Assessment and Affirmation 
requirements.

    (a) Level 2 Certification Assessment requirements. To comply with 
CMMC Level 2 Certification Assessment requirements, the OSC must meet 
the requirements set forth in paragraphs (a)(1) and (2) of this 
section. Meeting the CMMC Level 2 Certification Assessment requirements 
detailed in paragraphs (a)(1) and (2) of this section also satisfies 
the CMMC Level 2 Self-Assessment requirements set forth in Sec.  170.16 
for the same CMMC Assessment Scope.
    (1) Level 2 Certification Assessment. The OSC must complete and 
achieve a MET result for all security requirements specified in table 1 
to Sec.  170.14(c)(4) CMMC Level 3 Requirements. After implementing the 
CMMC Level 2 security requirements, the OSC must achieve either CMMC 
Level 2 Conditional Certification or Final Certification through 
obtaining a CMMC Level 2 Certification Assessment by an authorized or 
accredited C3PAO following the procedures outlined in paragraph (c) of 
this section. Assessment results will be submitted into the CMMC 
instantiation of eMASS, which then provides automated transmission to 
SPRS. The CMMC Level 2 Certification Assessment process must be 
performed on a triennial basis.
    (i) Inputs into the CMMC instantiation of eMASS. The Level 2 
Certification assessment results input into the CMMC instantiation of 
eMASS shall include, at minimum, the following information:
    (A) Date and level of the assessment.
    (B) C3PAO name and unique identifier.
    (C) For each Assessor conducting the assessment, name and business 
contact information.
    (D) All industry CAGE codes associated with the information systems 
addressed by the CMMC Assessment Scope.
    (E) The name, date, and version of the SSP.
    (F) Title 32 program rule (32 CFR part 170) at time of assessment.
    (G) Certification date.
    (H) Assessment result for each requirement objective.
    (I) POA&M usage and compliance, as applicable.
    (J) List of the artifact names, the return values of the hashing 
algorithm, and the hashing algorithm used.
    (ii) Conditional Certification Assessment. The OSC has achieved 
CMMC Level 2 Conditional Certification Assessment if a POA&M exists 
upon completion of the assessment and the POA&M meets all CMMC Level 2 
POA&M requirements listed in Sec.  170.21(a)(2).
    (A) Plan of Action and Milestones. A Level 2 POA&M is allowed only 
in accordance with the CMMC POA&M requirements listed in Sec.  170.21.
    (B) POA&M closeout. The OSC must implement all CMMC Level 2 
security requirements and close out their POA&M within 180 days of the 
initial assessment. Upon remediation of the remaining requirements, the 
OSC must obtain a POA&M closeout assessment performed by a C3PAO. 
Results will be submitted by the C3PAO into the CMMC instantiation of 
eMASS, which then provides automated transmission to SPRS. If the POA&M 
is not closed out within the 180-day timeframe, the Conditional Level 2 
Certification status will expire. If Conditional Level 2 Certification 
expires within the period of performance of a contract, standard 
contractual remedies will apply, and the OSC will be ineligible for 
additional awards with CMMC Level 2 Certification Assessment or higher 
requirements for the information systems within the CMMC Assessment 
Scope.
    (iii) Final Certification Assessment. The OSC will achieve CMMC 
Level 2 Final Certification Assessment for the information systems 
within the CMMC Assessment Scope upon implementation of all security 
requirements and close out of the POA&M, as applicable.
    (iv) CMMC status revocation. If the CMMC PMO determines that the 
provisions of Level 1 or Level 2 of this rule have not been achieved or 
maintained, as addressed in Sec.  170.6, a revocation of the validity 
status of the CMMC Level 2 Final Certification Assessment may occur. At 
that time, standard contractual remedies will apply and the OSC will be 
ineligible for additional awards with CMMC Level 2 Certification 
Assessment or higher requirements for the information system within the 
CMMC Assessment Scope until such time as a valid CMMC Level 2 
Certification Assessment is achieved. The revocation of a CMMC Level 2 
Final Certification Assessment will automatically cause the revocation 
of any CMMC Level 3 Certification Assessments that were dependent upon 
that CMMC Level 2 Final Certification Assessment.
    (2) Affirmation. Affirmations are required upon completion of each 
assessment, and annually thereafter, for all CMMC Level 2 Certification 
Assessments. Affirmation procedures are provided in Sec.  170.22.
    (b) Contract eligibility. In order to be awarded a contract from 
DoD with a CMMC Level 2 Certification Assessment requirement, the 
following two requirements must be met:
    (1) OSCs must achieve, as specified in paragraph (a)(1) of this 
section, either CMMC Level 2 Conditional Certification Assessment or 
CMMC Level 2 Final Certification Assessment.
    (2) OSCs must submit an affirmation of compliance into SPRS, as 
specified in paragraph (a)(2) of this section.
    (c) Procedures--(1) Assessment. An authorized or accredited C3PAO 
must perform an assessment in accordance with NIST SP 800-171A 
(incorporated by reference, see Sec.  170.2) and the CMMC Level 2 
scoping requirements set forth in Sec.  170.19(a) and (c) for the 
information systems within the CMMC Assessment Scope. The assessment 
must be scored in accordance with the CMMC Scoring Methodology 
described in Sec.  170.24 and final results are subsequently 
communicated to the OSC through a CMMC Assessment Findings Report.
    (2) Security requirement re-evaluation. A security requirement that 
is NOT MET (as defined in Sec.  170.24) may be re-evaluated during the 
course of the assessment and for 10 business days following the active 
assessment period if all of the following conditions exist:
    (i) Additional evidence is available to demonstrate the security 
requirement has been MET;
    (ii) Cannot change or limit the effectiveness of other requirements 
that have been scored MET; and
    (iii) The CMMC Assessment Findings Report has not been delivered.
    (3) POA&M. If a POA&M exists, a POA&M closeout assessment must be 
performed by a C3PAO when all remaining security requirements have been 
remediated. The POA&M closeout assessment must be performed within the 
180-day closeout period to achieve the assessment requirement for a 
Final Certification. Additional guidance can be found in Sec.  170.21 
and in the guidance document listed in paragraph (c) of appendix A to 
this part.
    (4) Artifact retention and integrity. The artifacts used as 
evidence for the assessment must be retained by the OSC for the 
duration of the validity period of the certificate of assessment, and 
at

[[Page 89132]]

minimum, for six (6) years from the date of certification assessment. 
To ensure that the artifacts have not been altered, the OSC must hash 
the artifact files using a NIST-approved hashing algorithm. The OSC 
must provide the C3PAO with a list of the artifact names, the return 
values of the hashing algorithm, and the hashing algorithm for upload 
into the CMMC instantiation of eMASS. Additional guidance for hashing 
artifacts can be found in the guidance document listed in paragraph (h) 
of appendix A to this part.
    (5) Assessment of Cloud Service Provider. An OSC may use a Federal 
Risk and Authorization Management Program (FedRAMP) Moderate (or 
higher) cloud environment to process, store, or transmit CUI in 
execution of a contract or subcontract with a requirement for CMMC 
Level 2 under the following circumstances:
    (i) The Cloud Service Provider's (CSP) product or service offering 
is FedRAMP Authorized at the FedRAMP Moderate (or higher) baseline in 
accordance with the FedRAMP Marketplace; or
    (ii) The Cloud Service Provider's (CSP) product or service offering 
is not FedRAMP Authorized at the FedRAMP Moderate (or higher) baseline 
but meets security requirements equivalent to those established by the 
FedRAMP Moderate (or higher) baseline. Equivalency is met if the OSA 
has the CSP's System Security Plan (SSP) or other security 
documentation that describes the system environment, system 
responsibilities, the current status of the Moderate baseline controls 
required for the system, and a Customer Responsibility Matrix (CRM) 
that summarizes how each control is MET and which party is responsible 
for maintaining that control that maps to the NIST SP 800-171 Rev 2 
requirements. (See https://www.fedramp.gov/assets/resources/documents/FedRAMP_Moderate_Security_Controls.xlsx.).
    (iii) In accordance with Sec.  170.19, the OSC's on-premises 
infrastructure connecting to the CSP's product or service offering is 
part of the CMMC Assessment Scope. As such, the security requirements 
from the CRM must be documented or referred to in the OSC's SSP.

Sec.  170.18  CMMC Level 3 Certification Assessment and Affirmation 
requirements.

    (a) Level 3 Certification Assessment requirements. To comply with 
CMMC Level 3 Certification Assessment requirements, the OSC must meet 
the requirements set forth in paragraphs (a)(1) and (2) of this 
section. Receipt of a CMMC Level 2 Final Certification Assessment for 
information systems within the Level 3 CMMC Assessment Scope is a 
prerequisite for a CMMC Level 3 Certification Assessment.
    (1) Level 3 Certification Assessment. The OSC must achieve a CMMC 
Level 2 Final Certification Assessment on the Level 3 CMMC Assessment 
Scope, as defined in Sec.  170.19(c) and complete and implement all 
Level 3 security requirements specified in table 1 to Sec.  
170.14(c)(4) CMMC Level 3 Requirements prior to initiating a CMMC Level 
3 Certification Assessment, which will be performed by DCMA DIBCAC \1\ 
on behalf of the DoD. To achieve and maintain CMMC Level 3 
Certification Assessment, OSCs must achieve both a CMMC Level 2 Final 
Certification Assessment in accordance with Sec.  170.17 and a CMMC 
Level 3 Final Certification Assessment in accordance with this section 
on a triennial basis for all information systems within the Level 3 
CMMC Assessment Scope. DCMA DIBCAC will submit the assessment results 
into the CMMC instantiation of eMASS, which then provides automated 
transmission to SPRS.
---------------------------------------------------------------------------

    \1\ https://www.dcma.mil/DIBCAC.
---------------------------------------------------------------------------

    (i) Inputs into the CMMC instantiation of eMASS. The assessment 
results input into the CMMC instantiation of eMASS shall include, at 
minimum, the following items:
    (A) Date and level of the assessment.
    (B) For each Assessor(s) conducting the assessment, name and 
business contact information.
    (C) All industry CAGE code(s) associated with the information 
system(s) addressed by the CMMC Assessment Scope.
    (D) The name, date, and version of the system security plan(s) 
(SSP).
    (E) Certification date.
    (F) Result for each security requirement objective.
    (G) POA&M usage and compliance, as applicable.
    (H) List of the artifact names, the return values of the hashing 
algorithm, and the hashing algorithm used.
    (ii) Conditional Certification Assessment. The OSC has achieved 
CMMC Level 3 Conditional Certification Assessment if a POA&M exists 
upon completion of the assessment and the POA&M meets all CMMC Level 3 
POA&M requirements listed in Sec.  170.21(a)(3).
    (A) Plan of Action and Milestones. A Level 3 POA&M is allowed only 
in accordance with the CMMC POA&M requirements listed in Sec.  170.21.
    (B) POA&M Closeout. The OSC must implement all CMMC Level 3 
security requirements and close out the POA&M within 180 days of the 
initial assessment. Upon remediation of the remaining security 
requirements, the OSC must arrange to have DCMA DIBCAC perform a POA&M 
closeout assessment. Results will be submitted into the CMMC 
instantiation of eMASS, which then provides automated transmission to 
SPRS. If the POA&M is not closed out within the 180-day timeframe, the 
Conditional Level 3 Certification status will expire. If Level 3 
Conditional Certification expires within the period of performance of a 
contract, standard contractual remedies will apply, and the OSC will be 
ineligible for additional awards with CMMC Level 3 Certification 
Assessment requirements for the information systems within the CMMC 
Assessment Scope.
    (iii) Final Certification Assessment. The OSC will achieve CMMC 
Level 3 Final Certification Assessment for the information systems 
within the CMMC Assessment Scope upon implementation of all security 
requirements and close out of any POA&M, as applicable.
    (iv) CMMC status revocation. If the CMMC PMO determines that the 
provisions of this rule have not been achieved or maintained, as 
addressed in Sec.  170.6, a revocation of the validity status of the 
CMMC Level 3 Final Certification Assessment may occur. At that time, 
standard contractual remedies will apply and the OSC will be ineligible 
for additional awards with CMMC Level 3 Certification Assessment or 
higher requirements for the information system within the CMMC 
Assessment Scope until such time as a valid CMMC Level 3 Certification 
Assessment is achieved. The revocation of a CMMC Level 2 Final 
Certification Assessment will automatically cause the revocation of any 
CMMC Level 3 Certification Assessments that were dependent upon that 
CMMC Level 2 Final Certification Assessment.
    (2) Affirmation. Affirmations are required upon completion of each 
assessment, and annually thereafter, for all CMMC Level 3 Certification 
Assessments. Affirmation procedures are provided in Sec.  170.22.
    (b) Contract eligibility. In order to be awarded a contract from 
DoD with a CMMC Level 3 Certification Assessment requirement, the 
following two requirements must be met:
    (1) OSCs must achieve, as specified in paragraph (a)(1) of this 
section, either CMMC Level 3 Conditional Certification Assessment or 
CMMC Level 3 Final Certification Assessment.

[[Page 89133]]

    (2) OSCs must submit an affirmation of compliance into SPRS, as 
specified in paragraph (a)(2) of this section.
    (c) Procedures--(1) Assessment. The CMMC Level 3 Certification 
Assessment process includes:
    (i) CMMC Level 2 Final Certification Assessment. CMMC Level 2 Final 
Certification Assessment must be obtained for information systems 
within the Level 3 CMMC Assessment Scope prior to assessment against 
the CMMC Level 3 security requirements of NIST SP 800-172A 
(incorporated by reference, see Sec.  170.2). The OSC must have a CMMC 
Level 2 Final Certification Assessment for the same scope as the Level 
3 assessment. Asset requirements differ for each CMMC Level. Scoping 
differences are set forth in Sec.  170.19(e).
    (ii) CMMC Level 3 Certification Assessment. DCMA DIBCAC will 
perform an assessment of the CMMC Level 3 security requirements in 
accordance with NIST SP 800-172A for information systems within the 
Level 3 CMMC Assessment Scope, determined in accordance with Sec.  
170.19(d). The assessment will be scored in accordance with the CMMC 
Scoring Methodology set forth in Sec.  170.24 and final results are 
subsequently communicated to the OSC through a CMMC Assessment Findings 
Report. In the execution of the CMMC Level 3 Certification Assessment, 
DCMA DIBCAC may perform checks of CMMC Level 2 security requirements in 
accordance with CMMC Level 3 scoping. If DCMA DIBCAC identifies that a 
Level 2 security requirement is NOT MET, the Level 3 assessment process 
may be placed on hold or terminated.
    (2) Security requirement re-evaluation. A security requirement 
under assessment that is NOT MET may be re-evaluated during the course 
of the assessment and for 10 business days following the active 
assessment period if all of the following conditions exist:
    (i) Additional evidence is available to demonstrate the security 
requirement has been MET;
    (ii) The additional evidence does not materially impact previously 
assessed security requirements; and
    (iii) The CMMC Assessment Findings Report has not been delivered.
    (3) POA&M. If a POA&M exists after the initial assessment, a POA&M 
closeout assessment will be performed by DCMA DIBCAC when all remaining 
security requirements have been implemented. The POA&M closeout 
assessment must be performed within the 180-day closeout period to 
achieve the assessment requirement for Final Certification. Additional 
guidance is located in Sec.  170.21 and in the guidance document listed 
in paragraph (a) of appendix A to this part.
    (4) Artifact retention and integrity. The OSC shall retain the 
hashed artifacts used as evidence during the assessment process. The 
OSC shall retain the unedited artifacts for the duration of the 
validity period of the certificate of assessment, and at a minimum, for 
six (6) years from the date of certification assessment. To ensure that 
the artifacts have not been altered, the OSC must hash the artifact 
files using a NIST-approved hashing algorithm. Assessors will collect 
the list of the artifact names, the return values of the hashing 
algorithm, and the hashing algorithm used and upload that data into the 
CMMC instantiation of eMASS. Additional guidance for hashing artifacts 
can be found in the guidance document listed in paragraph (h) of 
appendix A to this part.
    (5) Assessment of Cloud Service Provider. An OSC may use a Federal 
Risk and Authorization Management Program (FedRAMP) Moderate (or 
higher) cloud environment to process, store, or transmit CUI in 
execution of a contract or subcontract with a requirement for CMMC 
Level 3 under the following circumstances:
    (i) The Cloud Service Provider's (CSP) product or service offering 
is FedRAMP Authorized at the FedRAMP Moderate (or higher) baseline in 
accordance with the FedRAMP Marketplace; or
    (ii) The Cloud Service Provider's (CSP) product or service offering 
is not FedRAMP Authorized at the FedRAMP Moderate (or higher) baseline 
but meets security requirements equivalent to those established by the 
FedRAMP Moderate (or higher) baseline. Equivalency is met if the OSC 
has the CSP's System Security Plan (SSP) or other security 
documentation that describes the system environment, system 
responsibilities, the current status of the Moderate baseline controls 
required for the system, and a Customer Responsibility Matrix (CRM) 
that summarizes how each control is MET and which party is responsible 
for maintaining that control that maps to the NIST SP 800-171 Rev 2 
requirements. (See https://www.fedramp.gov/assets/resources/documents/FedRAMP_Moderate_Security_Controls.xlsx.)
    (iii) In accordance with Sec.  170.19, the OSC's on-premises 
infrastructure connecting to the CSP's product or service offering is 
part of the CMMC Assessment Scope. As such, the security requirements 
from the CRM must be documented or referred to in the OSC's SSP.

Sec.  170.19  CMMC scoping.

    (a) Scoping requirement. (1) The CMMC Assessment Scope must be 
specified prior to assessment in accordance with the requirements of 
this section. The CMMC Assessment Scope is the set of all assets in the 
OSA's environment that will be assessed against CMMC security 
requirements.
    (2) The requirements for defining the CMMC Assessment Scope for 
CMMC Levels 1, 2, and 3 are set forth in this section. Additional 
guidance regarding scoping can be found in the guidance documents 
listed in paragraphs (e) through (g) of appendix A to this part.
    (b) CMMC Level 1 Scoping. Prior to performing a Level 1 CMMC Level 
1 Self-Assessment, the OSA must specify the CMMC Assessment Scope.
    (1) Assets in scope for CMMC Level 1 Self-Assessment. OSA 
information systems which process, store, or transmit FCI are in scope 
for CMMC Level 1 and must be self-assessed against applicable CMMC 
security requirements.
    (2) Assets not in scope for CMMC Level 1 Self-Assessment.-(i) Out 
of Scope Assets. OSA information systems which do not process, store, 
or transmit FCI are outside the scope of the CMMC Level 1 Self-
Assessment. There are no documentation requirements for these assets.
    (ii) Specialized Assets. Specialized Assets are those assets that 
can process, store, or transmit FCI but are unable to be fully secured, 
including: Internet of Things (IoT) devices, Industrial Internet of 
Things (IIoT) devices, Operational Technology (OT), Government 
Furnished Equipment (GFE), Restricted Information Systems, and Test 
Equipment. Specialized Assets are not part of the Level 1 CMMC 
Assessment Scope and are not assessed against CMMC security 
requirements.
    (3) CMMC Level 1 Self-Assessment scoping considerations. To scope a 
CMMC Level 1 Self-Assessment, OSAs should consider the people, 
technology, facilities, and External Service Providers (ESP) within its 
environment that process, store, or transmit FCI.
    (c) CMMC Level 2 Scoping. Prior to performing a Level 2 CMMC 
assessment, the OSA must specify the CMMC Assessment Scope.
    (1) The CMMC Assessment Scope for CMMC Level 2 is based on the 
specification of asset categories and their respective requirements as 
defined in table 1 to this paragraph. Additional information is 
available in the guidance document listed in paragraph (f) of appendix 
A to this part.

[[Page 89134]]

            Table 1 to Sec.   170.19(c)(1)--CMMC Level 2 Asset Categories and Associated Requirements
----------------------------------------------------------------------------------------------------------------
                                                                                             CMMC assessment
          Asset category                Asset description         OSA requirements            requirements
----------------------------------------------------------------------------------------------------------------
                           [cir] Assets that are in the Level 2 CMMC Assessment Scope
----------------------------------------------------------------------------------------------------------------
Controlled Unclassified             [cir] Assets that         [cir] Document in the     [cir] Assess against
 Information (CUI) Assets.           process, store, or        asset inventory           CMMC security
                                     transmit CUI.            [cir] Document in the      requirements.
                                                               System Security Plan
                                                               (SSP)..
                                                              [cir] Document in the
                                                               network diagram of the
                                                               CMMC Assessment Scope..
                                                              [cir] Prepare to be
                                                               assessed against CMMC
                                                               security requirements.
Security Protection Assets........  [cir] Assets that         [cir] Document in the     [cir] Assess against
                                     provide security          asset inventory.          CMMC security
                                     functions or             [cir] Document in SSP...   requirements.
                                     capabilities to the      [cir] Document in the
                                     OSA's CMMC Assessment     network diagram of the
                                     Scope, irrespective of    CMMC Assessment Scope..
                                     whether or not these     [cir] Prepare to be
                                     assets process, store,    assessed against CMMC
                                     or transmit CUI           security requirements..
Contractor Risk Managed Assets....  [cir] Assets that can,    [cir] Document in the     [cir] Review the SSP:
                                     but are not intended      asset inventory.         i. If sufficiently
                                     to, process, store, or   [cir] Document in the      documented, do not
                                     transmit CUI because of   SSP..                     assess against other
                                     security policy,         [cir] Document in the      CMMC security
                                     procedures, and           network diagram of the    requirements, except as
                                     practices in place        CMMC Assessment Scope..   noted.
                                    [cir] Assets are not      [cir] Prepare to be       ii. If OSA's risk-based
                                     required to be            assessed against CMMC     security policies,
                                     physically or logically   security requirements..   procedures, and
                                     separated from CUI                                  practices documentation
                                     assets..                                            or other findings raise
                                                                                         questions about these
                                                                                         assets, the assessor
                                                                                         can conduct a limited
                                                                                         check to identify
                                                                                         deficiencies.
                                                                                        iii. The limited
                                                                                         check(s) shall not
                                                                                         materially increase the
                                                                                         assessment duration nor
                                                                                         the assessment cost.
                                                                                        iv. The limited check(s)
                                                                                         will be assessed
                                                                                         against CMMC security
                                                                                         requirements.
Specialized Assets................  [cir] Assets that can     [cir] Document in the     [cir] Review the SSP.
                                     process, store, or        asset inventory          [cir] Do not assess
                                     transmit CUI but are     [cir] Document in the      against other CMMC
                                     unable to be fully        SSP..                     security requirements.
                                     secured, including:      [cir] Show these assets
                                     Internet of Things        are managed using the
                                     (IoT) devices,            contractor's risk-based
                                     Industrial Internet of    security policies,
                                     Things (IIoT) devices,    procedures, and
                                     Operational Technology    practices..
                                     (OT), Government         [cir] Document in the
                                     Furnished Equipment       network diagram of the
                                     (GFE), Restricted         CMMC Assessment Scope..
                                     Information Systems,
                                     and Test Equipment
----------------------------------------------------------------------------------------------------------------
                         [cir] Assets that are not in the Level 2 CMMC Assessment Scope
----------------------------------------------------------------------------------------------------------------
Out-of-Scope Assets...............  [cir] Assets that cannot  [cir] Prepare to justify  [cir] None.
                                     process, store, or        the inability of an Out-
                                     transmit CUI; and do      of-Scope Asset to
                                     not provide security      store, process, or
                                     protections for CUI       transmit CUI
                                     Assets
                                    [cir] Assets that are
                                     physically or logically
                                     separated from CUI
                                     assets
                                    [cir] Assets that fall
                                     into any in-scope asset
                                     category cannot be
                                     considered an Out-of-
                                     Scope Asset
----------------------------------------------------------------------------------------------------------------

    (2) If the OSA utilizes an External Service Provider (ESP), other 
than a Cloud Service Provider (CSP), the ESP must have a CMMC Level 2 
Final Certification Assessment. If the ESP is internal to the OSA, the 
security requirements implemented by the ESP should be listed in the 
OSA's SSP to show connection to its in-scope environment. In the CMMC 
Program, CUI or Security Protection Data (e.g., log data, configuration 
data), must be processed, stored, or transmitted on the ESP assets to 
be considered an ESP. If using a CSP for Level 2 Self-Assessment, see 
Sec.  170.16(c)(2). If using a CSP for Level 2 Certification 
Assessment, see Sec.  170.17(c)(5).
    (d) CMMC Level 3 scoping. Prior to performing a Level 3 CMMC 
assessment, the CMMC Assessment Scope must be specified.
    (1) The CMMC Assessment Scope for Level 3 is based on the 
specification of asset categories and their respective requirements as 
set forth in table 2 to this paragraph. Additional information is 
available in the guidance document listed in paragraph (g) of appendix 
A to this part.

            Table 2 to Sec.   170.19(d)(1)--CMMC Level 3 Asset Categories and Associated Requirements
----------------------------------------------------------------------------------------------------------------
                                                                                             CMMC assessment
          Asset category                Asset description         OSC requirements            requirements
----------------------------------------------------------------------------------------------------------------
                           [cir] Assets that are in the Level 3 CMMC Assessment Scope
----------------------------------------------------------------------------------------------------------------
Controlled Unclassified             [cir] Assets that         [cir] Document in the     [cir] Assess against all
 Information (CUI) Assets.           process, store, or        asset inventory.          CMMC security
                                     transmit CUI.            [cir] Document in the      requirements.
                                    [cir] Assets that can,     System Security Plan
                                     but are not intended      (SSP)..
                                     to, process, store, or   [cir] Document in the
                                     transmit CUI (defined     network diagram of the
                                     as Contractor Risk        CMMC Assessment Scope..
                                     Managed Assets in Table  [cir] Prepare to be
                                     2 to paragraph (c)(1)     assessed against CMMC
                                     of this section CMMC      security requirements..
                                     Scoping)..

[[Page 89135]]

 
Security Protection Assets........  [cir] Assets that         [cir] Document in the     [cir] Assess against all
                                     provide security          asset inventory.          CMMC security
                                     functions or             [cir] Document in the      requirements.
                                     capabilities to the       System Security Plan
                                     OSC's CMMC Assessment     (SSP)..
                                     Scope, irrespective of   [cir] Document in the
                                     whether or not these      network diagram of the
                                     assets process, store,    CMMC Assessment Scope..
                                     or transmit CUI.         [cir] Prepare to be
                                                               assessed against CMMC
                                                               security requirements..
Specialized Assets................  [cir] Assets that can     [cir] Document in the     [cir] Assess against all
                                     process, store, or        asset inventory.          CMMC security
                                     transmit CUI but are     [cir] Document in the      requirements.
                                     unable to be fully        System Security Plan     [cir] Intermediary
                                     secured, including:       (SSP)..                   devices are permitted
                                     Internet of Things       [cir] Document in the      to provide the
                                     (IoT) devices,            network diagram of the    capability for the
                                     Industrial Internet of    CMMC Assessment Scope..   specialized asset to
                                     Things (IIoT) devices,   [cir] Prepare to be        meet one or more CMMC
                                     Operational Technology    assessed against CMMC     security requirements.
                                     (OT), Government          security requirements..
                                     Furnished Equipment
                                     (GFE), Restricted
                                     Information Systems,
                                     and Test Equipment.
----------------------------------------------------------------------------------------------------------------
                         [cir] Assets that are not in the Level 3 CMMC Assessment Scope
----------------------------------------------------------------------------------------------------------------
Out-of-Scope Assets...............  [cir] Assets that cannot  [cir] Prepare to justify  [cir] None.
                                     process, store, or        the inability of an Out-
                                     transmit CUI; and do      of-Scope Asset to
                                     not provide security      store, process, or
                                     protections for CUI       transmit CUI.
                                     Assets.
                                    [cir] Assets that are
                                     physically or logically
                                     separated from CUI
                                     assets..
                                    [cir] Assets that fall
                                     into any in-scope asset
                                     category cannot be
                                     considered an Out-of-
                                     Scope Asset..
----------------------------------------------------------------------------------------------------------------

    (2) If the organization seeking CMMC Level 3 Certification 
Assessment utilizes an ESP, other than a CSP, the ESP must also have a 
CMMC Level 3 Final Certification Assessment. If the ESP is internal to 
the OSC, the security requirements implemented by the ESP should be 
listed in the OSC's SSP to show connection to its in-scope environment. 
If using a CSP, see Sec.  170.18(c)(5). In the CMMC Program, CUI or 
Security Protection Data (e.g., log data, configuration data), must be 
processed, stored, or transmitted on the ESP assets to be considered an 
ESP.
    (e) Relationship between Level 2 and Level 3 CMMC Assessment Scope. 
The Level 3 CMMC Assessment Scope must be equal to or a subset of the 
Level 2 CMMC Assessment Scope in accordance with Sec.  170.18(a), e.g., 
a Level 3 data enclave with greater restrictions and protections within 
a Level 2 data enclave. Any Level 2 POA&M items must be closed prior to 
the initiation of the CMMC Level 3 Certification Assessment. DCMA 
DIBCAC may check any Level 2 security requirement of any in-scope 
asset, and if they determine a requirement is NOT MET, DCMA DIBCAC may 
allow for remediation or may immediately terminate the Level 3 
Assessment. For further information or to contact DCMA DIBCAC regarding 
CMMC, please refer to https://www.dcma.mil/DIBCAC/ or email 
[email protected].

Sec.  170.20  Standards acceptance.

    (a) NIST SP 800-171 Rev 2 DoD assessments. In order to avoid 
duplication of efforts, thereby reducing the aggregate cost to industry 
and the Department, OSCs that have completed a DCMA DIBCAC High 
Assessment aligned with CMMC Level 2 Scoping will be eligible for CMMC 
Level 2 Final Certification Assessment under the following conditions:
    (1) DCMA DIBCAC High Assessment. An OSC that achieved a perfect 
score with no open POA&M from a DCMA DIBCAC High Assessment conducted 
prior to the effective date of this rule, is eligible for a CMMC Level 
2 Final Certification Assessment with a validity period of three (3) 
years from the date of the original DCMA DIBCAC High Assessment. 
Eligible DCMA DIBCAC High Assessments include ones conducted with Joint 
Surveillance in accordance with the DCMA Manual 2302-01 Surveillance. 
The scope of the CMMC Level 2 Final Certification Assessment is 
identical to the scope of the DCMA DIBCAC High Assessment. In 
accordance with Sec.  170.17, the OSC must also submit an affirmation 
in SPRS and annually thereafter to achieve contractual eligibility.
    (2) [Reserved]
    (b) [Reserved]

Sec.  170.21  Plan of Action and Milestones requirements.

    (a) POA&M. An OSA shall maintain a POA&M, as applicable, as part of 
operations under the security requirement for Risk Assessments and 
Continuous Monitoring (CA.L2-3.12.2) for CMMC Levels 2 and 3 in 
accordance with Sec.  170.14(c)(3) and (4), respectively. For purposes 
of conducting a CMMC assessment and satisfying the contractual 
eligibility requirements for CMMC Level 1, 2, or 3, an OSA is only 
permitted to have a POA&M for select requirements scored as NOT MET 
during the CMMC assessment and only under the following conditions:
    (1) CMMC Level 1 Self-Assessment. A POA&M is not permitted at any 
time for CMMC Level 1 Self-Assessments
    (2) CMMC Level 2 Self-Assessment and CMMC Level 2 Certification 
Assessment. An OSA is only permitted to have a POA&M for CMMC Level 2 
if all the following conditions are met:
    (i) The assessment score divided by the total number of security 
requirements is greater than or equal to 0.8;
    (ii) None of the security requirements included in the POA&M have a 
point value of greater than 1 as specified in the CMMC Scoring 
Methodology set forth in Sec.  170.24, except SC.L2-3.13.11 CUI 
Encryption may be included on a POA&M if it has a value of 1 or 3; and
    (iii) None of the following security requirements are included in 
the POA&M:
    (A) AC.L2-3.1.20 External Connections (CUI Data).
    (B) AC.L2-3.1.22 Control Public Information (CUI Data).
    (C) PE.L2-3.10.3 Escort Visitors (CUI Data).
    (D) PE.L2-3.10.4 Physical Access Logs (CUI Data).
    (E) PE.L2-3.10.5 Manage Physical Access (CUI Data).
    (3) CMMC Level 3 Certification Assessment. An OSC is only permitted 
to have a POA&M for CMMC Level 3 if all the following conditions are 
met:

[[Page 89136]]

    (i) The assessment score divided by the total number of CMMC Level 
3 security requirements is greater than or equal to 0.8; and
    (ii) The POA&M does not include any of following security 
requirements:
    (A) IR.L3-3.6.1e Security Operations Center.
    (B) IR.L3-3.6.2e Cyber Incident Response Team.
    (C) RA.L3-3.11.1e Threat-Informed Risk Assessment.
    (D) RA.L3-3.11.6e Supply Chain Risk Response.
    (E) RA.L3-3.11.7e Supply Chain Risk Plan.
    (F) RA.L3-3.11.4e Security Solution Rationale.
    (G) SI.L3-3.14.3e Specialized Asset Security.
    (b) POA&M Closeout assessment. The closing of a POA&M must be 
confirmed by a POA&M Closeout assessment within 180-days of the initial 
assessment. A POA&M Closeout assessment is a CMMC assessment that 
assesses only the NOT MET requirements that were identified with POA&M 
in the initial assessment.
    (1) CMMC Level 2 Self-Assessment. For a CMMC Level 2 Self-
Assessment, the POA&M Closeout assessment shall be performed by the OSA 
in the same manner as the initial self-assessment.
    (2) CMMC Level 2 Certification Assessment. For CMMC Level 2 
Certification Assessment, the POA&M Closeout assessment must be 
performed by an authorized or accredited C3PAO.
    (3) CMMC Level 3 Certification Assessment. For CMMC Level 3 
Certification Assessment, DCMA DIBCAC will perform the POA&M Closeout 
Assessment of the CMMC Level 3 security requirements.

Sec.  170.22  Affirmation.

    (a) General. The OSA must affirm continuing compliance with the 
appropriate level CMMC Self-Assessment or CMMC Certification 
Assessment. The affirmation shall be submitted in accordance with the 
following requirements:
    (1) Affirming official. All CMMC affirmations shall be submitted by 
the OSA senior official who is responsible for ensuring OSA compliance 
with CMMC Program requirements.
    (2) Affirmation content. Each CMMC affirmation shall include the 
following information:
    (i) Name, title, and contact information for the affirming 
official; and
    (ii) Affirmation statement attesting that the OSA has implemented 
and will maintain implementation of all applicable CMMC security 
requirements for all information systems within the relevant CMMC 
Assessment Scope at the applicable CMMC Level.
    (3) Affirmation submission. The affirming official shall submit a 
CMMC affirmation in the following instances:
    (i) Upon completion of the assessment (conditional or final);
    (ii) Annually thereafter; and
    (iii) Following a POA&M closeout assessment, as applicable.
    (b) Submission procedures. All affirmations shall be completed in 
SPRS. The Department will verify submission of the affirmation in SPRS 
to ensure compliance with CMMC solicitation or contract requirements.
    (1) CMMC Level 1 Self-Assessment. At the completion of a self-
assessment and annually thereafter, the affirming official shall submit 
a CMMC affirmation attesting to continuing compliance with all CMMC 
Level 1 security requirements.
    (2) CMMC Level 2 Self-Assessment. At the completion of a self-
assessment and annually thereafter, the affirming official shall submit 
a CMMC affirmation attesting to continuing compliance with all CMMC 
Level 2 security requirements. An affirmation shall also be submitted 
at the completion of a POA&M Closeout assessment.
    (3) CMMC Level 2 Certification Assessment. At the completion of a 
C3PAO assessment and annually thereafter, the affirming official shall 
submit a CMMC affirmation attesting to continuing compliance with all 
CMMC Level 2 security requirements. An affirmation shall also be 
submitted at the completion of a POA&M Closeout assessment.
    (4) CMMC Level 3 Certification Assessment. At the completion of a 
DCMA DIBCAC assessment and annually thereafter, the affirming official 
shall submit a CMMC affirmation attesting to continuing compliance with 
all CMMC Level 3 security requirements. This requirement is in addition 
to the ongoing requirement for Level 2 affirmation. An affirmation 
shall also be submitted at the completion of a POA&M Closeout 
assessment.

Sec.  170.23  Application to subcontractors.

    (a) Procedures. CMMC Level requirements apply to prime contractors 
and subcontractors throughout the supply chain at all tiers that will 
process, store, or transmit FCI or CUI on contractor information 
systems in the performance of the contract or subcontract. Prime 
contractors shall comply and shall require subcontractor compliance 
throughout the supply chain at all tiers with the applicable CMMC level 
for each subcontract as follows:
    (1) If a subcontractor will only process, store, or transmit FCI 
(and not CUI) in performance of the contract, then CMMC Level 1 Self-
Assessment is required for the subcontractor.
    (2) If a subcontractor will process, store, or transmit CUI in 
performance of the subcontract, CMMC Level 2 Self-Assessment is the 
minimum requirement for the subcontractor.
    (3) If a subcontractor will process, store, or transmit CUI in 
performance of the subcontract and the Prime contractor has a 
requirement of Level 2 Certification Assessment, then CMMC Level 2 
Certification Assessment is the minimum requirement for the 
subcontractor.
    (4) If a subcontractor will process, store, or transmit CUI in 
performance of the subcontract and the Prime contractor has a 
requirement of Level 3 Certification Assessment, then CMMC Level 2 
Certification Assessment is the minimum requirement for the 
subcontractor.
    (b) [Reserved].

Sec.  170.24  CMMC Scoring Methodology.

    (a) General. This scoring methodology is designed to provide a 
measurement of an OSA's implementation status of the NIST SP 800-171 
Rev 2 security requirements (incorporated by reference elsewhere in 
this part, see Sec.  170.2) and the specified NIST SP 800-172 security 
requirements (incorporated by reference elsewhere in this part, see 
Sec.  170.2). The CMMC Scoring Methodology is designed to credit 
partial implementation only in limited cases (e.g., multi-factor 
authentication, CMMC Level 2 security requirement IA.L2-3.5.3, a 
Derived Security Requirement).
    (b) Assessment findings. Each security requirement assessed under 
the CMMC Scoring Methodology must result in one of three possible 
assessment findings, as follows:
    (1) MET. All applicable objectives for the security requirement are 
satisfied based on evidence. All evidence must be in final form and not 
draft. Unacceptable forms of evidence include working papers, drafts, 
and unofficial or unapproved policies.
    (2) NOT MET. One or more applicable objectives for the security 
requirement is not satisfied. During an assessment, for each security 
requirement objective marked NOT MET, the assessor will document why 
the evidence does not conform.
    (3) NOT APPLICABLE (N/A). A security requirement and/or objective 
does not apply at the time of the CMMC

[[Page 89137]]

assessment. For example, CMMC security requirement SC.L1-3.13.5 
``Public-Access System Separation'' might be N/A if there are no 
publicly accessible systems within the CMMC Assessment Scope. During an 
assessment, an assessment objective assessed as N/A is equivalent to 
the same assessment objective being assessed as MET.
    (c) Scoring. At each CMMC Level, security requirements are scored 
as follows:
    (1) CMMC Level 1. All CMMC Level 1 security requirements must be 
fully implemented to be considered MET. No POA&M is permitted for CMMC 
Level 1, and self-assessment results are scored as MET or NOT MET in 
their entirety; therefore, no score is calculated, and no scoring 
methodology is needed.
    (2) CMMC Level 2 Scoring Methodology. The maximum score achievable 
for a CMMC Level 2 assessment is equal to the total number of CMMC 
Level 2 security requirements. If all CMMC Level 2 security requirement 
objectives are MET, OSAs are awarded the maximum score. For each 
requirement objective NOT MET, the associated value of the security 
requirement is subtracted from the maximum score, which may result in a 
negative score.
    (i) Procedures (A) Scoring methodology for CMMC Level 2 assessment 
is based on all CMMC Level 2 security requirement objectives, including 
those NOT MET.
    (B) In the CMMC Level 2 Scoring Methodology, each security 
requirement has a value (e.g., 1, 3 or 5).
    (1) For NIST SP 800-171 Rev 2 Basic and Derived Security 
Requirements that, if not implemented, could lead to significant 
exploitation of the network, or exfiltration of CUI, 5 points are 
subtracted from the maximum score. The Basic and Derived security 
requirements with a value of 5 points include:
    (i) Basic Security Requirements: AC.L2-3.1.1, AC.L2-3.1.2, AT.L2-
3.2.1, AT.L2-3.2.2, AU.L2-3.3.1, CM.L2-3.4.1, CM.L2-3.4.2, IA-L2-3.5.1, 
IA-L2-3.5.2, IR.L2-3.6.1, IR.L2-3.6.2, MA.L2-3.7.2, MP.L2-3.8.3, PS.L2-
3.9.2, PE.L2-3.10.1, PE.L2-3.10.2, CA.L2-3.12.1, CA.L2-3.12.3, SC.L2-
3.13.1, SC.L2-3.13.2, SI.L2-3.14.1, SI.L2-3.14.2, and SI.L2-3.14.3.
    (ii) Derived Security Requirements: AC.L2-3.1.12, AC.L2-3.1.13, 
AC.L2-3.1.16, AC.L2-3.1.17, AC.L2-3.1.18, AU.L2-3.3.5, CM.L2-3.4.5, 
CM.L2-3.4.6, CM.L2-3.4.7, CM.L2-3.4.8, IA.L2-3.5.10, MA.L2-3.7.5, 
MP.L2-3.8.7, RA.L2-3.11.2, SC.L2-3.13.5, SC.L2-3.13.6, SC.L2-3.13.15, 
SI.L2-3.14.4, and SI.L2-3.14.6.
    (2) For Basic and Derived Security Requirements that, if not 
implemented, have a specific and confined effect on the security of the 
network and its data, 3 points are subtracted from the maximum score. 
The Basic and Derived security requirements with a value of 3 points 
include:
    (i) Basic Security Requirements: AU.L2-3.3.2, MA.L2-3.7.1, MP.L2-
3.8.1, MP.L2-3.8.2, PS.L2-3.9.1, RA.L2-3.11.1, and CA.L2-3.12.2.
    (ii) Derived Security Requirements: AC.L2-3.1.5, AC.L2-3.1.19, 
MA.L2-3.7.4, MP.L2-3.8.8, SC.L2-3.13.8, SI.L2-3.14.5, and SI.L2-3.14.7.
    (3) All remaining Derived Security Requirements, other than the 
exceptions noted, if not implemented, have a limited or indirect effect 
on the security of the network and its data. For these, 1 point is 
subtracted from the maximum score.
    (4) Two Derived Security Requirements can be partially effective 
even if not completely or properly implemented, and the points deducted 
may be adjusted depending on how the security requirement is 
implemented.
    (i) Multi-factor authentication (MFA) (CMMC Level 2 security 
requirement IA.L2-3.5.3) is typically implemented first for remote and 
privileged users (since these users are both limited in number and more 
critical) and then for the general user, so three (3) points are 
subtracted from the maximum score if MFA is implemented only for remote 
and privileged users. Five (5) points are subtracted from the maximum 
score if MFA is not implemented for any users.
    (ii) FIPS-validated encryption (CMMC Level 2 security requirement 
SC.L2-3.13.11) is required to protect the confidentiality of CUI. If 
encryption is employed, but is not FIPS-validated, three (3) points are 
subtracted from the maximum score; if encryption is not employed; five 
(5) points are subtracted from the maximum score.
    (5) Future revisions of NIST SP 800-171 Rev 2 may add, delete, or 
substantively revise security requirements. When this occurs, a value 
is assigned by the Department to any new or modified security 
requirements in accordance with the scoring methodology in accordance 
with paragraph (c) of this section.
    (6) OSAs must have a system security plan (CMMC Level 2 security 
requirement CA.L2-3.12.4) in place to describe each information system 
within the CMMC Assessment Scope, and a POA&M (CMMC Level 2 security 
requirement CA.L2-3.12.2) in place for each NOT MET security 
requirement in accordance with Sec.  170.21.
    (7) A POA&M addressing NOT MET security requirements is not a 
substitute for a completed requirement. Security requirements not 
implemented, whether described in a POA&M or not, is assessed as `NOT 
MET.'
    (8) Specialized Assets (referred to as ``enduring exceptions'' in 
NIST SP 800-171 Rev 2) must be evaluated for their asset category per 
the CMMC scoping guidance for the level in question and handled 
accordingly (insert references L1-3).
    (9) If an OSC previously received a favorable adjudication from the 
DoD CIO for an alternative security measure (in accordance with DFARS 
provision 252.204-7008 (48 CFR 252.204-7008) or DFARS clause 252.204-
7012 (48 CFR 252.204-7012)), the DoD CIO adjudication must be included 
in the system security plan to receive consideration during an 
assessment. Implemented security measures adjudicated by the DoD CIO as 
equally effective is assessed as MET if there have been no changes in 
the environment.
    (ii) CMMC Level 2 Scoring Table. CMMC Level 2 scoring has been 
assigned based on the methodology set forth in table 1 to this 
paragraph. Future revisions of NIST SP 800-171 Rev 2 may add, delete, 
or substantively revise security requirements. If this occurs, a value 
will be assigned by the Department to any new or modified security 
requirements in accordance with the table 1 scoring methodology:

     Table 1 to Sec.   170.24(c)(2)(ii)--CMMC Level 2 Scoring Table
------------------------------------------------------------------------
                                                          Point value
         CMMC Level 2 requirement categories            subtracted from
                                                         maximum score
------------------------------------------------------------------------
Basic Security Requirements:
    If not implemented, could lead to significant                      5
     exploitation of the network, or exfiltration of
     CUI.............................................
    If not implemented, has specific and confined                      3
     effect on the security of the network and its
     data............................................

[[Page 89138]]

 
Derived Security Requirements:
    If not implemented, could lead to significant                      5
     exploitation of the network, or exfiltration of
     CUI.............................................
    If not completely or properly implemented, could              3 or 5
     be partially effective and points adjusted
     depending on how the security requirement is
     implemented:....................................
    --Partially effective implementation--3 points...
    --Non-effective (not implemented at all)--5
     points..........................................
    If not implemented, has specific and confined                      3
     effect on the security of the network and its
     data............................................
    If not implemented, has a limited or indirect                      1
     effect on the security of the network and its
     data............................................
------------------------------------------------------------------------

    (3) CMMC Level 3 Assessment scoring methodology. CMMC Level 3 
scoring does not utilize varying values like the scoring for CMMC Level 
2. All CMMC Level 3 security requirements use a value of ``1'' point 
for each security requirement. As a result, the maximum score 
achievable for a CMMC Level 3 is equivalent to the total number of CMMC 
Level 3 security requirements. The maximum score is reduced by one (1) 
point for each security requirement NOT MET. The CMMC Level 3 scoring 
methodology reflects the fact that all CMMC Level 2 security 
requirements must already be MET (for the Level 3 CMMC Assessment 
Scope). A maximum CMMC Level 2 assessment score is required to be 
eligible for conduct of a CMMC Level 3 Certification Assessment. The 
CMMC Level 3 assessment score is equal to the number of CMMC Level 3 
security requirements that are assessed as MET.

Appendix A to Part 170--Guidance.

    Guidance Documents include:
    (a) ``CMMC Model Overview'' available at https://DoDcio.defense.gov/CMMC/.
    (b) ``CMMC Assessment Guide--Level 1'' available at https://DoDcio.defense.gov/CMMC/.
    (c) ``CMMC Assessment Guide--Level 2'' available at https://DoDcio.defense.gov/CMMC/.
    (d) ``CMMC Assessment Guide--Level 3'' available at https://DoDcio.defense.gov/CMMC/.
    (e) ``CMMC Scoping Guide--Level 1'' available at https://DoDcio.defense.gov/CMMC/.
    (f) ``CMMC Scoping Guide--Level 2'' available at https://DoDcio.defense.gov/CMMC/.
    (g) ``CMMC Scoping Guide--Level 3'' available at https://DoDcio.defense.gov/CMMC/.
    (h) ``CMMC Hashing Guide'' available at https://DoDcio.defense.gov/CMMC/.
    See these guidance documents in docket number DoD-2023-OS-0096 
for specific details and to provide comments on the guidance.

Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2023-27280 Filed 12-22-23; 8:45 am]
BILLING CODE 6001-FR-P
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