CMMC Level 2 is more than a compliance requirement—it's a strategic investment. This article breaks down how mid-to-enterprise defense contractors can evaluate the return on investment (ROI) of achieving CMMC certification. From contract protection and cyber risk reduction to operational efficiency and competitive advantage, we highlight the business case for taking action now.
CMMC Level 2 requires a formal third-party assessment by a CMMC Certified Third Party Assessment Organization (C3PAO). CMMC L2 is for defense contractors and subcontractors who handle Controlled Unclassified Information (CUI) and mandates the implementation of the 110 controls and 320 objectives from NIST SP 800-171.
Unlike Level 1, which is self-assessed, Level 2 ensures your cybersecurity practices are independently verified—a major step up in rigor and assurance for the DoD.
Compliance often feels like a sunk cost. But CMMC Level 2, when implemented strategically, can offer a solid return on investment across multiple dimensions:
1. Revenue Protection and Access to Contracts
The ROI: Preserve existing revenue streams and qualify for future defense contracts.
CMMC Level 2 will soon be a contractual requirement for handling CUI. If you want to remain eligible for a broad swath of Department of Defense (DoD) contracts, compliance isn’t optional. For many mid-sized and enterprise contractors, the cost of inaction is steep: lost bids, jeopardized recompetes, or even disqualification from programs mid-lifecycle.
Key ROI question: What is the total contract value at risk without Level 2 certification?
2. Operational Maturity and Cyber Risk Reduction
The ROI: Fewer incidents, less downtime, and reduced breach recovery costs.
According to IBM’s 2023 Cost of a Data Breach Report, the average data breach in the U.S. costs $4.45 million. That number is even higher in highly regulated industries like defense. Implementing NIST SP 800-171 security practices doesn’t just satisfy a government mandate—it strengthens your entire cyber
defense posture. It is true that compliance does not equal security. And yet we never helped a client with compliance without leaving them more secure post engagement.
Key ROI question: What is the estimated financial impact of a single data breach for your organization?
3. Streamlined Internal Operations
The ROI: Standardized security practices lead to process efficiency and clarity.
CMMC implementation requires documentation, defined roles, and repeatable processes—hallmarks of a mature organization. These process improvements often bleed into other business areas, like IT operations, procurement, HR onboarding, and vendor management, reducing overhead and increasing visibility.
Key ROI questions: How many hours could you save annually through clearer, more consistent processes? How many errors result from miscommunications as a result of different definitions and standards?
4. Competitive Differentiation
The ROI: Use compliance as a sales and marketing differentiator.
Not all defense contractors will move quickly to meet CMMC Level 2 requirements. If your organization does, you can position yourself as a reliable and secure partner—something that primes, subs, and federal buyers value deeply in today’s high-risk climate. This aligns with the perspective shared by our President in his article, "CMMC: It Makes Good Business Sense", where he argues that the smartest companies aren’t waiting to comply—they’re using cybersecurity maturity as a strategic lever for growth and long-term market leadership.
Key ROI question: What percentage of market share could you capture as an early adopter of a cybersecurity standard that you will eventually have to meet anyway?
5. Reduced Assessment Fatigue
The ROI: One framework, a start toward more maturity
CMMC Level 2 is based on NIST 800-171 which is a subset of a much larger set of security controls NIST 800-53. Just as it is true that security doesn’t equal compliance (but compliance makes you more secure unless you are doing it wrong), there is no such thing as perfect security. Your initial goal should be to ensure you are not low hanging fruit for attackers. That is essentially what CMMC Level 2 accomplishes. It is a baseline. Many CMMC controls are an integral part of other security frameworks like FedRAMP. Companies who plan and manage their security compliance in a holistic manner can successfully marry up their investments and related documentation to meet multiple compliance goals. By investing in a robust CMMC program, you can reduce duplication across assessments and simplify future readiness—especially if your company straddles multiple regulatory environments.
Key ROI question: How much time and effort could be saved from viewing cybersecurity compliance as a strategic initiative and holistically managing investments and documentation?
To quantify the ROI of CMMC Level 2, defense contractors should consider:
Frame your ROI analysis over a 3–5 year horizon. This aligns with how most CMMC certifications are valid and helps you smooth out initial implementation costs against long-term operational and revenue gains.
For mid-to-enterprise contractors, CMMC Level 2 is not a checkbox—it’s strategic infrastructure. It's the foundation of secure business operations, trusted partnerships, and continued eligibility in one of the most lucrative and sensitive federal marketplaces.
Done right, it pays for itself—and then some.
Schedule a quick call with a CMMC expert to learn more about how we can help you mitigate contract risk, minmize implementation costs, and and maximize ROI.
Amy Williams began her career in Accounting Information Systems, a precursor to cybersecurity that imbued her with the talents and knowledge that she uses today. A member of multiple fields of study, Dr. Williams has ample experience understanding fraud, system errors in internal systems, and internet security protection. She has been on the forefront of developing cyber strategies for supply chains since the world wide web made the internet popular for sharing data in business. With both a Master’s Degree and PhD from Virginia Tech, Amy Williams has held prestigious positions with the NY Citizens Crime Commission where she built an alliance with the FBI, and she led the development of BlueVoyant's CMMC and CIS Advisory Practices prior to joining Coalfire Federal.
