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Why Care NOW? Phase 1 Enforcement Already Started

Mike Torres
Mike Torres
Manufacturing Security Advisor
2025-12-22
7 min read
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Advised global manufacturers and machine shops across Asia and US for 7 years. Now helping small shops navigate CMMC compliance without the BS.

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TABLE_OF_CONTENTS

You've known about CMMC for a while. Maybe you figured you'd deal with it "eventually." Maybe you thought the deadline would get pushed back again. Maybe you hoped it would just go away.

It's not going away. And "eventually" is now.

The Phase 2 Deadline: November 10, 2026

The DoD flips the switch on Phase 2 enforcement on November 10, 2026.

What that means:

  • New DoD contracts will require CMMC Level 2 certification
  • No certification = you can't bid
  • Your prime contractors will start asking for proof
  • Competitors who are certified will take your work

This isn't a soft deadline. It's not a "recommendation." It's a hard contract requirement.

But Hasn't the Deadline Been Pushed Before?

Yes. Multiple times.

CMMC was supposed to roll out in 2020. Then 2021. Then 2023. Then 2024.

People got complacent. "They'll push it again," everyone said.

Not this time.

The DoD published the final rule on October 15, 2024, and it became effective December 26, 2024. The regulation is locked in. There's no political appetite to delay it again — not with China stealing defense tech daily.

If you're betting on another extension, you're gambling your DoD revenue stream.

The Official Timeline

Here's what's actually happening:

November 10, 2025 (Phase 1): ✅ ALREADY HAPPENED

  • CMMC Level 1 and Level 2 self-assessments are NOW appearing in new DoD contracts
  • If you're bidding on contracts today, you're already seeing CMMC requirements

November 10, 2026 (Phase 2): 🔴 324 DAYS AWAY

  • Third-party CMMC Level 2 certification assessments become mandatory
  • This is the deadline everyone's circling in red
  • Less than 11 months to get certified

November 10, 2027 (Phase 3):

  • CMMC Level 3 assessments begin

November 10, 2028 (Phase 4):

  • Full implementation across all DoD contracts

What "No Cert = No Bid" Actually Means

Let's be specific. Here's what happens if you're not certified by November 10, 2026:

Scenario 1: New Contracts

You get an RFP for a $500K job making brackets for the F-35.

The solicitation says: "Offerors must have CMMC Level 2 certification."

You don't have it. You can't bid. End of story.

Scenario 2: Prime Contractor Requirements

Your prime contractor (Lockheed, Boeing, etc.) sends a questionnaire: "Are you CMMC certified?"

You say no. They say, "Get certified or we're finding a new supplier."

They're not bluffing. Primes are on the hook for supply chain security now. If you leak data, they get blamed.

Scenario 3: Existing Contracts

You have a 3-year contract that renews in 2027.

At renewal time, the DoD adds CMMC as a contract requirement. No certification = no renewal.

Your competitor who got certified? They get your contract.

Why Waiting Until 2026 Is Risky

Here's the timeline to get CMMC Level 2 certified:

TaskTime Required
Gap assessment2-4 weeks
Fix technical gaps (MFA, backups, network segmentation)8-12 weeks
Document policies and procedures4-6 weeks
Schedule C3PAO assessment4-8 weeks (waitlist)
Pass assessment and get certified1-2 weeks
TOTAL5-7 months

If you start TODAY (December 2025), you have just enough time to be ready before November 2026.

If you wait until spring 2026? You're not getting certified before the deadline. Not even close.

The C3PAO Bottleneck

C3PAOs (the certified auditors who assess you) are already booking up.

Everyone who waited until the last minute is scrambling. Guess what happens when thousands of shops need assessments in late 2026?

Waitlists.

Some C3PAOs are already booking 3-4 months out. By mid-2026, good luck finding one before November.

The Real Cost of Delay

Let's do the math on what procrastination costs you.

Your DoD revenue: Let's say $1M/year (conservative for a 10-person shop)

Lost revenue if not certified: $1M/year = $83K/month

If you miss the November 2026 deadline by 3 months, you just lost $250K in revenue.

Meanwhile, your competitor who started early is taking your contracts.

What's Driving the Urgency?

Three things are making this deadline real:

1. Data Breaches Are Accelerating

Chinese hackers stole F-35 design data from a subcontractor in 2014. They built their own knockoff fighter jet (the J-31).

The DoD is done playing around. They're tightening the supply chain or cutting you out.

2. Primes Are Enforcing It

Lockheed Martin, Raytheon, and Boeing are already requiring CMMC proof from subs. Phase 1 started in November 2025 — they're asking RIGHT NOW.

If your prime says "show me your cert," you either have it or lose the contract.

3. Insurance & Liability

Cyber insurance companies are starting to ask: "Are you CMMC compliant?"

If you get hacked and leak CUI, you're liable. Insurance won't cover gross negligence (like storing classified data on an unsecured laptop).

What Happens If You Get Hacked Before You're Certified?

Bad news: You have to report it to the DoD within 72 hours.

If you're handling CUI and get ransomware, you can't just quietly pay the ransom and move on.

You report it to the DoD. They investigate. If you weren't following CMMC practices, you lose your contracts.

And if you think "I just won't report it," think again. That's a federal crime (False Claims Act). Penalties include fines, debarment, and jail time.

Can You Just Self-Certify Like Before?

Nope.

The old system (self-assessment) is dead. Everyone lied. The DoD knows this.

Starting November 10, 2026, you need a third-party C3PAO assessment. They check everything:

  • Technical controls (firewalls, MFA, backups)
  • Policies and procedures (documented and followed)
  • Interviews with staff (do they actually know the security rules?)

If you fail, you don't get certified. If you don't get certified, you don't get contracts.

What If You're "Too Small" for CMMC?

Some shops think: "We're only 5 people. This doesn't apply to us."

Wrong.

CMMC applies to every company in the DoD supply chain that handles CUI. Size doesn't matter.

If you make a single bolt for an F-35 and get the technical drawing (CUI), you need CMMC.

The DoD doesn't care if you're a 3-person garage shop or a 500-person factory. Same rules.

What If You Stop Taking DoD Work?

Fair question. Some shops are walking away from defense contracts entirely.

Here's what you're giving up:

  • Stable, long-term revenue (DoD contracts are 3-5 years typically)
  • Premium pricing (defense work pays better than commercial)
  • Diversification (if commercial dries up, defense is a cushion)

And here's what you'd need to replace it:

  • New commercial clients (harder to find, price-sensitive)
  • Retooling for different work (if your equipment is defense-specific)
  • Layoffs (if you can't replace the revenue)

For some shops, walking away makes sense. For most, the cost of CMMC compliance ($25K-$75K) is way cheaper than losing DoD revenue.

What's the First Step Right Now?

Don't panic. But don't wait either.

Here's what you do today:

Step 1: Assess Where You Are

Take the free 2-minute readiness quiz. It'll tell you:

  • How far you are from compliant
  • What gaps you need to fix
  • Rough cost estimate

No signup, no sales pitch. Just a score.

Step 2: Get a Gap Assessment

Hire a consultant (or use an internal IT person) to do a formal gap assessment against NIST SP 800-171.

This costs $5K-$10K and takes 2-4 weeks. You'll get a report listing exactly what's broken.

Step 3: Start Fixing Gaps

The big ones to tackle first:

  • Multi-factor authentication (MFA) on all accounts
  • Encrypted backups (offsite and tested)
  • Network segmentation (CUI isolated from guest WiFi)
  • Asset inventory (know what devices you have)
  • Incident response plan (what to do when you get hacked)

Most of this is technical work. Budget 2-3 months.

Step 4: Document Everything

CMMC requires written policies. You need:

  • Access control policy
  • Incident response plan
  • Media sanitization procedures
  • Password requirements
  • Security awareness training records

Boring paperwork. But required. Budget 1-2 months.

Step 5: Schedule the C3PAO Assessment

Once your gaps are fixed and policies are documented, book a C3PAO.

Expect to wait 4-8 weeks for an available slot. Then 1-2 weeks for the actual assessment.

Pass the assessment, get your certification, bid on contracts.

Bottom Line

November 10, 2026 is 324 days away. Less than 11 months.

Phase 1 already started — CMMC requirements are appearing in contracts RIGHT NOW.

If you're not certified by November 2026, you're locked out of DoD contracts.

If you're waiting for another extension, you're gambling.

If you're hoping your prime will let it slide, they won't.

You have 5-7 months of work ahead. Start TODAY or start losing revenue in November 2026.

Next step: Take the free quiz. 2 minutes. See where you stand. Then decide if you're in or out.