As with most compliance regulations, there are penalties for not achieving certification, such as fines or reputational damage. First, for affected contracts, you will be ineligible to be awarded any new contracts with the CMMC requirement if you are not certified at the appropriate level. In addition, if you have existing contracts, you are already supposed to have implemented the appropriate controls. If it is determined that you were not in compliance, you can face prosecution under the False Claims Act and ineligibility to participate in any DoD work once CMMC is fully implemented. To set the stage, the phased implementation of CMMC began on November 10th, 2025. Moving forward, your ability to win new contracts or maintain existing ones due for renewal will be limited, leading to significant lost revenue opportunities.
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