As with most compliance regulations, there are penalties for not achieving certification, such as fines or reputational damage. However, not meeting CMMC certification can also result in the loss of all DoD contracts, prosecution under the False Claims Act, and ineligibility to participate in any DoD work once CMMC is fully implemented — with phased requirements beginning October on November 10th 2025. This means your organization will be unable to win new contracts or maintain existing ones due for renewal, leading to significant lost revenue opportunities.
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