CMMC compliance costs for North Carolina defense contractors typically range from $50,000 to $300,000 or more for Level 2 certification, depending on organization size, current security posture, and scope of CUI handling. The total investment includes gap assessments ($5,000-$25,000), remediation ($50,000-$500,000), C3PAO certification assessment ($25,000-$75,000), and ongoing maintenance ($2,000-$10,000 per month).
Key takeaway: According to DoD cost estimates in the 32 CFR final rule, small defense contractors (under 500 employees) should budget approximately $104,670 for the complete certification process, including assessment preparation ($20,699), the C3PAO assessment itself ($76,743), results reporting ($2,851), and annual affirmations ($4,377 over three years). However, this does not include remediation costs, which often represent 60-70% of the total investment.
With CMMC Phase 1 enforcement beginning November 10, 2025, North Carolina defense contractors from the Piedmont Triad to the Research Triangle must understand these costs now. Companies near Fort Liberty, Cherry Point, and throughout the Charlotte metropolitan area face immediate compliance deadlines that determine their eligibility for future DoD contract work.
Need a clear CMMC budget for your NC operation? Preferred Data Corporation provides comprehensive CMMC cost assessments for North Carolina defense contractors and manufacturers. With 37+ years of IT expertise and BBB A+ accreditation, we help you understand exactly what compliance will cost. Call (336) 886-3282 or schedule your assessment.
Understanding CMMC Cost Components
CMMC compliance is not a single expense but a multi-phase investment spanning 12-18 months. For North Carolina contractors in High Point, Greensboro, and the surrounding Piedmont Triad region, understanding each cost component helps you budget effectively and avoid surprises.
Phase 1: Gap Assessment ($5,000-$25,000)
The gap assessment identifies where your current security posture falls short of NIST SP 800-171 requirements. This foundational step determines the scope and cost of everything that follows.
What a gap assessment includes:
- Review of existing security policies and procedures
- Technical evaluation of network architecture and controls
- Assessment of current SPRS (Supplier Performance Risk System) score
- Identification of all systems that process, store, or transmit CUI
- Documentation gap analysis against all 110 NIST 800-171 controls
- Prioritized remediation roadmap with cost estimates
Cost factors:
- Organization size (10-person shop vs. 200-person manufacturer)
- Number of locations requiring assessment
- Complexity of IT environment
- Current documentation maturity
According to Secureframe's CMMC cost analysis, small-to-medium-sized companies typically spend between $5,000 and $20,000 on initial readiness activities. For North Carolina manufacturers with complex OT environments spanning facilities in Winston-Salem, Burlington, or Lexington, expect costs toward the higher end.
Phase 2: Remediation ($50,000-$500,000)
Remediation represents the largest cost component, typically accounting for 60-70% of total CMMC investment. This phase involves implementing the technical controls, policies, and procedures identified during the gap assessment.
Common remediation costs for NC contractors:
- Security infrastructure upgrades: $15,000-$100,000 (firewalls, SIEM, endpoint protection)
- Multi-factor authentication deployment: $5,000-$20,000
- Encrypted communications and storage: $10,000-$50,000
- Policy and procedure documentation: $10,000-$30,000
- Security awareness training program: $5,000-$15,000
- Incident response plan development: $5,000-$15,000
- Physical security improvements: $5,000-$25,000
- Network segmentation and CUI enclave: $20,000-$100,000
According to PreVeil's analysis of CMMC costs, strong remediation planning can lower overall costs by 15-25%, whereas weak planning can add 8-12 months to the timeline.
Phase 3: C3PAO Assessment ($25,000-$75,000)
The third-party assessment by a CMMC Third-Party Assessment Organization (C3PAO) is the formal certification step. According to DoD estimates, Level 2 C3PAO assessments cost between $105,000 and $118,000 for the complete process when accounting for all internal preparation and staff time.
Assessment-only fees from C3PAOs typically range from $30,000 to $75,000, depending on:
- Number of in-scope assets and locations
- Complexity of the CUI environment
- Assessment duration (typically 3-5 days on-site)
- Assessor travel costs for NC locations
Important for NC contractors: The pool of approved C3PAO assessors remains limited. As of early 2026, wait times can stretch 3-6 months. Contractors in Charlotte, Raleigh, and Durham should begin scheduling assessments well before their compliance deadlines.
Phase 4: Ongoing Maintenance ($2,000-$10,000/month)
CMMC is not a one-time achievement. Maintaining compliance requires continuous investment in monitoring, updates, and annual affirmations.
Monthly ongoing costs include:
- Security monitoring and SIEM management: $1,000-$5,000/month
- Vulnerability scanning and patch management: $500-$2,000/month
- Security awareness training (continuous): $200-$500/month
- Policy review and documentation updates: $500-$1,500/month
- Annual affirmation preparation: $1,000-$3,000 annually
- Recertification every three years: Similar to initial assessment costs
Cost Breakdown by CMMC Level
Level 1 (FCI Only): $5,000-$30,000
Level 1 requires implementation of 17 basic cyber hygiene practices with annual self-assessment. Most Greensboro and High Point area small contractors handling only Federal Contract Information fall into this category.
- Self-assessment preparation: $3,000-$10,000
- Basic security controls implementation: $5,000-$20,000
- Annual affirmation: $1,000-$3,000
Level 2 (CUI): $100,000-$500,000+
Level 2 requires all 110 NIST SP 800-171 controls and C3PAO certification for most contractors. This is where the majority of North Carolina defense manufacturers and subcontractors will land.
According to Kiteworks' comprehensive budget guide, the total three-year cost of Level 2 compliance ranges from $150,000 to $400,000, with the assessment itself representing only 15-30% of total costs.
Level 3 (Enhanced CUI): $250,000-$1,000,000+
Level 3 adds 24 controls from NIST SP 800-172 and requires government-led DIBCAC assessment. Few NC contractors require this level unless working on the most sensitive DoD programs.
DIY vs. Managed Service Provider: Cost Comparison
North Carolina contractors face a critical decision: handle CMMC compliance internally or partner with a managed service provider. Here is how the costs compare for a typical 50-person manufacturer in the Piedmont Triad.
DIY Approach
- Pros: Lower direct costs, internal knowledge retention
- Cons: Longer timeline (18-24 months), requires dedicated staff, higher risk of failed assessment
- Estimated total cost: $150,000-$300,000 (including internal staff time)
- Hidden costs: Staff diversion from core business, learning curve, potential failed assessments
Managed Service Provider Approach
- Pros: Faster timeline (9-14 months), proven methodologies, ongoing support
- Cons: Higher monthly costs, vendor dependency
- Estimated total cost: $120,000-$250,000 (including managed services)
- Hidden savings: No full-time compliance hire ($80,000-$120,000 salary), reduced assessment failure risk
PDC Insight: For most North Carolina defense contractors with fewer than 100 employees, partnering with an experienced managed IT provider who understands CMMC delivers faster certification at lower total cost than building internal capabilities from scratch.
Ready to compare your options? Preferred Data helps North Carolina defense contractors choose the right CMMC approach for their size and budget. Call (336) 886-3282 or request a cost comparison.
Strategies to Reduce CMMC Costs
1. Reduce CUI Scope with an Enclave Strategy
The single most effective cost reduction strategy is limiting where CUI lives in your environment. A well-designed CUI enclave might secure 20 workstations instead of 200, according to Totem Technologies, dramatically reducing both remediation and assessment costs.
2. Leverage Cloud-Based Solutions
Microsoft 365 GCC High and other FedRAMP-authorized cloud solutions can satisfy many NIST 800-171 controls out of the box, reducing the number of controls you must implement yourself.
3. Start with a Gap Assessment Early
Companies that begin gap assessments 18+ months before their compliance deadline save money by spreading remediation costs across budget cycles rather than rushing implementation.
4. Consolidate with a Single Provider
Using one managed IT provider for gap assessment, remediation, and ongoing compliance management eliminates duplicated onboarding costs and ensures consistency.
5. Take Advantage of Available Resources
North Carolina contractors can access resources through the NC Military Business Center and local Small Business Development Centers for compliance planning assistance.
North Carolina-Specific Cost Considerations
Defense contractors across North Carolina face unique cost factors based on their location and industry focus:
Piedmont Triad (High Point, Greensboro, Winston-Salem): Manufacturing-heavy region with significant OT/IT integration challenges that can increase remediation costs 20-30%.
Research Triangle (Raleigh, Durham, Chapel Hill): Technology-focused contractors often have stronger security baselines, potentially reducing remediation costs 15-25%.
Charlotte Metro: Large enterprises with multiple locations face higher assessment costs due to scope complexity.
Fayetteville/Fort Liberty Area: Heavy concentration of defense contractors creates local demand for C3PAO assessors, potentially reducing travel costs.
Eastern NC (Cherry Point, Camp Lejeune): Aerospace and marine contractors often handle more sensitive CUI, pushing toward higher compliance requirements.
Timeline and Budget Planning
For North Carolina contractors starting their CMMC journey in 2026, here is a realistic timeline and budget allocation:
Months 1-2: Gap Assessment Phase
- Budget: $10,000-$25,000
- Activities: Initial assessment, scope determination, roadmap development
Months 3-8: Remediation Phase
- Budget: $50,000-$200,000
- Activities: Technical controls implementation, policy development, training
Months 9-12: Pre-Assessment Preparation
- Budget: $15,000-$30,000
- Activities: Internal audit, evidence gathering, SSP finalization, mock assessment
Months 12-14: C3PAO Assessment
- Budget: $30,000-$75,000
- Activities: Formal assessment, evidence presentation, POA&M resolution
Ongoing: Maintenance
- Budget: $3,000-$8,000/month
- Activities: Monitoring, updates, annual affirmations
Common Cost Mistakes NC Contractors Make
- [ ] Underestimating remediation scope (budget 20% contingency)
- [ ] Waiting until a contract requires CMMC to begin (12-18 month lead time needed)
- [ ] Skipping the gap assessment and jumping to remediation
- [ ] Not scoping CUI properly (larger scope means larger cost)
- [ ] Ignoring ongoing maintenance costs in initial budgeting
- [ ] Hiring a general IT firm without CMMC-specific experience
Frequently Asked Questions
How much does CMMC Level 2 certification cost for a small NC contractor?
For a small North Carolina defense contractor (10-50 employees) with a moderate IT environment, expect total CMMC Level 2 costs between $100,000 and $200,000 over 12-18 months. This includes gap assessment, remediation, C3PAO assessment, and first-year maintenance. Companies with existing NIST 800-171 controls in place may spend significantly less.
Can I spread CMMC compliance costs across multiple budget years?
Yes. Many Piedmont Triad and Charlotte area contractors begin gap assessments in one fiscal year and complete remediation across the next 1-2 years. Starting early gives you the flexibility to phase spending. However, with Phase 2 enforcement beginning November 2026, contractors handling CUI cannot delay indefinitely.
Is CMMC compliance a tax-deductible business expense?
CMMC compliance costs are generally deductible as ordinary and necessary business expenses for defense contractors. Consult your tax advisor for specific guidance on capital vs. operational expense treatment for hardware investments versus service fees.
What happens if I fail the C3PAO assessment?
If you fail, you receive a conditional certification with a Plan of Action and Milestones (POA&M) to address deficiencies within 180 days. However, a failed assessment still costs the full assessment fee, making proper preparation essential. Working with an experienced cybersecurity partner significantly reduces failure risk.
Are there grants or funding available for NC CMMC compliance?
North Carolina defense contractors may access resources through DoD SBIR/STTR programs, the NC Military Business Center, and local SBDCs. While direct CMMC grants are limited, the DoD has acknowledged the cost burden on small contractors and some prime contractors offer supply chain support programs.
Partner with High Point's Trusted CMMC Experts
Preferred Data Corporation has served North Carolina businesses for over 37 years from our High Point headquarters. Our BBB A+ rated team understands the unique challenges facing Piedmont Triad defense contractors and manufacturers pursuing CMMC compliance.
What sets PDC apart:
- Local, on-site support within 200 miles of High Point
- Deep understanding of manufacturing and defense industry IT requirements
- Comprehensive managed IT services that maintain compliance after certification
- Proven cybersecurity solutions aligned with NIST frameworks
- 20+ year average client retention demonstrating long-term partnership commitment
Take the first step toward understanding your CMMC costs. Call Preferred Data Corporation at (336) 886-3282 or request your free CMMC cost assessment today. We will provide a detailed, customized budget estimate for your specific compliance requirements.