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CMMC Phase 2 Began November 10, 2026: What Engineering Firms and Defense Suppliers Need Now

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October 26, 2026

7 min read

Since November 10, 2026, DoD solicitations can require a Level 2 certification from a C3PAO, not a self-assessment. For engineering, design and manufacturing firms that handle CUI as subcontractors, that is the line between bidding and not. The levels, the phase dates through 2028, the contract clauses behind them, and the enclave approach that keeps the scope small.

CMMC
CUI
DFARS
NIST SP 800-171
Defense Industrial Base

The CMMC acquisition rule was published on September 10, 2025 and took effect on November 10, 2025, adding clause 252.204-7021 to DFARS. Phase 1 put self-assessments into contracts. Phase 2, which began on November 10, 2026, adds third-party certification for Level 2.

The levels

Level

For

Requirements

Assessment

1

Federal contract information only

The 15 basic safeguarding requirements of FAR 52.204-21

Annual self-assessment

2

Controlled unclassified information (CUI)

The 110 requirements of NIST SP 800-171 Rev. 2

Self-assessment or certification by a C3PAO every three years, as the contract specifies, with annual affirmations

3

CUI in the highest-priority programs

Level 2 plus 24 requirements from NIST SP 800-172

Government assessment by DIBCAC

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The phases

From

What solicitations can require

November 10, 2025

Level 1 and Level 2 self-assessments

November 10, 2026

Level 2 certification by a C3PAO

November 10, 2027

Level 3 certification

November 10, 2028

Full implementation across applicable contracts

What the clauses require

  • 252.204-7021: hold the required CMMC status for the life of the contract, affirm continuous compliance annually in SPRS, and flow the requirement down to subcontractors that handle the same information.

  • 252.204-7012: if a cloud provider stores, processes or transmits covered defense information, it must meet security requirements equivalent to the FedRAMP Moderate baseline. Report cyber incidents to DoD within 72 hours of discovery and keep affected images for at least 90 days.

Keep the scope small: an enclave

Most engineering firms handle CUI on a minority of projects. Certifying the whole company means every laptop, file share and SaaS tool is in scope. An enclave puts CUI work in a separate, controlled environment (cloud workstations, file storage, email and collaboration for CUI projects only) and certifies that. Everything else stays outside the assessment boundary.

  1. Find where CUI actually arrives and lives: contract documents, drawings, specifications, email.

  2. Decide the enclave: an AWS account structure in GovCloud or commercial US Regions, cloud workstations (Amazon DCV or WorkSpaces), and a CUI-capable email and file platform.

  3. Implement and document the 110 requirements for that boundary, with a system security plan.

  4. Run a mock assessment, close gaps, then book a C3PAO. Only some requirements may be on a plan of action and milestones at assessment, and those must be closed within 180 days.

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As of October 26, 2026. Provided as is, for general information, and accurate to the best of our knowledge on the date shown. Not legal, compliance, tax, financial or other professional advice. Prices, limits and vendor services change; check current vendor documentation before relying on anything here. Terms of use.