The Department of Defense (DoD) has intensified its focus on cybersecurity to protect Controlled Unclassified Information (CUI) within the Defense Industrial Base (DIB). The Cybersecurity Maturity Model Certification (CMMC) 2.0, finalized on October 15, 2024, and operational in the Supplier Performance Risk System (SPRS) as of February 28, 2025, mandates stringent compliance for contractors bidding on DoD contracts. A key challenge for many defense contractors lies in managing complex IT environments that involve External Service Providers (ESPs) and Cloud Service Providers (CSPs) while ensuring alignment with CMMC requirements. At Squad47, we understand the intricacies of these demands and offer managed IT services to help contractors navigate this landscape with clarity and confidence, ensuring compliance without compromising operational efficiency.

The CMMC 2.0 Compliance Challenge

CMMC 2.0 is designed to safeguard CUI and Federal Contract Information (FCI) across three levels of increasing rigor, impacting approximately 220,000 contractors. Level 2, relevant to most contractors handling CUI, requires compliance with 110 NIST SP 800-171 Revision 2 requirements, verified through self-assessments or third-party assessments by CMMC Third-Party Assessment Organizations (C3PAOs). The updated rule clarifies the role of ESPs and CSPs, placing significant responsibility on contractors to include these providers in their assessment scope. For instance, ESPs processing CUI or Security Protection Data (SPD)—such as admin credentials or log files—must be documented in the contractor’s System Security Plan (SSP) and assessed as Security Protection Assets (SPAs). CSPs handling CUI must meet FedRAMP Moderate equivalency, while those managing SPD are also subject to assessment.

This creates practical challenges for contractors:

• Complex Scoping: Defining the CMMC assessment scope, especially when ESPs or CSPs are involved, requires precise documentation of assets, network diagrams, and data flows. Missteps, such as undefined CUI boundaries or undocumented SPAs, can lead to audit failures.
• Resource Constraints: Many small and medium-sized contractors lack the in-house expertise to manage compliance alongside daily operations, particularly when coordinating with multiple service providers.
• Cybersecurity Gaps: Ensuring continuous monitoring, incident response, and vulnerability management across distributed IT environments is resource-intensive, especially for firms reliant on ESPs for critical functions like Security Operations Centers (SOCs).
• Audit Readiness: Preparing evidence, such as training records or access control policies, and maintaining artifact integrity (e.g., hashed evidence per DoJ requirements) demands meticulous planning.

These challenges, compounded by the DoD’s phased CMMC rollout starting 60 days after the final Title 48 CFR rule, underscore the need for reliable IT management to maintain contract eligibility.

How Managed IT Services Add Value

As a Virginia-based MSP with deep expertise in DoD and IC requirements, Squad47 provides practical, compliance-focused IT services to address these challenges. Our approach is grounded in the DoD’s Command, Control, and Communications (C3) Modernization Strategy and DIB Cybersecurity Strategy, which emphasize resilient, secure IT systems. Here’s how we help contractors meet CMMC 2.0 requirements effectively:

1. Streamlined Scoping and Documentation: We assist in defining your CMMC assessment scope, ensuring all ESPs and CSPs are accurately documented in your SSP, asset inventory, and network diagrams. For example, we map out SPAs like SIEM tools or SOC services and clarify CSP roles to confirm FedRAMP compliance or equivalency, reducing the risk of audit discrepancies.
2. Continuous Compliance Monitoring: Our managed IT services include 24/7 network monitoring, vulnerability scanning, and patch management, aligning with NIST SP 800-171 requirements for continuous monitoring and risk assessment. This ensures your IT environment remains secure and audit-ready, even when leveraging ESPs for SOC or incident response functions.
3. Audit Preparation and Evidence Management: We help prepare and maintain compliance artifacts, such as training logs, access control policies, and hashed evidence, to meet CMMC and Department of Justice retention requirements. Our team guides you through self-assessments or C3PAO assessments, minimizing disruptions.
4. Secure Cloud Integration: For contractors using CSPs, we evaluate and configure cloud environments to meet FedRAMP Moderate equivalency, leveraging platforms like Microsoft 365 GCC High. We also ensure SPD handled by CSPs is properly assessed as SPAs, maintaining compliance without overcomplicating your IT stack.
5. Tailored Support for Resource-Limited Firms: Recognizing the constraints faced by smaller contractors, we offer flexible, virtual IT management—such as virtual CIO services—to align your IT strategy with CMMC goals. This allows you to focus on core operations while we handle compliance and cybersecurity.

Our services are designed to integrate seamlessly with your existing infrastructure, avoiding costly overhauls while meeting DoD standards. By leveraging our understanding of the DIB’s unique needs, we help you maintain operational continuity and secure your place in the DoD supply chain.

Real-World Impact

Consider a mid-sized defense contractor relying on an ESP for SOC services and a CSP for cloud storage. Without clear documentation, their CMMC Level 2 assessment could fail due to untracked SPAs or non-compliant CSP configurations. Squad47 steps in to map these assets, implement continuous monitoring, and prepare audit-ready evidence, ensuring compliance within the 180-day Plan of Action and Milestones (POA&M) window. This approach not only secures contract eligibility but also strengthens cybersecurity against advanced persistent threats, as emphasized in the DIB Cybersecurity Strategy.

Moving Forward with Confidence

CMMC 2.0 compliance is a critical step for defense contractors, but it doesn’t have to be overwhelming. Squad47’s managed IT services provide a practical path to compliance, offering expertise, structure, and ongoing support tailored to the DoD and IC landscape. Based in Virginia, we’re committed to helping contractors navigate these requirements with precision, ensuring your IT environment supports both mission success and regulatory demands.

If you’re seeking clarity on how to align your IT systems with CMMC 2.0, we’re here to help. Reach out to discuss how our managed IT services can address your specific needs, or visit our website to learn more about our compliance-focused solutions.

Squad47: Supporting the DIB with secure, compliant IT management for national security missions.