CMMC applicability

Who Needs CMMC Certification?

CMMC applies to DoD contractors and subcontractors that process, store or transmit FCI or CUI on contracts that include the CMMC clause (32 CFR 170.3; DFARS 252.204-7021). The contract sets which level you need.

By Doug Majewski, President, Athena Consulting Group, LLC · Last reviewed: October 19, 2026

Who it applies to

Prime contractors and subcontractors whose information systems process, store or transmit FCI or CUI in performance of a DoD contract with the CMMC requirement (32 CFR 170.3).

Flowdown to subcontractors

Primes must flow the CMMC requirement down to subcontractors that handle FCI or CUI, at the level that matches the information they handle (DFARS 252.204-7021).

The COTS exemption

CMMC does not apply to contracts or subcontracts solely for commercially available off-the-shelf (COTS) items (32 CFR 170.3).

A simple decision path

  1. Only FCI? → Level 1.
  2. CUI? → Level 2.
  3. CUI on a highest-priority program designated by DoD? → Level 3.

Notes for small businesses

Frequently asked questions

Do subcontractors need CMMC?

Yes, when they handle FCI or CUI. The prime flows the requirement down at the matching level (DFARS 252.204-7021).

Is anyone exempt from CMMC?

Contracts and subcontracts solely for COTS items are exempt (32 CFR 170.3).

How do I know which level I need?

The solicitation and contract state the level. FCI only generally means Level 1; CUI means Level 2 or, for designated programs, Level 3.

Further reading

Related Athena pages and authoritative external references.

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