The Role of Primes & Subcontractors in CMMC Compliance: Why Proof of Compliance Is No Longer Optional
If your business relies on subcontracting work from primes dealing with the Department of Defense (DoD), your CMMC compliance journey may not be as straightforward as you think. Even if your contract doesn’t explicitly require Level 2 certification, your prime contractor might.
During our recent webinar featuring top CMMC experts, one of the most crucial topics discussed was the flow-down responsibility of primes and how they are increasingly demanding proof of compliance from their subcontractors.
Understanding this dynamic can be the difference between maintaining valuable contracts and losing them altogether. Let’s dive in.
Why Primes Are Enforcing Level 2 Compliance (Even When It’s Not Required)
The Cybersecurity Maturity Model Certification (CMMC) framework was designed to ensure that companies within the Defense Industrial Base (DIB) are adequately protecting Federal Contract Information (FCI) and Controlled Unclassified Information (CUI).
But here’s the catch: Even if the DoD contract doesn’t specifically require Level 2 certification, many prime contractors are enforcing this standard anyway. Why?
1. Risk Mitigation
Primes are responsible for ensuring that their subcontractors meet the required security standards. If one of their subs fails to comply, the prime contractor could face contract termination or severe penalties.
Webinar Insight:
“If the contract is marked CUI, the prime has to ensure that everyone downstream is compliant. They can’t assume anything. And they certainly can’t just take your word for it.” — Robert Ashcraft, CMMC Solutions
2. Avoiding Legal Liability
The False Claims Act (Lincoln’s Law) gives the Department of Justice (DOJ) the power to penalize companies submitting false attestations about their cybersecurity compliance. If a subcontractor falsely attests to compliance, the prime contractor could also face legal and financial consequences if they didn’t properly vet their subs.
Webinar Insight:
“Most primes would rather demand Level 2 compliance from their subs than risk facing the DOJ’s scrutiny. It’s better to be safe than sorry.” — Chris Haigh, CMMC Expert
3. Long-Term Strategic Planning
Primes are looking to the future. As CMMC requirements expand beyond the DoD to other federal agencies, primes want to ensure that their subcontractors are ready to meet higher compliance standards.
Understanding Flow-Down Responsibility
The concept of flow-down responsibility is simple: If a prime contractor is required to meet certain CMMC requirements, those requirements flow down to their subcontractors. This is especially true if the subcontractor is handling any CUI or is part of a critical process related to the contract.
Webinar Insight:
“Even if a sub’s role is minor, if they’re touching anything related to CUI, they’re in scope for Level 2 compliance. And the prime has to make sure of that.” — Steve Palamara, Lifeline Data Centers
How Flow-Down Responsibility Works:
- Prime Contractors Are Held Accountable:
- The DoD places responsibility on primes to ensure their subcontractors are compliant.
- If a subcontractor fails an assessment, the prime contractor could lose the entire contract.
- Subcontractors Must Prove Compliance:
- Primes often demand evidence of CMMC Level 2 certification before awarding contracts, even if the subcontractor only requires Level 1 certification.
- No Exceptions:
- Flow-down applies to all subcontractors, regardless of their size or specific role.
How Primes Are Verifying Subcontractor Readiness
Prime contractors are no longer willing to accept vague claims of compliance. They’re implementing stricter vetting processes to protect themselves from potential liability.
The Rise of Compliance Questionnaires
One of the most common ways primes verify compliance is through detailed questionnaires. These can be 10 to 20 pages long, asking subcontractors to provide specifics about:
- Security controls in place.
- Policies & procedures related to CUI.
- Evidence of completed self-assessments (for Level 1).
- Proof of third-party certification (for Level 2).
Webinar Insight:
“We’re seeing more and more primes sending out compliance questionnaires to their subs. If you can’t answer those questions confidently, you’re already at a disadvantage.” — Kelly Kendall, KNC Strategic Services
What Primes Are Asking For:
- Screenshots of SPRS submissions (for Level 1).
- Certification documentation from a C3PAO (for Level 2).
- Shared Responsibility Matrices (SRM) when subcontractors use MSPs.
- Detailed explanations of cybersecurity practices.
Best Practices for Subcontractors to Prove Compliance
If you want to stay competitive and avoid losing contracts to more prepared companies, here’s what you need to do:
1. Obtain Certification Before It’s Required
- If a prime contractor is pushing for Level 2 certification, start the process now.
- Don’t assume that your existing Level 1 status will be enough.
2. Prepare Documentation & Evidence
- Maintain thorough records of your compliance process, including all policies, procedures, and security controls.
- Be ready to provide screenshots, certificates, and other evidence upon request.
3. Work with Qualified Consultants
- Hire experts verified through the Cyber AB Marketplace (cyberab.org).
- Look for consultants with credentials such as Certified CMMC Professionals (CCPs) or Certified CMMC Assessors (CCAs).
Make Compliance Simple with USGovCert Tool
Don’t leave your compliance to chance. The USGovCert Tool can help you:
- Organize documentation & evidence effortlessly
- Streamline your self-assessment process
- Prepare for assessments with ease
- Stay ahead of evolving standards and regulations
Take a Free Demo of USGovCert Tool Now! — Be fully prepared when the primes come knocking.