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Security your contracts require, and a score you can defend.

Macomb County is the center of Michigan’s defense industry. If you handle Controlled Unclassified Information, the government expects real NIST SP 800-171 controls, evidence to back them up, and an honest score in SPRS.

  • Prime contractors and subcontractors
  • Tier 2 and Tier 3 defense suppliers
  • Engineering, test and prototype shops
  • Software and IT services contractors
  • Federal, state and local government vendors
  • Companies bidding on their first defense contract

What makes defense contractor IT different

Macomb County companies received $3.21 billion in Defense Department contracts in 2024, about 65% of Michigan’s defense contract dollars, with TACOM and the Ground Vehicle Systems Center at the Detroit Arsenal in Warren. That work comes with flowdown clauses, and they reach well past the primes.

The core requirement hasn’t changed in years: DFARS 252.204-7012, the 110 requirements in NIST SP 800-171 for any system that handles CUI, and a self-assessment score posted in SPRS. CMMC was meant to add third-party verification. The Pentagon suspended that phase in July 2026 for a review and, as of October 2026, hasn’t announced a new date. The obligations already in your contract still stand.

With self-assessment, your score is a representation to the government. The Justice Department has used the False Claims Act against contractors whose cybersecurity claims didn’t match reality. Getting the evidence right matters more now, not less.

Rules you may answer to

Your contract clauses tell you which of these apply. If you handle CUI, it’s usually all of them.

DFARS 252.204-7012
Safeguard covered defense information with NIST SP 800-171, report cyber incidents to the Defense Department within 72 hours, and flow the clause down to subcontractors that handle it.
NIST SP 800-171
The 110 security requirements for protecting CUI on contractor systems. Defense contracts currently assess against Revision 2.
DFARS 252.204-7019 and 7020 (SPRS)
A current NIST SP 800-171 assessment score must be posted in the Supplier Performance Risk System before award, and the government can verify it.
CMMC
Level 1 covers Federal Contract Information with an annual self-assessment. Level 2 covers CUI. With Phase II suspended, a Level 2 self-assessment is the highest level a contract can currently require, along with annual affirmations by a senior official.
FedRAMP Moderate equivalency
Cloud services that store or process CUI must be FedRAMP Moderate authorized or meet the Defense Department’s equivalency requirements, which rules out most consumer and many standard business cloud plans.

Where defense contractors get hurt, and how I close the gap

Most of the defense supply chain says it’s compliant. The data says many contractors couldn’t prove it today. Here’s where the gaps are, with the numbers behind them and what I do about each.

  1. 1%of defense contractors surveyed in 2026 said they were completely ready for CMMC certification

    Ready on paper only

    The average self-reported SPRS score climbed to +51, yet contractors’ confidence that their own scores were accurate fell from 89% to 65% in a year.

    What I doAn evidence-based gap assessment against all 110 requirements, a system security plan that describes what you actually run, and a plan of action that closes gaps in priority order.

    Source: CyberSheath, 2026 State of the Defense Industrial Base

  2. $507,144paid in June 2026 by a contractor whose self-reported score didn’t survive a government assessment

    A score that won’t hold up

    The case didn’t start with a breach or a whistleblower. Government assessors checked the contractor’s NIST SP 800-171 score and found it dramatically overstated. Third-party certification is paused; this kind of enforcement isn’t.

    What I doA score built from evidence you can show an assessor, reviewed every year, with a senior official who understands what they’re affirming.

    Source: Arnold & Porter, on the LOGZONE settlement (June 2026)

  3. 27%of defense contractors surveyed had deployed multi-factor authentication

    Basic controls still missing

    Multi-factor sign-in is one of the 110 requirements and one of the cheapest defenses there is. Only 25% had endpoint detection and response. Without these, one phished password can reach every CUI file the account can.

    What I doMulti-factor sign-in everywhere CUI lives, starting with email, remote access and admin accounts, plus monitored endpoint protection on every computer in scope.

    Source: CyberSheath, State of the DIB Report 2025

  4. 72 hoursto report a cyber incident affecting covered defense information to the Defense Department

    No plan for reporting an incident

    DFARS 7012 also requires a DoD-approved medium assurance certificate to file the report and preserving images of affected systems for 90 days. Learning that in the middle of an incident costs time you don’t have.

    What I doAn incident response plan built around the DFARS reporting steps, the certificate in hand before you need it, and logs and backups that preserve the evidence.

    Source: DFARS 252.204-7012, Acquisition.gov

Where AI helps, and where it needs guardrails

AI can speed up proposals, compliance paperwork and technical writing. For anything involving CUI, the tool and the cloud behind it must be approved for CUI first, and the standard versions of popular AI services don’t qualify.

Good places to start

  • Proposal sections and past-performance write-ups drafted from non-CUI material
  • Policies and procedures for the NIST SP 800-171 control families
  • Summarizing solicitations, clauses and amendments
  • Training materials on handling and marking CUI
  • AI tools hosted in government cloud environments for work that involves CUI

Keep out of AI tools unless approved

  • CUI and technical drawings in standard AI tools
  • Export-controlled data in any tool not approved for it
  • System security plans, network diagrams and vulnerability findings
  • Personal AI accounts and browser extensions on systems inside your CUI boundary

How a secure AI setup works

Put AI to work inside the CUI boundary

Defense suppliers can use the same vision and predictive tools as any plant. The difference is where they run. I build them inside an environment that meets your DFARS and NIST SP 800-171 obligations, not around them.

Inspection and traceability

Computer vision for inspection and part traceability, run at the edge or in government cloud so controlled data stays controlled.

What it covers

  • Visual inspection and assembly verification at the line
  • Part marking and serial number reading
  • Inspection images kept as quality records
  • Processing on edge devices inside your boundary

Best forSuppliers making parts to defense drawings and specs.

  • Fewer escapes
  • Traceable records
  • CUI kept in bounds

Compliance evidence automation

The evidence your NIST SP 800-171 assessment needs, collected continuously instead of the week before someone asks.

What it covers

  • Configuration and patch evidence collected automatically
  • Alerts when a control drifts out of compliance
  • Access reviews scheduled and documented
  • System security plan kept in step with what you actually run

Best forContractors maintaining a SPRS score with a small team.

  • A defensible score
  • Less audit scramble
  • Earlier warnings

How it gets set up

  • Cloud services that meet FedRAMP Moderate or the DoD equivalency requirements for anything touching CUI.
  • Edge processing on the plant floor so drawings and images don’t leave the boundary.
  • Every new system scoped into your system security plan before it goes live.

AI consulting & integration · Agentic operations

Common questions

Are you a CMMC assessor?

No. Certification assessments are performed by authorized third-party assessment organizations (C3PAOs). I help you get ready: scoping, a gap assessment against NIST SP 800-171, remediation and documentation, so your self-assessment holds up today and a certification assessment goes smoothly when it returns.

CMMC certification is suspended. What do we actually have to do now?

Everything already in your contract. DFARS 252.204-7012 and NIST SP 800-171 still apply, your SPRS score must be current and accurate, and contracts can still require a CMMC Level 1 or Level 2 self-assessment with annual affirmations. The suspension paused third-party certification, nothing else.

Can we keep CUI in regular Microsoft 365?

Generally not. CUI has to live in a cloud environment that meets FedRAMP Moderate or the Defense Department’s equivalency requirements, which usually means a government cloud offering. Scoping that boundary correctly is one of the first things I help with.

We’re a small shop with one defense customer. Where do we start?

With scope. Find out exactly what CUI or Federal Contract Information you receive, where it goes and who touches it. Keeping that footprint small is the cheapest compliance decision you’ll ever make.

Know your score is real.

Bring the contract clause, the flowdown or the prime’s questionnaire. You’ll get a straight read on where you stand and what it takes to close the gaps.