CMMC for Machine Shops

Specific CMMC Guide for Machine Shop Businesses

If your machine shop manufactures parts for defense contractors, you need CMMC certification to continue bidding on Department of Defense work. This “CMMC for Machine Shops” requirement applies whether you are a prime contractor or a subcontractor five tiers deep in the supply chain.

CMMC stands for Cybersecurity Maturity Model Certification, the DoD’s mandatory program requiring defense contractors to prove their cybersecurity meets federal standards.

Starting in 2025, contracting officers cannot award contracts to machine shops without the required CMMC certification level. This guide explains exactly what precision manufacturers need to know.

Why Machine Shops Need CMMC Certification

Machine shops occupy a critical position in the defense supply chain. When you manufacture components for military aircraft, naval vessels, weapons systems, or tactical vehicles, you handle sensitive technical information that adversaries want to steal.

This information includes:

• Technical drawings and specifications
• Material certifications and test results
• Tolerances and manufacturing processes
• Assembly instructions and quality requirements
• Delivery schedules and quantities

Even if you think your shop only makes simple parts, the aggregation of information across multiple orders can reveal sensitive details about defense programs. Foreign adversaries have targeted small manufacturers specifically because they often have weaker cybersecurity than large prime contractors.

Determining Your Required CMMC Level

Your required CMMC level depends on the type of information you handle, not your company’s size.

CMMC Level 1 applies to machine shops that only handle Federal Contract Information (FCI). FCI includes basic contract details like purchase orders, delivery schedules, and payment information. Level 1 requires 15 basic cybersecurity practices and allows annual self-assessment.

Federal Contract Information (FCI) is information provided by or generated for the government under contract that is not intended for public release.

CMMC Level 2 applies to machine shops that handle Controlled Unclassified Information (CUI). If you receive technical drawings marked with distribution statements, ITAR data, or specifications for defense components, you likely handle CUI. Level 2 requires 110 security controls from NIST SP 800-171 and typically requires third-party assessment.

Controlled Unclassified Information (CUI) is sensitive government information requiring protection under federal regulations but not classified as secret or top secret.

How to identify your level: Review your contracts for DFARS clause 252.204-7012. If present, you handle CUI and need Level 2. Also, check for CUI markings on drawings and specifications you receive from customers.

Common CMMC Challenges for Machine Shops

Machine shops face unique compliance challenges compared to office-based businesses.

Shop Floor Computers

CNC machines, CMMs, and other shop floor equipment often run outdated operating systems that cannot receive security updates. These systems may connect to networks to receive programs or upload inspection data. You must either isolate these systems from CUI or implement compensating controls.

Technical Drawing Storage

Many shops store customer drawings on shared drives without access controls. CMMC requires you to limit access to CUI based on job responsibilities and track who accesses sensitive files.

Email Security

Receiving drawings and specifications via email creates compliance challenges. Standard email services like Gmail or basic Microsoft 365 do not meet CMMC requirements for protecting CUI. You need either encrypted email solutions or secure file transfer methods.

Physical Security

Machine shops must control physical access to areas where CUI is stored or processed. This includes locking file cabinets containing drawings, restricting shop floor access to authorized personnel, and implementing visitor procedures.

Third-Party Software

CAD/CAM software, ERP systems, and quality management tools that store CUI must meet federal security requirements. Cloud-based solutions must achieve FedRAMP authorization or equivalent.

Step-by-Step Compliance for Machine Shops

Step 1: Identify Your CUI

Map exactly where sensitive information exists in your shop. This includes digital files, paper drawings, information stored in ERP systems, and data on shop floor computers. Document what information you receive, where you store it, and who can access it.

Step 2: Limit Your Scope

You do not need to apply CMMC controls to your entire IT environment. Create a defined boundary around systems that store, process, or transmit CUI. The smaller your scope, the less expensive compliance becomes.

Many machine shops create a separate network segment for handling CUI, keeping shop floor equipment and general business systems outside the compliance boundary.

Step 3: Address the 110 Controls

For Level 2, you must implement 110 security controls across 14 domains including access control, audit logging, incident response, and system protection. Some controls require technology solutions while others require documented policies and procedures.

Focus first on high-impact controls:

• Multi-factor authentication for all users accessing CUI
• Encryption for CUI at rest and in transit
• Endpoint detection and response on computers handling CUI
• Regular security awareness training for employees
• Documented incident response procedures

Step 4: Create Required Documentation

CMMC requires a System Security Plan (SSP) describing how you implement each control. You also need policies and procedures for access control, incident response, and other security domains. Machine shops often underestimate the documentation burden.

Step 5: Conduct Gap Assessment

Before your official assessment, identify gaps between your current state and CMMC requirements. Address critical gaps before scheduling your certification assessment.

Step 6: Schedule Your Assessment

For Level 2, contact a Certified Third-Party Assessment Organization (C3PAO) to schedule your assessment. Assessment availability is limited, so plan ahead.

C3PAO stands for Certified Third-Party Assessment Organization, companies authorized by the Cyber AB to conduct official CMMC assessments.

Costs for Machine Shop Compliance

Compliance costs vary significantly based on your starting point and scope size. Small machine shops with minimal existing security typically spend $30,000 to $100,000 achieving Level 2 compliance, including technology, consulting, and assessment fees.

Cost factors include:

• Current cybersecurity maturity
• Number of systems in scope
• Need for new technology solutions
• Internal versus external resources
• Consulting and assessment fees

Many shops reduce costs by minimizing scope, using managed security services, and leveraging compliance platforms that streamline documentation.

Key Takeaways for Machine Shops

Machine shops handling DoD work must achieve CMMC certification starting in 2025. Your required level depends on whether you handle FCI (Level 1) or CUI (Level 2). Shop floor equipment, technical drawings, and email handling create unique challenges for precision manufacturers.

Start by identifying where CUI exists in your environment, then limit your compliance scope to reduce costs. Budget adequate time for implementation—most shops need 6-12 months to achieve Level 2 certification.

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Related Articles:

• What is CMMC Compliance?
• CMMC Scoping: What Systems and Data Are Covered?
• What is Controlled Unclassified Information (CUI)?
• 32 CFR Part 170 – CMMC Program Rule
• NIST SP 800-171 Rev 2
• CMMC Level 2 Scoping Guide

Official Sources: This article is based on 32 CFR Part 170 “Cybersecurity Maturity Model Certification Program” (effective December 16, 2024), NIST SP 800-171 Revision 2 “Protecting Controlled Unclassified Information in Nonfederal Systems and Organizations,” and DoD CMMC Scoping Guidance documents.

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Need help getting your machine shop CMMC compliant? Contact Greypike for expert guidance tailored to manufacturing environments.