Bloomberg Law
Aug. 11, 2021, 9:30 AM UTCUpdated: Aug. 11, 2021, 1:58 PM UTC

Defense Industry Waits on Costly Trump-Era Cyber Rule Update (1)

Chris Cornillie
Federal Market Analyst

The defense industry is eagerly awaiting the results of the Biden administration’s internal review of a Trump-era cybersecurity standard, and some small defense companies and industry groups say the new cyber requirements could cost the industry billions of dollars more than the Pentagon’s initial estimates.

The cost of compliance could drive one in four suppliers to stop doing business with the Defense Department, according to one study—potentially a major blow to small defense companies and the Pentagon’s ability to do business with small innovators.

The Cybersecurity Maturity Model Certification, or CMMC, would require every company in the Pentagon supply ...

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