More than half of DoD suppliers are failing to meet essential governance control requirements under CMMC 2.0, exposing significant risks across the defense supply chain. The report shows that success is not driven by organization size or external partners, but by disciplined measurement and formalized supplier controls. Organizations that track effectiveness metrics and enforce contractual security requirements achieve stronger encryption outcomes and reduced risk exposure. However, adoption of key practices—particularly supplier contract enforcement—remains inconsistent. With vendor compliance emerging as the most persistent challenge, the findings highlight that CMMC readiness depends on structured governance, continuous measurement, and tighter third-party risk management.

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