Executive Summary
If you’re a defense contractor who has heard that CMMC compliance will cost hundreds of thousands of dollars, you’re not alone—and you’re not wrong to be concerned. However, these alarming cost projections are based on the widespread but incorrect assumption that compliance requires Microsoft’s Government Community Cloud High (GCCH)—which is indeed extremely expensive.
The reality is that GCCH, while costly, is just one compliance option among many. CMMC and DFARS standards are technology-agnostic and can be met through various approaches. For 90% of DIB companies—particularly small and medium businesses (SMBs) and large enterprises with limited defense exposure—dramatically more affordable paths exist that deliver compliance at a fraction of GCCH costs with significantly superior security.
The bottom line: Instead of spending $200,000-$500,000+ on GCCH implementation, most organizations can achieve robust CMMC compliance through solutions like PreVeil for as little as $5,000-$15,000 annually.
The Source of the Cost Confusion
The widespread belief that CMMC compliance is prohibitively expensive stems from a costly misconception centered around Microsoft’s Government Community Cloud High (GCCH).
Implementation Costs ($50,000-$200,000+):
- Rip-and-replace complexity: Complete IT infrastructure replacement requiring months of planning and expensive specialists
- Enterprise-wide deployment: Organizations often move entire workforces to GCCH regardless of actual CUI usage
- Extended timeline: Projects typically take 6-18 months with significant business disruption
Ongoing License Expenses (3x):
- Premium pricing: GCCH licenses cost 3x more than standard Office 365 licenses
- Supply chain impact: Expensive guest licenses required for suppliers and partners
Documentation Burden ($50,000+):
- Complex compliance documentation: Costs typically start at $50,000 and routinely exceed $100,000
- Ongoing maintenance: Documentation requires continuous updates as configurations change
How the GCCH-Only Misconception Spread
This expensive reality created a domino effect throughout the consulting ecosystem:
- Microsoft’s market dominance: As the leading enterprise IT platform, Microsoft solutions are the default recommendation
- Consultant incentives: GCCH’s complexity translates to higher fees and longer engagements
- Knowledge gap: Many consultants lack awareness of alternative compliance approaches
- Risk aversion: When uncertain, consultants recommend the most comprehensive (and expensive) solution
The result: DIB companies are routinely told that GCCH is the only path to compliance, creating a false choice between spending hundreds of thousands of dollars or exiting the defense market entirely.
The Reality: Proven Alternatives Exist
Here’s the critical insight: CMMC and NIST 800-171 compliance requirements are technology-agnostic. The standards specify security outcomes, not specific platforms.
GCCH: The Right Solution for the 10%
GCCH represents a premium compliance solution that makes strategic sense for a select segment:
- Defense-focused organizations with large budgets and substantial IT expertise
- Companies with predominantly defense business where costs can be justified enterprise-wide
- Organizations comfortable with large-scale IT transformations
PreVeil: The Proven Low-Cost Solution for the 90%
For the vast majority of DIB participants—particularly the 80% who are SMBs and the additional 10% who are large enterprises with limited defense exposure—PreVeil offers a straightforward path to compliance at accessible costs. Deployed on AWS GovCloud with the same sovereign hosting benefits as GCCH, PreVeil delivers superior security through end-to-end encryption and cryptographic protections against admin and password breaches.
These organizations should understand that:
- CMMC compliance doesn’t default to GCCH
- Multiple technical approaches can meet the same regulatory requirements
- Compliance can be achieved at a fraction of GCCH costs while maintaining readiness for defense contracts
The Proven Path to Affordable Compliance: PreVeil
Rather than require massive IT infrastructure changes, organizations can achieve comprehensive CMMC compliance through PreVeil’s proven approach that preserves existing investments while delivering cumulative cost savings.
Cost Savings #1: Don’t Replace Infrastructure
The GCCH Challenge:
- Complete IT infrastructure replacement requiring months of complex migration
- Expensive specialist consultants and extensive planning
- Premium licensing costs across the organization
- Massive disruption to existing business operations
The PreVeil encrypted email and filesharing solution for CUI:
- No rip-and-replace required: PreVeil overlays onto existing Office 365 infrastructure, ensuring no disruption and enabling reuse of existing IT investment
- One-hour deployment: PreVeil staff handle the complete technical implementation
- Immediate deployment: Users begin protecting CUI immediately after installation
Savings: $50,000-$200,000+ in avoided implementation costs
Cost Savings #2: Deploy PreVeil Licenses in an Enclave
Challenge of Deploying GCC High to the Full Organization:
- Deploy expensive licenses across the entire organization
- Manage compliance complexity for all users and systems
- Accept enterprise-wide licensing costs regardless of actual CUI usage
Challenge of Deploying GCC High in an Enclave
- Disrupts collaboration between enclave and non-enclave users
- External partners and suppliers need costly guest licenses to communicate with the enclave
- Employees struggle with switching between platforms for different projects
Using PreVeil in an Enclave:
- Targeted deployment: Only users who handle CUI receive PreVeil licenses
- Focused compliance boundary: Restrict CUI access to specific work/home computers
- Minimal license requirements: Many SMB organizations need fewer than 10 licenses
- Free third-party communication: Suppliers and partners can communicate via free guest licenses
Savings: Tens of thousands annually in avoided licensing costs
Cost Savings #3: Use Pre-Built CMMC Documentation
Traditional Documentation Challenges:
- Start from scratch with 110 NIST 800-171 controls
- Hire expensive consultants for months of work
- Create custom documentation for specific IT configuration
- Costs typically start at $50,000 and routinely exceed $100,000
The PreVeil Accelerator Compliance Documentation Solution: PreVeil’s Compliance Accelerator provides:
- Complete documentation package: Covers all 110 controls with detailed implementation guidance
- Reference architecture with complete documentation: Based on “ACME Corporation” scenario that mirrors typical defense contractor configurations
- C3PAO pre-validation: Documentation has been reviewed and approved by certified assessors
Reduce or Eliminate Consulting Costs:
- Perfect match organizations: Those closely mirroring the ACME configuration can use documentation with minimal customization
- Custom configurations: Detailed instructions and tutorials guide organizations through adapting documentation to their specific environment
- Professional support: PreVeil can connect organizations with specialized consultants familiar with the baseline documentation for cost-effective customization
Savings: Over $100,000+ in avoided documentation and consulting costs
The Combined Result: Through eliminating rip-and-replace costs, deploying limited licenses in an enclave approach, and leveraging pre-built documentation, organizations achieve comprehensive CMMC compliance at a fraction of traditional costs—while also benefiting from superior end-to-end encryption security.
Strategic Flexibility: Timing Your Investment
One of the most important advantages of this approach is strategic flexibility around timing and investment levels.
Immediate Compliance Foundation
For as little as $5,000 annually, organizations can establish:
- Strong encrypted platform for CUI protection in email and filesharing
- Substantially complete documentation for CMMC assessment
- Significantly improved SPRS score (often increased by 84+ points)
- Clear signal to DoD of established CUI protection program and progress toward compliance
Defer Assessment Expenses While Maintaining Compliance Readiness
Critical insight: The DoD expects a 5-year rollout for CMMC assessments, with increasing numbers of companies being assessed over time. This provides organizations with strategic options on when to schedule and pay for their CMMC assessment:
Option A – Accelerated Path:
- Organizations with significant DoD contracts can prioritize immediate assessment
- Complete remaining documentation gaps with internal resources or consultant support
- Achieve CMMC certification ahead of requirements
Option B – Phased:
- Immediate compliance foundation at minimal cost: Establish compliant CUI protection by deploying PreVeil to meet current DFARS 7012 requirements
- Strategic cost deferral: Delay formal assessment costs until contracts require CMMC certification or business strategy dictates
- Operational Flexibility: Preserve and expand defense opportunities without major upfront investment while staying ready
DFARS Compliance Risk: Doing Nothing Isn’t an Option
The strategic flexibility described above applies only to formal CMMC assessment timing—not to CUI protection itself, which must be implemented immediately. Organizations cannot defer CUI protection, as DFARS 7012 compliance is a current contractual requirement with serious consequences for non-compliance, including DOJ False Claims Act exposure, DIBCAC assessment risks, and prime contractor relationship impacts. However, this compliance requirement is easily accomplished in a cost-effective manner, making any risk-taking to avoid expenses entirely unwarranted.
Proven Results and Validation
This approach delivers measurable results across thousands of organizations:
Customer Success Metrics
- Thousands of customers using PreVeil for DFARS & CMMC compliance
- 25+ customers have achieved perfect 110 CMMC scores since assessments began
- Consistent cost savings of tens to hundreds of thousands of dollars compared to GCCH approaches
- High SPRS scores achieved rapidly across customer base
Industry Compliance Validation
- C3PAO adoption: Certified CMMC assessors are increasingly using PreVeil for their own compliance needs
- Partner Network: Over 400 MSPs, MSSPs, and consultants are part of our preferred network
- Streamlined assessments: Reduced assessment time and costs due to assessor familiarity with pre-validated documentation
Making the Strategic Decision
The choice between expensive GCCH implementation and affordable alternatives comes down to understanding your organization’s specific situation:
Consider GCCH If:
- Defense contracts represent majority of your business
- You have substantial IT budgets and expertise
- Enterprise-wide IT transformation aligns with business strategy
- You can absorb $200,000-$500,000+ implementation costs
Consider Modern Alternatives If:
- You’re a small or medium business entering or expanding in defense markets
- Defense represents a portion of your overall business
- You’re exploring defense opportunities but uncertain about long-term commitment
- Cost is a significant factor in your decision
- You need to meet compliance while managing cash flow
Rather than asking “Can we afford CMMC compliance?” the right question is “Which compliance approach delivers the security and cost structure that aligns with our business strategy?”
For most organizations, the answer involves:
- Immediate implementation of cost-effective CUI protection and thorough documentation
- Strategic timing of formal assessment based on contract requirements
Flexible investment that scales with defense business growth while maintaining compliance readiness and superior CUI protection.
Conclusion: Your Path Forward
The perception that CMMC compliance requires hundreds of thousands of dollars in investment is based on the incorrect assumption that GCCH is the only compliance path. This assumption has created unnecessary fear throughout the Defense Industrial Base, leading many organizations to consider exiting the defense market entirely.
The reality is that robust, fully compliant CMMC programs can be established and maintained for a fraction of GCCH costs.
- Compliance is achievable at costs ranging from $5,000-$15,000 annually for most organizations
- Assessment investment timing is flexible based on business strategy and contract requirements
- Proven solutions exist with thousands of successful implementations and validated results
- Professional support is available to guide implementation and ensure success
The choice isn’t between expensive compliance and exiting the defense market. The choice is between different compliance approaches that can be tailored to your organization’s size, budget, and strategic objectives.
Don’t let cost mythology drive strategic decisions about your defense business opportunities. Instead, make informed decisions based on accurate cost information and proven compliance approaches that align with your business needs.
Take Action: Get the Facts for Your Situation
Every organization’s compliance needs are unique. Rather than base decisions on general cost estimates or consultant recommendations that may not apply to your specific situation, get personalized guidance from PreVeil’s compliance experts who understand the full range of proven options available.
Contact PreVeil’s compliance team to:
- Assess your specific compliance requirements and current readiness
- Understand cost options for your organization size and defense business exposure
- Develop a strategic timeline that aligns compliance investment with business needs
- See a demonstration of how compliant CUI protection can be implemented without infrastructure replacement