DFARS Compliance Consulting for Defense Contractors Protecting CUI
The Defense Federal Acquisition Regulation Supplement requires every Department of Defense contractor and subcontractor handling Controlled Unclassified Information to implement adequate security measures based on NIST SP 800-171. Non-compliance means contract loss, False Claims Act liability, and exclusion from the defense industrial base. Petronella Technology Group, Inc. delivers comprehensive DFARS compliance services that address clause 252.204-7012, the 7020 assessment requirements, the 7021 CMMC mandate, and the complete NIST 800-171 control implementation your organization needs to retain and win DoD contracts.
BBB Accredited Since 2003 • Founded 2002 • CMMC Certified Registered Practitioner • 2,500+ Clients Served
Protect Your DoD Contracts With Proven DFARS Expertise
DFARS compliance requires deep expertise in both federal acquisition regulations and NIST cybersecurity implementation. Here is why defense contractors trust Petronella.
CMMC Registered Practitioner
Craig Petronella holds the CMMC CRP credential, providing direct insight into how DFARS requirements map to CMMC certification assessments. We prepare your organization for both the current DFARS self-assessment requirements and the upcoming CMMC third-party assessments.
Complete CUI Protection Programs
We go beyond checklist compliance to build genuine CUI protection programs: data flow mapping, boundary definition, access controls, encryption, monitoring, and incident response. Your CUI is actually protected, not just documented as protected.
SPRS Scoring and Submission
We calculate your accurate SPRS score based on a thorough NIST 800-171 assessment, develop the remediation plan to maximize your score, and guide you through the Supplier Performance Risk System submission process that DoD contracting officers review during source selection.
False Claims Act Risk Mitigation
DoJ has pursued False Claims Act cases against contractors who misrepresent their DFARS compliance status. We ensure your self-assessments are accurate, your documentation is defensible, and your compliance claims reflect your actual security posture.
DFARS Cybersecurity Requirements Explained
The Defense Federal Acquisition Regulation Supplement is the set of contract clauses that the Department of Defense adds to the Federal Acquisition Regulation (FAR) for defense procurement. The cybersecurity-focused DFARS clauses have fundamentally changed how defense contractors operate by requiring specific security standards for protecting Controlled Unclassified Information. Understanding these clauses and their implications is essential for any organization in the defense supply chain.
DFARS clause 252.204-7012, Safeguarding Covered Defense Information and Cyber Incident Reporting, is the foundational cybersecurity requirement. It mandates that contractors provide "adequate security" for covered defense information by implementing the 110 security requirements in NIST SP 800-171. The clause also requires contractors to report cyber incidents to the DoD within 72 hours, preserve images of affected systems for 90 days, and cooperate with DoD investigations. The clause flows down to every subcontractor in the supply chain that handles CUI, meaning your compliance obligations extend to your subcontractors and suppliers.
DFARS clause 252.204-7020 establishes the NIST SP 800-171 DoD Assessment Methodology. Under this clause, the DoD can conduct Medium or High assessments of contractor compliance, going beyond the Basic self-assessment that contractors submit through SPRS. Medium assessments involve DoD review of your System Security Plan and other documentation. High assessments involve on-site evaluation by DoD assessment teams. Contractors must provide access to facilities, systems, and personnel for these assessments. Having accurate documentation and genuinely implemented controls is critical — there is nowhere to hide during a High assessment.
DFARS clause 252.204-7021 introduces the Cybersecurity Maturity Model Certification requirement. Under this clause, contractors must achieve the CMMC level specified in the contract solicitation before contract award. For contracts involving CUI, this typically means CMMC Level 2, which maps directly to NIST 800-171 but requires verification by a Certified Third-Party Assessment Organization (C3PAO). The CMMC requirement is being phased into contracts over a multi-year period, and the clause flows down to subcontractors based on the information they handle. Petronella Technology Group, Inc. prepares organizations for both the current DFARS assessment framework and the CMMC certification process.
Controlled Unclassified Information is the category of information that triggers DFARS cybersecurity requirements. CUI includes technical data, export-controlled information, proprietary manufacturing processes, financial data, personally identifiable information related to defense contracts, and dozens of other information categories defined in the CUI Registry maintained by the National Archives. Identifying what CUI you handle, where it flows within your organization, and which systems process, store, or transmit it is the essential first step in DFARS compliance. Petronella Technology Group, Inc. conducts thorough CUI scoping and data flow analysis to define your CUI boundary — the set of systems, networks, and processes that must meet NIST 800-171 requirements. A well-defined boundary reduces compliance scope, cost, and complexity while ensuring all CUI is properly protected.
End-to-End DFARS Compliance Solutions
From CUI scoping through CMMC certification readiness, we deliver complete DFARS compliance programs that protect your contracts and your data.
CUI Scoping and Data Flow Analysis
Before implementing controls, you must know exactly what CUI your organization handles and where it goes. Our scoping engagement reviews your DoD contracts and delivery orders to identify CUI marking requirements, maps the flow of CUI through your organization from receipt through processing, storage, transmission, and disposition, identifies every system, network, application, and service that touches CUI, and defines the CUI boundary that determines which systems fall within your NIST 800-171 compliance scope.
Proper scoping is the most impactful cost-reduction strategy in DFARS compliance. By clearly defining and minimizing your CUI boundary through network segmentation, enclave architectures, and process redesign, we reduce the number of systems requiring full NIST 800-171 compliance — often saving organizations hundreds of thousands of dollars in implementation and ongoing maintenance costs.
Deliverables include a CUI data flow diagram, system boundary documentation, asset inventory within scope, and a boundary justification document suitable for assessor review.
NIST 800-171 Assessment and SPRS Scoring
We assess your organization against all 110 NIST 800-171 security requirements using the DoD Assessment Methodology. Every requirement is evaluated as Met, Not Met, or Not Applicable, with detailed findings documenting how each requirement is satisfied or what gaps exist. The assessment produces a SPRS score that accurately reflects your current compliance posture.
Assessment deliverables include a System Security Plan (SSP) documenting your implementation of each requirement, a Plan of Action and Milestones (POA&M) with specific remediation tasks, timelines, and resource requirements, a SPRS score calculation with supporting justification, and a risk-prioritized remediation roadmap. For organizations that have previously submitted SPRS scores, we identify any discrepancies between reported scores and actual compliance status — critical for avoiding False Claims Act exposure.
Our assessment methodology aligns with the CMMC Assessment Guide so your SSP, POA&M, and evidence packages are ready for C3PAO review when CMMC certification is required.
Technical Control Implementation
Our engineering team implements the technical controls required to close NIST 800-171 gaps identified during assessment. This includes network segmentation and CUI enclave architecture, FIPS 140-2 validated encryption for CUI at rest and in transit, multi-factor authentication for all CUI system access, endpoint detection and response deployment, SIEM implementation for audit log collection and analysis, vulnerability scanning and patch management programs, DNS filtering and web content controls, mobile device management and removable media controls, and secure configuration baselines aligned to CIS benchmarks.
We design solutions that balance security requirements with operational practicality. Your staff needs to do their jobs without security controls creating impossible workflows. Our implementations are tested in your environment, documented thoroughly, and include staff training so people understand both the what and the why behind each control.
For organizations that lack internal IT infrastructure, we provide managed IT services and managed cybersecurity that satisfy DFARS requirements as a fully outsourced solution.
Policy and Documentation Development
DFARS compliance requires extensive documentation beyond technical controls. Assessors expect written policies and procedures for every NIST 800-171 control family, and those documents must reflect your actual operations, not generic templates downloaded from the internet. We develop custom documentation packages that include an Information Security Policy covering all 14 control families, individual procedures for access control, incident response, configuration management, media protection, and every other control area, a System Security Plan that accurately describes your system architecture and control implementation, and role-based training materials tailored to your organization.
Every document is written specifically for your organization, reflecting your actual systems, processes, and personnel structure. Generic templates fail during assessments because assessors immediately recognize boilerplate language that does not match the organization sitting in front of them. Our documentation passes scrutiny because it describes your real operations.
Cyber Incident Response Planning
DFARS 252.204-7012 requires contractors to report cyber incidents affecting covered defense information to the DoD Cyber Crime Center (DC3) within 72 hours. This is not a simple notification — it requires preserving forensic images of affected systems, conducting damage assessment, and cooperating with DoD investigation. Failure to report promptly can result in contract termination and False Claims Act liability.
We develop and test incident response plans specific to DFARS requirements, including detection and initial assessment procedures, evidence preservation and forensic imaging protocols, DC3 reporting procedures and templates, damage assessment methodology, media preservation requirements (90-day retention), coordination protocols with prime contractors and DoD contracting officers, and subcontractor incident notification procedures.
Annual tabletop exercises ensure your team can execute the incident response plan under pressure. We simulate realistic scenarios based on current threat intelligence and evaluate your team's ability to detect, contain, report, and recover from cyber incidents within DFARS timelines.
Supply Chain and Subcontractor Compliance
DFARS cybersecurity requirements flow down to every subcontractor that handles CUI. As a prime contractor, you are responsible for ensuring your subcontractors meet the same NIST 800-171 requirements you do. This creates significant supply chain risk — your compliance can be undermined by a subcontractor who claims compliance but has not actually implemented the controls.
Petronella Technology Group, Inc. helps prime contractors manage supply chain compliance through subcontractor assessment programs, contract language development for DFARS flow-down, SPRS score verification procedures, risk-based subcontractor monitoring, and incident notification chain establishment. We also help subcontractors understand and meet their DFARS obligations, whether they flow from a prime contract or from a subcontract further down the supply chain.
For organizations that serve as both primes and subcontractors, we build integrated compliance programs that satisfy obligations in both directions simultaneously.
From Contract Review to CMMC-Ready in Months
A proven methodology built on 20+ years of federal compliance experience and refined across 2,500+ client engagements.
Contract and CUI Scoping
We review your DoD contracts and delivery orders to identify DFARS cybersecurity clauses and CUI marking requirements. Then we map CUI flows through your organization, identify in-scope systems, and define the CUI boundary. Proper scoping minimizes compliance costs by ensuring you only apply NIST 800-171 controls to systems that actually handle CUI.
Timeline: 1-2 weeks • Deliverable: CUI Data Flow Diagram, Boundary Definition, Asset Inventory
Gap Assessment and SPRS Scoring
Our assessors evaluate your organization against all 110 NIST 800-171 requirements using the DoD Assessment Methodology. Every requirement is scored, gaps are documented with specific remediation actions, and your SPRS score is calculated. The assessment produces a draft System Security Plan and Plan of Action and Milestones.
Timeline: 2-3 weeks • Deliverable: Gap Assessment Report, SSP Draft, POA&M, SPRS Score
Remediation and Control Implementation
Our engineers implement the technical, administrative, and physical controls needed to close gaps. This includes network segmentation, encryption deployment, MFA implementation, SIEM configuration, policy development, procedure documentation, and staff training. Work is prioritized by risk and SPRS score impact so your compliance posture improves immediately while the full program is being built.
Timeline: 8-16 weeks • Deliverable: Implemented Controls, Policies, Procedures, Updated SSP
Validation and Ongoing Compliance
We conduct an internal validation assessment using CMMC Assessment Guide procedures to verify every control is operating effectively. Your SPRS score is updated and submitted. Then we establish continuous monitoring to maintain compliance: vulnerability scanning, security event monitoring, access reviews, patch management, and periodic reassessment. Monthly reports and quarterly reviews ensure your compliance program stays current with evolving DFARS requirements.
Timeline: 2-4 weeks validation + ongoing monitoring • Deliverable: Validated SPRS Score, Continuous Monitoring Program
The DFARS Compliance Partner Defense Contractors Trust
We Implement, Not Just Assess
Most DFARS consultants deliver a gap report and leave. We deploy the technical controls, write the policies, configure the monitoring, train the staff, and validate the implementation. You get a working compliance program, not a binder of recommendations.
Managed Security Services
Many DFARS requirements demand capabilities like 24/7 log monitoring, vulnerability scanning, and incident response that small contractors cannot staff internally. Our managed cybersecurity services provide these capabilities as a service.
Zero Client Breaches
Across 2,500+ clients and 20+ years, no client following our security program has been breached. Our DFARS implementations are real security programs, not compliance theater designed to pass an assessment while leaving your data vulnerable.
Related Compliance Expertise
Defense contractors often face overlapping requirements. We deliver NIST, ISO 27001, HIPAA, and SOX compliance alongside DFARS, building integrated programs that eliminate duplication.
Secure Hosting for CUI
Need a compliant environment for processing CUI? Our managed hosting and data center infrastructure is designed to meet DFARS requirements with proper physical security, encryption, monitoring, and access controls.
BBB A+ Since 2003
Founded in 2002 and BBB accredited with an A+ rating since 2003, Petronella Technology Group, Inc. brings stability, integrity, and accountability to every engagement. When your DoD contracts depend on your compliance partner, choose one with a 20+ year track record.
DFARS Compliance FAQs
What is DFARS 252.204-7012?
DFARS 252.204-7012 is the contract clause titled "Safeguarding Covered Defense Information and Cyber Incident Reporting." It requires DoD contractors and subcontractors to implement NIST SP 800-171 security requirements to provide adequate security for CUI, report cyber incidents to the DoD Cyber Crime Center within 72 hours, preserve forensic images of affected systems for 90 days, and flow down these requirements to subcontractors. This clause is included in virtually all DoD contracts involving CUI.
What is the difference between DFARS 7012, 7020, and 7021?
Clause 7012 establishes the requirement to implement NIST 800-171 and report cyber incidents. Clause 7020 establishes the DoD Assessment Methodology, allowing the government to conduct Basic, Medium, or High assessments of contractor compliance and requiring contractors to submit SPRS scores. Clause 7021 introduces CMMC certification as a contract requirement, mandating that contractors achieve the specified CMMC level before contract award. Together, these three clauses form the DoD's layered approach to ensuring contractor cybersecurity: 7012 sets the standard, 7020 enables assessment, and 7021 requires certification.
What happens if we are not DFARS compliant?
Non-compliance carries severe consequences. You can lose eligibility for DoD contract awards and renewals. Existing contracts can be terminated for cause. The Department of Justice has pursued False Claims Act cases against contractors who misrepresent their compliance status, with penalties including treble damages and per-claim fines. Prime contractors may remove non-compliant subcontractors from their supply chains. Beyond legal consequences, a cyber incident involving CUI creates investigation obligations, mandatory reporting to DC3, potential liability for damage to national security, and reputational harm that can end a defense contracting business.
What is Controlled Unclassified Information (CUI)?
CUI is information the government creates or possesses, or that an entity creates or possesses for the government, that law, regulation, or government-wide policy requires safeguarding. In the defense context, common CUI categories include Controlled Technical Information, export-controlled data (ITAR/EAR), proprietary manufacturing processes, contract performance data, source selection information, and personally identifiable information. The CUI Registry maintained by the National Archives lists all CUI categories and their handling requirements. Your DoD contracts will specify which CUI categories apply through markings and distribution statements.
How does DFARS flow down to subcontractors?
DFARS 252.204-7012 requires prime contractors to flow down the clause to subcontractors at all tiers that will handle CUI. Subcontractors must implement the same NIST 800-171 requirements as the prime and must report cyber incidents to both the prime and to DC3. Under CMMC (clause 7021), subcontractors must also achieve the CMMC level specified in the contract. As a prime contractor, you are responsible for verifying that your subcontractors meet these requirements. Petronella Technology Group, Inc. helps primes develop subcontractor compliance verification programs and helps subcontractors achieve compliance with the requirements flowing from their prime contracts.
How long does DFARS compliance take?
Timeline depends on your starting point. Organizations with existing security infrastructure and some NIST 800-171 controls already implemented typically achieve full DFARS compliance in three to six months. Organizations starting from scratch or requiring significant infrastructure changes may need six to twelve months. Scoping takes one to two weeks, assessment takes two to three weeks, and remediation ranges from eight to sixteen weeks depending on the number and complexity of gaps. We prioritize high-risk gaps and SPRS-impacting items first so your compliance posture improves immediately while the full program is being completed.
Can we use a cloud enclave for CUI processing?
Yes, but the cloud environment must meet specific requirements. Under DFARS 252.204-7012, cloud service providers hosting CUI must meet FedRAMP Moderate (or equivalent) security requirements and comply with incident reporting obligations. Many contractors use dedicated cloud enclaves like Microsoft GCC High, AWS GovCloud, or Google Cloud Assured Workloads to isolate CUI processing. Petronella Technology Group, Inc. helps contractors evaluate cloud enclave options, configure them to meet NIST 800-171 requirements, and integrate them with on-premises systems. We also help with the shared responsibility model documentation that assessors require to understand which controls the cloud provider handles and which remain your responsibility.
What is the False Claims Act risk for DFARS non-compliance?
The Department of Justice Civil Cyber-Fraud Initiative uses the False Claims Act to pursue contractors who misrepresent their cybersecurity compliance status. If you submit a SPRS score that does not accurately reflect your NIST 800-171 implementation, or if you certify compliance in contract representations that you have not actually achieved, you face potential False Claims Act liability including treble damages, per-claim penalties exceeding $11,000, and exclusion from government contracting. Several cases have already resulted in significant settlements. Petronella Technology Group, Inc. ensures your compliance claims are accurate and defensible by conducting thorough assessments and documenting exactly how each requirement is met.
Ready to Protect Your DoD Contracts With Real DFARS Compliance?
Stop risking your defense contracts with incomplete compliance. Schedule a free DFARS consultation with our CMMC Certified Registered Practitioner and get a clear path to full NIST 800-171 compliance, accurate SPRS scoring, and CMMC certification readiness.
BBB Accredited Since 2003 • Founded 2002 • CMMC CRP on Staff • 2,500+ Clients Served