Channel partners, MSP, MSSP, Government Regulations, Industry Regulations

CMMC third-party audits are paused. The channel opportunity isn’t.

COMMENTARY: While the DoD suspended third-party CMMC assessments, CMMC itself has not disappeared. Phase 1 remains active. Contractors may still be required to complete Level 1 annual self-assessments or Level 2 self-assessments every three years, submit results to the Supplier Performance Risk System, and provide annual compliance affirmations. That gives MSPs and MSSPs a good reason to stay close to clients now, helping them review gaps, fix weak areas, and get their documentation in order before assessments resume. Partners that keep the conversation going can turn this pause into ongoing compliance and managed security work, while those that step back may find themselves trying to catch up later.


The Department of Defense suspended third-party CMMC assessments yesterday, establishing a 60-day Reform Task Force and issuing a request for information due August 14. The headlines read like relief for the defense industrial base. For your clients – and for your book of business – they are not.

The moment a compliance mandate gets complicated, most channel partners do the same thing: they go quiet. Sales cycles stall, prospecting pauses, and renewal conversations get pushed. That instinct is understandable. With Cybersecurity Maturity Model Certification Phase II, acting on it is one of the most expensive mistakes a managed service provider can make in 2026.

What the suspension actually changed

The DoD suspended one thing: the requirement for third-party certification through an accredited C3PAO. Everything else remains in force.

DFARS 252.204-7012 – the regulation that obligates defense contractors to safeguard covered defense information and report cyber incidents – was not paused. The 110 security controls in NIST SP 800-171 were not suspended. Self-assessed Supplier Performance Risk System scores are still required, still submitted to the DoD, and still treated as contractual representations.

That last point is where your clients’ exposure lives. It is also where your value as a trusted partner begins.

The False Claims Act doesn’t take a pause

Since the Department of Justice launched the Civil Cyber-Fraud Initiative in October 2021, the government has used the False Claims Act to pursue contractors who submitted inaccurate cybersecurity representations. False or inflated SPRS scores carry penalties of $13,946 to $27,894 per false claim, plus treble damages. Qui tam provisions allow employees and competitors to bring suits on the government’s behalf.

More than 15 cases have been filed since 2021. The Raytheon/Nightwing settlement reached $8.4 million. Georgia Tech faces a $28 million pending action. These cases did not stop when the assessment requirement paused. If anything, the removal of third-party certification checkpoints increases retroactive exposure.

A defense contractor who submitted an SPRS score that doesn’t reflect their actual security posture is more exposed today – not less. Your clients may not understand this. Most of them read “CMMC paused” and exhaled. That exhale is your opening.

The 60-Day window is a service opportunity

The Reform Task Force window is not a vacation. It is a structured period during which the DoD is redesigning the assessment framework. Phase II will return – and the signals suggest it will be stricter on SPRS accuracy and documentation requirements than the original rule.

For channel partners and MSSPs, this window presents concrete service opportunities that most are leaving on the table.

Self-assessment support. Many defense contractors do not have the internal expertise to accurately score themselves against all 110 NIST 800-171 controls. An inaccurate score submitted to SPRS is a legal liability. Partners who offer assessment-support services right now are helping clients fix a problem that is actively dangerous – and building the relationship that persists through every future compliance cycle.

Gap remediation. The delta between what a contractor attests and what they can actually demonstrate is where enforcement lives. Identifying those gaps, prioritizing remediation by risk, and documenting progress creates the paper trail that matters when Phase II assessments resume.

Evidence packaging. When C3PAO assessments come back, contractors who arrive with documented System Security Plans, accurate SPRS scores, and a remediation history will move through assessment faster and at lower cost. The partners who helped build that documentation will own that engagement for years.

The Relationship Is Built When Others Step Back

The defense industrial base spans more than 100,000 companies. Most are small and mid-size businesses without in-house cybersecurity teams. They depend on channel partners and MSSPs to navigate requirements that change faster than their internal bandwidth can absorb.

When requirements get complicated, those clients remember who stayed in the conversation and who went quiet. The partners who treat this 60-day window as an opportunity to go deeper – not as a reason to deprioritize – are building the trust that converts a compliance engagement into a long-term managed services relationship.

The partners who step back now will spend the back half of 2026 and all of 2027 trying to re-enter conversations they walked away from.

The Obligation Didn’t Leave With the Auditor

The pause in CMMC third-party assessments is real. The pause in contractor liability is not. DFARS is still in force. NIST 800-171 is still the standard. False Claims Act enforcement is still active. And your clients are still submitting SPRS scores that are contractual representations of their security posture.

The channel partners who understand this distinction – and who use it to have the right conversation with their defense clients right now – will be in a fundamentally different competitive position when Phase II returns. The partners who stepped back will be catching up.


ChannelE2E Perspectives columns are written by trusted members of the managed services, value-added reseller, and solution provider channels or ChannelE2E staff. Do you have a unique perspective you want to share? Check out our guidelines here and send a pitch to [email protected].

Kurt Michael

Kurt Michael is the Chief Revenue Officer at Kiteworks and has over 20 years of domestic, international, and governmental sales experience, leveraging channel and direct sales to the enterprise.

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