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A Troubling New Reality for America’s Defense Industry
The U.S. defense industry is facing an uncomfortable cybersecurity paradox: contractors are reporting their strongest cybersecurity scores in years, yet fewer of them believe those scores accurately represent their real-world security posture.
That contradiction sits at the heart of the 2026 State of the DIB Report, published by CyberSheath on August 20. The report found that the average Supplier Performance Risk System (SPRS) score among surveyed defense contractors climbed dramatically to +51, compared with +33 in 2025. On paper, that looks like major progress.
But confidence in those numbers has moved sharply in the opposite direction.
Only 65% of contractors now say they are extremely or very confident that their SPRS score accurately reflects their cybersecurity posture. That is a dramatic decline from 89% in 2025 and 94% in 2024.
The result is a cybersecurity warning that goes far beyond a single compliance program. It raises a fundamental question for the entire Defense Industrial Base: What is the value of a better cybersecurity score if contractors themselves do not believe the score tells the whole story?
The SPRS Score Is Becoming More Important
The Supplier Performance Risk System is a central component of how defense contractors currently assess cybersecurity maturity under the Cybersecurity Maturity Model Certification, commonly known as CMMC.
Contractors handling Federal Contract Information (FCI) or Controlled Unclassified Information (CUI) for the Department of Defense are expected to demonstrate that appropriate cybersecurity protections are in place.
Under the current self-assessment model, contractors measure their implementation of security requirements based on 110 controls derived from NIST SP 800-171.
The scoring system is designed to provide the government with a standardized way of understanding a contractor’s cybersecurity posture. A perfect score is 110, while weaknesses can push an organization’s score downward.
The problem is that a score can only be as reliable as the assessment behind it.
CMMC Was Supposed to Add Independent Verification
This is where the CMMC program becomes particularly important.
The first phase of CMMC has relied heavily on contractor self-assessments and SPRS reporting. That model gives organizations significant responsibility for determining whether their own security controls are functioning properly.
The next stage was designed to introduce another layer of accountability.
CMMC Phase II was originally scheduled to begin on November 10, 2026, bringing independent assessments performed by Certified Third-Party Assessment Organizations, or C3PAOs, into the process.
However, the Trump administration suspended Phase II in July 2026.
That decision fundamentally changes the environment in which contractors are trying to demonstrate compliance.
The Pause Creates a Verification Gap
Independent assessment is not simply another administrative requirement.
Its purpose is to challenge assumptions, identify gaps, verify evidence and determine whether cybersecurity controls actually work outside a contractor’s own documentation.
When that external validation is delayed, organizations are left with a difficult balancing act.
They must continue improving cybersecurity while relying heavily on internal assessments to demonstrate progress.
That creates an obvious question: Who verifies that the number is telling the truth?
Higher Scores, Lower Confidence
The most striking finding in the 2026 report is therefore not the +51 average SPRS score.
It is the gap between the score and confidence in the score.
The average score has improved substantially, yet confidence in its accuracy has collapsed by 24 percentage points since last year.
That is unusual because normally improvements in a measurement system should produce greater confidence in the measurement itself.
Instead, contractors appear to be discovering that cybersecurity maturity is considerably more complicated than checking boxes and increasing a numerical score.
Cybersecurity Is Harder to Measure Than Compliance
A cybersecurity control can technically exist while still failing operationally.
An organization may have a password policy, for example, but that does not automatically mean employees consistently follow it.
A company may deploy endpoint detection software, but that does not prove security teams can detect and respond to an attack.
A backup system may exist, but it may not be capable of restoring critical systems after ransomware.
A vulnerability-management program may produce reports, while high-risk vulnerabilities remain exposed for weeks.
These differences are exactly why cybersecurity maturity cannot be reduced to documentation alone.
The Human Factor Behind the Numbers
The contractors surveyed by Merrill Research appear to recognize this problem.
According to the study, only 1% of respondents believe they are completely prepared for CMMC certification.
That number has remained unchanged from
It is an extraordinary statistic considering that average SPRS scores have increased.
If organizations are scoring higher but almost none believe they are completely prepared, the industry may be experiencing what could be called a compliance confidence gap.
More Spending Is Not Automatically Better Security
The financial data adds another layer to the story.
Annual DFARS compliance spending increased sharply to an average of approximately $155,204.
Yet most contractors do not appear to view budget availability as the primary obstacle.
About 53% said their cybersecurity budgets were “just right,” while another 24% said their budgets were more than enough.
That suggests the industry is not simply asking for more money.
It is asking for a more effective way to turn money into measurable security.
The Real Problem Is Implementation
This distinction matters.
A contractor can spend hundreds of thousands of dollars on consultants, security platforms, compliance software, penetration testing, endpoint protection, cloud security and documentation.
But spending does not automatically create resilience.
Security investments have to be integrated into daily operations.
They must be maintained.
They must be tested.
They must be monitored.
And, most importantly, they must continue working when an attacker is actively trying to defeat them.
Contractors Want Compliance, But They Want It Simplified
The survey reveals another important contradiction.
More than half of respondents, approximately 52%, fear losing contracts because of cybersecurity non-compliance.
At the same time, 90% support a legal mandate requiring minimum cybersecurity standards for defense contractors and subcontractors.
That is significant.
The DIB is not broadly rejecting cybersecurity regulation.
Instead, contractors appear to be saying that the objective is necessary, but the path toward achieving it needs improvement.
National Security Remains the Strongest Argument
Approximately 77% of respondents said DFARS compliance meaningfully improves national security.
That finding matters because defense contractors are not operating in an ordinary commercial environment.
A compromised defense contractor can become an entry point into sensitive information, engineering systems, supply chains or programs supporting military capabilities.
For an attacker, the smallest subcontractor can potentially become the weakest link in a much larger ecosystem.
Cybersecurity compliance therefore has consequences far beyond an individual company’s IT department.
The DIB Is Not Made Up of Cybersecurity Companies
CyberSheath CEO Emil Sayegh highlighted an important reality: many DIB organizations are manufacturers, engineers and highly specialized companies whose primary mission is supporting the warfighter.
They are not cybersecurity firms.
A company designing aircraft components, manufacturing specialized equipment or engineering defense systems may have world-class expertise in its own field without having the resources of a major technology company.
That does not eliminate its cybersecurity responsibility.
But it does explain why compliance complexity can become a major obstacle.
Contractors Are Asking for Better Tools and Simpler Processes
The survey found that 74% of respondents want easier implementation processes, while 70% want more vendor options to support compliance.
That tells policymakers something important.
The industry does not necessarily want weaker standards.
It wants standards that can be implemented realistically.
There is a major difference between reducing cybersecurity requirements and reducing unnecessary complexity.
The latter could actually improve security.
A Simpler CMMC Could Produce Better Security
An effective compliance framework should make it easier for organizations to understand what is required, identify what is missing and implement protections consistently.
If compliance becomes so complicated that contractors spend more time documenting controls than improving them, the system risks becoming counterproductive.
The goal should not be a beautiful spreadsheet.
The goal should be a defense network that is harder to penetrate.
Why Independent Verification Still Matters
The suspension of CMMC Phase II makes independent verification even more important conceptually.
Third-party assessments are designed to introduce another perspective.
An independent assessor can question assumptions that internal teams may overlook.
They can inspect evidence.
They can test controls.
They can identify inconsistencies.
And they can challenge the difference between “we have a policy” and “the policy actually works.”
That distinction is critical in cybersecurity.
The Danger of Self-Reported Security
Self-assessment is not inherently useless.
In fact, it can be extremely valuable when organizations use it honestly and continuously.
The danger emerges when a self-assessment becomes primarily a compliance exercise.
If employees know that a high score helps maintain contract eligibility, organizational incentives can unintentionally encourage optimistic interpretations.
This does not mean defense contractors are deliberately falsifying scores.
It means measurement systems naturally create pressure around the numbers being measured.
A Score Should Be a Starting Point, Not a Security Certificate
A SPRS score should ideally function as an indicator.
It should tell an organization where weaknesses exist and where improvement is necessary.
It should not become a substitute for continuous security validation.
The most mature organizations will treat their score as one signal among many.
They will also monitor vulnerability exposure, endpoint telemetry, identity security, network activity, incident-response readiness, backup integrity, privileged access and third-party risk.
The Supply Chain Makes the Problem Bigger
The DIB is an interconnected ecosystem.
Prime contractors depend on subcontractors.
Subcontractors depend on suppliers.
Software providers depend on open-source components.
Manufacturers depend on connected industrial systems.
Cloud platforms support increasingly important workloads.
That means a cybersecurity weakness in one organization can potentially create consequences elsewhere.
The security of the defense industrial base therefore depends on the collective resilience of thousands of organizations.
The Weakest Link Is Not Always the Biggest Company
Attackers do not necessarily target the organization with the largest revenue.
They target the organization that provides the easiest path.
A smaller contractor with weaker identity controls, outdated software, exposed remote access or poorly protected credentials may offer a more attractive route into a larger ecosystem.
That is why minimum cybersecurity standards can be valuable.
The challenge is making those standards measurable without creating a false sense of security.
Deep Analysis: Turning CMMC Compliance Into Operational Security
The most useful way to interpret the report is to stop thinking of CMMC as a paperwork problem and start treating it as an operational security program.
A contractor should continuously determine whether its controls are functioning, not simply whether a policy exists.
For Linux-based environments, basic security validation can begin with commands such as:
Check listening network services
ss -tulpn
Review active processes
ps aux --sort=-%cpu | head
Review recent authentication events
sudo journalctl -u ssh --since "24 hours ago"
Check failed SSH authentication attempts
sudo journalctl -u ssh | grep -i "failed"
Review installed security updates
sudo apt list --upgradable 2>/dev/null
These commands are not CMMC certification tools.
They are examples of how security teams can move from documentation toward operational verification.
Validate Identity Controls Continuously
Identity is one of the most important areas for defense contractors.
Organizations should regularly review privileged accounts, inactive users, service accounts, authentication mechanisms and remote-access pathways.
A simple Linux review might include:
List local accounts
cut -d: -f1 /etc/passwd
Review users with UID 0
awk -F: '$3 == 0 {print $1}' /etc/passwd
Check password-aging information
sudo chage -l username
Review SSH configuration
sudo sshd -T | grep -E 'passwordauthentication|permitrootlogin|pubkeyauthentication'
The objective is not merely to collect evidence.
The objective is to determine whether unauthorized access would be difficult.
Vulnerability Management Must Be Measurable
A mature cybersecurity program should know which systems are exposed, which vulnerabilities are critical and how quickly remediation occurs.
For Debian or Ubuntu systems, administrators can begin with:
sudo apt update sudo apt list --upgradable
For systems using RPM-based distributions:
sudo dnf check-update
Again, these commands are basic operational examples rather than formal CMMC assessment procedures.
The larger principle is what matters: security controls should produce evidence that can be independently examined.
Logging Should Tell the Story During an Attack
Security teams should also ask whether their logging infrastructure would actually help during an incident.
Useful questions include:
Can administrators identify suspicious logins?
Can they trace privileged activity?
Can they determine when a system was compromised?
Can they correlate endpoint and network events?
Can they detect abnormal authentication behavior?
Can they recover logs after an attacker attempts to erase evidence?
If the answer is no, a compliance score may not reflect actual defensive capability.
Backup Testing Is More Important Than Backup Documentation
Ransomware provides a perfect example.
An organization may have a documented backup policy and still be vulnerable to catastrophic data loss.
The important question is not whether backups exist.
The important question is whether critical systems can actually be restored.
Organizations should periodically test recovery, measure recovery time and verify that backup infrastructure cannot easily be destroyed using compromised administrative credentials.
The CMMC Debate Is Really About Trust
At its deepest level, the report is not simply about SPRS scores.
It is about trust.
The government needs to trust that defense contractors are protecting sensitive information.
Prime contractors need to trust their suppliers.
Suppliers need practical tools to meet requirements.
Security teams need reliable measurements.
And contractors need to trust that compliance requirements are clear enough to implement.
When confidence in self-reported scores falls from 89% to 65%, that trust equation becomes much harder to maintain.
The +51 Score Should Not Be Dismissed
It would also be wrong to interpret the report as proof that contractors are failing.
The increase from +33 to +51 indicates that organizations are reporting meaningful improvements.
Cybersecurity capabilities may genuinely be getting stronger across the DIB.
More companies may be implementing security controls.
More organizations may be investing in compliance.
Security awareness may be improving.
The problem is that the industry itself appears less certain that the score accurately captures those improvements.
What Undercode Say:
- The Most Important Number Is Not +51
The +51 average SPRS score looks impressive.
But the decline in confidence is arguably more important.
- Cybersecurity Cannot Be Reduced to a Number
A score simplifies a complicated security environment.
That makes it useful, but also potentially dangerous if interpreted as absolute truth.
3. Self-Assessment Has a Natural Limitation
Organizations assessing themselves will always have more visibility into their own assumptions than an outside observer.
4. Independent Validation Provides Friction
That friction is valuable.
Security programs should be challenged before attackers challenge them.
- The Phase II Pause Changes the Incentives
Suspending independent assessments removes an important layer of external verification.
That does not make self-assessment worthless.
It simply increases the importance of internal honesty and technical validation.
6. Contractors Clearly Want Cybersecurity Standards
The 90% support for a legal minimum-security mandate is striking.
It demonstrates that frustration with CMMC should not be confused with opposition to cybersecurity.
7. Complexity Is the Bigger Enemy
A complicated compliance process can consume resources without proportionally improving security.
8. More Vendors Could Help
The fact that 70% want more vendor options suggests the market may not yet provide enough accessible compliance solutions.
9. Budget Is Not the Whole Story
With 77% describing budgets as adequate or more than adequate, simply increasing spending may not solve the problem.
10. Implementation Quality Matters More Than Spending
Money must translate into functioning controls.
Otherwise, cybersecurity spending becomes another form of organizational theater.
11. Documentation Has Value
Policies and procedures remain important.
But they should support operational security rather than replace it.
12. Evidence Should Be Continuous
A contractor should be able to demonstrate security maturity throughout the year.
Not only when preparing for an assessment.
13. CMMC Should Encourage Reality
The best compliance framework rewards organizations for making systems genuinely harder to compromise.
- The DIB Is Too Important for Symbolic Security
Defense contractors protect information connected to national security.
That makes accurate measurement essential.
15. Small Contractors Need Practical Solutions
A small engineering company cannot always maintain a cybersecurity department comparable to a Fortune 100 technology company.
Compliance must account for that reality without lowering essential protections.
16. Automation Could Reduce the Burden
Automated configuration checks, vulnerability scanning, asset inventories and continuous monitoring can reduce repetitive compliance work.
17. Automation Should Not Replace Human Judgment
Security tools generate evidence.
Security professionals must interpret it.
18. Third-Party Assessors Still Have a Role
External validation remains one of the strongest ways to challenge internal assumptions.
- The Pause Should Not Become an Excuse
Contractors should not interpret a regulatory delay as permission to slow security improvements.
20. Attackers Are Not Waiting
Cybercriminals do not care whether an assessment deadline has been postponed.
Threats continue regardless of regulatory schedules.
21. Ransomware Does Not Respect Compliance Phases
A contractor can suffer an attack while being fully compliant on paper.
That is why resilience matters.
22. Supply Chains Need Shared Visibility
Prime contractors should understand the security posture of important suppliers.
23. Third-Party Risk Is Increasing
The more connected the defense ecosystem becomes, the more complicated supply-chain security becomes.
24. Identity Deserves Special Attention
Compromised credentials can bypass many traditional security controls.
25. Privileged Accounts Are Particularly Dangerous
An attacker who gains administrative access can potentially disable defenses and access sensitive systems.
26. Logging Must Be Tested
Having logs is not enough.
Organizations must know whether those logs would actually help reconstruct an intrusion.
27. Recovery Is Part of Security
A secure organization must be able to recover from a successful attack.
28. Cybersecurity Maturity Should Be Dynamic
A score measured once cannot represent a constantly changing environment.
29. The Industry Needs Better Metrics
SPRS can remain useful, but organizations should supplement it with operational measurements.
30. Mean Time to Remediate Matters
Knowing how quickly vulnerabilities are fixed can provide more practical insight than a static score.
31. Detection Capability Matters
Organizations should know whether they can detect malicious activity before an attacker reaches critical systems.
32. Incident Response Matters
A contractor’s real cybersecurity maturity becomes visible during a crisis.
- Compliance and Security Should Reinforce Each Other
The two goals should not become competing priorities.
34. The Industry Needs Verifiable Security
The word verifiable is critical.
Security claims should increasingly be backed by technical evidence.
35. Higher Scores Are Encouraging
The +51 result should be recognized as evidence of progress.
36. Lower Confidence Is a Warning
The 65% confidence figure should prevent policymakers from assuming the score tells the complete story.
- The 1% Readiness Figure Is Especially Concerning
If only 1% feel completely prepared for certification, the industry still has considerable work ahead.
38. Better Guidance Could Change That
Clearer requirements and more accessible implementation resources could improve readiness.
39. The Ultimate Objective Is National Security
CMMC exists because compromised contractors can create national-security consequences.
40. Trust Must Be Earned With Evidence
The future of DIB cybersecurity should not depend on whether a spreadsheet says an organization is secure.
It should depend on whether the organization can demonstrate that its defenses actually work.
✅ SPRS Score Increased to +51
The 2026 State of the DIB Report states that the average SPRS score rose to +51 from +33 in 2025.
That represents a substantial improvement in reported cybersecurity maturity.
However, the score reflects assessment results and should not automatically be interpreted as proof that every underlying security control is operationally effective.
✅ Confidence Fell From 89% to 65%
The report states that 65% of contractors were extremely or very confident in the accuracy of their cybersecurity score, compared with 89% in 2025.
That represents a 24-percentage-point decline.
The contrast between higher scores and lower confidence is one of the report’s most significant findings.
✅ Only 1% Reported Complete CMMC Readiness
The study found that only 1% of respondents considered themselves completely prepared for CMMC certification.
The same figure was reported in the earlier CyberSheath study from October 2025.
This suggests that rising SPRS scores have not translated into widespread confidence about full certification readiness.
✅ DFARS Compliance Spending Increased
Average annual DFARS compliance spending was reported at approximately $155,204.
The finding reinforces the argument that the
The more difficult question is whether those investments produce sustainable, measurable and verifiable security.
✅ 90% Support Minimum Cybersecurity Standards
The survey found that 90% of respondents support a legal mandate establishing minimum cybersecurity standards for defense contractors and subcontractors.
That strongly suggests contractors are not rejecting cybersecurity regulation itself.
Instead, many appear to want the implementation process to become easier and more practical.
❌ A High SPRS Score Does Not Prove a Contractor Is Fully Secure
SPRS is an important compliance measurement, but cybersecurity is broader than a single score.
A contractor can have strong documented controls while still suffering from vulnerabilities, misconfigurations, credential theft or ineffective incident response.
Therefore, a high score should be treated as an indicator of maturity rather than an absolute guarantee of security.
Prediction
(+1) CMMC Will Move Toward Continuous, Evidence-Based Verification
The most likely long-term direction is toward a CMMC model that combines formal assessments with continuous technical evidence.
Even if independent assessments remain delayed, the underlying pressure for objective verification will not disappear.
Government agencies need confidence that reported cybersecurity improvements correspond to real protection.
Contractors themselves are also signaling that the current system has a measurement problem.
(+1) Automated Compliance Platforms Will Become More Important
Security automation is likely to become increasingly valuable as contractors attempt to prove that controls remain operational.
Automated configuration monitoring, vulnerability management, asset discovery, identity monitoring and evidence collection can reduce the administrative burden while producing more current evidence.
(+1) Contractors Will Focus More on Operational Security
Organizations that previously treated CMMC primarily as a compliance exercise may increasingly recognize that the same controls can protect against ransomware, credential theft, supply-chain attacks and espionage.
That could transform CMMC from a regulatory burden into a practical security framework.
(-1) Confidence Could Continue Falling Without Independent Validation
If scores continue increasing while confidence remains weak, the credibility gap could become even more significant.
A growing difference between reported compliance and perceived accuracy would put additional pressure on policymakers to strengthen verification mechanisms.
(+1) The Best Contractors Will Treat Compliance as Continuous Security
The strongest DIB organizations will not wait for an assessment date.
They will continuously monitor systems, test defenses, verify backups, review identities, remediate vulnerabilities and collect evidence.
That approach provides something a static score cannot: a living picture of cybersecurity maturity.
The Bigger Lesson for the Defense Industrial Base
The 2026 State of the DIB Report presents a story that is more complicated than either success or failure.
Cybersecurity scores are improving.
Investment is increasing.
Contractors broadly support mandatory security standards.
Yet confidence in the accuracy of those scores is falling, and only a tiny fraction of organizations believe they are completely prepared for certification.
That combination should not be ignored.
The Pentagon’s pause of third-party assessment requirements may provide contractors with additional time, but time alone will not solve the underlying problem.
The DIB needs cybersecurity measurements that are practical enough for specialized businesses to implement and rigorous enough for the government to trust.
The Future of CMMC Depends on Trust
Ultimately, the CMMC debate is about one thing: whether the United States can trust the cybersecurity claims made by the organizations that support its defense infrastructure.
The answer cannot come from higher scores alone.
It must come from evidence.
It must come from functioning controls.
It must come from tested incident-response capabilities.
It must come from resilient infrastructure.
It must come from secure identities and properly managed systems.
And when independent verification returns, it should not merely determine whether contractors completed their paperwork. It should determine whether the protections described on paper actually exist and work.
The 2026 report therefore sends a surprisingly powerful message: the defense industry may be getting better at cybersecurity, but it is becoming less certain about how accurately it can measure that improvement.
That is not necessarily a sign of failure.
In some ways, it could be a sign of growing maturity.
An organization that recognizes the limitations of its own security measurements is already thinking more critically than one that blindly trusts a perfect-looking score.
For the Defense Industrial Base, the next challenge is turning that realization into action.
Because when the target is national security, the most important cybersecurity score is ultimately not the one reported to the government.
It is the one an attacker cannot break.
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