Getting Ahead of CMMC Level 2: How QED Enterprises Turned Early Action into a Competitive Advantage

Executive summary

QED Enterprises, Inc., a Stafford, VA-based government contractor founded in 2007, pursued CMMC Level 2 certification early, well ahead of broad Phase 2 enforcement, after leadership concluded CMMC would become a gating requirement across the defense supply chain.

Working with Cape Endeavors, QED built and operationalized an assessment-ready compliance program and achieved CMMC Level 2 certification with a perfect score, demonstrating full implementation of all 110 NIST SP 800-171 controls along with repeatable evidence and durable operational maturity.

Why QED Chose to Pursue CMMC Early

QED has consistently taken a proactive approach to regulatory and security requirements. In 2021, after attending multiple industry conferences and defense-focused events, leadership recognized that CMMC implementation was inevitable and would fundamentally reshape defense contracting.

Rather than waiting for enforcement deadlines, QED made the strategic decision to pursue certification early. This approach positioned the company ahead of thousands of small business contractors competing for federal and defense work and provided a measurable competitive advantage once certification became a procurement differentiator.

As of January 2026, QED is among just over 400 small businesses certified at CMMC Level 2 through a C3PAO assessment. This is significant given that approximately 60,000 to 65,000 small business contractors currently provide goods and services to the federal government, with many more seeking to enter the market.

What a Perfect Score Means in Practice

Achieving a perfect CMMC Level 2 score reflects far more than checklist compliance. It represents a fundamental shift in how cybersecurity is implemented, managed, and sustained across the organization.

A perfect score demonstrates three core outcomes:

1. First, technical security controls are properly configured and operating as intended. This includes access control, encryption, logging, monitoring, and incident response capabilities.

2. Second, QED maintains comprehensive and defensible evidence showing not only that controls exist, but that they are consistently applied, monitored, and effective over time.

3. Third, the organization has reached operational maturity. Security practices are documented, repeatable, and embedded into daily operations rather than treated as a one-time audit exercise.

This maturity ensures employees understand why security controls matter, not simply that they exist.

Advice for Small Businesses Preparing for Phase 2 Enforcement

QED’s guidance for small businesses approaching Phase 2 enforcement is direct.

Start early but start smart. Conduct a comprehensive gap assessment against all 110 NIST SP 800-171 controls.

Define scope early by establishing a defensible assessment boundary. This includes identifying the specific people, technology, and facilities that must comply with security controls. Clear scoping is the foundation for accurate budgeting, realistic timelines, and assessment success.

Engage experienced CMMC partners who understand both technical requirements and the realities of small business operations. Cape Endeavors served as a trusted partner for QED Enterprises by bringing proven experience guiding defense contractors through CMMC scoping, CUI discovery, and assessment preparation based on how C3PAO evaluations actually work. Their disciplined approach to defining the assessment boundary, validating evidence across all 110 NIST SP 800-171 controls, and preparing QED for assessor interviews reduced rework, minimized assessment risk, and resulted in a certified enclave that was both compliant and sustainable.

Recognize that CMMC is not an IT-only initiative. It requires leadership commitment, sustained funding, and organizational behavior change.

Finally, understand the market reality. Department of Defense contracts will require C3PAO certification. Organizations without certification will find themselves excluded from opportunities as work shifts to certified competitors.

How CMMC Readiness Is Reshaping Prime and Subcontractor Relationships

CMMC certification has materially changed how prime contractors evaluate subcontractors. Cybersecurity posture is now a qualifying requirement rather than a secondary consideration.

Prime contractors carry risk for every organization that touches Controlled Unclassified Information (CUI). A single non-compliant subcontractor can jeopardize an entire program. As a result, primes increasingly require proof of CMMC certification before entering partnership discussions.

For certified small businesses like QED, this shift has created opportunity. Certification is no longer a cost of doing business. It is a differentiator that enables participation in contracts that would otherwise be inaccessible.

Certification also signals organizational maturity, investment in security infrastructure, and commitment to safeguarding sensitive data. This reduces friction and builds trust between primes and subcontractors.

CMMC Level 2 Certification Is Only the Beginning

CMMC Level 2 certification requires ongoing compliance through annual self-assessments and recurring third-party assessments. QED has embedded continuous monitoring and improvement into daily operations, recognizing that cybersecurity is an evolving discipline rather than a one-time milestone.

Beyond competitive positioning, the CMMC journey elevated security awareness across the entire organization and strengthened QED’s long term operational resilience.

Ready to achieve CMMC Level 2 with confidence? Talk to Cape Endeavors today.