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CMMC-compliant MSPs: what the provider must meet itself

Published 2026-10-22

Hiring an MSP does not move CMMC off your desk. Under 32 CFR 170.4, a provider whose systems hold your CUI, or your Security Protection Data (the logs, configurations, scan results and admin passwords for in-scope systems), is an External Service Provider, and the services it runs are assessed as part of your scope. Your system security plan CA.L2-3.12.4 has to describe them, your incident reporting IR.L2-3.6.2 has to work through them, and their remote maintenance MA.L2-3.7.5 has to use multifactor authentication. Even the vault that holds those admin passwords is in scope; four are compared in password managers for CMMC.

So the question is not which MSP is best at IT. It is which one can show you, in writing, what it meets itself and what it leaves to you. We read five providers' own pages against that test. If you have not yet listed what your MSP touches, the CMMC scoping worksheet does it asset by asset.

Status as of 2026-10-23
In force today
DFARS 252.204-7012 still applies: NIST SP 800-171 Rev 2 on systems that hold covered defense information, cyber incidents reported to DoD within 72 hours, and FedRAMP Moderate or equivalent for any cloud that holds it. DFARS 252.204-7012(b)(2), (c)
Suspended
Phase 2, due in November 2026, is suspended for every contractor, whatever its size: contracts are not adding the third-party Level 2 (C3PAO) or Level 3 (DIBCAC) requirements. DoW CIO memo of 2026-07-13, applied by Class Deviation 2026-O0025 Rev 3
Not yet known
The outcome of the CMMC Reform Task Force review is not confirmed as of 2026-10-23: no report or rule change has been published. Federal Register search, 2026-10-23

What still applies while Phase 2 is suspended

Best overall

C3 Integrated Solutions

It publishes the split: a responsibility matrix over all 320 Level 2 assessment objectives, 234 of them C3's alone, and it states Level 2 certification for both its MSP and MSSP scopes.

Read the C3 Integrated Solutions notes
Best for ITAR shops

Ariento

US personnel with no outsourcing, a GCC or GCC-High build and a Shared Responsibility Matrix. Ask for the US-persons wording in writing before the first drawing moves.

Read the Ariento notes
Best for hosted apps

NeoSystems ISG

The one provider we read that names the 72-hour report in its offer, and it hosts contractor workloads in Azure Government without claiming FedRAMP for itself.

Read the NeoSystems ISG notes
Fig. 01
Mezzotint of a closed server rack with an open tool case in front of it
The rack the MSP looks after and the tool case it brings: both sit inside your boundary once your CUI or its security data is on them.

Which services put your MSP in scope

The rule does not scope an MSP as one thing. It scopes each service by what that service holds and whether it runs in a cloud. A backup of the drawings share holds CUI; the patching agent holds configuration data; the desk phones hold neither. Sort your own contract line by line before you compare providers, because the answer decides which of the questions below you need to ask.

MSP scope sorter

Pre-filled with a typical small shop's MSP contract Example only. Change what each service holds and where it runs; the category comes from the rule's own table.

  • Remote-control sessions on laptops that open drawings

    FedRAMP test appliesFedRAMP Moderate or equivalent, under DFARS 252.204-7012.
  • Backup of the file server that holds drawings

    FedRAMP test appliesFedRAMP Moderate or equivalent, under DFARS 252.204-7012.
  • Patching and monitoring agent (RMM)

    Security Protection AssetIn your scope, assessed on the requirements relevant to what it does.
  • Log collection and 24/7 monitoring (SIEM / SOC)

    Security Protection AssetIn your scope, assessed on the requirements relevant to what it does.
  • Password vault with your admin accounts

    Security Protection AssetIn your scope, assessed on the requirements relevant to what it does.
  • Desk phones and the front-office printer

    Not an ESPHolds neither CUI nor security data, so not an ESP under CMMC.

5 of 6 services put the MSP inside your boundary. Send it these questions:

  1. Send us your service description and customer responsibility matrix for: Remote-control sessions on laptops that open drawings; Backup of the file server that holds drawings; Patching and monitoring agent (RMM); Log collection and 24/7 monitoring (SIEM / SOC); Password vault with your admin accounts. They go in our SSP (32 CFR 170.19(c)(2)(ii)).
  2. What is your own CMMC status, for which scope, and when was it issued? Send the certificate or the SPRS entry.
  3. Which cloud holds our CUI? Send its FedRAMP Marketplace listing at Moderate or above, or the equivalency body of evidence the DoD CIO memo of 2023-12-21 describes.
  4. Will you support our 72-hour report to DoD and keep images and packet captures for at least 90 days after it (DFARS 252.204-7012(c), (e))? Put it in the contract.
  5. Will only U.S. persons, as 22 CFR 120.62 defines them, hold admin access or passwords to systems with our technical data? Giving a foreign person that access is a release (22 CFR 120.56(a)(3)).
  6. Is any company related to you a C3PAO we might hire? The CMMC code of conduct bars anyone who prepared us from taking part in our certification assessment within 3 years (32 CFR 170.8(b)(17)(ii)(G)).
Rule text, 32 CFR 170.16(c)(3)

Your company (the OSA) may use an ESP that is not a cloud provider to handle CUI when:

(i) The use of the ESP, its relationship to the OSA, and the services provided are documented in the OSA's SSP and described in the ESP's service description and CRM.

(ii) The ESP services used to meet OSA requirements are assessed within the scope of the OSA's assessment against all Level 2 security requirements.

32 CFR 170.16(c)(3), Level 2 self-assessment; 170.17(c)(6) says the same for a C3PAO assessment

Read the two lines together and the point is plain: the MSP's work gets assessed whether or not it holds a certificate of its own, and it gets assessed as part of yours. The same table decides how far into scope the rest of your shop sits; the CMMC enclave comparison shows how to keep that part small.

The providers against the rule

Rows inside the boundary are what the rule asks of a provider that holds your CUI or its security data. Rows outside it are what you will notice day to day. Every word was read on the provider's own pages, the FedRAMP Marketplace or the Cyber AB Marketplace on 2026-10-22.

5 vendors compared
CMMC managed service providers compared against the rule
What the rule asksC3 Integrated SolutionsArientoCyberSheathNeoSystems ISGTodyl
Inside the boundary
States its own CMMC status32 CFR 170.19(c)(2)Level 2 certified, statedLevel 2 certified MSP, statedLevel 2 certified, statedLevel 2 certified, statedNo status stated
Customer responsibility matrix for the services it runs32 CFR 170.19(c)(2)(ii); 170.16(c)(3)(i)CRM, 320 objectivesShared Responsibility MatrixFramework statedNot statedCustomer duties page
US-persons support path, for shops with ITAR data22 CFR 120.50(a)(2), 120.56(a)(3)US-based SOC statedUS personnel statedNot statedNot statedNot stated
Supports your 72-hour incident report and 90-day image retentionDFARS 252.204-7012(c), (e)IR stated, 72 h not namedIR stated, 72 h not namedIR testing stated72 h support stated24/7 MXDR, 72 h not named
FedRAMP Moderate or equivalent for any cloud it puts your CUI inDFARS 252.204-7012(b)(2)(ii)(D)Inherited from platformInherited from platformInherited from platformInherited from platformNot in Marketplace
Outside the boundary
Role on the Cyber AB MarketplaceRPOC3PAORPONot foundNot found
Help desk for your usersStatedUnlimited tier 1, remoteStatedNot statedChannel only
Resells or bundles Microsoft government licencesAOS-G partnerBundled (Enclave One)AOS-G memberLicensing guidanceNot stated
On-site visitsNot statedNot statedNot statedNot statedNot stated

What the words mean

MeetsLevel 2 certified, statedCRM, 320 objectivesRPOStatedAOS-G partnerLevel 2 certified MSP, statedShared Responsibility MatrixC3PAOUnlimited tier 1, remoteBundled (Enclave One)AOS-G member
The vendor's own documentation, or the official register, says so. Read on the date shown.
PartialUS-based SOC statedIR stated, 72 h not namedInherited from platformUS personnel statedFramework statedIR testing stated72 h support statedLicensing guidanceCustomer duties page24/7 MXDR, 72 h not named
Covers part of the requirement, or the vendor claims it and the official register does not show it.
Check with vendorNot statedNot foundNo status statedNot in Marketplace
Not stated in what we read. Ask the vendor in writing before you rely on it.
NoChannel only
The vendor's own documentation says it does not.

Five things to get in writing

Each row of the table is a question for the sales call, and each answer belongs in the contract, not in a slide. The questions the sorter above writes for you draw on these five.

Its own status, and what it covers

The rule does not require an MSP to be certified. 32 CFR 170.19(c)(2)(ii) says an ESP “may voluntarily undergo a CMMC certification assessment” to reduce the effort during yours. Four of the five providers we read state a Level 2 certification of their own. A certificate covers a scope, so ask which operations it covers and when it was issued: C3, for example, names two scopes, its MSP and its MSSP operations.

Do not read a Marketplace badge as a certificate. RPO and C3PAO are roles on the Cyber AB Marketplace; the CMMC Statuses in the rule are Level 1 (Self), Level 2 (Self), Level 2 (C3PAO) and Level 3 (DIBCAC). The difference is set out in what a CMMC RPO is.

The responsibility matrix, objective by objective

Your SSP has to describe each ESP service and point to the ESP's customer responsibility matrix. A matrix that says “shared” against a whole control family will not survive an assessor. The standard to ask for is the one C3 publishes: every Level 2 assessment objective assigned to a side.

C3 Command

234

objectives C3 says it meets alone

C3 Command

38

shared between C3 and you

C3 Command

48

yours, with C3's guidance

Of the 320 Level 2 assessment objectives; C3's own figures, read on its site on 2026-10-22.

US persons, if you hold ITAR data

Under ITAR, releasing technical data to a foreign person inside the United States is an export (22 CFR 120.50(a)(2)), and handing someone the password or key that lets them view it unencrypted is a release (22 CFR 120.56(a)(3)). An MSP admin with rights on the drawings share is exactly that someone. The term that matters is “U.S. person” in 22 CFR 120.62: in practice a US citizen or national, a green-card holder, or a refugee or asylee who qualifies as a protected individual.

Help with the 72-hour report, in the contract

The reporting duty in DFARS 252.204-7012 sits on you, the contractor; hiring an MSP does not move it. What the MSP can do is make the deadline possible: spot the incident, run the review the clause asks for, and preserve the evidence.

Two practical points follow. Reporting needs a DoD-approved medium assurance certificate, so get yours before the incident, not during it. And the 90 days run from your report, so the MSP's log and backup retention has to reach past them. Where the MSP's work involves covered defense information, paragraph (m) has you put the clause itself in the subcontract or similar instrument. The whole clause is walked through in DFARS 252.204-7012 explained.

The cloud it puts your CUI in

If the MSP stores, processes or transmits your CUI in a cloud, that cloud has to meet the FedRAMP Moderate baseline or its equivalent and follow the clause's incident paragraphs, (c) to (g). Most MSPs on this page build on Microsoft: on 2026-10-22 the FedRAMP Marketplace listed Microsoft 365 GCC-High and Azure Government as FedRAMP Certified at High. An MSP's own tools are a separate question, and none of the five providers here is listed itself.

What never moves to the MSP

A good MSP can carry most of the technical requirements. The ones it cannot carry are the ones the rule ties to your company by name: your score, your affirmation, your report. Even the platforms MSPs run on say so; Todyl writes that its platform cannot fulfil the PE, PS, MA or MP controls for anyone.

The MSP can run
  • Patching, configuration baselines and change records
  • Log collection, 24/7 monitoring and the evidence an incident needs
  • Backups, including the copies that hold CUI
  • Remote maintenance, with multifactor authentication (MA.L2-3.7.5)
  • Drafts of the SSP, POA&M and policies
Stays with you
  • The score you enter in SPRS, and your Affirming Official's affirmation
  • The 72-hour report to DoD, under your own certificate
  • Knowing which drawings and specs are CUI, and marking them
  • Locks, badges and visitors in your building (the PE family)
  • Screening your own people before they get access (PS.L2-3.9.1)

The providers, one by one

Managed IT and security

C3 Integrated Solutions

What it is. A managed IT and security provider built for the defense industrial base. Its C3 Command package runs your environment on Microsoft 365 GCC High or Azure Government with a 24/7 US-based SOC and help desk, and its customer responsibility matrix assigns all 320 Level 2 assessment objectives: 234 to C3 alone, 38 shared, 48 where C3 guides you.

Who it fits. A shop that wants one firm to own most of the controls and is willing to live inside C3's reference architecture rather than its own design.

What the rule asksWhat we found
States its own CMMC statusLevel 2 certified, stated
Customer responsibility matrix for the services it runsCRM, 320 objectives
Supports your 72-hour incident report and 90-day image retentionIR stated, 72 h not named

Checked on c3isit.com, 2026-10-22

Check with the vendor before you buy.

MSP and C3PAO

Ariento

What it is. An MSP that is also a C3PAO on the Cyber AB Marketplace. Its Turnkey CMMC service says it covers up to 93% of Level 2 assessment objectives, with a Shared Responsibility Matrix, unlimited tier 1 remote help desk and a 24x7 operations center; its Enclave One bundles GCC or GCC-High licences for a subset of your users.

Who it fits. A small shop with ITAR drawings that wants US staff and a ready-made enclave, and that will hire a different C3PAO for its own assessment.

What the rule asksWhat we found
US-persons support path, for shops with ITAR dataUS personnel stated
Customer responsibility matrix for the services it runsShared Responsibility Matrix
FedRAMP Moderate or equivalent for any cloud it puts your CUI inInherited from platform

Checked on ariento.com, 2026-10-22

Check with the vendor before you buy.

Managed compliance

CyberSheath

What it is. A Reston, Virginia firm that runs managed IT, managed security and managed compliance for defense contractors, usually by moving clients into Microsoft 365 GCC or GCC High. It is an RPO on the Cyber AB Marketplace and states that it holds CMMC Level 2 certification itself.

Who it fits. A shop that wants the remediation work inside the managed service: CyberSheath says it does not charge separately for compliance remediation projects.

What the rule asksWhat we found
States its own CMMC statusLevel 2 certified, stated
Customer responsibility matrix for the services it runsFramework stated
Resells or bundles Microsoft government licencesAOS-G member

Checked on cybersheath.com, 2026-10-22

Check with the vendor before you buy.

Managed IT and hosting

NeoSystems ISG

What it is. A government-contractor IT practice under new ownership since May 2026, backed operationally by FIT Solutions. It states Level 2 certification as an MSP, runs GCC and GCC High enclaves, and hosts contractor workloads in Azure Government, while saying plainly that it does not claim FedRAMP authorization for itself.

Who it fits. A shop that runs its own applications, such as an ERP or a file server, and wants them hosted in a FedRAMP-authorized cloud with help on the 72-hour report when something happens.

What the rule asksWhat we found
Supports your 72-hour incident report and 90-day image retention72 h support stated
FedRAMP Moderate or equivalent for any cloud it puts your CUI inInherited from platform
Customer responsibility matrix for the services it runsNot stated

Checked on neosystemsisg.com, 2026-10-22

Check with the vendor before you buy.

Platform MSPs run on

Todyl

What it is. Not an MSP but a security platform many MSPs run on: SASE, SIEM, endpoint security, 24/7 MXDR and a GRC module, sold only through partners. Todyl calls itself a Security Protection Asset provider that secures its own platform and supplies ESP evidence, and says it cannot fulfil the PE, PS, MA or MP controls for you.

Who it fits. A shop whose current MSP is good but under-tooled. Ask which platform your MSP runs, and list it in your SSP as a Security Protection Asset.

What the rule asksWhat we found
States its own CMMC statusNo status stated
FedRAMP Moderate or equivalent for any cloud it puts your CUI inNot in Marketplace
Customer responsibility matrix for the services it runsCustomer duties page

Checked on todyl.com, 2026-10-22

Check with the vendor before you buy.

How we read the providers

Questions small shops ask

Questions
Does my MSP need its own CMMC certificate?

No. The rule lets an MSP undergo a certification assessment voluntarily, to make yours lighter. Without one, the services it runs for you are still assessed, as part of your own assessment, against all Level 2 requirements. A certificate saves time; its absence is not a breach.

Is a CMMC RPO the same as a CMMC-certified MSP?

No. The Cyber AB describes a Registered Practitioner Organization (RPO) as one that “delivers a non-certified advisory service”. It is a role on the Cyber AB Marketplace, not one of the CMMC Statuses in 32 CFR 170, so it is not evidence of how the firm runs its own systems. Two of the providers on this page are RPOs; ask each for its own status separately.

Does the Phase 2 suspension change what I need from an MSP?

Not much. DFARS 252.204-7012 still applies to any contract that carries it, with its 72-hour reporting and its cloud rule, and a contract may still require a Level 2 self-assessment, which scopes ESPs the same way. The CMMC status page keeps the current position.

Our MSP has engineers outside the US. Is that a problem?

For ITAR technical data, yes, unless you hold an authorization: letting a foreign person view it, or giving them the password that lets them, is an export. For CUI that is not export-controlled, DFARS 252.204-7012 has no citizenship rule, but NIST SP 800-171 asks you to screen people before they get access to systems with CUI.

Either way, ask the MSP where admin access is exercised from and by whom, and write the answer into the contract.

Is a software platform like Todyl an ESP?

If it holds your logs, configurations or vulnerability data, yes: that is Security Protection Data, and the platform is in your scope as a Security Protection Asset. It needs the FedRAMP test only if CUI goes into it. Compliance software is scoped the same way; see CMMC compliance software compared.