Photo of Michael G. Gruden, CIPP/GPhoto of Evan D. WolffPhoto of Maida Oringher LernerPhoto of Jacob HarrisonPhoto of Alexis Ward

On August 15, 2024, the Department of Defense (“DoD”) released the long-awaited proposed rule (“August 2024 Proposed Rule”), updating Defense Federal Acquisition Regulation Supplement (“DFARS”) Clause 252.204-7021 (the “7021 Clause”), which, when final, will initiate the phased implementation of Cybersecurity Maturity Model Certification 2.0 (“CMMC”) requirements into DoD contracts. 

The August 2024 Proposed Rule introduces several distinct changes to the 7021 Clause published by DoD in January 2023, including:

  • Instructing Contracting Officers to fill in the required CMMC Level in each in-scope DoD contract.
  • Requiring contractors to “maintain the CMMC level required by [the] contract for the duration of the contract for all information systems” that handle FCI or CUI.
  • Requiring contractors to notify the Contracting Officer within 72 hours if there are any “lapses in information security” or changes to the status of the CMMC certification—including in self-assessment certification.
  • Requiring contractors to affirm “continuous compliance” on an annual basis or when changes to the status of their CMMC certifications occur.
  • Requiring that contractors “ensure” that subcontractors have current CMMC certificates or self-assessments at the required flowdown level.

Heightened cybersecurity requirements and greater scrutiny on compliance will increase risks and potential consequences for defense contractors, particularly in the context of the Department of Justice’s Civil Cyber Fraud Initiative and False Claims Act litigation.  Thus, contractors need to be prepared for the upcoming implementation of CMMC.  Comments on the proposed rule will be accepted for 60 days. 

The 7021 Clause has been dormant during the CMMC rulemaking process, but DoD has stated that it will become active and begin appearing in DoD contracts when the August 2024 Proposed Rule is finalized.  However, it is likely that not all contractors will be required to fully comply with all CMMC requirements immediately.  The August 2024 Proposed Rule affirms that, as outlined in DoD’s December 2023 CMMC Proposed Rule, CMMC requirements are slated to roll out to contractors in phases over a three year period.

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Photo of Michael G. Gruden, CIPP/G Michael G. Gruden, CIPP/G

Michael G. Gruden is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Government Contracts and Privacy and Cybersecurity groups. He possesses real-world experience in the areas of federal procurement and data security, having worked…

Michael G. Gruden is a counsel in Crowell & Moring’s Washington, D.C. office, where he is a member of the firm’s Government Contracts and Privacy and Cybersecurity groups. He possesses real-world experience in the areas of federal procurement and data security, having worked as a Contracting Officer at both the U.S. Department of Defense (DoD) and the U.S. Department of Homeland Security (DHS) in the Information Technology, Research & Development, and Security sectors for nearly 15 years. Michael is a Certified Information Privacy Professional with a U.S. government concentration (CIPP/G). He is also a Registered Practitioner under the Cybersecurity Maturity Model Certification (CMMC) framework. Michael serves as vice-chair for the ABA Science & Technology Section’s Homeland Security Committee.

Michael’s legal practice covers a wide range of counseling and litigation engagements at the intersection of government contracts and cybersecurity. His government contracts endeavors include supply chain security counseling, contract disputes with federal entities, suspension and debarment proceedings, mandatory disclosures to the government, prime-subcontractor disputes, and False Claims Act investigations. His privacy and cybersecurity practice includes cybersecurity compliance reviews, risk assessments, data breaches, incident response, and regulatory investigations.

Photo of Evan D. Wolff Evan D. Wolff

Evan D. Wolff is a partner in Crowell & Moring’s Washington, D.C. office, where he is co-chair of the firm’s Chambers USA-ranked Privacy & Cybersecurity Group and a member of the Government Contracts Group. Evan has a national reputation for his deep technical…

Evan D. Wolff is a partner in Crowell & Moring’s Washington, D.C. office, where he is co-chair of the firm’s Chambers USA-ranked Privacy & Cybersecurity Group and a member of the Government Contracts Group. Evan has a national reputation for his deep technical background and understanding of complex cybersecurity legal and policy issues. Calling upon his experiences as a scientist, program manager, and lawyer, Evan takes an innovative approach to developing blended legal, technical, and governance mechanisms to prepare companies with rapid and comprehensive responses to rapidly evolving cybersecurity risks and threats. Evan has conducted training and incident simulations, developed response plans, led privileged investigations, and advised on hundreds of data breaches where he works closely with forensic investigators. Evan also counsels businesses on both domestic and international privacy compliance matters, including the EU General Data Protection Regulation (GDPR), and the California Consumer Privacy Act (CCPA). He is also a Registered Practitioner under the Cybersecurity Maturity Model Certification (CMMC) framework.

Photo of Maida Oringher Lerner Maida Oringher Lerner

Maida Lerner is senior counsel in Crowell & Moring’s Washington, D.C. office and a part of the firm’s Privacy & Cybersecurity, Government Contracts, and Environment & Natural Resources groups. Maida counsels a broad group of clients in a variety of sectors on cyber…

Maida Lerner is senior counsel in Crowell & Moring’s Washington, D.C. office and a part of the firm’s Privacy & Cybersecurity, Government Contracts, and Environment & Natural Resources groups. Maida counsels a broad group of clients in a variety of sectors on cyber and physical security compliance and risk management, homeland security, and administrative matters, including trade associations and companies in the pipeline, transportation, government contracts, education, health care, and manufacturing sectors.

Photo of Jacob Harrison Jacob Harrison

Jacob Harrison helps his clients navigate both domestic and international legal challenges.

Jake advises U.S. government contractors on internal investigations and state and federal regulatory compliance. His compliance practice focuses on counseling clients operating at the intersection of government contracts and cybersecurity, including

Jacob Harrison helps his clients navigate both domestic and international legal challenges.

Jake advises U.S. government contractors on internal investigations and state and federal regulatory compliance. His compliance practice focuses on counseling clients operating at the intersection of government contracts and cybersecurity, including for cybersecurity compliance reviews, risk assessments, and data breaches.

In his international practice, Jake represents foreign and domestic clients in Foreign Sovereign Immunities Act and Anti-Terrorism Act litigation. He also has experience advising clients involved in cross-border commercial arbitration proceedings.

During law school, Jake served as an associate editor of the Emory Law Journal and interned at the Supreme Court of Georgia and the Georgia House Democratic Caucus. Before attending law school, Jake worked in politics and state government.

Photo of Alexis Ward Alexis Ward

Alexis Ward represents clients in a variety of matters at the intersection of government contracts and cybersecurity utilizing her experience in analytics and data architecture to counsel clients with a practical, real-world lens. As a member of Crowell & Moring’s Privacy and Cybersecurity

Alexis Ward represents clients in a variety of matters at the intersection of government contracts and cybersecurity utilizing her experience in analytics and data architecture to counsel clients with a practical, real-world lens. As a member of Crowell & Moring’s Privacy and Cybersecurity and Government Contracts groups, Alexis has assisted clients in matters including False Claims Act investigations; developing corporate policies, procedures and governance; and in diverse matters involving cybersecurity and data privacy compliance, risk assessment and mitigation, and incident response.

During law school, Alexis founded USC Gould’s Privacy and Cybersecurity Law Society and was on the board of OUTLaw. Alexis also worked as a teaching assistant for the graduate programs’ Information Privacy Law course. Her paper The Oldest Trick in the Facebook: Would the General Data Protection Regulation Have Stopped the Cambridge Analytica Scandal? was published by the Trinity College Law Review.