The U.S. Army is rolling out a new initiative to assist small businesses in meeting the cybersecurity requirements of the Department of Defense (DOD) as part of the Cybersecurity Maturity Model Certification (CMMC) program. Known as the Next-Generation Commercial Operations in Defended Enclaves (NCODE), the pilot program will provide a secure platform where small businesses can collaborate and work safely on defense-related tasks.
Undersecretary of the Army Gabe Camarillo unveiled the NCODE program during the 2024 Association of the United States Army Annual Meeting in Washington. He explained that this new system will offer the cybersecurity tools necessary for small businesses to comply with the strict CMMC requirements, protecting sensitive data and reducing vulnerabilities.
Securing Small Businesses from Cyber Threats
Camarillo highlighted the need for a program like NCODE, noting that many small businesses lack the resources to protect themselves from increasingly sophisticated cyber threats.
Many small businesses partnering with the defense sector face cyberattacks from adversaries trying to exploit weaknesses. NCODE will create a highly secure environment for businesses to operate safely, ensuring that all their work meets CMMC guidelines and is protected from outside threats.
Army’s Financial Investment in NCODE
To support NCODE, the Army has allocated approximately $26 million for fiscal years 2025 and 2026. This funding will help build the necessary infrastructure for secure workspaces, collaboration tools, and software development capabilities. The program will enable small businesses to work on sensitive defense projects without fear of data breaches or cyberattacks.
While specific details about participation and the number of businesses involved are still under development. Camarillo expressed confidence that the program will evolve over time. The program is likely to be based on feedback given by the initial participants.
DOD’s Efforts to Support Small Businesses
The DOD Office of Small Business Programs plays a key role in helping small businesses succeed within the defense industry. Program director Farooq Mitha spoke about various DOD initiatives. This included the APEX Accelerator program, which teaches small companies how to work with the government.
The APEX Accelerator program, previously managed by the Defense Logistics Agency. And now operates under the DOD, with 97 centers across the country helping businesses navigate government contracts. These centers also offer guidance on complying with CMMC and other DOD requirements.
Enhancing the Mentor-Protege Program
The DOD has also made significant improvements to its Mentor-Protege Program. This pairs small businesses with larger, experienced defense contractors. In order to guide them in expanding their operations. The program has seen updates to make it more effective, including securing new funding and expediting the contract process.
One of the key changes to the program has been lowering the revenue requirement for mentor companies, from $100 million to $25 million. This allows small and mid-sized businesses to serve as mentors, which Mitha believes can sometimes be more beneficial than pairing small businesses with much larger corporations. “We believe strongly that sometimes, or often, small and medium-sized businesses can mentor small businesses better than a large company,” Mitha explained.
Additionally, a new pilot program under the Mentor-Protege initiative offers up to 25% reimbursement to protege businesses for costs related to engineering, software development, or manufacturing customization. The DOD has also reduced the time it takes to establish mentor-protege contracts. What used to take up to 18 months is now completed in as little as 60 days, thanks to a streamlined contracting process.
Building a Stronger Defense Industrial Base
NCODE is part of other initiatives from the DOD. It aims to support small businesses as they navigate cybersecurity challenges and expand their presence in the defense sector. These programs provide the tools and resources that businesses need to protect sensitive information and comply with defense industry standards.
Thus helping small businesses strengthen their cybersecurity capabilities and providing guidance through mentorship. The Army and the DOD are ensuring a more resilient and capable defense industrial base. These efforts are essential to safeguarding national security. While enabling businesses to thrive within the defense sector.
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