New research based on interviews with five independent C3PAOs finds defense contractor unpreparedness rooted in cost and complexity, not assessor capacity. Culpeper, VA, United States — August 11, 2026 Sentinel Blue, a managed security services provider supporting the Defense Industrial Base (DIB), today released a new industry report examining the state of CMMC Level 2 readiness in the wake of the Department of Defense's July 13 suspension of CMMC Phase II. The report, based on interviews with five C3PAOs, finds that the DIB's lack of readiness has less to do with assessor capacity and far more to do with the cost and complexity of the framework itself. While the DoD cited a shortage of available C3PAOs relative to the roughly 100,000 DIB businesses requiring assessment, the report finds that assessors have consistently turned away prospective clients for a different reason: those organizations simply weren't prepared for assessment, regardless of scheduling availability. The report identifies two consistent barriers keeping organizations from readiness: a widespread lack of understanding of what CMMC assessment requires, and the substantial cost of both preparation and certification. It also outlines which organizational profiles tend to fare better or worse in assessments, the documentation failures that most often derail an engagement, and the specific controls that trip up organizations most often. Sentinel Blue released the report as DoD collects industry input through an RFI closing August 14, five of whose seven questions ask contractors about the cost and burden of implementing the framework. The task force is expected to deliver recommendations in mid-September.