Systems & Communication Protection (SC): The Digital Security Guard Your Contracts Depend On

When One Tiny Setting Nearly Sank a Multi-Million-Dollar Contract

A machining company in the Midwest – small team, big government customer – had just wrapped a successful prototype delivery for a DoD program. The quality was flawless. The engineers were proud. The Program Manager was already talking about follow-on work.

Then came the security review.

Nothing dramatic – no breaches, no ransomware, no insider gone rogue. Just one overlooked configuration: They were transmitting engineering drawings to a subcontractor over an unsecured file-sharing tool.

No encryption. No access restrictions. Anyone with the link could have opened the files.

It took one week for the prime contractor’s cybersecurity team to escalate the issue. The company’s CEO wasn’t worried at first… “It’s just a file transfer; we’ve been doing it this way for years.” But the response from the prime was blunt:

“If you cannot demonstrate secure communication pathways and adequate system protections within 30 days, we cannot continue sending you controlled data.”

The company nearly lost a contract that represented 40% of its revenue – not because they were hacked, but because their communications and system protections weren’t defensible.

This is the world of CMMC System and Communications Protection (SC) – not dramatic headlines, but small gaps in configuration and communication channels that quietly put your contracts on the line.

What Meeting the Objectives Might Look Like

CMMC Level 2’s SC family includes requirements like encryption, boundary protection, security functions, and controlling how information flows in and out of your environment. Here’s what auditors usually expect (in practical English):

• You encrypt sensitive data (CUI) wherever it travels outside your protected systems – email, file transfers, cloud storage, remote access, etc.
• You have firewalls and filtering tools that restrict traffic – not “allow all” setups, but intentional rules with documentation.
• You control remote connections using VPNs, MFA, and secure protocols.
• You segment your network (at least logically) so CUI systems aren’t sitting on the same flat network as guest Wi-Fi.
• You disable risky or unused services (like legacy protocols, open ports, peer-to-peer tools).
• You monitor for unauthorized connections, especially outbound to suspicious destinations.
• You document configuration standards so security settings aren’t left to chance or forgotten.

In short: Nothing exotic. No “military-grade” anything. Just clean, controlled, intentional communication pathways… like a gated entrance to your digital property.

Why It Matters: Because strong defense starts long before an attack begins

Most SMBs think of “communications protection” as a technical requirement. Firewalls, encryption, VPNs… IT stuff. But in the Defense Industrial Base, SC is business continuity, revenue protection, and customer trust. Here’s why:

• Your prime contractors assume you already have secure channels. If they discover you don’t, they’ll cut ties fast – not because they want to, but because they’re legally obligated.
• Most breaches in SMBs start with unprotected communication paths. Could be a bad email rule… an open port… a legacy connection left active… a VPN without MFA. Hackers don’t usually come through the front door. They slip through the cracks.
• SC failures create expensive downtime and incident response. Recovering from poor communication protections is far costlier than implementing them properly.
• Contracts now depend on your ability to prove configuration management. DoD and primes no longer accept “trust us… we think it’s configured right.”
  They expect documentation, screenshots, monitoring, and repeatable processes.
• Strong SC controls improve operational efficiency. A segmented network, standardized configurations, and managed remote access reduce outages and reduce IT chaos.

In short: SC isn’t about technology. It’s about reliability, resilience, and keeping the work you’ve earned.

Where Most Companies Slip Up

You can almost predict the top trouble spots during assessments. SC is full of “easy to overlook” responsibilities that pile up over years.

• Flat networks everywhere. Printers, laptops, CNC machines, CUI servers, and guest Wi-Fi all sitting on one network. Auditors call this “a single point of failure with unlimited blast radius.”
• No outbound traffic rules. Firewalls that block incoming threats but let anything leave. A huge blind spot.
• Email encryption… kinda. Some companies think their Microsoft 365 or Google Workspace is “already encrypted,” not realizing sensitive data still needs deliberate protection.
• Old remote access tools still enabled. TeamViewer, LogMeIn, AnyDesk, and old VPN accounts that nobody remembers. Golden keys for attackers.
• Cloud misconfigurations. Overly permissive file-sharing links. Public buckets. “Shared with anyone with the link” settings.
• No security configuration standards. Each machine ends up configured differently based on who set it up.
• Weak monitoring. Outbound traffic isn’t reviewed. DNS isn’t monitored. Logs aren’t centralized.

These issues aren’t the result of incompetence – they’re the result of day-to-day business pressure. Operations come first. Security slips. The SC family is where that gap becomes dangerous.

How to Start Strong (and Grow Stronger)

Here’s a two-tiered approach: a “Starting Point” for compliance, and then the NEX Level enhancements to build real resilience and business advantage. 

A Starting Point: The Minimum to Meet Compliance

These are practical actions you can implement relatively quickly to satisfy the assessment objectives for SC and lay the foundation for good identity hygiene… 

1. Encrypt all external communication involving CUI. Use Microsoft 365 Message Encryption or a secure file-sharing tool. Disable public links. Require authenticated access.
2. Implement a business-grade firewall with documented rules. Block inbound by default. Allow only specific outbound destinations (at least common-sense restrictions). Disable unused services.
3. Set up secure remote access. VPN with MFA. Disable split tunneling. Remove old accounts and tools.
4. Segment the network. Separate CUI systems from the general business network. Put printers, cameras, IoT devices, and guest Wi-Fi on isolated VLANs.
5. Establish secure configuration baselines. CIS benchmarks or vendor baselines are enough at this stage. Apply them consistently.
6. Log and monitor connections. At least firewall logs and endpoint logs. Store them for 90 days minimum.

By ticking off these nine steps, you can demonstrate to an assessor (or yourself) that your SC controls are actively managed and aligned with CMMC requirements. 

The NEX Level: Turning Compliance into Competitive Advantage

Once you’ve covered the basics, here are advanced practices you can turn into competitive advantage… not just compliance. 

• Zero-Trust-Inspired Segmentation. Micro-segment critical systems so a compromise in office IT can’t reach CUI workloads. Bonus: improves uptime and reduces lateral movement.
• DNS Filtering and Egress Control. Stop malware before it starts by restricting outbound connections to known-good destinations.
• Secure Cloud Architecture With Least Privilege. Granular file-sharing controls, conditional access policies, and automated link expiration.
• Automated Configuration Enforcement. Use tools like Intune, Jamf, or RMM policies to enforce secure baselines automatically. Human error → minimized.
• Managed Detection & Response (MDR). Real-time monitoring and threat detection on communication pathways. This is the biggest measurable jump in resilience.
• Encrypted Internal Traffic. TLS inside the network prevents snooping or lateral movement.
• Formal Network Diagrams & Data Flow Maps. Auditors love them. Your IT team will love them more – they make troubleshooting and planning exponentially easier.
• Threat-Driven Testing. Purple Teaming, simulated phishing, and adversary-style testing to validate your communication boundaries.

These enhancements raise your maturity level and creates a culture of communications security… and that culture shows in assessments, customer reviews, and operational uptime.

The Factory Gate Lesson 

Imagine your business as a manufacturing plant. You wouldn’t let trucks drive straight from the highway onto the factory floor. You’d have:

• A main gate
• A visitor sign-in
• Badge access
• Cameras
• Designated loading areas
• Controlled pathways

Why? Because unrestricted access creates chaos, safety hazards, and theft. Your digital systems are no different. System and Communications Protection is your plant’s perimeter, gates, signage, and escort policy – digitized. Without it, anything can wander in or out, and you may not know until it’s too late.

Takeaway: Protect your digital gates the same way you protect your physical ones.

Helpful Resources

Here are some resources to help you dig deeper and operationalize the SC control family…

Framework & Standards

• DoD CMMC Resources – Official documentation from the DoD covering CMMC Model v2.0.
• NIST SP 800-171 Rev. 2 – Full text from NIST, the source standard that CMMC maps to.
• CIS Benchmarks – Free configuration hardening guides for Windows, Linux, network devices, and cloud platforms.

Free Resources

• CISA Known Exploited Vulnerabilities (KEV) Catalog – Lets you validate whether communication-related vulnerabilities affect your environment.
• Microsoft Secure Score – A free security scoring and improvement tool for M365 tenants.
• OpenVAS Vulnerability Scanner – Free scanner for identifying insecure services, ports, and configurations.

Paid Resources

• FortiGuard Managed Detection and Response (MDR) – Provides 24/7 monitoring and threat detection across your network and endpoints, giving SMBs real-time alerts and guided response without needing a large in-house security team. This helps small businesses quickly identify and contain attacks before they affect CUI or critical operations.
• CYYNC – A centralized system to plan and track evidence collection, conduct and document self-assessments, manage POA&M items through remediation, and maintain a continuous audit trail.
• Cisco Umbrella– Acts as a cloud-based gateway that blocks malicious or unauthorized connections before they reach your network, protecting SMBs from phishing, malware, and data exfiltration without complex on-prem infrastructure. It simplifies enforcing secure internet access for employees and remote workers.
• Cloudflare Gateway (Zero Trust) – Provides DNS and web filtering to stop threats at the edge, plus secure web gateway functionality, helping SMBs enforce least-privilege access and reduce exposure to ransomware and data leaks. It’s particularly useful for small teams needing enterprise-level controls without heavy IT overhead.

CyberNEX Resources

• CMMC Decoded: Systems & Communications Protection Reference Sheet – A concise one-page guide for defense contractors that outlines the SC control family, explains why it matters, highlights examples of evidence auditors might expect, provides quick-win actions to get started, and includes links to available resources.
• CyberNEX Blog Archive – Explore all 14 CMMC control families with in-depth explainers, practical recommendations, and actionable insights tailored to defense contractors.

Take the NEXt Step

If you’re an SMB in the Defense Industrial Base, System and Communications Protection is one of the most impactful ways to demonstrate CMMC Level 2 compliance while immediately strengthening your operations. The true advantage comes when your business uses SC practices not just to meet audit objectives, but to protect critical data, prevent costly disruptions, and earn the trust of your partners and the DoD. Whether your goal is passing an assessment or building a resilient, defensible cybersecurity program, CyberNEX helps you move from “checking the box” to confidently owning your security posture.

Our team has guided dozens of SMBs through CMMC readiness, helping them translate complex requirements around encryption, network segmentation, and secure communications into simple, actionable steps. We know where most businesses struggle, and we know how to make progress visible – fast.

👉 Get clarity on your SC gaps and a clear plan forward. Book a Discovery Session with our experts today.

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FAQs

1. What does System and Communications Protection require for CMMC?

It requires that sensitive information, especially CUI, is protected while stored and in transit. This includes secure communication channels (encryption), controlled network boundaries (firewalls, filtering), segmentation to separate critical systems from general office or guest networks, secure remote access with MFA, and standardized, managed configurations. The ultimate goal is to prevent unauthorized access, tampering, or eavesdropping, ensuring that your systems can be trusted by DoD partners and that your business can continue operating safely even if threats arise.

2. Does email automatically meet encryption requirements?
No. While platforms like Microsoft 365 or Google Workspace encrypt data in transit, this alone is not always sufficient for CUI. Additional protections are often required, such as Message Encryption, sensitivity labels, secure portals, or controlled file-sharing practices. SMBs need to implement these measures deliberately to ensure compliance, prevent accidental data exposure, and demonstrate to auditors that CUI is properly protected.

3. Do I need a fancy firewall?
Not necessarily. What matters is a business-grade firewall that can enforce documented rule sets, log activity for auditing, and support secure remote access methods such as VPNs with MFA. The key is consistent management and monitoring – an unmanaged high-end firewall offers little protection if it’s not properly configured, maintained, and integrated into your overall security controls.

4. Does every device have to be segmented?
Not every device, but anything that stores, processes, or touches CUI – or that shares a network with critical systems – should be isolated from general office equipment, guest Wi-Fi, and IoT devices. Proper segmentation reduces the risk of lateral movement in the event of a compromise and makes your environment more defensible and easier to monitor for unusual activity.

5. How long does it take to implement SC controls?
For most SMBs, focused efforts can achieve baseline compliance within 60–120 days. This timeline covers implementing encryption, configuring firewalls, segmenting networks, and establishing secure remote access. Organizations working with a partner like CyberNEX often accelerate this process, because our team provides a roadmap, templates, and guidance to ensure controls are correctly applied and verifiable for auditors.