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Stuart Gentle Publisher at Onrec

Does CMMC Apply to Staffing Agencies?

Staffing agencies play a pivotal role in supporting federal contractors, but the landscape of compliance is rapidly tightening

The Department of Defense scrutinizes every other partner closely in view of increased risks of cybersecurity compromises and supply-chain attacks. The Cybersecurity Maturity Model Certification is under screening to determine to what degree it applies to staffing agencies. The answer can differ depending on the kind of federal information accessed by an agency in the recruiting, onboarding, or contracting process. Key points discussed below delineate when staffing agencies come into scope so that they can gear up for 2025.

CMMC Applies When a Staffing Agency Receives Flow-Down Requirements

CMMC does not automatically apply to staffing agencies. They become in scope only when prime contractors or higher-tier subcontractors flow down cybersecurity requirements through contracts. This often happens when an agency is sourcing cleared candidates, accessing controlled resume databases, or supporting contract roles tied to DoD projects.

The flow-down clauses matter because primes are legally responsible for ensuring every subcontractor meets applicable cybersecurity levels. If an agency will access or store federal contract information (FCI), even briefly, it typically must meet at least CMMC Level 1 controls. For agencies dealing with applicants in sensitive defense programs, mainly when controlled unclassified information (CUI) is involved, Level 2 requirements may be triggered.

Handling FCI vs. CUI Determines Which CMMC Level Applies

Knowing what type of information a staffing firm touches is central to determining its CMMC obligations. FCI is rather low-sensitivity data and contains information needed to execute a federal contract, but not meant for public use. Agencies that handle only FCI generally fall under CMMC Level 1, the least cumbersome level with 17 core cybersecurity practices.

CUI is considered much more sensitive and may encompass details regarding candidate clearance, project descriptions, technical competencies, or information used in the vetting of positions. Agencies with access to CUI would be expected to meet Level 2, which conforms to NIST 800-171, and entails implementation of over 100 technical and procedural controls.

Level 1 vs. Level 2 Obligations and the Role of the CMMC Final Rule

Level 1 addresses the basic level of cybersecurity hygiene. This includes multifactor authentication, secure passwords, requests for antivirus updates, and reasonable protection of devices. Small efforts on the part of the staffing agencies would suffice with a basic in-house IT department or outsourced IT management. The Level 2 obligations are far more onerous and may demand performance-related upgrades, formally documented policies, internal audits, and more stringent access control over materials.

CMMC Final Rule elaborates on the precise expectations and pathway for assessment through the two levels. It shows when self-assessment is allowed, which would be primarily on the Level 1 program and some Level 2 programs, and when third-party certification is required. Staffing agencies should preview this guidance up front, as it would assist them in averting compliance hurdles at the last minute once new solicitations from the DoD go out.

Compliance Implications of VMS Platforms and Resume Data Practices

Staffing agencies' compliance gaps include how recruiter activity interacts with Vendor Management Systems (VMS). This is relevant because most VMS platforms store, transmit, or process candidate resumes and job information that may contain FCI or CUI. By uploading sensitive applicant data into a system that does not meet CMMC-aligned controls, a staffing agency might unwittingly create a supply-chain vulnerability.

Recruiters also routinely download resumes, email candidate profiles, or transfer information between different tools. Each interaction stands to create the risk of exposure. A clear picture would need to exist for the agencies in 2025, mapping the journey of all candidate data. This is particularly in terms of where it floats, in what manner it is protected, and whether the resume repositories that it utilizes satisfy DoD cybersecurity requirements.

Due Diligence Questions Hiring Teams Should Ask Their Staffing Suppliers

There is a lot of scrutiny, pressure, and due diligence evaluations levied by prime contractors and large government integrators on their staffing partners. This means agencies should expect to field detailed cybersecurity questionnaires early in the sourcing process. Expect queries on items like MFA use, endpoint protection, secure data storage, encryption practices, and employee training.

Another question hiring teams might ask is if the agency has conducted a NIST-aligned gap assessment or has a System Security Plan (SSP). Documentation should be ready for agencies targeting further defense opportunities, even if they do not yet require third-party certification.

Practical Steps Staffing Agencies Should Consider for CMMC Compliance by 2025

The primary step toward readiness entails understanding the nature of various types of information the agency handles and how that information flows. A data inventory at the agency covering resumes, background check data, onboarding paperwork, and communications will illuminate the agency regarding its appropriate CMMC level. Upon completion of scoping, the agencies can begin implementing appropriate controls, basic cyber hygiene for Level 1, or some for Level 2, as specified by NIST.

Agencies should cement their cybersecurity program through documentation of policies, incident-response procedures, and employee-training plans. Many staffing firms choose to partner with managed security providers to speed up compliance and lessen the burden on internal resources.

Endnote

Increasingly, CMMC requirements impact staffing agencies in very much the same sensitive supply chain that directly involves prime contractors and subcontractors. By understanding which information is being handled and mapping workflows to the appropriate CMMC level, agencies reduce compliance risks and remain competitive. Early preparedness will enable DoD expectations to evolve, thereby allowing staffing partners to support federal programs through 2025 and beyond confidently.