
SEC Cyber Rules: Why Your Private Houston Business Matters
February 2, 2026By the Team at Krypto IT | CMMC & Defense Industry Cybersecurity Experts
For the thousands of businesses in the Houston area that support our nation’s defense—from specialized machine shops in Pasadena to engineering firms in the Energy Corridor—a massive shift in the landscape has arrived. It’s called the Cybersecurity Maturity Model Certification (CMMC).
In the past, if you were a contractor for the Department of Defense (DoD), you could often “self-attest” to your security. You promised you were following the rules, and the government took your word for it. In 2026, those days are officially over. The “honor system” has been replaced by a rigorous, third-party certification process. If you don’t have the right CMMC level, you simply cannot win or renew a DoD contract.
At Krypto IT, we are helping Houston’s Defense Industrial Base (DIB) navigate this complex transition. Here is what you need to know to stay eligible for government work.
1. What is CMMC and Why Does It Exist?
The DoD realized that while major defense contractors were well-defended, the smaller subcontractors in the supply chain were being targeted by foreign adversaries to steal sensitive intellectual property. CMMC was designed to standardize cybersecurity across the entire supply chain.
There are two primary types of data the government is trying to protect:
- FCI (Federal Contract Information): Information provided by the government that is not intended for public release.
- CUI (Controlled Unclassified Information): Sensitive information that requires safeguarding, such as technical drawings, blueprints, or project specifications.
2. Understanding the Maturity Levels
CMMC is divided into levels based on the sensitivity of the data you handle. For most Houston SMBs, you will fall into one of two categories:
- Level 1 (Foundational): Requires 15 basic security practices. This is for businesses that only handle FCI. You must perform an annual self-assessment.
- Level 2 (Advanced): Requires 110 security practices (aligned with NIST SP 800-171). This is for businesses handling CUI. Most contractors at this level will require a triennial audit by a Third-Party Assessment Organization (C3PAO).
3. The SPRS Score: Your Financial Reputation
Even before your official CMMC audit, the government tracks your “SPRS” (Supplier Performance Risk System) score. This is a numerical value that represents how many NIST 800-171 controls you have implemented.
A perfect score is 110. If you have a low or negative score, you are essentially telling the DoD that you are a high-risk vendor. At Krypto IT, we’ve seen Houston businesses lose out on lucrative subcontracts simply because their SPRS score wasn’t high enough for the prime contractor to feel comfortable.
4. The Top 3 CMMC Pitfalls for Houston SMBs
- Unsecure File Sharing: Many contractors still send blueprints via standard email or unencrypted Dropbox folders. Under CMMC Level 2, this is a massive violation. You must use FIPS-validated encryption.
- Lack of Log Retention: It’s not enough to have security; you must prove it. CMMC requires detailed audit logs showing who accessed what data and when.
- Physical Security: CMMC isn’t just about computers. It requires that your physical office in Houston—where servers are kept or where sensitive blueprints are printed—is locked and monitored.
5. Why You Can’t “Cram” for CMMC
If your contract expires in three months, and you haven’t started your CMMC journey, you are in trouble. Achieving Level 2 compliance typically takes a business 6 to 12 months. It requires a total overhaul of policies, hardware, and employee habits.
How Krypto IT Navigates Your Path to Certification
At Krypto IT, we act as your “CMMC Guide,” taking the guesswork out of the process:
- Gap Analysis: We perform a “pre-audit” to find exactly where you fall short of the 110 controls.
- Remediation: We implement the technical solutions—like Managed EDR, encrypted email, and log management—to close those gaps.
- Policy Writing: CMMC is 50% technical and 50% documentation. We help you write the System Security Plan (SSP) that auditors demand.
- SPRS Management: We help you calculate and submit an accurate SPRS score to the government.
Conclusion: Compliance is Your Competitive Edge
In the Houston defense market, CMMC is a filter. Many of your competitors will fail to meet these standards and will be forced out of the industry. By achieving certification now, you aren’t just following rules—you are positioning your business as a trusted, high-tier partner for the DoD.
Is your CMMC journey on track? Contact Krypto IT today for a “CMMC Readiness Assessment” and let’s secure your contracts for the future.



