Most contractors think about CMMC as a compliance problem. What they don't fully appreciate is that it's also a legal liability problem, and that liability sits on specific individuals within their organization, not just the company in the abstract.
The mechanism is the False Claims Act, and it has teeth.
What the False Claims Act Actually Does
The False Claims Act is a federal statute that imposes liability on individuals and companies who defraud the federal government. It dates to the Civil War, but its application to cybersecurity compliance is increasingly aggressive.
When a contractor self-attests CMMC Level 1 compliance or submits a SPRS score representing their security posture, they are making a representation to the federal government. If that representation is false, if the company does not actually meet the requirements it claims to meet. That's a false claim. The Department of Justice can and does pursue these cases.
In 2021, the DOJ launched the Civil Cyber-Fraud Initiative specifically to pursue contractors who misrepresent their cybersecurity practices when contracting with the federal government. Cases have already been brought. Settlements have already been paid. This is not theoretical.
Who Signs the Attestation
This is where it gets personal. CMMC Level 1 self-attestation requires a senior company official to affirm compliance annually. That's typically a CEO, COO, or equivalent. That individual is personally on record with the federal government.
If the company later experiences a breach, or if an audit reveals that the attested controls weren't actually in place, that senior official's signature is exhibit A. The liability doesn't stay at the company level. It follows the person who signed.
The "We Didn't Know" Defense Doesn't Hold
Contractors sometimes assume that if they made a good-faith effort, they're protected. The False Claims Act doesn't require intent to defraud. It covers reckless disregard and deliberate ignorance. If a senior official signs an attestation without actually verifying that the controls are in place, that can be sufficient for liability.
The practical implication: signing an attestation is not a paperwork exercise. It's a legal representation. The person signing it needs to actually know what they're attesting to.
What This Means Practically
Get the gap assessment before you attest. Know what you actually have in place. If there are gaps, document them honestly and build a plan to close them. The risk of attesting to something you can't verify far outweighs the cost of finding out where you actually stand.
A gap assessment isn't just about winning contracts. It's about ensuring the people running your company aren't personally exposed every time they renew a federal contract.