The Department of Defense Will Allow Cybersecurity Costs as an Allowable Cost

Consistent with the collaborative approach announced by DoD, DoD has stated that costs incurred in connection with cybersecurity implementation and compliance, including those incurred in connection with the CMMC program, are reimbursable for defense contractors under cost-type contracts.  This is very welcome news and guidance for the defense base as it allows contractors to recover such costs, which can be substantial, as part of contract performance.