The U.S. Army is stepping up to help small businesses in the defense sector that struggle to meet evolving cybersecurity requirements. In 2025, the Army will roll out a pilot program called the Next-Generation Commercial Operations in Defended Enclaves (NCODE). This initiative is designed to give small firms the tools and secure environments they need to handle sensitive data and comply with stringent cybersecurity standards. Here's everything you need to know.
What is NCODE?
NCODE is a pilot project aimed at creating secure, cloud-based workspaces for small businesses that are part of the Defense Industrial Base (DIB). These businesses, which often lack the resources to meet the cybersecurity demands of working with the Department of Defense (DoD), will have access to a protected "enclave" where they can collaborate, work, and store sensitive information without the financial burden of setting up advanced cybersecurity infrastructure.
The program is aligned with the Cybersecurity Maturity Model Certification (CMMC), which sets the baseline for cybersecurity practices within the defense supply chain. NCODE provides a secure way for small businesses to meet these requirements without needing to invest heavily in their own systems.
Who Does NCODE Impact?
NCODE is tailored specifically for small businesses that are working with the DoD but may not have the financial or technical resources to meet the cybersecurity standards required by the CMMC. Many of these businesses are at risk of cyberattacks, especially from high-level threats like nation-states. In fact, about half of the 12,000 small businesses working with the Army face medium- to high-risk cybersecurity threats
This program helps level the playing field by offering a managed, secure workspace where these businesses can operate safely without needing to build their own defenses. It essentially offers “cybersecurity as a service,” giving these smaller players access to top-tier cybersecurity protection.
Key Dates to Remember
The NCODE pilot is set to begin in fiscal year 2025, and the Army has already earmarked $26 million in funding for the first two years of the project. By 2027, the Army hopes to have the program fully operational and fine-tuned based on the initial feedback and performance of the pilot. The details on how small businesses can apply for NCODE are expected to be released in the coming months, giving these firms time to prepare.
How Is the Program Funded?
NCODE is backed by $26 million in federal funding for fiscal years 2025 and 2026. This budget will cover the infrastructure, cybersecurity services, and secure environments necessary to support participating small businesses
The pilot project will help determine if further investment is needed, as the Army is keen on expanding the program based on its early success.
Why NCODE Matters
As cybersecurity threats become more sophisticated, small businesses often find themselves vulnerable to attacks, which not only puts their operations at risk but also compromises national security. Programs like NCODE are vital for protecting sensitive data and ensuring that the businesses that drive defense innovation are secure.
With NCODE, small businesses can focus on what they do best—innovation—without worrying about the heavy burden of managing their own cybersecurity infrastructure. As the program develops, it will offer lessons not just for the Army, but for the entire DoD, as it seeks to safeguard the defense supply chain from evolving cyber threats.
For businesses looking to stay competitive in the defense sector, NCODE is a critical opportunity to ensure compliance, protect sensitive information, and stay ahead of increasingly aggressive cyber threats.
Get help on this topic and more with Cyber Pop-up (info@cyberpopup.com).
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