Microsoft Intune Compliance Policy Checklist for Defense Contractors Handling CUI

Why Microsoft Intune Compliance Matters for Defense Contractors

Every device that touches Controlled Unclassified Information represents a potential point of failure in your CMMC and DFARS compliance posture. Microsoft Intune is the primary mobile device management and mobile application management platform used by defense contractors operating in Microsoft 365 GCC High environments, and its compliance policy configuration is not optional — it is foundational.

When auditors from the Defense Contract Audit Agency or a C3PAO assessor review your environment, they will look at whether your endpoints are enrolled, monitored, and enforced against a documented baseline. A misconfigured or absent Intune compliance policy is one of the fastest ways to fail a CMMC audit. This checklist gives compliance managers and IT leads a practical, control-by-control reference for building Intune compliance policies that satisfy NIST SP 800-171, CMMC Level 2, and DFARS 252.204-7012 requirements.

Understanding the Regulatory Context

Before configuring a single policy, your team needs to understand what the regulations actually require at the endpoint level. NIST SP 800-171 Revision 3 maps directly to device-level controls in several domains, including Access Control (3.1), Configuration Management (3.4), Identification and Authentication (3.5), and System and Communications Protection (3.13). Each of these domains has Intune-enforceable controls.

CMMC Level 2 requires that these same 110 controls be fully implemented and documented. For defense contractors handling CUI, the question is not whether to configure Intune compliance policies — it is whether your current configuration closes every gap your assessor will probe. Our CMMC, CUI & DFARS Compliance practice works with contractors at every stage of this process, and endpoint policy configuration is almost always an early remediation priority.

Microsoft Intune Compliance Policy Checklist

The following checklist is organized by control domain. Each item references the corresponding NIST SP 800-171 control family and identifies whether the setting is enforced through device compliance policy, configuration profile, or both.

1. Device Health and Enrollment Requirements

• Require device enrollment in Intune: All endpoints accessing CUI must be enrolled and managed. Unenrolled devices must be blocked from accessing corporate resources via Conditional Access. (Relevant to 3.1.1, 3.1.2)
• Require Azure AD Hybrid Join or Azure AD Join: Devices must be domain-joined or cloud-joined to enforce organizational policy consistently.
• Enable Windows Health Attestation: Configure policies to require BitLocker, Secure Boot, and Code Integrity reporting through the Health Attestation service.
• Block jailbroken or rooted mobile devices: Any mobile device accessing CUI must be confirmed non-rooted. Apply this to iOS and Android compliance policies.

2. Operating System and Software Configuration

• Require minimum OS versions: Set minimum and maximum OS version thresholds. Devices running unsupported or out-of-date operating systems must be marked non-compliant.
• Enforce automatic OS updates: Configure Windows Update for Business policies via Intune to enforce update rings aligned to your patch management policy. (Relevant to 3.14.1, 3.14.4)
• Require antivirus and antimalware: Mark devices non-compliant if Microsoft Defender or an approved equivalent is not active, up to date, and reporting clean status. (Relevant to 3.14.2)
• Block non-approved applications: Use Intune app protection policies and compliance policies together to restrict unauthorized software that could introduce risk to CUI systems.

3. Encryption Requirements

• Require BitLocker encryption on Windows devices: All Windows endpoints handling CUI must have BitLocker enabled and recovery keys escrowed in Azure AD. This directly satisfies NIST SP 800-171 control 3.13.16 (protection of CUI at rest).
• Require storage encryption on mobile devices: iOS and Android devices must have storage encryption enabled as a compliance requirement before accessing any CUI-adjacent resources.
• Verify encryption key management: Ensure your Intune configuration reports encryption status and that key escrow records are retained in accordance with your System Security Plan (SSP).

4. Password and Authentication Policies

• Require a minimum password length of 12 characters: Aligns with NIST SP 800-171 control 3.5.7 and CMMC Level 2 practice IA.L2-3.5.7.
• Require password complexity: Enforce uppercase, lowercase, numeric, and special character requirements through device compliance policy.
• Set maximum password age: Passwords must expire at a defined interval consistent with your password policy. 90 days is a commonly accepted baseline.
• Block previously used passwords: Configure password history enforcement (minimum 5 to 10 previous passwords) to prevent reuse.
• Require screen lock timeout: Devices must automatically lock after no more than 15 minutes of inactivity. (Relevant to 3.1.10)
• Require multi-factor authentication: While MFA is enforced through Conditional Access rather than Intune compliance policy directly, the Intune enrollment process must require compliant device status as a Conditional Access grant control. MFA and compliant device together satisfy 3.5.3.

5. Firewall and Endpoint Protection

• Require Windows Defender Firewall to be enabled: Mark devices non-compliant if the host-based firewall is disabled on any network profile (domain, private, or public). (Relevant to 3.13.1, 3.13.6)
• Require real-time protection: Defender real-time protection must be active. Configure compliance policy to flag devices where real-time scanning has been disabled.
• Require Microsoft Defender for Endpoint integration: For contractors with Microsoft 365 E5 or equivalent licensing, integrate Defender for Endpoint with Intune to surface device risk scores as a compliance signal. Devices above a defined risk threshold are automatically marked non-compliant.

6. Conditional Access Integration

Intune compliance policies are only effective when paired with Conditional Access policies that enforce them. A compliant device designation without a corresponding Conditional Access rule blocking non-compliant devices provides no actual protection.

• Block non-compliant devices from accessing CUI: Create Conditional Access policies that require device compliance as a grant condition for all cloud applications processing CUI, including SharePoint, Exchange Online, and Teams.
• Scope policies to CUI-handling users and groups: Apply the most restrictive Conditional Access policies to users whose roles require access to CUI. Broad application is appropriate, but targeted scoping prevents unintended business disruption during rollout.
• Configure compliance grace periods carefully: Intune allows a grace period before a non-compliant device is blocked. For CUI environments, this period should be 24 hours or less. Extended grace periods represent a compliance gap.

7. Audit Logging and Monitoring

• Enable Intune audit logs: All compliance state changes, policy assignments, and device actions must be logged. Retain logs consistent with your incident response and record retention policy. (Relevant to 3.3.1, 3.3.2)
• Monitor compliance dashboard regularly: Assign responsibility for reviewing the Intune compliance dashboard on a defined schedule. Non-compliant devices should trigger a defined response workflow, not just a dashboard notification.
• Integrate with Microsoft Sentinel or equivalent SIEM: Export Intune compliance and audit logs to your SIEM for correlation with other security event data. This satisfies audit log protection and review requirements under NIST SP 800-171.

Common Intune Compliance Gaps We See at Defense Contractors

In our work supporting federal and defense contractors, we consistently encounter the same configuration failures during readiness assessments. The most common include compliance policies that exist in Intune but have no corresponding Conditional Access enforcement, BitLocker requirements that are configured but not verified as actually encrypting target drives, and mobile device policies that exclude executive devices by exception rather than by documented risk acceptance.

Understanding endpoint security fundamentals is the starting point, but a policy that exists only on paper — or only in the Intune console without enforcement — will not satisfy an assessor. Every item on this checklist should be verified through both the Intune compliance report and a sample of device compliance state records.

It is also worth noting that Intune compliance policies are one component of a broader System Security Plan and POA&M program. Any gaps identified during your Intune review should be documented in your POA&M with realistic remediation timelines.

Maintaining Compliance Over Time

Configuring Intune compliance policies is not a one-time task. Policy drift, new device enrollments, personnel changes, and Microsoft platform updates all create opportunities for non-compliant states to emerge. Defense contractors should conduct a quarterly review of Intune compliance policy assignments, device compliance reports, and Conditional Access policy effectiveness.

If your organization does not have the internal resources to maintain this ongoing oversight, a Regulatory vCISO engagement can provide the dedicated expertise to own this function without requiring a full-time hire.

Take the Next Step Toward Compliant Endpoint Management

A properly configured Microsoft Intune environment is one of the most auditable, defensible demonstrations of your endpoint security posture. If your team is unsure whether your current Intune compliance policies satisfy CMMC Level 2, DFARS 252.204-7012, or NIST SP 800-171 requirements, Cleared Systems can help. We conduct hands-on compliance gap assessments, configure and document Intune policies to assessor-ready standards, and support your full compliance program from SSP development through C3PAO audit preparation. Request a quote today or review our IT Compliance Services to learn how we can support your organization's endpoint compliance program.