All level 1 can be POAMd. You can waive FIPS as part of POAM if you have 3 out of five points. You get 180 days to close POAM. If POAM open when contract starts after 180 days a KO can penalize.
The waiver is for companies that do something so unique no other company is doing it or thinking about CMMC. The awardee will have 180n days to start CMMC
(FYI I can't get a server in 180n days)