FedRAMP Authorization

FedRAMP Authorization is the Federal Risk and Authorization Management Program, a government-wide security assessment, authorization, and continuous monitoring framework that cloud service providers (CSPs) must satisfy before their cloud products can be procured by federal agencies.

What is FedRAMP Authorization?

Established by OMB in 2011 and codified in the FedRAMP Authorization Act (2022), FedRAMP creates a "do once, use many" model for cloud security assessment: a CSP undergoes a rigorous security review once, and the resulting authorization can be reused by any federal agency rather than each agency conducting duplicative assessments.

FedRAMP Impact Levels, Low, Moderate, and High, correspond to the sensitivity of government data the cloud system will process or store. Low covers publicly available data; Moderate covers the vast majority of unclassified government data (health records, financial data, law enforcement); High covers the most sensitive unclassified data. Each level requires increasingly stringent security controls aligned to NIST Special Publication 800-53.

The authorization process requires the CSP to hire a Third Party Assessment Organization (3PAO) accredited by FedRAMP to conduct an independent assessment of the system's security controls. The 3PAO produces a Security Assessment Report (SAR). The CSP packages the System Security Plan (SSP), SAR, and supporting documentation into a security authorization package, which is reviewed by either a federal agency (Agency Authorization) or the FedRAMP Program Management Office's Joint Authorization Board (JAB Authorization, now replaced by the FedRAMP Authorization Act process).

Once authorized, the CSP is listed in the FedRAMP Marketplace (marketplace.fedramp.gov), where agencies can browse authorized cloud products. Agencies can also initiate their own Agency Authorization process for CSPs not yet in the FedRAMP Marketplace, though this is less efficient than using a pre-existing authorization.

Read more in our CMMC and compliance guide for defense contractors.

Why FedRAMP Authorization matters for government contractors

For SaaS, PaaS, and IaaS vendors, FedRAMP authorization is the gateway to the federal cloud market. Without it, federal agencies cannot procure cloud services. The authorization process is expensive (typically $1M to $3M+ for Moderate authorization), but the resulting marketplace listing enables sales to any federal agency, a significant return on investment for products with broad federal applicability.

Example

A SaaS project management platform pursues FedRAMP Moderate authorization. It engages an accredited 3PAO, implements 325+ NIST 800-53 Moderate controls, completes an 18-month assessment process, and achieves authorization. The platform is listed in the FedRAMP Marketplace. Within 12 months of listing, five federal agencies procure the platform using their own procurement vehicles, citing the FedRAMP authorization as the security basis, without conducting any additional security assessments.

Frequently Asked Questions

How long does FedRAMP authorization take?

Agency Authorization typically takes 6 to 18 months from initiation to authorization, depending on the complexity of the system and the agency's review capacity. The process can be accelerated by starting with a well-documented SSP and resolving security gaps before engaging the 3PAO.

Can a company get FedRAMP authorization without a federal agency sponsor?

Under the FedRAMP Authorization Act, the FedRAMP PMO manages a prioritization process for CSPs seeking authorization without an agency sponsor. Previously, JAB Authorizations served this function. The PMO's authorization pathway is highly competitive and typically takes longer than the Agency Authorization path.

Is FedRAMP authorization the same as an ATO?

FedRAMP authorization is a federal-level authorization that enables agency-level ATOs. When an agency wants to use a FedRAMP-authorized cloud product, it issues its own Authority to Operate leveraging the FedRAMP package, reducing the agency's review work significantly compared to a non-FedRAMP cloud product.

Does FedRAMP apply to on-premises software?

FedRAMP applies specifically to cloud services, software, platforms, and infrastructure delivered via the internet from shared or multi-tenant infrastructure. Traditional on-premises software installations are not subject to FedRAMP, though they must still meet applicable agency security requirements and obtain an ATO.