Secure handling of sensitive data is high stakes for government agencies, and ultimately for us as citizens of the U.S. FedRamp was created as an industry standard for cloud security, aligning with strict regulatory requirements to protect federal data. Over the years, as reliance on cloud computing increased, the need for stringent security measures to protect vital information became exceedingly important. There needed to be a standardized process for assessing and authorizing the use of cloud products, which posed compliance risks and potential vulnerabilities to sensitive governmental data. In response to this challenge, the U.S. government established the Federal Risk and Authorization Management Program (FedRAMP) in 2011.
For cloud service providers, FedRAMP authorization and its compliance is of particular importance. The program was created to mitigate threats such as cyber-attacks and unauthorized access, providing a consistent approach for security assessment, authorization, and risk management of cloud services. This standardization helps agencies securely adopt modern technologies while safeguarding critical information and aligning with broader governance, risk, and compliance frameworks used across federal agencies.
What Is FedRAMP?
The U.S. General Services Administration (GSA), the government agency that oversees FedRAMP, defines the program’s goal as providing “a standardized approach to security assessment, authorization and continuous monitoring for cloud products and services.” Although FedRAMP is managed by the General Services Administration (GSA), the Department of Homeland Security (DHS) contributes to setting these security standards and guidelines, particularly those related to risk management and data protection. Overall, DHS ensures that FedRAMP-approved, secure cloud services are robust against potential security breaches, safeguarding federal information from malicious actors.
FedRAMP is designed to protect federal data while empowering governmental agencies to harness the best of modern cloud technologies. However, there’s a potential conflict when cloud service providers (CSPs) prioritize innovation over security, forcing the government to balance technological advancements with the safety of citizens.
FedRAMP compliance plays a pivotal role by enforcing strict security standards across all government agencies and their partners. This initiative aligns closely with the goals of the Federal Information Security Modernization Act (FISMA), ensuring that modernization efforts don’t compromise the integrity and security of federal data.
The GSA’s FedRAMP Marketplace acts as a centralized platform to identify and procure cloud services that meet stringent FedRAMP and FISMA requirements. It supports transparency and lists compliant solutions, facilitating easier adoption of secure technology by government entities—all while emphasizing the protection of federal information.
To achieve its mission, FedRAMP is organized into several teams: the FedRAMP Board, two advisory committees, and the Program Management Office (PMO). The FedRAMP Board handles governance, decision-making, and enforcement, while the PMO helps federal agencies and CSPs gain authorization and maintain a secure list of FedRAMP-authorized cloud services.
Before diving any deeper into FedRAMP compliance requirements, here’s a quick breakdown of the relevant acronyms:
- 3PAO (Third-party assessment organization): A non-governmental entity that provides an independent report on your readiness for FedRAMP authorization.
- ATO (Authorization to Operate): The formal verification of FedRAMP compliance that is usually in a letter from the PMO.
- CSP (Cloud service provider): A business whose primary product includes cloud storage or services.
- FedRAMP (Federal Risk and Authorization Management Program): The government program responsible for maintaining cloud computing security standards across federal agencies.
- FIPS (Federal Information Processing Standard): The framework developed by NIST categorizing data stored by cloud services as low, moderate, or high impact.
- GSA (General Services Administration): The larger federal body that oversees FedRAMP.
- NIST (National Institute of Standards and Technology): The governmental body responsible for building the security and privacy controls (SP 800-53) FedRAMP uses for assessing, monitoring and authorizing cloud systems.
- PMO (Program Management Office): The FedRAMP team tasked with furthering the mission and goals of the FedRAMP program.
- RAR (Readiness Assessment Report): The document provided by a 3PAO detailing how close your organization is to meeting FedRAMP requirements.
- SAR (Security Assessment Report): The report from a 3PAO outlining the risk posture based on the assessment and review of the System Security Plan (SSP).
- SSP (System Security Plan): A blueprint outlining the security controls and implementation by the Cloud Service Provider.
Photographer: Michael | Source: Unsplash
Why Is FedRAMP Compliance Important for Governance, Risk, and Compliance?
The FedRAMP compliance process involves ensuring cloud services meet strict compliance requirements to protect sensitive governmental data. It’s not just bureaucratic red tape; it’s about safeguarding information that affects all citizens. It also reduces compliance risks and ensures agencies can identify and mitigate potential risks before they escalate into serious data breaches. Compliance helps:
- Protect Data: Ensures data, including federal data, is securely handled across cloud services.
- Enable Innovation: By meeting these standards, agencies and service providers can use modern, cloud-based solutions to improve efficiency.
- Build Trust: Establishes transparent security practices that facilitate trustworthy partnerships between government agencies and cloud providers.
For business owners and compliance officers, achieving FedRAMP authorization may seem complex, but it is mission-critical for securing government contracts and enhancing overall data security. By adopting automated workflows instead of manual processes, agencies can improve efficiency, reduce errors, and ensure compliance aligns with long-term business goals. Many agencies also leverage GRC tools to centralize reporting and strengthen oversight across cloud environments.
When Is FedRAMP Authorization Required?
Depending on your business model, FedRAMP compliance could be integral. You’ll need to secure FedRAMP authorization if you provide or maintain a cloud service that you’re hoping to sell to government agencies. Sensitive data is subject to intense security standards.
If you’re a cloud service provider looking to do business with any federal entity, you must get FedRAMP authorization before you start. Without it, CSPs risk falling short of government regulation standards and failing crucial external audits. FedRAMP also provides a framework for third-party risk management, ensuring outside vendors meet the same level of security scrutiny as federal agencies.This applies even if a government agency initiated the partnership because agencies cannot provide authorization.
However, you won’t have to worry about FedRAMP requirements if you’re a cloud service provider working with private companies or individuals. But consider the potential government contracts you could be passing on by skipping FedRAMP authorization.
What Is Required for FedRAMP Authorization?
Achieving and maintaining FedRAMP authorization involves three key steps: thorough risk assessments, strong audit management practices, and continuous monitoring. Many cloud providers rely on GRC platforms and specialized GRC tools to streamline reporting, reduce manual efforts, and stay compliant as part of a broader governance, risk, and compliance strategy.
It’s important to understand the fundamentals of FedRAMP compliance and its role in broader regulatory compliance and familiarize yourself with the necessary tools. The official FedRAMP site offers valuable documents and templates. These foundational steps are applicable to most cloud services seeking FedRAMP authorization.
If you already have a federal agency prepared to assist you, or if you need to prepare independently, you must submit various documents such as a Security Assessment Report (SAR) and a System Security Plan (SSP). We will delve into the distinctions between these authorization routes.
How to Get FedRAMP Authorization in 2025
Before 2024, there were two paths to FedRAMP authorization: through a specific government agency or by seeking permission from the Joint Authorization Board (JAB). Since the JAB was shuttered last year, the JAB process is no longer an option. Cloud service providers now have only one path: agency authorization.
From JAB to FedRAMP Board
In their official announcement, the FedRAMP team clarified the new structure of the organization. Here’s the current makeup:
- FedRAMP Board: This new incarnation reviews and approves new policies.
- Federal Secure Cloud Advisory Committee: A group of both government and private-sector experts advising on potential improvements.
- FedRAMP Technical Advisory Group: The Secure Cloud Advisory Committee’s counterpart also serves to provide recommendations, but this group specializes in
solving technological issues.
The PMO established two Community Working Groups focused on streamlining and modernizing the FedRAMP authorization process. Their goal is to make authorization faster and more efficient by incorporating automation, applying commercial best practices, and enhancing continuous monitoring. Since March 2025, responsibility for monitoring and authorizing Cloud Service Offerings (CSOs) has been fully transferred to the relevant agencies, with the working groups helping to ensure the transition remains consistent and effective.
Agency Authorization
In the agency path, your initial step is finding a willing federal agency to work with you. Together, you’ll align business processes with federal security requirements. Obtain a Readiness Assessment Report (RAR) from a 3PAO to identify these gaps, though this step isn’t mandatory.
You can bypass the readiness assessment but this requires a full security assessment from a 3PAO, after which a Security Assessment Report (SAR) will outline remaining tasks to align fully with FedRAMP regulations. Resolve the noted issues, submit materials, and if successful, you’ll receive an Authorization to Operate (ATO) from the PMO.
Maintaining authorization requires real-time monitoring of systems to detect vulnerabilities and ongoing risk mitigation strategies. Equally important, user adoption ensures new security measures are effectively integrated into day-to-day operations.
FedRAMP Impact Levels
When deciding which path to FedRAMP authorization to pursue, determine the impact level of data you plan to house. An impact assessment is also a good starting point for planning to meet FedRAMP authorization requirements.
The importance of your data, as defined by its impact level, determines how stringent your security needs to be before working with federal agencies.
How To Determine Your Impact Level
To classify if your data is low, moderate or high impact, familiarize yourself with the Federal Information Processing Standard (FIPS) 199 by the National Institute of Standards and Technology (NIST). This document details risk levels based on potential breaches. It balances security with the duty to maintain the confidentiality, integrity, and availability of information in the cloud.
Here is a simplified version of the impact levels laid out in FIPS 199, but be sure to reference the full document if you need any clarification.
Low Impact
Your cloud service could be considered low-impact if losing of confidentiality, integrity, or availability of your data causes only small adverse effects on an agency’s operations, assets or individuals.
For example, the Public Health Foundation’s TRAIN Learning Network has been authorized as low-impact since 2022. The service only holds data regarding additional training for government employees, so a security compromise would have minimal adverse effects.
If you can prove your service is low-impact, you’ll face less strict security rules to meet FedRAMP qualifications.
Moderate Impact
Most cloud service providers seeking FedRAMP authorization fall into the moderate impact category. This means any breach could cause serious adverse effects on operations or assets without physical damage or death.
(Onspring GovCloud is classified as moderate impact, covering cybersecurity and risk information.)
High Impact
High-impact cloud services safeguard data that could have downright catastrophic effects if it were ever publicly disclosed, modified or deleted. You’re handling high-impact data if you work with emergency services, financial or health systems, or law enforcement.
AWS GovCloud for U.S. businesses and agencies is a high-impact service. It handles data for the U.S. Departments of Treasury and Agriculture, needing robust cybersecurity.
If your cloud service falls into the high-impact category, you’ll have to meet the most stringent requirements for FedRAMP authorization.
Start Working Toward FedRAMP Authorization with Automated Workflows
No matter the data you handle, gaining FedRAMP authorization is a vital step for accessing new government buyers for your cloud services. An automated compliance platform—ideally supported by modern GRC software and tools —can help manage and maintain your compliance with real-time monitoring. Schedule a meeting to discuss how Onspring can help.
